Consolidated Financial Results for the Six Months Ended September 30, 2016 [Japanese GAAP]

Transcription

1 Disclaimer: This financial information, a digest of Taisei Corporation's "Consolidated Financial Results for the Six Months Ended September 30, 2016" ("Kessan Tanshin") disclosed at the Tokyo Stock Exchange on November 11, 2016 was translated into English and presented solely for the convenience of non-japanese speaking users. If there is any discrepancy between Japanese "Kessan Tanshin" and this document, Japanese "Kessan Tanshin" will prevail. November 11, 2016 Consolidated Financial Results for the Six Months Ended September 30, 2016 [Japanese GAAP] Listed company name: Taisei Corporation Stock exchange listings: Tokyo Stock Exchange, 1st Section Nagoya Stock Exchange, 1st Section Stock code: 1801 Location of headquarters: Tokyo, Japan Website: Representative: Yoshiyuki Murata, President and Chief Executive Officer Contact: Shuichi Okuda, General Manager of Accounting Department TEL: (from overseas) Scheduled date for submission of quarterly report: November 14, 2016 Scheduled date for dividend payment: December 2, 2016 Supplementary materials for quarterly financial summaries: Yes Quarterly financial results briefing: Yes (for analysts and institutional investors) 1. Consolidated financial results for the six months ended September 30, 2016 (From April 1, 2016 to September 30, 2016) (1) Operating results (cumulative total) (Millions of yen, rounded down) (Percentages indicate changes from the same period in the previous fiscal year.) Net income attributable Net sales Operating income Ordinary income to owners of parent % % % % September 30, ,382 (11.1) 52, , , September 30, , , , , (Note) Comprehensive income: September 30, ,869 million yen 256.6% September 30, ,291 million yen (79.5%) September 30, 2016 September 30, 2015 Net income per share Diluted net income per share yen yen (2) Financial position (Millions of yen, rounded down) Total assets Equity Equity ratio % As of September 30, ,531, , As of March 31, ,660, , (Reference) Shareholders equity: September 30, ,002 million yen March 31, ,875 million yen 1

2 2. Dividends Dividends per share (yen) First quarter end Second quarter end Third quarter end Year-end Total (Full year) Year ended March 31, Year ending March 31, Year ending March 31, 2017 (Forecast) (Note) Revisions of projected dividends most recently announced: None 3. Consolidated results forecast for the fiscal year ending March 31, 2017 (FY2016) (From April 1, 2016 to March 31, 2017) (Millions of yen, rounded down) (Percentages indicate the rate of change from the same period of the previous fiscal year) Net sales Operating income Ordinary income Net income attributable to owners of parent Net income per share % % % % yen Full fiscal year 1,470,000 (4.9) 112,000 (4.7) 109,000 (7.4) 76,000 (1.4) (Note) Revisions of consolidated forecasts most recently announced: Yes *Notes (1) Changes in principal subsidiaries during the quarter under review (Changes in specified subsidiaries accompanying changes in scope of consolidation): None (2) Adoption of specific accounting methods for the preparation of quarterly consolidated financial statements: Yes (3) Changes in accounting principles, changes in accounting estimates and restatements (i) Changes in accounting principles due to revisions to accounting standards, etc.: Yes (ii) Changes due to accounting principles other than (i): None (iii) Changes in accounting estimates: None (iv) Restatements: None (4) Number of shares outstanding (common stock) i. Number of shares outstanding at the end of period (including treasury stock) As of September 30, ,146,752,860 shares As of March 31, ,171,268,860 shares ii. Number of treasury stock at the end of period As of September 30, ,383,350 shares As of March 31, ,370,964 shares iii. Average number of shares during the period (quarterly cumulative total) Second quarter ended September 30, ,159,839,331 shares Second quarter ended September 30, ,169,943,577 shares * Implementation status of auditing procedures This financial results report is not subject to the quarterly auditing procedures stipulated by the Financial Instruments and Exchange Act. The auditing procedures of the consolidated financial statements were not completed at the time of the release of this report. * Disclaimer regarding appropriate use of forecasts and related points of note Earnings forecasts in this document are based on information available at present and logical assessments and do not represent any promise by the Company. Actual results may be materially different from expectations due to a variety of factors. 2

