Connect to the Future with Protection Technology

2021
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
The Corporate Strategy Division
TEL +81-3-5645-5080 FAX +81-3-5645-5083

JAKARTA Representative Office
GENERALI TOWER
GRAN RUBINA BUSINESS PARK 16th Floor Unit G
Jl. HR Rasuna Said, Kuningan Jakarta 12940, Indonesia

NITTOC CONSTRUCTION CO., LTD.

Connect to the Future withProtection Technology
MISSIONCONTENTWith efficient

02 Corporate History

management and04 Advantage of NITTOC

comprehensive

06 Financial Highlights

technical capabilities

08 Message from the President

in foundation work,
we are the company
that provides safe
and secure society
and contributes
to countries.

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

10 Summary of the Medium-Term Management Plan
12 Disaster Prevention and Environmental Conservation
16 Urban Regeneration
20 Maintenance and Renovation
24 Domestic Construction Projects
26 Our Award-Winning History
27 Fiscal 2020 Construction Technology Exhibition Achievement
28 Overseas Deployment
32 SDGs Initiativess

Forest Maintenance and Improvement for Restoration:Works No. 2702 and No. 2801; Yunokami Area
(Futaba-gun, Fukushima Prefecture)

Mena River
Disaster-related Emergency Erosion Control Work (Work Carried Forward)(Atsuma Town, Yufutsu District, Hokkaido)

34 Environmental Responsibility
35 Landscape Conservation Technology for Cultural Properties
36 Contribution to Society
38 Corporate Governance
40 Management Members
42 Consolidated Financial Statements
77 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, 2021 (from April 1, 2020 to March 31, 2021).
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, 2021).
• 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 futureforecasts include elements of risk and uncertainty, actual results and performances may differ from the forecasts provided in this report.

2018 Yoshino Area 3 Disaster Prevention Work
(Sagamihara City, Kanagawa Prefecture)
Kumamoto Earthquakes Disaster Restoration Work
Minamiaso Village, Kumamoto 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-gun and Shimizu-cho,Kamikawa-gun, Hokkaido)

National Road 20, Yoshino, Fujino Town, Sagamihara City
etc. Disaster Prevention Work
(Sagamihara City, Kanagawa Prefecture)Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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

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

2010

1983 December

Listed on the Second Section of the Tokyo Stock Exchange.

1985 April

Established NITTOC Real Estate Co., Ltd.

2013 December

1985 June

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

Construction of
Kawamata Dam (2017)

1985 September

Listed on the First Section of the Tokyo Stock Exchange.

Established Yamaguchi Earth Engineering
Co., Ltd. (currently a consolidated subsidiary)
Ogitsu Work of Joban Expressway,
Japan Highway Public Corp. (Ibaraki Prefecture)2015 September
Sold the Akashi-cho Suboffice Building

2000

1985 October

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

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

1986 March

Completed Tsukuba Laboratory.

1990 May

2016 March

Liquidated NITTOC Real Estate Co., Ltd.

Established PT NITTOC CONSTRUCTION INDONESIA(consolidated subsidiary).

2003 March

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

Registered for examination of ISO9000 approval for
the whole corporation.

1990 June
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.

2001 March

1980

Kumamoto Earthquakes Disaster Restoration Work

2003 November

2017

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

Construction of Kawamata Dam (2017)2004 October

2018

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.

20172008 March
Closed Tsukuba Laboratory.

2009 March

JR Kure Line, Saizaki Area Eternal Disaster Restoration Work
(Mihara-shi–Higashihiroshima-shi, Hiroshima Prefecture)2019 January
Established Ehime Earth Engineering Co., Ltd.
(currently a consolidated subsidiary)

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

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

1953
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

Kumamoto Earthquakes Disaster Restoration Work1972 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)

Established Japan Public K.K.

1965 March

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

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

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

Headquarters relocated to
Chuo-ku, Tokyo.

1972 May

Trade name changed to NITTOC CONSTRUCTION CO., LTD.

02

ANNUAL REPORT 2021

ANNUAL REPORT 2021

03

Advantage ofCorporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Since the establishment of Nittoc,
we have cultivated our unique expertise through our construction experience for more than half century.
NITTOC is a leading company in the field of foundation work in Japan.
Nowadays, we have different field of technique to respond to the needs of society,“Disaster Prevention and Environmental Conservation”, “Urban Regeneration”,
and “Maintenance and Renovation”.
Our technology contributes safety and secure environment to the society.

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

3 Types of Business Field respondto Social Needs

200

types of technology
We are holding
and construction method

Urban Regeneration
We must restructure in order to reborn a city
under the strong disaster.
It is not an easy project in the city which has
so many compressed buildings.
Even under the compress buildings situation,
NITTOC have developed earthquake resistant,liquefaction prevention and existing pile
removal method to contribute the society.

NITTOC specializes in slope related technique which

Disaster Prevention andEnvironmental Conservation

accumulates a brilliant achievement.

Since Japan has geographical conditions that make it

Today, in this aging social infrastructure century,

prone to being affected by natural disasters,

we developed our own diagnostic techniques as well aslarge scale disasters have become more frequent in recent years.

repair method for the existing slopes,

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

we also established a control system that can

we have developed our slope protection method does not use concrete,

be coordinates in maintenance work totally.

using a method for spraying vegetative material base,In addition, we have developed special materials for long distance pumping,or greening method by using surplus soil left in the site,high strength and introduced in harsh environment, mountain area orbased on the consideration of the disaster prevention environment.

long distance tunnel for headrace channel.

In addition, NITTOC accumulates a brilliant achievement about Anchor Method,

Maintenance and Renovationthat is necessary to slope disaster prevention.

04

ANNUAL REPORT 2021

ANNUAL REPORT 2021

05

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Civil Engineering
OthersFinancial Highlights

International
Business
Environmental

Operating income

General Civil Engineering(Millions of yen)

(Millions of yen)

80,0005,000

Corporate
GovernanceOperating income(%)(Millions of yen)

8.0

6,000

Ratio to Net Sales

8.0%

7.5%

5,419
7.0

Thousands of
U.S. dollars

2017

2018

2019

2020

2021

2021

¥57,174¥62,943¥63,264¥65,516¥67,955$613,818

Ordinary income

3,555

4,119

4,004

4,880

5,419

48,952

Profit attributable to owners of parent

2,342

2,688

2,721

3,258

3,500

31,61862,943 63,264
60,00065,516

5,000

6.3%

6.5%

6.3%

4,903

4,100

2,668

2,755

3,209

3,752

33,892

Net assets

21,81323,256

24,676

26,55028,800260,139

6.2%

6.3%

4,880

4,000
5.0

3,000

40,000

6.0
4,119

3,970

4.0

4,004
5.0

3,555

3,000

4.0

3.0
2,000

2,458

6.5%

6.0

3,583

Comprehensive income

7.0
5,000

57,174
4,000

3.0
2,000

20,000

2.0
1,000

2.0
1,000

1.0

Total assets

44,225

48,142

49,04850,15951,971

469,440

Net cash provided by (used in)operating activities

2,501

(301)

3,108

7,357

1,426

12,883

Net cash provided by (used in)investing activities

(393)

(867)

(1,252)

(217)

(705)

(6,375)

Net cash provided by (used in)financing activities

(321)

(144)

(1,624)(1,625)(1,784)(16,115)

0

0
2017

2018

2019

2020

Net income

Cash and cash equivalents
at end of period

14,462

13,114

13,346

18,713

17,722160,076

0

2021

2017

Net income·Ratio to Net Sales

2018

2019

2020

1.0

0

2021

Interest-bearing debt

0
2017

2018

(%)

4,000

7.0

2019

Total net assets(Millions of yen)

4,000

Others

4.7%

21.3%

1.8%

3,000

5.0%
2,668

Groundimprovement

4.1%

20.8%

(%)

30,000

60

52.6%
6.0

78.7%

Maintenanceandrenovation

12.3%

Pile foundation

7.5%

50.0%
48.1%

28,80026,55050

21,813 23,256

3,000
5.0

2,721
4.3%

20,00040

15,00030

10,000

20

5,000

10

4.0
2,342
2,000
3.0

(in net sales)
Government
andpublic sector

Slopeprotection

49.3%

1,100

2.0
1,000

1,000

826
552

1.0

Dam Grouting

3.6%

278
0

0
2017

ANNUAL REPORT 2021

5.2%

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

06

4.2%

25,00049.0%

24,6762,000

Public-Private
proportion

Equity Ratio

55.1%

3,258

Private sector

2021(Millions of yen)

3,500

Civil engineering

2020

Total net assets·Equity Ratio

Ratio to Net Sales(Millions of yen)

(%)

8.0

7.4%
5,358

Millions of yen

Corporate
Overview and
Major Construction
Methods

Consolidated
Financial
Statements

Ordinary income·Ratio to Net Sales

Ratio to Net Sales

7.9%

67,955Net sales

Contribution toSociety
Corporate
GovernanceLandscape Conservation
Technology ofCultural Property
Contribution to Society

Operating income·Ratio to Net Sales

Net sales

Financial Highlights

Special Features

2018

2019

2020

2021

0

0
2017

0
2018

2019

2020

2021

0
2016

2017

2018

2019

2020

ANNUAL REPORT 2021

07

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Message from the President

Message from the President
NITTOC CONSTRUCTION CO., LTD. (“NITTOC” or theAmid these circumstances, we have started a new“Company”) was established over 70 years ago in 1947.

medium-term management plan in fiscal 2020. To realize

Since starting dam foundation works as its initial job, we

R&D and business expansion aiming at automation andhave been garnering immense praises as a contractor

labor saving in new technologies and construction to

specialized in the soil related works such as Disaster

resolve these myriad issues, we will strive to secure andPrevention and Environmental Conservation,

develop engineers, including at partner companies,

Maintenance and Renovation, Urban Regeneration.

improve productivity in order to advance work stylereforms, and streamline operations using information

Nowadays, natural disasters such as earthquakes,

and communication technology (ICT).

typhoons and heavy rains have occurred frequently inJapan, and therefore the construction industry is required

It is our sincere desire to fulfill our social responsibilities

to respond to strengthening the national land andas a company engaged in the construction business,

reducing disasters in the country. Moreover, there are abased on our management philosophy of “a company

number of other urgent issues the construction industry

that provides a safe and secure society and contributes

must address at a global scale, including switching toto countries” with its “efficient management andcleaner sources of energy in order to combat global

comprehensive technical capabilities in foundation work,”

warming, one of the presumed factors behind climate

and will further work to contribute to the realization of achange, and reducing industrial waste and the use ofsustainable society. We appreciate your further guidance

plastic in order to reduce carbon emissions and counterand encouragement.

environmental pollution.

