NITTOC CONSTRUCTION CO., LTD.

Leading to the Future with our Technology of Protection

HEADQUARTERS
4F, 5F and 6F, Daiwa Higashi-Nihonbashi Bldg.,
3-10-6, Higashi-Nihonbashi, Chuo-ku, Tokyo 103-0004, Japan
TEL +81-3-5645-5050 FAX +81-3-5645-5051
The Corporate Strategy Division
TEL +81-3-5645-5080 FAX +81-3-5645-5083

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

2020
Annual ReportLeading to the Future with our Technology of Protection
MISSION
With efficientmanagement andcomprehensive
technical capabilities
in foundation work,
we are the company
that provides safe
and secure society
and contributes
to countries.

28

02

Corporate History

04

Advantage of NITTOC

06

Financial Highlights

08

Message from the President

29

Summary of theMedium-Term
Management Plan

30

Overseas Deployment

35

Environmental Responsibility

10
12

Our Award-Winning
History

Fiscal 2019 Construction
Technology Exhibition
Achievement

Disaster Prevention andEnvironmental Conservation

36

16

Urban Regeneration

20

Maintenance and Renovation

24

Special Features

Landscape Conservation
Technology for Cultural Properties

CONTENT

26

Domestic Construction
Projects

37

Contribution to Society

39

Corporate Governance

40

Management Members

42
77

Consolidated Financial
Statements
Corporate Overview and
Major Construction Methods

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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 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)

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

1986 March

Completed Tsukuba Laboratory.

1990 May

2001 March

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.

1980

2017
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).

2008 March
Closed Tsukuba Laboratory.

2009 March

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

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

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

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

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

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

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

Established Japan Public K.K.

1965 March
Headquarters relocated to
Chuo-ku, Tokyo.

1972 May

Trade name changed to NITTOC CONSTRUCTION CO., LTD.

ANNUAL REPORT 20202015 December

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

National Route No. 30
Mukaiyama-minami Work of the
Honshu-Shikoku Bridge Authority(Kagawa Prefecture)02

Sold the Akashi-cho Suboffice Building

2000

1985 October

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.

Headquarters relocated to
Chiyoda-ku, Tokyo.

2015 September

Otsuchi Town, Ando Area reconstruction work
(Otsuchi Town, Kamihei District, Iwate Prefecture)

ANNUAL REPORT 202003

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.

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

3 Types of Business Field respondto Social Needs

200

types of technology
We are holding
and construction method

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 2020

ANNUAL REPORT 202005Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectSpecial Civil Engineering
OthersFinancial Highlights

International
Business
Environmental

Landscape Conservation
Technology ofCultural Property
Contribution to Society

Operating income·Ratio to Net Sales

Net sales

Financial Highlights

International
Business

Operating income

General Civil Engineering

Contribution toSociety
Corporate
GovernanceCorporate
GovernanceConsolidated Financial
Statements

Ordinary income·Ratio to Net Sales

Ratio to Net Sales

Operating income

Ratio to Net Sales(Millions of yen)

(Millions of yen)(%)

(Millions of yen)(%)

80,000

5,000

8.0

6,000

8.0

7.5%

7.4%
7.0

Thousands of
U.S. dollars

Millions of yen

2016

2017

2018

2019

2020

2020

¥57,638¥57,174¥62,943¥63,264¥65,516$602,009

Ordinary income

3,431

3,555

4,119

4,004

4,880

44,841

Profit attributable to owners of parent

2,110

2,342

2,688

2,721

3,258

29,942

Net sales

62,943 63,264
60,00065,516

5,000
6.0%

6.3%

6.5%

6.3%

4,903

1,894

2,458

2,668

2,755

3,209

29,488

Net assets

19,781

21,81323,256

24,676

26,550243,961

7.0

6.0%

6.0

57,638 57,174
4,100
4,000
3,465

40,000

6.5%

5,000

6.2%

3,970

4,000
5.0

3,583

3,000

4.0

3,431

6.3%

4,880
6.0

4,119

4,004
5.0

3,555

3,000

4.0

3.0

3.0
2,000

Comprehensive income

2,000

20,000

2.0

2.0
1,000

1,000
1.0

1.0

Total assets

40,38544,225

48,142

49,04850,159460,893

Net cash provided by (used in)operating activities

(630)

2,501

(301)

3,108

7,357

67,606

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

(393)

(867)

(1,252)(217)(1,995)

0

0
2016

2017

2018

2019

Cash and cash equivalents
at end of period(1,592)
12,681(321)
14,462(144)
13,114(1,624)
13,346(1,625)

0

2020

2016

Net income·Ratio to Net Sales
Net income

Net cash provided by (used in)financing activities

Corporate
Overview and
Major Construction
Methods

2017

2018

2019

0

Interest-bearing debt

0
2016

2020

2017

2018

2019

2020

Total net assets·Equity Ratio

Ratio to Net Sales

Total net assets

Equity Ratio(14,933)

18,713

171,954(Millions of yen)

(%)

4,000

7.0

(Millions of yen)

4,000(Millions of yen)(%)

30,000

60

52.6%
3,258

Pipe jacking

20.8%

2.5%

3,000

5.0%

Groundimprovement

4.1%

25.7%

50

3.7%

4.2%

2,721

21,813 23,256

3,000
20,000

4.3%

19,781

40

4.0
2,342
2,000

15,00030

10,000

20

5,000

10

2,110
3.0

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

79.2%

Maintenanceandrenovation

13.4%

Pile foundation

6.1%

Slope
protection

44.8%

1,100

2.0
1,000

1,000

826
552

1.0

Dam Grouting

4.3%

0

0
2016

ANNUAL REPORT 2020

26,5505.0

2,000(ratios in net salesof completed
construction contracts)

06

48.6% 49.0% 48.1%

50.0%
24,676

2,668

Public-Private
proportion

25,000

Others3.2%

Private sector

6.0

2017

2018

2019

2020

0

0

0

2016

2017

0

0
2018

2019

2020

2015

2016

2017

2018

2019

ANNUAL REPORT 202007Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

For Stakeholders

Message from the President
NITTOC CONSTRUCTION CO., LTD. (“NITTOC” or the“Company”) was established over 70 years ago. Since

perspective. The Company positions the businessstrategy over these three years as a period to “enhance its

starting dam foundation works as its initial job, we havebeen garnering immense praises as a contractor
specialized in the soil related works such as Disastertechnical and sales strengths in the maintenance andrenovation field, with an eye on the long-term changes
in the construction market,” and “increase its market share

Prevention and Environmental Conservation,
Maintenance and Renovation, Urban Regeneration.
Nowadays, natural disasters such as earthquakes,

by developing competitive technologies, while striving
to secure personnel and improve productivity led by the
implementation of work style reforms,” and “earning thetyphoons and heavy rains have occurred frequently inJapan, and therefore the construction industry is required
to respond to strengthening the national land andreducing disasters in the country. Moreover, aiming to
improve the productivity with Work System Reform,
development of human resources who will support our
future is also a major issue in the construction industry.
We have started a new mid-term management plan fromfiscal 2020.
While we believe the current robust construction market
is expected to continue for the three years starting infiscal 2020, we consider this period, which signals thecontraction 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 thetrust 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 toachieve these goals, which include the tackling of various
industry issues, expansion of foundation improvement
work, and expansion of slope repair work.
It is our sincere desire to fulfill our social responsibilities
as a company engaged in the construction business,based on our management philosophy of “a company
that provides a safe and secure society and contributes
to countries” with its “efficient management andcomprehensive technical capabilities in foundation work,”
and will further work to contribute to the realization of asustainable society. We appreciate your further guidanceand encouragement.

Japanese construction market from a long-term

Norihisa Nagai
President & Representative Director

08

ANNUAL REPORT 2020

ANNUAL REPORT 202009

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business
field

Summary of the Medium-Term Management Plan

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
Business

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

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

Value:

Management
Strategy

Efficient management and comprehensive
technical capabilities in foundation work

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

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

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

3. Business Targets and Indicators
5. Performance Plans
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

Consolidated

Fiscal 2020

Fiscal 2021

Fiscal 2022

3–year total

Orders received

66.4

70.5

72.2

209.1

Net sales

64.4

69.4

71.5

205.3

Operating income

4.0

4.5

4.8

13.3

Ordinary income

4.0

4.5

4.8

13.3

Net income

2.6

2.9

3.2

8.8

Equity ratio

51.2%

51.8%

52.4%

-

4.4

4.9

5.3

14.7

EBITDA (operating income + amortization)

10

ANNUAL REPORT 2020

(Unit: Billion yen)

ANNUAL REPORT 202011

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

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

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.

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

Construction Technology
Review and Certification

NNTD No. 0374

Growth Foundation for Plants Mainly
Consisting of Raw Chip Material

Using Surface Soil Instead of Seeds

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

• 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 of Land,
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)

NETIS PLUS

Comparison of the Volume Utilized

Environment-Friendly
Slope Protection Method

OnsiteSurplus Soil
100m3

Geofiber Method

Raw Wood
Chip

40m3

NEKKO Chip Method

50m3

Fiber

Continuous
fiber-reinforced soil

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.

Surface Soil-Based GrowthFoundation for Plants
KAERUDO-Green Method

KAERUDO-Green Method• Utilizes surface soil of forests
economically.
• Recycles a wide variety of soils suchas excavated soil, dredged soil anddehydrated cake.

100m

3

40m3
25m3

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

Sand

NNTD No. 0369

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)

Native Recovery Greening Method

Using Surface Soil and
Raw Chip Material
NEKKO Chip Method

During the work (Kiyomizu-dera Temple, Kyoto)• 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.