3 Overview of Consolidated Earnings Forecasts for Fiscal Year 2016 ending in March 2017 (Unit: 100 million yen; amounts less than 100 million yen are rounded up to the nearest 100 million yen (partially adjusted for fractions)) Previous fiscal year (From April 1, 2015 to September 30, 2015) First two quarters Current fiscal year (From April 1, 2016 to September 30, 2016) Previous fiscal year (From April 1, 2015 to March 31, 2016) Full fiscal year Current fiscal year (From April 1, 2016 to March 31, 2017) Result Initial Over forecast * Result Result Initial Revised Over Over initial Over initial previous forecast * forecast previous fiscal year forecast fiscal year forecast Amount of orders received 8,512 8,200 8, ,711 16,400 16,000 (711) (400) Civil engineering 2,275 2,030 2,013 (262) (17) 4,445 4,000 3,700 (745) (300) Building construction 5,679 5,600 6, ,019 11,100 11,000 (19) (100) Real estate development (18) 1,122 1,200 1, Other (14) (25) Net sales 7,271 6,900 6,464 (807) (436) 15,459 15,400 14,700 (759) (700) Civil engineering 1,960 1,990 1,811 (149) (179) 4,339 4,200 4,200 (139) Building construction 4,670 4,370 4,116 (554) (254) 9,782 10,000 9,300 (482) (700) Real estate development (90) (5) 1,213 1,100 1,100 (113) Other (14) (25) Gross Profit % ,976 1,840 1,960 (16) 120 Civil engineering % (2.3) (120) 20 Building construction % ,039 1,050 1, Real estate development % (17) Other % (2.1) (3.0) (0) (6) SG&A expenses % (5.1) (5.9) (6.2) (1.1) (0.3) (5.2) (5.4) (5.7) (0.5) (0.3) (371) (410) (397) (26) 13 (801) (840) (840) (39) Operating income % ,175 1,000 1,120 (55) 120 Non-operating income (41) (5) Non-operating expenses (32) (25) (54) (22) (29) (89) (55) (80) 9 (25) (Net financial revenue) (1) 7 (2) 8 Ordinary income % Extraordinary income (8) (3) 10 Extraordinary loss (5) (5) (8) (3) (3) (42) (10) (20) 22 (10) Income before income % taxes and minority ,178 1,020 1,110 (68) 90 interests Income taxes and others (165) (130) (177) (12) (47) (410) (320) (350) 60 (30) Net income Net income (loss) attributable to non-controlling interests Net income attributable to owners of parent % % , , ,090 1 (1) (2) (1) 2 (2) * Initial forecasts refer to the earnings forecasts outlined on May 13, The Company released its revised earnings forecasts for the first half of the fiscal year on October 24, 2016, so please refer to the Company s disclosures for information on its revised forecasts for the first half (0.2) (87) 0.2 (8) 0.2 (10)

