Connect to the Future with Protection Technology

2022
Annual Report

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
E-mail: info@nittoc.co.jp

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

NITTOC CONSTRUCTION CO., LTD.

Connect to the Future withProtection Technology
MISSIONCONTENTWith efficient

02 Corporate History

management and04 Advantage of NITTOC

comprehensive
technical capabilities
in foundation work,
we are the company

06 Financial Highlights
08 Message from the President
10 Summary of the Medium-Term Management Plan
12 Improving Work Efficiency Through the Use of
ICT and Mechanizationthat provides safe

16 Disaster Prevention and Environmental Conservationand secure society

20 Urban Regenerationand contributes
to countries.

Yoshino Area 2 (Zones 1 to 3)
Disaster-related Emergency Forest Conservation Work
(Atsuma Town, Yufutsu District, Hokkaido)

24 Maintenance and Renovation
28 Domestic Construction Projects
30 Our Award-Winning History
31 Fiscal 2021 Construction Technology Exhibition Achievement
32 Overseas Deployment

Forest Maintenance and Improvement for Restoration:Works No. 2702 and No. 2801; Yunokami Area
(Futaba District, Fukushima Prefecture)2020 City Level Civil Engineering Facility Disaster Recovery
Project (National) Highway 152 Disaster Recovery Project (Sejiri)(Hamamatsu City, Shizuoka Prefecture)

34 International Business
36 SDGs Initiativess
38 Environmental Responsibility
39 Landscape Conservation Technology for Cultural Properties
40 Contribution to Society
42 Corporate Governance
44 Management Members
48 Consolidated Financial Statements
85 Corporate Overview and Major Construction Methods

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

Kesennuma Area Reconstruction Project(Kesennuma City, Miyagi Prefecture)2020 Disaster Recovery-related Emergency Forest
Conservation Project Design No. 1(Kyoto City, Kyoto Prefecture)

Otsuchi Town, Ando Area Reconstruction Work
(Otsuchi Town, Kamihei District, Iwate Prefecture)
National Route No. 274 Shimizu-Cho Improvement Work
(between Hidaka-cho, Saru District and Shimizu-cho,Kamikawa District, Hokkaido)

Horonai Area T Restoration and Forest Conservation Work and1 Other Work
(Atsuma Town, Yufutsu District, Hokkaido)

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Corporate History
In 1938, the construction of Uryu Dai-ichi Dam, a huge water
reservoir with pondage of 240 million cubic meters, commenced at
the foot of Mt. Taisetsu in Hokkaido. The dam was a gravity-type
concrete structure of 45.5 m in height. To lead the project to a
successful completion, extraordinary efforts were exercised for the
disposal of the breccia-conglomerate at the site of the foundation.
NITTOC’ s original technologies accumulated to date originatedfrom this dam construction project.
Established in 1947, the Company took the initiative in leading thedam foundation works as the initial work type for its inaugural era
during Japan’ s heyday of constructing dam power stations
associated with the development of power sources. In particular,
NITTOC’ s technology, which boasted the collective strength
deriving from the united efforts of civil engineers and geologists,
was highly appraised from various quarters. Consequently, theCompany undertook most of the foundation works of domestic
large-scale dams including Kansai Electric Power’ s Kurobe 4th Dam(the so-called Kuro-yon dam).
Moreover, the Company proactively addressed various projects
regarding the Shinkansen, expressways, building foundations and so
on with the aim of becoming a comprehensive 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.

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

1983 October

2010

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

1983 December

Listed on the Second Section of the Tokyo Stock Exchange.

1985 April

2010 September

Established NITTOC Real Estate Co., Ltd.

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

1985 June

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

Construction of
Kawamata Dam (2017)

1985 September

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

Ogitsu Work of Joban Expressway,
Japan Highway Public Corp. (Ibaraki Prefecture)2015 September

2000

Listed on the First Section of the Tokyo Stock Exchange.

1985 October

Sold the Akashi-cho Suboffice Building

2015 December

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

1986 March

2001 March

Completed Tsukuba Laboratory.

Liquidated NITTOC Real Estate Co., Ltd.
(consolidated subsidiary).

1990 May

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

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

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

2003 March

2017

1990 June

Registered for examination of ISO9000 approval for
the whole corporation.

Kumamoto Earthquakes Disaster Restoration Work

Completed Akashicho
Suboffice Building.

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. Listed on the Prime Market in 2022

2003 November
Liquidated Japan Public K.K. (consolidated subsidiary).

1980

2004 October
Established Shimane Earth Engineering Co., Ltd.
(currently a consolidated subsidiary).

We celebrated our 70th founding anniversary in December 2017. We
intend to contribute to our society widely as a comprehensive
construction company that features foundation technology.

2008 March
Closed Tsukuba Laboratory.

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

2017
Construction of Kawamata Dam (2017)2018
JR Kure Line, Saizaki Area Eternal Disaster Restoration Work
(Mihara-shi–Higashihiroshima-shi, Hiroshima Prefecture)2019 January
Established Ehime Earth Engineering Co., Ltd.
(consolidated subsidiary).

2021 October
Fukui Earth Engineering Co., Ltd.
(consolidated subsidiary).

2022 April
Tokyo Stock Exchange Listed on the Prime Market

Kumamoto Earthquakes Disaster Restoration Work1953
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.

1957 January
Headquarters relocated to Minato-ku, Tokyo.

1959 December

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

1961 December
Headquarters relocated to
Chiyoda-ku, Tokyo.

1962 December

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

1963 February

1972 October

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

1979 December
Established Midori Industries Co., Ltd.
(currently a consolidated subsidiary)

ANNUAL REPORT 2022

Otsuchi Town, Ando Area
Reconstruction Work
(Otsuchi Town, Kamihei District, Iwate Prefecture)

Kesennuma Area Reconstruction Project(Kesennuma City, Miyagi Prefecture)

Established Japan Public K.K.

1965 March
Headquarters relocated to
Chuo-ku, Tokyo.

1972 May

Trade name changed to NITTOC CONSTRUCTION CO., LTD.

02

Yoshino Area 2 (Zones 1 to 3)
Disaster-related emergency forest conservation work
(Atsuma Town, Yufutsu District, Hokkaido)

2018 Yoshino Area (No.3) Disaster Prevention Work
(Sagamihara City, Kanagawa Prefecture)

ANNUAL REPORT 202203

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Advantage
Advantageof ofSinceSince
the establishment
the establishmentof Nittoc,
of Nittoc,
we have
we havecultivatedcultivated
our unique
our uniqueexpertise
expertisethroughthroughour construction
our construction
experience
experience
for morefor morethan thanhalf century.
half century.
NITTOCNITTOCis a leading
is a leading
company
companyin theinfield
the offield
foundationof foundation
work workin Japan.
in Japan.
Nowadays,
Nowadays,
we have
we havedifferent
different
field offield
techniqueof techniqueto respondto respondto thetoneeds
the needsof society,of society,“Disaster“DisasterPrevention
Prevention
and Environmental
and Environmental
Conservation”,
Conservation”,“Urban“UrbanRegeneration”,
Regeneration”,
and “Maintenanceand “Maintenanceand Renovation”.
and Renovation”.
Our technology
Our technology
contributes
contributes
safetysafety
and secureand secureenvironment
environment
to thetosociety.
the society.

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Types
of Businessof Business
Field
Field
respond
respond3 3Types

to Social
to Social
Needs
Needs

200
200

types
types
of technologyof technology
WeWe
areareholding
holding
andandconstruction
construction
methodmethodUrban
Urban
Regeneration
Regeneration
We mustWerestructure
must restructure
in orderintoorderrebornto reborna city a city
under theunderstrongthe strong
disaster.
disaster.
It is notItan
is noteasyanprojecteasy projectin the cityin thewhichcity has
which hasso many
socompressed
many compressedbuildings.
buildings.
Even under
Even theundercompressthe compress
buildings
buildings
situation,
situation,
NITTOCNITTOC
have developed
have developed
earthquake
earthquake
resistant,resistant,liquefactionliquefaction
prevention
prevention
and existingand existing
pile
pile
removalremoval
methodmethod
to contributeto contributethe society.
the society.

NITTOCNITTOC
specializes
specializes
in slopeinrelated
slope related
techniquetechniquewhich which

DisasterDisasterPrevention
Prevention
andandEnvironmental
Environmental
Conservation
Conservation

accumulates
accumulatesa brillianta brilliant
achievement.
achievement.

Since Japan
Since hasJapan
geographicalhas geographicalconditions
conditions
that makethatitmake it

Today,Today,in this aging
in thissocial
aging infrastructuresocial infrastructure
century,
century,

prone to
prone
being
toaffected
being affectedby natural
by natural
disasters,
disasters,

we developed
we developed
our own
ourdiagnostic
own diagnostic
techniques
techniques
as wellas
aswell as

large scalelargedisasters
scale disasters
have become
have become
more frequent
more frequent
in recentin recentyears. years.

repair method
repair method
for the forexisting
the existingslopes,slopes,

For thisFor
reason,this reason,in orderintoorderbuildtoa build
friendly,a friendly,
trusty andtrustysafe
andsocietysafe society
in Japan,in Japan,

we alsowe
establishedalso establisheda control
a control
systemsystemthat canthat canwe havewedeveloped
have developed
our slopeourprotection
slope protection
methodmethod
does notdoes
usenotconcrete,use concrete,

be coordinates
be coordinatesin maintenancein maintenancework totally.
work totally.

using ausing
methoda methodfor spraying
for spraying
vegetative
vegetative
materialmaterialbase, base,In addition,
In addition,
we havewedeveloped
have developed
specialspecial
materials
materials
for longfor
distancelong distancepumping,
pumping,or greeningor greening
methodmethodby using
bysurplus
using surplus
soil leftsoilin theleftsite,in the site,high strength
high strengthand introduced
and introducedin harshinenvironment,harsh environment,
mountain
mountainarea orarea orbased onbased
the onconsideration
the considerationof the disasterof the disasterprevention
prevention
environment.
environment.

long distancelong distancetunnel fortunnelheadracefor headrace
channel.
channel.

In addition,
In addition,
NITTOCNITTOC
accumulates
accumulatesa brillianta brilliant
achievement
achievement
about Anchor
about Anchor
Method,Method,Maintenance
MaintenanceandandRenovation
Renovationthat is necessarythat is necessary
to slope
todisasterslope disasterprevention.
prevention.

04

ANNUAL REPORT 2022

ANNUAL REPORT 202205

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Contribution to Society

Operating income

Financial Highlights

Corporate GovernanceOperating income∙Ratio to Net Sales

Net sales

Financial Highlights

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property(Millions of yen)

(Millions of yen)

80,0005,000Management Members

Ratio to Net Sales

7.9%

Operating income(%)(Millions of yen)

8.0

6,000

Thousands of
U.S. dollars

Millions of yen

2018

2019

2020

2021

2022

2022

¥62,943¥63,264¥65,516¥67,955¥66,076

539,884

Ordinary income

4,119

4,004

4,880

5,419

4,626

37,799Profit attributable to owners of parent

2,688

2,721

3,258

3,500

3,329

27,20562,943 63,264

66,076

6.5%

5,000

6.3%

5,419

4,903

8.0

7.0%
7.0

5,000

60,000
4,000

(%)

8.0%

6.8% 7.0

4,523
4,100

Ratio to Net Sales

7.4%
5,358

65,516

Corporate Overview and
Major Construction Methods

Ordinary income∙Ratio to Net Sales

7.5%
67,955

Consolidated Financial
Statements

6.5%

6.3%

4,880
4,626

6.0

6.0
4,119

3,970

4,000

4,004

5.0

Net sales

3,000

40,000

4.0

2,668

2,755

3,209

3,752

3,211

26,239Net assets

23,256

24,676

26,55028,80030,610250,108

3,000

4.0

3.0
2,000

Comprehensive income

5.0

3.0
2,000

20,000

2.0
1,000

2.0
1,000

1.0

Total assets

48,142

49,04850,15951,971

51,712422,520

Net cash provided by (used in)operating activities

(301)

3,108

7,357

1,426

4,750

38,816

Net cash provided by (used in)investing activities(867)(1,252)

(217)

(705)

(23)

(193)

Net cash provided by (used in)financing activities(144)(1,624)(1,625)(1,784)(1,785)(14,592)

0

0
2018

2019

2020

2021

Cash and cash equivalents
at end of period

13,114

13,346

18,713

17,722

20,723

169,3212018

Net income∙Ratio to Net Sales
Net income

0

2022

2019

2020

2021

1.0

0

2022

Interest-bearing debt

0
2018

2019

(%)

4,000

7.0

Total net assets(Millions of yen)

58.8%

35,000

Others

2.0%

2.9%

15.7%

3,000

5.0%
2,668

Groundimprovement

52.6%
3,329

4.2%

5.2%

5.0%

2,721

50.0%

30,61028,80048.1%

50

26,5505.0

25,00024,67623,25640

20,000

4.0
2,000

30
15,0003.0

Share by work type(in net sales)
Government
andpublic sector

84.3%

Maintenanceandrenovation

10.1%

Slope
protection

50.5%

2.0
1,000

20

1,100
1,000

10,000
826
552

1.0

Pile foundation

7.1%

Dam Grouting

4.2%

10

5,000
278

0

0
2018

ANNUAL REPORT 2022

30,000

3,000

2,000

(ratios in net salesof completed
construction contracts)

06

6.0

4.3%

23.0%

Public-Private
proportion

(%)

60

55.1%

3,258

Private sector

2022

Equity Ratio(Millions of yen)

4,000

3,500

Civil engineering

2021

Total net assets∙Equity Ratio

Ratio to Net Sales(Millions of yen)

2020

2019

2020

2021

2022

0

0
2018

2019

2020

2021

2022

0

0
2017

2018

2019

2020

2021

ANNUAL REPORT 202207

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Message from the President

Message from the President
NITTOC CONSTRUCTION CO., LTD. (“NITTOC” or the

The Company’s main business is construction work

“Company”) was established over 70 years ago in 1947.

related to the safe and secure society and countries, such

Since starting dam foundation works as its initial job, we

as infrastructure development work, disaster prevention

have been garnering immense praises as a contractor

work, and environmental conservation work. Our mission

specialized in the soil related works such as Disasteralso includes compliance, contribution to society,Prevention and Environmental Conservation,

environmental activities, and improvement of customer,

Maintenance and Renovation, Urban Regeneration.

investor, and employee satisfaction, among many otherthings. Responding to these various demands andIn this business environment, the Group has establishedexpectations of society is, in other words, predicated ona business strategy centered on work style reforms in its

fulfilling our CSR (corporate social responsibility). The

Medium-term Management Plan 2020 (fiscal 2020

mission of a company and its target are not limited to thethrough fiscal 2022), which began in fiscal 2020, and isquality and safety management of construction works

taking up challenges in new fields, including securing

and the customers it serves. It also includes a wideand developing human resources, improving

variety of people such as those who live near the

productivity, developing slope repair technologies, andconstruction site and those who use the infrastructure

strengthening overseas operations as key measures.

we constructed. Furthermore, it also extends to people

Against this backdrop, to realize R&D and businessaround the world and in the future from the perspective

expansion aiming at automation and labor saving in newof the SDGs (Sustainable Development Goals).

technologies and construction, we will strive to secureand develop engineers, including at partner companies,

It is our sincere desire to fulfill our social responsibilities

improve productivity in order to advance work styleas a company engaged in the construction business,

reforms, and streamline operations using information

based on our management philosophy of “a company

and communication technology (ICT).

that provides a safe and secure society and contributes
to countries” with its “efficient management andcomprehensive technical capabilities in foundation work,”
and will further work to contribute to the realization of asustainable society. We appreciate your further guidanceand encouragement.

Yasuo Wada
President & Representative Director

08

ANNUAL REPORT 2022

ANNUAL REPORT 202209

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Summary of the Medium-Term Management Plan

Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to SocietyManagement Philosophy, Management Policy, Business Strategy, and Issues

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Achieve Medium-term Management Plan 2020
managerial goals and targets

Mission:A company that provides a safe and secure society andcontributes to countries

Medium-term Management Plan 2020
Next Challenge Stage II [fiscal 2020 through fiscal 2022]
NITTOC has resolved at the Board of Directors meeting held on May 8, 2020, the Medium-Term Management Plan (fiscal 2020 - fiscal 2022)with fiscal 2020 (ending March 31, 2021) as the first fiscal year.
In the past 12 years, the Company formulated four medium-term management plans and positioned them as follows: Medium-Term
Management Plan [Step I] (fiscal 2008 - fiscal 2010) “Creation of a Newborn NITTOC,” Medium-Term Management Plan [Step II] (fiscal
2011 - fiscal 2013) “Establishment of Stable Management Foundations,” Medium-Term Management Plan [Step III] (fiscal 2014 - fiscal
2016) “Challenge for Growth,” and Medium-Term Management Plan 2017 (fiscal 2017 - fiscal 2019) “Next Challenge.” Specific measures
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 we believe the current robust construction market is expected to continue for the three years starting in fiscal 2020, we consider thisperiod, which signals the contraction of public works and the start of the new era for the full-fledged maintenance and renewal, as a great
opportunity to be a significant turning point for the Japanese construction market from a long-term perspective. The Company positions
the business strategy over these three years as a period to “enhance its technical and sales strengths in the maintenance and renovation
field, with an eye on the long-term changes in the construction market,” and “increase its market share by developing competitivetechnologies, while striving to secure personnel and improve productivity led by the implementation of work style reforms,” and “earning
the trust of customers and expanding business to meet the expectations of the market.” All of the Company’s executives and employees
will work together as one to achieve the following goals.

Value:

Work on important measures

Vision:Management
Strategy

Efficient management and comprehensive
technical capabilities in foundation work

Realize business strategy

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

IssuesSecure and develop human resources

Business Strategy

Key medium-term points

Strive to secure personnel and improve productivity led by the implementation of work style reforms, earn thetrust of customers, and expand business to meet the expectations of the market. At the same time, enhance
technical and sales strengths in the slope repair field, with an eye on the long-term changes in the construction
market, while increasing market share by developing competitive technologies.