Yasuo Wada
President & Representative Director

08

ANNUAL REPORT 2021

ANNUAL REPORT 2021

09

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Summary of the Medium-Term Management Plan

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to SocietyManagement Philosophy, Management Policy, Business Strategy, and Issues

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Achieve Medium-term Management Plan 2020
managerial goals and targets

Mission: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.

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

Value: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

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

Value:

Efficient management and comprehensive technical capabilities in foundation work

Vision:Management
Policies(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

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

Take up challenges in new fields

Key long-term points

Corporate Culture Reforms

Management
Philosophy

Improve productivity

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.

1. Business Strategy
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.

Work on important measures

Vision:Management
Strategy

Efficient management and comprehensive
technical capabilities in foundation work

Realize business strategy

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 2021

Fiscal 2020
Mid-Term Achivement

Fiscal 2021

Fiscal 2022

3–year total

Orders received

66.4

67.8

70.5

72.2

209.1

Net sales

64.4

67.9

69.4

71.5

205.3

Operating income

4.0

5.3

4.5

4.8

13.3

Ordinary income

4.0

5.4

4.5

4.8

13.3

Net income

2.6

3.5

2.9

3.2

8.8

Equity ratio

51.2%

55.1%

51.8%

52.4%

-

4.4

5.7

4.9

5.3

14.7

EBITDA (operating income + amortization)

10(Unit: Billion yen)

ANNUAL REPORT 2021

11

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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
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).

Growth Foundation for Plants Mainly
Consisting of Raw Chip Material

Using Surface Soil and
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• 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.

Chosen as a “Fiscal 2016 Runner-up Recommended Technology”(by the New Technology Utilization System Review Meeting, Ministry ofLand, Infrastructure, Transport and Tourism)
NNTD No. 0370

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)

Construction Technology Review and Certification

Comparison of the Volume Utilized

Environment-Friendly
Slope Protection Method

OnsiteSurplus Soil
100m3

Geofiber Method

Raw Wood
Chip
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)

40m3

NEKKO Chip Method

50m3

KAERUDO-Green Method

100m3

NNTD No. 0369

Surface Soil-Based GrowthFoundation for Plants
KAERUDO-Green Method• 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
Ground reinforcement orplate-reinforced anchor work

N-Mat
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

12

ANNUAL REPORT 2021

ANNUAL REPORT 2021

13

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Contribution toSociety
Corporate
GovernanceLandscape Conservation
Technology ofCultural Property
Contribution to Society

Corporate
GovernanceConsolidated
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

Greening of Mortar Shotcrete
Surfaces and Bedrock

Sprayedfoundation
Hole for root system

Wireless
communication

Load meter

Installed anchor

Measurement data-acquisition system

Dispersion of surface water

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

Approximately 20 cm in depth
for the development of aroot system

Splitz Anchor
MethodØ2,200 mm

Ripraplayer
Anchor Method by
the EinBand Drill

14

ANNUAL REPORT 2021

Soldier Pile Panel
Wall Method(combined use withground anchor)

Ø4,800 mm

Cutting
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
Rock Bolt Workby SSB

New ACE 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.

Dedicated jigs

Creating horizontal parts

Soldier Pile Panel
Wall Method

SANDER Green Method

Fiber Soil Greening Step Method• 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.

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 2021

15

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business field

Our Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Bit opens.

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

Urban Regeneration

Ø80
0m
m

Enlarged-Diameter-Type Anchor Firmly
Fixable on Soft Ground
Splitz Anchor Method

Construction Performance, Method, and Technology

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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 AB’s 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.

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.

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

Anchorbody

Conventional Anchor

Splitz Anchor
In case of a close siteboundary
Site boundary

Site boundary

Bearing
stratum

Bearing
stratum

Building Anchor Technology

In case of a deep
bearing stratum

SHS Permanent Ground Anchor Method
STK Permanent Anchor Method
PTC Permanent Ground Anchor Method
Bearing
stratum

Bearing
stratum

NNTD No. 0375

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

Construction Technology Review
and Certification

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

2,380 mm

EinBand Drill

6,306 mm2,580 mm

New EinBand Drill

Soldier Pile Panel Wall Method• 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

16

ANNUAL REPORT 2021

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 2021

17

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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 Method forLarge-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 Combined with
High-Pressure Injection Using an Enlarged
Mixing Blade

L-Spin Column Method

Jet ofhardening
agent

Mechanical Mixing Method Suitable at Narrow Spaces
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)

Shallow and 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

Internal-pressurerelief blades

Up to eight sets

Underground Diameter Expanding Type
Soil-Mixing Improvement Method

Chemical Grouting Method
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
Approx.
1m

NNTD No. 1279

• 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

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

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 blade
Rotational
direction of
external
blades5) Completionof work

Control unit

Rotational
direction ofinternal
bladesEnlarged-diameter bitØ 1,200 mm

Injection of
permanent
grout

Polygonpipe

WinBLADE Method

Technology Evaluation Certificate, The Society ofMaterials Science, Japan

Discharge of cement milk

CasingNew Sleeve Grouting Method

18

ANNUAL REPORT 2021

Conventional Method(sleeve grouting method)

ANNUAL REPORT 2021

19

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Our Business field

Maintenance and Renovation

Preventive Maintenance of Concrete Structures

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

Frame Doctor Method

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.

Work Flow
Shaving off
deteriorated portions

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

Example ofCountermeasure Work

Ground Reinforcement Method Suited for Embankment Ground

Removal of loose
portions
Large crack with aconsiderable opening

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

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

NEW !

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

Surface coating

Aged Shotcrete Slope Diagnosis System
Slope Doctor• 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(Sou

ANNUAL REPORT 2021

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

Existing mortar /concrete

20

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 2021

21

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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

. 2,0

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

00

Before hardening

After hardening

Unit: mm

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

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

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 Distance andat 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:

22

ANNUAL REPORT 2021

ANNUAL REPORT 2021

23

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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 meet social
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

Before construction

Takaoka Area B Special Emergency
Serious Disaster Recovery Forest
Conservation Work
(Atsuma Town, Yufutsu District, Hokkaido)

After completion

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. Specifically, we employed on-site sprayslope frame and planting sheet installation methods in the Takaoka
Area, which was one of the areas that suffered severe damage.

2020 City Level Civil Engineering
Facility Disaster Recovery Project(National)
Highway 152 Disaster Recovery
Project (Sejiri)(Hamamatsu City, Shizuoka Prefecture)

After completion (after
emergency response)

In July 2020, torrential rains from a seasonal rain front caused
landslides in the mountains along highways in Hamamatsu Cityand massive boulders fell near the roads. National Highway 152,
which is one of the main roads used by Hamamatsu residents,
ran below the site of the landslide and was fully closed due to thelandslide. In accordance with a disaster agreement, we were putin charge of work ordered by Hamamatsu City to remediate thelandslide. In this project, we broke up unstable boulders with thedanger of falling using Gansizer. The highway was reopened on
December 21 after the work was completed.
Orderer:
Hamamatsu City Tenryu Civil Engineering Office
Project Overview: Rock blasting (crushing)

Before construction

Orderer:
Owner:

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

Before construction

Characteristic Project

After completion

During construction

Before construction

Initiatives for the Restoration and Reconstruction
from the Tohoku Earthquake & Tsunami

Kesennuma Area Reconstruction
Project(Kesennuma City, Miyagi Prefecture)

The Tohoku Earthquake & Tsunami that struck on March 11, 2011
caused massive tsunamis and huge fires in Kesennuma City. We
participated in a reconstruction project from 2014 to 2020 in theareas of Minami-Kesennuma and Shishiori, which were especially hit
hard by the disaster. To help rebuild the city, which was once oneof Japan’s leading port towns, we removed the foundation piles ofdamaged buildings, installed new sewer pipes and rainwater boxes,
removed old bridges, and improved river banks and streetscapes.

Joyama Cave Tombs Historical Site
Preservation and Maintenance Work
(Fukuchi Town, Tagawa District, 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
Project Overview: Continuous fiber-reinforcement soil reinforcement work (Geofiber method),pigmented mortar spraying work

Orderer:
Urban Renaissance Agency
Owner:
Shimizu, Nishimatsu, Okumura, Pasco, and Asia Air Survey JV
Project Overview: Pipe jacking work, sewer work, river revetment

24

ANNUAL REPORT 2021

ANNUAL REPORT 2021

25

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning History

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Fairs Where We Plan to Exhibit

Innovative Technique Award in 2020 Japan Society of
Civil Engineers (JSCE) Awards
The “In-situ Ground Solidifying Method Using Mechanical Mixing Blades to Realize Construction with Obstacle Avoidance and Diagonal
Execution (WinBLADE Method),” which we developed jointly with Taisei Corporation, won the Innovative Technique Award in the 2020
Japan Society of Civil Engineers (JSCE) Awards.
The JSCE Innovative Technique Award recognizes contributions to society through the development of civil engineering technology
by developing and commercializing technologies recognized to be highly innovative in such areas as planning, design, construction, andmaintenance and administration.
The WinBLADE method is a mechanical mixing method that uses a mixing blade that can be opened and closed underground to mix
soil in situ and cement slurry, forming a cement column. Development began in 2010, and the method was first used in construction in
2013. Subsequent improvements and extended features have positioned this method as a disaster-prevention technology, and it has also
been recognized as technology development that contributes to the realization of social sustainability, including the use of existing stockand environmental conservation. The award was given in recognition of these accomplishments.

Fiscal 2020 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 2020, 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.2020
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 2020 Construction Technology Fair Exhibitions
No.

PeriodJointly developed with Taisei Corporation

Organizer

Venue

1

Oct. 14 to Oct. 15

Construction Technology Fair 2020 in
Chubu

Chubu Regional Development Bureau

Fukiage Hall

2

Oct. 21 (Wed.) to Oct. 22 (Thurs.)

Construction Technology Expo 2020
Kinki

The Nikkan Kensetsu Kogyo Shimbun
and Kinki Construction Association

MyDome Osaka

3

Oct. 19 (Mon.) to Apr. 30 (Fri.)

