Consolidated Financial Statements
Asanuma Corporation
Year ended March 31, 2015
with Independent Auditor’s ReportAsanuma Corporation
Consolidated Financial Statements
Year ended March 31, 2015

Contents

Consolidated Financial Statements
Independent Auditor’s Report ............................................................................................. 1
Consolidated Balance Sheet ................................................................................................ 2
Consolidated Statement of Income...................................................................................... 4
Consolidated Statement of Comprehensive Income............................................................ 5
Consolidated Statement of Changes in Net Assets .............................................................. 6
Consolidated Statement of Cash Flows ............................................................................. 8
Notes to Consolidated Financial Statements ..................................................................... 10

Independent Auditor’s Report
The Board of Directors
Asanuma Corporation
We have audited the accompanying consolidated financial statements of Asanuma Corporationand its consolidated subsidiaries, which comprise the consolidated balance sheet as at March 31,
2015, and the consolidated statements of income, comprehensive income, changes in net assets,
and cash flows for the year then ended and a summary of significant accounting policies andother explanatory information, all expressed in Japanese yen.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated
financial statements in accordance with accounting principles generally accepted in Japan, andfor designing and operating such internal control as management determines is necessary toenable the preparation and fair presentation of the consolidated financial statements that are freefrom material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on
our audit. We conducted our audit in accordance with auditing standards generally accepted inJapan. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the consolidated financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the consolidated financial statements. The procedures selected depend on theauditor’s judgment, including the assessment of the risks of material misstatement of theconsolidated financial statements, whether due to fraud or error. The purpose of an audit of theconsolidated financial statements is not to express an opinion on the effectiveness of the entity’s
internal control, but in making these risk assessments the auditor considers internal controls
relevant to the entity’s preparation and fair presentation of the consolidated financial statements
in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by management, as well as evaluating the overall presentation of theconsolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in allmaterial respects, the consolidated financial position of Asanuma Corporation and its
consolidated subsidiaries as at March 31, 2015, and their consolidated financial performance andcash flows for the year then ended in conformity with accounting principles generally accepted inJapan.
Convenience Translation
We have reviewed the translation of these consolidated financial statements into U.S. dollars,presented for the convenience of readers, and, in our opinion, the accompanying consolidated
financial statements have been properly translated on the basis described in Note 2.

June 29, 2015
Osaka, Japan1

Asanuma Corporation
Consolidated Balance Sheet
March 31, 2015

Millions of yen
2015
2014
AssetsCurrent assets:
Cash and cash deposits (Notes 8 and 17)
Receivables:
Notes receivable (Note 17)
Accounts receivable on completed construction
contracts (Note 17)
Other accounts receivable (Note 17)
Allowance for doubtful accounts

Thousands of
U.S. dollars(Note 2)2015

¥ 32,143¥ 32,943$ 267,479

2,281

3,506

18,981

43,4905,438(198)
51,011

46,993
1,860(242)
52,117361,904
45,253(1,648)424,490

5,560
166
43
5,769

6,009
251
42
6,302

46,2681,381
358
48,007

Deferred income taxes (Note 9)
Other current assets
Total current assets

0363
89,2860386
91,74803,021
742,997

Property and equipment, at cost:
Land (Notes 6 and 8)
Buildings and structures (Notes 6 and 8)
Machinery, equipment and vehicles
Tools, furniture and fixtures
Less accumulated depreciation
Property and equipment, net

2,430
6,203
339
983
(4,843)
5,112

2,807
6,547
1,153
1,060
(5,455)
6,112

20,221
51,6192,821
8,180(40,301)
42,540

8,263

6,528

68,761

97
245
382
1,454
(695)
9,746

91
340
424
2,178
(1,080)
8,481

807
2,039
3,179
12,099(5,783)
81,102¥ 104,144¥ 106,341$ 866,639

Inventories:
Cost of uncompleted construction contracts
Real estate held for sale
Raw materials and supplies

Investments and other assets:
Investments in securities (Notes 7, 8 and 17)
Investments in an unconsolidated subsidiary andaffiliates (Note 17)
Long-term loans receivable (Note 8)
Intangible assets
Other assets
Allowance for doubtful accounts
Total investments and other assets

Total assets

2

Liabilities
Current liabilities:
Short-term bank loans (Notes 8 and 17)
Current portion of long-term debt (Notes 8 and 17)
Payables (Note 17):
Notes payable
Accounts payable on construction contracts
Other accounts payable
Advances received on uncompleted construction
contracts
Deposits received
Income taxes payable (Note 9)
Deferred income taxes (Note 9)
Provision for compensation for completed
construction
Provision for bonuses
Provision for loss on construction contracts (Note 13)
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 8 and 17)
Liability for retirement benefits (Note 10)
Deferred income taxes (Note 9)
Other long-term liabilities
Total long-term liabilities
Total liabilities

Net assets
Shareholders’ equity (Note 12):
Common stock:
Authorized –293,565,000 shares
Issued–77,386,293 shares in 2015 and 2014
Capital surplus
Retained earnings (deficit)
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income (loss):
Net unrealized holding gain on securities (Note 7)
Retirement benefits liability adjustments (Note 10)
Total accumulated other comprehensive income (loss)
Minority interests
Total net assets
Total liabilities and net assets

Millions of yen
2015
2014

Thousands of
U.S. dollars(Note 2)
2015

15,101
5,046

16,146
5,028$ 125,664
41,991

5,683
23,99910,32940,011

5,183
24,496
10,096
39,77547,291
199,70985,953332,953

8,605
2,513
92
5

10,9193,335
126
671,607
20,912
765
42

688
–
1,282
4,636
77,979

970
159
1,749
3,944
82,157

5,725–
10,66838,579648,906

6,212
4,275
1,364
663
12,51490,493

7,922
5,482
1,320
978
15,70297,85951,69335,575
11,351
5,517
104,136
753,042

8,419
970
2,903
(137)
12,155

8,419
970
(319)
(137)
8,933

70,0598,072
24,157(1,140)101,148

2,696(1,296)1,400
96
13,651¥ 104,144

1,457(1,991)
(534)
83
8,482
¥ 106,341

22,435(10,785)
11,650799
113,597$ 866,639¥¥

See accompanying notes to consolidated financial statements.
3

Asanuma Corporation
Consolidated Statement of Income
Year ended March 31, 2015

Millions of yen
2015
2014
Net sales (Note 20):
Construction contracts
Other¥ 125,481
1,356
126,837¥ 134,547
1,764
136,311$ 1,044,196
11,284
1,055,480

117,752
1,129
118,881

128,340
1,492
129,832

979,879
9,395
989,274

7,729
227
7,956

6,207
272
6,479

64,317
1,889
66,206

5,348
2,608

5,076
1,403

44,50421,702

277
52
(536)
(32)
200

295
46
(634)
(46)
1,005

2,305
433
(4,460)
(266)
1,664

–
(36)