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 2020

ANNUAL REPORT 202013

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

Our Business field

Slope Frame
and Ground Anchor

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

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

Displacement
gauge
Jack
Main body of thecontrol unit

Data monitoring anddata storage
Jack operation

Simultaneous tightening of multiple anchors

Slope frames

Tensile Strength Monitoring System
for Installed Anchors

NETIS No. TH-140015-VR

Plastic Pressure Receiving
Plate for Rock Bolts

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

Aki-Mos• A load meter is attachable to an installed anchor.
• The attached load meter is exchangeable.

NINJA Panel• 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.

Ground anchors + Pressure receiving plates

Dedicated jigs

NETIS No. SK-100014-VE

Greening of Mortar Shotcrete
Surfaces and Bedrock

Recovering Greenery on
Strongly Acidic Soil Slopes

Fiber Soil Greening Step Method

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

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

Wireless
communication

Load meter

Installed anchor

Sprayedfoundation
Hole for root system

Measurement data-acquisition system

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

Sander Bio

Approximately 20 cm in depth
for the development of aroot system

Creating horizontal parts
Dispersion of surface water

Spore of VA mycorrhizal
fungusConcave
portion: 5-7 cm
Convexportion: 13-15 cm
GroundAverage spraying
thickness: 10 cm

Fungal hyphae entering
the root of a plant

Fungal hyphae of VA mycorrhizal fungus
DCS Method

Re-Born Pile Method
Rock Bolt Workby SSB

Soldier Pile Panel
Wall Method

Splitz Anchor
MethodØ2,200 mm

Ripraplayer
Anchor Method by
the EinBand Drill

14

ANNUAL REPORT 2020

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

New ACE Method
Ø4,800 mm

Cutting
blade

Splitz Anchor
MethodSmall Diameter
Pile Method+
Ground Anchor

WinBLADE Method

N-Jet Method

Expacker-N Method

Power Blender Method
盛土

Small Diameter Ø65–350
Pile Method mm

Building Anchor
Technology

Maximum diameter of
improvement: 2,000 mm

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: 4,000 mm

ANNUAL REPORT 202015

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Business field

Our Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
Business

International
Business
Environmental

Bit opens.

Ø80
0m
m

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

Construction Performance, Method, and Technology• 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.

Anchorbody

Conventional Anchor

Splitz Anchor
In case of a close siteboundary
Site boundary

Japan’s Largest-Class
Double-Tube Drill Machine

SSB

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

In case of a deep
bearing stratum• Cuts and removes existing piles and/or
underground structures using two
cutting blades.
• Uses a circumferential all-casing drill.
• Makes secure backfilling
possible.
Bearing
stratum

Bearing
stratum

Enlarged-diameter bit
Cutting blade

2,000 mmOrdinary trencher

Construction Technology Review
and Certification

NNTD No. 0375

4,860

mm

2,380 mm

• 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).

DSS 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.

New ACE Method• Maximum design strength of concrete: 60 N/mm2• Maximum diameter of the expanded base portion: 4,800 mm (shank diameterof 2,200 mm)

Special Grouting Materials

Building Anchor Technology

Slag Turbid Ground-grouting Material

Cement grouting material

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

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

• Solution-like high level of penetration• Applies to grouting for minor cracks• Available for uses in diverse grouting
methods• Prevents buildings lifting and/or
falling of buildings(seconds)

210

Ordinary Portland cement(no permeation)

180
150
120
90
60
30
0

ANNUAL REPORT 2020

Earth Drill with Expanded Base Pile

Expanded base bucket

Well Logging System Using a
Drilling Bore

16

Architectural Evaluation

State of drilling operation

Extremely ultrafine
particle cement B
MX grout

Extremely ultrafine
particle cement A
Utility water
Conceptual image of particle size

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

Uniaxial compression strength (MN/m2)

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

• 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.

Re-Born Pile Method

Bearing
stratum

Soldier Pile Panel Wall Method

Ordinary drill machine

Corporate
Overview and
Major Construction
Methods

NNTD No. 0365

Earth Retaining Wall Method that Combines
Soldier Piles with Concrete Panels
SSB

Consolidated Financial
Statements

Small Diameter
Pile Method

Site boundary

Bearing
stratum

EinBand Drill

2,000 mm

Corporate
Governance

Removal of Existing Piles

Japan’s Smallest-Class
Double-Tube Drill Machine

1,000 mmContribution toSociety
Corporate
GovernanceForming Piles with High Bearing Power at
Narrow Spaces

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

Urban Regeneration

Landscape Conservation
Technology ofCultural Property
Contribution to Society

MX grout(5 μm)

5.0

Slow solidification
type (sand gel)

4.0
3.0
2.0

Extremely ultrafine particles
Instant solidification
type (homogel)

1.0
0.0

Coefficient of permeability (m/sec)
Grain size (mm)
Soil type
Grouting material

0

10

20

30

40

50 Material age (days)

MX grout
Ordinary Portland cement

10-2 10-3 10-4 10-5 10-6
2.0
0.42 0.075
0.005
Sand
GravelSilt
ClayCoarse sand Fine sandOrdinary Portland
cement(20 μm)Extremely ultrafine
particle cement(1.5 μm)

Conceptual image ofparticle size

ANNUAL REPORT 202017

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

Our Business field
Jet Grouting Method

Mechanical Mixing Method

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

Ultrahigh Pressure Injection Mixing Method forLarge-Diameter Foundation Improvement

N-Jet Method

SUPERJET Method• Enables the formation of columnar soil (depending on the groundconditions)• Forms fan-like improved soil through oscillation.
• Grout is sprayed from multiple nozzles, shortening formation injection
time while reducing the amount of hardening agent used and theamount of slime produced• 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.

Oscillatingrotation

Mechanical Mixing Method Combined with
High-Pressure Injection Using an Enlarged
Mixing Blade

RotationJet ofhardening
agent

Jet ofhardeningagent

In case of columnar improved soil

GI Column Method• Single-axis (max. 20 m) slurry mixing method with Ø800–1,600 mm is available.
• 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.

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

Construction Technology
Review and Certification

NNTD No.1279

Shallow and Middle-Depth Layer Mixing Method
Power Blender Method(slurry shooting method)

NETIS No.CBK-190001-A

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

Grouting Control andMonitoring Device

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.

Controls
flow rate
Integrating flowmeter

Grout pump

Grouting site

Up to eight sets

Chemical Grouting Method
NETIS No.KT-190012-A

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

Mechanical Mixing Method Suitable at Narrow Spaces

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

Control Units and Real-time Displays

Discharge Image

NNTD No. 1275

• Trencher-type mixing machine• Makes improvement up to 13 m in depth available.
• Makes homogeneous, improved soil via vertical mixing.

• 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.

In case of fan-like improved soil

NETIS No. QS-100022-VE
Technology Promoted for Utilization

NETIS No. KT-170026-A

L-Spin Column Method

Jet ofhardening
agent

Building Technology
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-NInternal-pressurerelief blades

Underground Diameter Expanding Type
Soil-Mixing Improvement Method

Opposite Direction Mixing-Type Deep-Layer
Mixing Method Compatible with Hard Ground

WinBLADE Method

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

• 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 ofinternal
bladesRotational
direction of
external
blades5) Completionof work

Control unit
Enlarged-diameter bitØ 1,200 mm

Injection of
permanent
grout

Polygonpipe

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

Discharge of cement milk

CasingNew Sleeve Grouting Method

18

ANNUAL REPORT 2020

Conventional Method(sleeve grouting method)

ANNUAL REPORT 202019

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

Our Business field

Maintenance and Renovation

Japan’s First Steel Wire Cutting & Removal Method for Installed Anchors
Bite Off Method
Method to cut and remove installedanchors using proprietary bits

Method and Technology• 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).

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.

After removal
New installed anchor

Additionally installed anchors

Installed anchor

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.
Displacement of joint

Flaking

Tilting

Void

Joint opening

Example ofCountermeasure Work
Removal of loose
portions

Large crack with aconsiderable opening

Grouting incrack

CD Type bit(for covered drilling)

Step

SH Type bit(for steel wire cutting)Installed anchor

Removal

New installed anchor

Cross-section
repair

NNTD No. 0372

Swelling

In addition,
Deformation of frame

DamageOutflow of earth andsand sediments

For the Life Elongation of Structures

Filling Voids with High-Quality Plastic Grout
Parfait Grout Method• 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.

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, T
ransport and Tourism.

Plasticity andself-sustainability

Surface coating(to restrict salt or
freezing damage)

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

Safe removal of loads on installed nut anchors
Load releaser

Underwater inseparability

Non-contractility

NEW• Hydraulic cylinders are used to break nuts using a cutter and safely remove loads from installed nut anchors,even for anchors without excess length or anchors which had suffered extensive corrosion

Before breaking

Before hardening

After hardening

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

After breaking* This technology was jointly developed with Daia Consulting Co., Ltd., Dainichi Consultant, Inc., and Nippon Insiek Co., Ltd.

20

ANNUAL REPORT 2020

ANNUAL REPORT 202021

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

Preventive Maintenance of Concrete Structures

Our Business field

Frame Doctor Method• 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.

Received the Inventive Idea & Development Technology Award at the 18th National Land Technology Development Award

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

NNTD No. 1084

Work Flow
Shaving off
deteriorated portions

Repair/Reinforcement of Aged Shotcrete Slopes
New ReSP Method

Washing• 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/2m2

Completed construction

Grinding andrustproofing of
reinforcing bars

6. Organic-fiber-reinforced
mortar spraying workt =7cmRenovation of thecross-section

Surface coating

Shear bolt
Organic-fiber-reinforced mortar

d
ere
ath
(We area)

2. Rear-void
grouting work

nd

(Sou

Mortar Shotcrete Possible to 1 km Destination

A

)

tion

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

Spray nozzle

Kiro Fukeru Method

4. New installation work of drain pipes

COGMA
system• 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.