4 Overview of Non-consolidated Earnings Forecasts for Fiscal Year 2016 ending in March 2017 (Unit: 100 million yen; amounts less than 100 million yen are rounded up to the nearest 100 million yen (partially adjusted for fractions)) First two quarters Full fiscal year Previous fiscal year (From April 1, 2015 to September 30, 2015) Result Current fiscal year (From April 1, 2016 to September 30, 2016) Initial forecast * Previous fiscal year (From April 1, 2015 to March 31, 2016) Result Over Result Initial previous Over initial forecast * fiscal year forecast Current fiscal year (From April 1, 2016 to March 31, 2017) Revised forecast Over previous fiscal year Over initial forecast Amount of orders received 6,977 6,500 7, ,518 13,200 13,000 (518) (200) Civil engineering 1,660 1,400 1,446 (214) 46 3,239 2,950 2,720 (519) (230) Domestic 1,438 1,200 1, ,854 2,650 2,650 (204) Overseas (293) (515) (493) (315) (230) Building construction 5,238 5,000 5, ,070 10,000 10,000 (70) Domestic 5,234 4,800 5, ,049 9,600 9,600 (449) Overseas (189) Total 6,898 6,400 7, ,309 12,950 12,720 (589) (230) Real estate development (26) Other (14) (40) (10) Net sales 5,873 5,500 5,162 (711) (338) 12,219 12,200 11,600 (619) (600) Civil engineering 1,465 1,510 1,390 (75) (120) 3,133 3,100 3,100 (33) Domestic 1,370 1,430 1,314 (56) (116) 2,931 2,900 2,900 (31) Overseas (19) (4) (2) Building construction 4,249 3,920 3,699 (550) (221) 8,796 8,900 8,300 (496) (600) Domestic 4,179 3,880 3,663 (516) (217) 8,705 8,700 8,100 (605) (600) Overseas (34) (4) Total 5,714 5,430 5,089 (625) (341) 11,929 12,000 11,400 (529) (600) Real estate development (72) (50) 10 Other (14) (40) (10) Gross Profit % ,467 1,380 1, Civil engineering % (2.4) (81) 35 Building construction % , Total % ,431 1,320 1,430 (1) 110 Real estate development % (12) Other % (2) SG&A expenses % (4.1) (5.1) (5.3) (1.2) (0.2) (4.3) (4.6) (4.8) (0.5) (0.2) (241) (280) (270) (29) 10 (522) (560) (560) (38) Operating income % (5) 120 Non-operating income (3) (10) Non-operating expenses (28) (20) (49) (21) (29) (81) (50) (70) 11 (20) (Net financial revenue) (2) Ordinary income % Extraordinary income (12) (11) Extraordinary loss (11) (5) (2) 9 3 (42) (20) (10) Income before income taxes % Income taxes and others (131) (110) (148) (17) (38) (325) (250) (290) 35 (40) Net income % * Initial forecasts refer to the earnings forecasts outlined on May 13, The Company released its revised earnings forecasts for the first half of the fiscal year on October 24, 2016, so please refer to the Company s disclosures for information on its revised forecasts for the first half

5 Quarterly consolidated financial statements (1) Quarterly consolidated balance sheet Previous consolidated fiscal year As of March 31, 2016 Second quarterly consolidated fiscal year As of September 30, 2016 Assets Current assets Cash and deposits 374, ,200 Notes receivable-trade and accounts receivable from completed construction contracts 443, ,586 Costs on uncompleted construction contracts 84,548 98,778 Real estate for sale and development projects in progress 107, ,065 Other inventories 4,008 4,500 Other 98,501 96,291 Allowance for doubtful accounts (353) (209) Total current assets 1,112,304 1,017,213 Noncurrent assets Property, plant and equipment 177, ,600 Intangible assets 4,875 5,023 Investments and other assets Investment securities 321, ,496 Net defined benefit asset 10,944 10,781 Other 37,111 35,656 Allowance for doubtful accounts (3,262) (2,392) Total investments and other assets 366, ,542 Total noncurrent assets 548, ,165 Total assets 1,660,821 1,531,378 5

6 Previous consolidated fiscal year As of March 31, 2016 Second quarterly consolidated fiscal year As of September 30, 2016 Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other 442, ,708 Short-term loans payable 108, ,746 Short-term non-recourse loans Current portion of bonds 10,000 - Advances received on uncompleted construction contracts 160, ,835 Income taxes payable 23,633 18,611 Provision for warranties for completed construction 3,316 2,487 Provision for loss on construction contracts 22,117 7,629 Provision for loss on order received Other 156, ,227 Total current liabilities 927, ,390 Noncurrent liabilities Bonds payable 40,000 40,000 Non-recourse bonds payable Long-term loans payable 90,564 79,216 Long-term non-recourse loans payable 4,550 3,000 Provision for directors' retirement benefits Provision for loss on business of subsidiaries and associates Provision for environmental measures Net defined benefit liability 43,926 45,166 Other 31,655 26,406 Total noncurrent liabilities 211, ,836 Total liabilities 1,139,544 1,025,226 Net assets Shareholders' equity Capital stock 122, ,742 Capital surplus 104,464 85,150 Retained earnings 210, ,088 Treasury stock (394) (1,089) Total shareholders' equity 437, ,890 Accumulated other comprehensive income Valuation difference on available-for-sale securities 85,160 68,982 Deferred gain (loss) on hedges (213) (220) Revaluation reserve for land Foreign currency translation adjustment (2,158) (3,642) Remeasurements of defined benefit plans (2,623) (1,184) Total accumulated other comprehensive income 80,342 64,111 Non-controlling interests 3,402 2,150 Total net assets 521, ,152 Total liabilities and net assets 1,660,821 1,531,378 6