(220)
(33)

–
(300)

2,533

1,816

21,078

174
(447)
(273)
2,806
13
2,793

209
(166)
43
1,773
12
1,761

1,448
(3,720)(2,272)
23,350108
23,242

Cost of sales (Note 13):
Construction contracts
Other
Gross profit:
Construction contracts
Other
Selling, general and administrative
expenses (Note 14)
Operating income (Note 20)
Other income (expenses):
Interest and dividends income
Foreign exchange gain, net
Interest expenses
Guarantee fees
Gain on sales of property and equipment, net
Loss on impairment of property and equipment(Notes 6 and 20)
Other, net
Income before income taxes and minority
interests
Income taxes (Note 9):
Current
DeferredIncome before minority interests
Minority interests
Net income

Thousands of
U.S. dollars(Note 2)
2015

¥

¥

$

See accompanying notes to consolidated financial statements.
4

Asanuma Corporation
Consolidated Statement of Comprehensive Income
Year ended March 31, 2015

Millions of yen
2014
2015
¥ 2,806¥ 1,773

Thousands of
U.S. dollars(Note 2)2015
$ 23,350

Income before minority interests
Other comprehensive income:Net unrealized holding gain on securities
Retirement benefits liability adjustments
Total other comprehensive income (Note 15)
Comprehensive income

1,238
696
1,934
¥ 4,740

28–
28¥ 1,801

10,302
5,792
16,094$ 39,444

Comprehensive income attributable to:Shareholders of Asanuma Corporation
Minority interests¥ 4,72713¥ 1,78912$ 39,336
108

See accompanying notes to consolidated financial statements.
5

Asanuma Corporation
Consolidated Statement of Changes in Net Assets
Year ended March 31, 2015

Millions of yen

Balance at April 1, 2013
Net income
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at April 1, 2014, as
originally reported
Cumulative effect of changein accounting policy
Balance at April 1, 2014, as
adjusted
Net income
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2015

Commonstock¥ 8,419–––

Capitalsurplus
¥ 970
–
0
–

Retainedearnings(deficit)¥ (2,080)
1,761
–
–

–

–

–

–

–

8,419

970

(319)

(137)

8,933

–

–

429

–

429

8,419
–
–
–

970
–
0
–

110
2,793
–
–

(137)
–
0
(0)

9,362
2,793
0
(0)

–
¥ 8,419–¥ 970–¥ 2,903–¥ (137)–¥ 12,155

Treasurystock at cost
¥ (136)
–
0
(1)

Total
shareholders’equity¥ 7,173
1,761
0
(1)

Millions of yen

Balance at April 1, 2013
Net income
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at April 1, 2014, as
originally reported
Cumulative effect of changein accounting policy
Balance at April 1, 2014, as
adjusted
Net income
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2015

Retirement
benefits
liability
adjustments
¥
–
–
–
–

Total
accumulated
othercomprehensive
income (loss)¥ 1,429–––

Minority
interests
¥ 71
–
–
–

Total net
assets¥ 8,673
1,761
0
(1)

28

(1,991)(1,963)12(1,951)

1,457(1,991)

(534)

83

8,482

–

–

–

–

429

1,457
–
–
–

(1,991)
–
–
–

(534)
–
–
–

83
–
–
–

8,911
2,793
0
(0)

1,239
¥ 2,696695¥ (1,296)

1,934¥ 1,400

13
¥ 96

1,947
¥ 13,651

Net
unrealized
holding gain
on securities¥ 1,429–––6

Asanuma Corporation
Consolidated Statement of Changes in Net Assets (Continued)
Year ended March 31, 2015

Thousands of U.S. dollars (Note 2)

Balance at April 1, 2014, as
originally reported
Cumulative effect of changein accounting policy
Balance at April 1, 2014, as
adjusted
Net income
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2015

Balance at April 1, 2014, as
originally reported
Cumulative effect of changein accounting policy
Balance at April 1, 2014, as
adjusted
Net income
Sales of treasury stock
Increase in treasury stock
Net change in items other thanshareholders’ equity
Balance at March 31, 2015

Commonstock

CapitalsurplusRetainedearnings(deficit)

Treasurystock,
at costTotal
shareholders’equity$ 70,059$ 8,072$ (2,655)$ (1,140)$ 74,336

–

–

3,570

–

3,570

70,059
–
–
–

8,072
–
0
–

915
23,242––(1,140)–0(0)77,90623,2420(0)–$ 70,059–$ 8,072–$ 24,157–$ (1,140)–$ 101,148

Net
unrealized
holding gain
on securities

Thousands of U.S. dollars (Note 2)
Total
Retirement
accumulated
benefitsotherliability
comprehensive
Minority
adjustments
income (loss)
interests

Total net
assets$ 12,124$ (16,568)$ (4,444)$ 691$ 70,583

–

–

–

–

3,570

12,124(16,568)(4,444)691

74,153

–
–
–

–
–
–

–
–
–

–
–
–

23,2420(0)10,311$ 22,435

5,783$ (10,785)

16,094$ 11,650

108
$ 799

16,202$ 113,597

See accompanying notes to consolidated financial statements.
7

Asanuma Corporation
Consolidated Statement of Cash Flows
Year ended March 31, 2015
Millions of yen
2015
2014
Cash flows from operating activities:
Income before income taxes and minority interests
Adjustments for:
Depreciation and amortization
Loss on impairment of property and equipment(Decrease) increase in allowance for doubtful accounts(Decrease) increase in provision for bonuses(Decrease) increase in provision for loss on
construction contracts
Decrease in retirement benefits for employees(Decrease) increase in liability for retirement benefits
Interest and dividends income
Interest expenses
Foreign exchange gain, net
Gain on sales of property and equipment, net
Loss on valuation of membership
Loss on valuation of inventories
Decrease (increase) in notes and accounts receivable oncompleted construction contracts
Decrease in inventories(Increase) decrease in other accounts receivable
Increase in notes and accounts payable on construction
contracts
Increase in other accounts payable(Decrease) increase in advances received on
uncompleted construction contracts
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities:
Decrease (increase) in time deposits
Purchases of property and equipment
Proceeds from sales of property and equipment
Purchases of intangible assets
Purchases of investments in securities
Proceeds from sales of investments in securities
Collection of loans receivable
Other, net
Net cash provided by investing activities

Thousands of
U.S. dollars(Note 2)2015

¥ 2,533¥ 1,816$ 21,078

356
–
(98)
(159)

405
220
61
159

2,962
–
(816)
(1,323)

(467)
–
(81)
(277)
536
(52)
(200)
1
85

126
(3,703)
3,491
(295)
634
(46)
(1,005)10
11(3,886)–(674)(2,305)4,460(433)(1,664)
8
707

