11-Year Financial and
Non-Financial Summary
Millions of Yen
(except for per share figures)
March 31, 2011 March 31, 2012 March 31, 2013 March 31, 2014 March 31, 2015
Revenue:
Net sales:
Construction contracts ¥ 1,079,139 ¥ 1,171,927 ¥ 1,254,291 ¥ 1,321,289 ¥ 1,404,530
Real estate development (and other) 138,980 151,577 162,205 212,184 168,740
Total 1,218,119 1,323,504 1,416,496 1,533,473 1,573,270
% change from previous year (15.5)% 8.7% 7.0% 8.3% 2.6%
Costs and expenses:
Cost of sales 1,100,022 1,206,014 1,304,677 1,402,446 1,425,295
Selling, general and administrative expenses 81,803 81,004 76,213 77,254 77,558
Total 1,181,825 1,287,018 1,380,890 1,479,700 1,502,853
Operating income 36,294 36,486 35,606 53,773 70,417
Income before income taxes 19,374 16,673 32,828 46,593 66,980
Income taxes 8,514 15,480 12,399 14,120 28,755
Net income attributable to owners of parent ¥ 10,883 ¥ 1,181 ¥ 20,051 ¥ 32,089 ¥ 38,177
Per share data of common stock
(in yen and dollars):
Net assets ¥ 253.94 ¥ 255.60 ¥ 299.84 ¥ 335.42 ¥ 418.61
Net income attributable to owners of parent 9.58 1.04 17.60 28.17 33.52
Cash dividends 5.00 5.00 5.00 6.00 8.00
Financial ratios:
Net income attributable to owners of parent
as a percentage of total revenue 0.9% 0.1% 1.4% 2.1% 2.4%
Total costs and expenses as a percentage of total revenue 97.0% 97.2% 97.5% 96.5% 95.5%
Dividends paid as a percentage of net income 52.2% 482.3% 28.4% 21.3% 23.9%
Financial position data:
Current assets ¥ 847,467 ¥ 982,931 ¥ 1,012,639 ¥ 1,076,213 ¥ 1,136,497
Current liabilities 808,052 921,196 907,281 946,097 984,762
Total tangible fixed assets 232,000 212,639 206,076 181,051 169,973
Long-term liabilities 235,607 219,101 292,514 268,802 258,373
Shareholders’ equity 290,282 284,714 299,336 327,067 370,140
Net assets 290,598 292,602 343,300 384,166 492,114
Other data:
New orders received during the year ¥ 1,254,095 ¥ 1,379,572 ¥ 1,404,407 ¥ 1,645,896 ¥ 1,765,743
Contract backlog at the end of the year 1,607,390 1,663,459 1,651,370 1,763,793 1,956,266
Shares issued (thousands) 1,140,269 1,140,269 1,140,269 1,140,269 1,171,269
*1 U.S. dollar amounts were translated from yen, for convenience only, at the rate of U.S. $ 1 = ¥ 110.71
*2 The net assets per share and the net income per share are calculated assuming that the consolidation of shares took place at the beginning of the year, 2017, because the consolidation
of shares, at the ratio of 1 share for 5 shares, was implemented on October 1, 2017.
TAISEI CORPORATION and Consolidated Subsidiaries
Years ended March 31, 2011 through 2021
Financial Highlights (Consolidated)
Major Non-Financial Data
• Frequency rate: The number of fatalities and injuries at worksites per one million
cumulative working hours
• Severity rate: The severity of illnesses and injuries represented by the number of
workdays lost over one thousand cumulative working hours
(FY)
(Persons)
(%)
0
4,000
8,000
12,000
16,000
20,000
0.0
12.5
25.0
14,032
8,501
1,524
17.9
1.7
14,433
8,490
1,541
18.1
3.2
14,562
8,507
1,570
18.4
3.8
14,620
8,572
1,602
6,977 6,949 6,937 6,970
2017 2018 2019 2020
18.6
4.5
Number of employees
(Consolidated)
Female ratio
(Non-consolidated) Female managers ratio
(Non-consolidated)
Number of employees (Non-consolidated)
Male Female
Number of Employees
(FY)
0.0
0.6
0.4
0.2
2.0
0.44
0.58
0.65
0.41 0.42
0.62
2017 2018 2019 2020
0.22
0.14
0.26
0.36
0.35
0.34
1.65 1.66
1.83 1.80
Accident frequency rate
(Taisei Group companies)
Accident frequency rate
(Construction industry) Accident frequency rate
(Non-consolidated)
Accident severity rate
(Non-consolidated)
Accident Frequency Rate / Accident Severity Rate
(%)
1
Millions of Yen
(except for per share figures)
Thousands of
U.S. Dollars* 1
(except for per
share figures)
March 31, 2016 March 31, 2017 March 31, 2018 March 31, 2019 March 31, 2020 March 31, 2021 March 31, 2021
¥ 1,394,677 ¥ 1,342,455 ¥ 1,445,277 ¥ 1,511,724 ¥ 1,612,498 ¥ 1,326,663 $ 11,983,226
151,212 144,798 140,221 139,154 138,833 153,479 1,386,316
1,545,889 1,487,253 1,585,498 1,650,878 1,751,331 1,480,142 13,369,542
(1.7)% (3.8)% 6.6% 4.1% 6.1% (15.5)%
1,348,302 1,260,968 1,318,880 1,409,418 1,492,654 1,261,344 11,393,225
80,119 85,462 84,758 88,136 90,922 88,282 797,417
1,428,421 1,346,430 1,403,638 1,497,554 1,583,576 1,349,626 12,190,642
117,468 140,823 181,860 153,324 167,755 130,516 1,178,900
117,797 135,190 182,297 160,777 174,785 135,417 1,223,169
40,996 44,793 55,508 48,075 52,601 42,820 386,776
¥ 77,045 ¥ 90,566 ¥ 126,788 ¥ 112,572 ¥ 122,088 ¥ 92,554 $ 836,004
¥ 442.67 ¥ 2,483.01 ¥ 2,975.02* 2 ¥ 3,302.86 ¥ 3,550.03 ¥ 4,084.81 $ 36.90
65.85 392.87 561.36* 2 511.90 573.14 442.66 4.00
16.00 20.00 85.00* 3 130.00 130.00 130.00 1.18
5.0% 6.1% 8.0% 6.8% 7.0% 6.3%
92.4% 90.5% 88.5% 90.7% 90.4% 91.2%
24.3% 25.5% 22.3% 25.4% 22.7% 29.4%
¥ 1,112,305 ¥ 1,223,572 ¥ 1,327,487* 4 ¥ 1,200,437 ¥ 1,299,023 ¥ 1,241,013 $ 11,209,584
927,777 986,994 1,022,626 924,791 957,438 841,147 7,597,751
177,529 175,983 188,397 219,745 204,400 206,199 1,862,515
211,767 202,271 218,952* 4 198,995 178,642 185,055 1,671,529
437,533 485,396 563,913 610,565 673,730 718,593 6,490,769
521,278 570,814 669,020 722,390 753,916 844,420 7,627,315
¥ 1,671,061 ¥ 1,655,036 ¥ 1,743,498 ¥ 1,693,859 ¥ 1,680,052 ¥ 1,650,627 $ 14,909,466
2,081,438 2,249,221 2,407,221 2,450,202 2,378,923 2,549,408 23,027,802
1,171,269 1,146,753 224,541 224,541 224,541 224,541
*3 Total annual dividends per share as of March 31, 2018 is ¥ 85.00 ,which is the sum of the interim dividend per share of ¥ 10.00 and the year-end dividend per share of ¥ 75.00.
Due to the consolidation of shares at the ratio of 1 share for 5 shares implemented on October 1, 2017, the year-end dividend per share of ¥ 75.00 reflects this consolidation,
while the interim dividend per share of ¥ 10.00 does not.
If the interim dividend per share is calculated based on the consolidation of shares, it would be ¥ 50.00, making the total annual dividends per share ¥ 125.00.
*4 Effective from the year ended March 31, 2019, the Group retrospectively applied “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement
No. 28, February 16, 2018). The Group applied this change retrospectively and restarted the 11-Year Summary from the year ended March 31, 2018, accordingly.
(FY)
(Cases)
0
140
70
280
210
350
0
6.0
3.0
12.0
9.0
15.0
11.6 12.4
13.5
235 219 188
2017 2018 2019 2020
191
250
169
14.2
266
202
Number of patent
rights registered
(Non-consolidated)
Number of patent
applications filed
(Non-consolidated)
Research and
development
expenditure
(Consolidation)
Research and Development Expenditure / Number of Patent
Applications filed, Number of Patent Rights Registered
(Billionsof Yen)
(FY)
(10 3 tCO2)
CO2 Emissions
0
100
300
200
400
0
25
75
50
100
340 361
368
318
2017 2018 2019 2020
Total CO2 emissions
(Taisei Group companies)
28.4 28.9 32.0
Total CO2 emissions
(Non-consolidated)
245 261 267
30.3
216
(%) At construction stage: Reduction rate of CO2
emissions per construction cost (intensity)*
(Non-consolidated)
* Compared to FY1990 (a base year for emissions target)
2
CONSOLIDATED BALANCE SHEETS
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
AS OF MARCH 31, 2020 AND 2021
Millions of Yen
Thousands of
U.S. Dollars
(Note 1)
ASSETS 2020 2021 2021
Current assets:
Cash and time deposits (Notes 3 and 4) ..................................... ¥ 482,723 ¥ 494,308 $ 4,464,890
Notes and accounts receivable, trade (Note 4) ............................ 615,037 539,838 4,876,145
Cost on uncompleted contracts .................................................. 54,857 51,250 462,921
Cost on development projects in progress .................................. 105,488 119,828 1,082,360
Other inventories ......................................................................... 3,096 2,888 26,086
Other current assets ................................................................... 37,989 33,029 298,338
Allowance for doubtful accounts ................................................. (167) (128) (1,156)
Total current assets .................................................. 1,299,023 1,241,013 11,209,584
Fixed assets:
Tangible fixed assets:
Buildings and structures (Notes 9,15 and 18) .......................... 146,673 149,827 1,353,329
Machinery, vehicles and equipment (Notes 15 and 18) ............................... 60,617 63,430 572,938
Land (Notes 9,15,16 and 18) ................................................... 120,572 120,411 1,087,625
Construction in progress ......................................................... 685 2,781 25,120
Subtotal ................................................................... 328,547 336,449 3,039,012
Accumulated depreciation ....................................................... (124,147) (130,250) (1,176,497)
Total tangible fixed assets ........................................ 204,400 206,199 1,862,515
Intangible fixed assets (Note 15) .................................................. 14,289 14,807 133,746
Investments and other assets:
Investment securities (Notes 4, 5 and 6) .................................. 317,622 364,029 3,288,131
Net defined benefit asset (Note 10) .......................................... 13,205 11,671 105,420
Deferred income tax assets (Note 8) ........................................ 12,747 3,367 30,413
Other assets (Notes 6 and 13) ................................................. 30,220 31,231 282,096
Allowance for doubtful accounts .............................................. (1,510) (1,695) (15,310)
Total investments and other assets ........................... 372,284 408,603 3,690,750
Total fixed assets ........................................ 590,973 629,609 5,687,011
Total assets ................................................. ¥ 1,889,996 ¥ 1,870,622 $ 16,896,595
The accompanying notes are an integral part of these statements.
