Tobishima : Annual Report

Tobishima

Annual Report

2022

PROFILE

Since its founding in 1883, Tobishima has steadfastly contributed to society through major construction projects, from the undersea expressway tunnel, Tokyo Aqua-Line, to the Surikamigawa Dam, one of Japan's largest core rock-filled dams. Our portfolio not only exemplifies the high quality of our projects; it also demonstrates Tobishima's advanced technologies, the fruit of our many years of experience.

Renowned for our products and services, as well as the knowledge of our employees, we are constantly developing and investing in new technologies and systems to support continuous improvement.

Disaster restoration work at Tashiro River sluice gate and surrounding area [Iwate]

Moreover, we have expanded our business domains by responding to the demands of the times. We are now engaged in solutions businesses that meet the varied needs of our customers in addition to construction work. We will strengthen our explorations into new areas where Tobishima can fully apply its expertise in engineering and disaster prevention.

Outside of Japan, Tobishima has long been involved in improving infrastructure through construction of roads, ports, subways, hospitals, factories and government buildings, particularly in Southeast and West Asia.

We are working just as hard today to establish a corporate culture commensurate with the challenges of building the structures that people around the world need in order to enjoy better lives.

Brunei Darussalam Central Bank Building Project [Brunei]

Consolidated Financial Highlights

Year ended March 31, 2022

		Millions of Yen	Millions of Yen	Thousands of
		2022	2021	U.S.Dollars 2022
For the Year:	Net sales	¥ 117,665	¥ 117,295	$ 961,394
	Income before income taxes	3,896	3,666	31,831
	Net income attributable to owners of parent	3,220	2,452	26,306
At Year-end:	Total assets	¥ 114,633	¥ 121,599	$ 936,618
	Total net assets	43,873	41,586	358,468
Per Share of	(in yen and dollars):	¥ 168.30	¥ 128.15	$ 1.375
Common Stock:	Basic net income
	Net assets	2,293.14	2,173.26	18.736

Note 1: U.S. dollar amounts here and elsewhere in this annual report are translated from yen at the rate of ¥ 122.39=US$ 1.00, the rate on March 31, 2022 for the reader's convenience only.

Note 2: The years included in the text are fiscal years, which run from April 1 through March 31 of the following year.

MESSAGE FROM THE PRESIDENT

To our stakeholders

As well as the remarkable progress of advanced technology and the various communication and information tools, the COVID-19 pandemic has brought about major changes in people's values and behaviors, and society is entering a period of rapid change.

During this uncertainty, the Tobishima Group will aim at Sustainability Transformation (SX) which integrates social sustainability through ESG/SDGs management with corporate sustainability through production process changes by DX.

With this concept, we will grasp medium- to long- term risks and opportunities and seek for sustainable improvement of the corporate value.

We would like to ask our stakeholders for continued support for the ever-evolving Tobishima Group.

June 2022

Masahiro Norikyo

President and Representative Director

1

Consolidated Balance Sheet

TOBISHIMA CORPORATION

As of March 31, 2022

		Millions of Yen	Millions of Yen	Thousands of
ASSETS		2022	2021	U.S.Dollars 2022
Current assets	Cash and cash equivalents	¥ 12,749	¥ 25,236	$ 104,170
	Real estate for sale	615	1,043	5,024
	Notes receivable, accounts receivable from completed construction	57,015	52,295	465,848
	contracts, and other (*1)
	(6)	(8)	(51)
	Allowance for doubtful accounts
	Costs on uncompleted construction contracts and other (*2)	2,178	1,903	17,798
	Costs on development business and other (*3)	6,707	6,197	54,800
	Other (*4)	7,496	7,376	61,246
	Total current assets	86,754	94,042	708,835
Property, plant	Buildings and structures	19,033	17,158	155,508
and equipment	Machinery, equipment, furniture and fixtures	4,421	4,784	36,121
	Land	8,193	8,500	66,944
	Lease assets	148	135	1,212
	Construction in progress	16	1,556	131
	Accumulated depreciation	(12,797)	(12,897)	(104,561)
	Total property, plant, and equipment,net	19,014	19,236	155,355
Investments and	Investment securities (*5)	4,095	4,229	33,455
other assets	Retirement benefit assets	1,943	1,280	15,872
	Intangible assets, net	997	1,097	8,143
	Other (*6)	2,032	1,916	16,607
	Allowance for doubtful accounts	(202)	(201)	(1,649)
	Total investments and other assets	8,865	8,321	72,428
Total		¥ 114,633	¥ 121,599	$ 936,618
See notes to consolidated financial statements	Millions of Yen	Millions of Yen	Thousands of
LIABILITIES AND EQUITY	2022	2021	U.S.Dollars 2022
Current liabilities	Notes payable, accounts payable for construction contracts and other	¥ 26,174	¥ 26,247	$ 213,860
	Short-term borrowings (*7)	3,158	5,249	25,801
	Advances received on uncompleted construction contracts	5,426	6,459	44,337
	Deposits received	19,077	22,237	155,868
	Provision for warranties for completed construction	417	365	3,405
	Provision for loss on construction contracts (*8)	166	273	1,358
	Other	2,394	3,268	19,555
	Total current liabilities	56,812	64,098	464,184
Long-term	Liability for retirement benefits	43	73	353
liabilities	Long-term borrowings (*9)	13,038	14,944	106,527
	Provision for share-based remuneration for directors (and other officers)	47	28	387
	Provision for retirement benefits for directors (and other officers)	33	59	272
	Other	787	811	6,427
	Total long-term liabilities	13,948	15,915	113,966
	Total liabilities	¥ 70,760	¥ 80,013	$ 578,150
Equity	Common stock―authorized, 40,000 thousand shares;	¥ 5,520	¥ 5,520	$ 45,101
	Issued, 19,310 thousand shares	6,237	6,238	50,962
	Capital surplus
	Retained earnings	31,622	29,354	258,366
	Treasury stock―at cost:	(581)	(578)	(4,746)
	78,926 Shares
	Accumulated other comprehensive income	631	714	5,156
	Unrealized gain on available-for-sale securities
	Foreign currency translation adjustments	8	1	63
	Defined retirement benefit plans	428	329	3,497
	Total	1,067	1,044	8,716
	Noncontrolling interest	8	8	69
	Total equity	43,873	41,586	358,468
Total		¥ 114,633	¥ 121,599	$ 936,618
See notes to consolidated financial statements

