annual report 2013 - 大成建設株式会社 · fy 2012 (1st april 2012 to 31st march 2013) ......

ANNUAL REP ORT

2013

Contents02 Top Message03 Corporate Data05 Taisei Group CSR07 Towards a Sustainable Society09 Special Feature 1: Creating Social

Infrastructure Across Continental Boundaries “The Bosphorus Strait Railway Tunnel”Connecting Asia and Europe • Chronic traffi c congestion and worsening air pollution• Taisei’s technology meeting the world’s challenges

13 Special Feature 2: New Landmark “Ochanomizu Sola City” Environmentally Friendly, Preserving the History of the Area• Rebirth of the gateway to the town• Environmentally friendly technology and continuation of history

17 Special Feature 3: Creating a Society that is Strong Against Disasters Aiming for a highly resilient society• Response to disaster risk• Various solutions for achieving business continuity

21 Research and Development Activities23 Initiatives of the Taisei Group of Companies25 Introduction to Our Achievements37 Financial Date

This report was compiled to inform our stakeholders about the group ideals of the Taisei Group and the Group’s Action Guidelines. The report consists of this volume and a separate volume (Databook); this volume mainly describes the company’s CSR initiatives, and the separate volume includes environmental data, the main KP, and other numerical information. Detailed information not included in this report can be found on the Taisei Corporation website.

Editorial PolicyEditorial Policy

Taisei Corporation and the Main Taisei Group of Companies

Organizations Covered

FY 2012 (1st April 2012 to 31st March 2013)(Some contents outside this financial year are included)

Report Period

▶ Ministry of the Environment “Environmental Report Guidelines (2007 Edition)”

▶ ISO 26000 (International Guidance on Social Responsibility of Organizations)

Published September 2013

Reference Guidelines

Included in the world’s representative SRI Indexes

Two years have passed since the occurrence of the Great East Japan Earthquake; the important tasks now are recovery of the areas aff ected by the disaster and building a country that is strong against disasters. How should highly safe and reliable infrastructure be developed？ What kind of social systems can coexist with nature？ How can a society that is prepared for disasters and is not burdened with all kinds of risks be realized？ Every company of the Taisei Group is working to solve these problems.To achieve Taisei Group ideal “To create a vibrant environment for all members of society”, we are seeking a path to develop a sustainable society by pursuing more advanced technologies and through environmental initiatives. The year 2013 marks 140 years since the founding of Taisei Corporation. As we deeply recognize the social mission that a general contractor must fulfi ll, we are engaged in creating the infrastructure for a vibrant society.

Takashi YamauchiPresident and Chief Executive Offi cer

Aiming for a Sustainable SocietyFulfi lling our Mission as a General Contractor

Top Message

Corporate Data

Taisei Corporation

Domestic Network (as of 31th March, 2013)

Overseas Network (as of 31th March, 2013)

Name Taisei Corporation

Established December 28, 1917

Paid-in capital 112.4 billion yen

Head Offi ce Shinjuku Center Building, 1-25-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo 163-0606, Japan

●Thailand Office●Taisei (Thailand) Co., Ltd. (Thailand)

●Pakistan Office (Islamabad)

●Myanmar Office

●Vietnam Offices (Hanoi/Ho Chi Minh City)●Vinata International Joint Venture Co., Ltd. (Vietnam)

●Jakarta Office●P T. PP-Taisei Indonesia Construction (Indonesia)●PT. Indotaisei Indah Development (Indonesia)

●Istanbul Office

●India Office (New Delhi)

●Kuala Lumpur Office

●Tas Plan, Inc. (Philippines)●Taisei Philippine Construction Inc. (Philippines)

●Taipei Office

●CSCEC-Taisei Construction, Ltd. (China)

●North Africa Office (Egypt)

●Middle East Offices (Doha/Dubai)

●Sri Lanka Office (Colombo)

●U.S.A. Office (California)

●Sales office●Overseas subsidiary

●Sapporo

●Tohoku (Sendai)

●Head Office●Branch Office●Technology Center

●Head Office●Tokyo●International Operations Headquarters (Shinjuku, Tokyo)

●Chiba

●Yokohama●Technology Center (Yokohama)

●Hoku-Shinetsu (Niigata)

●Kanto (Saitama)

●Nagoya

●Kyoto

●Kobe

●Kansai (Osaka)

●Kyushu (Fukuoka)