7 (2) Quarterly consolidated statement of income and quarterly consolidated statement of comprehensive income Quarterly consolidated statement of income ( September 2016) September 30, 2015 September 30, 2016 Net sales Net sales of completed construction contracts 656, ,959 Net sales of development business and other 70,786 60,423 Total net sales 727, ,382 Cost of sales Cost of sales of completed construction contracts 589, ,647 Cost of sales on development business and other 56,025 47,551 Total cost of sales 645, ,199 Gross profit Gross profit on completed construction contracts 66,788 79,311 Gross profit on development business and other 14,761 12,871 Total gross profit 81,549 92,182 Selling, general and administrative expenses 37,194 39,667 Operating income 44,355 52,514 Non-operating income Interest income Dividends income 1,615 1,841 Share of profit of entities accounted for using equity method Other Total non-operating income 3,067 3,285 Non-operating expenses Interest expenses 1,482 1,176 Foreign exchange losses 1,043 2,902 Other 646 1,313 Total non-operating expenses 3,172 5,391 Ordinary income 44,250 50,408 Extraordinary income Gain on sales of investment securities 8 2,835 Gain on return of assets from retirement benefit trust 4,021 - Other Total extraordinary income 4,222 3,431 Extraordinary loss Loss on valuation of investment securities Loss on Anti-Monopoly Act Other Total extraordinary loss Income before income taxes and minority interests 47,957 53,032 Income taxes 16,456 17,741 Net income 31,500 35,290 Net income (loss) attributable to non-controlling interests (68) 80 Net income attributable to owners of parent 31,568 35,209 7

8 Quarterly consolidated statement of comprehensive income ( September 30, 2016) September 30, 2015 September 30, 2016 Net income 31,500 35,290 Other comprehensive income Valuation difference on available-for-sale securities (23,046) (16,174) Deferred gain (loss) on hedges (2) 0 Foreign currency translation adjustment (46) (846) Remeasurements of defined benefit plans (3,033) 1,463 Share of other comprehensive income of associates accounted for using equity method (80) (863) Total other comprehensive income (26,209) (16,420) Comprehensive income 5,291 18,869 Comprehensive income attributable to owners of the parent 5,373 18,979 Minority interests (82) (109) 8

9 (3) Quarterly consolidated statement of cash flows From April 1, 2015 to September 30, 2015 Amount From April 1, 2016 to September 30, 2016 Amount Net cash flow from operating activities Income before income taxes 47,957 53,032 Depreciation and amortization 2,821 3,024 Increase (decrease) in allowance for doubtful accounts (675) (1,014) Increase (decrease) in provision for loss on construction contracts (13,488) (14,487) Increase (decrease) in net defined benefit liability (22,446) 1,250 Share of (profit) loss of entities accounted for using equity method (678) (638) Interest and dividends income (1,972) (2,097) Interest expenses 1,482 1,176 Foreign exchange losses (gains) 1,043 2,902 Loss (gain) on sales of short-term and long-term investment securities (7) (2,799) Loss (gain) on valuation of short-term and long-term investment securities Decrease (increase) in notes and accounts receivable-trade 19,079 21,745 Decrease (increase) in costs on uncompleted construction contracts (18,701) (14,298) Decrease (increase) in real estate for sale and development projects in progress (16,263) (1,544) Decrease (increase) in other inventories (851) (492) Increase (decrease) in net defined benefit asset 22, Increase (decrease) in notes and accounts payable-trade (55,009) (61,524) Increase (decrease) in advances received on uncompleted construction contracts (17,882) (5,230) Other (557) 3,880 Subtotal (53,579) (16,873) Interest and dividends income received 2,419 6,215 Interest expenses paid (1,653) (1,208) Income taxes paid (20,314) (23,142) Net cash provided by (used in) operating activities (73,128) (35,009) 9