3
Millions of Yen
Thousands of
U.S. Dollars
(Note 1)
LIABILITIES AND NET ASSETS 2020 2021 2021
Current liabilities:
Notes and accounts payable, trade (Note 4) ............................... ¥ 491,569 ¥ 376,100 $ 3,397,164
Short-term loans (Notes 4 and 7) ................................................ 58,401 63,821 576,470
Current portion of long-term debt (Notes 4 and 7) ....................... 39,789 25,819 233,213
Income taxes payable ................................................................. 31,956 18,260 164,935
Advances received and progress billings on uncompleted contracts .......... 121,646 173,361 1,565,902
Deposits received (Note 4) .......................................................... 146,540 141,861 1,281,375
Allowance for warranty on completed contracts .......................... 3,605 2,395 21,633
Allowance for losses on construction contracts (Note 15) ............ 2,270 2,105 19,014
Other current liabilities ................................................................. 61,662 37,425 338,045
Total current liabilities ..................................... 957,438 841,147 7,597,751
Long-term liabilities:
Long-term debt (Notes 4 and 7) .................................................. 110,606 130,334 1,177,256
Deferred income tax liabilities (Note 8) ......................................... 241 14,530 131,244
Deferred income tax liabilities for revaluation of land (Notes 8 and 16) ......... 3,280 3,275 29,582
Retirement benefits for directors and audit & supervisory board members ........ 437 496 4,480
Provision for share-based remuneration for directors .......................... — 39 352
Allowance for environmental spending ........................................ 2 2 18
Net defined benefit liability (Note 10) ............................................ 45,045 17,899 161,675
Other long-term liabilities ............................................................. 19,031 18,480 166,922
Total long-term liabilities .............................................................. 178,642 185,055 1,671,529
Total liabilities ................................................. 1,136,080 1,026,202 9,269,280
Net assets (Notes 11 and 19):
Shareholders’ equity:
Common stock
Authorized: 440,000,000 shares
Issued: 224,541,172 shares .................................................... 122,742 122,742 1,108,680
Capital surplus ............................................................................ 60,199 60,199 543,754
Retained earnings ....................................................................... 556,305 621,569 5,614,389
Less: Treasury stock, at cost (Note 21) ........................................ (65,516) (85,917) (776,054)
Total shareholders’ equity .............................. 673,730 718,593 6,490,769
Accumulated other comprehensive income:
Unrealized holding gains on securities, net of taxes ..................... 74,536 103,216 932,310
Deferred losses on hedging derivatives, net of taxes (Note 13) ......... (44) (16) (145)
Revaluation reserve for land (Note 16) ......................................... 1,231 1,224 11,056
Foreign currency translation adjustments .................................... (3,165) (3,848) (34,758)
Remeasurements of defined benefit plans, net of taxes (Note 10) ......... 3,870 21,675 195,782
Total accumulated other comprehensive income ......... 76,428 122,251 1,104,245
Non-controlling interests: ................................................................ 3,758 3,576 32,301
Total net assets .............................................. 753,916 844,420 7,627,315
Total liabilities and net assets ......................... ¥ 1,889,996 ¥ 1,870,622 $ 16,896,595
4
CONSOLIDATED STATEMENTS OF INCOME
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
YEARS ENDED MARCH 31, 2020 AND 2021
Millions of Yen
Thousands of
U.S. Dollars
(Note 1)
2020 2021 2021
Revenue:
Net sales (Note 15):
Construction contracts ............................................................ ¥ 1,612,498 ¥ 1,326,663 $ 11,983,226
Real estate development (and other) (Note 9) .......................... 138,833 153,479 1,386,316
1,751,331 1,480,142 13,369,542
Costs and expenses (Note 15):
Cost of sales (Note 17) ................................................................ 1,492,654 1,261,344 11,393,226
Selling, general and administrative expenses (Note 17) ............... 90,922 88,282 797,416
1,583,576 1,349,626 12,190,642
Operating income (Note 15) ............................................................ 167,755 130,516 1,178,900
Other income (expenses):
Interest and dividend income ...................................................... 5,221 4,947 44,684
Foreign exchange gains .............................................................. 87 839 7,578
Investment gain on equity method .............................................. 1,070 278 2,511
Interest expenses ........................................................................ (1,112) (970) (8,761)
Provision of allowance for doubtful accounts ............................... (79) (215) (1,942)
Taxes and dues ........................................................................... (222) (114) (1,030)
Gains on sales of tangible fixed assets ........................................ 1,185 7 63
Gains on sales of investment securities (Note 5) .......................... 497 1,771 15,997
Reversal of allowance for losses on Anti-Monopoly Act ............... 3,043 — —
Impairment losses on fixed assets (Notes 9,15 and 18) ............... (1,338) (324) (2,926)
Loss on disposal of fixed assets .................................................. (78) (594) (5,365)
Write-down of marketable and investment securities (Note 5) .......... (1,502) (1,159) (10,469)
Other, net (Note 5) ....................................................................... 258 435 3,929
7,030 4,901 44,269
Income before income taxes ........................................................... 174,785 135,417 1,223,169
Income taxes (Note 8):
Current .................................................................................... (51,474) (39,649) (358,135)
Deferred .................................................................................. (1,127) (3,171) (28,642)
(52,601) (42,820) (386,777)
Net income ..................................................................................... 122,184 92,597 836,392
Net income (loss) attributable to non-controlling interests ............... (96) (43) (388)
Net income attributable to owners of parent ................................... ¥ 122,088 ¥ 92,554 $ 836,004
Yen
U.S. Dollars
(Note 1)
Amounts per share of common stock:
Net income (Note 19) .............................................................. ¥ 573.14 ¥ 442.66 $ 4.00
Diluted net income (Note 19) ................................................... — — —
Cash dividends applicable to the year (Note 11) ...................... 130.00 130.00 1.18
The accompanying notes are an integral part of these statements.
5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
YEARS ENDED MARCH 31, 2020 AND 2021
Millions of Yen
Thousands of
U.S. Dollars
(Note 1)
2020 2021 2021
Net income ..................................................................................... ¥ 122,184 ¥ 92,597 $ 836,392
Other comprehensive income (Note 20):
Unrealized holding gains on securities, net of taxes ..................... (34,243) 28,684 259,091
Deferred gains (losses) on hedging derivatives, net of taxes ......... 1 6 54
Foreign currency translation adjustments .................................... 236 (711) (6,422)
Remeasurements of defined benefit plans, net of taxes ............... (1,881) 17,811 160,880
Share of other comprehensive income of associates accounted for by the equity method ............... 46 (83) (750)
Total other comprehensive income .............................................. (35,841) 45,707 412,853
Comprehensive income ................................................................. ¥ 86,343 ¥ 138,304 $ 1,249,245
Comprehensive income attribute to:
Owners of parent ........................................................................ ¥ 86,182 ¥ 138,384 $ 1,249,968
Non-controlling interests ............................................................. 161 (80) (723)
The accompanying notes are an integral part of these statements.
6
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
YEARS ENDED MARCH 31, 2020 AND 2021
Millions of Yen
Common
stock Capital surplus
Retained
earnings Treasury stock
Total
shareholders’
equity
Balance at March 31, 2019 ................................................. ¥ 122,742 ¥ 60,199 ¥ 465,127 ¥ (37,503) ¥ 610,565
Dividends ........................................................................... — — (29,004) — (29,004)
Net income attributable to owners of parent ....................... — — 122,088 — 122,088
Acquisition of treasury stock .............................................. — — — (28,013) (28,013)
Sale of treasury stock ......................................................... — — — — —
Reversal of revaluation reserve for land .............................. — — (2,476) — (2,476)
Changes of scope of consolidation .................................... — — 570 — 570
Changes other than shareholders’ equity, net ..................... — — — — —
Balance at March 31, 2020 ................................................. ¥ 122,742 ¥ 60,199 ¥ 556,305 ¥ (65,516) ¥ 673,730
Dividends ........................................................................... — — (27,297) — (27,297)
Net income attributable to owners of parent ....................... — — 92,554 — 92,554
Acquisition of treasury stock .............................................. — — — (20,401) (20,401)
Sale of treasury stock ......................................................... — (0) — 0 0
Reversal of revaluation reserve for land .............................. — — 7 — 7
Changes of scope of consolidation .................................... — — — — —
Changes other than shareholders’ equity, net ..................... — — — — —
Balance at March 31, 2021 ................................................. ¥ 122,742 ¥ 60,199 ¥ 621,569 ¥ (85,917) ¥ 718,593
Thousands of U.S. Dollars (Note 1)
Common
Stock Capital surplus
Retained
earnings Treasury stock
Total
shareholders’
equity
Balance at March 31, 2020 ................................................. $ 1,108,680 $ 543,754 $ 5,024,885 $ (591,780) $ 6,085,539
Dividends ........................................................................... — — (246,563) — (246,563)
Net income attributable to owners of parent ....................... — — 836,004 — 836,004
Acquisition of treasury stock .............................................. — — — (184,274) (184,274)
Sale of treasury stock ......................................................... — (0) — 0 0
Reversal of revaluation reserve for land .............................. — — 63 — 63
Changes of scope of consolidation .................................... — — — — —
Changes other than shareholders’ equity, net ..................... — — — — —
Balance at March 31, 2021 ................................................. $ 1,108,680 $ 543,754 $ 5,614,389 $ (776,054) $ 6,490,769
The accompanying notes are an integral part of these statements.
7
Millions of Yen
Unrealized
holding gains on
securities, net
of taxes
Deferred losses
on hedging
derivatives, net
of taxes
Revaluation
reserve for land
Foreign currency
translation
adjustments
Remeasure-
ments of defined
benefit plans, net
of taxes
Total
accumulated
other
comprehensive
income
Noncontrolling
interests
Total net
assets
¥ 108,782 ¥ (74) ¥ (1,245) ¥ (3,343) ¥ 5,738 ¥ 109,858 ¥ 1,967 ¥ 722,390
— — — — — — — (29,004)
— — — — — — — 122,088
— — — — — — — (28,013)
— — — — — — — —
— — 2,476 — — 2,476 — —
— — — — — — — 570
(34,246) 30 — 178 (1,868) (35,906) 1,791 (34,115)
¥ 74,536 ¥ (44) ¥ 1,231 ¥ (3,165) ¥ 3,870 ¥ 76,428 ¥ 3,758 ¥ 753,916
— — — — — — — (27,297)
— — — — — — — 92,554
— — — — — — — (20,401)
— — — — — — — 0
— — (7) — — (7) — —
— — — — — — — —
28,680 28 — (683) 17,805 45,830 (182) 45,648
¥ 103,216 ¥ (16) ¥ 1,224 ¥ (3,848) ¥ 21,675 ¥ 122,251 ¥ 3,576 ¥ 844,420
Thousands of U.S. Dollars (Note 1)
Unrealized
holding gains on
securities, net
of taxes
Deferred losses
on hedging
derivatives, net
of taxes
Revaluation
reserve for land
Foreign currency
translation
adjustments
Remeasure-
ments of defined
benefit plans, net
of taxes
Total
accumulated
other
comprehensive
income
Noncontrolling
interests
Total net
assets
$ 673,254 $ (397) $ 11,119 $ (28,588) $ 34,956 $ 690,344 $ 33,945 $ 6,809,828
— — — — — — — (246,563)
— — — — — — — 836,004
— — — — — — — (184,274)
— — — — — — — 0
— — (63) — — (63) — —
— — — — — — — —
259,056 252 — (6,170) 160,826 413,964 (1,644) 412,320
$ 932,310 $ (145) $ 11,056 $ (34,758) $ 195,782 $ 1,104,245 $ 32,301 $ 7,627,315
8
CONSOLIDATED STATEMENTS OF CASH FLOWS
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
YEARS ENDED MARCH 31, 2020 AND 2021
Millions of Yen
Thousands of U.S.