4,729
449
(3,578)(2,797)
1,206
1,906

39,353
3,736(29,774)

2
189

1,083
1,590

17
1,573

(2,313)
(302)
1,353
274
(567)
(189)
871

11
1,857
6,740
291
(623)
(145)
6,263

(19,248)(2,512)
11,2592,280(4,718)(1,573)
7,248

837
(203)
1,092
(66)
(7)
–
25
173
¥ 1,851(837)(1,139)
5,114
(111)
(17)
30
30
74
¥ 3,144

6,965(1,689)
9,087
(549)
(58)
–
208
1,439
$ 15,403

8

Asanuma Corporation
Consolidated Statement of Cash Flows (continued)
Year ended March 31, 2015

Millions of yen
2015
2014
Cash flows from financing activities:
Decrease in short-term bank loans, net
Repayment of long-term debt
Cash dividends paid
Repayments of lease obligations
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

Thousands of
U.S. dollars(Note 2)2015

¥ (1,044)(1,692)(0)–(1)(2,737)¥ (6,251)
–
(0)
(0)
(1)
(6,252)$ (8,688)(14,080)(0)–(8)(22,776)52
37
32,106¥ 32,143

46
3,201
28,905¥ 32,106433
308
267,171$ 267,479

See accompanying notes to consolidated financial statements.
9Asanuma Corporation
Notes to Consolidated Financial Statements
March 31, 2015
1.

Basis of Preparation of Consolidated Financial Statements

The accompanying consolidated financial statements of Asanuma Corporation (the“Company”) and consolidated subsidiaries are prepared on the basis of accounting
principles generally accepted in Japan, which are different in certain respects as to theapplication and disclosure requirements of International Financial Reporting Standards,
and have been compiled from the consolidated financial statements prepared by theCompany as required by the Financial Instruments and Exchange Act of Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications
and rearrangements have been made to the consolidated financial statements issued
domestically in order to present them in a format which is more familiar to readers outside
Japan.
Certain amounts in the prior year’s financial statements have been reclassified to conformto the current year’s presentation.
2.

U.S. Dollar Amounts

The accompanying consolidated financial statements are stated in yen, the currency of thecountry in which the Company and its consolidated subsidiaries are incorporated andoperate. The translation of yen amounts into U.S. dollar amounts is included solely forthe convenience of readers outside Japan and has been made at ¥120.17 = U.S.$1.00, theexchange rate prevailing on March 31, 2015. This translation should not be construed asa representation that yen can be converted into U.S. dollars at the above or any other rate.
3.

Principles of Consolidation

At March 31, 2015 and 2014, the Company had 5 subsidiaries. The consolidated
financial statements for the years ended March 31, 2015 and 2014 include the accounts of
the Company and its 4 subsidiaries.
The Company applied the equity method to its investments in 3 affiliates, at March 31,
2015 and 2014 for the purpose of consolidated financial statements for the years thenended.
The accounts of the remaining subsidiary were not consolidated nor the equity method
applied because its retained earnings (deficit) and net income in the aggregate were notmaterial to the consolidated financial statements.

10Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies(a) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks withdrawable
on demand, and short-term investments which are readily convertible to cash subject
to an insignificant risk of any changes in their value and which were purchased withan original maturity of three months or less.
(b) Investments in securities
Investments in securities are classified into two categories: held-to-maturity debt
securities or other securities. Held-to-maturity debt securities are stated at amortizedcost. Marketable securities classified as other securities are carried at fair value withany changes in unrealized holding gain or loss, net of the applicable income taxes,
reported as a separate component of accumulated other comprehensive income (loss).
Non-marketable securities classified as other securities are carried at cost determinedby the moving average method.
(c) Allowance for doubtful accounts
The Company and its consolidated subsidiaries provide an allowance for doubtful
accounts at an amount calculated based on their historical experience of bad debts on
ordinary receivables plus an additional estimate of probable specific bad debts from
customers experiencing financial difficulties.
(d) Inventories
Cost of uncompleted construction contracts are stated at cost determined on an
individual project basis. Real estate held for sale is stated at the lower of cost or net
selling value, cost being determined on an individual project basis. Raw materials
and supplies are stated at the lower of cost or net selling value, cost being determinedby the period average method.
(e) Property, plant and equipment (Other than leased assets)
Property, plant and equipment is stated on the basis of cost. Depreciation is
calculated by the declining-balance method over the estimated useful lives of therespective assets; however, the straight-line method is applied to buildings (except forstructures attached to the buildings) acquired on or after April 1, 1998.

11

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(f) Intangible assets (Other than leased assets)
Amortization of intangible assets is calculated by the straight-line method over theestimated useful lives of the respective assets.
Expenditures related to computer software developed for internal use are charged toincome when incurred, except if they are deemed to contribute to the generation ofincome or to future cost savings. Such expenditures are capitalized as intangible
assets and amortized over an estimated useful life of 5 years.
(g) Leases
Leased assets held under finance leases that transfer ownership are depreciated by thesame methods used for owned fixed assets. For finance leases that do not transfer
ownership, depreciation expense is calculated based on the straight-line method overthe leased period of the lease with a residual value of zero.
(h) Provision for compensation for completed construction
A provision for compensation for completed construction is provided for anticipatedfuture costs arising from warranties on completed construction based on the historical
data on the compensation cost.
(i) Provision for loss on construction contracts
A provision for loss on construction contracts is provided for uncompleted
construction projects when a future loss is expected and a reasonable estimate of theamount can be made at the fiscal year end.
(j) Retirement benefits
Liability for retirement benefits for employees has been provided at an amountcalculated based on the retirement benefit obligation after the fair value of the pension
plan assets are deducted. Retirement benefit obligation is attributed to each periodby the benefit formula method over the estimated years of service of the eligible
employees.
Prior service cost is credited or charged to income in the year in which the gain or loss
is recognized.
Actuarial gain or loss is amortized commencing in the year following the year inwhich the gain or loss is recognized by the straight-line method over a period of
principally 10 years, which is within the average remaining years of service of theeligible employees.
12Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(k) Income taxes
Income taxes are calculated based on taxable income and charged to income on an
accrual basis. Deferred tax assets and liabilities are computed based on thetemporary differences between financial reporting and the tax bases of the assets andliabilities which will result in taxable or deductible amounts in the future. The
calculation of deferred tax assets and liabilities is based on the enacted tax laws.
Valuation allowances are utilized to reduce deferred tax assets to the amount thatmanagement believes is more likely than not to be realized. In assessing the
likelihood of realization, the Company considers all currently available evidence for
future years, both positive and negative, supplemented by information regarding
historical results for each tax jurisdiction.
(l) Hedge accounting
Gain or loss on derivatives positions designated as hedges is deferred until the loss orgain on the respective underlying hedged items is recognized. Interest-rate swaps
which meet certain conditions are accounted for as if the interest rates applied to theswaps had originally applied to the underlying debt.
(m) Revenue recognition
The Company recognizes revenue by applying the percentage-of-completion method
for the construction projects for which the outcome of the construction activity isdeemed certain at the end of the reporting period. To estimate the progress of such
construction projects, the Company measures the percentage of completion bycomparing costs incurred to date with the most recent estimate of total costs required
to complete the project (cost to cost basis). For other construction projects where theoutcome cannot be reliably measured, the completed-contract method is applied.
Net sales related to construction contracts accounted for by the percentage-ofcompletion method totaled ¥123,189 million ($1,025,123 thousand) and ¥129,136
million for the years ended March 31, 2015 and 2014, respectively.
(n) Supplementary information
Up to the year ended March 31, 2014, the Company had recorded a provision forbonuses at the estimated amount to be paid as allocated to each given year. Effective
April 1, 2014, the Company changed the applicable bonus period. As a result of thischange, the Company did not record a provision for bonuses at March 31, 2015.