10 From April 1, 2015 to September 30, 2015 Amount From April 1, 2016 to September 30, 2016 Amount Net cash flow from investing activities Decrease (increase) in time deposits (1,189) 553 Purchase of short-term and long-term investment securities (3,133) (62) Proceeds from sales of short-term and long-term investment securities 2,542 6,057 Purchase of property, plant and equipment and intangible assets (5,794) (3,580) Proceeds from sales of property, plant and equipment and intangible assets 251 4,021 Other 100 (101) Net cash flow from investing activities (7,222) 6,888 Net cash flow from financing activities Increase (decrease) in short-term loans payable (3,710) 3,903 Proceeds from long-term loans payable 16,800 3,300 Repayment of long-term loans payable (35,462) (16,787) Repayment of long-term non-recourse loans payable (50) (1,550) Proceeds from issuance of bonds 9,958 - Redemption of bonds (15,000) (10,000) Purchase of treasury shares (7) (20,009) Cash dividends paid (5,849) (12,868) Other 291 (1,299) Net cash flow from financing activities (33,029) (55,311) Effect of exchange rate change on cash and cash equivalents (1,275) (3,033) Net increase (decrease) in cash and cash equivalents (114,655) (86,464) Cash and cash equivalents at beginning of period 337, ,730 Increase (decrease) in cash and cash equivalents resulting from change of scope of consolidation 1, Cash and cash equivalents at end of period 224, ,311 10

11 (4) Segment Information Reporting segment information (net sales and income (loss)) 2Q of FY 2015 (April 1, 2015 September 30, 2015) Net sales Sales on third party Intersegment sales and transfers Civil engineering Reporting Segment Building construction Real estate development Subtotal Others (Note 1) Total Adjustments (Note 2) Amounts on Quarterly consolidated statement of income (Note 3) 196, ,922 58, ,447 5, , ,063 7,763 17,474 2,501 27,739 1,068 28,808 (28,808) Total 203, ,397 61, ,187 6, ,871 (28,808) 727,063 Segment income 14,808 22,606 6,163 43, , ,355 Note 1: Businesses that cannot be classified into the company s reporting segments are shown as Others. This includes the incidental business of construction business such as cooperative research, technical service, and environmental measurement, and also, leisure-related business and other service business. Note 2: The adjustments of segment income, 207 million yen, include elimination of intra-segment transaction. Note 3: The segment income is adjusted in accordance with operating income on quarterly consolidated statement of income. Reporting segment information (net sales and income (loss)) 2Q of FY 2016 (April 1, 2016 September 30, 2016) Civil engineering Reporting Segment Building construction Real estate development Subtotal Others (Note 1) Total Adjustments (Note 2) Amounts on Quarterly consolidated statement of income (Note 3) Net sales Sales on third party Intersegment sales and transfers 181, ,599 49, ,194 4, , ,382 8,877 16,040 3,044 27,962 1,156 29,119 (29,119) Total 189, ,639 52, ,157 5, ,501 (29,119) 646,382 Segment income 15,322 32,080 5,045 52, ,060 (545) 52,514 Note 1: Businesses that cannot be classified into the company s reporting segments are shown as Others. This includes the incidental business of construction business such as cooperative research, technical service, and environmental measurement, and also, leisure-related business and other service business. Note 2: The adjustments of segment income, (545 million yen), include elimination of intra-segment transaction. Note 3: The segment income is adjusted in accordance with operating income on quarterly consolidated statement of income. 11

12 (Reference) Quarterly non-consolidated financial statements (1) (Summary) Quarterly non-consolidated balance sheets Previous consolidated fiscal year As of March 31, 2016 Second quarterly consolidated fiscal year As of September 30, 2016 Assets Current assets Cash and deposits 322, ,926 Notes receivable-trade, accounts receivable from completed construction contracts and other 374, ,863 Real estate for sale 51,484 50,280 Costs on uncompleted construction contracts and other 79,623 85,797 Development projects in progress 2,267 2,566 Other 93,872 87,921 Allowance for doubtful accounts (164) (132) Total current assets 923, ,224 Noncurrent assets Property, plant and equipment 90,111 90,265 Intangible assets 2,186 2,367 Investments and other assets Investment securities 369, ,485 Other 37,429 35,596 Allowance for doubtful accounts (9,662) (8,897) Total investments and other assets 397, ,184 Total noncurrent assets 490, ,816 Total assets 1,413,943 1,313,040 12