Hardening
accelerator pump

Grout mixer

Reinforcing Slopes with Shotcrete Pressure Receiving Plates and Rock Bolts
Shotcrete Pressure Receiving Plate Method (FSC Panel)• Pressure receiving plates are formed by combining the fiber-reinforced mortar shotcrete and the reinforcing
material.
• As the pressure receiving plates are formed by shotcrete spraying, unevenness adjustment is no longer
necessary.
• The layout space in between rock bolts is extendable up to 2 m.

Shotcrete pressurereceiving plate(FSC panel)Compressed air

Existing mortar/
shotcrete

Hardening accelerator

GroundBefore construction

por

Existing mortar /concrete

NETIS No.HR-140019-A

m

0c

x. 5

ro
pp

Compressor

Reinforcing
material

Materials

Existing sprayedmaterial

Material compression pump

Rock bolt

Shotcrete portion
with increased
thickness

Agitator

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

Max

d gro
und

Weath

ered gShear bolt

SounMax. 2,000

round

Drain pipe

Installation of reinforcing material

Spraying of fiber-reinforced mortar

Completion of work

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

NNTD No. 0366Aged Shotcrete Slope Diagnosis System
Slope Doctor• Precisely diagnoses the soundness of aged shotcrete slopes through the combination of several
relevant surveys.
• Proposes optimum slope designs by reflecting social needs in the results of the diagnosis of aged
shotcrete slopes.
Analysis method: thermal infrared radiation imaging method, flexural oscillation method and coring method(combined use depending on the site conditions)

22

ANNUAL REPORT 2020

Mortar Shotcrete for a Long Distance and at Elevated Places
HiSP Method

. 2,0

00

NNTD No. 0364

Max

. 2,0

00

Unit: mm

Abrasion-resistant spray hose

• 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.

Air pressure
sprayer

Grout pumpThick state

Hardening accelerator hose

Hardening
accelerator+ air hose

Air hose (for hardening accelerator)
Air hose (for mortar feed)

Airing pipe
Taper pipe
Concretepump

Pressure-resistant hoseCompressor
Generator

Receivertank

Concrete pipe

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

ANNUAL REPORT 202023

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

SDGs Initiatives

SDGs

From these, we will introduce our environmental initiatives.

NITTOC is implementing initiatives for achieving the SDGs.
NITTOC conducts its business under its mission and one of its management philosophies of fulfilling its role as a company thatprovides a safe and secure society and contributes to countries. Through initiatives related to social issues such as the SDGs, we will
work to realize our management philosophies, as well as contribute to the realization of a sustainable society.
Slope work in the Yunokami area of Shirakawa City, Fukushima Prefecture, which was affectedby the Tohoku Earthquake & Tsunami

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

Max. 2,000cm

Shear bolt)

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.

Existing mortar/
shotcrete

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

Max
. 2,0
00

Max

groun
d

. 50
rox
App

n
rtio

ANNUAL REPORT 2020

Rock bolt

Soun
d

red
athe
(We area)

24

Existing sprayedmaterial

Drain pipe

o
nd p
(Sou

Thorough compliance
Build a risk management system and strengthen process management

Reinforcing
material

Shotcrete portion
with increased
thickness

Reduction of CO2 Emissions

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

Shotcrete pressurereceiving plate(FSC panel)

Organic-fiber-reinforced
mortar spraying workt =7 cm

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

Shotcrete Pressure Receiving Plate Method (FSC Panel)

New ReSP Method

round

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

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.

ered gCompleted construction

Weath

Before construction

. 2,0

00

Unit: mm

New Sleeve Grouting Method
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 202025

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

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

Domestic Construction Projects

Initiatives for the Restoration and Reconstruction
from the Tohoku Earthquake & Tsunami(earthquake- and disaster-proof works)

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

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

Before construction

Yoshino Area 2 (Zones 1 to 3)
Disaster-related Emergency Forest
Conservation Work

Under construction

Otsuchi Town, Ando Area
Reconstruction Work

(Otsuchi Town, Kamihei District, Iwate Prefecture)
As part of the restoration of Otsuchi Town, which suffered major
damage in the Tohoku Earthquake & Tsunami on March 11,
2011, the Company carried out reconstruction work including
infrastructure repair, land readjustment (170 buildings), andthe relocation of disaster prevention groups to higher land (91buildings). These projects were completed in September 2019.

After completion

Orderer:
Contractors:

Otsuchi Town, Kamihei District, Iwate Prefecture
Maeda Corporation, JDC Corporation, NITTOC, Pasco, and Oyo Corporation
Joint Corporate Association
Project Overview: (Ando area) Land readjustment project: 170 buildings Disaster prevention
group relocation project:91 buildings(Atsuma Town, Yufutsu District, Hokkaido)

After completion

The Company employed on-site spray slope frame and planting
sheet installation methods to protect the slopes that collapsed asa result of the Hokkaido Eastern Iburi Earthquake of September 6,
2018. The Hokkaido Iburi General Subprefectural Bureau placedorders for roughly 20,000 m2 of slope frame work and roughly
31,500 m2 of planting sheets for the Yoshino Area. Of these, theCompany provided 15,000 m2 of slope frame work and 23,000 m2of planting sheet installations.

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, andplanting sheet installation

Initiatives for Restoration and Reconstruction2018 Yoshino Area 3 Disaster
Prevention Work

After completion

Under construction

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

In the region affected by the Hokkaido Eastern Iburi Earthquake of
September 6, 2018, the construction of an erosion control dam (H=7m, L=101 m) was planned to prevent downstream landslides during
future floods. The Company carried out foundation improvement
work (power blender work, V=9,800 m3) as a part of this project.
Since there were homes nearby, heavy equipment was brought inand taken out at sunrise, and construction work was performed withattentive care.
Orderer:
Owner:
Project Overview:

26

ANNUAL REPORT 2020

(Sagamihara City, Kanagawa Prefecture)
During heavy rains, traffic restrictions are applied to the Yoshino
Area of National Road 20 in Midori-ku, Sagamihara City. As partof efforts to improve roads to ensure the ability to travel safely
in heavy rains, we performed slope frame work and new ReSP
method construction.
Orderer:
Project Overview:

Ministry of Land, Infrastructure, Transport and Tourism; Kanto Regional
Construction Bureau; Sobu National Highway OfficeTemporary protective fence installation, rockfall protection fence installation

Hokkaido Muroran Department of Public Works Management
Seiko and Maruhironozawa Earthquake Disaster Recovery Construction Special
Joint Corporate Association
Power blender method

ANNUAL REPORT 202027

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

Fairs Where We Plan to Exhibit

Our Award-Winning History

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

Fiscal 2019 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. At present, we intend to present our technologies at such fairs listed below in thecurrent fiscal year.
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 2019 Construction Technology Fair Exhibitions
No.

PeriodName of Construction Technology Fair

Organizer

Venue

1

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

EE Tohoku ’19

EE Tohoku Executive Committee

Yume Messe Miyagi Hall

2

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

Geotechnical Engineering ResearchPresentation Meeting

Japanese Geotechnical Society

Omiya Sonic City

3

Sept. 4 (Wed.) and Sept. 5 (Thurs.)

Fukui Construction Technology Fair
2019

Construction Technology Fair Executive
Committee

No. 1 Exhibition Hall of Fukuiken
Sangyo Kaikan

4

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

Fuji Sankei GroupTokyo Big Sight

5Oct. 2 (Wed.) and Oct. 3 (Thurs.)

Construction Fair Hokuriku 2019 inToyamaConstruction Fair Hokuriku 2019 inToyama Executive Committee

Toyama Industrial Exhibition Hall
(Technohall)

6Oct. 2 (Wed.) and Oct. 3 (Thurs.)

2019 Technical Workshop andExhibition on Construction and
Demolition Waste Management

Promotion Council for Recycling
Construction Materials and Wastes andHokkaido Regional Construction &Demolition Waste Measure Liaison
Council

Sapporo Convention Center

7

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

Highway Techno Fair 2019

Express Highway Research Foundationof JapanHall A and B, Aomi Exhibition Hall,
Tokyo Big Sight

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

Kyushu Construction Technology
Forum 2019

Kyushu Construction Technology
Forum Executive

Fukuoka International Congress Center
1F, 2F, 3F, 4F

9Oct. 16 (Wed.) and Oct. 17 (Thurs.)

Construction Technology Fair 2019 in
Chubu

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

Fukiage Hall
(Nagoya Trade & Industry Center)

10Oct. 23 (Wed.) and Oct. 24 (Thurs.)

Construction Technology Expo 2019
Kinki

The Nikkan Kensetsu Kogyo Shimbun
and Kinki Construction Association

MyDome Osaka

11

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

Nagasaki Construction Technology Fair
2019

Nagasaki Civil Engineering ResearchCenterMain Arena, Nagasaki Prefectural
General Gymnasium

Excellent greening andforest-forming power

12

Nov. 26 (Tue.) and Nov. 27 (Wed.)

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

Construction Technology Forum 2019
in Hiroshima

Construction Technology Forum
Executive Committee

Hiroshima Prefectural Industrial
Exhibition Hall

* Exhibitions include those by NITTOC Bureau Associations.

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

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

What is a Runner-up Recommended Technology?

Advantages of the Runner-up Recommended Technology:

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

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

Reduced CO2 emissions

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

6

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

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

28

ANNUAL REPORT 2020

5

1Features of
the Geofiber
Method4

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

3

2

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

ANNUAL REPORT 202029

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

Overseas Deployment

Overseas Deployment

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

Development of Overseas Business
The Republic of Indonesia has a population of approximately 250
million and continues to record 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.