●Chugoku (Hiroshima)

●Shikoku (Takamatsu)

Representative Takashi Yamauchi, Representative Director,President and Chief Executive Offi cer

Main business Operations

Civil engineering, Building construction Development, other

Number of employees (as of 31th March, 2013)

7,945

Financial Results (consolidated) (as of 31th March, 2013)

0

500

1,000

1,500

2,000

0

5,000

10,000

15,000

20,000

(Billion yen)

2008 2009 2010 2011

1,5251,244 1,254 1,380

1,6411,442

1,218 1,324

-11

27 2430

15,260 14,461 14,039 13,776

(FY)0

500

1,000

1,500

2,000(Billion yen)

2008 2009 2010 2011 (FY)

(Billion yen) (Persons)

2008 2009 2010 2011

2012

1,404

35

2012 (FY) 2008 2009 2010 2011

1,416

13,569

2012

2012 (FY)-20

0

20

40

Taisei Group of Companies

Buildingconstruction

Real estate/development

Other

Taisei Rotec CorporationTaisei U-LEC Co., Ltd.Taisei Setsubi Co., Ltd.Taisei Housing CorporationSeiwa Renewal Works Co., Ltd.Taisei Research Institute, Inc.

Taisei-Yuraku Real Estate Co., Ltd.Taisei-Yuraku Real Estate Sales Co., Ltd.Symboltower Development Co., Ltd.

Kita-karuizawa Development Co., Ltd.Hotel Precede Koriyama Co., Ltd., etc.

TAISEI Corporation Organization Chart (as of 1st April, 2013)■ Head Offi ce

Total assets Net assets (consolidated) (as of 31th March, 2013)

Total assets (consolidated): 1,543.0 billion yenNet assets (consolidated): 343.3 billion yen

Secretarial Dept.Auditing Dept.Corporate Planning OfficeBusiness Administration Div.Safety Administration DivisionEnvironment DivisionTaisei Technology CenterNuclear Facilities DivisionMarketing & Sales Division (Integrated)Marketing & Sales Promotion Div.Proposal & Solutions Div.Marketing & Sales (Building Construction) Div.ⅠMarketing & Sales (Building Construction) Div.ⅡMarketing & Sales (Building Construction) Div.ⅢMedical & Welfare Business Div.Urban Development Div.Marketing & Sales (Civil Engineering) Div.Marketing & Sales (West Japan) DivisionEast Japan Reconstruction Div.Engineering Div.Architecture＆Engineering Division (Integrated)Building Construction Div.Mechanical & Electrical Div.Design Div.Civil Engineering Div.Procurement Div.BranchInternational Operations Headquarters

President

Corporate AuditorAuditor's Secretarial Dept.

■ New Orders

■ Ordinary Income

■ Sales

■ Number of Employees

Taisei Group CSR

System for Promoting CSR

All offi cers and employees of the Taisei Group share the “Taisei Spirit,” and aim to realize the Group ideal “To create a vibrant environment for all members of society” by conducting business while implementing the “Management Plan” (TAISEI VISION, Medium-Term Business Plan) and the “Action Guidelines” (Group Action Guidelines).

A CSR committee has been established to promote CSR activities within the Taisei Group.The CSR Committee includes six Taisei’s board members and offi cers.The CSR Promotion Offi ce educates and gives guidance on CSR, and exchanges opinions with the various departments and Group companies to promote the Group’s CSR activities.

Promoting CSR with the Taisei Group’s Shared Ideals and Values

A slogan that concisely expresses the "Taisei Group Ideal,,” the "Taisei Spirit,” and the "Group Action Guidelines.”

Board of Directors

CSR Promotion Offi ce

Taisei Group of CompaniesEach department

CSR Committee

Taisei Spirit

Taisei Group IdealTaisei Spirit

• Conceptual approaches valued by all TAISEI Group members for the pursuit and realization of the Group ideal

Action Guidelines for Taisei Person-nel and the Taisei Group as a Whole

Medium-term Business Plan （FY 2012-2014）

Overall Principles of Conduct

Overall Management Perspective

Taisei Group IdealTo create a vibrant environment for all members of society• Continuing Objectives to be Pursued by the TAISEI Group (Goals)

Group Action Guidelines• The “basic principles” for action by the TAISEI organization and the “standards for action and judgment to be strictly observed and positively acted on by TAISEI Group members at all levels”Individual Policies