It is vital that the Company secures human resources in order to expand business in the favorable
market environment and amidst the increasing demand in disaster prevention and mitigation. The
Company will improve productivity through the improvement of working environments, as well as
increase the number of personnel.

Important Measures
Secure human resources

Improve productivity

Develop slope repair technologies

Handle slope repair work

Expand share

In preparation for the era of full-fledged repair and reinforcement, it is urgent to accelerate thedevelopment of repair technologies in the slope field, which is the strengths of the Company. It isalso essential for the Company to search for more diverse revenue sources by taking on challenges in
new fields besides its core revenue pillars of slope and foundation improvement works.

Mission:A company that provides a safe and secure society and contributes to countries

1. Business Strategy

Value:

Efficient management and comprehensive technical capabilities in foundation work

Vision:Management
Policies

4. Important Measures
Important Measures

2. Challenges in Realizing Our Business Strategy
IssuesInternal
environment

Harsh employment environment
High employee turnover rates
Rising average age of subcontractors
Inversion of ratios between onsite workers and back office employees

External
environment

Ongoing quality and construction problems
Preparation and improvement of maintenance andrenovation technologies
Fixed business fields

Increase number of field workers (including mid-career hires)
Lower employee turnover rates

Improve productivity

Increase amount of foundation improvement (increase project volume)
Improve productivity by mechanization of spraying
Promote construction volume in the first half of the year and normalize construction volume

Develop slope repair
technologies

Create a slope repair market
Develop slope repair and reinforcement technologies, and promote site deployment

Take up challenges in
new fields

Expand business areas (increase volume of overseas business)
Expand range of project types
Meet regional requirements

2. Improve productivity• Increase number of high-productivity orders for foundation
improvement• Mechanize construction • Normalize construction volume

3. Develop slope repair technologies
4. Take up challenges in new fields

Overview

Secure and develop
human resources
1. Secure and develop human resources• Increase employment • Improve work environment and compensation• Control allocation of human resources • Nurture subcontractors(1) Reinforce internal control (compliance and risk management)(2) Management emphasis on safety and a good workplace environment(3) Implement important measures(4) Maintain profitability and improve productivity(5) Cash flow-focused management(6) Secure and develop human resources

To lead disaster prevention and environmental conservation as the expert offoundation work accumulated by our reliable technological ability

The Company will strive to secure personnel and improve productivity led by the implementation of work style reforms, earn the trust ofcustomers, and expand business to meet the expectations of the market. At the same time, the Company will enhance its technical andsales strengths in the maintenance and renovation field, with an eye on the long-term changes in the construction market, while
increasing its market share by developing competitive technologies.

Take up challenges in new fields

Key long-term points

Corporate Culture Reforms

Management
Philosophy

Improve productivity

3. Business Targets and Indicators
1

Sales targets (fiscal 2022)

1) Increase number of foundation improvement projects(net sales of completed construction contracts: 20 billion yen)
2) Increase number of slope repair projects(net sales of completed construction contracts: 10 billion yen)

3

Financial indicators (fiscal 2022)

1) Equity ratio: 52% or more
2) Cash flow: Positive figures

2

Business performance targets

1) Operating income (3-year average):
4.4 billion yen or more
2) Ratio of operating income to net sales (3-year average):
6.0% or more

4

Target of return to shareholders

1) Dividend payout ratio: 40% or more

5. Performance Plans
Consolidated

ANNUAL REPORT 2022

Fiscal 2020

Fiscal 2021

Mid-Term Achivement Mid-Term Achivement

Fiscal 2022

3–year total

Orders received

66.4

67.8

70.5

71.6

72.2

209.1

Net sales

64.4

67.9

69.4

66.0

71.5

205.3

Operating income

4.0

5.3

4.5

4.5

4.8

13.3

Ordinary income

4.0

5.4

4.5

4.6

4.8

13.3

Net income

2.6

3.5

2.9

3.3

3.2

8.8

Equity ratio

51.2%

55.1%

51.8%

58.8%

52.4%

-

4.4

5.7

4.9

5.0

5.3

14.7

EBITDA (operating income + amortization)

10(Unit: Billion yen)

ANNUAL REPORT 2022

11

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Business field

Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Automation and Labor-Saving Technology for Spraying Plants - Shot Saver

Improving Work Efficiency Throughthe Use of ICT and Mechanization

Shot Saver is a technology that automates and saves labor in spraying plants. In the past, the operation of spraying machines in spraying
works often relied on the senses of skilled workers, and it was considered difficult to automate the operation of spraying machines.
This system enables control and management of the entire plant by combining a dedicated program and electronic control of air valves,
and allows start and stop of material production and pumping to be operated from a touch panel.
Development of a control program that enables automatic
operation of the spraying machine- The control program enables continuous and stable spraying regardless ofthe skill level of the operator, ensuring the quality of the sprayed material.
Development of an automatic cement bag opening device- Reduces the heavy labor required for cement bagging

Automatic cement bag opening device

Labor-Saving Technology for Shotcrete Slopes - Slope Saver
Slope Saver is a mortar spraying method that is expected to significantly improve productivity through robot construction using aspraying attachment and backhoe. Compared to conventional manual spraying work, this system significantly shortens the construction
period and saves labor and manpower. In addition, it is possible to measure the thickness of the sprayed mortar in real time using LiDAR.
Spraying attachment

Two-stage mast
Type C-17

Real-time slope measurement

Concrete pump
LiDAR

Backhoe 0.8m3

No need for manual slope work
Because the spraying work is mechanized, there is no need for slope workthat may cause accidents due to falls and tumbles.
Reduction in the construction period by 40% to 70%*
By using a large-capacity concrete pump, the spraying capacity is about
three to five times that of manual labor, resulting in a significant reductionin the construction period.
50% to 80% labor savings*
By centralizing operation using mechanization and ICT, only three to four
workers are needed during spraying. This, combined with the effect ofshortening the construction period, enables a significant reduction in thenumber of workers.
Automatic creation of construction management documents(under development)
The system is currently under development to automaticallygenerate construction management documents based on real-timemeasurement results.

Plant control monitor

Automatic cement bag opening device Rakuttman
Rakuttman is a device that automates opening and feeding of cement bags, whichused to be done manually in the mortar spraying process.
- All operations are automated after the cement is placed on the carrier- The opened cement is automatically fed into the spraying machine by a powder conveyor- Empty cement bags are pushed out by a plate and automatically discharged outside
the machine- Cement bag handling machine saves labor for storing cement*Results may vary greatly depending on site conditions

Cement storage

Automatic opening

Feed into the spraying machine

Carrying out empty bags

Utilization of 3D Model of Slopes

Spraying conditions

Spraying attachment

Example of spray thickness
measurement by LiDAR

3D data of a slope is created from the photos taken by a drone. By manipulating this data with PC software, it is possible to check the site
conditions and the as built without having to climb up the slope, and to create arbitrary cross-sectional lines and development drawingsof the slope.
Drone photography of the slope

Create a 3D model from the photos

Measure the as built slope frame

Investigation of Slope Cracks Using AI
If large cracks can be automatically detected by visualizing the slope with a drone or other means, it will be much easier to check thesafety of the slope. It is now possible to detect cracks using AI from photographs for flat concrete structures such as bridges and walls.
NITTOC is developing a system that can automatically detect cracks even on slopes that are uneven or vegetated.

*Conventional measurement of as built

Create a slope
development
diagram

Example of automatic crack
detection by AI

12

ANNUAL REPORT 2022

ANNUAL REPORT 2022

13

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Business field

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

ICT Ground Improvement Work

Visualization of Ground Improvement Using 3D models
We have built a system to improve the efficiency of construction and as built management by utilizing the construction history of ground
improvement work, and are applying this system to sites.
Grout Conductor, a chemical injection control and monitoring system, automatically controls up to eight sets of flow meters and grout
pumps with a single unit. By reading the flow rate and injection pressure data output from the Grout Conductor into the Chemical
Injection Data Management System, flow rates and pressures can be displayed in 3D. In addition, daily reports and charts can be output
to save labor for daily management work.
Automatic control with the Grout Conductor

An ICT management system compliant with the Ministry of Land, Infrastructure, Transport and Tourism’s guidelines for the managementof completed construction for ground improvement methods using ICT is applied to the site. Construction management such as
positioning of improved piles and report preparation using construction data can be performed centrally, and information can bechecked in real-time even in remote areas by establishing a network.
ICT ground improvement work is carried out using the CDM-EXCEED method, the power blender method, and the GI column method.
Equipped with GNSS antenna

Machine guidance function

Display information necessary for construction

Operators can operate the machine and moveto the correct construction position while
checking the guide on the monitor screen.

Example of screen display

Accumulate and output data
Chart data

Injection control
Monitoring device

Holecoordinates

Receiving slip
data

Monitors accumulated flowrate and injection pressure.
Up to eight sets of flow metersand grout pumps can becontrolled by a single unit.

SummaryreportComposition
table

DB
Each data is converted
into a database andoutput to each form

Flow rate
control
Accumulated
flow meter

Our Award-Winning History
Technology Fair Exhibition
Achievements

Grout pump

The machine operator’s monitor displays
information necessary for installation in
real-time, which can be shared with remotesite managers via the internet.

Injection site
3D display

Up to eight sets can be controlled by one unit

Grout Management System - ISD GroutingThis system is used for dam grouting, and makes it possible to check the grout injection schedule, injection status, construction statusmap, and daily grout management report in real-time from a remote location. On-site status can also be checked via a webcam. In
addition, injection information is displayed and visualized on a 3D model that includes geological information.
Injection control

Detects pressure and automatically controls the injection material flowrate so as not to exceed the upper limit of the set injection pressure.** Pressure control injection method based on experience of dam grouting construction
Maintain constant pressure

Pressure setting value

Injection material flow rate

Form output

Example of output form

e
alu
re v

ssu

Pre

Management window
displayed on a web
browser

Flow control by pressure detection

3D model display

Flow control by pressure detection

Construction information can be displayed realtime in 3D, even with jet grouting andmechanical mixing methods.

14

ANNUAL REPORT 2022

Injection viewConstruction status map

Daily grout management report

ANNUAL REPORT 202215

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Our Business field

Disaster Prevention andEnvironmental Conservation

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

Construction Performance, Method, and Technology

Effectively Using Surplus Soil

Nature Restoration Using Surface Soil of Forests with
Consideration to the Ecosystem (for greening especially aroundnatural parks such as national parks and quasi-national parks)

TSURU-KAME Soil Method

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

• Utilizes onsite surplus soil effectively.
• Excels in long-term durability (comparison with the greening
foundation mainly consisting of bark compost).

Using Surface Soil and
Raw Chip Material

Growth Foundation for Plants Mainly
Consisting of Raw Chip Material

NEKKO Chip Method• Uses primarily fragmented raw chipmaterial.
• Constructs at high speeds using a
specialized machine.
• Enables greening via the natural
intrusion of plants on the foundationthat excels in erosion resistance.

Plant-Leading Spraying Method

Chosen as a “Fiscal 2016 Runner-up Recommended Technology”(by the New Technology Utilization System Review Meeting, Ministry of Land,
Infrastructure, Transport and Tourism)• Uses the chip material, which derives from the secondarily processedfragments of felled trees, as a foundation material for greening workwithout being converted into compost.
• Enables greening via the natural intrusion of plants on the foundationthat excels in erosion resistance.

NNTD No. 0370

Comparison of the Volume Utilized

Construction Technology Review and Certification

Environment-Friendly
Slope Protection Method

OnsiteSurplus Soil
100m3

Geofiber Method

40m3

NEKKO Chip Method

50m3

Surface Soil-Based GrowthFoundation for Plants

TSURU-KAME Soil Method
Plant-Leading Spraying Method• Serves to decrease CO2 emissions as a substitute method for sprayed slope frames.
• Forms forest on slopes by enabling full-space greening.
• Has an abundant record of slope greening (More than 3,500 projects in Japan and
150 overseas)

NNTD No. 0369

Raw Wood
Chip

KAERUDO-Green Method

KAERUDO-Green Method

100m3• Utilizes surface soil of forests
economically.
• Recycles a wide variety of soils suchas excavated soil, dredged soil anddehydrated cake.

40m3
25m3

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

Sand

Fiber

Continuous
fiber-reinforced soil

NNTD No. 0374

During the work (Kiyomizu-dera Temple, Kyoto)

Using Surface Soil Instead of Seeds
Native Recovery Greening Method

Continuous
fiber-reinforced soil work
(slope protection type)

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

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

Planting work(vegetation base material
spraying work)
Status of greenery when using the NEKKO Chip Method

Vegetation Mat that Prevents Soil Erosion
N-Mat
Ground reinforcement orplate-reinforced anchor work

Continuous
fiber-reinforced soil work
(retaining wall shape type)• This mat containing seeds and fertilizer can be applied to ordinary
embankments, as well as to cut slopes, which have appropriate grain size
distribution and good physical and chemical characteristics.
• Natural landscape is early restored because its use allows seed design
primarily with indigenous plants.
• The mat also can be applied without seeds to accelerate the natural
intrusion of plants.
Just after the placement of N-Mats

16

ANNUAL REPORT 2022

ANNUAL REPORT 2022

17

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Our Business field

Slope Frame
and Ground Anchor“Fiscal 2016 Runner-up Recommended Technology”(by the New Technology Utilization System Review Meeting,
Ministry of Land, Infrastructure, Transport and Tourism)

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

Displacement
gauge

Data monitoring anddata storage
Jack operation

Main body of thecontrol unit

Simultaneous tightening of multiple anchors

Jack

Slope frames

Ground anchors + Pressure receiving plates

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

NETIS No. TH-140015-VR

Plastic Pressure Receiving
Plate for Rock Bolts

Aki-Mos

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

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

Greening of Mortar Shotcrete
Surfaces and Bedrock

Sprayedfoundation
Hole for root system
Approximately 20 cm in depth
for the development of aroot system

Creating horizontal parts
Measurement data-acquisition system

Dispersion of surface water

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

Ripraplayer
Anchor Method by
the EinBand Drill

18

ANNUAL REPORT 2022

Soldier Pile Panel
Wall Method(combined use withground anchor)

Splitz Anchor
MethodCutting
blade

Splitz Anchor
MethodSmall Diameter
Pile Method+
Ground Anchor

Concave
portion: 5-7 cm
Convexportion: 13-15 cm
GroundAverage spraying
thickness: 10 cm

DCS Method

Re-Born Pile Method
Soldier Pile Panel
Wall Method• Employs a simple method that mixes “Sander Powder,” which has aneutralizing effect, with the foundation material for greening work.

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

Wireless
communication

Load meter

Rock Bolt Workby SSBSANDER Green Method

Fiber Soil Greening Step Method

Dedicated jigs

Installed anchor

Recovering Greenery on Strongly
Acidic Soil Slopes

NNTD No. 0373

WinBLADE Method

N-Jet Method

Power Blender Method
Embarkment

Expacker-N Method

Ø65–350mm
Small Diameter Pile Method

Building Anchor
Technology

L-Spin Column
MethodRipraplayer

Maximum depth of 13 m

Ø1,200 mm

New Sleeve
Grouting Method

Shaft

Buried tube
Improved soil

Ø1,000–1,500 mm

GI Column
Method

Ø800–
1,600 mm

Ø1,800–2,000 mm

Maximum diameter of
improvement: 2,000 mm

ANNUAL REPORT 2022

19

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Business field

Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

Bit opens.

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Enlarge-diameter drillingwith the opened bit.

NNTD No.0371

Enlarged-Diameter-Type Anchor Firmly
Fixable on Soft Ground

Urban Regeneration

Splitz Anchor Method

Ø80
0m
m

Corporate History

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

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

• 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.

Construction Performance, Method, and Technology

Anchorbody

Conventional Anchor

Splitz Anchor

We must promote restructuring in order to revive a city after a severe disaster. It is not an easy projectin the city densely packed with buildings.
NITTOC has developed earthquake resistant, liquefaction prevention and existing pile removal method that can beworked on densely packed areas, and contributes to society.

In case of a close siteboundary
Site boundary

Site boundary

Bearing
stratum

Bearing
stratum

In case of a deep
bearing stratum

Large-Diameter Drill Machine with
Twin Head Specification

Japan’s Largest-Class
Double-Tube Drill Machine

Hy Glanz Drill

EinBand Drill• Equipped with rotary percussion head with excellent drilling capability androtary head used for foundation improvement, enables efficient drillingand creation of jet grout in a single unit
• Equipped with well logging system using a drilling bore (DSS)• High-precision drilling with large diameter (maximum drilling diameterØ324 mm) and long casing (3.0 m)• Rotary percussion drill that enables deep drilling (130 m)• Achieves high-precision drilling on hard rocks and boulders with large
diameter (maximum drilling diameter Ø318 mm*) and long casing (3.0 m*)(*new models)• Improved safety with wire emergency stop device

Building Anchor Technology
Bearing
stratum

Bearing
stratum

Enlarged-diameter bit• Prevents buildings lifting
and/or falling of buildings

Construction Technology Review
and Certification

NNTD No. 0375

SHS Permanent Ground Anchor Method
STK Permanent Anchor Method
PTC Permanent Ground Anchor Method

Earth Retaining Wall Method that Combines
Soldier Piles with Concrete Panels
Soldier Pile Panel Wall Method
2,000 mm4,860 mmOrdinary drill machine

2,380 mm

EinBand Drill

6,306 mm2,580 mm

New EinBand Drill• Makes widening road width or recovery from a roadside collapse possible
with small cutting volume.
• Provides optional self-supporting type (wall height up to 4 m) and combined
use with shoring (wall height up to 10 m).

NNTD No.0365

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

Cutting blade

Forming Piles with High Bearing
Power at Narrow Spaces

SSB

Small Diameter
Pile Method• The ultra-compact double tube drill machine
enables drilling at narrow spaces.
• Width for construction work (1.5 m) less than halfof a conventional lightweight drill machine• Drilling bores of Ø165 mm in diameter, which was
impossible with lightweight drill machines

20

ANNUAL REPORT 2022

1,000 mm

SSB

2,000 mmOrdinary drill machine• Offers a casting method for pilesof Ø350 mm or less.
• Makes casting possible at narrowsites (e.g., mountainous places,
slopes and indoor places).
• Features a lineup of the anchor
combination type in addition to
the pile type.