Dollars
(Note 1)
2020 2021 2021
Cash flows from operating activities:
Income before income taxes ....................................................... ¥ 174,785 ¥ 135,417 $ 1,223,169
Depreciation and amortization ..................................................... 9,885 10,459 94,472
Impairment losses on fixed assets ............................................... 1,338 324 2,926
Increase (decrease) in allowance for doubtful accounts ............... (213) 146 1,319
Increase (decrease) in allowance for warranty on completed contracts .... 131 (1,209) (10,920)
Increase (decrease) in allowance for losses on construction contracts ... (492) (165) (1,490)
Increase (decrease) in net defined benefit liability ......................... 3,021 (27,143) (245,172)
Decrease (increase) in net defined benefit asset .......................... (1,818) 1,535 13,865
Increase (decrease) in remeasurements of defined benefit plans, net of taxes ... (1,881) 17,811 160,880
Increase (decrease) in allowance for losses on Anti-Monopoly Act ... (3,043) — —
Interest and dividend income ...................................................... (5,221) (4,947) (44,684)
Interest expenses ........................................................................ 1,112 970 8,761
Foreign exchange losses (gains) .................................................. (87) (839) (7,578)
Write-down of marketable and investment securities ................... 1,502 1,159 10,469
Losses (gains) on sales of marketable and investment securities ...... (452) (1,620) (14,633)
Losses (gains) on sales of tangible fixed assets ........................... (1,185) (7) (63)
Losses on disposal of fixed assets .............................................. 78 594 5,365
Investment losses (gains) on equity method ................................ (1,070) (278) (2,511)
Decrease (increase) in trade receivables ...................................... (72,326) 75,090 678,259
Decrease (increase) in cost on uncompleted contract ................. (12,382) 3,600 32,517
Decrease (increase) in cost on development projects in progress ...... (8,734) (14,780) (133,502)
Decrease (increase) in other inventories ....................................... 1,854 167 1,508
Decrease (increase) in accounts receivables - other .................... 10,955 6,968 62,939
Increase (decrease) in trade payables .......................................... (16,383) (115,304) (1,041,496)
Increase (decrease) in advances received and progress billings on uncompleted contracts .. 21,866 51,811 467,988
Increase (decrease) in deposits received ..................................... (8,607) (4,674) (42,218)
Increase (decrease) in accounts payable - other .......................... 22,866 (18,654) (168,494)
Other, net .................................................................................... 2,241 (1,448) (13,079)
117,740 114,983 1,038,597
Cash received (paid) during the year for:
Interest and dividend received ..................................................... 5,966 6,142 55,478
Interest paid ................................................................................ (1,106) (981) (8,861)
Income taxes paid ....................................................................... (39,039) (52,650) (475,567)
Penalty payments associated with Anti-Monopoly Act ................. (6,086) — —
Net cash provided by (used in) operating activities ............... 77,475 67,494 609,647
Cash flows from investing activities:
Decrease (increase) in time deposits ........................................... 30,166 32 289
Purchase of tangible and intangible assets .................................. (12,991) (12,725) (114,940)
Proceeds from sale of tangible and intangible assets ..................... 23,435 78 705
Purchase of marketable and investment securities ...................... (15,005) (12,075) (109,069)
Proceeds from sale of marketable and investment securities ....... 14,789 5,196 46,933
Acquisition of shares of subsidiaries resulting in changes of scope of consolidation ... (7,114) — —
Other, net .................................................................................... (19) 811 7,326
Net cash provided by (used in) investing activities ................ 33,261 (18,683) (168,756)
Cash flows from financing activities:
Increase (decrease) in short-term loans ....................................... (1,523) 5,420 48,957
Proceeds from long-term loans ................................................... 23,100 25,000 225,815
Repayment of long-term loans .................................................... (31,027) (29,533) (266,760)
Proceeds from long-term non-recourse loans ............................. 181 — —
Repayment of long-term non-recourse loans .............................. (8) (15) (136)
Proceeds from issuance of bonds ............................................... — 19,882 179,586
Redemption of bonds ................................................................. — (10,000) (90,326)
Acquisition of treasury stock ....................................................... (28,013) (20,401) (184,274)
Cash dividends paid, including those to minority interest ............. (29,004) (27,297) (246,563)
Other, net .................................................................................... (353) (399) (3,604)
Net cash provided by (used in) financing activities ................ (66,647) (37,343) (337,305)
Effect of exchange rate changes on cash and cash equivalents ...... 244 151 1,364
Net increase (decrease) in cash and cash equivalents ..................... 44,333 11,619 104,950
Cash and cash equivalents at beginning of year ............................. 437,585 482,655 4,359,633
Increase (decrease) in cash and cash equivalents resulting from changes of scope of consolidation ... 737 — —
Cash and cash equivalents at end of year (Note 3) ......................... ¥ 482,655 ¥ 494,274 $ 4,464,583
The accompanying notes are an integral part of these statements.
9
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of Taisei Corporation (the “Company”) and its consolidated subsidiaries (collectively the
“Group”) have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Law and its
related accounting regulations, and in conformity with accounting principles generally accepted in Japan (“Japanese GAAP”), which are different
in certain respects as to application and disclosure requirements of International Financial Reporting Standards.
The accompanying consolidated financial statements have been reformatted and translated into English (with some expanded descriptions)
from the consolidated financial statements of the Company prepared in accordance with Japanese GAAP and filed with the appropriate Local
Finance Bureau of the Ministry of Finance as required by the Financial Instruments and Exchange Law. Certain supplementary information,
included in the statutory Japanese language consolidated financial statements but not required for fair presentation, is not presented in the
accompanying consolidated financial statements.
The translations of the Japanese yen amounts into U.S. dollars are included solely for the convenience of readers outside Japan, using the
prevailing exchange rate at March 31, 2021, which was ¥ 110.71 to U.S. $ 1. The translations should not be construed as representations of
what the Japanese yen amounts have been, could have been, or could in the future be when converted into U.S. dollars at this or any other rate
of exchange.
2. Summary of Significant Accounting Policies
(a) Consolidation and equity method
The Company prepares the consolidated financial statements including the accounts of the Company and those of its majority-owned
subsidiaries, whether directly or indirectly controlled. The consolidated financial statements include the accounts of 43 subsidiaries for the year
ended March 31, 2021 (42 subsidiaries for the year ended March 31, 2020).
Newly established TAISEI DEVELOPMENT HANOI was included in the scope of consolidation.
Exclusion of certain small-scale subsidiaries from the scope of consolidation does not have material impact on the consolidated financial
statements.
All significant intercompany transactions, account balances and unrealized gains or losses have been eliminated in consolidation.
The financial statements of non-consolidated subsidiaries, and investments in affiliated companies in which the Group does not have control but
has the ability to exercise significant influence, are accounted for by the equity method.
The financial statements in 17 non-consolidated subsidiaries, mainly consist of EHIME HOSPITAL PERTNERS Co., Ltd. and OMIYA CROSS
POINT Co., Ltd. are accounted for by the equity method for the year ended March 31, 2021.
Investments in 37 affiliated companies are also accounted for by the equity method for the year ended March 31, 2021 (41 affiliated
companies for the year ended March 31, 2020).
Newly established 3 companies and other 1 company being increased in importance were included in the scope of equity method.
8 liquidated companies were excluded from the scope of equity method.
Exclusion of certain small-scale non-consolidated subsidiaries and the affiliated company from the scope of equity method does not have
material effect on the consolidated financial statements.
All consolidated subsidiaries other than 20 consolidated subsidiaries have the same balance sheet date, March 31, corresponding with that
of the Company. As for the 20 consolidated subsidiaries whose fiscal year ends at December 31, their financial statements as of December 31
are used in preparation of the consolidated financial statements. Significant transactions, if any, in the period from January 1 to March 31 have
been adjusted in the consolidated financial statements.
(b) Valuation of Assets and Liabilities of Subsidiaries
In the elimination of the investments in subsidiaries, the assets and liabilities of the subsidiaries including the portion allocated to non-controlling
interests are recorded based on their fair value at the time the Company acquired control of the respective subsidiaries.
(c) Goodwill included in Intangible assets
Significant excesses of investment cost over net equity of consolidated subsidiaries and affiliated companies accounted for by the equity method
are recognized as goodwill (negative goodwill, if credit balance), and amortized principally over the estimated useful lives or less than twenty
years on a straight-line basis. However, immaterial goodwill is charged to income in the year of acquisition. Negative goodwill is credited to
income upon occurrence.
(d) Foreign Currency Translation
Receivables and payables denominated in foreign currencies are translated into Japanese yen at year-end exchange rates. The resulting
exchange gains and losses are reflected in the consolidated statements of income. All revenues and expenses associated with foreign currencies
are translated at rates of exchange prevailing when such transactions are made.
The financial statements of consolidated foreign subsidiaries and affiliated companies under the equity method are translated into Japanese
yen at exchange rates prevailing at the respective year-end dates except for shareholders’ equity accounts, which are translated at historical
rates. The resulting foreign currency translation adjustments are presented in accumulated other comprehensive income in the net assets section
of the consolidated balance sheets.
(e) Cash and Cash Equivalents in the Consolidated Statements of Cash Flows
In preparing the consolidated statements of cash flows, cash on hand, readily available deposits and short-term highly liquid investments with
maturities not exceeding three months at the date of purchase and with insignificant risks of change in value are considered to be cash and cash
equivalents.
(f) Securities
Securities held by the Group are classified into (a) debt securities intended to be held to maturity, (b) equity securities issued by subsidiaries and
affiliated companies, and (c) all other securities that are not classified in any of the categories above (hereafter “available-for-sale securities”).
Debt securities intended to be held to maturity are stated at amortized cost. Equity securities issued by subsidiaries and affiliated companies
that are not consolidated or accounted for by the equity method are stated at moving-average cost. Available-for-sale securities with available
fair market value is stated at fair market value. Unrealized holding gains and losses on securities, net of taxes are reported as a separate
component of accumulated other comprehensive income in the net assets section. Realized gains and losses on sales of such securities are
computed using moving-average cost. Other securities with no available fair market value are stated at moving-average cost.
10
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
(g) Revenue Recognition of Construction
Revenue associated with construction contracts of which the outcome can be reliably estimated is accounted for by the percentage-of-
completion method; otherwise contract revenue is accounted for by the completed-contract method. The percentage of completion at the end
of the reporting period is determined by the percentage of the cost incurred to the estimated total costs.
(h) Inventories
The Company and its certain subsidiaries develop real estate projects on their own account. Cost on development projects in progress are
mainly stated at the lower of cost based on the specific-identification cost method or net realizable value. For this purpose, the cost includes the
purchase cost of land, incidental costs, direct development costs and (in relation to certain developments by one of the subsidiaries) interest
expenses.
Cost on uncompleted contracts is mainly stated at cost based on the specific-identification cost method.
(i) Tangible Fixed Assets
Tangible fixed assets except for buildings and structures are recorded at cost and depreciated principally by the declining-balance method over
the standard useful lives prescribed in the Corporation Tax Law. Buildings and structures are principally depreciated by the straight-line method.
(j) Accounting for Lease Transactions
Finance leases, except for certain immaterial or short-term finance leases in which ownership is not transferred to lessee, are capitalized.