13

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

5.

Accounting Change

The Company and its domestic subsidiaries adopted the main clause of Section 35 of“Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan(“ASBJ”) Statement No.26 of May 17, 2012) and the main clause of Section 67 of“Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No.25 ofMarch 26, 2015) effective from April 1, 2014. As a result, the methods for calculating
the retirement benefit obligation and service cost have been revised in the following
respects: the method for attributing projected benefits to each period has been changed
from the straight-line method to the benefit formula method, and the method for
determining the discount rate has been changed to the use of a single weighted-average
discount rate reflecting the expected timing and amount of benefit payments.
The cumulative effect of changing the methods for calculating the retirement benefit
obligation and service cost was recognized by adjusting retained earnings at April 1, 2014,
in accordance with the transitional treatment provided in Section 37 of AccountingStandard for Retirement Benefits.
As a result, liability for retirement benefits decreased by ¥429 million ($3,570 thousand)and retained deficit decreased by ¥429 million ($3,570 thousand) (as a result, retained
deficit changed to retained earnings) at April 1, 2014. The effects on consolidated
operating income and income before income taxes and minority interests for the year
ended March 31, 2015 were immaterial. Further information regarding the impact on per
share amounts can be found in Note 19 “Amounts per Share.”14

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

6.

Loss on Impairment of Property and Equipment

Aggregate loss on impairment of property and equipment of ¥220 million was recorded
for the year ended March 31, 2014.
Loss on impairment corresponding to land and buildings for the year ended March 31,
2014 is as follows:

Location

Main useClass

Shizuoka Prefecture and other
Hiroshima Prefecture and other
Hokkaido Prefecture and otherWakayama Prefecture and otherWelfare facilities

Buildings and land
Buildings and land
Buildings
Land

Idle properties
Leasing
Investment

Millions of yen
2014
¥ 97
75
48
0
¥ 220

The Company and its consolidated subsidiaries, in principle, group their fixed assets for
operating purposes at each office but group their property, plant and equipment for leasing
purposes and idle properties individually. The affiliates group their property, plant andequipment each company. Due to a decline in market price of real estate during the year
ended March 31, 2014, the Company and its consolidated subsidiaries reduced thecarrying value of assets outlined above to their respective estimated recoverable amount.
The estimated recoverable amounts of the property, plant and equipment for leasing
purposes and idle properties were measured at their estimated net selling prices based on
the figures presented by government authorities and others.
No loss on impairment of property, plant and equipment was recorded for the year ended
March 31, 2015.

15

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

7.

Investments in Securities

At March 31, 2015 and 2014, marketable securities classified as held-to-maturity debt
securities were as follows:
Millions of yen
Carryingvalue
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

¥ 15
¥ 15

2015
Estimated Unrealized
fair value
gain

¥ 16
¥ 16

¥ 1
¥ 1

Carrying
value

2014
Estimated
fair value

Unrealized
gain

¥ 15
¥ 15

¥ 15
¥ 15

¥0
¥0

Thousands of U.S. dollars
2015
Carrying Estimated Unrealizedvalue
fair value
gain
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

$ 125
$ 125

$ 133
$ 133

$ 8
$ 8

16

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

7.

Investments in Securities (continued)

At March 31, 2015 and 2014, marketable securities classified as other securities were as
follows:
Millions of yen

Other securities whosecarrying value exceeds
their acquisition costs:
Equity securities
Other securities whosecarrying value does notexceed their acquisition
costs:
Equity securities

Acquisition
costs

2015
Carrying
value

Unrealized
gain (loss)

Acquisition
costs

2014
Carrying
value

Unrealized
gain (loss)¥ 3,581¥ 7,441¥ 3,860¥ 3,573¥ 5,706¥ 2,13328¥ 3,60926¥ 7,467(2)¥ 3,85828¥ 3,60125¥ 5,731(3)¥ 2,130

Thousands of U.S. dollars
2015
Acquisition Carrying
Unrealized
costs
value
gain (loss)
Other securities whosecarrying value exceeds
their acquisition costs:
Equity securities
Other securities whosecarrying value does notexceed their acquisition
costs:
Equity securities$ 29,799$ 61,921$ 32,121233$ 30,032

216$ 62,137(16)$ 32,105

Refer to Note 17 “Financial Instruments” for the redemption schedule at March 31, 2015
for held-to-maturity debt securities.

17

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

8.

Short-Term Bank Loans and Long-Term Debt

Short-term bank loans from banks had average interest rates of 1.91% at March 31, 2015
and 1.96% at March 31, 2014.
Long-term debt at March 31, 2015 and 2014 is summarized as follows:
Millions of yen
2015
2014
Unsecured loans from banks, payable inyen, at rates ranging from 2.59% to 3.56%
Secured loans from insurance companies,
payable in yen at rates ranging from
1.53% to 2.56%
Total
Less current portion included¥

68

11,190
11,258(5,046)¥ 6,212¥75

12,875
12,950(5,028)¥ 7,922

Thousands of
U.S. dollars
2015
$

566

93,11893,684(41,991)$ 51,693

The aggregate annual maturities of long-term debt subsequent to March 31, 2015 aresummarized as follows:
Years ending March 31,
2016
2017
2018
2019 and thereafter

Millions ofyen¥ 5,046
1,053
1,047
4,112
¥ 11,258

Thousands of
U.S. dollars$ 41,991
8,763
8,713
34,217$ 93,684

Assets pledged at March 31, 2015 and 2014 as collateral for short-term bank loans, current
portion of long-term debt and line of credit of the Company are summarized as follows:

Cash and cash deposits
Buildings and structures
Land
Investments in securities

Millions of yen
2015
2014
¥
837
¥ 837
1,636
1,734
2,035
2,479
6,522
4,935
¥ 11,030¥ 9,985

Thousands of
U.S. dollars
2015$ 6,965
13,614
16,93554,273$ 91,787

All assets of the consolidated subsidiaries engaged in the PFI business were pledged ascollateral for their loans under the project finance agreements. Assets pledged at March
31, 2015 and 2014 amounted to ¥8,550 million ($71,149 thousand) and ¥10,292 million as
collateral for loans of ¥7,854 million ($65,357 thousand) and ¥9,538 million, respectively.