High-Penetration High-Strength Grouting Materials

Slag Turbid Ground-Grouting Material

Cement Grouting Material

MX Grout

Extremely Ultrafine Particle Cement• Involves a turbid ground-grouting material of which a major ingredient isblast-furnace slag.
• Features excellent permeability and durability.
• Uniaxial compression strength: 1 MN/m2 or more
• Available in “Instant solidification type” and “Slow solidification type”• Solution-like high level of penetration• Applies to grouting for minor cracks• Available for uses in diverse grouting
methods

Uniaxial compression strength (MN/m2)

Japan’s Smallest-Class
Double-Tube Drill Machine

5.0(seconds) 210

Slow solidification
type (sand gel)

4.0
3.0

150
120
90

2.0

Instant solidification
type (homogel)

1.0
0.0

180

60
30
0

0

10

20

30

40

50 Material age (days)

Ordinary Portland cement(no permeation)
Extremely ultrafine
particle cement B
MX grout
Extremely ultrafine
particle cement A
Utility water
Conceptual image of particle size

MX grout(5 μm)
Ordinary Portland
cement(20 μm)Extremely ultrafine
particle cement(1.5 μm)

Conceptual image ofparticle size

Natural flow penetration time for No. 6 silica sand (15 cm height)

ANNUAL REPORT 2022

21

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Our Business field
High-Pressure Injection Mixing Method
NETIS No. KT-200039-A

Mechanical Mixing Method

NNTD No. 1275

High-Pressure Injection Mixing
Method Using NJ Monitor
N-Jet Method• Grout is sprayed from multiple nozzles using the newly developed NJ
Monitor, increasing pulling pitch and shortening formation time.
• Reduces the amount of hardening agent used and the amount of slime
produced by shortening formation time and enhancing construction efficiency.
• Forms columnar, improved soil of a maximum diameter of Ø3,500 mm(depending on ground conditions).
RotationJet ofhardening
agent

Ultrahigh Pressure Injection Mixing Methodfor Large-Diameter Foundation Improvement
SUPERJET Method• Forms columnar, improved soil of a maximum diameter of Ø5,000 mm(depending on the ground conditions).
• Reduces the maximum slime volume substantially (compared with previous
methods).
• Achieves foundation improvement at high speed and high quality.

NETIS No. KT-170026-A

Mechanical Mixing Method Combinedwith High-Pressure Injection Using an
Enlarged Mixing Blade

L-Spin Column Method

Jet ofhardeningagent

GI Column Method• Single-axis (max. 20 m) slurry mixing method with Ø800–1,600 mm is available (in case of GI-130C).
• Compact machine size that excels in maneuverability enables mixing of slurry at narrow places.
(The weight is approximately 30% compared to large machines for foundation improvement.)• Control unit that enables a real-time display, ensuring high-quality slurry mixing.
• Other certifications• Low-emission construction machinery (3rd standard) designation program• Regulations on designation of low-noise/low-vibration construction machinery

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

NNTD No. 1279

Middle-Depth Layer Mixing Method

Application scope Viscous soil: Standard N 10, Sandy soil: Standard N 20
Improvement depth: Standard Z 10 m

NETIS No. CBK-190001-A

Ø1,600 mm × 2 Axes Large-Diameter Deep-Layer Mixing Method
CDM-EXCEED Method

Grout Conductor• Large-diameter formation ensures considerable cost-cutting and areduction in the construction period.
• Internal-pressure-relief blades are standard equipped for smoothaboveground discharge of underground internal pressure resulting fromslurry discharge and air drilling

Control• Controls up to eight sets of flowmeters and grout pumps.
• 3D display of grouting results by color and size.
• Automatic control of grouting flow rate so as not tooverrun designated pressure limit.

Application scope Viscous soil: Standard N 6 (Maximum N=8)
Sandy soil: Standard N 20 (Maximum N=30)
Improvement depth: Standard Z roughly 25 m

Controls
flow rate
Integrating flowmeter

Grout pump

Grouting site

Up to eight sets

NNTD No. 1318

NNTD No. 0368

Foundation Improvement for Long
Permeation/Grouting Intervals

High Capacity and Speedy Grouting
Method as a Liquefaction Countermeasure

New Sleeve Grouting Method

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

• Ensures a reliable permeation point.
• Offers speedy permeation and grouting for an extensive ground area.
• Applicable to a narrow operating area.

Primary
grouting

1) Boring

Secondarygrouting
Valve interval:
33 cm2) Positioning of an
3) Filling of
4) Injection of
external pipe for grouting
geobags
permanent grout
External pipe
for grouting
Formationof a soil
Geobags
packerGEO Filter-N*Extension work required when depths exceed 25 m.

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

Technology Evaluation Certificate, The Society ofMaterials Science, Japan

Opposite Direction Mixing-Type Deep-Layer
Mixing Method Compatible with Hard Ground
DCS Method• Attains a large columnar diameter of 2,000 mm(the Company’s track record).
• Achieves excellent mixing power.
• Offers applicability for hard ground.

Mixing blade5) Completionof work

Rotational
direction of
external
bladesRotational
direction ofinternal
bladesControl unit
Enlarged-diameter bit

Injection of
permanent
grout

Polygonpipe

Internal-pressurerelief blades

Underground Diameter Expanding Type
Soil-Mixing Improvement Method

Chemical Grouting Method

Approx.
1m

Mechanical Mixing Method Suitable at Narrow Spaces• Trencher-type mixing machine• Makes improvement up to 13 m in depth available.
• Makes homogeneous, improved soil via vertical mixing.

Grouting Control andMonitoring Device

Discharge Image

NNTD No. 1275

Power Blender Method (slurry shooting method)• Injects a hardening agent from the nozzle at the leadingedge of an enlarged-diameter type mixing blade.
• Enables the wrapping construction method or the
diagonal construction method, which has been
problematic for the existing method.
• Improves the properties of soft ground below hardground by penetrating the hard ground.

Control Units and Real-time Displays

NETIS No. KT-190012-A

Building Technology Performance Certification

Ø 1,200 mm* This technology is developed jointly with Taisei Corporation
Discharge of cement milk

CasingNew Sleeve Grouting Method

22

ANNUAL REPORT 2022

Conventional Method(sleeve grouting method)

ANNUAL REPORT 2022

23

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Our Business field

Maintenance and Renovation

Preventive Maintenance of Sprayed Slope Frames

Method and Technology• Takes countermeasures for concrete structures such as sprayed slope frames and bearing plates depending on the degree of deterioration.
• Takes preventive maintenance countermeasures via surface coating to restrict salt or freezing damage.

Frame Doctor Method
Work Flow
Shaving off
deteriorated portions

NITTOC specializes in slope related technique which accumulates a brilliant achievement.
Today, in this aging social infrastructure century,
we developed our own diagnostic techniques as well as repair method for the existing slopes.
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,high strength and introduced in heavy environment,
mountain area or long distance tunnel for headrace channel.

Washing

Grinding andrustproofing of
reinforcing bars
Renovation of thecross-section

Evaluation of Soundness and Countermeasures for Slope Structures
Large numbers of slope structures constructed during the high economic growth period are aging, and from now on, the long-life slope method will be called for.
We propose appropriate countermeasure works depending on the degree of deterioration of the respective slope structures.
Flaking

Displacement of joint

Tilting

Void

Joint opening

Ground Reinforcement Method Suited for Embankment Ground
Grouting in
crack

Step

Cross-section
repairSwelling

In addition,
Deformation of frame

DamageOutflow of earth andsand sediments

For the Life Elongation of Structures

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

NETIS No. KT-200007-A

Aged Shotcrete Slope Diagnosis System
Slope Doctor

Load releaser• Hydraulic cylinders are used to break nuts using a cutter and safely removeloads from installed nut anchors, even for anchors without excess length oranchors which had suffered extensive corrosion.

EGN Anchor Method

Steel mouth pipe length with screw + approximately 50 cm(Inner digging, standard 1.5 m)

This is a ground reinforcement method that expands the fixing
agent using pressure grouting, achieving more than twice thepull-out resistance in sandy soil ground and more than 1.5 times
the pull-out resistance in viscous soil ground compared to theconventional reinforcing bar insertion method.

Steel mouth pipe with screw
Drilling diameter: Ø90 mm(Bit diameter: approximately 105 mm)
Injection pipe
Hollow reinforcing corewith injection holes• Expansion of the fixing agent and pressure dehydration effects using pressure
grouting provide high pull-out resistance• Dedicated grouting materials with a pressure dehydration resistance function
maintains fluidity and allows expansion of the fixing agent• Reduces construction period by reducing the number of castings and shortening
the length of reinforcing materials

Fixing agent expanded by pressure grouting

Received the Inventive Idea & Development Technology Award at the 18th National Land Technology Development Award
Surface coating(to restrict salt or
freezing damage)

NNTD No. 0366

Safe removal of loads on
installed nut anchors

Completed construction

Example ofCountermeasure Work
Removal of loose
portions

Large crack with aconsiderable opening

Surface coating
Before construction• Precisely diagnoses thesoundness of aged shotcrete
slopes through the combinationof several relevant surveys.
• Proposes optimum slope designs
by reflecting social needs in the
results of the diagnosis of aged
shotcrete slopes.

NETIS No. QS-110014-VE Technology Promoted for Utilization

NNTD No. 1084

Repair/Reinforcement of Aged Shotcrete Slopes
New ReSP Method• Keeps existing mortar shotcrete without shaving off existing shotcrete, contributing to reducing the volume of industrial waste, the construction period and the size ofthe safety equipment.
• Sprays organic-fiber-reinforced mortar shotcrete that excels in tenacity.
• Adheres the former and new shotcrete surfaces with shear bolts.
5. Slope cleaning work
1. Reinforcing bar work
Standard: Reinforcing bar
L = 1,000 mm
Piece/2 m2Completed construction

Shear bolt
Organic-fiber-reinforced mortar

ANNUAL REPORT 2022

Before construction

Groundn)After breaking

m

0c

x. 5

pro

Ap

ortio

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

p
nd

(Sou

Existing mortar /concrete

24

d
ere
ath
(We area)

2. Rear-void
grouting work

Analysis method: thermal infrared radiation imaging method, flexural oscillation method andcoring method (combined use depending on the site conditions)* This technology was jointly developed with Daia Consulting Co., Ltd., Dainichi Consultant, Inc.,and Nippon Insiek Co., Ltd.

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

4. New installation work of drain pipes

Existing mortar/
shotcrete

ANNUAL REPORT 2022

25

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Our Business field

NETIS No. KT-200077-A

NNTD No. 0372

Reinforcing Slopes with Shotcrete Pressure Receiving Plates and Rock Bolts

Filling Voids with High-Quality Plastic Grout

Shotcrete Pressure Receiving Plate Method (FSC Panel)

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

Shotcrete pressurereceiving plate(FSC panel)

Reinforcing
material
Existing sprayedmaterial• Underwater-inseparable and plastic grout excels in pressure feeding.
• Features automatic control of the flow 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.
Plasticity andself-sustainability

Rock bolt

Shotcrete portion
with increased
thickness

Underwater inseparability

NITTOC’s original system
to control the flow
volume of base and plastic
materials based on theplanned mixture.

Installation of reinforcing material

Spraying of fiber-reinforced mortarMax

Non-contractility

Soun
d gro

Weath
ered gro

Shear bolt

und

und

Drain pipe
Max. 2,000

COGMA System. 2,0Completion of work

00

Max

Before hardening. 2,0*The technology was jointly developed with the Railway Technical Research Institute.

00

After hardening

Unit: mm

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

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

Mortar Shotcrete Possible to
1 km Destination
Kiro Fukeru Method

Method to cut and remove installedanchors using proprietary bits

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

• Japan’s first dedicated system for cutting groundanchors• Cuts off steel wires of anchors using exclusive cutting
tools and a general-purpose drill machine.
• Enables removing installed anchors and installing new
anchors (possible to use existing pressure receiving
structures as well).

After removal
New installed anchor

Pumping distance: 1,000 m (with a hose extension)
Design strength:
18 N/mm2 or more

Additionally installed anchors

NNTD No. 0364

Installed anchor

Mortar Shotcrete for a Long Distanceand at Elevated Places
HiSP Method• 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.
CD Type bit(for covered drilling)

SH Type bit(for steel wire cutting)Installed anchor

Removal

New installed anchor

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

26

ANNUAL REPORT 2022

ANNUAL REPORT 2022

27

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Domestic Construction Projects (earthquake-proof works and others)

Domestic Construction Projects

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

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

Initiatives for the Restoration and Reconstruction
from the Hokkaido Eastern Iburi Earthquake

During construction

Horonai Area T Restoration and Forest
Conservation Work and 1 Other Work
(Atsuma Town, Yufutsu District, Hokkaido)

The Hokkaido Eastern Iburi Earthquake struck on September 6,
2018, recording a maximum intensity of 7 on the shindo (seismic
intensity) scale. The earthquake triggered landslides over a wide
area of Atsuma Town. This project was conducted to protect theslopes in the Takaoka Area of Atsuma Town, which had collapsed
due to the earthquake. The slope was relatively gentle, but forsafety reasons, we employed on-site spraying slope frame method
in many places.

After completion

Orderer:
Owner:

Hokkaido Iburi General Subprefectural Bureau
Kimura-Taiki Earthquake Disaster Recovery Construction Special Joint
Corporate Association
Project Overview: On-site spraying slope frame work (F200), planting base material spray
work, planting sheet installation

Before construction

FY2020 Disaster Recovery-related
Emergency Forest Conservation
Project Design No. 1(Kyoto City, Kyoto Prefecture)

Due to the torrential rainfall that occurred on July 8, 2020, the slope
beside the railway track near Kibuneguchi Station of Eizan Electric
Railway collapsed, causing fallen trees and accumulated sedimenton the railway track. This work involved the protection work of thecollapsed slope. In order to operate trains as soon as possible, westarted from the lower part of the slope, which was different fromusual. After the protection work for the lower part of the slope
was completed and trains resumed operation, we conducted thework for the upper part of the slope, using single pipes and curing
sheets, etc. to prevent falling objects, as it was near railway tracks.

After completion

Orderer:
Kyoto Forestry Office, Kyoto Prefecture
Project Overview: Spraying slope frame work (F300,200), bar insertion work,
planting base material spray work, vegetation matting, etc.

During construction

Before construction

Aftercompletion

After construction

Initiatives for Restoration and Reconstruction

Kuki Area Disaster-Related Emergency
Forest Conservation Work
(Kuji City, Iwate Prefecture)

The slope collapsed due to Typhoon No. 19 in October 2019, andsediments spilled onto the road directly below. This is an emergency
forest conservation work on that slope. First, we removed excavatedrock and sedimentary soil, and then installed a 1-ton cable craneand monorail to transport materials and equipment.
For the frame of the upper part of the slope, we employed the HiSP
method and inserted rock bolts using the SD method. For those of the
middle and lower parts of the slope, we employed the HiSP method.

FY2021 Taki Town Disaster Recovery
Work No. 3(Taki Town, Izumo City, Shimane Prefecture Asayama Town, Oda City, Shimane Prefecture)

Heavy rains in mid-August 2021 caused landslides in various partsof the San’in region, partially collapsing a top of slope of National
Route No. 9, a major road in the San’in region, and closing theroad to all traffic. In addition, the JR San’in Main Line, which runs
alongside National Route No. 9 on the ocean side, was also closed.
This project involved restoration work. We were in charge ofdrainage boring work, mortar shotcrete work, and other work.
After the temporary restoration work, the JR San’in Main Line was
opened to traffic on October 2, and National Route No. 9 was
opened to traffic on October 18 with alternating one-way traffic.
Orderer:

Ministry of Land, Infrastructure, Transport and Tourism, Chugoku Regional
Development Bureau, Matsue National Highway Office
Project Overview: Water collecting boring work, mortar shotcrete work, rock bolt work, etc.

Orderer:

Sanriku Northern Forest Office Kuji Branch, TOHOKU National Regional
Forest Office
Owner:
Yamaguchi Construction
Project Overview: Slope frame work, bar insertion work

28

ANNUAL REPORT 2022

ANNUAL REPORT 2022

29

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Our Award-Winning History

Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Technology Fair Exhibition Achievements

Japan Federation of Construction Contractors
Awards 2021 The second Construction
Excellence Prize: Awarded to Hokusatsu Tunnel (Izumi construction area)of Hokusatsu Odan RoadOn December 9 (Thursday), the Japan Federation of Construction Contractors held the Japan Federation of Construction
Contractors Awards 2021 ceremony at The Okura Tokyo in Minato Ward, Tokyo. The 62nd BCS Prizes were presented to 15
outstanding buildings constructed in Japan, and the second Construction Excellence Prizes were presented to 11 outstanding
projects and structures in the field of civil engineering. Among the projects awarded, the Hokusatsu Tunnel (Izumi constructionarea) of the Hokusatsu Odan Road received the Construction Excellence Prize, and the Company received the prize as a partner(construction by the Directly-Controlled Grout Division).
Among the 11 winning works of Construction Excellence Prize, we were also in charge of a part of the following three construction
projects.
Construction of Oitagawa Dam:
grouting (construction by the Directly-Controlled Grout Division), slope (construction by Kyushu Branch)
Construction of Kanogawa Dam Tunnel Spillway: grouting (Directly-Controlled Grout Division)
Renewal Project of Rt. 1 Haneda Line of Tokyo Metropolitan Expressway (Phase I) : Splitz Anchor (Tokyo Branch)

Hokusatsu Tunnel (Izumi construction area) of Hokusatsu Odan Road
Development of the RPG (ring-post-grouting) method for reducing a large amount of spring water inmountain tunnels
Location:

Imizu City, Kagoshima Prefecture

Owner:

Kagoshima Prefecture

Designer:

Joint Venture of Kumagai Gumi Co., Ltd., Seibu Construction Co., Ltd., Watanabe Gumi Co., Ltd.
and Kamada Construction Co., Ltd.