Established 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.
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

Nao Matsumoto

Location

Jakarta Selatan (South Jakarta), Indonesia

Date of operational start

April 2016

Description of business

Construction business in Indonesia

Fiscal year-end

March 31

CapitalIndonesian Rupiah (IDR) 51,000 million (Approximately JPY 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 G, 16/F
GRAND RUBINA BUSINESS PARKat Rasuna Epicentrum
Jl. HR Rasuna Said, Jakarta 12940, Indonesia
Tel. (021) 2994 1582 ; (021) 2994 1583
Fax. (021) 2994 1991

PT NITTOC CONSTRUCTION INDONESIA’s Web site

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

30

ANNUAL REPORT 2020

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

Javed Khurram

Qasim Muhammad

Construction Section, Construction Department,
Overseas Business Division

Construction Section, Construction Department,
Overseas Business Division

Nationality: Pakistan

Nationality: Pakistan

After graduating from university, I took part in a slope
protection project in Pakistan. The slope field was theperfect place for self-discovery. This project employedslope protection technologies such as rock bolts andground anchors. I have just come to Japan, so I am currently
studying Japanese and trying to become rapidly acclimatedto the Japanese living environment. My goal is to use mypast experience to further refine my skills and capabilities ina rewarding work environment, contributing to the growthand development of the Company.

I graduated from university in 2016 and acquired a civilengineering certification. In Pakistan, I was involved inslope protection using ground anchors and rock nets.
Going forward, I want to learn new techniques and gain asmuch knowledge as I can. I also want to communicate andcollaborate with Japanese coworkers and contribute to thegrowth and development of the Company by utilizing myskills and experience.

Ahmad Naeem

Jaafer Muhammad

Construction Section, Construction Department,
Overseas Business Division

Construction Section, Construction Department,
Overseas Business Division

Nationality: Pakistan

Nationality: Pakistan

After graduating from university in 2015, I took part invarious projects, including commercial building construction
projects and subway projects, in Pakistan. At NITTOC, we
employ various slope protection techniques, such as groundanchors, rock nets, and fiber mortar spraying. I am learning
so much and greatly expanding my capabilities thanks
to these techniques. I will do my utmost to use NITTOC’stechnologies to provide people with greater safety, security,and comfort. I am very happy to be able to work here, where
I can learn so much.

From 2015 to 2016, I worked as a civil engineer in Pakistan.
I came to Japan because I wanted to engage in the
rewarding work we do here at NITTOC, in order to build up
my knowledge and improve my skills. To achieve these, I
want to quickly learn the Japanese language, get used toliving in Japan, and learn many of the techniques used herein Japan. I am very happy to have become a member of
NITTOC, a company that provides a safe and secure society
and contributes to countries.

ANNUAL REPORT 202031

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

International Business

Staff Training in Indonesia

International BusinessIn fiscal 2019, a staff member was dispatched to both HSE (Health
Safety Environment) construction training and AK3Konstruksi
certification program. The Company promotes the improvementof staff members’ safety management capabilities to achieve highquality safety management.

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

Project Site Visit by Administrative Staff
Employees at the PT NCI Jakarta office visited a project worksite
outside of Jakarta. The goal of this visit was to foster communication
between administrative personnel and worksite personnel. Thisvisit enabled administrative staff that work in the office to get an
immediate feel of worksite conditions and situations.

Safety Conference

Safety Conference (all employees and relevant workers)

Once a year, the Company holds a safety conference by gathering
all employees and relevant workers aimed at improving their safety
awareness.
The theme of the 2019 Safety Conference, held in a village resort in
Bogor on June 28, 2019 was “Unity, Trust, and Respect.” We wish all
workers to be safe and secure in all their work. Health and safety areimportant for improving the social security and benefits of workers,
while also contributing positively to construction progress. The
participants of this event learned from case examples from NITTOC
and the PT NCI project. We expect that this will help in preventing
similar accidents in other projects. Furthermore, based on fiscal 2018safety patrol evaluations, two site engineers and two workers wereselected to receive safety awards.

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

Employee Training
Staff training in Japan
In August 2019, our safety and technology staff were dispatched to Japan to learn about
NITTOC’s safety management, project management, and construction technologies.
The objective of this training was to provide all staff with a greater understanding of
the importance of safety, and to have them do their utmost to prevent all accidents
in all workplaces. To achieve this, we provided training for our staff to ensure that they
develop into staff that excel at both safety management and civil engineering.

32

ANNUAL REPORT 2020

Recreation Event for Employees andTheir Family Members

Participation in Jakarta Kizuna (bonding)
Ekiden (relay road race) 2019

In November 2019, an event for staff members and their families
were held in Ancol Ocean Dream Sumudra, Jakarta, in celebrationof the fourth anniversary of PT. NITTOC CONSTRUCTION
INDONESIA. Participants enjoyed the meal and participated ingames and prize drawings, and cultivated closer and stronger
relationships.

In September 2019, we participated in the Jakarta Kizuna Ekiden,
which is an annual charity event held to promote interaction
between Indonesia and Japan. This year, we sent four teams
composed of both Japanese and Indonesian staff. The spiritof collaboration from the event also has a positive effect on
teamwork at work.

ANNUAL REPORT 202033

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

Environmental

Introduction of Overseas
Construction Projects

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,

Asahan No.3
Hydroelectric Power Plant

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,

The Company performed slope protection work in conjunction withthe construction of a hydroelectric power plant.
The work site of this project is North Sumatra Island.

based on our management philosophy.

agreements, customer and industry requirements, actively fulfill

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

Orderer
Owner
Description of the work
Construction period

PT PLN
Shimizu - Adhi Karya JO
Free frame work and mortar spraying
September 2019 – Under constructionsocial 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.

• Effective utilization of limited resources and reduce the load of

RDMP RU-V Balikpapan

environment to be a resource recycling society. We promote

The Company performed slope protection work within anexisting petroleum refinery.
The work site of this project is East Kalimantan.
Orderer
Owner
Description of the work
Construction period

environmental symbiosis society for earth biological including

Operational Organization Diagram of the Technology Development Department
Environment Management System

PT Pertamina RU V Balikpapan
PT Bahana Cipta Internusa
Mortar spraying
November 2019 – January 2020

General Manager ofTechnology Development Department

Cement Soil Mixing Demonstration Work
The Company took part in an overseas expansion support project of small andmedium-sized enterprises in Indonesia.
The work site of this project is Dumai.
Orderer
Owner
Description of the work
Construction period

JICA
PT. HUTAMA KARYA, YBM Co., Ltd.
Middle-depth layer mixing using the GI method
June 2019 – July 2019

Environmental
Management Officer

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

NITTOC Hasuda General Center

Environmental Committee
Environment Committee Bureau

PATINBAN PORTDEVELOPMENT PROJECTPACKAGE1
The Company performed grouting for steel pipe piles
and beam connection sockets in Patimban Port.
The work site of this project is Subang in West Java.
Orderer
Owner
Description of the work
Construction period

34

ANNUAL REPORT 2020

Ministry of Transportation, Indonesia
Penta - TOA - Rinkai - PP – WIKA JO
Grout filling
August 2019 – Under construction

ANNUAL REPORT 202035

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management Plan

Landscape Conservation Technology of Cultural Property

Our Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

Contribution to Society

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

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

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

Tohoku Branch: Regeneration and Maintenance Activities for a
Seaside Forest Reserve to Prevent Disasters(Miyagi Prefecture, April 2019)
We participate in a reforestation activity for seaside disaster-prevention
forests, which were washed away by a tsunami caused by the Tohoku
Earthquake & Tsunami. Four years have passed since the planting
program started. The trees have grown to a height ranging from 1.5
m to 2 m, depending on the location. Ten employees of the Tohoku
Branch worked on maintenance activities such as spreading fertilizer
and cutting bottom weeds. Branch members will continue the activity
so that the forest will grow to function as a disaster-prevention forest.

Hokuriku Branch - Caisson Pile Construction and Foundation
Improvement Worksite Tour
(Ishikawa Prefecture, September 2019)

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

36

ANNUAL REPORT 2020

As part of its “Independent Project - Exploring the Materials andStructures of the Future!” activities, three professors and nine
students from the School of Sustainable Design, University of Toyama
participated in this tour. We showed them the caisson pile construction
worksite and foundation improvement (GI column method) worksiteof the Hokuriku Shinkansen Hosotsubo Bridge project, explained
the construction methods used, and answered their questions. The
university has requested that we offer the tour again next year, and weplan to continue offering the tour on an ongoing basis.

Osaka Branch - Regional Cleaning(Kagawa Prefecture, February and March 2020)
We carried out road cleanup activities in the area around the 25 spansof seven bridges in the center of Takamatsu City, Kagawa Prefecture,
where we performed bridge concrete flaking prevention work. Five toten employees and subcontractor employees engaged in the cleanup
in the evening after construction work was completed.
Because the cleaning area was alongside a road, we gathered many
plastic bottles and cigarette butts. We also had a flagman to directtraffic to ensure safety during the cleanup.

After the work

ANNUAL REPORT 202037

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management Plan

Contribution to Society

Our Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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 GovernanceCorporate Governance

Kyushu Branch - 9th Wajiro Tidal Flat Ulva Seaweed
Removal Activities(Fukuoka prefecture October 2019)
We participated in cleanup activities to remove the large amounts ofulva seaweed that built up in the Wajiro Tidal Flat, a national wildlife
sanctuary in Higashi-ku, Fukuoka City.
When large amounts of ulva seaweed accumulate, they cover the tidal
flat, making it inhospitable for wildlife such as short-neck clams. Six
NITTOC members worked alongside a total of 390 members of the
Civil Engineering & Building Work and Cement sections of the Kyushu
Electric Partners’ Association in the annual ulva cleanup. We picked up
roughly 5.7 tons of ulva, although the amount appeared to be less thanlast year. This was our fourth consecutive year of participation in theactivity, and we intend to continue it in the future.