Capitalized leased assets whose ownership is transferred to lessee are depreciated by the same method of depreciation applied to property,
plant and equipment. Capitalized leased assets whose ownership is not transferred to lessee are depreciated to a residual value of zero by the
straight-line method over a useful life period corresponding to the lease contract period.
(k) Derivatives and Hedge Accounting
Derivative financial instruments are stated at fair value and changes in fair value are recognized as gains or losses unless derivative financial
instruments are used for hedging purposes.
If derivative financial instruments are used as hedges and meet certain hedging criteria, the Company and its consolidated domestic
subsidiaries defer recognition of gains or losses resulting from changes in fair value of the derivative financial instruments until related losses or
gains on hedged items are recognized.
If interest rate swap contracts are used as hedge and meet certain hedging criteria, net amounts to be paid or received under the interest
rate swap contracts are added to or deducted from the interest on liabilities for which the swap contract were executed.
(l) Income Taxes
The Company and its wholly owned domestic subsidiaries apply the Consolidated Taxation System.
(m) Allowance for Doubtful Accounts
Allowance for doubtful accounts is provided to reserve for probable losses from bad debt. It consists of the estimated uncollectible amount of
certain identified doubtful receivables and the amount estimated on the basis of the past default ratio for normal receivables.
(n) Allowance for Warranty on Completed Contracts
Allowance for warranty on completed contracts is provided as the amount estimated using an actual ratio of related losses during the past
certain periods.
(o) Allowance for Losses on Construction Contracts
Allowance for losses on construction contracts is provided with respect to construction projects for which eventual losses are reasonably
estimated.
(p) Retirement Benefits for Directors and Audit & Supervisory Board Members
Retirement benefits for directors and audit & supervisory board members of certain consolidated subsidiaries have been set up in accordance
with each company’s regulations.
(q) Provision for share-based remuneration for directors
Provision for share-based remuneration for directors is provided based on estimated amount of share-based remuneration obligation at the end
of the fiscal year in accordance with “Officers’ Share Benefit Regulation”.
(r) Allowance for Environmental Spending
Allowance for environmental spending is provided based on estimated costs for disposal of Polychlorinated Biphenyl (“PCB”) waste, which is
obligated to dispose by the Act on Special Measures Concerning Promotion of Proper Treatment of PCB Waste.
(s) Accounting Method for Retirement Benefit
Net defined benefit liability is provided for severance and retirement benefits for employees and executive officers of the Company’s certain
consolidated subsidiaries based on estimated amounts of projected benefit obligations and plan assets at the year-end.
In calculating projected benefit obligations, the method of attributing estimated amounts of retirement benefits to the period until this fiscal
year is based on the benefit formula basis.
Past service costs are amortized using the straight-line method (some consolidated subsidiaries use the declining-balance method) over
1-10 years, which is not longer than an average remaining service period of the employees when the costs are incurred.
Actuarial gains and losses are amortized from the subsequent fiscal year (some consolidated subsidiaries amortize actuarial gains and losses
from the current fiscal year) using the straight line method (some consolidated subsidiaries use the declining balance method) over 1-10 years,
which is not longer than an estimated average remaining service period of the employees when the gains or losses are incurred.
(t) Net Income and Cash Dividends per Share
Net income per share is calculated by dividing net income available to common shares by the weighted average number of common shares
outstanding during the year. Cash dividends per share shown for each year represent dividends declared as applicable to the respective years.
11
(u) Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications have no impact on
previously reported results of operations or retained earnings.
(v) Application of tax effect accounting for the transition from the Consolidated Taxation System to the Group Tax Sharing System
Regarding the transition from the Consolidated Taxation System to the Group Tax Sharing System, established by “Act on Partial Amendment of
the Income Tax Act and Others” (Act No.8 of 2020), and regarding items of the Non-Consolidated Taxation System that were revised in
accordance with the transition to the Group Tax Sharing System, the Company and part of its domestic subsidiaries, in accordance with the
treatment in paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation
System to the Group Tax Sharing System” (PITF No.39, March 31, 2020) , did not apply the provisions in paragraph 44 of “Guidance on
Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No.28, issued on February 16, 2018)
and calculated the amount of deferred income tax assets and liabilities based on the provisions of tax laws before the amendment.
(w) Accounting policies and procedures adopted in the absence of requirements in relevant accounting standards, etc. that specifically apply
The Company and certain consolidated subsidiaries do not recognize the Construction Joint Venture ( the “JV”) as an independent accounting
unit, but incorporate it into their accounting in the way of recording the amount of revenue and cost of sales associated with construction
contracts according to the interests held in the JV.
(x) Significant Accounting Estimates
- Revenue recognition to construction contracts (the “Revenue”) in applying the percentage-of-completion method
(1) Carrying amounts in the current year’s consolidated financial statements
The amount of the Revenue in applying the percentage-of-completion method in the consolidated financial statements was ¥ 1,334,601 million
and ¥ 1,083,388 million ($ 9,785,819 thousand), for the fiscal year ended March 31, 2020 and 2021, respectively.
(2) Information on the nature of significant accounting estimates for identified items
The amount of the Revenue in applying the percentage-of-completion method is based on the reasonably estimated amount of total revenue,
the reasonably estimated amount of total construction costs and the reasonably estimated percentage of completion at the end of the current
fiscal year. Since the estimates involve a high degree of uncertainty, in the case that estimates need to be revised, the Revenue may change and
affect the results of following accounting periods.
(y) Accounting standard issued but not yet effective
The following standard and guidance were issued but are not yet effective
- “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29 (revised March 31, 2020), March 30, 2018)
- “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No.30 (revised March 26, 2021), March 30,
2018)
(1) Overview
The IASB and the FASB jointly developed and issued a converged Standard on the recognition of ‘Revenue from Contracts with Customers’
(IFRS 15 for IASB and Topic 606 for FASB.) in May, 2014. IFRS 15 will be applied from the fiscal year beginning on or after January 1, 2018 and
Topic 606 will be applied from the fiscal year beginning after December 15, 2017. Under these circumstances, the ASBJ developed the
converged standard for revenue recognition and issued the “Accounting Standard for Revenue Recognition” along with “Implementation
Guidance on Accounting Standard for Revenue Recognition”.
In developing the ‘Accounting Standard for Revenue Recognition,’ the principal policy of the ASBJ is to incorporate the basic concept of
IFRS 15 from the perspective of comparability between financial statements, as one way to establish consistency with IFRS 15. The ASBJ will
add alternative treatments in the case that there are different accounting treatments prevalent in accounting practices in Japan that require
consideration, to the extent that they do not impair comparability.
(2) Effective date
Effective from the beginning of the fiscal year ending March 31, 2022.
(3) Effects of the application of the standards
The Company and its consolidated subsidiaries are currently in the process of determining the effects of these new standards on the
consolidated financial statements.
- “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30, July 4, 2019)
- “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31, July 4, 2019)
- “Accounting Standard for Measurement of Inventories” (ASBJ Statement No. 9, July 4, 2019)
- “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019)
- “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No. 19, March 31, 2020)
(1) Overview
In order to enhance comparability with internationally recognized accounting standards, “Accounting Standard for Fair Value Measurement” and
“Implementation Guidance on Accounting Standard for Fair Value Measurement” (together, hereinafter referred to as “Fair Value Accounting
Standards”) were developed and guidance on methods measuring fair value was issued. Fair Value Accounting Standards are applicable to the
fair value measurement of the following items:
Financial instruments in “Accounting Standard for Financial Instruments”; and
Inventories held for trading purposes in “Accounting Standard for Measurement of Inventories.”
“Implementation Guidance on Disclosures about Fair Value Measurement” has been revised
requiring disclosure of financial instruments classified by level in the fair value hierarchy.
(2) Effective date
Fair Value Accounting Standards and guidance will be effective from the beginning of the consolidated fiscal year ending March 31, 2022.
(3) Effects of the application of the standards
The Company and its consolidated subsidiaries are currently in the process of determining the effects of these new standards on the
consolidated financial statements.
12
(z) Changes in presentation method
- Adoption of “Accounting Standard for Disclosure of Accounting Estimates”
The Company and its subsidiaries adopted ASBJ Statement No. 31 “Accounting Standard for Disclosure of Accounting Estimates” (March 31,
2020) to the consolidated financial statements for the current consolidated fiscal year, and therefore significant accounting estimates are
disclosed in the note to the consolidated financial statements.
The note does not include information for the prior consolidated fiscal year in accordance with the transitional provision set out in paragraph 11
of the Accounting Standard.
(aa) Additional information
- Performance-based share remuneration plan for directors
(1) Overview
The Company introduced the performance-based share remuneration plan “Board Benefit Trust (the “BBT”)” for directors.
The Company’s common stock are acquired through the BBT with money contributed by the Company (the “Stock”). The directors will have the
Stock and the amounts converted at market value of the Stock which are provided through the BBT when directors retire in accordance with
“Officers’ Share Benefit Regulation”.
(2) Shares held by the BBT
The shares held by the BBT are reported by the book value of the BBT (excluding the incidental expenses) as part of the treasury stock in the net
assets. At the end of the fiscal year, the book value of treasury stock held by the BBT was ¥ 391 million and the number of the shares was 106
thousand shares.
- Accounting policies and procedures adopted in the absence of requirements in relevant accounting standards, etc. that specifically apply
The Company and its subsidiaries adopted “Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections”
(ASBJ Statement No.24, March 31, 2020) to the consolidated financial statements for the current consolidated fiscal year, and therefore
“accounting policies and procedures adopted in the absence of requirements in relevant accounting standards, etc. that specifically apply to
events or transactions that are accounted for” are disclosed.
3. Cash and Cash Equivalents
Cash and cash equivalents as of March 31, 2020 and 2021 consisted of the following:
Millions of Yen
Thousands of
U.S. Dollars
2020 2021 2021
Cash and time deposits .......................................................................... ¥ 482,723 ¥ 494,308 $ 4,464,890
Less: Time deposits with maturities exceeding three months .................. (68) (34) (307)
Cash and cash equivalents ..................................................................... ¥ 482,655 ¥ 494,274 $ 4,464,583
4. Financial Instruments
(1) Policies for using financial instruments
The Group restricts investments to the low risk assets such as deposits, and raise funds by the indirect finance such as loans from bank as well
as by the direct finance such as issuing corporate bonds or commercial papers.
Derivative financial instruments are employed mainly for hedging fluctuation in interest rate and foreign currency exchange, not for
speculation.
Receivables: trade notes and trade accounts are exposed to the credit risks of customers. In order to reduce such risks, the Group conducts
strict credit examinations when orders are received, and afterward manage the receivables individually and make effort to detect reduction of
credit risks early.
For investment securities which are mainly debt securities intended to be held to maturity and shares held to keep the relationship with
business partners, the Group regularly monitors the fair value or financial positions of the invested companies, and revises the portfolio timely
(except for debt securities intended to be held to maturity) considering the relationship with them.
Debts, trade payables: trade notes and trade accounts are debts mostly due within one year. Loans, commercial papers and bonds are
primarily for working capital, and have maturity dates of five years or less. Although the loans or bonds issued at variable rates are exposed to
interest rate fluctuation risk, the risk is hedged by derivative transactions (interest rate swap contracts).
