Annual Report
2023
P r o f i l e
Since Okumura was established in 1907, our mission has been to contribute to society through our business under our corporate mottos, "steadfast management" and "sincere operation."
We will continue to accumulate a wealth of technical expertise and, as a general contractor company with a harmonious mix of civil engineering and architectural construction, make steady strides forward in our aim to realize comfortable, safe and secure lives for people, and a sustainable society as well.
C o n t e n t s
1 Financial Highlights
2 To Our Shareholders
4 Review of Operations
6 Topics
10 Consolidated Balance Sheet
12 Consolidated Statement of Income
13 Consolidated Statement of Comprehensive Income
14 Consolidated Statement of Changes in Equity
15 Consolidated Statement of Cash Flows
16 Notes to Consolidated Financial Statements
40 Independent Auditor's Report
43 Breakdown of Orders (Nonconsolidated)
44 Network
45 Board of Directors / Investor Information
Financial Highlights
Okumura Corporation Annual Report 2023 | ||||||||
For the years ended March 31 | 2021 | 2022 | 2023 | 2023 | ||||
Consolidated: | Millions of Yen | Thousands of | ||||||
U.S. Dollars | ||||||||
Net sales | ¥220,712 | ¥242,459 | ¥249,443 | $1,867,927 | ||||
Operating income | 12,880 | 12,647 | 11,847 | 88,719 | ||||
Net income attributable to owners of the parent | 10,285 | 12,542 | 11,262 | 84,332 | ||||
Total assets | 329,005 | 332,349 | 343,728 | 2,573,969 | 1 | |||
Total equity | 167,964 | 167,425 | 173,216 | 1,297,109 | ||||
Per Share: | Yen | U.S. Dollars | ||||||
Basic net income | ¥271.90 | ¥334.11 | ¥306.08 | $2.29 | ||||
Cash dividends applicable to the year | 140.00 | 172.00 | 223.00 | 1.67 |
*"Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the fiscal period of March 2022. Accordingly, the summaries of business results for the fiscal period of March 2022 and thereafter represent performance results after applying the said accounting standards, etc.
Note: The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been translated from yen at the approximate exchange rate in Tokyo on March 31, 2023, of ¥133.54=$1.
Net Sales
(Millions of Yen)
300,000 | ||
240,000 | ||
180,000 | ||
120,000 | ||
60,000 | ||
0 | ||
2021 | 2022 | 2023 |
Net income attributable to owners of the parent
(Millions of Yen)
15,000 | ||
12,000 | ||
9,000 | ||
6,000 | ||
3,000 | ||
0 | ||
2021 | 2022 | 2023 |
TotalEquity
(Millions of Yen)
200,000 | ||
160,000 | ||
120,000 | ||
80,000 | ||
40,000 | ||
0 | ||
2021 | 2022 | 2023 |
Disclaimer Regarding Forecasts and Projections
This Annual Report includes forecasts, projections and other predictive statements that represent Okumura's assumptions and expectations in light of currently available information. These forecasts, etc., are based on industry trends, circumstances involving clients and other factors, and involve risks, variables and uncertainties. The Okumura Group's actual performance results may differ from those projected in this Annual Report. Consequently, no guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained herein.
To Our Shareholders
We would like to thank our shareholders for their continuing support and encouragement and wish each one of them the greatest success in their endeavors.
A general overview of our business performance for the fiscal period of March 2023 (April 1,
2 2022 to March 31, 2023) is provided below.
Results for the Year Ended March 31, 2023
During the period under review, socioeconomic activity progressively returned to normal, due mainly to the relaxation of movement restrictions implemented in response to the novel coronavirus (COVID-19), but the pace of recovery in the Japanese economy remained sluggish due to factors such as the soaring price of goods resulting from the deteriorating global situation. In this climate, construction investment was robust against the backdrop of elevated demand for capital investment in the private sector.
However, the construction industry continued to face an unpredictable business environment with the impact of soaring materials prices, etc.
In these circumstances, the Company's consolidated net sales increased 2.9% year on year to ¥249,443 million, which led to an increase of 0.5% year on year in consolidated gross profit to ¥32,001 million. Consolidated operating income decreased 6.3% year on year to ¥11,847 million, primarily due to increases in selling, general and administrative expenses, and net income attributable to owners of the parent decreased 10.2% year on year to ¥11,262 million.
Dividend for the Year Ended March 31, 2023
The Company decided to pay a dividend of ¥223.00 per share (interim dividend of ¥66.00, year-end dividend of ¥157.00) for the period ended March 31, 2023 based on its policy regarding profit sharing.
Under the Medium Term Business Plan (FY2022-FY2024), we have revised its shareholder return policy as follows, to achieve the further enhancement of profit sharing.
Shareholder Return Policy
Basic policy
To distribute profits in line with business performance and flexibly implement the purchase of treasury stock, premised on the continuation of stable dividends.
Policy from FY2022 to FY2024
Consolidated payout ratio of 70% or more
( | Dividend on equity ratio (DOE) of 2.0% or more, regardless of business performance. | ) |
Note: Dividend on equity ratio (DOE) = Total annual dividends (interim + year-end) ÷ equity |
Okumura Corporation Annual Report 2023
3
Medium Term Business Plan
Despite fears of the impact of a further rise in the price of goods and a downturn in economy overseas, the outlook for the Japanese economy is expected to follow a recovery trajectory underpinned mainly by domestic demand due to progressively more vigorous socioeconomic activity. In the construction industry, although construction investment is forecast to remain strong, still the business environment does not warrant excessive optimism due to factors such as the uncertainty surrounding movements in materials prices, which remain at an elevated level.
Under these circumstances, the Okumura Group will aim to continue to grow into the future by responding to the trust placed in us by society through reliable technologies and honest business operations. This includes developing businesses and services that anticipate changing social needs and undertaking initiatives for ESG/SDGs in an integrated manner. We will push ahead with initiatives founded on the basic policies for business strategies upheld in our Medium Term Business Plan (FY2022- FY2024), the second step toward the realization of our "Vision toward 2030."
Specifically, we will pursue the "enhancement of corporate value" by improving our productivity and technological advantage through companywide structural reforms, including a radical review of business processes, and the promotion of digital transformation (DX) and strategic technological developments, while also working to reinforce our ESG/SDG initiatives. Regarding the "expansion of business domains," we are further expanding our new businesses and real estate business, including the launch of commercial operations at our biomass power generation plants in Hokkaido and Fukushima Prefecture as renewable energy businesses that contribute to achieving a decarbonized society. We are also building the foundations for our overseas business. We will continue with our efforts to "leverage our human resources" by upgrading our internal programs to help employees achieve a good work-life balance and undertaking other measures to promote work style reform, as well as giving our diverse people the opportunity to flourish and promoting initiatives to strengthen staff education.
The Company looks forward to the continued support and guidance of our shareholders.
June 2023
Takanori Okumura
President and Representative Director
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Okumura Corporation published this content on 22 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 August 2023 06:41:10 UTC.