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

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

Head Office, Tokyo Branch and Others:
Cooperated with a Blood Donation Drive(Tokyo, July 2019)
As with last year, we had a blood donation drive, run by the Japanese
Red Cross Tokyo Blood Center in our head office conference room,
participated not only by Head Office employees, but also those of the
Directly-Controlled Grout Division, Overseas Business Division andMidori Industry Co., Ltd. which are located in the same building. From
10:00 in the morning, many volunteers came to measure their bloodpressure and those who passed the checkup with a doctor donatedblood. This year, 50 people gave blood, exceeding last year's numberof blood donors. We plan to continue holding these blood donation
drives in the future.

Subscription to Corporate Membership in C’s Athlete(from August 2019)
In August 2019, we became a corporate member of C’s Athlete, an
employment center for athletes with disabilities.
C’s Athlete was founded by Aso Humaney Center, a group company of
Aso Corporation, with the aim of creating employment opportunities
for disabled athletes and promoting sports for persons with disabilities.
It also provides support to athletes aiming to take part in the Olympic(Paralympic) Games. We support their mission, and provide supportand sponsorship for C’s Athlete activities.

38

ANNUAL REPORT 2020

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

Customers
Sales ofmerchandiseand materials,
Non-life
insurance agency

Undertaking
construction

Consolidated
subsidiary:
Midori Industries Co., Ltd.

Sales ofmerchandiseand materials,
Non-life
insurance agency

Undertaking
construction

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

Undertaking
construction

ASO CORPORATION
Undertaking
construction

Consolidated
subsidiary:
PT NITTOC
CONSTRUCTION
INDONESIA

Undertaking
construction

Undertaking
construction

Undertaking
construction

NITTOC CONSTRUCTION CO., LTD.
Construction business

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

ANNUAL REPORT 202039

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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 Governance

MANAGEMENT MEMBERS
Directors and Vice President

1 Yasunobu Okumiya
President and Representative Director

2 Norihisa Nagai

Directors and Vice President

3 Akira Sakoda
Director

4 Hiroshi Yamada
Director

5 Toshikazu Kawaguchi
Director

6 Masashi Ootsuka
Director

7 Yasuo Wada
Director

8 Iwao Aso
Director

9 Masayuki Watanabe
Director

10 Katsuo Nakamura
Standing Corporate Auditor

11 Nobuo MatsumotoStanding Corporate Auditor

12 Masayuki Isono
Corporate Auditor

13 Atsushi Ono

13

11

9

3

40

ANNUAL REPORT 2020

7

5

4

2

6

8

10

12

1

ANNUAL REPORT 202041

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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 Financial Statements, etc.
1. Consolidated Financial Statements
1) Consolidated Balance Sheets
March 31, 2019 and 2020

Thousands of
U.S.Dollars(*)

Millions of yen
2019

2020

2020

2019

2020

2020

Liabilities

AssetsCurrent liabilities

Current assets
Cash and deposits*6 12,810

11,365

104,430

Short-term borrowings

Notes payable, accounts payable for construction contracts and other

274

274

2,517

Advances received on construction contracts in progress

1,672

2,087

19,17813,346

18,713

171,954

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

17,317

159,120

Electronically recorded monetary claims — operating*6 3,688

2,435

22,381

Lease obligations

15

12

110

Merchandise and finished goods

13

14

131

Income taxes payable

884

1,189

10,933

Real estate for sale

0

0

0

Costs on construction contracts in progress*4 2,002*4 1,850

17,000Raw materials and supplies

151

161

1,483

Other

516

512

4,710

Allowance for doubtful accounts

–

(1)

(17)

39,93741,003376,767

Total current assets
Non-current assets
Property, plant and equipment

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

37

41

376

*4 112

*4 1

9

974

1,370

12,594

23

43

400

Other

2,829

2,830

26,005

Total current liabilities

19,633

19,214

176,557

Long-term borrowings

552

278

2,554

Lease obligations

21

9

87

4,125

4,069

37,389

39

37

342

4,738

4,394

40,374

24,371

23,608

216,932

Non-current liabilities

Retirement benefit liability

Buildings and structures, net*1 1,837*1 1,769

16,259Machinery, vehicles, tools, furniture and fixtures, net*1 795*1 897

8,249

Land

2,651

2,652

24,374

Leased assets, net

*1 38

*1 24

221

60

52

485

Shareholders’ equity

Other, net

*3 2

*3 2

18

Share capital

6,052

6,052

55,613

Total property, plant and equipment

5,385

5,398

49,609

Capital surplus

2,022

2,022

18,581

446

440

4,045

Investment securities

914

791

7,270

Deferred tax assets

1,772

1,966

18,071

Other

666

622

5,716

Allowance for doubtful accounts

(73)

(63)

(585)

Total investments and other assets

3,279

3,316

30,472

9,111

9,155

84,12649,04850,159460,893

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.”

42

Thousands of
U.S.Dollars(*)

Millions of yen

ANNUAL REPORT 2020

Other
Total non-current liabilities
Total liabilities
Net assets

Retained earnings

17,496

19,420178,444

Treasury shares(1,055)(1,056)(9,704)

Total shareholders’ equity

24,51526,438242,935

Valuation difference on available-for-sale securities

277

188

1,732

Foreign currency translation adjustment

(26)

(79)

(731)

Remeasurements of defined benefit plans

(226)

(158)

(1,458)

Total accumulated other comprehensive income

24

(49)

(457)

137

161

1,483

Accumulated other comprehensive income

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

24,676

26,550243,961

49,04850,159460,893*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

ANNUAL REPORT 202043

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

2. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Fiscal Years Ended March 31, 2019 and 2020

Consolidated Statements of Comprehensive Income
Fiscal Years Ended March 31, 2019 and 2020

Thousands of
U.S.Dollars(*)

Millions of yen
2019

2020

2020

2019

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

Profit63,11965,361

600,581

144

155

1,427

63,26465,516602,009

Cost of sales
Cost of sales of completed construction contracts
Cost of sales in other businesses
Total cost of sales*1 52,382*1 53,161

488,484

62

59

545

52,44553,221

489,030

10,736

12,199112,097

82

95

881

10,81912,295112,978*2,3 6,848*2,3 7,392

67,923

3,970

4,903

45,055917

160

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

Thousands of
U.S.Dollars(*)

Millions of yen
2020

2020

2,740

3,311

30,429Valuation difference on available-for-sale securities

(27)

(88)

(815)

Foreign currency translation adjustment

5

(81)

(752)

Remeasurements of defined benefit plans, net of tax

38

68

626

*1 15

*1 (102)

(941)

2,755

3,209

29,488

2,735

3,184

29,264

20

24

224

Other comprehensive income

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

Non-operating income
Interest income
Dividend income

31

33

307

Patent income

32

18

166

Other

13

14

133

Total non-operating income

87

83

768

Non-operating expenses
Interest expenses

12

9

85

Guarantee commission

30

27

256

Foreign exchange losses

5

63

585

Commission for syndicated loans

5

5

49

Other

0

0

6

Total non-operating expenses

53

106

982

4,004

4,880

44,841

*4 5

*4 20

184

5

20

184

Loss on retirement of non-current assets

*5 1

*5 23

216

Impairment loss

*6 7

–

–

9

23

216

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

Total extraordinary losses
Profit before income taxes

4,000

4,876

44,809

Income taxes - current

1,388

1,750

16,082

Income taxes - deferred

(127)

(185)

(1,702)

Total income taxes

1,260

1,564

14,379Profit

2,740

3,311

30,429Profit attributable to non-controlling interests
Profit attributable to owners of parent

18

53

487

2,721

3,258

29,942*Refer to the note “Significant Items on Basis for Preparation of Consolidated Financial Statements.”

44

ANNUAL REPORT 2020

ANNUAL REPORT 202045

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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, 2019 (from April 1, 2018 to March 31, 2019)

Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(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

16,109(1,054)

23,130Changes during period

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity

6,052

2,022

17,496(1,055)24,515

Changes during period

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

Profit attributable to owners of parent

2,721

2,721

Purchase of treasury shares

(0)

(0)

0

0

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

Profit attributable to owners of parent

3,258

3,258

Purchase of treasury shares
Disposal of treasury shares

0

(0)

(0)

Net changes in items other thanshareholders’ equity

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

–

0

1,386

(0)

1,385

Balance at end of period

6,052

2,022

17,496(1,055)24,515

Total changes during period

–

–

1,923

(0)

1,922

Balance at end of period

6,052

2,022

19,420(1,056)26,438(Millions of yen)

(Millions of yen)

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

305

Foreign currencytranslation
adjustment(29)

Remeasurementsof defined
benefit plans(265)

Accumulated other comprehensive income
Total accumulated
othercomprehensive
income10Non-controllinginterests

116

Valuation difference on
available-forsale securities

Total net assets

23,256

Changes during period

Balance at beginning of period

277

Foreign currencytranslation
adjustment(26)

Remeasurementsof defined
benefit plans(226)

Total accumulated
othercomprehensive
income24

Non-controllinginterests

137(1,334)

Profit attributable to owners of parent

2,721

Purchase of treasury shares(0)

Disposal of treasury shares

0

Dividends of surplus(1,334)

Profit attributable to owners of parent

3,258

Purchase of treasury shares

46

(27)

3

38

13

20

34

Total changes during period

(27)

3

38

13

20

1,420

Balance at end of period

277

(26)

(226)

24

137

24,676

ANNUAL REPORT 2020

24,676

Changes during period

Dividends of surplus

Net changes in items other thanshareholders’ equity

Total net assets

Net changes in items other thanshareholders’ equity

(0)
(88)

(53)

68

(73)

24

(49)

Total changes during period

(88)

(53)

68

(73)

24

1,873

Balance at end of period

188

(79)

(158)

(49)

161

26,550ANNUAL REPORT 202047

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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. Consolidated Statements of Cash Flows
Fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)