Mid-Term Business Plan• The long-term vision of the Taisei Group (TAISEI VISION)

Basic Policy1. Fulfi llment of social responsibilities imposed on the construction industry

2. Establishment of a business structure for the creation of high-added value

Business issues• Construction business: Strengthening of the core business• Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction• Overseas business: Establishment of an earnings structure• Strengthening of initiatives and expansion of business fi elds to create high added value• Development/improvement of robust business foundations

Commitment to Openness

Creation of Value

Evolution of TAISEI Spirit Traditions

The Taisei Group of Companies sets tasks and targets for implementing the management issues in the “Action Guidelines” with reference to ISO 26000.In addition, KPI are set in order to clarify the targets. By repeating the Plan-Do-Check-Act (PDCA) cycle, the CSR activities are developed. The task and target initiatives for fi nancial year 2012 are as follows.

Development of CSR Activities

PDCA Cycle

ISO26000 Main Issues and Objectives Main Initiative Items of FY 2012 Main KPIs (Key Performance Indicators)*(Contained in separate DATA BOOK) Field

The Environment

Promote environmental management activities (achieve TAISEI Agenda 2012)

Contribute to realizing a low-carbon society Projected CO2 emissions and reduction rate at the operaeion stage of buildings* (●)CO2 emissions reduction rate during construction (●)

The environmentPromote energy conservation Rate of decrease of electric power use (○)

Promote 3R (reduce, reuse, recycle) activitiesPromote green procurement

Rate of recycling of construction waste (★)Rate of green procurement (●)

Proper control of construction waste Rate of electronic manifest penetration (★)Provide environmentally friendly technology Amount of media coverage of environmental

technologies / PJ using these technologies (○)Number of proposals given to customers to improve energy conservation in their facilities (○)

Conduct comprehensive environmental activities Rate of participation in environment-related training (●)Consumer Issues

Quality control and customer satisfaction improvement

Establishment and observance of quality management standards and procedures

Customer satisfaction surveys (★)

Society

Development and provision of technologies for resolving social issues

Number of patent applications fi led and patents granted (●)

Amount of media coverage of development of technologies / Projects in which technologies were applied (●)

Community Involvement and Development

Contributions to local communities

Promoting activities contributing to society Number of activities contributing to society and the environment (●)

Expansion of employees’ volunteer activities (Support activities in disaster-aff ected areas, etc.)

Number of employees who participated in volunteer activities (●)

Human Rights and Labor Practices

Respect for human rights Human rights awareness raising activities Rate of attendance in human rights training (●)Creating a pleasant work environment

Promotion of diversitySupport for work-life balance

Number of participants in education and training for female leaders / Number of female managers / Number of female offi cers / Physically challenged employment rate / Number of re-employed individuals (●) / Number of employees taking childcare leave (●) / Rate of paid leave utilization (●) / Number of former employees registered with the Job-Return system (●)

Support for employees’ career development

Promotion of personnel training Training hours per employee (●)Number of trainees at overseas construction sites (●)Number of trainees at overseas research institutes, etc. (●)

Labor Practices

Thoroughgoing occupational health and safety management, collaboration with the TAISEI Association of Subcontractors for Health, Safety, and the Environment

Continuous practice and improvement of TAISEI OHSMS

Number of fatal accidents and frequency rate (●)Accident frequency rate (○)Number of occupational accidents (○)

Fair Business Practices

Promoting compliance Ongoing implementation of compliance training Rate of participation in compliance training (Group training) (★)Number of branches conducting compliance training for subcontractors (●)

Governance

Supply Chain Management Promoting CSR procurement (to be set in FY2013)Protection management and use of intellectual property

Intellectual property risk management initiatives Number of training sessions on intellectual property rights (●)

Information security measures Protection and management of information Number of major information security breaches (●)Number of company-wide education programs regarding information security (●)

Organizational Governance

Corporate governance and internal controls

Dissemination and establishment of the TAISEI Group Ideal Structure of Values and Policies

Rate of TAISEI Group Ideal e-learning implementation (●)

Risk management BCP initiatives Rate of participation in major disaster response training (●)Information disclosure and dialogue with stakeholders

Promoting dialogue with stakeholders Number of dialogues, etc. (●)

Available from the Taisei Corporation website TAISEI CORPORATE REPORT 2013 DATA BOOK p3～6

• The Environment • Consumer Issues • Community Involvement and Development • Human Rights and Labor Practices• Labor Practices • Fair Business Practices• Organizational Governance