18

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

8.

Short-Term Bank Loans and Long-Term Debt (continued)

Assets pledged at March 31, 2015 and 2014 as collateral for loans of affiliates engaged in
the PFI business are summarized as follows:

Investments in securities
Long-term loans receivable

Millions of yen
2015
2014
¥ 74
¥ 68
130
130
¥ 204
¥ 198

Thousands of
U.S. dollars
2015
$ 616
1,082
$ 1,698

In order to achieve more efficient financing, the Company has concluded line-of-credit
agreements with certain financial institutions. The status of these lines of credit at March
31, 2015 and 2014 is as follows:

Lines of credit
Credit utilized
Available credit
9.

Millions of yen
2015
2014
¥ 5,000¥ 5,000––¥ 5,000¥ 5,000

Thousands of
U.S. dollars
2015$ 41,608–$ 41,608

Income Taxes

Income taxes applicable to the Company and its consolidated subsidiaries comprise
corporation, inhabitants’ and enterprise taxes which, in the aggregate, resulted in statutory
tax rates of approximately 35.9% and 38.3% for the years ended March 31, 2015 and 2014,
respectively.
A reconciliation of the statutory tax rates and the effective tax rates for the years ended
March 31, 2015 and 2014 as a percentage of income before income taxes and minority
interests is summarized as follows:
Statutory tax rates
Permanently non-tax-deductible expenses
Permanently non-taxable income
Per capita portion of inhabitants’ taxes
Tax credit for corporation tax
Valuation allowance
Unrecognized deferred income taxes relating toexcess of cost over equity in net assets ofsubsidiaries and other
Decrease in deferred tax liabilities resulting fromchange in the statutory tax rates
Other
Effective tax rates

2015
35.9 %
1.6
(1.0)
5.0
(0.7)
(50.0)

2014
38.3 %
5.2
(0.7)
7.5
(1.0)
(46.9)

(0.4)

(0.5)

(0.9)
(0.3)
(10.8)%

(0.0)
0.5
2.4 %
19

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Income Taxes (continued)

The significant components of deferred tax assets and liabilities of the Company and its
consolidated subsidiaries at March 31, 2015 and 2014 are summarized as follows:
Millions of yen
2015
2014
Deferred tax assets:
Allowance for doubtful accounts
Provision for bonuses
Provision for compensation forcompleted construction
Inventories
Provision for loss on construction
contracts
Liability for retirement benefits
Assets transferred to defined
contribution pension plans
Loss on impairment of fixed assets
Loss on revaluation of investments insecurities
Tax loss carryforwards
Other
Gross deferred tax assets
Less valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Unrealized holding gain on securities
Deferred capital gains on property
Other
Total deferred tax liabilities
Net deferred tax liabilities

¥

289

–

¥

412
63

Thousands of
U.S. dollars
2015
$

2,405

–

229
103

349
81

1,905
857

426
1,387

628
1,966

3,545
11,542

238
651

395
1,207

1,981
5,417

102
3,389
645
7,459
(7,459)
0

112
3,853
732
9,798
(9,798)0849
28,202
5,367
62,070(62,070)0(1,166)(202)(1)(1,369)¥ (1,369)

(677)
(648)
(1)
(1,326)¥ (1,326)(9,703)(1,682)(8)(11,393)$ (11,393)

The “Act for Partial Amendment of the Income Tax Act, etc.” (Act No. 9 of 2015) and the“Act for Partial Amendment of the Local Tax Act, etc.” (Act No. 2 of 2015) were
promulgated on March 31, 2015. As a result, the effective statutory tax rate used tomeasure the Company’s deferred tax assets and liabilities was changed from 35.9 % to33.2% and 32.5% for the temporary differences expected to be realized or settled in theyear beginning April 1, 2015 and for the temporary differences expected to be realized or
settled from April 1, 2016, respectively. The effect of the announced reduction of theeffective statutory tax rate was to decrease deferred tax liabilities, after offsetting deferred
tax assets, by ¥144 million ($1,198 thousand) and decrease income taxes-differed by ¥21
million ($175 thousand) and unrealized holding gain on securities by ¥123 million ($1,024
thousand) as of and for the year ended March 31, 2015.

20

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Retirement Benefits
1. Outline of retirement benefits for employees
The Company has funded or unfunded defined benefit pension plans and defined
contribution plans in order to allocate for employees’ retirement benefits. In addition tothese retirement benefit plans, the Company may pay additional retirement benefits whenemployees retire. The consolidated subsidiaries do not have any retirement pension
plans.
Under the funded defined benefit plans, the Company pays lump-sum or pension
payments, the amounts of which are determined by reference to their basic rates of pay
and length of service. Under the unfunded lump-sum retirement benefit plans, theCompany pays lump-sum payments, the amounts of which are determined by reference totheir basic rates of pay and length of service.
2.

Defined benefit plans(1) The changes in retirement benefit obligation for the years ended March 31, 2015
and 2014 are as follows:

Balance at the beginning of the year, as
originally reported
Cumulative effect of change in accounting
policyBalance at the beginning of the year, as
adjustedService cost
Interest cost
Actuarial (gain) loss
Benefit paid
Balance at the end of the year

Millions of yen
2014
2015

Thousands of
U.S. dollars
2015¥ 12,036¥ 12,593$ 100,158

(430)

–

(3,578)

11,606
396
115
(66)
(961)
¥ 11,090

12,593373
127
103(1,160)¥ 12,036

96,580
3,295
957
(549)
(7,997)$ 92,286(2) The changes in plan assets for the years ended March 31, 2015 and 2014 are as
follows:

Balance at the beginning of the year
Expected return on plan assets
Actuarial gainContributions by the employer
Benefit paid
Balance at the end of the year

Millions of yen
2014
2015
¥ 6,727¥ 6,554
134
131
152
437
280
270
(577)
(739)
¥ 6,815¥ 6,554

Thousands of
U.S. dollars
2015$ 54,539
1,090
3,637
2,247
(4,802)$ 56,711
21

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Retirement Benefits (continued)
2.