The Group primarily utilizes derivative transactions related to interest rates in order to mitigate the fluctuation risk in interest rates or to reduce
financing costs, and derivative transactions related to currency in order to mitigate the foreign exchange risk. These transactions are exposed to
the fluctuation risk in interest rates and the foreign exchange risk. However, the Group is exposed to limited risk, because most of them are
hedged by the corresponding transactions. They consider the credit risk to be low, because they conduct derivative transactions solely with
reliable international financial institutions.
The Group executes and manages derivative transactions in accordance with internal rules. Their Finance Departments are responsible for
conducting, evaluating transactions and managing related risks.
(2) Fair Value of Financial Instruments
Book value of the financial instruments was included in the consolidated balance sheet, the fair value of said items as of March 31, 2020 and
2021, was as follows. Items for which it is extremely difficult to calculate the fair value were not included in the following table (see “Note 2”
below).
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
13
Millions of Yen
2020
Book Value Fair Value Difference
ASSETS
Cash and time deposits ................................................................................. ¥ 482,723 ¥ 482,723 ¥ —
Notes and accounts receivable, trade ............................................................ 615,037 615,046 9
Investment securities
Debt securities intended to be held to maturity .......................................... 281 288 7
Available-for-sale securities ........................................................................ 253,004 253,004 —
LIABILITIES
Notes and accounts payable, trade ............................................................... 491,569 491,569 —
Short-term loans and long term loans due within one year ............................. 87,934 88,033 (99)
Long-term non-recourse loans due within one year ....................................... 15 15 (0)
Straight bonds due within one year ................................................................ 10,000 10,040 (40)
Deposits received .......................................................................................... 146,540 146,540 —
Straight bonds ............................................................................................... 30,000 30,166 (166)
Long-term loans ............................................................................................ 80,038 80,572 (534)
Long-term non-recourse loans ...................................................................... 158 174 (16)
[Derivative financial instruments (*)] ................................................................ 12 12 —
Millions of Yen
2021
Book Value Fair Value Difference
ASSETS
Cash and time deposits ................................................................................. ¥ 494,308 ¥ 494,308 ¥ —
Notes and accounts receivable, trade ............................................................ 539,838 539,849 11
Investment securities
Debt securities intended to be held to maturity .......................................... 269 274 5
Available-for-sale securities ........................................................................ 299,288 299,288 —
LIABILITIES
Notes and accounts payable, trade ............................................................... 376,100 376,100 —
Short-term loans and long term loans due within one year ............................. 89,239 89,309 (70)
Long-term non-recourse loans due within one year ....................................... 15 15 (0)
Straight bonds due within one year ................................................................ — — —
Deposits received .......................................................................................... 141,861 141,861 —
Straight bonds ............................................................................................... 50,000 50,159 (159)
Long-term loans ............................................................................................ 79,621 80,219 (598)
Long-term non-recourse loans ...................................................................... 143 157 (14)
[Derivative financial instruments (*)] ................................................................ 66 66 —
Thousands of U.S. dollars
2021
Book Value Fair Value Difference
ASSETS
Cash and time deposits ................................................................................. $ 4,464,890 $ 4,464,890 $ —
Notes and accounts receivable, trade ............................................................ 4,876,145 4,876,244 99
Investment securities
Debt securities intended to be held to maturity .......................................... 2,430 2,475 45
Available-for-sale securities ........................................................................ 2,703,351 2,703,351 —
LIABILITIES
Notes and accounts payable, trade ............................................................... 3,397,164 3,397,164 —
Short-term loans and long term loans due within one year ............................. 806,061 806,693 (632)
Long-term non-recourse loans due within one year ....................................... 135 135 (0)
Straight bonds due within one year ................................................................ — — —
Deposits received .......................................................................................... 1,281,375 1,281,375 —
Straight bonds ............................................................................................... 451,630 453,067 (1,437)
Long-term loans ............................................................................................ 719,185 724,587 (5,402)
Long-term non-recourse loans ...................................................................... 1,292 1,418 (126)
[Derivative financial instruments (*)] ................................................................ 596 596 —
(*) Note: The assets and liabilities are reported as net amounts.
14
Note 1: The calculation method of the fair value of financial instrument and securities, derivative transactions
ASSETS
∙ Cash and time deposits and Notes and accounts receivable, trade
The fair value of these financial instruments is almost equivalent to the book value, due to the short term settlements; although, the fair value of
receivables due after one year is based on the present value of discounted cash flows using the interest rate determined by the factors of the
estimated collection terms and credit risks with respect to each receivables categorized by collection terms.
∙ Investment securities
The fair value of marketable securities is based on the quoted market value, and bonds are based on the market value, the price indicated by a
third party such as broker or the present value of discounted cash flows.
See the notes on “5. Securities” for notes pertaining to securities categorized by the purposes for which they are held.
LIABILITIES
∙ Notes and accounts payable, trade, Short-term loans and Long term loans due within one year and Deposits received
The fair value of these financial instruments are almost equivalent to the book value, due to the short term settlements; although, the fair value of
long-term loans due within one year is based on the same method as that for long-term loans.
∙ Long-term non-recourse loans due within one year, Long-term loans and Long-term non-recourse loans
The fair value of these financial instruments is based on the present value of discounted cash flows by the interest rate which may be applicable
when the same kind of loans is conducted.
∙ Bonds
The fair value of marketable bonds is based on the quoted market value, otherwise the fair value of nonmarketable bonds is based on the
present value of discounted cash flows using the interest rate determined by the factors of the estimated redemption terms and issuer’s credit
risk.
[Derivative financial instruments]
See the notes on “13. Derivative Transactions”.
Note 2: Financial instruments which are extremely difficult to calculate the fair value
Nonmarketable securities (book value amount to ¥ 64,337 million and ¥ 64,472 million ($ 582,350 thousand) as of March 31, 2020 and 2021,
respectively) are not included in the ASSETS Investment securities–Available-for-sale securities above, as it is extremely difficult to calculate the
fair value because they have no quoted market prices and the future cash flows cannot be estimated.
Note 3: Scheduled redemption amounts after the consolidated balance sheet date for monetary claims and securities with period of maturities
as of March 31, 2020 and 2021 were as follows:
Millions of Yen
2020
Due within one year
Due after one year but
within five years
Due after five years but
within ten years
Time deposits ................................................................................................ ¥ 482,344 ¥ — ¥ —
Notes and accounts receivable, trade ............................................................ 606,082 8,955 —
Investment securities
Debt securities intended to be held to maturity
Government bonds ................................................................................ 12 260 9
Available-for-sale securities
Government bonds ................................................................................ 0 — —
Total .......................................................................................... ¥ 1,088,438 ¥ 9,215 ¥ 9
Millions of Yen
2021
Due within one year
Due after one year but
within five years
Due after five years but
within ten years
Time deposits ................................................................................................ ¥ 493,903 ¥ — ¥ —
Notes and accounts receivable, trade ............................................................ 531,393 8,445 —
Investment securities
Debt securities intended to be held to maturity
Government bonds ................................................................................ 26 243 —
Available-for-sale securities
Government bonds ................................................................................ 21 — —
Total .......................................................................................... ¥ 1,025,343 ¥ 8,688 ¥ —
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
15
Thousands of U.S. Dollars
2021
Due within one year
Due after one year but
within five years
Due after five years but
within ten years
Time deposits ................................................................................................ $ 4,461,232 $ — $ —
Notes and accounts receivable, trade ............................................................ 4,799,865 76,280 —
Investment securities
Debt securities intended to be held to maturity
Government bonds ................................................................................ 235 2,195 —
Available-for-sale securities
Government bonds ................................................................................ 190 — —
Total .......................................................................................... $ 9,261,522 $ 78,475 $ —
Note 4: See the notes on “7. Short-term Loans and Long-term Debt” for notes pertaining to the aggregate annual maturities of long term debt
after the consolidated balance sheet date.
5. Securities
(1) Following tables summarized acquisition costs, book value and fair value of securities with fair value available as of March 31, 2020 and 2021:
(a) Debt securities intended to be held to maturity:
∙ Securities with fair value exceeding book value
Millions of Yen
2020
Type Book value Fair value Difference
Government bonds .................................... ¥ 281 ¥ 288 ¥ 7
Millions of Yen Thousands of U.S. Dollars
2021 2021
Type Book value Fair value Difference Book value Fair value Difference
Government bonds .................................... ¥ 269 ¥ 274 ¥ 5 $ 2,430 $ 2,475 $ 45
Securities with fair value not exceeding book value were not applicable as of March 31, 2020 and 2021.
(b) Available-for-sale securities:
∙ Securities with book value exceeding acquisition costs
Millions of Yen
2020
Type Book value Acquisition cost Difference
Equity securities ......................................... ¥ 210,090 ¥ 94,597 ¥ 115,493
Government bonds .................................... — — —
Others ....................................................... 595 346 249
Total ................................ ¥ 210,685 ¥ 94,943 ¥ 115,742
Millions of Yen Thousands of U.S. Dollars
2021 2021
Type Book value Acquisition cost Difference Book value Acquisition cost Difference
Equity securities ......................................... ¥ 280,696 ¥ 127,834 ¥ 152,862 $ 2,535,417 $ 1,154,674 $ 1,380,743
Government bonds .................................... 21 20 1 190 181 9
Others ....................................................... 935 595 340 8,445 5,374 3,071
Total ................................ ¥ 281,652 ¥ 128,449 ¥ 153,203 $ 2,544,052 $ 1,160,229 $ 1,383,823
16
∙ Securities with book value not exceeding acquisition costs
Millions of Yen
2020
Type Book value Acquisition cost Difference
Equity securities ......................................... ¥ 41,919 ¥ 50,231 ¥ (8,312)
Government bonds .................................... 0 0 (0)
Others ....................................................... 400 410 (10)
Total ................................ ¥ 42,319 ¥ 50,641 ¥ (8,322)
Millions of Yen Thousands of U.S. Dollars
2021 2021
Type Book value Acquisition cost Difference Book value Acquisition cost Difference
Equity securities ......................................... ¥ 17,636 ¥ 22,103 ¥ (4,467) $ 159,299 $ 199,648 $ (40,349)
Government bonds .................................... — — — — — —
Others ....................................................... — — — — — —
Total ................................ ¥ 17,636 ¥ 22,103 ¥ (4,467) $ 159,299 $ 199,648 $ (40,349)
(2) Total sales of available-for-sale securities and the related gains and losses for the years ended March 31, 2020 and 2021 were as follows:
Millions of Yen
2020
Type Equity securities Others Total
Total amount of available-for-sale securities
sold ......................................................... ¥ 801 ¥ — ¥ 801
Gains on sales of available-for-sale
securities ................................................. 497 — 497
Losses on sales of available-for-sale
securities ................................................. 45 — 45
Millions of Yen
2021
Type Equity securities Others Total
Total amount of available-for-sale securities
sold ......................................................... ¥ 3,149 ¥ 160 ¥ 3,309
Gains on sales of available-for-sale
securities ................................................. 1,714 57 1,771
Losses on sales of available-for-sale
securities ................................................. 151 — 151
Thousands of U.S. Dollars
2021
Type Equity securities Others Total
Total amount of available-for-sale securities
sold ......................................................... $ 28,444 $ 1,445 $ 29,889
Gains on sales of available-for-sale
securities ................................................. 15,482 515 15,997
Losses on sales of available-for-sale
securities ................................................. 1,364 — 1,364
(3) Impairment losses on securities
The Group recognized impairment losses on the following securities for the years ended March 31, 2020 and 2021 were as follows:
Millions of Yen
Thousands of
U.S. Dollars
Type 2020 2021 2021
Write-down of investment securities ........... ¥ 1,502 ¥ 1,159 $ 10,469
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
17
6. Pledged Assets
The following assets were pledged principally as collateral for loans of companies which were subsidiaries and affiliates as of March 31, 2020
and 2021:
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Investment securities ..................................................................................... ¥ 2,490 ¥ 2,190 $ 19,782
Other assets .................................................................................................. 1,869 1,077 9,728
Total .......................................................................................... ¥ 4,359 ¥ 3,267 $ 29,510
7. Short-term Loans and Long-term Debt
Short-term loans as of March 31, 2020 and 2021 mainly consisted of short-term notes and overdrafts from banks. The weighted average
interest rates of short-term loans as of March 31, 2020 and 2021 were 0.4% and 0.4%, respectively.