Fukui Construction Technology Online
Fair 2020

Fukui Prefectural Public Corporation ofConstruction Technology

Online(https://www.fk-kosha.or.jp)

4Feb. 16 (Tue.) to Feb. 17 (Wed.)

Construction Xross 2020 Kanto

The Nikkan Kensetsu Kogyo Shimbun

Exhibition Hall, Sunshine City

5

All year (permanent)

Agriculture and Civil Engineering
Showroom

Kanto Regional Agricultural
Administration Office, Ministry ofAgriculture, Forestry and Fisheries(MAFF)

Kanto Regional Agricultural
Administration Office + WEB

Construction Technology Pavilion

Kanto Regional Development Bureau,
MLIT

Kanto Technology Office, Kanto
Regional Development Bureau,
MLIT
Construction Technology Pavilion +WEB

WinBLADE Method:

In-situ Ground Solidifying Method Using Mechanical Mixing Blades to Realize
Construction with Obstacle Avoidance and Diagonal Execution

Name of Construction Technology Fair

B
Center hole/spindle rotation/
propulsion
mechanism

Range of operation
shown in composite
image

6

All year (permanent)

Mixing system with blades that can be expanded and retracted

A• Marketed in specialized fields
such as obstacle avoidance anddiagonal construction• Autonomous-drilling WinBLADE
method in development

A: Diagonal construction type

26

ANNUAL REPORT 2021

Top drive rotation/
propulsion
mechanism
C: Vertical/outdoor construction type

ANNUAL REPORT 2021

27

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Overseas Deployment

Overseas Deployment

Feedback from Local 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 NITTOC after obtaining a master’s degree at a university in Japan. My first assignment wasa slope protection project in Hokkaido, where I learned not only necessary technical skills, but also
various other things, including administration on a construction site, technical Japanese vocabulary,
and the etiquette necessary for working in Japanese society. Since then, I have been involved inmany different projects related to slope protection, ground reinforcement, and caisson pile. I amvery grateful to NITTOC and all of my colleagues for creating a friendly work environment that is
kind, even to employees from overseas such as myself. I am most happy and proud to be a NITTOC
member, capable of contributing to the creation of a safer and more secure society.

MARTINEZ BRAVO Delvin Abdiel
Construction Section, Construction Department, Overseas Business Division
Nationality: Nicaragua

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 four 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 namePT NITTOC CONSTRUCTION INDONESIA

Representative

Yasunobu Okumiya

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 388 million)
Note: Calculated at an exchange rate of 1 rupiah = 0.0076 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. (021) 2994 1582
Fax. (021) 2994 1991

ZWE ZANl
Construction Section, Construction Department, Overseas Business Division
Nationality: Myanmar

I graduated from the Civil Engineering Department of Technological University, Mawlamyine, in
Myanmar in 2016. Since November 2019, I have worked in construction management at the Tokyo
Branch of NITTOC. At construction sites in Japan, I gained experience on ground reinforcement
works, including the boring hole method, soil mixing wall method, N-Jet method, and power
blender method. I am willing to learn more Japanese, get used to life in Japan, and study a varietyof specialized technologies, including slope protection, pipe jacking, and more. I am happy to work
for NITTOC because I can learn various specialized technologies and get the opportunity to work inJapan and also abroad.

NAING THUNPT NITTOC CONSTRUCTION INDONESIA’s Web site

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

28

ANNUAL REPORT 2021

I worked in Myanmar for several years after graduating from the Civil Engineering Departmentof Pyay Technological University in Myanmar. Since November 2019, I have been involved inconstruction management at NITTOC’s Tokyo and Nagoya Branches. So far, I have learned various
types of technology through experience with ground reinforcement works, including the power
blender method, column jet grouting method, and Super Jet, as well as slope works, including
mortar spraying, slope frame spraying, and lock bolts. My goal is to become even better at Japanese,
get used to life in Japan, and manage construction in cooperation with my colleagues, so that I canbe an engineer capable of creating a safe and secure society and contributing to countries.

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

Construction Section, Construction Department, Overseas Business Division
Nationality: Myanmar

ANNUAL REPORT 2021

29

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

International Business

International Business

Introduction of Overseas Construction Projects

Safety Conference – PT.NCI 5th Anniversary Party
Once a year, the Company holds a safety conference by gathering all employees and relevant workers aimed at improving their safety awareness.
On November 17, 2020, PT. NITTOC CONSTRUCTION INDONESIA (PTNCI) held the 5th Anniversary Party and a safety conference.
In light of the COVID-19 pandemic, we held a rally this year that allowed employees who work from home and employees at various sites toparticipate remotely using Zoom.
Next, PTNCI introduced examples of workplace accidents in Japan and Indonesia that occurred in fiscal 2019. We continued with disaster casestudies for construction projects that PTNCI is engaged in now, or will start in the near future, introducing disaster cases involving jet grout, pipe
jacking, power blenders, slope protection, and electrical issues. In addition, it raised the awareness of staff regarding the importance of safety work.
PTNCI also awarded staff and workers who have continuously served for 5 years.

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.

Asahan No.3
Hydroelectric Power Plant
This hydroelectric power plant in North Sumatra was built to relieve
the tight supply-demand balance of electricity and make the supplyof electricity more stable.
The Company performed the slope protection work.
Work site:
Orderer:
Owner:
Description of the work:
Construction period:

Safety conference (online)

5th Anniversary Award

From left: Faisol (Best Staff ), Yano (5th Anniversary),
Wawan (5th Anniversary)

Employee Education
Staff training
Every year, our safety and technology staff are dispatched to Japan to learn about
NITTOC’s safety management, project management, and construction technologies. Last
fiscal year, although trainees could not come to Japan for their training because of the
COVID-19 pandemic, we conducted training through online means.

Project site visit by administrative staff
Employees working at the PTNCI Jakarta Office are visiting project sites outside Jakarta.
The goal of these visits is to foster communication between administrative personnel andworksite personnel.
These visits enable administrative staff that work in the office to get an immediate feel ofworksite conditions and situations.

Recreation Event for Employees and Their Family Members
To mark the anniversary of the establishment of PT. NITTOC CONSTRUCTION INDONESIAin November, NITTOC holds recreational activities with the participation of employees
and their family members. We were not able to hold these activities last fiscal year due tothe COVID-19 pandemic, but we are working to conduct them on a regular basis tofacilitate communication among employees.
In 2018, a total of 86 Japanese and Indonesian staff and family members participated insuch activities in the Ancol district of northern Jakarta. A total of 91 Japanese andIndonesian staff and family members participated in the event at Ancol Ocean Dream
Sumudra (SCORPION PIRATES). NITTOC will continue these recreational activities with theparticipation of employees and their families every year.

30

ANNUAL REPORT 2021

Asahan Regency, North Sumatra
PT PLN
Shimizu - Adhi Karya JO
Free frame work, mortar spraying
September 2019 – Ongoing

JAKARTA MASS RAPID TRANSITPROJECT
Jakarta has made tremendous progress as a center of economic
activity. However, since the city suffers from chronic traffic
congestion, it decided to build a new subway to alleviate theproblem. The Company performed base slab reinforcement workand pithead protection work.
This base slab reinforcement work and pithead protection work areassociated with the construction of the new subway line.
Work site:
Orderer:
Owner:
Description of the work:
Construction period:

Special Capital Region of Jakarta
PT. MRT JAKARTA
Shimizu - Adhi Karya JO
Jet grouting work, chemical grouting work
October 2020 – Ongoing

Cement Soil Mixing
Demonstration Work
Development of Makassar City
Northwest Zone
The infrastructure development in Makassar, the largest cityin 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.
Work site:
Orderer:
Owner:
Description of the work:
Construction period:

Makassar, South Sulawesi
PU
PT. ADHI KARYA (Persero) Tbk
Pipe jacking work
August 2020 – Ongoing

ANNUAL REPORT 2021

31

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceCorporate
Overview and
Major Construction
Methods

Consolidated
Financial
Statements

SDGs Initiatives

SDGs

From these, we will introduce our environmental initiatives.

SDGs - Environmental Initiatives Recycling of Disaster Waste (scrap wood, sludge)

NITTOC is implementing initiatives forachieving the SDGs.
NITTOC conducts its business under its mission and one of its management philosophies of fulfilling its role as a company that provides asafe and secure society and contributes to countries. Through initiatives related to social issues such as the SDGs, we will work to realize ourmanagement philosophies, as well as contribute to the realization of a sustainable society.

Initiatives for the
Restoration andReconstruction from the
Hokkaido Eastern Iburi
Earthquake
Yoshino Area 2 (Zones
1 to 3) Disaster-related
emergency forest
conservation work (Atsuma
Town, Yufutsu District,
Hokkaido)

The Company uses various recycling andgreening methods to enable recycling of
onsite surplus soil and wood chips in line withlocal needs. The Company uses its recycling
and greening knowledge developed overmany years of experience, to recycle wastematerials produced by disasters (sludge, scrap
wood such as felled trees, roots, and flood
wood, and other waste) for use in slope
greening, with the aim to reduce the amountof waste.

Recycling of Disaster Waste

1

2

Scrap wood andsludge are
extracted fromdisaster waste

Scrap wood ispulverized to makewood chips, and isreused as
foundation materials
for greening work43

It assists withthe greening ofslopesSpray onto slopes(the photographshows the NEKKO
chip method in use)

Reduction of Industrial Waste
Reinforcing
material
Existing sprayedmaterial
Rock bolt

Shotcrete portion
with increased
thicknessredathe(We area)

. 50
rox
App

Max. 2,000cm

Shear bolt

)

n
rtio

Realize an environment-friendly, sustainable society
Incorporate environmentally conscious construction methods

Promote work style reforms
Cultivation and development of human resources
Health and safety education and maintenance of safe environments

Increase recruitment of female engineers
Establish a workplace environment in which women can work comfortably

Thorough compliance
Build a risk management system and strengthen process management

32

ANNUAL REPORT 2021

Existing mortar/
shotcrete

Reduction of CO2 Emissions
The cement creation process produces a large
amount of CO2. The geofiber method, which
does not use cement, cuts the CO2 emissions
involved in the production process to less than
one third of those emitted when using theslope frame method.
The new sleeve grouting method uses alonger grouting span and has superior
penetration performance compared toconventional methods, making it possible tospace grouting further apart and cutting thenumber of grouting holes to as little as one
fourth of conventional methods. This shortens
construction period and reduces the amountof CO2 emitted by construction equipment.