Sustained growth of the enterprise

CheckDo

ActPlan

Overall Principles of Conduct

Act• Identify points of improvement to address issues and objectives of CSR activities and set issues and objectives for the next fi scal year

PlanOverall Management Perspective• Mid-Term Business Plan and Business Issues • Main Issues and Objectives

Overall Principles of Conduct• Group Action Guidelines (Basic conceptual approach to CSR activities)

Do• Main Initiative Items

Check• TAISEI Agenda 2012 performance fi gures and degree of achievement• Main initiative items and main KPI performance fi gures and degree of achievement

The seven core subjects of ISO 26000

Group Action Guidelines

* KPI(s): Key Performance Indicator(s)　●: Taisei KPIs, ○: Taisei Group of companies KPIs, ★: Taisei and Taisei Group of companies KPIs

Towards a Sustainable Society

Percentage of overall sales

TAISEI VISION 2020

The long-term vision of the Taisei Group

Basic Policy1. Fulfi llment of social responsibilities imposed on the construction industry

2. Establishment of a business structure for the creation of high-added valueBusiness issues• Construction business: Strengthening of the core business• Development/improvement of social infrastructure: Contribution to post-earthquake reconstruction• Overseas business: Establishment of an earnings structure• Strengthening of initiatives and expansion of business fi elds to create high added value• Development/improvement of robust business foundations

Mid-Term Business Plan（2012-2014）

Taisei Group Management Plan and Business Structure

Social Tasks*

9.4％

Percentage of overall sales

0.7％

* Tasks recognized by the Taisei Group of companies * Sales amount and number of employees are as of 31th March, 2013

Environmental problems

Large scale disasters

Energy effi ciency, lower CO2

Social infrastructure

We aim to be a company that creates high added value, that establishes new business structures, and that is sustainable and is continuously developing company.

Civil engineeringPercentage of overall sales

25.3％

Sales amount of civil ¥358.3 billion

Number of employees (percentage of employees) 3,773 (27.8%)

Constructing social infrastructure that supports the daily lives of the people and industry, which is in harmony with the environment, and that is benefi cial for the next generation.

Building constructionPercentage of overall sales

64.6％


Sales amount of civil ¥915.4 billionConstruction of airports, offi ces, commercial facilities, factories, hospital facilities, etc., housing projects, demolition and renewal projects, etc.Constructing buildings and facilities utilizing research and development and engineering technology to realize a safe, secure, low carbon, recycling society.

Real estatedevelopment


Development sales ¥132.9 billionPFI projects, redevelopment projects, land use, property management, condominium projects, etc.

Proposing “urban regeneration” plans for various project schemes utilizing unique methods and know-how.

Number of employees (percentage of employees) 147 (1.1%)

Sales of other business ¥9.7 billionContract research, technology transfer, environmental measurements, etc.Providing the optimum solutions at every phase.

We are Contributing to the Creation of a Sustainable Society for a Better Future

Construction of structures such as tunnels, bridges, roads, dams, etc., decontamination projects, renewal projects, etc.

Other business

The Taisei Group has formulated the long-term vision “TAISEI VISION 2020” and the medium-term plan “Medium-term Buissines Plan,” and established a new business structure to produce higher added value, in order to achieve sustainable development of the group of companies. Through this process, we aim to fulfi ll our responsibilities for solving societies problems by utilizing the technologies, personnel, and know-how of the Taisei Group, and to contribute to creating a sustainable society.

Activities Contributing to the Creation of a Sustainable Society

Immersed tunnel for the Bosphorus Strait Railway Tunnel

Demolition using the Taisei Ecological Reproduction System

Ochanomizu Sola City

Facility management information “CAFM,” etc.