The Group has had no difficulty in renewing such notes and overdraft facility agreements, when they considered such renewal advisable.
Long-term debt as of March 31, 2020 and 2021 consisted of the following:
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Bonds and notes:
Issued by the Company:
0.67% yen bonds due in 2020 ............................................................... ¥ 10,000 ¥ — $ —
0.14% yen bonds due in 2022 ............................................................... 10,000 10,000 90,326
0.527% yen bonds due in 2022 ............................................................. 10,000 10,000 90,326
0.18% yen bonds due in 2025 ............................................................... — 10,000 90,326
0.38% yen bonds due in 2027 ............................................................... 10,000 10,000 90,326
0.37% yen bonds due in 2030 ............................................................... — 10,000 90,326
Loans, principally from banks and insurance companies:
Secured loans (*1) ...................................................................................... 173 158 1,427
Unsecured loans ........................................................................................ 109,571 105,038 948,767
Capital lease .................................................................................................. 651 957 8,645
150,395 156,153 1,410,469
Amount due within one year .......................................................................... (39,789) (25,819) (233,213)
Total long-term debt (due after one year) ........................................................ ¥ 110,606 ¥ 130,334 $ 1,177,256
(*) Note 1: These are non-recourse liabilities for the Group.
The annual interest rates applicable to long-term loans due within one year averaged 0.6% and 0.4% as of March 31, 2020 and 2021,
respectively, and the annual interest rates applicable to long-term loans due after one year averaged 0.5% and 0.5% as of March 31, 2020 and
2021, respectively.
The aggregate annual maturities of long-term debt (including current portion) as of March 31, 2021 were summarized as follows:
Year ending March 31, Millions of Yen Thousands of U.S. Dollars
2022 ........................................................................................................ ¥ 25,819 $ 233,213
2023 ........................................................................................................ 54,348 490,904
2024 ........................................................................................................ 15,982 144,359
2025 ........................................................................................................ 17,598 158,956
2026 ........................................................................................................ 22,317 201,581
2027 and thereafter ................................................................................. 20,089 181,456
Total .......................................................................................... ¥ 156,153 $ 1,410,469
18
8. Income Taxes
Taxes on income consist of corporation, enterprise and inhabitants taxes.
The reconciliations for the year ended March 31, 2020 and 2021 are not presented because the difference between the statutory tax rate
and the effective tax rate were less than or equal to 5% of the statutory tax rate.
Significant components of deferred income taxes at March 31, 2020 and 2021 were as follows:
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Deferred income tax assets:
Disallowed portion of expenses and losses:
Net defined benefit liability ...................................................................... ¥ 37,436 ¥ 27,802 $ 251,125
Inventories .............................................................................................. 9,399 7,860 70,996
Accrued bonuses ................................................................................... 7,357 5,901 53,301
Fixed assets ........................................................................................... 2,469 3,335 30,124
Advances received ................................................................................. 983 796 7,190
Others .................................................................................................... 6,440 6,655 60,112
Tax loss carryforward ................................................................................. 521 531 4,796
Unrealized profits ....................................................................................... 7,429 7,483 67,591
Sub-total ................................................................................... 72,034 60,363 545,235
Valuation allowance .................................................................................... (3,921) (4,996) (45,127)
Total .......................................................................................... 68,113 55,367 500,108
Deferred income tax liabilities:
Unrealized holding gains on securities ........................................................ (32,861) (45,496) (410,947)
Gains on securities contribution to employee retirement benefit trust .......... (17,711) (16,464) (148,713)
Net defined benefit asset ........................................................................... (3,599) (2,320) (20,956)
Others ........................................................................................................ (1,436) (2,250) (20,323)
Total .......................................................................................... (55,607) (66,530) (600,939)
Net total .................................................................................... ¥ 12,506 ¥ (11,163) $ (100,831)
In addition to the deferred income taxes shown above, deferred tax liabilities concerning revaluation of land amounting to ¥ 3,280 million and
¥ 3,275 million ($ 29,582 thousand) as of March 31, 2020 and 2021 were presented separately in the consolidated balance sheets.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
19
9. Investment and Rental Property
(1) The Company and certain consolidated subsidiaries hold some office buildings for rent in Tokyo and other areas. The rental income on office
buildings for rent was ¥ 3,728 million and ¥ 3,949 million ($ 35,670 thousand) at the year ended March 31, 2020 and 2021, respectively.
Rental income is mainly booked in Real estate development and other of Net sales, and rental cost is mainly booked in Cost of sales.
(2) The amounts of investment and rental property which booked in consolidated balance sheets, the amounts of increase or decrease, and fair
value as of March 31, 2020 and 2021 were as follows:
Millions of Yen
2020
Book value Fair value
April 1, 2019 Increase (decrease) March 31, 2020 March 31, 2020
¥ 109,718 ¥ (15,712) ¥ 94,006 ¥ 126,507
Millions of Yen
2021
Book value Fair value
April 1, 2020 Increase (decrease) March 31, 2021 March 31, 2021
¥ 94,006 ¥ (1,440) ¥ 92,566 ¥ 123,185
Thousands of U.S. Dollars
2021
Book value Fair value
April 1, 2020 Increase (decrease) March 31, 2021 March 31, 2021
$ 849,119 $ (13,007) $ 836,112 $ 1,112,682
Note 1: The carrying amount is stated at cost of acquisition less accumulated depreciation and impairment losses.
Note 2: The main reasons of increase for the year ended March 31, 2020 was acquisition of fixed assets ¥ 9,123 million.
The main reasons of decrease for the year ended March 31, 2020 were sales of fixed assets ¥ 21,516 million and impairment losses on
fixed assets ¥ 1,110 million. There is no significant increase or decrease for the year ended March 31, 2021.
Note 3: The book value as of March 31, 2020 and 2021 included asset retirement obligations of ¥ 192 million and ¥ 185 million ($ 1,671
thousand), respectively.
Note 4: The fair value of investment and rental property as of March 31, 2020 and 2021 were mainly calculated by the Company according to
the Japanese Real Estate Appraisal Standards (it may include adjustments using official indices).
10. Employees’ Severance and Retirement Benefits
1. The Company and its main consolidated subsidiaries have adopted the defined-benefit pension plans and defined-contribution pension plans.
The defined-benefit pension plans adopted consist of defined-benefit corporate pension plans and lump-sum payment plans.
Liabilities and expenses for severance and retirement benefits of the Company and its consolidated domestic subsidiaries are
determined based on amounts obtained by actuarial calculations. The Company may also pay additional retirement benefits which are not
subject to actuarial calculation.
The Company has established a retirement benefit trust.
2. Defined-benefit pension plans
(1) Movement in retirement benefit obligations
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Balance at beginning of the year .................................................................... ¥ 139,848 ¥ 134,293 $ 1,213,016
Current service cost ................................................................................... 6,398 6,523 58,920
Interest cost ............................................................................................... 767 741 6,693
Actuarial loss (gain) .................................................................................... (2,983) 2,605 23,530
Benefits paid .............................................................................................. (9,751) (9,134) (82,504)
Past service costs ...................................................................................... (183) 0 0
Other ......................................................................................................... 197 198 1,788
Balance at end of the year ............................................................................. ¥ 134,293 ¥ 135,226 $ 1,221,443
Some of the consolidated subsidiaries use simplified method for the calculation of retirement benefit obligations.
Retirement benefit expenses in the consolidated subsidiaries applying simplified method are recorded in current service cost.
20
(2) Movements in plan assets
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Balance at beginning of the year .................................................................... ¥ 109,213 ¥ 102,453 $ 925,427
Expected return on plan assets .................................................................. 2,034 1,963 17,731
Actuarial loss (gain) .................................................................................... (3,500) 29,725 268,494
Contributions paid by the employer ............................................................ 1,107 1,134 10,243
Benefits paid .............................................................................................. (5,400) (4,919) (44,441)
Other ......................................................................................................... (1,001) (1,358) (12,266)
Balance at end of the year ............................................................................. ¥ 102,453 ¥ 128,998 $ 1,165,188
(3) Reconciliation from retirement benefit obligations and plan assets to net defined benefit liability (asset)
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Funded retirement benefit obligations ............................................................ ¥ 130,762 ¥ 131,212 $ 1,185,186
Plan assets .................................................................................................... (102,453) (128,998) (1,165,188)
28,309 2,214 19,998
Unfunded retirement benefit obligations ......................................................... 3,531 4,014 36,257
Net total at year-end ...................................................................................... 31,840 6,228 56,255
Net defined benefit liability ............................................................................. 45,045 17,899 161,675
Net defined benefit asset ............................................................................... (13,205) (11,671) (105,420)
Net total at year-end ...................................................................................... ¥ 31,840 ¥ 6,228 $ 56,255
(4) Retirement benefit expenses
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Current service cost ....................................................................................... ¥ 6,398 ¥ 6,523 $ 58,920
Interest cost .................................................................................................. 767 741 6,693
Expected return on plan assets ..................................................................... (2,034) (1,963) (17,731)
Net actuarial loss amortization ....................................................................... (993) (65) (587)
Past service costs amortization ...................................................................... (1,388) (1,389) (12,546)
Other ............................................................................................................. 13 13 117
Total retirement benefit expenses for the year ................................................ ¥ 2,763 ¥ 3,860 $ 34,866
(5) Remeasurements of defined benefit plans
Items recorded in remeasurements of defined benefit plans (before considering tax effect) were as follows:
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Past service costs ......................................................................................... ¥ (1,205) ¥ (1,389) $ (12,546)
Actuarial loss (gain) ........................................................................................ (1,510) 27,055 244,377
Total balance as of March 31, 2020 and 2021 ............................................... ¥ (2,715) ¥ 25,666 $ 231,831
(6) Accumulated remeasurements of defined benefit plans
Items recorded in accumulated remeasurements of defined benefit plans (before considering tax effect) were as follows:
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Unrecognized past service costs ................................................................... ¥ (4,637) ¥ (3,248) $ (29,338)
Unrecognized actuarial loss (gain) .................................................................. (941) (27,996) (252,877)
Total balance as of March 31, 2020 and 2021 ............................................... ¥ (5,578) ¥ (31,244) $ (282,215)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
21
(7) Plan assets
2020 2021
① Plan assets comprise:
Equity securities ........................................................................................ 42% 57%
Bonds ....................................................................................................... 24 16
General accounts ...................................................................................... 19 15
Special accounts ...................................................................................... 3 2
Short-term assets ..................................................................................... 1 1
Other ........................................................................................................ 11 9
Total ........................................................................................... 100% 100%
The retirement benefit trust established for corporate pension plans accounted for 40% and 40% of total plan assets, for the fiscal year ended
March 31, 2020 and 2021, respectively.