Contractor:

Joint Venture of Kumagai Gumi Co., Ltd., Seibu Construction Co., Ltd., Watanabe Gumi Co., Ltd.
and Kamada Construction Co., Ltd.

Partners:

Oyo Corporation
Nittoc Construction Co., Ltd.
Sasajima Construction Co., Ltd.

Construction start date:Domestic Construction Projects(earthquake-proof works andothers)Fiscal 2021 Construction Technology
Exhibition Achievement
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. In fiscal 2021, we exhibited our technologies at the following various technology fairs
sponsored by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT), relevant academic societies and other organizations.2021
NITTOC considers various technology fairs and exhibitions as ideal venues to showcase its original technology. At such events, theCompany 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 from thediverse exhibits presented in line with the respective fair themes.

Fiscal 2021 Construction Technology Fair Exhibitions
PeriodName of Construction Technology Fair

Organizer

Venue

Jun. 2 (Wed.) and Jun. 3 (Thurs.)

Engineering Exhibition “EE Tohoku ’21”

Regional Development Bureau, etc.

Yume Messe Miyagi Hall

Jul. 12 (Mon.) to Jul. 14 (Wed.)

55th Geotechnical Engineering ResearchPresentation Meeting

Japanese Geotechnical Society

WEB

Jul. 14 (Wed.) to Jul. 16 (Fri.)

Maintenance & Resilience OSAKA

Japan Management Association

INTEX OSAKA

Sept. 8 (Wed.) and Sept. 9 (Thurs.)

Fukui Construction Technology Fair

Fukui Prefectural Public Corporation ofConstruction Technology, etc.

Fukuiken Sangyo Kaikan

Oct. 6 (Wed.) and Oct. 7 (Thurs.)

Highway Techno Fair 2021

Express Highway Research Foundationof JapanTokyo Big Sight

Oct. 20 (Wed.) and Oct. 21 (Thurs.)

Construction Fair Hokuriku

Regional Development Bureau, etc.

Niigata Industrial Promotion Center

Oct. 27 (Wed.) and Oct. 28 (Thurs.)

Construction Technology Expo 2021 Kinki

Regional Development Bureau, etc.

INTEX OSAKA

From Oct. 18 (Mon.)

Japan Association of AgriculturalEngineering EnterpriseJapanese Geotechnical Society

WEB

Nov. 2 (Tue.)

New Technology Exchange Event in
Shizuoka

Shizuoka Prefecture

Shizuoka Prefecture Convention & Arts
Center GranshipNov. 18 (Thurs.) and Nov. 19 (Fri.)

Construction Technology Forum 2021 inHiroshima
Chugoku

Regional Development Bureau, etc.

WEB

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

Construction Xross 2021 Kanto

Regional Development Bureau, etc.

Sunshine City

Dec. 14 (Tue.) and Dec. 15 (Wed.)

Construction Technology Fair 2021 in Chubu

Regional Development Bureau, etc.

Fukiage Hall

March 16, 2009

Construction completion date: March 17, 2017

Reason for award
It was a mountain tunnel construction project in which the drilling work caused a large amount of spring water containing
arsenic. The critical issue was to significantly reduce the amount of such water. We developed the RPG (ring-post-grouting)method to construct a ring-shaped ground improvement zone by post-grouting after drilling a tunnel, thereby reducing waterflow and preventing the tunnel from being affected by high water pressure from a height of over 100 m.

Before construction(spring water flow)

At completion of construction(reduction of spring water flow
into the upper half )The venue for the Japan Federation ofConstruction Contractors Awards 2021
General Manager Sunoda, DirectlyControlled Grout Division, holding the prize
plaque (left), and President Wada30

ANNUAL REPORT 2022

ANNUAL REPORT 2022

31

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Overseas Deployment

Overseas Deployment

Feedback from International Employees
NITTOC is working to develop international human resources through measures such as vocational training overseas, language training,
temporary transfer of employees to overseas construction sites and education of foreign engineers, mainly persons from Indonesia. We
would like to introduce some of the employees working globally at NITTOC.

Development of Overseas Business
The Republic of Indonesia has a population of approximately 270
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 acquireorders 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 Asian region.

I joined PT. NITTOC CONSTRUCTION INDONESIA (PT NCI) in August 2017 after being introduced tothe company because my college mentor had a cooperative relationship with PT NCI. I worked as an
assistant engineer for several year after joining the company. After about one and a half years of onsite management work, I received training on cost management methods in Japan for about threemonths. During my training in Japan, I learned a lot about site conditions, personnel management,material management, and setup methods in Japan. I became able to improve the accuracy of
project budget preparation by deepening my knowledge of site management. I hope to contributeto the development of the Indonesian geotechnical engineering industry by applying Japanesequality and technology to Indonesian construction sites to help solve the issues of customers.

ANGGA ADHITYA FIRMANSYAH
Position: PT. NTTOC CONSTRUCTION INDONESIA

Nationality: Indonesian

PT. NITTOC CONSTRUCTION INDONESIA, a Subsidiary in Indonesia
Since the Jakarta Representative Office was established in September 2012, we conducted surveys and made preparations to establish
a locally incorporated company. Finally, the Company resolved to establish a joint venture with PT. PANCA DUTA PRAKARSA, which will
undertake the construction business in Indonesia, and both companies entered into a joint venture agreement in October 2015. PT. NITTOCCONSTRUCTION INDONESIA was subsequently established and started operation in April 2016, and six years have passed since then.
The Company will conduct order-receiving activities through PT. NITTOC CONSTRUCTION INDONESIA, the established consolidated
subsidiary, to obtain orders for specialized works such as slope and ground improvement related to infrastructure in Indonesia.

Outline of the Joint Venture
Trade name

PT. NITTOC CONSTRUCTION INDONESIAANGGUN ASTRINI

Representative

Akihiko Nakagawa

Position: PT. NTTOC CONSTRUCTION INDONESIA

Location

Jakarta Selatan (South Jakarta), Indonesia

Date of operational start

April 2016

Description of business

Construction business in Indonesia

Fiscal year-end

March 31

CapitalIndonesian Rupiah (IDR) 51,000 million (Approximately JPY 439 million)
Note: Calculated at an exchange rate of 1 rupiah = 0.0086 yen

Composition ofshareholders

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

Address

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

PT. NITTOC CONSTRUCTION INDONESIA’s Web site

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

32

I joined PT. NITTOC CONSTRUCTION INDONESIA in August 2017 as personnel in charge ofprocurement, import and export. I was working in the import of heavy machinery before joining
PT NCI. I am very happy to join PT NCI. I feel both Indonesian and Japanese staff members are like afamily here. We are specialists in specialized construction work that no other construction company
can do, using special machinery that is unfamiliar in Indonesia, and we feel that every job site isa challenging. I will continue to work diligently to further develop and become the number one
specialized construction company in Indonesia.

ANNUAL REPORT 2022

Nationality: Indonesian

I have a bachelor's degree in law and I am working as a newly established legal staff in theadministration department of PT. NITTOC CONSTRUCTION INDONESIA. This is the first job where I
have been able to utilize my background and knowledge. This has also been my first time working
for a Japanese construction company. Through my daily work, I am working hard to improve myknowledge and skills in the legal field, to strengthen compliance with laws and regulations, and toprotect the company from legal disadvantages.
PT NCI’s work environment is excellent, and my colleagues and staff are all great to work with. I will
always do my best to grow and contribute to make PT NCI the number one specialized construction
company in Indonesia for ground improvement works and disaster prevention works.

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

Position: PT. NTTOC CONSTRUCTION INDONESIA

Nationality: Indonesian

ANNUAL REPORT 2022

33

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

International Business

International Business

Introduction of Overseas Construction Projects

Employee Education
PT. NITTOC CONSTRUCTION INDONESIA conducts regular training for its employees to improve their skills.

In the Republic of Indonesia, we have accumulated a steady record of undertaking construction projects through the establishment of arepresentative office and a subsidiary.
We would like to introduce some of the projects we have undertaken in Indonesia.

CENTRAL JAVA PROJECT COAL FIRED
POWER PLANT

Implementation of employee training
Our safety and technology staff are regularly trained (about once a month) to learn about our construction technologies and safety
management.
In September, 10 employees participated in the training and learned about slope stabilization and measures to prevent slope failure. In
addition to this, group training sessions are held about once a month. We will continue to hold regular training sessions to raise the level of
employees’ competencies.

This is the first 2,000MW coal-fired power plant in Indonesia using ultrasupercritical pressure boilers, built for the purpose of supplying electricity
between Java and Bali. We are in charge of landslide prevention works ofembankment at the coal ash disposal yard.
Orderer:
Owner:
Location:
Purpose:
Method:Period:PT. Bhimasena Power Indonesia (SPC [ITOCHU Corporation, Electric Power Development
Co., Ltd.(J-power), etc.])
Mitsui E&S Engineering Co., Ltd. - Murinda Joint Operation (JO)Batang, West Java
Construction of a new ultra-supercritical coal-fired power plant
CDM work and power blender work
October 2021 – Ongoing

JAKARTA MASS RAPID
TRANSIT PROJECT
Jakarta has made tremendous progress as a center of
economic activity. However, since the city suffers fromchronic traffic congestion, it decided to build a new subway
to alleviate the problem. The Company performed base slab
reinforcement work and pithead protection work associatedwith the construction of the new subway line.

Technical training session

Safety Conference - PT .NITTOC CONSTRUCTION INDONESIA
6th Anniversary Party
Once a year, we hold a safety conference by gathering all employees and relevant workers aimed at improving their safety awareness.
On November 17, 2021, PT. NITTOC CONSTRUCTION INDONESIA held the 6th Anniversary Party and a safety conference. In light of the
COVID-19 pandemic, again this year, we held a web conference that allowed employees who work from home and employees at various
sites to participate remotely.
At the conference, PT .NITTOC CONSTRUCTION INDONESIA introduced examples of workplace accidents in Japan and Indonesia that
occurred in fiscal 2020. We continued with disaster case studies for construction projects that PT .NITTOC CONSTRUCTION INDONESIA is
engaged in now, or will start in the near future, introducing disaster cases involving slope protection and electrical issues. In addition, it
raised the awareness of staff regarding the importance of safety work. PT .NITTOC CONSTRUCTION INDONESIA awarded staff and workers
who have continuously served for 5 years.

Orderer:
Owner:
Location:
Purpose:
Method:Period:PT. MRT JAKARTA (Subway construction and operation company)
Shimizu - Adhi Karya JO
Special Capital Region of Jakarta
Construction of a new subway line
jet grouting work, chemical grouting work, etc.
October 2020 – Ongoing

Cement Soil Mixing
Demonstration Work
Development of Makassar City
Northwest Zone
The infrastructure development in Makassar, the largest city in eastern
Indonesia, has not been able to keep up with rapid population growth
driven by economic growth. The Company is constructing a new
sewage system in the city.
Orderer:
Owner:
Location:
Purpose:
Method:6th Anniversary Party

34

ANNUAL REPORT 2022

5th Anniversary Awards

Period:Ministry of Public Works and Housing
PT. ADHI KARYA(Persero)Tbk = 1 site
PT. WASKITA KARYA(Persero)Tbk = 2 sites
Makassar, South Sulawesi
Construction of a new sewage system
Pipe jacking work 450mm L=224m (5 spans)
Pipe jacking work 600mm L=736m (10 spans)
August 2020 – Ongoing

ANNUAL REPORT 2022

35

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

SDGs Initiatives

NITTOC

KAERUDO-Green method

In the site development work ordered by the Okinawa Defense Bureau (Yonaguni
Island), the following issues had to be addressed in order to preserve the precious
ecosystem and natural environment of Yonaguni Island.
- Do not bring any plants or soil on to the island- Reuse the cleared soil (topsoil) generated during site development- Do not take construction materials off the island- Do not allow red soil to flow into the sea- Able to cope with severe weather conditions such as typhoons

NITTOC supports the Sustainable Development Goals (SDGs). Based on our management philosophy of “a company that provides a safe
and secure society and contributes to countries with its efficient management and comprehensive technical capabilities in foundation
work,” we will contribute to the achievement of the SDGs by addressing social issues through the technologies we possess.

Improvement of Social Infrastructure

The KAERUDO-Green Method enables the use of a relatively large amount of topsoil asa growth foundation for plants and has high erosion resistance, which led to its
adoption. Another major reason for adopting this method is that it uses a large
amount of topsoil, which allows for a high seed mixing ratio and relatively earlygreening.

Dissemination of technologies to improve the functionality andlongevity of social infrastructure
Evaluation of structural integrity and fix for slope structures
Frame Doctor method

Shotcrete Bearing Plate Method(FSC panel)

New ReSP method

Shotcrete Bearing plate(FSC panel)

Organic-fiber-reinforced
mortar spraying work
t=7cm

Geofiber Method

Reinforcing material
Existing sprayed materials
Rock bolt

Shotcrete portion
with increased
thickness

Continuous fiber-reinforced soil work
(slope protection type)

ed

her

eat

(W

Ma

und

grou

x. 2

,000

a)

are

Reduction of CO2
emissions byapproximately 19 t
Equivalent to the CO2
absorption capacityof 1,300 cedar trees*.

d gro

Existing mortar /shotcrete

Weath

ered

App

n)

ortio

nd p

(Sou

Disaster Recovery

Shear bolt

0cm

.5
rox

Soun

Max. 2,000ndDrain pipe

The Geofiber Method is an alternative to sprayed slope frame construction for slope
protection. It is a reinforced soil composed of fibers and sand, and does not require
the use of cement, which emits large amounts of CO2. When compared to sprayedslope frame construction, which is a cement structure, CO2 emissions can be reduced
by 40%. Since the Geofiber Method is also a greening method, CO2 absorption
through vegetation can also be expected.

Max

. 2,0

00

Planting work (vegetationbase material spraying work)

Unit mm

Ground reinforcement
or plate-reinforced
anchor work

Creating a safe, secure and sustainable society

Continuous fiberreinforced soil work
(retaining wall shape type)

Biodiversity Preservation, CO2 Emission Reduction

The New Sleeve Grouting Method is a ground injection method that uses polygon
pipe, a new grouting pipe, to enable long penetration grouting sections. The length of
the secondary grouting section is about ten times longer than that of theconventional technologies, enabling high-speed grouting. The number of grouting
holes can also be reduced as the method can be applied over a wide grouting area.
These features reduce the amount of fuel and materials used and enable the use of
topsoil, resulting in a 46% reduction in CO2 emissions compared to conventional
technologies.

New Sleeve Grouting Method

Contribution to a decarbonized society, promotion of sustainable
environmentally friendly technologies- Use of topsoil- CO2 reduction- Hydroelectric power generation- Transmission lines

Recycled greening (pages 3, 19)
Geofiber Method (page 18), New Sleeve Grouting Method (page 13), New ReSP Method (page 11)
Dam grouting, foundation treatment
Small diameter piles (page 17)
Slope Saver

Sustainable Infrastructure Development

Addressing the shortage of construction
workers and work styles reforms by
developing next-generation technologies
using ICT
- Use of ICT- Labor and manpower saving- Use of AI
36

ANNUAL REPORT 2022

Utilization of slope 3D models (page 7), Grout
Conductor (page 8), etc.
Slope Saver (page 6), Shot Saver (page 7)
Crack detection (page 6)

CO2 40% decrease

Primary
grouting
Secondarygrouting

Reduction of CO2 emissions
by approximately 23 t
Equivalent to the CO2
absorption capacityof 1,700 cedar trees*.

Approx.
1m
Polygon pipe

New Sleeve Grouting Method

Conventional Method(sleeve grouting method)

CO2 46% decrease* Cedar tree equivalent: A cedar tree (50 years old, approximately 20 to 30 m high) is estimated to absorb about 14 kg-CO2 of CO2 per year.
Ministry of the Environment and Ministry of Agriculture, Forestry and Fisheries, “Green Sink Sources for Global Warming Countermeasures”

ANNUAL REPORT 2022

37

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Environmental Responsibility

1. Engineering and Development Division recognizes global
and aims to reduce the burden on the global environment
by working to improve and continuously enhance theenvironmental management system.
2. Promote effective research and development to establish aresource recycling society that leads to the effective use ofMissionlimited resources and reduced burden on the environment.

A company that provides a safe and secure society and contributes
to countries

3. Promote activities aimed at reducing waste, increasing recycling

Value

rates, saving resources and energy, conserving the ecosystem

Efficient management and comprehensive technical capabilities

and landscape, promoting the use of environmental friendly

in foundation work

products, and adapting to climate change.

VisionSDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Our landscape conservation technology helps to restore the landscape while protecting the security of valuable cultural properties
and historical sites.

environment conservation as one of its business activities,

Environmental Policy of NITTOC’s Technology
Development Department
to widely contribute to society.

International Business

Landscape Conservation Technology for
Cultural Properties

Environmental Policy

NITTOC establishes the following as its management philosophy

Overseas Deployment

Landscape Conservation Technology of Cultural Property

Environmental Responsibility
Environmental Policy of Technology
Development Department

Our Award-Winning History
Technology Fair Exhibition
Achievements

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 withreinforced soil using the Geofiber Method. Plants will grow at the site and the beautiful landscape full of greenery will return soon.

4. Comply with environment related laws and regulations,

To lead disaster prevention and environmental conservationagreements, customer and industry requirements to actively

as the expert of foundation work accumulated by our reliablefulfill social responsibility for environmental protection.

technological ability

5. Improve environmental conservation awareness by educating
personnel of Engineering and Development Division.

Based on this management philosophy, Technology Development
Department shall promote research and development for

6. Disclose the implementation status of the environmental policy

the establishment of a resource recycling society in order toand environmental conservation activities as needed in order tomake effective use of limited resources and reduce the burdencooperate with customers and the community.

on the environment. It shall also work to conserve the global
for realizing such a society, and contribute widely to society.
Accordingly, we have defined the following items as the guiding
principles for our business activities.