Defined benefit plans (continued)(3) The following table sets forth the funded status of the plans and the amounts
recognized in the consolidated balance sheets as of March 31, 2015 and 2014 for
the Company’s and the consolidated subsidiary’s defined benefit plans:

Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit obligation
Liability recognized in the consolidatedbalance sheet

Millions of yen
2014
2015
¥ 7,454¥ 6,923(6,815)(6,553)
901
108
4,167
4,581
¥ 4,275¥ 5,482

Thousands of
U.S. dollars
2015$ 57,610(56,711)899
34,676$ 35,575(4) The components of retirement benefit expense for the years ended March 31,
2015 and 2014 are as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain and loss
Retirement benefit expense

Millions of yen
2014
2015
¥ 396
¥ 373
115
127
(131)
(134)
193
123
¥ 573
¥ 489

Thousands of
U.S. dollars
2015$ 3,295
957(1,090)1,606$ 4,768(5) The component of retirement benefits liability adjustments included in othercomprehensive income (before tax effect) for the year ended March 31, 2015 is asfollows:

Actuarial gain

Thousands ofMillions of yen
U.S. dollars
2015
¥ 696
$ 5,79222

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Retirement Benefits (continued)
2.

Defined benefit plans (continued)(6) The components of retirement benefits liability adjustments included inaccumulated other comprehensive income (loss) (before tax effect) as of March
31, 2015 and 2014 are as follows:

Unrecognized actuarial loss

Millions of yen
2014
2015
¥ (1,296)¥ (1,991)

Thousands of
U.S. dollars
2015$ (10,785)(7) The fair value of plan assets, by major category, as a percentage of total plan
assets as of March 31, 2015 and 2014 are as follows:
Bonds
Equities
Cash and deposits
Other
Total

2015
71%
28%
1%
0%
100%

2014
68%
23%
9%
0%
100%

The expected long-term rate of return on plan assets is determined as a result of aconsideration of both the portfolio allocation at present and in the future, and the
expected long-term rate of return from multiple plan assets at present and in the
future.
(8) The assumptions used in accounting for the defined benefit plans are as follows:

Discount rate
Expected long-term rate of return onplan assets
3.

2015
1.0%

2014
1.0%

2.0%

2.0%

Defined contribution pension plans
Millions of yen
2014
2015
Contributions to defined contribution
pension plans

¥ 166

¥ 170

Thousands of
U.S. dollars
2015$ 1,38123

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Asset Retirement Obligations
The Company and its domestic consolidated subsidiaries estimated the cost of restoration
obligations based on property lease agreements of the head office in Osaka Prefecture.
As the cost of the restoration obligations is immaterial, the information on asset retirement
obligations is omitted.
Regarding certain restoration obligations, the Company estimated nonrecoverable amountsof deposits for those premises and recorded the portion attributable to the year ended
March 31, 2015 as expenses, instead of recording asset retirement obligations.
12. Shareholders’ Equity
The Companies Act (the “Act”) provides that an amount equal to 10% of the amount to be
disbursed as distributions of capital surplus (other than the capital reserve) and retained
earnings (other than the legal reserve) be transferred to the capital reserve and the legal
reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25%of the capital stock account. Such distributions can be made at any time by resolution of
the shareholders, or by the Board of Directors if certain conditions are met.
Under the Act, upon the issuance and sale of new shares of common stock, the entire
amount of the proceeds is required to be accounted for as common stock, although a
company may, by resolution of the Board of Directors, account for an amount notexceeding one-half of the proceeds of the sale of new shares as additional paid-in capital
included in capital surplus.
Movements in shares of common stock in issue and treasury stock during the years ended
March 31, 2015 and 2014 are summarized as follows:

Shares ofcommon stockin issue
Treasury stock

Shares ofcommon stockin issue
Treasury stock

April 1, 2014

Number of shares
2015
Increase
Decrease

77,386,293
1,287,575–
4,554

April 1, 2013

Number of shares
2014
Increase
Decrease

77,386,293
1,279,903

–
8,532

–
711

–
860

March 31, 2015

77,386,293
1,291,418

March 31, 2014

77,386,293
1,287,575
24

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

12. Shareholders’ Equity (continued)
The increases of treasury stock were due to purchases of shares of less than one voting
unit and the decreases of treasury stock were due to sales of shares at requests ofshareholders owning less than one voting unit for the years ended March 31, 2015 and2014.
13. Provision for Loss on Construction Contracts
Provision for loss on construction contracts included in cost of sales for the years ended
March 31, 2015 and 2014 amounted to ¥1,282 million ($10,668 thousand) and ¥1,749
million, respectively.
14. Research and Development Costs
Research and development costs included in selling, general and administrative expenses
for the years ended March 31, 2015 and 2014 amounted to ¥154 million ($1,282 thousand)and ¥129 million, respectively.
15. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated tocomponents of other comprehensive income for the years ended March 31, 2015 and2014:
Millions of yen
2014
2015
Net unrealized holding gain on
investments in securities:
Amount arising during the year
Before tax effectTax effectNet unrealized holding gain on
investments in securities, net
Retirement benefits liability adjustments:
Amount arising during the year
Reclassification adjustments for loss
realized in the statement of income
Retirement benefits liability adjustments,
net
Total other comprehensive income

Thousands of
U.S. dollars

2015¥ 1,728
1,728
(490)

¥ 6
6
22

$ 14,380
14,380(4,078)1,238

28

10,302

497

–

4,136

199

–

1,656

696
¥ 1,934

–
¥ 28

5,792
$ 16,094
25

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

16. Leases
Future minimum lease payments subsequent to March 31, 2015 for finance leases
accounted for as operating leases are summarized as follows:

Years ending March 31,
20162017 and thereafter

Millions of yen
¥

251
923
¥ 1,174

Thousands of
U.S. dollars$ 2,089
7,681$ 9,770

17. Financial Instruments(1) Policy for financial instruments
The Company and its consolidated subsidiaries manage their funds by investing onlyin short-term deposits, and primarily raise funds by borrowings from banks. The
purpose of entering into derivative transactions is to mitigate fluctuation risk related
to interest rates with respect to borrowings from banks, and derivative transactions are
not carried out for speculative purposes.
(2) Types of financial instruments, related risk and risk management for financial
instruments
Notes and accounts receivable on completed construction contracts are subject to thecredit risk of customers. Regarding this risk, the Company and its consolidated
subsidiaries monitor due dates and outstanding balances by individual customer, andthe credit worthiness of their main customers regularly.
For investments in securities, the Company and consolidated subsidiaries review thefair values of such financial instruments every quarter.
Other accounts receivable mainly consist of consumption tax receivable and they are
subject to the credit risk of customers. Regarding this risk, the Company and its
consolidated subsidiaries monitor due dates and outstanding balances by individual
customer, and the credit worthiness of their main customers regularly.
Notes and accounts payable on construction contracts are operating obligations andmostly are payable within one year.
Short-term bank loans and long-term debt are mainly utilized for business operations.
Long-term debt with variable interest rates is exposed to interest rate fluctuation risk.
However, to reduce such risk and fix interest expense for a certain long-term debt
bearing interest at variable rates, the Company utilizes interest rate swaps as ahedging instrument.
26