13 Previous consolidated fiscal year As of March 31, 2016 Second quarterly consolidated fiscal year As of September 30, 2016 Liabilities Current liabilities Notes payable, accounts payable for construction contracts and other 381, ,581 Short-term loans payable 64,505 65,745 Current portion of bonds 10,000 - Income taxes payable 21,490 15,638 Advances received on uncompleted construction contracts 149, ,010 Deposits received 155, ,471 Provision for warranties for completed construction 2,384 1,694 Provision for loss on construction contracts 21,347 7,022 Other 23,956 18,693 Total current liabilities 829, ,856 Noncurrent liabilities Bonds payable 40,000 40,000 Long-term loans payable 63,590 57,820 Provision for retirement benefits 14,845 18,327 Provision for loss on business of subsidiaries and associates 1,225 1,176 Provision for environmental measures Other 27,827 21,502 Total noncurrent liabilities 147, ,918 Total liabilities 977, ,774 Net assets Shareholders' equity Capital stock 122, ,742 Capital surplus 104,482 85,167 Legal capital surplus 66,832 30,686 Other capital surplus 37,650 54,481 Retained earnings 127, ,493 Other retained earnings 127, ,493 Reserve for advanced depreciation of noncurrent assets 1,414 1,414 General reserve 62,500 94,500 Retained earnings brought forward 63,193 53,579 Treasury stock (394) (1,089) Total shareholders' equity 353, ,313 Valuation and translation adjustments Valuation difference on available-for-sale securities 82,900 66,954 Deferred gain (loss) on hedges - (2) Total valuation and translation adjustments 82,900 66,952 Total net assets 436, ,266 Total liabilities and net assets 1,413,943 1,313,040 13

14 (2) (Summary) Quarterly non-consolidated statements of income September 30, 2015 September 30, 2016 Net sales Net sales of completed construction contracts 571, ,887 Net sales of development business and other 15,882 7,327 Total net sales 587, ,214 Cost of sales Cost of sales of completed construction contracts 514, ,196 Cost of sales on development business and other 12,827 5,426 Total cost of sales 526, ,622 Gross profit Gross profit on completed construction contracts 57,371 69,691 Gross profit on development business and other 3,054 1,900 Total gross profit 60,426 71,592 Selling, general and administrative expenses 24,080 26,990 Operating income 36,345 44,601 Non-operating income Dividends income 2,917 7,322 Other Total non-operating income 3,446 7,718 Non-operating expenses Interest expenses 1, Foreign exchange losses 1,149 2,799 Other 622 1,290 Total non-operating expenses 2,851 4,894 Ordinary income 36,940 47,424 Extraordinary income 4,080 2,832 Extraordinary loss 1, Income before income taxes 39,865 50,071 Income taxes 13,098 14,817 Net income 26,766 35,254 (Reference) Net income per share September 30, 2016: yen September 30, 2015: yen (Note) 1. The Company s quarterly financial statements are prepared in accordance with the Ordinance on Terminology, Forms and Preparation Methods of Quarterly Financial Statements, etc. and the Construction Industry Law s enforcement regulations. 2. Classifications of categories are noted in summary. 14