Operational Organization Diagram of the Engineering and Development Division Environment
Management System

Environmental
Management Officer

Utsunomiya Castle Site Park (Tochigi)
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.

environment, such as by creating an optimal environment

General Manager ofEngineering and Development Division

Slope seen from the stage of Kiyomizu-dera Temple

Engineering and Development Division
Operation and Management related to Research,
Business Development and Quality Control

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

Joyama Cave Tombs Historical Site Preservation and
Maintenance Work (Fukuoka Prefecture)
The Joyama Cave Tombs are located in Fukuchi Town, Tagawa
District, Fukuoka Prefecture. The cave tombs are said to have been
built between the first half of the sixth century and the second halfof the seventh century and were designated as a historical site by
the Japanese government in 2014. In this project, we protected thecave slope using the Geofiber method, as part of a maintenanceproject in the area of the tombs. After completion, we restored theslope to its original state, and the site was opened to the generalpublic as a historic park. [Orderer: Fukuchi Town, Fukuoka Prefecture]
Before construction

Before the work

NITTOC Hasuda General Center

Environmental Committee
Environment Committee Bureau
After the work

38

ANNUAL REPORT 2022

After completion

ANNUAL REPORT 2022

39

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

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.

Kyushu Branch KAERUDO-Green Method Spraying Experience(Nagasaki, November 2021)
NITTOC cooperated in a tour organized by the Ministry of Land,
Infrastructure, Transport and Tourism, Kyushu Regional Development
Bureau, Nagasaki River and National Highway Office to increase
familiarity with and interest in the Honmyo River Dam by experiencing
and sharing the environmental conservation efforts of the Honmyo
River Dam construction project. On the day of the tour, 11 students andtwo teachers from local elementary school were invited to the activities
including a construction site tour. The participating elementary school
students were given a chance to hold a spray nozzle and experiencespraying.

Tohoku Branch Road Cleanup Volunteer Activities(Aomori Prefecture, October 2021)
On October 23, together with employees of THE GEOFIBER SOCIETY
member companies in Aomori Prefecture, NITTOC employeesof the Tohoku Branch conducted cleanup activities covering anapproximately 8-kilometer area between Takada Asahiyama andNamioka Kareizawa, Aomori City, on Prefectural Rout No. 27. A total of
25 people from 11 companies, including four employees of NITTOC’s
Aomori Sales Office, participated in the cleanup activities, picking up
roadside garbage and cleaning up the 8-kilometer stretch of road.
Garbage was separated into combustible and noncombustible andcollected, and illegal dumping of home appliances and other items
were reported separately to the authorities.
We were able to collect a lot of garbage again this year, as shown in
the photo. Last year, the event was not held due to COVID-19, so thiswas the first time it was held in two years.

Supporting Paralym Art activities(from September 2021)

Tohoku Branch: Regeneration and Maintenance Activities for a
Seaside Forest Reserve to Prevent Disasters(Miyagi Prefecture, April 2021)

We support the activities of Paralym Art (SHOUGAISHA JIRITSU
SUISHIN KIKOU ASSOCIATION), who undertakes an art projectfor people with disabilities based on the philosophy of “Creatinga world where people with disabilities can fulfill their dreams
through art,” and have signed on as a Bronze Partner since thisfiscal year. We support Paralym Art’s activities through the displayof artworks and cooperate with the organization to help people
with disabilities participate in society and become economically
self-reliant. As one of such activities, we have started to display theworks of artists belonging to Paralym Art in temporary enclosuresat each of our branch sites from January 2022.

We participate in a reforestation activity for seaside disaster-prevention
forests that were washed away in the Tohoku Earthquake & Tsunami.
Much time has passed since new trees were planted in 2014, and trees
have grown differently from one place to another. They have grown
to heights ranging from 1.5 m to 4 m, depending on the location.
On the day of this activity, seven employees of the Tohoku Branch,including the branch manager, performed maintenance work. Theirduties included spreading fertilizer and cutting bottom weeds. We plan
to continue this activity going forward by doing regular maintenance
work.

Hiroshima Branch: Sabo Facility Inspection Activities Conducted by
the Sabo Frontier Foundation in Yamaguchi Prefecture(Yamaguchi Prefecture, January 2022)
NITTOC employees of the Hiroshima Branch participated this year,
as they did last year, in Sabo facility inspection activities, which areconducted by the Sabo Frontier Foundation to prevent sedimentdisaster. In cooperation with the Sabo Section, Civil Engineering
Department, Yamaguchi Prefectural Government, NITTOC employees ofthe branch conducted inspection activities at sediment disaster-prone
locations in Yamaguchi Prefecture such as areas with a sharp slope andlandslide prevention-designated areas as well as the Sabo facilities.
This year, like last year, more than 50 people, including the prefectural
civil engineering staff and the Sabo Frontier Foundation’s associates,
inspected the Sabo dam in Yamaguchi Prefecture in the group of 6
members. Such inspection activities included checking for significant
changes in condition at the previously inspected checkpoints.

40

ANNUAL REPORT 2022

Installation of a Donation Box for the Children’s
Cafeteria “Ohisama Kitchen, Ohisama Food Pantry”(Tokyo, September 2020 – Ongoing)
We have set up a donation box for the children’s
cafeteria “Ohisama Kitchen, Ohisama Food Pantry” in our
Head Office building. The children’s cafeteria “Ohisama
Kitchen, Ohisama Food Pantry” was launched with thegoal of providing as much relief as possible for difficult
environments, including households where children are
hungry and have nothing to eat, or where the parents
work while the children are at home alone with nobody
to talk to while having meals. We support this goal andhave set up a donation box to assist them.

ANNUAL REPORT 2022

41

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

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

Summary of Our Corporate Governance System
NITTOC’s corporate governance system

Annual Shareholders’ Meeting
Election /Consultation

Special Committee/ Nomination andCompensation Committee

ReportAudit

Directors / Board of Directors

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.

Election / Dismissal

Cooperation

Election /Dismissal

Election /Dismissal

Accounting Auditor

ReportAccounting audit
ReportAudit Department

ReportInternal audit

Internal audit

ReportII. Status of Development of the Internal Control System

ANNUAL REPORT 2022

ReportReportManagement Meeting

42

Corporate Auditors /Board of Corporate
Auditors

ReportRepresentative
Directors

Instruct

ReportDiscuss / ReportSupervision

Instruct

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.

Election / Dismissal

Election / Dismissal

ReportCorporate Strategy
DivisionManageVarious committees including
Compliance Committee

Guidance

Corporate lawyer
AdviceOperating Officers
Business execution

Risk management
Guidance / Advice

Head Office / Branches

ControlGroup Companies

ANNUAL REPORT 2022

43

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Management Members

DIRECTORS
President and Representative Director

1 Yasuo Wada

Vice President and Director

2 Hiroshi Yamada
Director

3 Toshikazu Kawaguchi
Director

4 Naoto Kami
Director

5 Katsuhiro Yorozu
Director

6 Iwao Aso
Director

7 Masayuki Watanabe(Outside Director)
Director

8 Katsuo Nakamura(Outside Director)
Director

9 Naoko Okada(Outside Director)

7

5

3

4

9

6

2

44

ANNUAL REPORT 2022

8

1

ANNUAL REPORT 2022

45

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Management Members

CORPORATE AUDITORSStanding Corporate Auditor

1 Yoshihiro Abe

Standing Corporate Auditor

2 Makoto Kaai

(Outside Corporate Auditor)
Corporate Auditor

3 Atsushi Ono(Outside Corporate Auditor)

MANAGING EXECUTIVEOFFICERSManaging Executive Officer

4 Yasushi Sunoda

Managing Executive Officer

5 Masaru AsaiManaging Executive Officer

6 Koichi SugaManaging Executive Officer

7 Atsushi Yamazaki

Managing Executive Officer

8 Tetsuya Shiramasa

8

46

ANNUAL REPORT 2022

6

4

2

1

3

5

7

ANNUAL REPORT 2022

47

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

Consolidated Financial Statements, etc.
1. Consolidated Financial Statements
1) Consolidated Balance Sheets
March 31, 2021 and 2022

Thousands of
U.S.Dollars(*)

Millions of yen
2021

2022

2022

2021

2022

2022

11,33911,921

97,409Liabilities

AssetsCurrent liabilities

Current assets
Cash and deposits

17,722

20,723

169,321

Notes receivable, accounts receivable from completed construction contracts and other

19,666––

Notes receivable, accounts receivable from completed construction contracts and other and contract assets

Notes payable, accounts payable for construction contracts and other
Short-term borrowings

278

–

–

Advances received on construction contracts in progress

2,032

593

4,852

Lease obligations

3

0

1

Income taxes payable

1,274

555

4,539

–

17,93446,535

2,921

2,563

20,948Merchandise and finished goods

9

25

208

Real estate for sale

0

0

0

*4 1,359

301

2,465

Provision for bonuses

Raw materials and supplies

243

285

2,336

Provision for bonuses for directors (and other officers)

Other

360

693

5,666

Electronically recorded monetary claims — operating

Costs on construction contracts in progress

Allowance for doubtful accounts
Total current assets

(2)

(2)

(16)

42,282

42,526

347,467

Provision for warranties for completed construction
Provision for loss on construction contracts

25

210

168

1,378

1,501

1,150

9,396

36

33

270

Other

2,156

2,341

19,127

18,931

16,790137,186

5

4

37

4,162

4,209

34,392

71

97

794

4,239

4,311

35,22523,171

21,101

172,411

Non-current liabilities
Retirement benefit liability

Property, plant and equipment

24*4 286

Total current liabilities
Lease obligations

Non-current assets

Other

Buildings and structures, net*1 1,645*1 1,639

13,392

Machinery, vehicles, tools, furniture and fixtures, net*1 1,133*1 1,314

10,741

Land

2,638

2,578

21,065

Leased assets, net

*1 13

*1 0

1

Shareholders’ equity

Construction in progress

166

253

2,069

Share capital

6,052

6,052

49,452Other, net

*3 2

*3 2

16

Capital surplus

2,022

1,753

14,324

Total property, plant and equipment

5,598

5,787

47,286

Retained earnings

21,41922,560184,336

4,961

Treasury shares(1,057)(0)(7)

Total shareholders’ equity

28,43630,365248,105

Valuation difference on available-for-sale securities

312

112

916

Foreign currency translation adjustment

(34)

3

26

Remeasurements of defined benefit plans

(95)

(58)

(481)

Total accumulated other comprehensive income

183

56

461

Intangible assets

445

607

Investments and other assets

Total non-current liabilities
Total liabilities
Net assets

Accumulated other comprehensive income

Investment securities

974

417

3,411

Deferred tax assets

2,127

2,003

16,366

Other

602

403

3,293

Allowance for doubtful accounts

(59)

(32)

(266)

Total investments and other assets

3,644

2,791

22,804Non-controlling interests

9,689

9,185

75,052

Total net assets

51,971

51,712422,520

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

48

Thousands of
U.S.Dollars(*)

Millions of yen

ANNUAL REPORT 2022

Total liabilities and net assets

180

188

1,541

28,80030,610250,108

51,971

51,712422,520*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

ANNUAL REPORT 2022

49

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Fiscal Years Ended March 31, 2021 and 2022

Consolidated Statements of Comprehensive Income
Fiscal Years Ended March 31, 2021 and 2022

Thousands of
U.S.Dollars(*)

Millions of yen
2021

2022

2022

2021

67,71865,882538,296

237

194

1,588

67,95566,076539,884

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

ProfitCost of sales
Cost of sales of completed construction contracts
Cost of sales in other businesses
Total cost of sales*1 54,959*1 53,849

439,981

142

92

754

55,102

53,941

440,736

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

12,75912,032

98,314

94

102

834

12,853

12,134

99,148*2,3 7,495*2,3 7,611

62,192

5,358

4,523

36,955

2022

2022

3,495

3,318

27,112

Valuation difference on available-for-sale securities

124

(200)

(1,638)Foreign currency translation adjustment

69

57

473

Remeasurements of defined benefit plans, net of tax

63

35

291

*1 256*1 (106)

(872)

3,752

3,211

26,239

3,733

3,203

26,17118

868

Other comprehensive income

Total other comprehensive income
Comprehensive income

Gross profit

Thousands of
U.S.Dollars(*)

Millions of yen

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

Non-operating income
Interest income

16

7

57

Dividend income

34

36

297

Patent income

13

16

137

Foreign exchange gains

32

49

406

Other

9

29

237

107

139

1,137

Interest expenses

6

5

42
187

Total non-operating income
Non-operating expenses
Guarantee commission

30

22Commission for syndicated loans

5

5

44

Other

3

2

19

Total non-operating expenses
Ordinary profit

46

35

293

5,419

4,626

37,799Extraordinary income
*4 15

*4 0

0

Gain on sale of investment securities

Gain on sale of non-current assets

–

372

3,040

Total extraordinary income

15

372

3,040

*5 3

*5 11

93

*6 211––

Extraordinary losses
Loss on retirement of non-current assets
Impairment losses

1

–

–

Total extraordinary losses

Other

217

11

93

Profit before income taxes

5,218

4,986

40,746
12,363

Income taxes - current

1,965

1,513

Income taxes - deferred

(243)

155

1,271

Total income taxes

1,722

1,668

13,634

Profit

3,495

3,318

27,112

(5)

(11)

(93)

3,500

3,329

27,205

Profit attributable to non-controlling interests
Profit attributable to owners of parent*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

50

ANNUAL REPORT 2022

ANNUAL REPORT 2022

51

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

3. Consolidated Statements of Changes in Net Assets
Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)

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

(Millions of yen)

Shareholders’ equity

Balance at beginning of period

Shareholders’ equity

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

6,052

2,022

19,420(1,056)26,438Changes during period

Balance at beginning of period

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

6,052

2,022

21,419(1,057)28,436

Cumulative effects of changes in accounting policies

102(1,501)(1,501)

Restated balance

Profit attributable to owners of parent

3,500

3,500

Changes during period

(1)

(1)

Dividends of surplus(1,501)(1,501)00Profit attributable to owners of parent

3,329

3,329

Disposal of treasury shares0

Net changes in items other thanshareholders’ equity
–

0

1,998

(1)

1,997

Disposal of treasury shares

Balance at end of period

6,052

2,022

21,419(1,057)28,436

Cancellation of treasury shares(Millions of yen)

Accumulated other comprehensive income
Valuation difference
on available-forsale securities

21,521(1,057)

188

Foreign currencytranslation
adjustment(79)

Remeasurementsof defined
benefit plans(158)

Total accumulated
othercomprehensive
income(49)

Non-controllinginterests

161

Total net assets(0)(1,501)

Profit attributable to owners of parent

3,500

Purchase of treasury shares(1)

Disposal of treasury shares

0

(0)
–

(269)

(788)

1,057

–

Total changes during period

–

(269)

1,039

1,056

1,826

Balance at end of period

6,052

1,753

22,560(0)30,365(Millions of yen)

26,550

Dividends of surplus

28,538Net changes in items other thanshareholders’ equity

Accumulated other comprehensive income

Changes during period

Net changes in items other thanshareholders’ equity

2,022

Purchase of treasury shares

Total changes during period

Balance at beginning of period

6,052

102

Dividends of surplus

Purchase of treasury shares

Valuation difference
on available-forsale securities
Balance at beginning of period

312

Foreign currencytranslation
adjustment(34)

Remeasurementsof defined
benefit plans(95)

Total accumulated
othercomprehensive
income183

Non-controllinginterests

180

Cumulative effects of changes in accounting policies
Restated balance

Total net assets

28,800
102

312

(34)

(95)

183

180

28,902

124

45

63

232

18

251

Changes during period

Total changes during period

124

45

63

232

18

2,249

Dividends of surplus(1,501)

Balance at end of period

312

(34)

(95)

183

180

28,800

Profit attributable to owners of parent

3,329

Purchase of treasury shares(0)

Disposal of treasury shares–

Cancellation of treasury shares–

Net changes in items other thanshareholders’ equity

52

Share capital

ANNUAL REPORT 2022

(200)

37

36

(126)

8

(118)

Total changes during period

(200)

37

36

(126)

8

1,708

Balance at end of period

112

3

(58)

56

188

30,610ANNUAL REPORT 2022

53

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

4. Consolidated Statements of Cash Flows
Fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)

Fiscal Years Ended March 31, 2021 and 2022
(Thousands of U.S.Dollars)

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity49,452

16,523

175,006(8,638)232,343

Cumulative effects of changes in accounting policies
Restated balance

832
49,452

16,523832

175,838(8,638)233,175

Changes during period

Balance at end of period

Restated balance

(281)

(776)

1,496

1,473

Interest and dividend income

(51)

(43)

(355)

–

Interest expenses

6

5

42

Total net assets

235,313

236,145

Changes during period(12,268)

Profit attributable to owners of parent

27,205Purchase of treasury shares(7)

Disposal of treasury shares–

Cancellation of treasury shares

Total changes during period
Balance at end of period

54

ANNUAL REPORT 2022

Foreign exchange losses (gains)

(16)

(20)

(167)

Loss (gain) on sale of investment securities

–

(372)

(3,040)

Impairment losses

211

–

–

Decrease (increase) in trade receivables(2,828)2,686

21,952

Decrease (increase) in costs on construction contracts in progress

492

227

1,856

Decrease (increase) in other assets

70

(279)

(2,282)

Increase (decrease) in trade payables

(76)

534

4,369

Increase (decrease) in advances received on construction contracts in progress(62)(1,085)(8,865)

Increase (decrease) in accrued consumption taxes

(704)

94

771

Increase (decrease) in other liabilities

240

263

2,153

Subtotal

3,456

7,162

58,522

Interest and dividends received

53

43

358

Interest paid

(6)

(5)

(43)

Income taxes paid

(2,077)(2,450)(20,020)

Net cash provided by (used in) operating activities

1,426

4,750

38,816

Purchase of investment securities

(4)

(5)

(42)

Proceeds from sale of investment securities

–

645

5,274

Purchase of property, plant and equipment

(702)

(627)

(5,125)

Proceeds from sale of property, plant and equipment

16

75

618

Purchase of intangible assets

(29)

(273)

(2,235)

Cash flows from investing activities

Dividends of surplus

Net changes in items other thanshareholders’ equity

(582)

–

832
2,554

(71)

17

Accumulated other comprehensive income

Cumulative effects of changes in accounting policies

284

75

248,105

1,473

Increase (decrease) in provision for loss on construction contracts

2

(7)

1,496

14

9

184,336

(776)

1

3

14,324

(281)

(17)

(15)

49,452

2,554

Increase (decrease) in provision for warranties for completed construction

Loss on retirement of non-current assets(Thousands of U.S.Dollars)

Balance at beginning of period(234)

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

14,929Non-controllinginterests

4,146

(28)

800

8,630

Total accumulated
othercomprehensive
income

507

(8)

97

8,497

Remeasurementsof defined
benefit plans

402

185

(2,198)Foreign currencytranslation
adjustment

Depreciation
Increase (decrease) in allowance for doubtful accounts

Increase (decrease) in retirement benefit liability–

Valuation difference
on available-forsale securities

40,746(28)

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

4,986(2,868)

(7)

8,638

5,218

(3)

27,205(6,439)Profit before income taxes(351)

27,205(2,198)Cash flows from operating activities(6)

Profit attributable to owners of parent

Disposal of treasury shares

2022

130

(12,268)

(7)

2022

Increase (decrease) in provision for bonuses(12,268)

Purchase of treasury shares

2021

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

Dividends of surplus

Cancellation of treasury shares

Thousands of
U.S.Dollars(*)

Millions of yen

Shareholders’ equity–(1,638)308

294(1,035)68(966)(1,638)308

294(1,035)68

13,962

916

26

(481)

461

1,541

250,108

Proceeds from collection of loans receivable

46

–

–

Payments of guarantee deposits

(8)

(15)

(124)

Proceeds from refund of guarantee deposits

6

12

105

Other payments

(41)

(10)

(84)

Other proceeds

10

173

1,420

Net cash provided by (used in) investing activities

(705)

(23)

(193)

ANNUAL REPORT 2022

55

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

Thousands of
U.S.Dollars(*)

Millions of yen
2021

2022

2022

Notes
(Basis of Presenting Consolidated Financial Statements)

Cash flows from financing activities

The accompanying consolidated financial statements have been prepared from the accounts maintained by NITTOC CONSTRUCTION CO., LTD.
(the “Company”) and its consolidated subsidiaries (collectively, the “Group”) in accordance with the provisions set forth in the Financial Instruments
and Exchange Law and its related accounting regulations, and in conformity with accounting principles and practices generally accepted in Japan,
which are different in certain respects as to the application and disclosure requirements of International Financial Reporting Standards.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which the Company is incorporated and mainly
operates. The translation of Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside Japan and has
been made at the rate of ¥110.71 to US$1.00, the approximate rate of exchange on March 31, 2021. 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.