Fiscal Years Ended March 31, 2019 and 2020
(Thousands of U.S.Dollars(*))

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total shareholders’equity55,613

18,581

160,766(9,696)225,266

Changes during period
Dividends of surplus

29,942

29,942

Profit attributable to owners of parent(12,264)(12,264)

Purchase of treasury shares

(8)

(8)

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

55,613

17,677

18,581(8)

178,444

17,699(9,704)242,935(Thousands of U.S.Dollars(*))

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

2,547

Foreign currencytranslation
adjustment(242)

Remeasurementsof defined
benefit plans(2,084)

Total accumulated
othercomprehensive
income220

Non-controllinginterests

Total net assets

2019

1,259

226,746

Dividends of surplus

29,942

Profit attributable to owners of parent(12,264)

Purchase of treasury shares

(8)
(489)

626

(678)

224

(454)

Total changes during period

(815)

(489)

626

(678)

224

17,215

Balance at end of period

1,732

(731)

(1,458)

(457)

1,483

243,961

4,000

4,876

44,809Depreciation

324

380

3,498

Increase (decrease) in allowance for doubtful accounts

(15)

(1)

(13)

Increase (decrease) in provision for warranties for completed construction

29

3

33

Increase (decrease) in provision for loss on construction contracts

79

(110)

(1,019)

Increase (decrease) in provision for bonuses

77

396

3,640

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

23

19

182

Increase (decrease) in retirement benefit liability

169

41

383

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

(5)

(20)

(184)

Loss on retirement of non-current assets

1

23

216

Interest and dividend income

(41)

(51)

(468)

Interest expenses

12

9

85

Foreign exchange losses (gains)

2

76

701

Impairment loss

7

–

–

Decrease (increase) in trade receivables

772

4,140

38,049Decrease (increase) in costs on construction contracts in progress

(529)

149

1,371

Decrease (increase) in other assets

(9)

(11)

(104)

Increase (decrease) in trade payables

30(1,328)(12,210)

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

502

419

3,857

(1,626)

661

6,078

Increase (decrease) in other liabilities

741

(725)

(6,669)Subtotal

4,548

8,949

82,236

Interest and dividends income received

41

48

443

Interest paid

(12)

(9)

(86)

Income taxes paid

(1,468)(1,631)(14,987)

Net cash provided by (used in) operating activities

3,108

7,357

67,606

(4)

(4)

(40)

(1,260)(251)(2,308)

59

24

225

Cash flows from investing activities
Purchase of investment securities
Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant and equipment

–

(5)

(46)

Purchase of intangible assets

(53)

(14)

(131)

Collection of loans receivable

8

34

316

Payments of guarantee deposits

(14)

(17)

(160)

Proceeds from refund of guarantee deposits

5

6

60

Other payments

–

(3)

(33)

Other proceeds

8

13

(122)

(1,252)(217)(1,995)

Net cash provided by (used in) investing activities

48

ANNUAL REPORT 2020

2020

Profit before income taxes

Purchase of property, plant and equipment
(815)

2020

Cash flows from operating activities

Increase (decrease) in accrued consumption taxes

Changes during period

Net changes in items other thanshareholders’ equity

Thousands of
U.S.Dollars(*)

Millions of yen

Shareholders’ equity

ANNUAL REPORT 2020

49Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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
2019

2020

2020

Notes
(Basis of Presenting Consolidated Financial Statements)

Cash flows from financing activities
Repayments of long-term borrowings

(274)

(274)

(2,517)

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 ¥108.83 to US$1.00, the approximate rate of exchange on March 31, 2020. 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

(20)

(15)

(144)

Proceeds from disposal of treasury shares

0

–

–

Purchase of treasury shares

(0)

(0)

(8)

Dividends paid

(1,329)(1,334)(12,263)

Net cash provided by (used in) financing activities(1,624)(1,625)(14,933)

0(148)(1,359)Net increase (decrease) in cash and cash equivalents

231

5,367

49,316

Cash and cash equivalents at beginning of period

13,114

13,346

122,637(Significant Items on Basis for Preparation of Consolidated Financial Statements)*1 13,346*1 18,713

171,954

1. Scope of Consolidation

Effect of exchange rate change on cash and cash equivalents

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

Number of consolidated subsidiaries: 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).

50

ANNUAL REPORT 2020

ANNUAL REPORT 202051

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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.
Net sales of completed construction contracts, to which the percentage-of-completion method was applied, were ¥44,421 million ($408,168
thousand) for the consolidated fiscal year under review.

52

ANNUAL REPORT 2020

(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 taxation system
The consolidated taxation system is applied.
3) Application of tax effect accounting relating to the transition from the consolidated taxation 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 revision of the non-consolidated taxation system in association therewith, the Company andits domestic consolidated subsidiaries have not applied the provisions of Section 44 of “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 “Practical Solution on the Treatment of Tax Effect Accounting for theTransition from the Consolidated Taxation System to the Group Tax Sharing System” (PITF No.39 issued on March 31, 2020).
(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.
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)(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 undetermined.
(Additional Information)(Accounting estimates related to the impact of the COVID-19 pandemic)
Assuming that the impact of the COVID-19 pandemic will continue for at least a certain length of time, the Group reflects these accounting
estimates in its accounting treatments. However, the impact of the COVID-19 pandemic contains numerous uncertainties, and they could impact
the Group’s financial condition and operating results of the following fiscal year.

ANNUAL REPORT 202053

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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*6 Notes, etc., matured at the end of the fiscal year under review were settled as of the clearance date or settlement date. The following notes, etc., matured
at the end of the fiscal year are included in the balance as the last day of the fiscal year fell on a bank holiday.

(Consolidated Balance Sheets)*1 Accumulated depreciation of property, plant and equipment

As of March 31

As of March 31

2019

2019

2020

2020

¥6,741 million¥6,984 million$64,179 thousand

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

4 properties2020¥3 million

2 properties

2020¥1 million

2020

Notes receivable¥270 million– million$– thousand

Electronically recorded monetary claims — operating¥22 million– million$– thousand

Notes payable¥420 million– million$– thousand(Consolidated Statements of Income)*1 Provision for loss on construction contracts included in the cost of sales of completed construction contracts

As of March 31
2019

2020

$11 thousand

Fiscal year ended March 31
2019

2020

2020

¥81 million¥(48) million$(449) thousand(2) The Company guarantees housing funds, the loans payable of its employees borrowed from banks, in accordance with the Housing Loan Financing
Rules.
*2 Major expense items of selling, general and administrative expenses and their amounts were as follows:

As of March 31
2019

2020

2020

¥3 million¥1 million$17 thousand

Millions of yen

Fiscal year ended March 31

2019

Provision for bonuses for directors (and other officers)*3 Reduction entry
The amount of reduction entry, which is subtracted from the acquisition prices of property, plant and equipment due to acceptance of a state subsidy,
and the breakdown thereof were as follows:
As of March 31
2019
Other

¥2 million

2020

2020

¥2 million$18 thousand

Thousands of U.S.Dollars
2020

2020

23

43

400

Employees’ salaries and allowances

2,746

2,873

26,402

Provision for bonuses

396

538

4,949

Retirement benefit expenses

247

256

2,358

Provision of allowance for doubtful accounts

(15)

(0)

(2)

*3 Research and development expenses included in general and administrative expenses
Fiscal year ended March 31*4 Presentation of inventories and provision for loss on construction contracts
Fiscal year ended March 31, 2019 (As of March 31, 2019)
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 ¥21 million.
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 ($9 thousand).
5 Commitment line agreements
The Company has entered into commitment line agreements with our four banks to facilitate efficient fund procurement of working capital.
The unused balance of the borrowings relative to the commitment line agreements as of March 31 was as follows:
As of March 31
Total amount of the commitment line
Balance of executed loans
Unused balance

54

ANNUAL REPORT 2020

Millions of yen

2019

2020

2020

¥241 million¥372 million$3,424 thousand*4 The breakdown of gain on sales of non-current assets was as follows:
Fiscal year ended March 31

Millions of yen
2019

Thousands of U.S.Dollars
2020

2020

Buildings and structures

0

–

–

Machinery, vehicles, tools, furniture and fixtures

1

20

184

Land

4

–

–

Total

5

20

184

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

Thousands of U.S.Dollars

Millions of yen

Thousands of U.S.Dollars

2018

2019

2019

2019

2020

2020

Buildings and structures

1

19

181

2,200

2,200

20,215

Machinery, vehicles, tools, furniture and fixtures

0

0

0

–

–

Intangible assets (software)

–

3

34

2,200

2,200

Total

1

23

216

20,215

ANNUAL REPORT 202055

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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*6 Impairment loss
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
For the fiscal year ended March 31, 2019, the Company reported impairment loss for the following asset group.
Use

Type

Assets planned to be sold

Buildings and structures,and land(Consolidated Statements of Comprehensive Income)*1 Amounts of reclassification and the tax-effect equivalent in relation to “Other comprehensive income”
Impairment loss

Location

Millions of yen

Takamatsu-shi, Kagawa

7(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.
(Breakdown of impairment loss recognized)
Millions of yen
Building and structures

0

Land

6

Total

7

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

Millions of yen

Fiscal year ended March 31

Thousands of U.S.Dollars

2019

2020

2020

Accrued in the fiscal year

(40)

(127)

(1,174)

Amount of reclassification

–

–

–

Before tax-effect adjustment

(40)

(127)

(1,174)

Amount of tax-effect equivalent

12

39

359

Valuation difference on available-for-sale securities

(27)

(88)

(815)

Accrued in the fiscal year

5

(81)

(752)

Foreign currency translation adjustment

5

(81)

(752)

Accrued in the fiscal year

7

31

292

Amount of reclassification

47

66

609

Valuation difference on available-for-sale securities

Foreign currency translation adjustment

Remeasurements of defined benefit plans

Before tax-effect adjustment

55

98

902

Amount of tax-effect equivalent

(16)

(30)

(276)

Remeasurements of defined benefit plans, net of
tax

38

68

626

Total other comprehensive income

15

(102)

(941)

(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 selling prices, etc., under the relevant respective contracts.
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable(Consolidated Statements of Changes in Net Assets)
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
1. Class and total number of issued shares and of treasury shares
Number of sharesat the beginning

Increase in
number of shares

Decrease in
number of shares

Number of sharesat the end

Common shares

43,919,291––

43,919,291

Total

43,919,291––

43,919,291

Common shares

2,206,981

1,400

125

2,208,256

Total

2,206,981

1,400

125

2,208,256

Fiscal year ended March 31, 2019
Issued shares

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.