15 Supplementary Information (1) (Non-consolidated) Amount of orders received, net sales and balance carried forward (i) Amount of orders received (Millions of yen, rounded down) Civil engineering (1) From April 1, 2015 to From April 1, 2016 to Change over Rate of From April 1, 2015 to September 30, 2015 September 30, 2016 previous year change March 31, 2016 % % % % Domestic public sector 83, , , , Domestic private sector 59, , (7,629) (12.8) 122, Overseas 22, (29,226) (4.0) (51,429) (231.6) 38, Total 166, , (21,326) (12.8) 323, Building construction (2) Domestic public sector 36, , , , Domestic private sector 487, , (126,570) (26.0) 861, Overseas , , Total 523, , , ,006, Total (1) + (2) Domestic public sector 120, , , , Domestic private sector 546, , (134,200) (24.5) 984, Overseas 22, (28,151) (3.9) (50,724) (224.7) 40, Subtotal 689, , , ,330, Real estate development 2, , , , Other 5, , (1,391) (26.5) 12, Total 697, , , ,351, Note: The percentages indicate the proportion. Major new construction orders in the six months under review Hotel Okura Co., Ltd. (Tentative name) Toranomon 2-10 Project Mitsui Fudosan Co., Ltd. (Tentative name) Toyosu 2-chome 2-1 Station District Redevelopment Project (AC Block), Tokyo East Nippon Expressway Company Limited Construction work of the Tokyo Outer Ring Road Oizumi South Central Nippon Expressway Company Limited Japan Tobacco Inc. Construction work of the Shin-Tomei Expressway Kouchigawa bridge (Tentative name) New construction of Yokohama Pharmaceutical Research Institute and other 15

16 (ii) Net sales Civil engineering (1) From April 1, 2015 to September 30, 2015 From April 1, 2016 to September 30, 2016 Change over previous year (Millions of yen, rounded down) Rate of change From April 1, 2015 to March 31, 2016 % % % % Domestic public sector 97, , (9,434) (9.7) 207, Domestic private sector 39, , , , Overseas 9, , (1,990) (20.8) 20, Total 146, , (7,563) (5.2) 313, Building construction (2) Domestic public sector 56, , (6,187) (10.9) 118, Domestic private sector 361, , (45,358) (12.6) 752, Overseas 6, , (3,429) (49.0) 9, Total 424, , (54,975) (12.9) 879, Total (1) + (2) Domestic public sector 153, , (15,621) (10.2) 326, Domestic private sector 401, , (41,497) (10.3) 837, Overseas 16, , (5,419) (32.8) 29, Subtotal 571, , (62,539) (10.9) 1,192, Real estate development 10, , (7,163) (67.4) 16, Other 5, , (1,391) (26.5) 12, Total 587, , (71,094) (12.1) 1,221, Note: The percentages indicate the proportion. Major construction projects completed in the six months under review FANUC CORPORATION Construction work of FANUC CORPORATION Mibu Factory (B section) Japanese Red Cross Society Construction of new hospital of Saitama Red Cross Hospital TSUMURA & CO. Tokyo Gas Engineering Solutions Corporation TSUMURA & CO. Shizuoka Plant Construction plan of Granulation and packaging building Civil engineering work for construction of Hitachi LNG Terminal Ministry of Land, Infrastructure, Transport and Tourism Yagiri Channel, Project 10 16

17 (iii) Balance carried forward (Millions of yen, rounded down) As of September 30, As of September 30, Change over Rate of As of March 31, previous year change % % % % Civil engineering (1) Domestic public sector 339, , , , Domestic private sector 199, , , , Overseas 79, , (31,119) (39.2) 85, Total 618, , (3,205) (0.5) 610, Building construction (2) Domestic public sector 233, , , , Domestic private sector 1,085, ,113, , ,069, Overseas 10, , (2,825) (28.1) 9, Total 1,328, ,558, , ,356, Total (1) + (2) Domestic public sector 572, , , , Domestic private sector 1,284, ,339, , ,286, Overseas 89, , (33,944) (37.9) 94, Subtotal 1,947, ,173, , ,966, Real estate development Other Total 1,947, ,174, , ,967, Note: The percentages indicate the proportion. Major new construction orders carried over into next fiscal period Roppongi 3-chome East District Redevelopment Consortium Roppongi 3-chome East District Redevelopment Project New facility construction and communal facility construction (District A, District B) Nishi-Shinagawa 1-chome Redevelopment Association Nishi-Shinagawa 1-chome Redevelopment Project (District A) MITSUBISHI ESTATE CO., LTD. Tokyo Chamber of Commerce and Industry Tokyo Kaikan Co., Ltd. Central Nippon Expressway Company Limited Marunouchi 3-2 Project (tentative name) Construction work of the Tokyo Outer Ring Road Main Line Tunnel North Route Oizumi South East Nippon Expressway Company Limited Construction work of the Tokyo-Gaikan Expressway Tajiri 17