Max

. 2,0

00

Unit: mm

New Sleeve Grouting Method

Geofiber Method
Continuous
fiber-reinforced soil work
(slope protection type)

Max
. 2,0
00

Soun
d gro
und

Drain pipe

o
nd p
(Sou

Provide a safe and secure society and contribute to countries
Protect countries from natural disasters such as earthquakes, typhoons, and heavy rain
Build foundations for disaster-resistant infrastructure and urban development
Disaster prevention measures on slopes around cultural properties
Develop technologies for disaster prevention of slopes of cultural properties in collaboration with universities

Shotcrete pressurereceiving plate(FSC panel)

Organic-fiber-reinforced
mortar spraying workt =7 cmround

Completed construction

Shotcrete Pressure Receiving Plate Method (FSC Panel)

New ReSP Method

Weathered gBefore construction

Aged shotcrete slopes were conventionallyrenovated by first removing the existing
mortar/concrete and then spraying on new
mortar. The removed concrete grounds thenbecame industrial waste. The New ReSP
method and the shotcrete pressure receiving
plate method (FSC panel) enables repair andreinforcement without removing the existing
mortar and concrete, reducing the amount ofindustrial waste produced.

Planting work(vegetation base material
spraying work)

Primary
grouting
Secondarygrouting
Approx.
1m
Polygon pipe

New Sleeve Grouting Method

Ground reinforcement orplate-reinforced anchor work

Conventional Method(sleeve grouting method)

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

ANNUAL REPORT 2021

33

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Environmental Responsibility

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Landscape Conservation Technology of Cultural Property

Environmental Responsibility
Environmental Policy

the research, development, design and study to construct an

NITTOC has general power with that specializes in <Disasterhumans.

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

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

listed in one of the management philosophy of contributing

ecosystem conservation, landscape conservation and environmental

to the society. Technology Development Department

friendly products utilization.

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

agreements, customer and industry requirements, actively fulfill

environmental symbiosis society for earth biological including

social responsibility for environmental protection.
• Technology Development Department recognizes global• Education for personnel of Technology Development Department

environment conservation as one of the business activities.

to improve environmental conservation awareness.

We are aim• Expose the implementation of environmental policy andto reduce the load of global environment by improving theenvironmental conservation activities as needed in order toenvironmental management system.

cooperate with customers and the community.

Landscape Conservation Technology for
Cultural Properties
Our landscape conservation technology helps to restore the landscape while protecting the security of valuable cultural properties
and historical sites.

Kiyomizu-dera Temple (Kyoto)
The slope of the Kiyomizu-dera, a World Heritage site, collapsed due to the heavy rain caused by Typhoon Man-yi in
September 2013.
In 2014 through 2015, the collapsed slope was reinforced by ground reinforcement work and ground anchor work,and covered with reinforced soil using the Geofiber Method. Plants will grow at the site and the beautiful landscape full ofgreenery will return soon.

• Effective utilization of limited resources and reduce the load ofenvironment to be a resource recycling society. We promote

Operational Organization Diagram of the Technology Development Department
Environment Management System
General Manager ofTechnology Development Department

Environmental
Management Officer
Environmental Committee
Environment Committee Bureau

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

NITTOC Hasuda General Center

Slope seen from the stage of Kiyomizu-dera Temple

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

Utsunomiya Castle Site Park (Tochigi)

Kashima Jingu Shrine (Ibaraki)

Utsunomiya Castle Site Park is maintained as an importantbasis for the revitalization of central downtown areas of thecity and urban disaster prevention, with partial restoration of
the former Utsunomiya Castle, which is faithful to historicalfacts, as a main feature.
The Geofiber Method was adopted for the restoration of theearthworks, and the beautiful green earthworks now havebeen maintained for 10 years since the restoration work wascompleted.

The slope of Kashima Jingu Shrine located in Kashima-shi,
Ibaraki, collapsed due to the mudslides caused by Typhoon
Wipha in October 2013. The Geofiber Method was adopted
for the restoration work of the collapsed slope.
The restoration work was completed without fouling theMitarashi Pond, located at the side of the slope, because no
cement was used.
Before the work

Before the work

After the work

34

ANNUAL REPORT 2021

After the work

ANNUAL REPORT 2021

35

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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.

Tokyo Branch: Removal of Trees Knocked Down by Typhoon(Gunma Prefecture, September 2020)
Typhoon Dolphin, which occurred in September, caused damage onroads near a dam site in Gunma Prefecture, knocking down trees. Oncethe typhoon passed, the Company worked to remove the fallen trees.
Employees of NITTOC and partner companies, who were working as
field representatives on a nearby site, removed the trees and thenbroken branches and other debris from the road, which was finallyreopened.

Osaka Branch: Thinning and Mowing in the Area Adjacent toConstruction Site
(Kyoto Prefecture, November 2020)
The work of thinning and mowing in the mountain areas surrounding
cultivated land adjacent to a construction site of Kasuga Interchange
had become a burden to residents of the area.
Therefore, employees of NITTOC and partner companies performed
the work in the mountain areas surrounding cultivated land during theconstruction period. They also mowed grass around the cultivated land.
The residents of the area were pleased with our activity as it reduced
their burden of grass mowing and other work.

Hiroshima Branch: Cleanup Volunteer Support Project(Hiroshima Prefecture: April 2020 – February 2021)
Tohoku Branch: Regeneration and Maintenance Activities for a
Seaside Forest Reserve to Prevent Disasters(Miyagi Prefecture, June 2020)
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 maintenancework.

We have conducted cleanup work on a riverside promenade near theCompany once every three months since April 2020. This activity ismainly done by in-house employees from the Hiroshima Branch, andabout 20 staff start cleaning in the evenings. Usually, there is a greatamount of plastic bottles, paper waste, and other garbage from the city.
When the employees conducted this work in the fall, most of the waste
was fallen leaves and in just one cleaning operation, they collected
about 20 large transparent plastic bags full of waste. The Hiroshima
Branch will continue regular cleanup work in the neighborhood.

Hokuriku Branch: Echigo Rice Terrace Supporters(Niigata Prefecture, June 2020)

Installation of a Donation Box for the Children’s Cafeteria “Ohisama Kitchen, Ohisama Food Pantry”(Tokyo, September 2020 – Ongoing)

Echigo Rice Terrace Supporters is a group consisting mainly of staff
from the Agricultural Land Department of the Niigata Prefectural
Government. It was formed to show their love for rice terraces and towork with members of the community to protect them. Volunteers
from the Hokuriku Branch who support the group’s objectives
cooperated by mowing grass and cleaning rice terraces in various
parts of Niigata Prefecture this year as well. In fiscal 2020, five branch
employees participated in this project in June.

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” waslaunched with the goal of providing as much relief as possible fordifficult environments, including households where children are
hungry and have nothing to eat, or where the parents work while thechildren are at home alone with nobody to talk to while having meals.
We support this goal and have set up a donation box to assist them.

Activity Details
Iwanezawa Area, Sado City
Mowing grass on irrigation and drainage canals of rice terraces, cleaning mud from
canals, and maintenance around ponds

36

ANNUAL REPORT 2021

ANNUAL REPORT 2021

37

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Contribution toSociety
Corporate
GovernanceLandscape Conservation
Technology ofCultural Property
Contribution to Society

Corporate
GovernanceConsolidated
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
ReportNomination andCompensation
Committee

Election / Dismissal

Election / Dismissal

Corporate Auditors /Board of Corporate Auditors

Audit
ReportDirectors / 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

Discuss / ReportSupervision

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.

38

ANNUAL REPORT 2021

ReportElection /Dismissal

Election /Dismissal

ReportRepresentative Directors

Accounting Auditor

ReportAccounting audit
ReportInstruct

Instruct

Audit Department

ReportManagement Meeting

II. Status of Development of the Internal Control System

Cooperation

ReportReportInternal audit

Internal audit
ReportManagement Strategy
DivisionManageVarious committees including
Compliance Committee

Guidance

Corporate lawyer
AdviceOperating Officers
Business execution

Risk management
Guidance / Advice

Head Office / Branches

ControlGroup Companies

ANNUAL REPORT 2021

39

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Contribution toSociety
Corporate
GovernanceLandscape Conservation
Technology ofCultural Property
Contribution to Society

Corporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Management Members

DIRECTORS
Representative Director and Chairperson

1 Norihisa Nagai

President and Representative Director

2 Yasuo Wada
Director

3 Hiroshi Yamada
Director

4 Toshikazu Kawaguchi
Director

5 Masashi Ootsuka
Director

6 Naoto Kami
Director

7 Katsuhiro Yorozu
Director

8 Yasunobu Okumiya
Director

9 Iwao Aso
Director

10 Masayuki Watanabe(Outside Director)
Director

11 Katsuo Nakamura(Outside Director)

5
11

9

ANNUAL REPORT 2021

4
6

2

40

3

7

8

10

1

ANNUAL REPORT 2021

41

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

Special Features

International
Business
Environmental

Contribution toSociety
Corporate
GovernanceLandscape Conservation
Technology ofCultural Property
Contribution to Society

Corporate
GovernanceCorporate
Overview and
Major Construction
Methods

Consolidated
Financial
Statements

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 Suga

642

ANNUAL REPORT 2021

5

4

1

2

3

ANNUAL REPORT 2021

43

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceCorporate
Overview and
Major Construction
Methods

Consolidated
Financial
Statements

Consolidated Financial Statements

Consolidated Financial Statements, etc.
1. Consolidated Financial Statements
1) Consolidated Balance Sheets
March 31, 2020 and 2021

Thousands of
U.S.Dollars(*)

Millions of yen
2020

2021

2021

2020

2021

2021

Liabilities

AssetsCurrent liabilities

Current assets

11,365

11,339102,421

Short-term borrowings

Notes payable, accounts payable for construction contracts and other

274

278

2,511

Advances received on construction contracts in progress

2,087

2,032

18,358Cash and deposits

18,713

17,722160,076

Notes receivable, accounts receivable from completed construction contracts and other