Repayments of long-term borrowings

(274)

(278)

(2,271)

Repayments of lease obligations

(12)

(5)

(41)

Proceeds from disposal of treasury shares

0

–

–

Purchase of treasury shares

(1)

(0)

(7)

Dividends paid

(1,496)(1,501)(12,271)

Net cash provided by (used in) financing activities(1,784)(1,785)(14,592)

71

60

490

Net increase (decrease) in cash and cash equivalents

(991)

3,001

24,521

Cash and cash equivalents at beginning of period

18,713

17,722

144,800(Significant Items on Basis for Preparation of Consolidated Financial Statements)*1 17,722*1 20,723

169,321

1. Scope of Consolidation

Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period(Going-Concern Assumption)
Not applicable

Number of consolidated subsidiaries: 6
Midori Industries Co., Ltd.
Yamaguchi Earth Engineering Co., Ltd.
Shimane Earth Engineering Co., Ltd.
Ehime Earth Engineering Co., Ltd.
Fukui Earth Engineering Co., Ltd.
PT NITTOC CONSTRUCTION INDONESIA(Change in Scope of Consolidation)
The Company established Fukui Earth Engineering Co., Ltd. in October 2021 and has included the company in scope of consolidation.

2. Application of the Equity Method
Not applicable

3. Fiscal Years, etc. of Consolidated Subsidiaries
The year-end date of the fiscal year of the consolidated subsidiaries is March 31, which is the same as the consolidated balance 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 without market quotations other than stocks, etc.:
Valued at fair market value as of the consolidated fiscal year-end date (All changes in valuation difference are included directly in net assets.
Cost of securities sold is determined by the moving-average method).
Stocks, etc. without market quotations:
Valued at cost based on the moving-average method.
2) Inventories• MerchandiseStated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets have been calculated by writing
down the book value based on the decline in profitability.)• Real estate for saleStated at cost using the specific identification method (The figures shown in the consolidated balance sheets have been calculated bywriting down the book value based on the decline in profitability.)• Costs on construction contracts in progressStated at cost using the specific identification method• Raw materials and supplies
Stated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets have been calculated by writing
down the book value based on the decline in profitability.)

56

ANNUAL REPORT 2022

ANNUAL REPORT 2022

57

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements(2) Depreciation methods of major depreciable assets
1) Property, plant and equipment (excluding leased assets): The declining-balance method is applied.
However, the straight-line method is adopted for buildings acquired on or after April 1, 1998, as well as facilities attached to buildings andstructures acquired on or after April 1, 2016, and for machinery equipment. The useful lives and the residual value are based on standards inaccordance 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 isamortized by the straight-line method over the estimated internal useful life (five years).
3) Leased assets
The same depreciation method as that applied to non-current assets owned by the Company is adopted for leased assets of finance leasetransactions where ownership of leased assets is transferred to the lessee.
The straight-line method, in which the lease period is utilized as the useful life assuming the residual value is zero, is adopted for 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 forgeneral receivables, and by individually considering the collectibility for certain doubtful receivables including loans with potential default toprepare for possible loan losses including trade receivables and loans receivable.
2) Provision for warranties for completed construction
The provision for warranties for completed construction is recorded at an amount based on the estimated compensation amount regarding
the completed construction contracts for the consolidated fiscal year under review 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 forpossible losses from construction contracts that the Group has received orders thereof.
4) Provision for bonuses
The provision for bonuses is recorded at an amount of possible disbursement corresponding to the consolidated fiscal year under review basedon the estimated amount to provide for bonuses to employees.
5) Provision for bonuses for directors
The provision for bonuses for directors is recorded at an amount of possible disbursement corresponding to the consolidated fiscal year underreview based on the estimated amount to provide for bonuses to eligible directors.
(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 a certain period (10 years) within the
average remaining service period of employees at the time of recognition, commencing from the consolidated fiscal year following the recognition.
The prior service cost is amortized by the straight-line method over a certain period (10 years) within the average remaining service period of
employees at the time of recognition, commencing from the consolidated fiscal year following the recognition.
3) Adoption of the simplified method for small and medium-sized entities
For the calculation of retirement benefit liability and retirement benefit expenses, the consolidated subsidiaries of the Company 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 treatedas projected benefit obligation.
(6) Translation of significant assets and liabilities denominated in foreign currencies into Japanese yen
Monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the spot exchange rates on the
consolidated fiscal year-end date, and differences arising from such translation are charged to income.
The asset and liability accounts of the overseas subsidiaries are translated into Japanese yen at the spot exchange rates as of the consolidated
fiscal year-end date. The revenue and expense accounts of the overseas subsidiaries are translated into Japanese yen based on the averageexchange rate during the consolidated fiscal year under review, and differences arising from such translation are included in “Foreign currencytranslation adjustment” and “Non-controlling interests” as separate components of “Net assets.”

58

ANNUAL REPORT 2022

(7) Recognition standards for significant revenues and expenses
The principal performance obligation of the Company and its consolidated subsidiaries is to perform and deliver construction work related toconstruction contracts with customers. For construction contracts, except for construction contracts with very short durations, the Company andits consolidated subsidiaries deem that performance obligations are satisfied as the construction progresses, and recognize revenue dependingon the progress of performance obligations, as the control is transferred over a certain period of time.
The progress of construction is calculated based on the proportion of the actual cost incurred against the estimated total cost of construction(input method), since the accrual of cost is judged to be an appropriate indicator of the progress of construction. For construction projects forwhich a reasonable estimate of the progress of completion toward satisfaction of performance obligations cannot be made, the cost recovery
method is applied.
The consideration for transactions is received primarily in stages over the term of the contract as progress is made in satisfying performanceobligations, with the balance due generally within approximately one year after all performance obligations are satisfied.
(8) Scope of cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows comprise cash on hand, bank deposits available for withdrawal on demand
and readily convertible short-term investments with maturities of three months or less, which are exposed to minor risk of fluctuation in value.
(9) Other items of significance concerning the preparation of consolidated financial statements
1) Application of consolidated tax return system
The consolidated tax return system is applied.
2) Application of tax effect accounting relating to the transition from the consolidated tax return system to the group tax sharing system
As for the items subject to the transition to the group tax sharing system established under the Act for Partial Amendment to the Income Tax
Act, etc., (Act No. 8 of 2020), as well as to the review of the non-consolidated tax return system in association therewith, the Company and its
domestic consolidated subsidiaries have not applied the provisions of Section 44 of the Implementation Guidance on Tax Effect Accounting(ASBJ Guidance No. 28 issued on February 16, 2018), but applied the provisions of the Income Tax Act before the amendment to the amountsof deferred tax assets and deferred tax liabilities, by virtue of Section 3 of the Practical Solution on the Treatment of Tax Effect Accounting for
the Transition from the Consolidated Taxation System to the Group Tax Sharing System (PITF No.39 issued on March 31, 2020).
From the beginning of the following consolidated fiscal year, the Company and its domestic consolidated subsidiaries plan to apply the “Practical
Solution on the Accounting and Disclosure Under the Group Tax Sharing System” (PTIF No.42 issued on August 12, 2021), which provides foraccounting treatment and disclosure of corporate and local income taxes and tax effect accounting in the case where a group tax sharing
system is applied.
(Significant Accounting Estimates)
Estimates of total construction revenue and total cost of construction work for a construction contract to be satisfied over a certain period of time
1. Amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
Net sales from construction contracts to be satisfied over a certain period of time: ¥57,720 million ($471,611 thousand)
2. Calculation method of the amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
For construction contracts, revenues related to performance obligations that are satisfied over a certain period of time are measured basedon the progress of completion of construction, which are calculated based on the proportion of the actual cost incurred by the end of theconsolidated fiscal year under review against the estimated total cost of construction. Estimates of total construction revenue and total cost of
construction work are based on the statement of working budget prepared for each construction.
In the Group, construction work managers identify changes in situation after commencement of the construction appropriately and on atimely basis through interviews as well as inspections of construction-related documents including the statement of working budget, which
are reflected in the calculation of revenues related to performance obligations that are satisfied over a certain period of time. Constructions
believed to have significant impact on the business performance are under intensive management involving executives both at branches andheadquarters. Through these management initiatives, the Group makes an effort to reduce events with potential significant impact on the
consolidated financial statements for the following consolidated fiscal year.
3. Major assumptions used for the calculation of amounts recorded in the consolidated financial statements for the consolidated fiscal year under review
For construction contracts, estimates of total construction revenue and total cost of construction work, in which the performance obligations
are satisfied over a certain period of time, involve certain assumptions and determination by the construction site supervisors with construction
expertise as well as experience in executing construction works. In addition, since construction works generally tend to extend over a certain
period of time, they may involve situations such as design changes or revisions during the works, extension of the work period due to adverse
weather, and fluctuations in material or labor costs.
While major assumptions are likely to be affected in the event of lengthy interruption of construction works due to COVID-19, impact from thisfactor is believed to be insignificant at present.

ANNUAL REPORT 2022

59

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

4. The impact on the consolidated financial statements for the following consolidated fiscal year
Estimates of total construction revenue and total cost of construction work stated in 3. Major assumptions may, depending on the revision inaccordance with the progress of construction, have impact on the consolidated financial statements for the following consolidated fiscal year.
(Application of the Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; “Fair Value Measurement
Standard”) and other standards from the beginning of the consolidated fiscal year under review, and will prospectively apply the new accounting
policies stipulated by the Fair Value Measurement Standard, etc., in accordance with the transitional treatment provided in Paragraph 19 of the
Fair Value Measurement Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4,2019). There is no impact on the consolidated fiscal year under review.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; “Revenue Recognition
Standard”) and other standards from the beginning of the consolidated fiscal year under review. The Company recognizes revenue when control
of a promised good or service is transferred to a customer in an amount that reflects the consideration to which the Company expects to beentitled in exchange for those goods and services. Accordingly, mainly for revenues from the construction business, although previously thepercentage-of-completion method was applied to works for which the outcome of the construction activity is deemed certain with regard
to the portion of construction in progress and the completed-contract method was applied to other works, revenue is now recognized overa period of time as performance obligations are satisfied for all construction projects. In addition, the progress of completion of construction
toward satisfying performance obligations is estimated by the input method using costs incurred.
The Company applies the Revenue Recognition Standard, etc. in accordance with the transitional treatment provided for in the proviso toParagraph 84 of the Revenue Recognition Standard. The cumulative impact of retrospectively applying the new accounting policies to priorperiods is adjusted to retained earnings at the beginning of the consolidated fiscal year under review, with the new accounting policies applied
from the beginning balance. However, the Company applies the method provided for in Paragraph 86 of the Revenue Recognition Standard,
contract modifications that occurred prior to the beginning of the consolidated fiscal year under review were accounted for based on the termsof the contract after reflecting all contract modifications, with the cumulative impact adjusted to retained earnings at the beginning of theconsolidated fiscal year under review.
As a result of this change, during the consolidated fiscal year under review, net sales increased by ¥658 million ($5,383thousand) and cost of
sales increased by ¥632 million ($5,165thousand), and operating profit, ordinary profit and profit before income taxes increased by ¥26 million($218thousand), respectively. In addition, balance of retained earnings at beginning of period increased by ¥102 million ($836thousand).
In line with the application of the Revenue Recognition Standard, etc., “notes receivable, accounts receivable from completed construction
contracts and other,” which was presented under “current assets” in the consolidated balance sheets of the previous fiscal year, has been changed
to “notes receivable, accounts receivable from completed construction contracts and other and contract assets.” However, in accordance withthe transitional treatment set forth in Paragraph 89-2 of the Revenue Recognition Standard, figures for the previous fiscal year have not been
reclassified based on the new presentation method.
The impact on per share information is as described in the relevant section.
(Additional Information)(Accounting estimates related to the impact of the spread of the COVID-19 pandemic)
Assuming that the impact of the COVID-19 pandemic will continue for at least a certain length of time, the Group reflects these accounting
estimates in its accounting treatments based on the premise that it will continue construction works in order to maintain economic activity.
However, the impact of the COVID-19 pandemic contains numerous uncertainties, and they could impact the Group’s financial condition andoperating results of the following fiscal year if the business environment changes significantly due to various factors.

(Consolidated Balance Sheets)*1 Accumulated depreciation of property, plant and equipment
As of March 31
2021

2022

2022

¥7,164 million¥6,690 million$54,661 thousand

2 Contingent liabilities
The Company guarantees the contractual obligations of the subsidiaries’ and affiliates’ construction contracts.
As of March 31
2021
Contractual obligations(PT NITTOCCONSTRUCTION INDONESIA)¥142 million(IDR 18,812
million)¥172 million(IDR 20,352 million)$1,413 thousand

As of March 31
2021
Other

¥2 million

2022

2022

¥2 million$16 thousand*4 Presentation of inventories and provision for loss on construction contracts
Fiscal year ended March 31, 2021 (As of March 31, 2021)
Both the costs on construction contracts in progress and the provision for loss on construction contracts, which are related to construction contracts
that are expected to generate losses, are presented without offsetting each other.
Of the costs on construction contracts in progress relating to construction contracts that are expected to generate losses, the amount corresponding
to the provision for loss on construction contracts is ¥78 million.
Fiscal year ended March 31, 2022 (As of March 31, 2022)
Not applicable.
5 Commitment line agreements
The Company has entered into commitment line agreements with our four banks to facilitate efficient fund procurement of working capital.
The unused balance of the borrowings relative to the commitment line agreements as of March 31 was as follows:
As of March 31

Balance of executed loans
Unused balance

ANNUAL REPORT 2022

2022

*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:

Total amount of the commitment line

60

2022

Millions of yen

Thousands of U.S.Dollars

2021

2022

2022

2,200

2,200

17,975

–

–

2,200

2,200

17,975

ANNUAL REPORT 2022

61

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements(Consolidated Statements of Income)*1 Provision for loss on construction contracts included in the cost of sales of completed construction contracts*6 Impairment losses
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
For the fiscal year ended March 31, 2021, the Company reported impairment losses for the following asset group.

Fiscal year ended March 31
2021

2022

2022

¥285 million¥32 million$263 thousand*2 Major expense items of selling, general and administrative expenses and their amounts were as follows:
Millions of yen

Fiscal year ended March 31

2022

2022

35

33

270

Employees’ salaries and allowances

3,064

3,049

24,919Provision for bonuses

574

448

3,662

Retirement benefit expenses

257

253

2,073

Provision of allowance for doubtful accounts

(10)

(21)

(174)

Provision for bonuses for directors (and other officers)

Type

Location

Assets planned
to be sold

Buildings and structures,and landSendai-shi, Miyagi

41

Idle assets

Buildings and structures,and fixtures

Futaba-gun, Fukushima

38

Idle assets

Buildings and structures,fixtures, and intangible assets(leasehold interests in land)

Setagaya-ku,Tokyo

131

Thousands of U.S.Dollars

2021*3 Research and development expenses included in general and administrative expenses(Breakdown of impairment losses recognized)
Millions of yen

2021

2022

2022

¥336 million¥391 million$3,197 thousand

Buildings and structures*4 The breakdown of gain on sale of non-current assets was as follows:
Millions of yen

Thousands of U.S.Dollars

2021

2022

2022

Machinery, vehicles, tools, furniture and fixtures

15

0

0

Total

15

0

0

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

62

Millions of yen

Thousands of U.S.Dollars

2021

2022

2022

Buildings and structures

0

8

61

Machinery, vehicles, tools, furniture and fixtures

3

0

5

Land

–

2

17

Intangible assets (software)

–

0

8

Total

3

11

93

ANNUAL REPORT 2022

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

Fiscal year ended March 31

Fiscal year ended March 31

Impairment losses

Use

142

Fixtures

0

Land

23

Intangible assets(leasehold interests in land)

44

Total

211

(Background)
The Company, at its Board of Directors meeting, resolved to sell and eliminate said non-current assets. Consequently, the Company reported an
impairment loss because the value of said assets became lower than their recoverable amounts.
(Calculation method of recoverable amounts)
Recoverable amounts for assets planned to be sold are measured by using the net selling price, and the net selling prices are determined basedon their appraisal value assessed by real estate appraisers. Idle assets are valued at their memorandum value, by taking into consideration theireffective disposal value.
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable.