Shield machine for the Metropolitan Expressway Central Circular Route Shinagawa Line

Real estate service solutions

New Doha International Airport

“The Bosphorus Strait Railway Tunnel”Connecting Asia and Europe

● Chronic traffi c congestion and worsening air pollution

● Taisei’s technology meeting the world’s challenges

Special feature 1 ………………………P09

New Landmark “Ochanomizu Sola City”

● Rebirth of the gateway to the town● Environmentally friendly technology and continuation of history

Special feature 2 ……………………… P13

Aiming for a highly resilient society

● Response to disaster risk● Various solutions for achieving business continuity

Special feature 3 ……………………… P17

Research and Development Activities ……………………………… P21

Initiative of the Taisei Group of Companies …………………………P23

Creating new value with technology, personnel, and know-how

Creating Social Infrastructure Across Continental Boundaries

Environmentally Friendly, Preserving the History of the Area

Creating a Society that is Strong Against Disasters

Creating Social Infrastructure Across Continental Boundaries“ The Bosphorus Strait Railway Tunnel” Connecting Asia and EuropeAn unprecedented undersea tunnel construction project has been carried out in the Republic of Turkey, a country shaped by world history as the crossroads between Eastern and Western civilizations, and which has gained attention as a newly emerging economic country as a result of their rapid growth in recent years.This project is the “Bosporus Strait Railway Tunnel” which has been a long cherished desire since the Ottoman Empire era.This is an introduction to one of Taisei's largest projects.

Bosphorus Strait

Ayrilikcesme Station

Uskudar StationGalata Bridge

Sirkeci StationHagia SofiaBlue Mosque

Yenicapi Station

Kazikcesme Station

Sea of Marmara

First Bosphorus Bridge

Golden Horn

Old City

New City

9 TAISEI ANNUAL REPORT 2013

Special Feature 1Special Feature 1

The Republic of Turkey is close to economic regions such as Europe, Asia, Middle East, etc. Its presence as an international economic hub is increasing, it has enjoyed signifi cant economic growth in recent years, and now has a population of 75 million.The Bosporus Strait, which passes through the center of Istanbul, the largest economic center in Turkey, divides the city into an Asian side and a European side. For a long time the Bosphorus Strait has been a barrier to traffi c. In fact, the idea for an undersea tunnel crossing the Strait has existed since the time of the Ottoman Empire. At present two suspension bridges have been constructed across the Bosporus Strait, but because of chronic traffi c congestion and worsening atmospheric pollution associated with this congestion, securing a new traffi c route has become an urgent task, so the opening of a high-capacity railway that is capable of reducing the environmental burden is urgently required.

Chronic Traffi c Congestion and Worsening Air Pollution

New Traffi c Route to Improve the Congestion

Conserving the Culture and Environment of Istanbul

Realization of a 150 year-old Dream for the Turkish People

Therefore the concept was born to construct an underground railway tunnel crossing the Strait. The scheme would improve not only the congestion and the environment, but also the historic landscape. Also as a measure against earthquakes, Taisei aimed for a “100 year tunnel” that would withstand a gigantic earthquake. As a result of the company’s vast experience in tunnel construction, we submitted technical proposal with advanced technology, and in August 2004 the latest technologies were invested and the challenge of this diffi cult project that spans the centuries commenced.

Istanbul is an ancient city that fl ourished as a capital city of three great empires: the Roman, Byzantine, and Ottoman Empires, and is a treasury of historical assets. Actually, during the construction of underground stations on this project, groups of remains from these three eras were discovered. The construction period of the project was extended due to extensive archeological surveys, but we cooperated in these archeological surveys to conserve these important cultural assets of Turkey.

In February 2011, the connection between the land tunnel sections and the immersed subsea tunnel that connects Europe and Asia was completed. Prime Minister Erdogan proudly proclaimed the realization of the 150-year-old dream dating from the 1860s. In the autumn of 2013 operation of the railway is planned to start.

1 Roman era Valens Aqueduct2 Hagia Sofi a Mosque, the greatest masterpiece of Byzantine architecture3 View of Istanbul city

10TAISEI ANNUAL REPORT 2013

1 32

Project longitudinal cross-section

Existing immersed tunnel element

New immersing tunnel elements

Marmara Sea side

Black Sea side

Immersion ship

Mooring device

Access shaft

European side

Asian side

1

Yenikapi Station

7,108m

13,558m

5,063m

Sirkeci Station

Bosphorus Strait

Uskudar Station

European side Asian side

Kazilcesme Station

Shield tunnel

※ 1-5 in the diagram above: Shield machine

Above ground station

Bridge

Shield tunnel Shield tunnelImmersed tunnel

Open cut portionOpen cut portion

PassPass

Open cut portion BridgeOpen cut portionOpen cut station

NATM station

Embankment

Open cut tunnel

2,130m

1※

3,340m 4,610m

123

45

1,387mDeepest

about 60 m

Connection to immersed tunnel elements

2


Special Feature 1Special Feature 1

Taisei’s Technology meeting the World’s ChallengesThe underground railway line of the Bosphorus Strait railway tunnel construction mega-project is a joint project extending over a total of 13.6 km, and includes approximately 1.4 km of immersed tunnel across the Strait, about 9.5 km of shield tunnel (two lines of inbound and outbound track) connecting to the immersed tunnel, three underground stations, and one above ground station.