17,317

19,666

177,644

Electronically recorded monetary claims — operating

2,435

2,921

26,392

Lease obligations

12

3

34

Merchandise and finished goods

14

9

89

Income taxes payable

1,189

1,274

11,509Real estate for sale

0

0

0

Costs on construction contracts in progress*4 1,850*4 1,359

12,280Raw materials and supplies

161

243

2,200

Other

512

360

3,254

Allowance for doubtful accounts

(1)

(2)

(18)

41,00342,282

381,920

Total current assets

41

24

216

Provision for loss on construction contracts

Provision for warranties for completed construction*4 1*4 286

2,584

Provision for bonuses

1,370

1,501

13,558

43

36

331

Other

Provision for bonuses for directors (and other officers)

2,830

2,156

19,478

Total current liabilities

19,214

18,931

171,003

278

–

–

9

5

51

4,069

4,162

37,602

37

71

643

4,394

4,239

38,297

23,60823,171

209,301

Non-current liabilities
Long-term borrowings

Non-current assets

Lease obligations

Property, plant and equipment

Retirement benefit liability

Buildings and structures, net*1 1,769*1 1,645

14,864

Machinery, vehicles, tools, furniture and fixtures, net*1 897*1 1,133

10,234

Land

2,652

2,638

23,828

Leased assets, net

*1 24

*1 13

119

52

166

1,506

Shareholders’ equity

Other, net

*3 2

*3 2

18

Share capital

6,052

6,052

54,669Total property, plant and equipment

5,398

5,598

50,571

Capital surplus

2,022

2,022

18,266

440

445

4,025

Investment securities

791

974

8,803

Deferred tax assets

1,966

2,127

19,215

Other

622

602

5,443

Allowance for doubtful accounts

(63)

(59)

(538)

Total investments and other assets

3,316

3,644

32,923

9,155

9,689

87,51950,15951,971

469,440

Construction in progress

Intangible assets
Investments and other assets

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

44

Thousands of
U.S.Dollars(*)

Millions of yen

ANNUAL REPORT 2021

Other
Total non-current liabilities
Total liabilities
Net assets

Retained earnings

19,42021,419193,469

Treasury shares(1,056)(1,057)(9,549)Total shareholders’ equity

26,43828,436

256,855

Valuation difference on available-for-sale securities

188

312

2,823

Foreign currency translation adjustment

(79)

(34)

(310)

Remeasurements of defined benefit plans

(158)

(95)

(858)

Total accumulated other comprehensive income

(49)

183

1,654

161

180

1,628

Accumulated other comprehensive income

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

26,55028,800260,139

50,15951,971

469,440*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

ANNUAL REPORT 2021

45

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceCorporate
Overview and
Major Construction
Methods

Consolidated
Financial
Statements

Consolidated Financial Statements

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Fiscal Years Ended March 31, 2020 and 2021

Consolidated Statements of Comprehensive Income
Fiscal Years Ended March 31, 2020 and 2021

Thousands of
U.S.Dollars(*)

Millions of yen
2020

2021

2021

2020

65,361

67,718611,674

155

237

2,143

65,516

67,955613,818

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

ProfitCost of sales
Cost of sales of completed construction contracts
Cost of sales in other businesses
Total cost of sales*1 53,161*1 54,959

496,425

59

142

1,289

53,221

55,102497,715

12,19912,759115,249

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

95

94

853

12,295

12,853

116,103*2,3 7,392*2,3 7,495

67,702

4,903

5,358

48,400Thousands of
U.S.Dollars(*)

Millions of yen
2021

2021

3,311

3,495

31,572

Valuation difference on available-for-sale securities

(88)

124

1,120

Foreign currency translation adjustment

(81)

69

627

Remeasurements of defined benefit plans, net of tax

68

63

571

*1 (102)*1 256

2,320

3,209

3,752

33,892

3,184

3,733

33,722

24

18

170

Other comprehensive income

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

Non-operating income
Interest income

17

16

152

Dividend income

33

34

309

Patent income

18

13

124

Foreign exchange gains

–

32

293

Other

14

9

86

Total non-operating income

83

107

967

Non-operating expenses
Interest expenses

9

6

59

Guarantee commission

27

30

276

Foreign exchange losses

63

–

–

Commission for syndicated loans

5

5

48

Other

0

3

30

Total non-operating expenses
Ordinary profit

106

46

415

4,880

5,419

48,952

*4 20

*4 15

141

20

15

141

*5 23

*5 3

33
1,911

Extraordinary income
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses–*6 211

Other

–

1

16

Total extraordinary losses

23

217

1,961

Profit before income taxes

4,876

5,218

47,132

Income taxes - current

1,750

1,965

17,755

Income taxes - deferred

(185)

(243)

(2,196)

Total income taxes

1,564

1,722

31,572

Profit

3,311

3,495

15,559Profit attributable to non-controlling interests
Profit attributable to owners of parent

53

(5)

(45)

3,258

3,500

31,618*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

46

ANNUAL REPORT 2021

ANNUAL REPORT 2021

47

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

3. Consolidated Statements of Changes in Net Assets
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)

Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)(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

17,496(1,055)24,515

Changes during period

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

6,052

2,022

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

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

Dividends of surplus(1,501)(1,501)

Profit attributable to owners of parent

3,258

3,258

Profit attributable to owners of parent

3,500

3,500

Purchase of treasury shares

(0)

(0)

Net changes in items other thanshareholders’ equity

Purchase of treasury shares
Disposal of treasury shares

Total changes during period

–

–

1,923

(0)

1,922

Balance at end of period

6,052

2,022

19,420(1,056)26,438

0

(1)

(1)

0

0

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

–

0

1,998

(1)

1,997

Balance at end of period

6,052

2,022

21,419(1,057)28,436(Millions of yen)

Accumulated other comprehensive income(Millions of yen)

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

277

Foreign currencytranslation
adjustment(26)

Remeasurementsof defined
benefit plans(226)

Total accumulated
othercomprehensive
income24

Non-controllinginterests

137

Valuation difference
on available-forsale securities

24,676
Balance at beginning of period

Changes during period

188

Foreign currencytranslation
adjustment(79)

Remeasurementsof defined
benefit plans(158)

Total accumulated
othercomprehensive
income(49)

Non-controllinginterests

161

Total net assets

26,550

Dividends of surplus(1,334)

Changes during period

Profit attributable to owners of parent

3,258

Dividends of surplus(1,501)(0)Profit attributable to owners of parent

3,500

Purchase of treasury shares
Net changes in items other thanshareholders’ equity

48

Accumulated other comprehensive income

Total net assets

(88)

(53)

68

(73)

24

(49)

Purchase of treasury shares(1)

Total changes during period

(88)

(53)

68

(73)

24

1,873

Disposal of treasury shares

0

Balance at end of period

188

(79)

(158)

(49)

161

26,550Net changes in items other thanshareholders’ equity

ANNUAL REPORT 2021

124

45

63

232

18

251

Total changes during period

124

45

63

232

18

2,249

Balance at end of period

312

(34)

(95)

183

180

28,800ANNUAL REPORT 2021

49

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceCorporate
Overview and
Major Construction
Methods

Consolidated
Financial
Statements

Consolidated Financial Statements

4. Consolidated Statements of Cash Flows
Fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)

Fiscal Years Ended March 31, 2020 and 2021
(Thousands of U.S.Dollars)

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity54,66918,266

175,414(9,539)238,810

Changes during period
Dividends of surplus(13,562)(13,562)

Profit attributable to owners of parent

31,61831,618Purchase of treasury shares
Disposal of treasury shares

0

(10)

(10)

0

0

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

0

18,055(10)

18,04554,66918,266

193,469(9,549)256,855(Thousands of U.S.Dollars)

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

1,703

Foreign currencytranslation
adjustment(718)

Remeasurementsof defined
benefit plans(1,433)

Total accumulated
othercomprehensive
income(449)

Non-controllinginterests

1,458

Total net assets

50

239,819

Dividends of surplus(13,562)

Profit attributable to owners of parent

31,618Purchase of treasury shares(10)

Disposal of treasury shares

0
1,120

408

575

2,104

170

2,274

Total changes during period

1,120

408

575

2,104

170

20,320

Balance at end of period

2,823

(310)

(858)

1,654

1,628

260,139

ANNUAL REPORT 2021

2020

2021

2021

Cash flows from operating activities
Profit before income taxes

4,876

5,218

47,132

Depreciation

380

402

3,631

Increase (decrease) in allowance for doubtful accounts

(1)

(8)

(80)

Increase (decrease) in provision for warranties for completed construction

3

(17)

(153)

Increase (decrease) in provision for loss on construction contracts

(110)

284

2,573

Increase (decrease) in provision for bonuses

396

130

1,178

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

19

(6)

(62)

Increase (decrease) in retirement benefit liability

41

185

1,674

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

(20)

(15)

(141)

Loss on retirement of non-current assets

23

3

33

Interest and dividend income

(51)

(51)

(461)

Interest expenses

9

6

59

Foreign exchange losses (gains)

76

(16)

(150)

Impairment losses

–

211

1,911

Decrease (increase) in trade receivables

4,140(2,828)(25,552)

Decrease (increase) in costs on construction contracts in progress

149

492

4,448

Decrease (increase) in other assets

(11)

70

632

Increase (decrease) in trade payables(1,328)

(76)

(694)

419

(62)

(566)

Increase (decrease) in advances received on construction contracts in progress

Changes during period

Net changes in items other thanshareholders’ equity

Thousands of
U.S.Dollars(*)

Millions of yen

Shareholders’ equity

Increase (decrease) in accrued consumption taxes

661

(704)

(6,360)

Increase (decrease) in other liabilities

(725)

240

2,168

Subtotal

8,949

3,456

31,220Interest and dividends received

48

53

485

Interest paid

(9)

(6)

(61)

Income taxes paid

(1,631)(2,077)(18,761)

Net cash provided by (used in) operating activities

7,357

1,426

12,883

(4)

(4)

(40)

Purchase of property, plant and equipment

(251)

(702)

(6,344)

Proceeds from sale of property, plant and equipment

24

16

147

Cash flows from investing activities
Purchase of investment securities

Payments for retirement of property, plant and equipment

(5)

–

–

Purchase of intangible assets

(14)

(29)

(268)

Proceeds from collection of loans receivable

34

46

423

Payments of guarantee deposits

(17)

(8)

(76)

Proceeds from refund of guarantee deposits

6

6

58

Other payments

(3)