② Long-term expected rate of return
Current and target asset allocations, historical and expected returns on various categories of plan assets have been considered in determining
the long-term expected rate of return.
(8) Actuarial assumptions
The principal actuarial assumptions as of March 31, 2020 and 2021 were as follows:
2020 2021
Discount rate
The Company and its consolidated domestic subsidiaries 0.4 ∼ 1.5 0.4 ∼ 1.5
Consolidated overseas subsidiaries 7.5 ∼ 8.0 4.8 ∼ 8.0
Long-term expected rate of return 1.0 ∼ 3.0 1.0 ∼ 3.0
3. Defined-contribution pension plans
Amount payable for defined-contribution pension plans of the Company and its consolidated subsidiaries were ¥ 2,591 million and ¥ 2,617
million ($ 23,638 thousand), for the fiscal year ended March 31, 2020 and 2021, respectively.
11. Net assets
Net assets comprise three subsections; which are shareholders’ equity, accumulated other comprehensive income and non-controlling interests.
Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock. However, a
company may, by a resolution of the Board of Directors, designate an amount not exceeding one-half of the price of the new shares as additional
paid-in capital, which is included in capital surplus.
Under the Japanese Corporate Law (“the Law”), when a dividend distribution of surplus is made, the smaller of an amount equal to 10% of
the dividend or the excess, if any, of 25% of common stock over the total of additional paid-in capital and legal earnings reserve must be set
aside as additional paid-in capital or legal earnings reserve. Legal earnings reserve is included in retained earnings in the accompanying
consolidated balance sheets.
Under the Law, appropriations of legal earnings reserve and additional paid-in capital generally require a resolution of the shareholders’
meeting.
Additional paid-in capital and legal earnings reserve may not be distributed as dividends. Under the Law, however, all additional paid-in
capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings, respectively, which are potentially
available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial statements of the
Company in accordance with the Law.
The number of treasury stock owned by the Company, consolidated subsidiaries and affiliated companies adopting the equity method as of
March 31, 2020 and 2021 were 13,231 thousand shares and 18,694 thousand shares, respectively.
The number of treasury shares of common stock at the end of the fiscal year includes 106 thousand shares held by the BBT. Total annual
dividends per share as of March 31, 2021 is ¥ 130.00 (U.S. $ 1.18), which is the sum of the interim dividend per share of ¥ 65.00 (U.S. $ 0.59)
and the year-end dividend per share of ¥ 65.00 (U.S. $ 0.59).
12. Lease Transactions
Operating leases
(a) Lessee
Future minimum lease payments as of March 31, 2020 and 2021 were as follows:
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Due within one year ....................................................................................... ¥ 4,707 ¥ 3,842 $ 34,703
Due after one year ......................................................................................... 15,916 12,311 111,201
Total .......................................................................................... ¥ 20,623 ¥ 16,153 $ 145,904
22
(b) Lesser
Future minimum lease receipts as of March 31, 2020 and 2021 were as follows:
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Due within one year ....................................................................................... ¥ 3,336 ¥ 2,304 $ 20,811
Due after one year ......................................................................................... 13,665 16,395 148,090
Total .......................................................................................... ¥ 17,001 ¥ 18,699 $ 168,901
13. Derivative Transactions
(1) Derivative transactions of the Company and its consolidated subsidiaries as of March 31, 2020 and 2021 were as follows:
① Derivative transactions which were not accounted for by the hedge accounting
∙ Currency-related transactions
Over-the counter transactions
Millions of Yen
2020
Contract amount
Forward foreign exchange contract (short commitment) Total Due after one year Fair value Unrealized gain (loss)
to sell U.S. dollars .......................................................................................... ¥ 1,776 ¥ — ¥ 9 ¥ 9
Millions of Yen
2021
Contract amount
Forward foreign exchange contract (short commitment) Total Due after one year Fair value Unrealized gain (loss)
to sell U.S. dollars .......................................................................................... ¥ 1,427 ¥ — ¥ 56 ¥ 56
Thousands of U.S. Dollars
2021
Contract amount
Forward foreign exchange contract (short commitment) Total Due after one year Fair value Unrealized gain (loss)
to sell U.S. dollars .......................................................................................... $ 12,890 $ — $ 506 $ 506
Note: Fair value was determined at the quoted price obtained from the counterparty financial institutions.
② Derivative transactions which were accounted for by the hedge accounting as of March 31, 2020 and 2021 were as follows:
∙ Currency related transactions
Main items hedged by forward foreign exchange contracts are accounts payable for construction contracts.
Millions of Yen
2020
Contract amount
Forward foreign exchange contract (short commitment) Total Due after one year Fair value
to sell U.S. dollars .......................................................................................... ¥ 706 ¥ 233 ¥ 2
Millions of Yen
2021
Contract amount
Forward foreign exchange contract (short commitment) Total Due after one year Fair value
to sell U.S. dollars .......................................................................................... ¥ 233 ¥ — ¥ 10
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
23
Thousands of U.S. Dollars
2021
Contract amount
Forward foreign exchange contract (short commitment) Total Due after one year Fair value
to sell U.S. dollars .......................................................................................... $ 2,105 $ — $ 90
Note: Fair value was determined at the quoted price obtained from the counterparty financial institutions.
∙ Interest Rate-Related Derivatives:
Main items hedged by interest rate swap contracts are long-term loans.
The following interest rate swaps are used as hedges. The net amounts to be paid or received are added to or deducted from interests.
Special treatment of swap
Millions of Yen
2020
Contract amount
Total Due after one year Fair value
Interest rate swaps receive floating rate, pay fixed rate .................................. ¥ 39,030 ¥ 28,700 ¥ —
Millions of Yen
2021
Contract amount
Total Due after one year Fair value
Interest rate swaps receive floating rate, pay fixed rate .................................. ¥ 28,200 ¥ 28,200 ¥ —
Thousands of U.S. Dollars
2021
Contract amount
Total Due after one year Fair value
Interest rate swaps receive floating rate, pay fixed rate .................................. $ 254,720 $ 254,720 $ —
Note: Fair value of interest rate swaps was included in the corresponding hedged long-term loans (long-term loans due within one year was
considered as short-term loans) as those interest rate swaps were recorded as an adjustment to the corresponding hedged long-term
loans under the special treatment.
14. Related Party Transactions
The Company had no transaction with related individuals, including shareholders and directors, for the year ended March 31, 2020 and 2021.
The Company’s consolidated subsidiaries had the following transaction with related individuals, including shareholders and directors, for the
years ended March 31, 2020, but no transaction was made for the year ended March 31, 2021.
Millions of yen
(a) Name
(b) Attribution
(c) Capital (Million yen)
(d) Equity ownership percentage of the Company
2020
Transactions during the year ended March 31, 2020 Balance at the end of the year
Description of
transaction Amount Account Amount
(a) Eri Teramoto
(b) Close relative of the executive officer of the Corporation
(c) —
(d) —
Housing construction
by Taisei Housing
Co., Ltd.
¥ 44 Advances received
and progress billings
on uncompleted
contracts
¥ 11
Note 1: Consumption taxes were not included in the transaction amounts and the balance at the end of the year.
Note 2: Transaction conditions and policies to decide transaction conditions
The transaction price of housing construction was determined properly on an arm’s length basis as in the case of other general
transactions. The amount of transaction above represents the contract price on the construction contract.
24
15. Segment Information
(1) Segment Information
(a) General information on reportable segments
Each reportable segment of the Group is a business unit in the Group, whose discrete financial information is available. Reportable segments are
reviewed periodically at the Board of Directors Meeting in order to determine distribution of management resources and evaluate business result
of each reportable segment.
The headquarters in the head office are established by the products of construction and the services. Each headquarter proposes
comprehensive domestic and oversea strategies with respect to products and services, and operates its business activities.
The Group consists of segments identified by products and services based on the headquarters, and identifies the three segments, “Civil
engineering,” “Construction contracts,” and “Real estate development” as reportable segments: “Civil engineering” delivering construction of civil
engineering, etc.; “Construction contracts” delivering construction of building and housing, etc.; “Real estate development” delivering purchase,
sale and rental of land and buildings, etc.
(b) Basis of measurement of net sales, profit or loss and other material items on reportable segment
The accounting methods for each reportable segment are the same as that set forth in the “Summary of Significant Accounting Policies”. The
profit (loss) of a reportable segment is based on the operating income (loss) before amortization of goodwill in Consolidated Statements of
Income. In addition, conditions of intersegment transactions and transfers are determined by considering market prices as in the case of other
general transactions.
Assets of the Group are not allocated to the segments. However, the corresponding depreciation expenses are allocated to the segments
according to the rational bases such as the usage of assets.
(c) Information of net sales, profit or loss and other material items on reportable segment
Segment information as for the years ended March 31, 2020 and 2021 was as follows:
Millions of Yen
2020
Reportable segments
Civil
engineering
Construction
contracts
Real estate
development Others Total Adjustments Consolidated
Net sales:
Customers ................................... ¥ 459,110 ¥ 1,168,446 ¥ 112,423 ¥ 11,352 ¥ 1,751,331 ¥ — ¥ 1,751,331
Intersegment ................................ 31,995 56,389 5,909 3,081 97,374 (97,374) —
Total ....................... 491,105 1,224,835 118,332 14,433 1,848,705 (97,374) 1,751,331
Operating income ............................ ¥ 71,380 ¥ 82,685 ¥ 12,560 ¥ 1,203 ¥ 167,828 ¥ (73) ¥ 167,755
Depreciation and amortization ......... ¥ 3,854 ¥ 3,342 ¥ 2,607 ¥ 135 ¥ 9,938 ¥ (53) ¥ 9,885
Increase (decrease) in allowance for
losses on construction contracts ... ¥ (496) ¥ 4 ¥ — ¥ — ¥ (492) ¥ — ¥ (492)
Note 1: “Others” presented businesses such as incidental business to the construction business, leisure business, and other service businesses,
which are not included in reportable segments.
Note 2: Adjustments of operating income of ¥ 73 million included intersegment elimination amounting to ¥ 30 million and amortization of goodwill
amounting to ¥ 43 million.
Note 3: Segment operating income was adjusted against operating income of Consolidated Statement of Income.
Millions of Yen
2021
Reportable segments
Civil
engineering
Construction
contracts
Real estate
development Others Total Adjustments Consolidated
Net sales:
Customers ................................... ¥ 420,549 ¥ 922,255 ¥ 126,758 ¥ 10,580 ¥ 1,480,142 ¥ — ¥ 1,480,142
Intersegment ................................ 30,243 38,412 6,129 3,269 78,053 (78,053) —
Total ....................... 450,792 960,667 132,887 13,849 1,558,195 (78,053) 1,480,142
Operating income ............................ ¥ 56,074 ¥ 63,858 ¥ 9,669 ¥ 1,147 ¥ 130,748 ¥ (232) ¥ 130,516
Depreciation and amortization ......... ¥ 3,739 ¥ 4,071 ¥ 2,550 ¥ 195 ¥ 10,555 ¥ (96) ¥ 10,459
Increase (decrease) in allowance for
losses on construction contracts ... ¥ (147) ¥ (18) ¥ — ¥ — ¥ (165) ¥ — ¥ (165)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
25
Thousands of U.S. Dollars
2021
Reportable segments
Civil
engineering
Construction
contracts
Real estate
development Others Total Adjustments Consolidated
Net sales:
Customers .......................................... $ 3,798,654 $ 8,330,368 $ 1,144,955 $ 95,565 $ 13,369,542 $ — $ 13,369,542
Intersegment ....................................... 273,173 346,960 55,361 29,528 705,022 (705,022) —
Total .............................. 4,071,827 8,677,328 1,200,316 125,093 14,074,564 (705,022) 13,369,542
Operating income ................................... $ 506,495 $ 576,804 $ 87,336 $ 10,360 $ 1,180,995 $ (2,095) $ 1,178,900
Depreciation and amortization ................ $ 33,773 $ 36,772 $ 23,033 $ 1,761 $ 95,339 $ (867) $ 94,472
Increase (decrease) in allowance for
losses on construction contracts .......... $ (1,328) $ (162) $ — $ — $ (1,490) $ — $ (1,490)
Note 1: “Others” presented businesses such as incidental business to the construction business, leisure business, and other service businesses,
which are not included in reportable segments.