2

Consolidated Statement of Income

TOBISHIMA CORPORATION

Year ended March 31, 2022

		Millions of Yen	Millions of Yen	Thousands of
		2022	2021	U.S.Dollars 2022
Net sales	Net sales of completed construction contracts	¥ 110,514	¥ 111,413	$ 902,967
	Net sales of development business and other	7,151	5,882	58,427
	Total net sales (*1)	117,665	117,295	961,394
Cost of sales
Cost of sales of completed construction contracts (*2)	98,654	99,965	806,065
	Cost of sales on development business and other	5,798	5,216	47,374
	Total cost of sales	104,452	105,181	853,439
Gross profit
Gross profit on completed construction contracts	11,860	11,448	96,903
	Gross profit on development business and other	1,353	666	11,053
	Gross profit	13,213	12,114	107,956
Selling, general, and administrative expenses (*2)	8,638	8,119	70,574
Operating income		4,575	3,995	37,382
Other income	Interest and dividends	28	33	227
(expenses)	Foreign exchange gains	38	-	313
	Gain on sales of property, plant and equipment (*4)	4	0	30
	Gain on investments in investment partnerships	20	-	165
	Gain on sale of shares of subsidiaries and associates	91	-	745
	Interest expense	(215)	(268)	(1,758)
	Commission for syndicate loan	(51)	(187)	(417)
	Design activity costs	(87)	-	(713)
	Loss on sales of property, plant and equipment (*5)	(1)	(5)	(7)
	Impairment losses (*6)	(371)	-	(3,033)
	Other net	(135)	98	(1,103)
	Other expenses―net	(679)	(329)	(5,551)
Income before income taxes	3,896	3,666	31,831
Income taxes	Current	612	1,154	5,000
	Deferred	64	60	525
	Total income taxes	676	1,214	5,525
Net income		3,220	2,452	26,306
Net income (loss) attributable to noncontrolling interest	(0)	0	(0)
Net income attributable to owners of parent	¥ 3,220	¥ 2,452	$ 26,306
		Yen	Yen	U.S.Dollars
Per share of common stock	2022	2021	2022
Basic net income	168.30	128.15	1.375
Cash dividends applicable to the year	50.00	50.00	0.409

See notes to consolidated financial statements

Consolidated Statement of Comprehensive Income

TOBISHIMA CORPORATION

Year ended March 31, 2022	Millions of Yen	Millions of Yen	Thousands of
	2022	2021	U.S.Dollars 2022
Net income	¥ 3,220	¥ 2,452	$ 26,306
Other comprehensive income	(83)	(22)	(679)
Unrealized (loss) on available-for-sale securities
Foreign currency translation adjustments	7	(3)	61
Adjustment for retirement benefits	99	648	806
Total other comprehensive income (*1)	23	623	188
Comprehensive income	3,243	3,075	26,494
Total comprehensive income
Attributable to:
Owners of the parent	¥ 3,242	¥ 3,075	$ 26,488
Non controlling interest	1	(0)	6

See notes to consolidated financial statements

3