(41)

(371)

Other proceeds

13

10

96

Net cash provided by (used in) investing activities

(217)

(705)

(6,375)

ANNUAL REPORT 2021

51

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

Thousands of
U.S.Dollars(*)

Millions of yen
2020

2021

2021

Notes
(Basis of Presenting Consolidated Financial Statements)

Cash flows from financing activities
Repayments of long-term borrowings

(274)

(274)

(2,474)

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 lease obligations

(15)

(12)

(109)

Proceeds from disposal of treasury shares

–

0

0

Purchase of treasury shares

(0)

(1)

(10)

Dividends paid

(1,334)(1,496)(13,520)

Net cash provided by (used in) financing activities(1,625)(1,784)(16,115)

Effect of exchange rate change on cash and cash equivalents

(148)

71

649

Net increase (decrease) in cash and cash equivalents

5,367

(991)

(8,957)

Cash and cash equivalents at beginning of period

13,346

18,713

169,034(Significant Items on Basis for Preparation of Consolidated Financial Statements)*1 18,713*1 17,722

160,076

1. Scope of Consolidation

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

Number of consolidated subsidiaries: 5
Midori Industries Co., Ltd.
Yamaguchi Earth Engineering Co., Ltd.
Shimane Earth Engineering Co., Ltd.
Ehime Earth Engineering Co., Ltd.
PT NITTOC CONSTRUCTION INDONESIA

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 with market quotations:
Valued at fair market value as of the consolidated fiscal year-end date (All changes in valuation difference are included directly in net assets.
Cost of securities sold is determined by the moving-average method).
Securities without market quotations:
Valued at cost based on the moving-average method.
2) Inventories• MerchandiseStated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets have been calculated by writing
down the book value based on the decline in profitability.)• Real estate for saleStated at cost using the specific identification method (The figures shown in the consolidated balance sheets have been calculated bywriting down the book value based on the decline in profitability.)• Costs on construction contracts in progressStated at cost using the specific identification method• Raw materials and supplies
Stated at cost using the first-in first-out method (The figures shown in the consolidated balance sheets have been calculated by writing
down the book value based on the decline in profitability.)(2) Depreciation methods of major depreciable assets
1) Property, plant and equipment (excluding leased assets): The declining-balance method is applied.
However, the straight-line method is adopted for buildings acquired on or after April 1, 1998, as well as facilities attached to buildings 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).

52

ANNUAL REPORT 2021

ANNUAL REPORT 2021

53

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements3) 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 therecognition.
The prior service cost is amortized by the straight-line method over a certain period (10 years) within the average remaining service period of
employees at the time of recognition, 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.”(7) Recognition standards for significant revenues and expenses
Recognition standards for net sales of completed construction contracts and cost of sales of completed construction contracts
1) Works for which the outcome of the construction activity is deemed certain with regard to the portion of construction in progress by the endof the consolidated fiscal year under review
The percentage-of-completion method has been applied to such works (the degree of completion of construction is estimated by the cost-tocost method).
2) Other works
The completed-contract method has been applied.

(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) Accounting procedure for consumption taxes and others
Transactions subject to consumption tax and local consumption tax are recorded at amounts exclusive of the consumption taxes.
2) Application of consolidated tax return system
The consolidated tax return system is applied.
3) 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).
(Significant Accounting Estimates)
Estimates of total construction revenue and total cost of construction work, to which the percentage-of-completion method is applied
1. Amounts stated in the consolidated financial statements for the consolidated fiscal year under review
Net sales of completed construction contracts based on the percentage-of completion-method is as described in “Net sales of completed
construction contracts, to which the percentage-of-completion method is applied for the consolidated fiscal year under review” in “I. Significant
Items on Basis for Preparation of Consolidated Financial Statements 4. Accounting Standards (7) Recognition standards for significant revenues
and expenses.”
2. Information that facilitates the understanding of details of accounting estimates(1) Calculation method
Revenues based on the percentage-of-completion method are measured based on the degree of completion of construction, which arecalculated based on the proportion of the actual cost incurred by the end of the consolidated 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 a timely
basis through interviews as well as inspections of construction-related documents including the statement of the working budget, which
are reflected in the calculation of the percentage-of-completion method. Constructions believed to have significant impact on the businessperformance are under intensive management involving executives both at branches and headquarters. 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.
(2) Major assumptions
Estimates of total construction revenue and total cost of construction work, to which the percentage-of-completion method is applied, involvecertain 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 long period of time, they may involve situations such as
design changes or revisions during the works, extension of the work period due mainly to adverse weather, and fluctuations in material or laborcosts.
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.
(3) 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 the (2) Major assumptions may, depending on the revisionin accordance with the progress of construction, have impact on the consolidated financial statements for the following consolidated fiscal year.
(Unapplied Accounting Standards, etc.)• Accounting Standard for Revenue Recognition (ASBJ Statement No. 29 issued on March 30, 2018)• Implementation Guidance on Accounting Standard for Revenue Recognition (ASBJ Guidance No. 30 issued on March 30, 2018)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) jointly developed comprehensive
accounting standards for revenue recognition and publicly released “Revenue from Contracts with Customers” (IFRS No. 15 for IASB; Topic
606 for FASB) in May 2014. Taking into account the circumstances in which IFRS No. 15 became applicable from the fiscal year beginning on
January 1, 2018, or later, and Topic 606 became applicable from the fiscal year beginning after December 15, 2017, the Accounting Standards
Board of Japan (ASBJ) has developed comprehensive accounting standards for revenue recognition and announced them together with theimplementation guidance.

Net sales of completed construction contracts, to which the percentage-of-completion method was applied, were ¥48,607 million ($439,048
thousand) for the consolidated fiscal year under review.

54

ANNUAL REPORT 2021

ANNUAL REPORT 2021

55

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

As a basic guideline for developing accounting standards for revenue recognition, the ASBJ’s starting point in prescribing accounting standards
was to adopt the basic principles under IFRS No. 15, from the perspective of comparability among financial statements, which is one of thebenefits in ensuring consistency with IFRS No. 15. In addition, it was determined that an alternative treatment shall be added within the scope of
not impairing such comparability in case there are any items to which attention should be paid to practices, etc., previously implemented in Japan.
(2) Scheduled date of application
To be applied from the beginning of the consolidated fiscal year ending March 31, 2022.
(3) Impact of applying the said accounting standards, etc.
The impact of applying the “Accounting Standard for Revenue Recognition,” etc., on the consolidated financial statements is currently being
evaluated.
(Accounting Standards for Fair Value Measurement, etc.)• Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30 issued on July 4, 2019)• Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9 issued on July 4, 2019)• Accounting Standard for Financial Instruments (ASBJ Statement No. 10 issued on July 4, 2019)• Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31 issued on July 4, 2019)(Consolidated Balance Sheets)*1 Accumulated depreciation of property, plant and equipment
As of March 31
2020

2021

2021

¥6,984 million¥7,164 million$64,710 thousand

2 Contingent liabilities(1) The Company guarantees loans payable for the purchase of its properties for sale.
As of March 31
2020
2 properties

2021¥1 million

1 property

2021¥0 million$4 thousand(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have developed detailed guidancewith practically the same contents for fair value measurement (IFRS No. 13 “Fair Value Measurement” under the International Financial ReportingStandards, and Accounting Standards Codification Topic 820 “Fair Value Measurement” under US GAAP, respectively). Given these circumstances,
the Accounting Standards Board of Japan (ASBJ) issued the “Accounting Standard for Fair Value Measurement,” etc. in order to ensure theconsistency with international accounting standards with regard to the guidance and disclosures of fair value of financial instruments.
The fundamental policy for developing these accounting standards by the ASBJ was that these accounting standards would basically incorporate
all provisions of IFRS No. 13 from the perspective of improving the domestic and international comparability of financial statements between
companies, through the use of a unified calculation method. On the other hand, by taking into consideration the Japanese accounting practice,
the ASBJ determined that separate accounting treatment for specific items would be adopted within a range that would not impair thecomparability of financial statements.
(2) Scheduled date of application
To be applied from the beginning of the consolidated fiscal year ending March 31, 2022.
(3) Impact of applying the said accounting standards, etc.
The impact of applying the “Accounting Standard for Fair Value Measurement,” etc. on the consolidated financial statements is currently being
eveluated.

(2) The Company guarantees housing funds, the loans payable of its employees borrowed from banks, in accordance with the Housing Loan Financing
Rules.

(Changes in Presentation)
Application of the “Accounting Standard for Disclosure of Accounting Estimates”*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:

The Company has applied the “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31 issued on March 31, 2020)
from the consolidated financial statements as at the end of the consolidated fiscal year under review, with notes on the significant accounting
estimates.

As of March 31
2020

2021

2021

¥1 million¥1 million$9 thousand(3) The Company guarantees the contractual obligations of the subsidiaries’ and affiliates’ construction contracts.
As of March 31
2020
Contractual obligations(PT NITTOCCONSTRUCTION INDONESIA)¥– million

2021

2021

¥142 million(IDR 18,812 million)$1,291 thousand

As of March 31
2020
Other

¥2 million

2021

2021

¥2 million$18 thousand

However, such notes do not provide details for the previous fiscal year, in accordance with the transitional treatment prescribed in the proviso of
Paragraph 11 of the said accounting standard.
*4 Presentation of inventories and provision for loss on construction contracts
Fiscal year ended March 31, 2020 (As of March 31, 2020)
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 ¥1 million.
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 ($707 thousand).