56

ANNUAL REPORT 2020

ANNUAL REPORT 202057

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

2. Dividends(1) Amount of dividends paid
Resolution

Class ofsharesAnnual Shareholders’ Meeting on
June 22, 2018
Board of Directors meeting held on
November 8, 2018

Total dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

CommonsharesRetainedearnings¥24.00March 31,2018

June 25,2018¥1,001 million

Commonshares¥333 million

Retainedearnings¥8.00

September 30,
2018

November 30,
2018(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 21, 2019

Commonshares¥917 million

Retainedearnings¥22.00March 31,2019

June 24,2019

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 sharesFiscal year ended March 31, 2020

Number of sharesat the beginning

Increase in numberof shares

Decrease in
number of shares

Number of sharesat the end

Issued shares
Common shares

43,919,291––

43,919,291

Total

43,919,291––

43,919,291

Common shares

2,208,256

1,255

–

2,209,511

Total

2,208,256

1,255

–

2,209,511

Treasury shares

Notes: The increase in number of treasury shares represents the increase from the purchase of less-than-one-unit shares.
2. Dividends(1) Amount of dividends paid
Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 21, 2019

Commonshares¥917 million($8,431 thousand)

Retainedearnings¥22.00March 31,2019

June 24,
2019

Board of Directors meeting held on
November 8, 2019

Commonshares¥417 million($3,832 thousand)

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

58

Resolution

Class ofsharesTotal dividends

Source ofdividends

Dividend per
share

Record date

Effective
date

Annual Shareholders’ Meeting on
June 25, 2020

Commonshares¥1,167 million($10,731 thousand)

Retainedearnings¥28.00March 31,2020

June 26,
2020

ANNUAL REPORT 2020

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

Millions of yen

Thousands of U.S.Dollars

2019

2020

2020

Cash and deposits

13,346

18,713

171,954

Cash and cash equivalents

13,346

18,713

171,954(Lease Transactions)(Lessee)Finance lease transactions that transfer ownership
1. Details of leased assets
Property, plant and equipment
Consist of machinery and equipment.
2. Depreciation method of leased assets
As described in the “(Significant Items on Basis for Preparation of Consolidated Financial Statements)
4. Accounting Policies (2) Depreciation methods of major depreciable assets.”
Finance lease transactions that do not transfer ownership
1. Details of leased assets
Property, plant and equipment
Consist mainly of machinery and equipment.
2. Depreciation method of leased assets
As described in the “(Significant Items on Basis for Preparation of Consolidated Financial Statements)
4. Accounting Policies (2) Depreciation methods of major depreciable assets.”(Financial Instruments)
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
1. Status of Financial Instruments(1) Policies on financial instruments
The Group holds a policy to procure working capital, which is necessary to pursue business purposes, in the form of borrowings from banks
and invests temporary surplus funds in short-term deposits, etc. The Group utilizes derivatives within the limit of actual demand and not for
speculative purposes. In the consolidated fiscal year under review, no derivative transactions were utilized.
(2) Description of financial instruments and related risks
Notes receivable, accounts receivable from completed construction contracts and other, and electronically recorded monetary claims - operating,which are trade receivables, are exposed to the credit risk of the respective counterparties. Investment securities are mainly stocks of companies
with which the Company holds business relationships, and are exposed to market price fluctuation risk.
Notes payable, accounts payable for construction contracts and other, which are trade payables, generally entail the concentrated due date 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 202059

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

2. Market Values of Financial Instruments
The carrying value in the consolidated balance sheets, the market value and the difference thereof as of March 31, 2019, were as follows.
Financial instruments for which it is deemed extremely difficult to measure the market value are not included in the table below. (Refer to Note 2.)

3. Redemption schedules for monetary receivables and securities with maturity dates after the consolidated balance sheet date (March 31, 2019)(Millions of yen)

Withinone year(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(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

13,346

13,346–23,90623,906

–

768

768

–

38,02238,022

12,81012,810

–

274

274

–

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

552

552

–

13,636

13,636––––

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.

Total

Over one year
and within
five years

Over five years
and within
10 years

Over 10 years

13,346–––23,906

–

–

–

–

–

–

–

37,253–––

4. The repayment schedules for borrowings and lease obligations after the consolidated balance sheet date (March 31, 2019) are shown in the“Schedule of Borrowings,” a consolidated supplementary statement.

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.

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.

60

ANNUAL REPORT 2020

ANNUAL REPORT 202061

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

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.)(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

Market value

Difference

18,71318,713–19,752

19,752

–

645

645

–

39,112

39,112–

11,365

11,365–(2) Short-term borrowings

274

274

–

(3) Long-term borrowings

278

278

–

11,917

11,917––––

Total assets(1) Notes payable, accounts payable for construction
contracts and otherTotal liabilities
Derivative transactions(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 other171,954

171,954–

181,501

181,501

–

5,931

5,931

–

359,387359,387–

104,430

104,430

–

2,517

2,517

–

2,554

2,554

–

109,502109,502

–

–

–

–

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.”62

ANNUAL REPORT 2020

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

Carrying value in the consolidated balance sheets

Available-for-sale securities (unlisted stocks)¥145 million$1,339 thousand

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.
3. Redemption schedules for monetary receivables and securities with maturity dates after the consolidated balance sheet date (March 31, 2020)

Difference(2) Short-term borrowings

Derivative transactions

Derivative transactions
The Group conducts no derivative transactions.

(Millions of yen)

Market value(3) Long-term borrowings
Total liabilities

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.

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

18,713–––19,752

–

–

–

–

–

–

–

38,466–––(Thousands of U.S.Dollars)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

171,954–––

181,501

–

–

–

–

–

–

–

353,456–––

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.

ANNUAL REPORT 202063Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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(Securities)
Fiscal year ended March 31, 2019 (As of March 31, 2019)
1. Held-to-maturity debt securities (As of March 31, 2019)
Not applicable

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)

2. Available-for-sale securities (As of March 31, 2019)(Millions of yen)
(Millions of yen)

Carrying value inthe consolidatedbalance sheets

Acquisition cost

544

258

286

National government bonds, local
government bonds, etc.

–

–

–

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

(1) Securities with carrying value in the consolidatedbalance sheets exceeding acquisition cost
364

400

Bonds
National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

765

364

400

3

5

(1)

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

Shares765

Subtotal

Acquisition cost

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

Bonds

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

Bonds
National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

Subtotal

3

5

(1)

Total

768

369

399

Bonds

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

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

Available-for-sale securities (unlisted stocks)

145

Available-for-sale securities (unlisted stocks)

Carrying value in the consolidated balance sheets
Millions of yen

Thousands of U.S.Dollars

145

1,339

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

64

ANNUAL REPORT 2020

ANNUAL REPORT 202065

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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)
Carrying value inthe consolidatedbalance sheets

Acquisition cost

Difference

5,005

2,373

2,632

National government bonds, local
government bonds, etc.

–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

5,005

2,373

2,632

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

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

1,061

(135)

Bonds
–

–

–

Corporate bonds

–

–

–

Other

–

–

–

Other

–

–

–

Subtotal

926

1,061

(135)

Total

5,931

3,434

2,497

3. Available-for-sale securities sold during the consolidated fiscal year under review (From April 1, 2019 to March 31, 2020)
Not applicable(Derivative Transactions)Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
1. Derivatives for which hedge accounting is not applied
Not applicable as no derivative transactions are utilized.
2. Derivatives for which hedge accounting is applied
Not applicable as no derivative transactions are utilized.

2. Defined benefit plans(1) Reconciliation of the beginning/ending balance of projected benefit obligations
Fiscal year ended March 31
Beginning balance of projected benefit obligations

926

National government bonds, local
government bonds, etc.

(Retirement Benefits)
1. Outline of adopted employee retirement benefit plans
The Company and its consolidated subsidiaries have adopted unfunded retirement benefit plans to provide for retirement benefits 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 Employees’ Pension Fund.
As the rational computation of plan assets cannot be ensured for the multiemployer pension plans, accounting is processed in a similar manner asthat 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.

Service cost

Millions of yen

Thousands of U.S.Dollars

2019

2020

2020

4,017

4,125

37,910

244

242

2,225

Interest cost

15

14

131

Accrued amount of actuarial differences

(14)

(31)

(292)

Retirement benefits paid
Ending balance of projected benefit obligations

(138)

(281)

(2,583)

4,125

4,069

37,389(2) Reconciliation of the beginning/ending balance of plan assets
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
Not applicable
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable(3) Reconciliation of the ending balance of projected benefit obligations and plan assets, and the retirement benefit liability and the net defined
benefit asset in the consolidated balance sheets
As of March 31
Projected benefit obligations under unfunded plans
Net carrying value in the consolidated balance sheets ofrelevant liabilities and assets
Retirement benefit liability
Net carrying value in the consolidated balance sheets ofrelevant liabilities and assets

Millions of yen

Thousands of U.S.Dollars

2019

2020

2020

4,125

4,069

37,389

4,125

4,069

37,389

4,125

4,069

37,389

4,125

4,069

37,389Fiscal 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.