ANNUAL REPORT 2022

63

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

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

2. Dividends(1) Amount of dividends paid

Millions of yen

Fiscal year ended March 31

2021

Thousands of U.S.Dollars
2022

2022

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

178

83

679

Amount of reclassification

–

(372)

(3,041)

Before tax-effect adjustment

178

(288)

(2,361)

Amount of tax-effect equivalent

(54)

88

722

Valuation difference on available-for-sale securities

124

(200)

(1,638)Foreign currency translation adjustment
Accrued in the fiscal year

69

57

473

Foreign currency translation adjustment

69

57

473

Remeasurements of defined benefit plans

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 25, 2020

Commonshares¥1,167 million

Retainedearnings¥28.00March 31,2020

June 26,
2020

Board of Directors meeting held on
November 6, 2020

Commonshares¥333 million

Retainedearnings¥8.00

September 30,
2020

November 30,
2020(2) Dividends for which the record date is during the consolidated fiscal year under review but for which the effective date is after the end of theconsolidated fiscal year under review
Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 25, 2021

Commonshares¥1,167 million

Retainedearnings¥28.00March 31,2021

June 28,
2021

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
1. Class and total number of issued shares and of treasury shares

Accrued in the fiscal year

32

(0)

(7)

Amount of reclassification

60

54

441

Fiscal year ended March 31, 2022
Issued shares

Before tax-effect adjustment

92

53

433

Amount of tax-effect equivalent

(28)

(17)

(141)

Remeasurements of defined benefit plans, net of
tax

63

35

291

Total other comprehensive income

256

(106)

(872)

(Consolidated Statements of Changes in Net Assets)
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
1. Class and total number of issued shares and of treasury shares

Number of sharesat the beginning

Increase in numberof shares

Decrease in numberof shares

Number of sharesat the end

Common shares

43,919,291–

2,210,924

41,708,367

Total

43,919,291–

2,210,924

41,708,367

Common shares

2,210,924

1,321

2,210,924

1,321

Total

2,210,924

1,321

2,210,924

1,321

Treasury shares

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

Number of sharesat the beginning

Increase in
number of shares

Decrease in
number of shares

Number of sharesat the end

Common shares

43,919,291––

43,919,291

Total

43,919,291––

43,919,291

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 25, 2021

Commonshares¥1,167 million($9,541 thousand)

Retainedearnings¥28.00March 31,2021

June 28,
2021

Board of Directors meeting held on
November 5, 2021

Commonshares¥333 million($2,726 thousand)

Retainedearnings¥8.00

September 30,
2021

November 30,
2021

Fiscal year ended March 31, 2021
Issued shares

Treasury shares
Common shares

2,209,511

1,463

50

2,210,924

Total

2,209,511

1,463

50

2,210,924

Notes:
1. The increase in number of treasury shares represents the increase from the purchase of less-than-one-unit shares.
2. The decrease in number of treasury shares represents the decrease due to sales of the Company’s own shares in response to the request for
additional purchase of less-than-one-unit shares by shareholders.

2. Dividends(1) Amount of dividends paid

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

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 24, 2022

Commonshares¥1,334 million($10,904 thousand)

Retainedearnings¥32.00March 31,2022

June 27,2022

3. The Company cancelled 2,210,924 shares of treasury shares on May 31, 2021, by resolution of the Board of Directors meeting held on May 7, 2021.
As a result, capital surplus, retained earnings, and treasury shares decreased by ¥269 million ($2,198 thousand), ¥788 million ($6,439 thousand), and¥1,057 million ($8,638 thousand), respectively, for the consolidated fiscal year under review, and capital surplus, retained earnings, and treasury
shares were at ¥1,753 million ($14,324 thousand), ¥22,560 million ($184,336 thousand), and ¥0 million ($7 thousand), respectively, as of the end of
the consolidated fiscal year under review.

64

ANNUAL REPORT 2022

ANNUAL REPORT 2022

65

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

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

Millions of yen
2021

2022

2022

Cash and deposits

17,722

20,723

169,321

Cash and cash equivalents

17,722

20,723

169,321

Finance lease transactions that do not transfer ownership
1. Details of leased assets
Property, plant and equipment
Consist mainly of machinery and equipment.
2. Depreciation method of leased assets
As described in the “(Significant Items on Basis for Preparation of Consolidated Financial Statements)
4. Accounting Policies (2) Depreciation methods of major depreciable assets.””(Financial Instruments)
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
1. Status of Financial Instruments(1) Policies on financial instruments
The Group holds a policy to procure working capital, which is necessary to pursue business purposes, in the form of borrowings from banks
and invests temporary surplus funds in short-term deposits, etc. The Group utilizes derivatives within the limit of actual demand and not for
speculative purposes. In the consolidated fiscal year under review, no derivative transactions were utilized.
(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts and other, and electronically recorded monetary claims - operating,which are trade receivables, are exposed to the credit risk of the respective counterparties. Investment securities are mainly stocks of companies
with which the Company holds business relationships, and are exposed to market price fluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally entail the concentrated due date forpayments and are exposed to liquidity risk. Borrowings as funds for capital investments are exposed to market price fluctuation risk (interest raterisk) and liquidity risk.
(3) Risk management system for financial instruments
1) Management of credit risk (default risk of the counterparties)
The Group regularly monitors notes receivable, accounts receivable from completed construction contracts and other, and electronicallyrecorded monetary claims - operating regarding main counterparties at the relevant departments/sections in accordance with the Credit
Exposure Management Rules and the Credit Management Manual. In addition to the management of credit balances by counterparty, theGroup works to early grasp and reduce recovery concerns due to the aggravation of financial positions at the counterparties.
2) Management of market risk (market price fluctuation risk)
The Group regularly checks the current market value of shares included in the category of investment securities and makes efforts tocomprehend the financial positions of the issuers (counterparties) and continuously reviews the holding status of such investment securities
by taking into account market conditions and the relationship with the respective counterparties.
3) Management of liquidity risk (the risk of non-repayment on the due date) relating to fund procurement
At the Group, the Accounting Department prepares and renews the cash-flow plan based on the reports from the respective departments/
sections. The department also manages liquidity risk with measures such as the maintenance of liquidity on hand and entering into
commitment line agreements with our banks.

ANNUAL REPORT 2022

(Millions of yen)Thousands of U.S.Dollars(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.”

66

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, 2021, 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(1) Cash and deposits(2) Notes receivable, accounts receivable from completed
construction contracts and other, and electronicallyrecorded monetary claims - operating(3) Investment securities
Available-for-sale securities
Total assets(1) Notes payable, accounts payable for construction
contracts and other(2) Short-term borrowings
Total liabilities
Derivative transactions

Market value

Difference

17,722

17,722–

22,58822,588

–

828

828

–

41,13941,13911,33911,339

–

278

278

–

11,617

11,617––––

Notes:
1. Calculation method of the market value of financial instruments, as well as securities and derivative transactions
Assets(1) Cash and deposits and (2) Notes receivable, accounts receivable from completed construction contracts and other, and electronically recordedmonetary 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 theirmarket 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 theirmarket values.
(2) Short-term borrowings
As these instruments are settled within a short term and their market values and book values are similar, their book values are assumed as theirmarket values.
Derivative transactions
The Group conducts no derivative transactions.

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

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

Available-for-sale securities (unlisted stocks)

145

The above securities are not included in “(3) Investment securities” because they have no market prices and it is deemed extremely difficult tomeasure their market values.

ANNUAL REPORT 2022

67

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

3. Redemption schedules for monetary receivables and securities with maturity dates after the consolidated balance sheet date (March 31, 2021)(Millions of yen)

Withinone year
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts and other, and electronicallyrecorded monetary claims - operating
Investment securities
Available-for-sale securities with maturity dates
Total

Over one year
and within
five years

Over five years
and within
10 years

Over 10 years

17,722–––

22,588

–

–

–

–

–

–

–

40,310–––2. Market Values of Financial Instruments
The carrying value in the consolidated balance sheets, the market value and the difference thereof as of March 31, 2022, were as follows. Shares,
etc. without market value are not included in the table below (Refer to Note 2). Notes on cash are omitted. Notes for deposits, notes receivable,accounts receivable from completed construction contracts and other and contract assets, electronically recorded monetary claims - operating,and notes payable, accounts payable for construction contracts and other are also omitted, as they are settled within a short term and their market
values approximate the book values.
(Millions of yen)

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

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
1. Status of Financial Instruments(1) Policies on financial instruments
The Group holds a policy to procure working capital, which is necessary to pursue business purposes, in the form of borrowings from banks
and invests temporary surplus funds in short-term deposits, etc. The Group utilizes derivatives within the limit of actual demand and not for
speculative purposes. In the consolidated fiscal year under review, no derivative transactions were utilized.
(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts and other, and electronically recorded monetary claims - operating,which are trade receivables, are exposed to the credit risk of the respective counterparties. Investment securities are mainly stocks of companies
with which the Company holds business relationships, and are exposed to market price fluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally entail the concentrated due date forpayments and are exposed to liquidity risk. Borrowings as funds for capital investments are exposed to market price fluctuation risk (interest raterisk) and liquidity risk.
(3) Risk management system for financial instruments
1) Management of credit risk (default risk of the counterparties)
The Group regularly monitors notes receivable, accounts receivable from completed construction contracts and other, and electronicallyrecorded monetary claims - operating regarding main counterparties at the relevant departments/sections in accordance with the Credit
Exposure Management Rules and the Credit Management Manual. In addition to the management of credit balances by counterparty, theGroup works to early grasp and reduce recovery concerns due to the aggravation of financial positions at the counterparties.
2) Management of market risk (market price fluctuation risk)
The Group regularly checks the current market value of shares included in the category of investment securities and makes efforts tocomprehend the financial positions of the issuers (counterparties) and continuously reviews the holding status of such investment securities
by taking into account market conditions and the relationship with the respective counterparties.
3) Management of liquidity risk (the risk of non-repayment on the due date) relating to fund procurement
At the Group, the Accounting Department prepares and renews the cash-flow plan based on the reports from the respective departments/
sections. The department also manages liquidity risk with measures such as the maintenance of liquidity on hand and entering into
commitment line agreements with our banks.

Market value

271

271

271

271

–

–

Difference––(Thousands of U.S.Dollars)

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

Market value

Difference

2,220

2,220

–

2,220

2,220

–

–

–

–

Notes:
1. Securities and derivative transactions(1) Securities and investment securities
Notes on securities by holding purpose are as follows:
1) Held-to-maturity debt securities are not held.
2) The amount of available-for-sale securities sold during the consolidated fiscal year under review was ¥645 million ($5,274thousand), and thegain on sales was ¥372 million ($3,040thousand). Acquisition cost or amortized cost, amounts in the consolidated balance sheets and theirdifferences by type of available-for-sale securities are as follows.
(Millions of yen)Type
Shares with amounts in the consolidatedbalance sheets exceeding acquisition costor amortized cost
Shares with amounts in the consolidatedbalance sheets lower than acquisition costor amortized cost
Total

Acquisition cost or
amortized cost

Amounts in the
consolidatedbalance sheets

Differences

Shares

74

243

168

Shares

35

28

(6)

110

271

161
(Thousands of U.S.Dollars)Type
Shares with amounts in the consolidatedbalance sheets exceeding acquisition costor amortized cost
Shares with amounts in the consolidatedbalance sheets lower than acquisition costor amortized cost
Total

Acquisition cost or
amortized cost

Amounts in the
consolidatedbalance sheets

Differences

Shares

612

1,986

1,374

Shares

287

233

(53)

899

2,220

1,320

3) There were no shares for which the holding purpose changed during the consolidated fiscal year under review.

68

ANNUAL REPORT 2022

ANNUAL REPORT 2022

69

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements(2) Derivative transactions
The Group conducts no derivative transactions.

(Securities)
Fiscal year ended March 31, 2021 (As of March 31, 2021)
1. Held-to-maturity debt securities (As of March 31, 2021)
Not applicable

2. Shares, etc. without market value
Classification

Carrying value in the consolidated balance sheets

Available-for-sale securities (unlisted stocks)¥145 million$1,190 thousand

2. Available-for-sale securities (As of March 31, 2021)(Millions of yen)

Carrying value inthe consolidatedbalance sheets

The above securities are not included in “Investment securities.”
3. Breakdown, etc. of fair values of financial instruments by level
The Company has classified fair values of financial instruments into the following three levels according to the observability and materiality of
inputs used for fair value measurement.
Level 1 Fair Values: Fair values measured by (unadjusted) quoted prices of the identical assets or liabilities in active markets
Level 2 Fair Values: Fair values measured by directly or indirectly observable inputs other than those classified in Level 1
Level 3 Fair Values: Fair values measured by material but unobservable inputs
In cases where multiple inputs with a material impact on fair value measurement are used, fair value is classified into the level to which the
input with the lowest priority in fair value measurement belongs.
(1) Financial instruments carried at fair value in the consolidated balance sheet
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)Classification
Investment securities

Fair Value
Level 1

Level 2

Leve 3

Total

Difference

812

358

453

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

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

Other

–

–

–

Other

–

–

–

812

358

453

16

20

(3)

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

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

Available-for-sale securities
StocksTotal assets

271

–

–

271

271

–

–

271

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(Thousands of U.S.Dollars)

Classification
Investment securities

Acquisition cost

Fair Value
Level 1

Level 2

Leve 3

Total

2,220

–

–

2,220

2,220

–

–

2,220

–

–

–

Subtotal

16

20

(3)

Total

828

378

450

Other

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

70

ANNUAL REPORT 2022

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

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

Available-for-sale securities (unlisted stocks)

145

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2020 to March 31, 2021)
Not applicable

ANNUAL REPORT 2022

71

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

Fiscal year ended March 31, 2022 (As of March 31, 2022)
1. Held-to-maturity debt securities (As of March 31, 2022)
Not applicable(Thousands of U.S.Dollars)
Carrying value inthe consolidatedbalance sheets

2. Available-for-sale securities (As of March 31, 2022)
Carrying value inthe consolidatedbalance sheets

Acquisition cost

243

74

Corporate bonds

–
–

168

–
–

–

–

–

–

–

–

243

74

168

(2) Securities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost
35

(6)

Bonds
National government bonds, local
government bonds, etc.

–

–

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

1,986

612

1,374

233

287

(53)

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

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

Other

–

–

–

Other

–

–

–

–

Subtotal

233

287

(53)

Total

2,220

899

1,320

Corporate bonds

–

–

–

Other

–

–

–

–

–

–

Subtotal

28

35

(6)

Total

271

110

161

Other

National government bonds, local
government bonds, etc.

Shares

–

–

28

1,374

Bonds

Other

Shares612

Difference

Other
Subtotal

1,986(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost

Bonds
National government bonds, local
government bonds, etc.

Difference(Millions of yen)

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

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2021 to March 31, 2022)(Millions of yen)Type
SharesNote: Shares, etc. without market value
Classification
Available-for-sale securities (unlisted stocks)

Sales amount

Total gain on sales

Total loss on sales

645

372

–

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Bonds
Carrying value in the consolidated balance sheets¥145 million$1,190 thousand

Other
Total

–

–

–

645

372

–
(Thousands of U.S.Dollars)Type
Shares
Bonds
National government bonds, local
government bonds, etc.
Corporate bonds
Other
Other
Total

72

ANNUAL REPORT 2022

Sales amount

Total gain on sales

Total loss on sales

5,274

3,040

–

–

–

–

–

–

–

–

–

–

–

–

–

5,274

3,040

–

ANNUAL REPORT 202273

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements(Derivative Transactions)Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
1. Derivatives for which hedge accounting is not applied
Not applicable as no derivative transactions are utilized.

(4) Retirement benefit expenses and the breakdown of the amounts thereof
Fiscal year ended March 31

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
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.

Millions of yen

Thousands of U.S.Dollars
2022

2022

4,069

4,162

34,013Service cost

232

232

1,902

Interest cost

18

20

167

Accrued amount of actuarial differences

5

0

7

Accrued amount of prior service cost

(37)

–

–

(125)

(207)

(1,699)

4,162

4,209

34,392

18

20

167

70

60

495

Amortization of prior service cost

(10)

(6)

(53)

Retirement benefit expenses relative to the defined
benefit plans

311

307

2,512

Fiscal year ended March 31

74

ANNUAL REPORT 2022

Thousands of U.S.Dollars

2021

2022

27

(6)

(53)

65

59

487

92

53

433

Actuarial differences
Total

2022

(6) Remeasurements of defined benefit plans (accumulated)
The breakdown of items (before deducting tax-effect amounts) reported under remeasurements of defined benefit plans (accumulated) is asfollows:
Millions of yen
2021

Thousands of U.S.Dollars
2022

2022

Unrecognized prior service cost

43

37

305

Unrecognized actuarial differences

(179)

(120)

(981)

(135)

(82)

(676)

Total

(7) Matters regarding plan assets
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Not applicable
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable

As of March 31(3) Reconciliation of the ending balance of projected benefit obligations and plan assets, and the retirement benefit liability and the net defined
benefit asset in the consolidated balance sheets

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

Millions of yen

Prior service cost

Discount rate

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable

Projected benefit obligations under unfunded plans
Net carrying value in the consolidated balance sheets ofrelevant liabilities and assets
Retirement benefit liability

1,902(8) Matters regarding the basis for actuarial calculations
Major basis for actuarial calculations (presented in weighted average figures)(2) Reconciliation of the beginning/ending balance of plan assets
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Not applicable

As of March 31

2022

Interest cost

As of March 31

2021

Retirement benefits paid

232

Amortization of actuarial differences

2. Defined benefit plans(1) Reconciliation of the beginning/ending balance of projected benefit obligations

Ending balance of projected benefit obligations

2022

232

(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:(Retirement Benefits)
1. Outline of adopted employee retirement benefit plans
The Company and its consolidated subsidiaries have adopted unfunded retirement benefit plans to provide for retirement benefits for theiremployees. Half of the retirement benefit plans are defined benefit plans and the remaining portion are defined contribution plans.
The defined benefit plans are lump-sum severance payment plans to provide retirement benefits by means of a point scheme based on service period.
In the defined contribution plans, the contribution is clearly sectionalized by individual and the pension benefit amount is determined based on
the total of the contributions and the return on plan assets thereof.
In addition to the above, the Company and its consolidated subsidiaries are affiliated with the multiemployer plans of the Japan SOGO Employees’
Pension Fund (former Japan Geotechnical Consultants Employees’ Pension Fund). As the rational computation of plan assets cannot be ensured forthe multiemployer pension plans, accounting is processed in a similar manner as that for the defined contribution plans.
At the consolidated subsidiaries, retirement benefit liability and retirement benefit expenses are calculated by the simplified method. They areincluded in the following relevant items because of their immateriality in the consolidated financial statements.