56

ANNUAL REPORT 2021

ANNUAL REPORT 2021

57

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

5 Commitment line agreements
The Company has entered into commitment line agreements with our four banks to facilitate efficient fund procurement of working capital.
The unused balance of the borrowings relative to the commitment line agreements as of March 31 was as follows:
As of March 31
Total amount of the commitment line
Balance of executed loans
Unused balance

Millions of yen

Thousands of U.S.Dollars

2020

2021

2021

2,200

2,200

19,871

–

–

2,200

2,200

19,871(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, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable
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.
Use

Type

Location

Assets planned
to be sold

Buildings and structures,and landSendai-shi, Miyagi

2021

2021

¥ (48) million¥285 million$2,575 thousand

Thousands of U.S.Dollars

41

373

Idle assets

Buildings and structures,
Futaba-gun, Fukushima
and fixtures

38

351

Idle assets

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

131

1,186

Fiscal year ended March 31
2020

Impairment losses
Millions of yen

Setagaya-ku,Tokyo*2 Major expense items of selling, general and administrative expenses and their amounts were as follows:
Millions of yen

Fiscal year ended March 31

2020

Thousands of U.S.Dollars
2021

2021

Provision for bonuses for directors

43

35

320

Employees’ salaries and allowances

2,873

3,064

27,677

Provision for bonuses

538

574

5,189

Retirement benefit expenses

256

257

2,322

(0)

(10)

(90)

Provision of allowance for doubtful accounts*3 Research and development expenses included in general and administrative expenses
Fiscal year ended March 31
2020

2021

2021

¥372 million¥336 million$3,034 thousand(Breakdown of impairment losses recognized)
Millions of yen
Buildings and structures

Thousands of U.S.Dollars

142

1,288

Fixtures

0

4

Land

23

216

Intangible assets(leasehold interests in land)

44

402

Total

211

1,911

(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.

*4 The breakdown of gain on sale of non-current assets was as follows:
Fiscal year ended March 31(Grouping method)
The Company has, in principle, grouped business-use assets by department/branch which are the minimum profit-reporting unit 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.

Millions of yen

Thousands of U.S.Dollars

2020

2021

2021

Machinery, vehicles, tools, furniture and fixtures

20

15

141

Total

20

15

141

(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.

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

58

Millions of yen

Thousands of U.S.Dollars

2020

2021

2021

Buildings and structures

19

0

3

Machinery, vehicles, tools, furniture and fixtures

0

3

30

Intangible assets (software)

3

–

–

Total

23

3

33

ANNUAL REPORT 2021

ANNUAL REPORT 2021

59

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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

2020

Thousands of U.S.Dollars
2021

2021

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

(127)

178

1,615

Amount of reclassification

–

–

–

Before tax-effect adjustment

(127)

178

1,615

Amount of tax-effect equivalent

39

(54)

(494)

Valuation difference on available-for-sale securities

(88)

124

1,120

Foreign currency translation adjustment
Accrued in the fiscal year

(81)

69

627

Foreign currency translation adjustment

(81)

69

627

Remeasurements of defined benefit plans

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 21, 2019

Commonshares¥917 million

Retainedearnings¥22.00March 31,2019

June 24,
2019

Board of Directors meeting held on
November 8, 2019

Commonshares¥417 million

Retainedearnings¥10.00

September 30,
2019

November 29,
2019(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, 2020

Commonshares¥1,167 million

Retainedearnings¥28.00March 31,2020

June 26,
2020

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

Accrued in the fiscal year

31

32

296

Amount of reclassification

66

59

532

Fiscal year ended March 31, 2021
Issued shares

Before tax-effect adjustment

98

91

829

Amount of tax-effect equivalent

(30)

(28)

(253)

Remeasurements of defined benefit plans, net of
tax

68

63

575

Total other comprehensive income

(102)

257

2,323

(Consolidated Statements of Changes in Net Assets)
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
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––

43,919,291

Total

43,919,291––

43,919,291

Common shares

2,209,511

1,463

50

2,210,924

Total

2,209,511

1,463

50

2,210,924

Treasury shares

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

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, 2020

Commonshares¥1,167 million($10,548 thousand)

Retainedearnings¥28.00March 31,2020

June 26,
2020

Board of Directors meeting held on
November 6, 2020

Commonshares¥333 million($3,013 thousand)

Retainedearnings¥8.00

September 30,
2020

November 30,
2020

Fiscal year ended March 31, 2020
Issued shares

Treasury shares
Common shares

2,208,256

1,255

–

2,209,511

Total

2,208,256

1,255

–

2,209,511

2. Dividends(1) Amount of dividends paid

Note: The increase in number of treasury shares represents the increase from the purchase of less-than-one-unit shares.
(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

60

ANNUAL REPORT 2021

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 25, 2021

Commonshares¥1,167 million($10,548 thousand)

Retainedearnings¥28.00March 31,2021

June 28,2021

ANNUAL REPORT 2021

61

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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
2020

2021

2021

Cash and deposits

18,713

17,722160,076

Cash and cash equivalents

18,713

17,722160,076

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, 2020 (From April 1, 2019 to March 31, 2020)
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 2021

(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.”

62

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, 2020, 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(3) Long-term borrowings
Total liabilities
Derivative transactions

Market value

Difference

18,71318,713–19,752

19,752

–

645

645

–

39,112

39,112

11,365

11,365

–

274

274

–

278

278

–

11,917

11,917––––

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.
(3) Long-term borrowings
As these instruments were determined with reference to fixed interest rates and the credit standing of the Company has not changed muchfollowing similar new borrowings. Accordingly, as their market values and book values are considered to be similar, their book values are
assumed as their market values.
Derivative transactions
The Group conducts no derivative transactions.

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

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

Available-for-sale securities (unlisted stocks)

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 2021

63

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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, 2020)(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

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.)

Over 10 years

18,713–––19,752

–

–

–

–

–

–

–

38,466–––(Millions of yen)

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

4. The repayment schedules for borrowings and lease obligations after the consolidated balance sheet date (March 31, 2020) are shown in the“Schedule of Borrowings,” a consolidated supplementary statement.

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

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.

64

ANNUAL REPORT 2021

Total liabilities
Derivative transactions

Market value

Difference

17,722

17,722–

22,58822,588

–

828

828

–

41,13941,139–11,33911,339

–

278

278

–

11,617

11,617–––(Thousands of U.S.Dollars)

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

160,076

160,076–

204,036

204,036

–

7,487

7,487

–

371,600

371,600–

102,421

102,421

–

2,511

2,511

–

104,932

104,932

–

–

–

–

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.”

ANNUAL REPORT 2021

65

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements

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.

(Securities)
Fiscal year ended March 31, 2020 (As of March 31, 2020)
1. Held-to-maturity debt securities (As of March 31, 2020)
Not applicable
2. Available-for-sale securities (As of March 31, 2020)(Millions of yen)

Carrying value inthe consolidatedbalance sheets

Derivative transactions
The Group conducts no derivative transactions.

Carrying value in the consolidated balance sheets

Available-for-sale securities (unlisted stocks)¥145 million

Difference

544

258

286

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

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

Acquisition cost

Shares$1,316 thousand

Bonds
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.

National government bonds, local
government bonds, etc.

–

–

–

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

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

544

258

286

100

115

(14)

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

Subtotal

100

115

(14)

Total

645

373

271

(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–––Withinone year

Total

Over one year
and within
five years

Over five years
and within
10 years

Over 10 years

160,076–––

204,036–––

ANNUAL REPORT 2021

Bonds

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

–

–

–

364,113–––

4. The repayment schedules for borrowings and lease obligations after the consolidated balance sheet date (March 31, 2021) are shown in the“Schedule of Borrowings,” a consolidated supplementary statement.

66(2) Securities with carrying value in the consolidatedbalance sheets not exceeding acquisition cost
Shares(Thousands of U.S.Dollars)

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

SubtotalClassification

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, 2019 to March 31, 2020)
Not applicable

ANNUAL REPORT 2021

67

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements(Thousands of U.S.Dollars)

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

Carrying value inthe consolidatedbalance sheets

2. Available-for-sale securities (As of March 31, 2021)(Millions of yen)
Carrying value inthe consolidatedbalance sheets

Acquisition cost

812

358

Difference

7,336

3,236

4,100

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

7,336

3,236

4,100

150

180

(29)

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

Subtotal

150

180

(29)

Total

7,487

3,417

4,070

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

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

453

Bonds
National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

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

Other

–

–

–

Shares

812

358

453

Bonds

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

16

20

(3)

Bonds
National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

Subtotal

16

20

(3)

Total

828

378

450

Note: Shares for which it is deemed extremely difficult to measure the market value
Classification
Available-for-sale securities (unlisted stocks)

Carrying value in the consolidated balance sheets¥145 million$1,316 thousand

Subtotal

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2020 to March 31, 2021)
Not applicable(Derivative Transactions)Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
1. Derivatives for which hedge accounting is not applied
Not applicable as no derivative transactions are utilized.
2. Derivatives for which hedge accounting is applied
Not applicable as no derivative transactions are utilized.
Fiscal year ended March 31, 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.
2. Derivatives for which hedge accounting is applied
Not applicable as no derivative transactions are utilized.

68

ANNUAL REPORT 2021

ANNUAL REPORT 2021

69

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements(Retirement Benefits)
1. Outline of adopted employee retirement benefit plans
The Company and its consolidated subsidiaries have adopted unfunded retirement benefit plans to provide for retirement benefits for theiremployees. Half of the retirement benefit plans are defined benefit plans and the remaining portion are defined contribution plans.
The defined benefit plans are lump-sum severance payment plans to provide retirement benefits by means of a point scheme based on service
period.
In the defined contribution plans, the contribution is clearly sectionalized by individual and the pension benefit amount is determined based on
the total of the contributions and the return on plan assets thereof.
In addition to the above, the Company and its consolidated subsidiaries are affiliated with the multiemployer plans of the Japan SOGO Employees’
Pension Fund (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.

Millions of yen
2021

2021

4,125

4,069

36,757

Service cost

242

232

2,101

Interest cost

14

18

169

Accrued amount of actuarial differences

(31)

5

45

Accrued amount of prior service cost

–

(37)

(342)

(281)

(125)

(1,130)

4,069

4,162

37,602Retirement benefits paid
Ending balance of projected benefit obligations

2021

242

232

2021
2,101

14

18

169

73

70

640

Amortization of prior service cost

(7)

(10)

(98)

322

311

2,814

Retirement benefit expenses relative to the defined
benefit plans

Fiscal year ended March 31

Millions of yen

Thousands of U.S.Dollars

2020

2021

2021

4,069

4,162

37,602

4,069

4,162

37,602

4,069

4,162

37,602

4,069

4,162

37,602Millions of yen

Thousands of U.S.Dollars

2020

2021

(7)

27

244

105

65

595

98

92

839

Prior service cost
Actuarial differences
Total

2021

(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
2020

Thousands of U.S.Dollars
2021

2021

Unrecognized prior service cost

16

43

397

Unrecognized actuarial differences

(245)

(179)

(1,624)

(228)

(135)

(1,227)Total(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

2020

Interest cost

Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Not applicable

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

Thousands of U.S.Dollars

Amortization of actuarial differences

As of March 31(2) Reconciliation of the beginning/ending balance of plan assets
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable

As of March 31

Millions of yen

Service costThousands of U.S.Dollars

2020

Beginning balance of projected benefit obligations

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

2. Defined benefit plans(1) Reconciliation of the beginning/ending balance of projected benefit obligations
Fiscal year ended March 31(4) Retirement benefit expenses and the breakdown of the amounts thereof(7) Matters regarding plan assets
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Not applicable(8) Matters regarding the basis for actuarial calculations
Major basis for actuarial calculations (presented in weighted average figures)
As of March 31
Discount rate

2020

2021

0.47%

0.50%

3. Defined contribution plans
The amount to be contributed by the Company and its consolidated subsidiaries under the defined contribution plans was ¥149 million for the
fiscal year ended March 31, 2020, and ¥145 million ($1,312 thousand) for the fiscal year ended March 31, 2021.