66

ANNUAL REPORT 2020

ANNUAL REPORT 202067Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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) Retirement benefit expenses and the breakdown of the amounts thereof
Fiscal year ended March 31

Millions of yen

Thousands of U.S.Dollars

2019

2020

244

242

Service cost

2020
2,225

Interest cost

15

14

131

Amortization of actuarial differences

56

73

674

Amortization of prior service cost

(8)

(7)

(64)

307

322

2,967

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

Millions of yen
2020

(8)

(7)

(64)

63

105

967

55

98

902

Actuarial differences
Total

2020

(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:
As of March 31

Millions of yen
2019

Thousands of U.S.Dollars
2020

2020

Unrecognized prior service cost

23

16

155

Unrecognized actuarial differences

(351)

(245)

(2,258)

(327)

(228)

(2,102)

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

2020

2020

Plan assets

19,451

19,544

179,582

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

15,421

15,731

144,546

Net amount

4,030

3,813

35,036(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, 2019: 17.25% (As of March 31, 2018)
Fiscal year ended March 31, 2020: 16.49% (As of March 31, 2019)(3) Supplementary explanation
The major factor of the net amount in Item (1) above was the general reserve (¥4,030 million for the fiscal year ended March 31, 2019, and ¥3,813
million ($35,036 thousand) for the fiscal year ended March 31, 2020).
The ratios in Item (2) above do not agree with the Group’s actual ratios of contributions.
(Stock Options)Not applicable(Tax-Effect Accounting)
1. Breakdown of significant components that caused deferred tax assets and liabilities

Millions of yen
2019

Thousands of U.S.Dollars
2020

2020

Deferred tax assets(7) Matters regarding plan assets
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
Not applicable

Loss carried forward

Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable(8) Matters regarding the basis for actuarial calculations
Major basis for actuarial calculations (presented in weighted average figures)

Discount rate

Thousands of U.S.Dollars

2019

As of March 31

As of March 31

Millions of yen

Thousands of U.S.Dollars

2019

Prior service cost

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¥142 million for the fiscal year ended March 31, 2019, and ¥144 million ($1,326 thousand) for the fiscal year ended March 31, 2020.

0

0

0

Real estate for sale

4

4

42

Accrued enterprise tax

58

76

699

Provision for bonuses

297

418

3,842

Allowance for doubtful accounts

6

9

84

Provision for warranties for completed construction

11

12

115

Provision for loss on construction contracts

34

0

2

2019

2020

Non-current assets (Impairment loss)

20

20

189

0.35%

0.47%

Defined contribution pension benefits payable

3

3

33

1,262

1,244

11,437

35

35

325

Retirement benefit liability
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, 2019, and ¥145 million ($1,335 thousand) for the fiscal year ended March 31, 2020.

Unrealized gains
Asset retirement obligation

15

17

156

Other

208

272

2,504

1,960

2,114

19,433

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

(65)

(65)

(597)

1,894

2,049

18,836

(122)

(83)

(764)

Deferred tax liabilities
Valuation difference on available-for-sale securities

68

ANNUAL REPORT 2020

Total of deferred tax liabilities

(122)

(83)

(764)

Net deferred tax assets

1,772

1,966

18,071

ANNUAL REPORT 202069

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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

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
Fiscal year ended March 31

2019

2020
(%)

Effective statutory tax rate

(%)

30.6

30.6

Non-deductible expenses such as entertainment
expenses

0.8

0.8

Per capita inhabitant tax

2.8

2.5

Exclusion from revenues such as dividend income

(0.0)

(0.0)

Valuation reserve

(0.0)

(0.0)

Special deduction of income tax

(2.1)

(0.9)

Tax difference from overseas subsidiary

(0.4)

(0.9)

Other

(0.2)

0.0

Effective income tax rate after the adoption of taxeffect accounting

31.5

32.1

(Reconciliation)(Asset Retirement Obligation)
End of fiscal year ended March 31, 2019 (As of March 31, 2019)
This information is omitted due to its immateriality.
End of fiscal year ended March 31, 2020 (As of March 31, 2020)
This information is omitted due to its immateriality.
(Segment Information, etc.)[Segment Information]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
The reportable segments of the Group are the components of the Company and its consolidated subsidiaries, for which separate financial
information is available, and which are subject to regular reviews and evaluation by the Board of Directors in deciding the allocation 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, 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.

[Related Information]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
1. Information by product and service
This information is omitted as net sales to outside customers in the classification of sole product/service exceed 90% of the net sales on the
consolidated statements of income.
2. Information by geographic region(1) Net sales
This information is omitted as net sales to outside customers in Japan exceed 90% of the net sales on the consolidated statements 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, 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.
[Information on Impairment Loss of Non-Current Assets by Reportable Segment]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
The information is omitted as the reportable segment is solely the construction business.
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.
[Information on Amortized Amount and Unamortized Balance of Goodwill by Reportable Segment]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
Not applicable
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable[Information on Gain on Bargain Purchase by Reportable Segment]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)
Not applicable
Fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)
Not applicable

70

ANNUAL REPORT 2020

ANNUAL REPORT 202071Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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[Related Party Information]
Fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(1) Parent company information
AN Holdings Corp.
AN Holdings is a wholly-owned subsidiary of ASO CORPORATION.
(2) Condensed financial information of significant affiliated companies
Not applicable5) [Consolidated Supplementary Statements][Schedule of Bonds Payable]
Not applicable[Schedule of Borrowings]

2019

2020

Net assets per share¥588.33¥632.68$5.81

Basic earnings per share¥65.24¥78.12$0.72

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

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

Millions of yen
2019

Thousands of U.S.Dollars
2020

2020

Basic earnings per share
Profit attributable to owners of parent
Amounts not attributable to common shareholders

3,258

29,942

–

–

–

2,721

Average number of common shares
during the fiscal year

41,711(Significant Subsequent Events)
Not applicable

72

2,721

Profit attributable to owners of parent regarding
common shares

ANNUAL REPORT 2020

(Thousands ofshares)Thousands of
U.S.Dollars

Millionsof yenThousands of
U.S.Dollars

–

–

–

Current portion of long-termborrowings

274

2,517

Current portion of lease obligations

15

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

Repayment
deadline

–

–

–

274

2,517

0.25

–

144

12

110

–

–

552

5,072

278

2,554

0.25

2017–2021

Lease obligations (excluding the current
portion of lease obligations)

21

198

9

87

–

–

Other interest-bearing debt

–

–

–

–

–

–

863

7,932

573

5,270

–

–

Total

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

Millionsof yenAverageinterest rate(%)

Short-term borrowings(Per-Share Information)

Diluted earnings per share

Ending balance of the
fiscal year ended
March 31, 2020

Classification

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

Beginning balance of the
fiscal year ended
March 31, 2020

3,258

29,942
41,710Notes:
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 long-term borrowings (excluding the current portion of
long-term borrowings) are as follows:
Over one year
and within
two years

Over two years
and within
three years

278–Classification

Over one year
and within
two years

Over two years
and within
three years

Long-term borrowings(Thousands of U.S.Dollars)

2,554

–

Classification
Long-term borrowings(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–

ANNUAL REPORT 202073Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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. 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

7

2

Classification

Over one year
and within
two years

Over two years
and within
three years

Lease obligations(Thousands of U.S.Dollars)

69

18

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.
(2) [Other]
Quarterly data for the fiscal year ended March 31, 2020Three months(From April 1, 2019 toJune 30, 2019)

Six months(From April 1, 2019 to
September 30, 2019)

Nine months(From April 1, 2019 to
December 31, 2019)

Fiscal year ended
March 31, 2020
(From April 1, 2019 toMarch 31, 2020)

13,33028,51046,92465,516

Profit before income taxes(Millions of yen)

538

1,840

3,707

4,876

Profit attributable toowners of parent(Millions of yen)

333

1,195

2,452

3,258

Basic earnings per share
(Yen)

8.01

28.66

58.79

78.12

Accounting periods

First quarter(From April 1, 2019 toJune 30, 2019)

Second quarter(From July 1, 2019 to
September 30, 2019)

Third quarter(From October 1, 2019 to
December 31, 2019)

Fourth quarter(From January 1, 2020 toMarch 31, 2020)

8.01

20.66

30.13

19.34

Cumulative periods
Net sales(Millions of yen)

Quarterly basic earnings
per share (Yen)74

ANNUAL REPORT 2020

ANNUAL REPORT 202075

Corporate
History

Advantageof Nittoc

Financial
Highlights

For
Stakeholders

Summary of theMedium-Term
Management PlanOur Businessfield

Special Features

Our Award-Winning
History
Fairs Where We
Plan to Exhibit

Introduction ofOverseas Deployment
Domestic
Construction ProjectInternational
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:43,919,291
Paid-in capital: ¥6,052 million
Tokyo Stock Exchange: Listed on the First Section

Number of
Employees(Consolidated)

Construction business: 1,195 persons
Other business: 10 persons
Total: 1,205 persons
Note: The total number of employee is including the 255 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 GRAND RUBINA BUSINESS PARK at Rasuna Epicentrum 16 G Floor,
Kawasan Rasuna Epicentrum Jl. HR Rasuna Said, Jakarta 12940, Indonesia

Staffing(Qualification
Holders)(Persons)

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

Total 1,205
52
646
684
9
317

Major Construction Methods
Urban Regeneration Field
WinBLADE Method

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

Expacker-N Method

Liquefaction countermeasure method that enables high capacity and speedy grouting

Power Blender Method

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

EinBand Drill

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

N-Jet Method

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

Maintenance and Renovation Field
New ReSP Method

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

Slope Doctor

Technology to diagnose the soundness of aged shotcrete slopes

Kiro Fukeru Method

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

Bite Off Method

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

HiSP Method

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

76

ANNUAL REPORT 2020

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 202077