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. Financial Instruments (continued)(2) Types of financial instruments, related risk and risk management for financial
instruments (continued)
In addition, the Company follows internal policies which include procedures andauthorization processes governing derivatives within the actual demand.
(3) Supplementary explanation of the market value of financial instruments
The market value of financial instruments is based on the market price, and when no
market price exists, a rationally calculated amount is used. These calculations
include variable factors, so the resulting amount may change if different underlying
assumptions are applied.
The carrying value, estimated fair value and resulting differences as of March 31, 2015
and 2014 are as follows. Financial instruments for which fair value is deemed extremely
difficult to determine are not included.
Millions of yen
2015

Cash and cash deposits
Notes and accounts receivable oncompleted construction contracts
Other accounts receivable
Investments in securities
Total assets
Short-term bank loans and current
portion of long-term debt
Notes and accounts payable on
construction contracts
Other accounts payable
Long-term debt
Total liabilities

Carrying value¥ 32,143

Estimated fairvalue
¥ 32,143

Difference¥ –45,771
5,438
7,482¥ 90,834

46,262
5,438
7,483¥ 91,326

491
–
1
¥ 492

¥ 20,147¥ 20,147¥

29,682
10,3296,212¥ 66,370

29,682
10,358
6,558¥ 66,745

–
–
346
¥ 346

–

27

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. Financial Instruments (continued)
Millions of yen
2014

Cash and cash deposits
Notes and accounts receivable oncompleted construction contracts
Investments in securities
Total assets
Short-term bank loans and current
portion of long-term debt
Notes and accounts payable on
construction contracts
Other accounts payable
Long-term debt
Total liabilities

Carrying value¥ 32,943

Estimated fairvalue
¥ 32,943

Difference¥–

50,4995,746¥ 89,188

51,0095,746¥ 89,698

510
0
¥ 510

¥ 21,174¥ 21,174¥

29,67910,096
7,922¥ 68,871

29,67910,096
8,204¥ 69,153

–
–
282
¥ 282

–

Thousands of U.S. dollars
2015

Cash and cash deposits
Notes and accounts receivable oncompleted construction contracts
Other accounts receivable
Investments in securities
Total assets
Short-term bank loans and current
portion of long-term debt
Notes and accounts payable on
construction contracts
Other accounts payable
Long-term debt
Total liabilities

Carrying value

Estimated fairvalue

$ 267,479$ 267,479$

380,885
45,25362,262$ 755,879

384,971
45,25362,270$ 759,973

4,086
–
8
$ 4,094$ 167,655$ 167,655$

247,000
85,953
51,693$ 552,301

247,000
86,19554,572$ 555,422

–
–
2,879
$ 2,879

Difference––

Methods to determine the estimated fair value of financial instruments and other mattersrelated to securities and derivative transactions:
Cash and cash deposits, other accounts receivable
Since these items are settled in a short period of time, their carrying values approximate
the fair value.
28

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. Financial Instruments (continued)
Notes and accounts receivable on completed construction contracts
For the valuation of notes and accounts receivable on completed construction contracts,
the Company and its consolidated subsidiaries use the present value based on assumptions
such as the collection term of each receivable and discount rates reflected in each credit
risk.
Investments in securities
The estimated fair values of equity securities are based on quoted market prices. The
estimated fair value of debt securities are based on the price provided by the financial
institutions making markets in these securities.
Notes and accounts payable on construction contracts, other accounts payable andshort-term bank loans
Since these items are settled in a short period of time, their carrying values approximate
the fair value.
Long-term debt
The estimated fair values of long-term debt are based on present value of the total amountincluding principal and interest, discounted by the expected interest rate in the case of new
borrowings of the same loan as in the amount of the balance as of the end of the period.
Floating interest rates for long-term loans were hedged by interest-rate swap agreements
and accounted for as loans with fixed interest rates. The estimated fair value of thoselong-term loans is reasonably based on the present value of the total of principals, interests
and net cash flows of swap agreements discounted by the interest rates, estimatedreasonably, applicable to loans made under similar circumstances.
Derivatives transactions
Refer to the Note 18 “Derivatives” for fair value information at March 31, 2015 and 2014of derivative transactions.
Financial instruments for which it is extremely difficult to determine the fair value:
Unlisted equity securities of ¥878 million ($7,306 thousand) and ¥873 million included“Investment in an unconsolidated subsidiary and affiliates” in the consolidated balance
sheets at March 31, 2015 and 2014, respectively, are based neither on market value nor
estimated future cash flow, and it is difficult to determine the estimated fair value.
Therefore, they are not included in the above table.

29

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. Financial Instruments (continued)
The redemption schedule for cash deposits, receivables and marketable securities withmaturity dates at March 31, 2015 is summarized as follows:

Cash deposits
Notes and accounts receivable oncompleted construction contracts
Other accounts receivable
Investments in securities:
Held-to-maturity debt securities
Total assets

Cash deposits
Notes and accounts receivable oncompleted construction contracts
Other accounts receivable
Investments in securities:
Held-to-maturity debt securities
Total assets

Within 1 year
¥ 32,139

Millions of yen
Over 1 year
within 5 years¥–

39,547
5,438

3,486
–

2,738
–

–
¥ 77,124–¥ 3,48615¥ 2,753

Over 5 years¥–

Thousands of U.S. dollars
Over 1 year
Within 1 year
within 5 years
Over 5 years$ 267,446$–$–
329,092
45,25329,009–22,784––$ 641,791–$ 29,009

125$ 22,909

The redemption schedule for short term bank loans, current portion of long-term debt andlong-term debt at March 31, 2015.

Within 1
year
Short-term bank loans
and current portion of
long- term debt
Long-term debt
Total

¥ 20,147–¥ 20,147

Within 1
year
Short-term bank loans
and current portion of
long- term debt
Long-term debt
Total

$ 167,655–$ 167,655

Over 1 year
within 2
years

¥

–
1,053
¥ 1,053

Over 1 year
within 2
years

$

–
8,763
$ 8,763

Millions of yen
Over 2 year Over 3 year
within 3
within 4
years
years

¥

–
1,047
¥ 1,047¥–
1,087¥ 1,087

Thousands of U.S. dollars
Over 2 year Over 3 year
within 3
within 4
years
years

$

–
8,713
$ 8,713$–
9,046$ 9,046

Over 4 year
within 5
years

¥

–
271
¥ 271

Over 5
years

¥

–
2,754
¥ 2,754

Over 4 year
within 5
years

$

–
2,255
$ 2,255

Over 5years$–
22,916$ 22,91630

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

18. Derivatives
Derivative transactions to which hedge accounting is applied
Interest-rate related transactions

Method of hedge
accounting
Swap rateapplied tounderlying debt

Method of hedge
accounting
Swap rateapplied tounderlying debt

Transaction
Interest rate swap:
Receive /floating and pay/ fixed
Total

Transaction
Interest rate swap:
Receive /floating and pay/ fixed
Total

Hedged item

Long-term debt

Hedged item

Long-term debt

Millions of yen
2015(Including portion in
Notional amount excess of one year)¥ 2,957¥ 2,957¥ 2,218¥ 2,218(*)(*)