Beginning balance of projected benefit obligations

Thousands of U.S.Dollars

2021

Service cost

2. Derivatives for which hedge accounting is applied
Not applicable as no derivative transactions are utilized.

Fiscal year ended March 31

Millions of yen

Millions of yen

Thousands of U.S.Dollars

2021

2022

2022

4,162

4,209

34,392

4,162

4,209

34,392

4,162

4,209

34,392

4,162

4,209

34,392

2021

2022

0.50%

0.59%

3. Defined contribution plans
The amount to be contributed by the Company and its consolidated subsidiaries under the defined contribution plans was ¥141 million for the
fiscal year ended March 31, 2021, and ¥142 million ($1,165thousand) for the fiscal year ended March 31, 2022.

ANNUAL REPORT 2022

75

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

4. Multiemployer plans
The amount to be contributed under the multiemployer plans of the Japan SOGO Employees’ Pension Fund (former Japan GeotechnicalConsultants Employees’ Pension Fund), of which the accounting is processed in the same manner as that for the defined contribution plans, was¥148 million for the fiscal year ended March 31, 2021, and ¥156 million ($1,281thousand) for the fiscal year ended March 31, 2022.

2. The breakdown of items causing the difference between the effective statutory tax rate and the effective income tax rate after the adoption of taxeffect accounting

Effective statutory tax rate
Millions of yen

Thousands of U.S.Dollars

2021

2022

2022

Plan assets

20,345

21,605

176,528

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

16,16017,547

143,372

Net amount

4,185

4,057

33,156(3) Supplementary explanation
The major factor of the net amount in Item (1) above was the general reserve (¥4,185 million for the fiscal year ended March 31, 2021, and ¥3,382
million ($27,636thousand) for the fiscal year ended March 31, 2022).
The ratios in Item (2) above do not agree with the Group’s actual ratios of contributions.
(Stock Options)Not applicable

Millions of yen

Thousands of U.S.Dollars
2022

2022

Deferred tax assets
Real estate for sale

4

4

37

Accrued enterprise tax

77

43

353

Provision for bonuses

460

354

2,895

Allowance for doubtful accounts

9

7

59

Provision for warranties for completed construction

7

7

64

Provision for loss on construction contracts

86

51

421

Non-current assets (Impairment losses)

87

61

506

Defined contribution pension benefits payable

3

3

29

1,275

1,290

10,542

33

32

266

Retirement benefit liability
Unrealized gains
Asset retirement obligation

18

20

165

Other

266

238

1,944

2,331

2,115

17,288

(66)

(63)

(517)

2,265

2,052

16,770

(137)

49

404

Total of deferred tax liabilities

(137)

49

404

Net deferred tax assets

2,127

2,003

16,366

Subtotal of deferred tax assets
Valuation reserve
Total of deferred tax assets
Deferred tax liabilities
Valuation difference on available-for-sale securities

76

ANNUAL REPORT 2022

30.6

30.6

Non-deductible expenses such as entertainment
expenses

0.2

0.6

Per capita inhabitant tax

2.3

2.7

Exclusion from revenues such as dividend income

(0.0)

(0.2)

Valuation reserve

(0.0)

(0.1)

Special deduction of income tax

(1.7)

–

Accumulated earnings tax

1.1–

Tax difference from overseas subsidiary

0.1

0.2

Other

0.4

(0.4)

Effective income tax rate after the adoption of taxeffect accounting

33.1

33.5

(Asset Retirement Obligation)
End of fiscal year ended March 31, 2021 (As of March 31, 2021)
This information is omitted due to its immateriality.
End of fiscal year ended March 31, 2022 (As of March 31, 2022)
This information is omitted due to its immateriality.

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

2021

(%)

(Reconciliation)(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, 2021: 16.17% (As of March 31, 2020)
Fiscal year ended March 31, 2022: 16.16% (As of March 31, 2021)

As of March 31

2022
(%)

(1) Most recent plan assets reserved under the multiemployer plans
As of March 31

2021

Fiscal year ended March 31(Revenue Recognition)
1. Disaggregation of revenue from contracts with customers
The Group classifies sources of its revenues based on the type of services provided to customers into “foundation work,” “civil engineering” and“geological consulting.”
Foundation work: Ground work for constructing dam, etc., ground improvement, slope protection and repair Civil engineering: General civilengineering, various shield constructions, etc.
Geological consulting: Geological research, survey, etc.
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Construction business(Millions of yen)Foundation work

62,829Civil engineering
Geological consulting
Other
Revenue from contracts with customers

Other businesses(Millions of yen)

Total
(Millions of yen)–

62,829

1,899

–

1,899

329

–

329

823

194

1,017

65,882

194

66,076

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Construction business(Thousands of
U.S. Dollars)

–

Total
(Thousands of
U.S. Dollars)
513,357

15,521–

15,521

2,692

–

2,692

Foundation work513,357

Civil engineering
Geological consulting
Other
Revenue from contracts with customers

Other businesses(Thousands of
U.S. Dollars)

6,724

1,588

8,313

538,296

1,588

539,884

ANNUAL REPORT 2022

77

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements

2. Basic information for understanding revenue from contracts with customers
Basic information for understanding revenue is as stated in “Significant Items on Basis for Preparation of Consolidated Financial Statements, 4.
Accounting Policies, (7) Recognition standards for significant revenues and expenses.”
3. Reconciliation of satisfaction of performance obligations within contracts with customers and cash flows arising from such contracts, and theamount and timing of revenue arising from existing contracts with customers at the end of the consolidated fiscal year under review expected to berecognized in and after the following consolidated fiscal year
(1) Contract asset and contract liability balances

Receivables arising fromcontracts with customers
Notes receivable
Accounts receivable from completed
construction contracts
Accounts receivable(Millions of yen)

At the beginning of the fiscal year
ended March 31, 2022
(April 1, 2021)

Fiscal year ended March 31, 2022
(March 31, 2022)

1,971

1,917

12,933

11,249

12

16

Total

14,916

13,183Contract assets (Note 1)

5,142

4,750

Contract liabilites (Note 2)

432

593
(Thousands of U.S.Dollars)

At the beginning of the fiscal year
ended March 31, 2022
(April 1, 2021)

Fiscal year ended March 31, 2022
(March 31, 2022)

16,11015,666105,670

91,916

98

138

Total

121,879

107,721

Contract assets (Note 1)

42,01538,814Contract liabilites (Note 2)

3,536

4,852

Receivables arising fromcontracts with customers
Notes receivable
Accounts receivable from completed
construction contracts
Accounts receivable

Notes:
1. Contract assets are primarily rights to customers for revenues recognized based on the measurement of progress of completion in uncompleted
construction contracts and are included in “notes receivable, accounts receivable from completed construction contracts and other andcontract assets” under current assets in the consolidated balance sheets. The rights are reclassified to receivables when they are invoiced tocustomers and the rights of the Company and its consolidated subsidiaries become unconditional.
2. Contract liabilities are mainly advances received from customers on construction contracts and are included in “advances received on
construction contracts in progress” under current liabilities in the consolidated balance sheets. The performance obligations are satisfied inaccordance with the progress of construction and the contract liabilities are reclassified to revenue. Almost all of the contract liability balance asof the beginning of the consolidated fiscal year under review was recognized as revenue in the consolidated fiscal year under review.
(2) Transaction price allocated to the remaining performance obligations
The total amount of transaction price allocated to the remaining performance obligations as of the end of the consolidated fiscal year underreview was ¥42,746 million ($349,268 thousand), and the Company expects to recognize revenue for these remaining performance obligations
between one or two years upon satisfaction of such obligations.
(Segment Information, etc.)[Segment Information]
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, for which separate financial
information is available, and which are subject to regular reviews and evaluation by the Board of Directors in deciding the allocation 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.

78

ANNUAL REPORT 2022

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, for which separate financial
information is available, and which are subject to regular reviews and evaluation by the Board of Directors in deciding the allocation 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, 2021 (From April 1, 2020 to March 31, 2021)
1. Information by product and service
This information is omitted as net sales to outside customers in the classification of sole product/service exceed 90% of the net sales on the
consolidated statements of income.
2. Information by geographic region(1) Net sales
This information is omitted as net sales to outside customers in Japan exceed 90% of the net sales on the consolidated statements of income.
(2) Property, plant and equipment
This information is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of the amount of property, plant andequipment on the consolidated balance sheets.
3. Information by major customer
This information is omitted as there are no specific outside customers to whom net sales account for 10% or more of the net sales on the
consolidated statements of income.
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
1. Information by product and service
This information is omitted as net sales to outside customers in the classification of sole product/service exceed 90% of the net sales on the
consolidated statements of income.
2. Information by geographic region(1) Net sales
This information is omitted as net sales to outside customers in Japan exceed 90% of the net sales on the consolidated statements of income.
(2) Property, plant and equipment
This information is omitted as the amount of property, plant and equipment located in Japan exceeds 90% of the amount of property, plant andequipment on the consolidated balance sheets.
3. Information by major customerr
This information is omitted as there are no specific outside customers to whom net sales account for 10% or more of the net sales on the
consolidated statements of income.
[Information on Impairment Losses of Non-Current Assets by Reportable Segment]
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
The information is omitted as the reportable segment is solely the construction business.
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
The information is omitted as the reportable segment is solely the construction business.
[Information on Amortized Amount and Unamortized Balance of Goodwill by Reportable Segment]
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Not applicable
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable[Information on Gain on Bargain Purchase by Reportable Segment]
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Not applicable
Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)
Not applicable

ANNUAL REPORT 2022

79

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Consolidated Financial Statements[Related Party Information]
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(1) Parent company information
AN Holdings Corp.
AN Holdings is a wholly-owned subsidiary of ASO CORPORATION.
(2) Condensed financial information of significant affiliated companies
Not applicable[Schedule of Borrowings]
Classification
Short-term borrowings

Fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(1) Parent company information
AN Holdings Corp.
AN Holdings is a wholly-owned subsidiary of ASO CORPORATION.
(2) Condensed financial information of significant affiliated companies
Not applicable

Fiscal year ended March 31

2021

Net assets per share2022¥686.19

Basic earnings per share¥83.93
Diluted earnings per share is not disclosed
as no potential shares exist.

¥729.44$5.96¥79.83$0.65

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

Fiscal year ended March 31

Millions of yen
2021

Thousands of U.S.Dollars
2022

2022

2,271

–

–

–

–

3

31

0

1

–

–

–

–

–

–

–

–

5

46

4

37

–

–

–

–

–

–

–

–

287

2,349

4

37

–

–

Profit attributable to owners of parent
Amounts not attributable to common shareholders
Profit attributable to owners of parent regarding
common shares
Average number of common shares (Thousands ofduring the fiscal year
shares)

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, is reported on the consolidated balance sheets.
2. The repayment schedules within five years after the consolidated balance sheet date for lease obligations (excluding the current portion of leaseobligations) are as follows:

3,500

3,329

27,205

–

–

–

3,500

3,329

27,20541,709Lease obligations (Millions of yen)Classification

Basic earnings per share

41,707

2. As described in (Changes in Accounting Policies), the Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ
Statement No. 29, March 31, 2020) and other standards from the beginning of the consolidated fiscal year under review, following thetransitional treatment provided for in the proviso to Paragraph 84 of the Revenue Recognition Standard. As a result, for the consolidated fiscal
year under review, net assets per share and basic earnings per share increased by ¥2.46 and ¥0.45, respectively.

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

278

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

Classification

Notes: 1. The basis for calculation of “Basic earnings per share” is as follows:(Significant Subsequent Events)
Not applicable.

Current portion of long-term borrowings

Total(Per-Share Information)

Diluted earnings per share

Lease obligations (Thousands of U.S.Dollars)Over two years
and within
three years–

Over three years
and withinfour years–

Over four years
and within
five years–

Over one year
and within
two years
37

Over two years
and within
three years–

Over three years
and withinfour years–

Over four years
and within
five years–

Six months(From April 1, 2021 toSeptember 30, 2021)

Nine months(From April 1, 2021 to
December 31, 2021)(2)[other]
Quarterly data for the fiscal year ended March 31, 2022
Cumulative periods

Three months(From April 1, 2021 toJune 30, 2021)

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

Fiscal year ended
March 31, 2022
(From April 1, 2021 toMarch 31, 2022)
66,076

13,43829,811

48,018

335

1,414

3,353

4,986

214

938

2,229

3,329

5.13

22.49

53.46

79.83

Quarterly data for the fiscal year ended March 31, 2022

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

ANNUAL REPORT 2022

Over one year
and within
two years
4[Schedule of Asset Retirement Obligation]
This information is omitted due to its immateriality.

Cumulative periods

80

Beginning balance of theEnding balance of the
Averagefiscal year ended March 31, 2022 fiscal year ended March 31, 2022
Repaymentinterest rate
deadline
Millions
Thousands ofMillions
Thousands of(%)
of yenU.S.Dollarsof yenU.S.Dollars
–
–
–
–
–
–

Three months(From April 1, 2021 toJune 30, 2021)

Six months(From April 1, 2021 toSeptember 30, 2021)

Nine months(From April 1, 2021 to
December 31, 2021)

Fiscal year ended
March 31, 2022
(From April 1, 2021 toMarch 31, 2022)
539,884

109,799

243,581392,341

2,745

11,55327,40140,746

1,748

7,664

18,21927,205

0.041

0.183

0.436

0.652

First quarter(From April 1, 2021 toJune 30, 2021)
5.13
0.041

Second quarter(From July 1, 2021 toSeptember 30, 2021)
17.36
0.141

Third quarter
Fourth quarter(From October 1, 2021 (From January 1, 2022
to December 31, 2021) to March 31, 2022)
30.97
26.37
0.253

0.215

ANNUAL REPORT 2022

81

Corporate History

82

ANNUAL REPORT 2022

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

ANNUAL REPORT 2022

83

Corporate History

Advantage of Nittoc

Financial Highlights

Message from the President

Summary of theMedium-Term
Management PlanOur Business field

Domestic Construction Projects(earthquake-proof works andothers)Our Award-Winning History
Technology Fair Exhibition
Achievements

Overseas Deployment

International Business

SDGs Initiatives

Environmental Responsibility
Landscape Conservation Technologyof Cultural Property

Contribution to Society

Corporate GovernanceManagement Members

Consolidated Financial
Statements

Corporate Overview and
Major Construction Methods

Corporate Overview and Major Construction Methods
Trade Name

NITTOC CORPORATION CO., LTD.

Headquarters

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

Established on

December 17, 1947

Capital

Total number of issued shares:41,708,367
Paid-in capital: ¥6,052 million
Tokyo Stock Exchange: Tokyo Stock Exchange Prime

Number of
Employees(Consolidated)

Construction business: 1,047 persons
Other business: 7 persons
Total: 1,054 persons
Note: The annual average number of temporary employees is 247.

Description ofBusiness

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

LicenseSpecified Construction Business—License No. (Specified-3) 211, issued by the Minister of Land, Infrastructure, Transport and Tourism

Business Lines

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

Sales Offices

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

Subsidiaries

Midori Industries Co.,Ltd
3-10-6, Higashi-Nihonbashi,Chuo-ku, Tokyo 103-0004 Japan
Shimane Earth Engineering Co.,Ltd
310-1, Tsuda-cho, Matsue-Shi, Shimane 690-0055 Japan
Yamaguchi Earth Engineering Co.,Ltd
2-3-13, Hirano,Yamaguchi-Shi,Yamaguchi 753-0015 Japan
Ehime Earth Engineering Co., Ltd.
2-6-12 Amayama ,Matsuyama-shi, Ehime 790-0951 Japan
PT. NITTOC CONSTRUCTION INDONESIA
GENERALI TOWER GRAN RUBINA BUSINESS PARK 16th Floor Unit G
Jl. HR Rasuna Said, Kuningan Jakarta 12940, Indonesia
Fukui Earth Engineering Co., Ltd.
24-21-2 Ebata-cho, Fukui-shi, Fukui 918-8016

Staffing(Qualification
Holders)(Persons)

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

Total 1,047
70
643
721
9
323

Major Construction Methods
ICT utilization and mechanization
Slope Saver

Labor-saving technology for sprayed slope using a special spraying attachment

Shot Saver

Automation and labor-saving technology for spraying plants

Urban Regeneration Field
WinBLADE Method

Underground diameter expanding type soil-mixing improvement method that enables horizontal and slanting 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 largest-class double-tube drill machine capable of drilling a depth of 130 m.

N-Jet Method

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

Maintenance and Renovation Field
New ReSP Method

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

Slope Doctor

Technology to diagnose the soundness of aged shotcrete slopes

Kiro Fukeru Method

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

Bite Off Method

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

HiSP Method

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

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ANNUAL REPORT 2022

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 the greening of slopes

Plant-Leading Spraying Method

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

Fiber Soil Greening Step Method

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

ANNUAL REPORT 2022

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