Note 2: Adjustments of operating income of ¥ 232 million ($ 2,095 thousand) included intersegment elimination amounting to ¥ 189 million
($ 1,707 thousand) and amortization of goodwill amounting to ¥ 43 million ($ 388 thousand).
Note 3: Segment operating income was adjusted against operating income of Consolidated Statement of Income.
(2) Related Information
(a) Information about products and services
The information about products and services is included in “(c) Information of net sales, profit or loss and other material items on reportable
segment” of “(1) Segment Information” for the years ended March 31, 2020 and 2021.
(b) Information about geographic areas
∙ Net sales
The information about net sales was not presented for the years ended March 31, 2020 and 2021 since sales to unaffiliated customers in Japan
accounted for more than 90% of sales of Consolidated Statement of Income.
∙ Tangible fixed assets
The information about tangible fixed assets was not presented for the years ended March 31, 2020 and 2021 since the amounts of tangible fixed
assets that located in Japan accounted for more than 90% of the amounts of tangible fixed assets of Consolidated Balance Sheet.
(c) Information about major customers
The information about major customers was not presented for the years ended March 31, 2020 and 2021 since net sales to any customer were
less than 10% of the amounts of sales of Consolidated Statement of Income.
(d) Information about impairment losses on fixed assets of reportable segment for the years ended March 31, 2020 and 2021 was as follows:
Millions of Yen
2020
Reportable segments
Civil engineering
Construction
contracts
Real estate
development Others
Elimination
and/or
corporate Total
Impairment losses on fixed assets ............. ¥ 218 ¥ — ¥ 1,120 ¥ — ¥ — ¥ 1,338
Millions of Yen
2021
Reportable segments
Civil engineering
Construction
contracts
Real estate
development Others
Elimination
and/or
corporate Total
Impairment losses on fixed assets ............. ¥ 25 ¥ 0 ¥ 309 ¥ — ¥ (10) ¥ 324
Thousands of U.S. Dollars
2021
Reportable segments
Civil engineering
Construction
contracts
Real estate
development Others
Elimination
and/or
corporate Total
Impairment losses on fixed assets ............. $ 226 $ 0 $ 2,791 $ — $ (91) $ 2,926
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(e) Information about amortization and unamortized balance of goodwill of reportable segment for the years ended March 31, 2020 and 2021
was as follows:
Millions of Yen
2020
Reportable segments
Civil engineering
Construction
contracts
Real estate
development Others
Elimination
and/or
corporate Total
Amortization of goodwill ............................. ¥ — ¥ 43 ¥ — ¥ — ¥ — ¥ 43
Unamortized balance of goodwill ............... ¥ — ¥ 129 ¥ — ¥ — ¥ — ¥ 129
Millions of Yen
2021
Reportable segments
Civil engineering
Construction
contracts
Real estate
development Others
Elimination
and/or
corporate Total
Amortization of goodwill ............................. ¥ — ¥ 43 ¥ — ¥ — ¥ — ¥ 43
Unamortized balance of goodwill ............... ¥ — ¥ 86 ¥ — ¥ — ¥ — ¥ 86
Thousands of U.S. Dollars
2021
Reportable segments
Civil engineering
Construction
contracts
Real estate
development Others
Elimination
and/or
corporate Total
Amortization of goodwill ............................. $ — $ 388 $ — $ — $ — $ 388
Unamortized balance of goodwill ............... $ — $ 777 $ — $ — $ — $ 777
(f) Information about gains on negative goodwill of reportable segment
Information about gains on negative goodwill for the year ended March 31, 2020, a description is omitted because the amount is immaterial, and
for the year ended March 31, 2021 was not applicable.
16. Revaluation Reserve for Land
In the year ended March 31, 2002, certain consolidated domestic subsidiaries executed revaluation of their land for business in accordance with
the Law Concerning Revaluation of Land (the “Law”).
As a result of this revaluation, deferred income taxes concerning the differences between the amounts after revaluation and the book value
before revaluation was stated in the assets and liabilities in the consolidated balance sheets. The differences between these amounts, net of
taxes, were stated as “Revaluation reserve for land” in “Accumulated other comprehensive income”.
The revaluation was executed in accordance with the method prescribed in the Article 2, Items 3, 4 and 5 of the Law on November 30, 2001
and March 31, 2002.
One of the consolidated subsidiaries, which was merged with another consolidated subsidiary on December 1, 2001, executed the
revaluation on November 30, 2001.
Excess amount of the book value of the revaluated land over the fair value as of March 31, 2020 and 2021 were ¥ 3,609 million and ¥ 3,185
million ($ 28,769 thousand), respectively (including the excess amount of ¥ △ 40 million and ¥ 2 million ($ 18 thousand) related to investment
and rental property as of March 31, 2020 and 2021, respectively).
17. Research and Development Expenses
Research and development expenses, which were included in selling, general and administrative expenses and cost of sales, amounted to
¥ 13,564 million and ¥ 14,205 million ($ 128,308 thousand) for the years ended March 31, 2020 and 2021, respectively.
18. Impairment Losses on Fixed Assets
Impairment losses on fixed assets for the years ended March 31, 2020 and 2021 consisted of the following:
2020
Use Type of assets Location
Rental property Building and Land Chiba (1 lot)
Assets for business use Land and others Osaka and the other (2 lots)
Idle assets Building and Land Kanagawa (2 lots)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
27
2021
Use Type of assets Location
Assets for business use Building and others Osaka and the other (4 lots)
Idle assets Land and Building Osaka (1 lot)
The Company and its consolidated subsidiaries grouped their fixed assets based on units, for which decisions for investments were made. Book
value of the fixed assets listed above was reduced to recoverable amounts and impairment losses were recognized as follows:
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Assets for business use
Buildings and structures ............................................................................. ¥ — ¥ 308 $ 2,782
Land .......................................................................................................... 177 — —
Machinery and equipment .......................................................................... — 1 9
Others ........................................................................................................ 7 — —
Subtotal ................................................................................................. 184 309 2,791
Rental property
Buildings and structures ............................................................................. 649 — —
Land .......................................................................................................... 471 — —
Subtotal ................................................................................................. 1,120 — —
Idle assets
Buildings and structures ............................................................................. 4 3 27
Land .......................................................................................................... 30 12 108
Subtotal ................................................................................................. 34 15 135
Total .......................................................................................... ¥ 1,338 ¥ 324 $ 2,926
The recoverable amount of the fixed assets for the years ended March 31, 2020 was mainly their net realizable value based on amount
determined by the sales contract price. And the recoverable amount of the fixed assets for the years ended March 31, 2021 was mainly their
value in use for which the valuation amount was zero.
19. Per Share Data
Net assets per share and net income per share as of and for the years ended March 31, 2020 and 2021 were as follows:
Yen U.S. Dollars
2020 2021 2021
Net assets per share ...................................................................................... ¥ 3,550.03 ¥ 4,084.81 $ 36.90
Net income per share .................................................................................... 573.14 442.66 4.00
Diluted net income per share ......................................................................... — — —
Note 1: Diluted net income per share for the years ended March 31, 2020 and 2021 were not presented because the Company had no shares
with dilutive effects.
Note 2: The treasury shares held by the BBT in the net assets are included in the number of treasury stock, which is excluded from the number
of outstanding shares at the end of the fiscal year and the average number of shares during the period for calculating the net assets per
share and the net income per share.
The number of treasury stock held by the BBT at the end of the fiscal year excluded for calculation of net assets per shares was 106
thousand shares, and the number of treasury stock held by the BBT during the period excluded for the calculation of net income per
shares was 53 thousand shares.
Calculation bases for basic net income per share for the years ended March 31, 2020 and 2021 were as follows:
Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Basic net income per share
Net income attributable to owners of parent ............................................... ¥ 122,088 ¥ 92,554 $ 836,004
Net income not available to common stock holders ................................... — — —
Net income attributable to owners of parent available to common stock .......... 122,088 92,554 836,004
Average common stock outstanding (in thousands share) .......................... 213,017 209,089
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20. Comprehensive Income
Recycling adjustments and tax effects for each component of other comprehensive income were as follows:
Millions of Yen Millions of Yen Thousands of U.S. Dollars
2020 2021 2021
Unrealized holding gains on securities
Amount incurred ........................................................................................ ¥ (50,739) ¥ 42,055 $ 379,866
Recycling ................................................................................................... 1,408 (736) (6,648)
Before Tax .............................................................................................. (49,331) 41,319 373,218
Tax effect ................................................................................................ 15,088 (12,635) (114,127)
Unrealized holding gains on securities, net of taxes ................................ (34,243) 28,684 259,091
Deferred gains or losses on hedging derivatives
Amount incurred ........................................................................................ 3 25 226
Recycling ................................................................................................... (2) (17) (154)
Before Tax .............................................................................................. 1 8 72
Tax effect ................................................................................................ (0) (2) (18)
Unrealized gains or losses on hedging derivatives, net of taxes .............. 1 6 54
Foreign currency translation adjustments
Amount incurred ........................................................................................ 175 (711) (6,422)
Recycling ................................................................................................... 61 — —
Foreign currency translation adjustments ................................................ 236 (711) (6,422)
Remeasurements of defined benefit plans
Amount incurred ........................................................................................ (334) 27,120 244,964
Recycling ................................................................................................... (2,381) (1,454) (13,133)
Before Tax .............................................................................................. (2,715) 25,666 231,831
Tax effect ................................................................................................ 834 (7,855) (70,951)
Remeasurements of defined benefit plans, net of taxes .......................... (1,881) 17,811 160,880
Share of other comprehensive income of associates accounted for by the equity method
Amount incurred ........................................................................................ 46 (83) (750)
Total other comprehensive income ....................................... ¥ (35,841) ¥ 45,707 $ 412,853
21. Subsequent Event
(1) Acquisition of treasury stock
The Company resolved the item related to the acquisition of treasury stock at the board of directors held on May 14, 2021, in accordance with
the article 156 of the Japanese Corporate Law (the “Law”), which is applicable as replacement of the article 165, paragraph 3 of the law, as
detailed below.
① Reason of acquisition of treasury stock
The Company decided to acquire its treasury stock in order to enhance the shareholders’ value per share and to improve the capital efficiency.
② Details
(a) Type of stock to be acquired: Common stock of the Company
(b) Number of stocks to be acquired: Up to 3,600,000 stocks (2.37% of the total outstanding stocks excluding treasury stock)
(c) Total cost of acquisition: Up to ¥ 10,000 million ($ 90,326 thousand)
(d) Period of acquisition: From May 17, 2021 to September 30, 2021
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (cont.)
TAISEI CORPORATION AND CONSOLIDATED SUBSIDIARIES
MARCH 31, 2020 AND 2021
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