Millions of yen
2014(Including portion in
Notional amount excess of one year)¥ 3,696¥ 3,696

Estimated
fair value¥ 2,957¥ 2,957

Estimated
fair value

(*)
(*)

Thousands of U.S. dollars
Method of hedge
accounting
Swap rateapplied tounderlying debt

Transaction
Interest rate swap:
Receive /floating and pay/ fixed
Total

Hedged item

Long-term debt

2015(Including portion in
Notional amount excess of one year)$ 24,607$ 24,607$ 18,457$ 18,457

Estimated
fair value

(*)
(*)

*Because interest rate swap agreements are accounted for as if the interest rates applied tothe swaps had originally applied to the underlying long-term loans payable, their fairvalues were included in long-term debt.

31

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Amounts per Share
Amounts per share at March 31, 2015 and 2014 and for the years then ended were as
follows:
Yen
Net assets
Net income
Cash dividends

2015

2014

U.S. dollars
2015¥ 178.13
36.71
2.00

¥ 110.36
23.13–$ 1.480.31
0.02

Information used in the computation of net income per share for the years ended March 31,
2015 and 2014 is presented as follows:
Thousands of
U.S. dollars
2015

Millions of yen
2015
2014
Net income
Net income not applicable tocommon shareholders
Net income used in the calculationof net income per share¥ 2,793¥ 1,761$ 23,242–––¥ 2,793¥ 1,761$ 23,242

Thousands of shares
2015
2014
Weighted-average number of shares of common stock
used in the calculation of net income per share

76,097

76,103

Net assets per share are based on the number of shares of common stock outstanding at theyear end.
Net income per share is computed based on the net income attributable to shareholders ofcommon stock and the weighted-average number of shares of common stock outstanding
during the year. Diluted amounts per share have not been presented for the years ended
March 31, 2015 and 2014 since neither the Company nor any of the consolidated
subsidiaries had any potentially dilutive shares at March 31, 2015 and 2014.
Cash dividends per share represent the cash dividends proposed by the Board of Directors
as applicable to the respective years together with the interim cash dividends paid.
As described in Note 5 “Accounting change”, the Company and its domestic subsidiaries
adopted ASBJ Statement No.26 and ASBJ Guidance No.25 effective from April, 2014.
As a result, net assets per share at March 31, 2015 increased by ¥5.64 ($0.05).

32

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. Segment Informationa.

Segment Information(1) Overview of reporting segments
The reporting segments of the Company and its consolidated subsidiaries arecomponents for which discrete financial information is available and whose operating
results are regularly reviewed by the Company’s Board of Directors to make decisions
about resource allocation and assess their performance.
The Company and its consolidated subsidiaries mainly operate in the construction
business and have two reporting segments, which are the Building Construction
Segment and the Civil Engineering Segment.
(2) Method of calculating sales and income in reporting segments
The method of accounting for reporting segments is, in principle, the same as stated in
Note 4 “Summary of Significant Accounting Policies.” The income of reporting
segments are calculated on the basis of operating income. Intersegment sales arerecorded based on current market prices.
Millions of yen
2015
Reporting Segments
Building
Civil
Construction Engineering
Net sales and income:Sales to third parties
Intersegment sales
Net sales
Segment income¥ 103,638–
103,638¥ 5,567¥ 21,843–
21,843¥ 2,161

Total

Others

Sub total

Adjustments

Total¥ 125,481–
125,481¥ 7,728¥ 1,356
7
1,363
¥
96

¥ 126,837
7
126,844¥ 7,824

¥

–
(7)
(7)
¥ (5,216)¥126,837–
126,837¥ 2,608

Total

Millions of yen
2014
Reporting Segments
Building
Civil
Construction Engineering
Net sales and income:Sales to third parties
Intersegment sales
Net sales
Segment income¥ 112,389
5
112,394¥ 4,474¥ 22,158–
22,158¥ 1,691

Total

Others

Sub total

Adjustments¥ 134,547
5
134,552¥ 6,165¥ 1,764
127
1,891
¥ 199

¥ 136,311
132
136,443¥ 6,364

¥

–
(132)
(132)
¥ (4,961)¥ 136,311–
136,311¥ 1,40333

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. Segment Information (continued)a.

Segment Information (continued)(2) Method of calculating sales and income in reporting segments (continued)
Thousands of U.S. dollars
2015
Reporting Segments

Net sales and income:Sales to third parties
Intersegment sales
Net sales
Segment incomeb.

Building
Construction

Civil
Engineering

Total$ 862,428–$ 181,768–$1,044,196–$ 11,284 $ 1,055,480
58
58

$

–
(58)

$ 1,055,480–$ 862,428$ 181,768$1,044,196$ 11,342 $ 1,055,537

$

(58)

$ 1,055,480

$

$

$

$

$ (43,405)

46,326

17,98364,309Others798 $Sub total

65,107

Adjustments

Related information(1) Information by products and services
Disclosure of information by products and services for the years ended March 31,
2015 and 2014 has been omitted as the Company classifies such information in thesame way as it does its reporting segments.
(2) Information by geographical segment
Disclosure of sales and property, plant and equipment by geographical area for theyears ended and as of March 31, 2015 and 2014 has been omitted as sales to domestic
customers were in excess of 90% of consolidated net sales, and the balance ofproperty, plant and equipment in Japan was in excess of 90% of consolidated property,
plant and equipment.
(3) Information by major customers
Disclosure of information by major customers for years ended March 31, 2015 and2014 has been omitted as sales to each customer were less than 10% of consolidated
net sales.

34

Total

$

21,702

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. Segment Information (continued)c.

Loss on impairment of property and equipment by reporting segment
Millions of yen
2014
Reporting Segments

Loss on impairmentof property andequipment

Building
Construction

Civil
Engineering

Total

¥–

¥–

¥–

Other

Elimination
andcorporate

Total

¥ 32

¥ 188

¥ 220

21. Subsequent EventAppropriation of retained earnings
The following distribution of retained earnings of the Company, which has not beenreflected in the accompanying consolidated financial statements for the year ended March
31, 2015, was approved at the annual general meeting of the shareholders of the Company
held on June 26, 2015.

Cash dividends of ¥2.00 ($0.02) per share

Millions of yen¥ 152

Thousands of
U.S. dollars$ 1,26535