70

ANNUAL REPORT 2021

ANNUAL REPORT 2021

71

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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¥144 million for the fiscal year ended March 31, 2020, and ¥148 million ($1,337thousand) for the fiscal year ended March 31, 2021.

Effective statutory tax rate
Millions of yen

Thousands of U.S.Dollars

2020

2021

2021

Plan assets

19,544

20,345

183,768

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

15,731

16,160145,967

Net amount

3,813

4,185

37,801(3) Supplementary explanation
The major factor of the net amount in Item (1) above was the general reserve (¥3,813 million for the fiscal year ended March 31, 2020, and ¥4,185
million ($37,801 thousand) for the fiscal year ended March 31, 2021).
The ratios in Item (2) above do not agree with the Group’s actual ratios of contributions.
(Stock Options)Not applicable

Millions of yen
2020

Thousands of U.S.Dollars
2021

2021

Deferred tax assets
0––Real estate for sale

4

4

41

Accrued enterprise tax

76

77

696

Provision for bonuses

418

460

4,161

Allowance for doubtful accounts

9

9

86

Provision for warranties for completed construction

12

7

66

Provision for loss on construction contracts

0

86

780

Non-current assets (Impairment losses)

20

87

788

Defined contribution pension benefits payable

3

3

32

1,244

1,275

11,520

Unrealized gains

35

33

302

Asset retirement obligation

17

18

170

Retirement benefit liability

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

2021
(%)

30.6

30.6

Non-deductible expenses such as entertainment
expenses

0.8

0.2

Per capita inhabitant tax

2.5

2.3

Exclusion from revenues such as dividend income

(0.0)

(0.0)

Valuation reserve

(0.0)

(0.0)

Special deduction of income tax

(0.9)

(1.7)

–

1.1

Tax difference from overseas subsidiary

(0.9)

0.1

Other

0.0

0.4

Effective income tax rate after the adoption of taxeffect accounting

32.1

33.1

(Asset Retirement Obligation)
End of fiscal year ended March 31, 2020 (As of March 31, 2020)
This information is omitted due to its immateriality.
End of fiscal year ended March 31, 2021 (As of March 31, 2021)
This information is omitted due to its immateriality.

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

Loss carried forward

2020(Reconciliation)

Accumulated earnings tax(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, 2020: 16.49% (As of March 31, 2019)
Fiscal year ended March 31, 2021: 16.17% (As of March 31, 2020)

As of March 31

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

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

272

266

2,410

2,114

2,331

21,057

(65)

(66)

(596)

2,049

2,265

20,461

(83)

137

1,246

(83)

137

1,246

1,966

2,127

19,215(Segment Information, etc.)[Segment Information]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
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.
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.

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

72

ANNUAL REPORT 2021

ANNUAL REPORT 2021

73

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceCorporate
Overview and
Major Construction
Methods

Consolidated
Financial
Statements

Consolidated Financial Statements[Related Information]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
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, 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.
[Information on Impairment Losses of Non-Current Assets by Reportable Segment]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
The information is omitted as the reportable segment is solely the construction business.
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.
[Information on Amortized Amount and Unamortized Balance of Goodwill by Reportable Segment]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable
Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Not applicable[Information on Gain on Bargain Purchase by Reportable Segment]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable[Related Party Information]
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(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 (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(Per-Share Information)
Fiscal year ended March 31

2020

2021

Net assets per share¥632.68¥686.19$6.20

Basic earnings per share¥78.12¥83.93$0.76

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

Diluted earnings per share

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

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

Millions of yen
2020

Thousands of U.S.Dollars
2021

2021

Basic earnings per share
Profit attributable to owners of parent

3,258

3,500

31,618–––

Profit attributable to owners of parent regarding
common shares

3,258

3,500

31,618Average number of common shares
during the fiscal year

41,710

Amounts not attributable to common shareholders(Thousands ofshares)41,709(Significant Subsequent Events)
The Company, at its Board of Directors meeting held on May 7, 2021, resolved to cancel its treasury shares as follows, pursuant to the provisions ofArticle 178 of the Companies Act.
1. Reason for cancellation of treasury shares
The Company had held a certain number of treasury shares with a view to enhancing flexibility in its capital policy. However, due to the absence ofspecific use of the treasury shares at the moment, along with our belief that it is desirable to increase ratio of tradable shares in the stock market,
the Company decided to cancel its treasury shares as follows.
2. Details of the cancellation of treasury shares(1) Class of shares to be cancelled: Common shares of the Company(2) Number of shares to be cancelled: 2,210,924 shares(The ratio against the total number of shares outstanding before the cancellation: 5.03%*)(3) Scheduled date of cancellation: May 31, 2021
* The aforementioned ratio is calculated based on the number of shares held by all shareholders as of March 31, 2021.

Fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)
Not applicable

74

ANNUAL REPORT 2021

ANNUAL REPORT 2021

75

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

Consolidated Financial Statements5) [Consolidated Supplementary Statements][Schedule of Bonds Payable]
Not applicable(2) [Other]
Quarterly data for the fiscal year ended March 31, 2021

[Schedule of Borrowings]
Beginning balance of the
fiscal year ended
March 31, 2021

Ending balance of the
fiscal year ended
March 31, 2021

Millionsof yenThousands of
U.S.Dollars

Millionsof yenThousands of
U.S.Dollars

–

–

–

Current portion of long-termborrowings

274

2,474

Current portion of lease obligations

12

Long-term borrowings (excluding
the current portion of long-termborrowings)

278

Lease obligations (excluding thecurrent portion of lease obligations)

9

86

5

51

–

–

Other interest-bearing debt

–

–

–

–

–

–

573

5,181

287

2,597

–

–

Classification

Three months(From April 1, 2020 toJune 30, 2020)

Six months(From April 1, 2020 to
September 30, 2020)

Nine months(From April 1, 2020 to
December 31, 2020)

Fiscal year ended
March 31, 2021
(From April 1, 2020 toMarch 31, 2021)

13,72530,76749,48567,955

Profit before income taxes(Millions of yen)

760

2,078

4,135

5,218

487

1,358

2,751

3,500

Cumulative periods

Short-term borrowings

Total

Net sales(Millions of yen)

Averageinterest rate(%)

Repayment
deadline

–

–

–

278

2,511

0.25

–

Profit attributable toowners of parent(Millions of yen)

109

3

34

–

–

Basic earnings per share
(Yen)

11.68

32.57

65.97

83.93

2,511

–

–

–

–
Accounting periods

First quarter(From April 1, 2020 toJune 30, 2020)

Second quarter(From July 1, 2020 to
September 30, 2020)

Third quarter(From October 1, 2020 to
December 31, 2020)

Fourth quarter(From January 1, 2021 toMarch 31, 2021)

11.68

20.90

33.40

17.96

Quarterly basic earnings
per share (Yen)

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:
Over one year
and within
two years

Over two years
and within
three years

5–

Classification

Over one year
and within
two years

Over two years
and within
three years

Lease obligations(Thousands of U.S.Dollars)

51–

Classification
Lease obligations(Millions of yen)Over three years
and withinfour years–
Over three years
and withinfour years–

Over four years
and within
five years–
Over four years
and within
five years–[Schedule of Asset Retirement Obligation]
This information is omitted due to its immateriality.

76

ANNUAL REPORT 2021

ANNUAL REPORT 2021

77

Corporate
History78

ANNUAL REPORT 2021

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
Financial
Statements

Corporate
Overview and
Major Construction
Methods

ANNUAL REPORT 2021

79

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Introduction ofDomestic
Construction Project

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Overseas
Deployment

International
Business

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated
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: Listed on the First Section

Number of
Employees(Consolidated)

Construction business: 1,245 persons
Other business: 12 persons
Total: 1,257 persons
Note: The total number of employee is including the 262 temporary employee which is an annual average number.

Description ofBusiness

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

LicenseSpecified Construction Business—License No. (Specified-28) 211, issued by the Minister of Land, Infrastructure, Transport andTourism

Business Lines

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

Sales Offices

Asahikawa / Hakodate / Doto / Aomori / Morioka / Sanriku / Akita / Yamagata / Fukushima / Gunma / Utsunomiya / Mito /Chiba / Saitama / Yokohama / Nagano / Sado / Joetsu / Kanazawa / Fukui / Toyama / Gifu / Mie / Shizuoka / Keiji / Kobe / 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 JapanPT NITTOC CONSTRUCTION INDONESIA
GENERALI TOWER GRAN RUBINA BUSINESS PARK 16th Floor Unit G
Jl. HR Rasuna Said, Kuningan Jakarta 12940, Indonesia

Staffing(Qualification
Holders)(Persons)

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

Total 1,257
50
648
718
7
312

Major Construction Methods
Urban Regeneration Field
WinBLADE Method

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

Expacker-N Method

Liquefaction countermeasure method that enables high capacity and speedy grouting

Power Blender Method

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

EinBand Drill

Japan’s 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 along distanceDisaster Prevention and Environmental Conservation Field

80

ANNUAL REPORT 2021

Geofiber Method

Protection of slopes and the environment by forming the reinforced soil using sand and fibers

Nekko Chip Method

Surplus soil and raw chip material from felled trees are processed as foundation materials for greening work

Kaerudo-Green Method

Recycled use of a wide variety of soils such as the surface soil of forests and dehydrated cake for thegreening of slopes

Plant-Leading Spraying Method

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

Fiber Soil Greening Step Method

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

ANNUAL REPORT 2021

81