The Challenge of Constructing an Immersed Tunnel under the Strait in Great Water Depth and Rapid Tidal FlowsThe major feature of the project is the subsea tunnel crossing the Strait. For this, the immersed tunnel method was adopted, in which large precast concrete tunnel elements are sunk to the seabed and connected.It is known that the Bosphorus Strait has tidal fl ows that have diff erent direction in their upper and lower layers. Under these severe natural conditions, monitoring of the weather and sea conditions was carried out over one year, and a system for predicting the daily fl ow speeds was developed, so that precise construction could be carried out safely. As a result of repeated investigations and tests carried out by the Taisei Technology Center, the world’s deepest immersed tunnel was completed.

Feedback of the predictions

Turkey Japan

▲ Weather measurement point

□ Water level measurement point

● Flow rate measurement point

Persons responsible for construction

Measurement data from Turkey is analyzed, and tidal fl ows are predicted

Bosphorus Strait/Turkey


●Massive Immersed tunnel elements with service life of 100 YearsThe massive immersed tunnel elements with a maximum length of 135 m, height 8.6 m, and width 15.3 m require the highest standard of design and construction in order to maintain water tightness while withstanding up to 60 m depth of water pressure.Also, the tunnel elements consist of, a reinforced concrete box structure encased on the outside by a waterproof steel plate, to provide water tightness and durability for the tunnel to last 100 years.

●The World's First RC Immersed Tunnel Elements Constructed on the SeaThe bottom half of the immersed tunnel elements were fi rst constructed on dry land, and later the top half was constructed off shore. One by one, the tunnel elements were towed by ship from a location 40 km away from the tunnel to their installation location, where they were sunk.

●Highly Accurate Tidal Flow Prediction SystemThe “tidal fl ow prediction system〞 which we developed is an online prediction system to predict complex flow conditions. The weather, water levels, and flow velocities were measured in real time near the construction site, and the prediction of the tidal fl ows for a continuous 36 hours for the scheduled immersion day was produced by an analysis computer. The work was carried out after determining whether it was safe to carry out the immersion. * See the image 1 on the left

●Tunnel Construction under the CityThe shield construction method was adopted for constructing the tunnel under land. The shield tunnel, which comprises 70% of the route, passes under densely built residential areas over virtually its whole length, but it was possible to complete the excavation without affecting any building. Sirkeci Station was constructed below a very high density residential area. The structure of the station was complex at this location, so the NATM construction method was adopted. In order to minimize demolition of historical buildings, the station was constructed underground using only two vertical shafts.

●Directly Connecting Diff erent Types of TunnelThe challenge of directly connecting to the immersed tunnel under the sea was a world’s fi rst. First, a shield machine excavated from the land side to the connection area under the strait close to the shore. This connection area is an artifi cial underground embankment between the under sea tunnel and the land side. The allowable tolerance was about 10 cm. After the shield machine had arrived at the immersed tunnel under high accuracy control, special waterproofi ng technology was used. In February 2011 the 13.6 km of railway tunnel connecting Asia and Europe was opened. * See the image 2 on the left

Schematic diagram of the connection between the shield tunnel and the immersed tunnel

Work vessel immersing tunnel elements

Special Feature 2


New Landmark “Ochanomizu Sola City”Environmentally Friendly, Preserving the History of the AreaIn April 2013, and new landmark was born in Ochanomizu, Tokyo’s new and constantly changing business area.This is “Ochanomizu Sola City” which solved issues in the area as well as achieved the highest level of environmental performance, while preserving the history and culture of the area and succeeding the characteristics of a “good old town.”Ochanomizu Sola City is expected to be a place for open interchange in the area.Here we introduce this redevelopment project that has achieved a high level of environmental performance.

Ochanomizu Sola City is a redevelopment project located in front of the station, so it was designed with the concept “Rebirth of the Gateway to the Town,” to achieve an urban development that combines a business center and a center for exchange among the local residents and visitors.Taisei Corporation has promoted the project from the planning stage as one of the developers, and we have developed the urban function in conjunction with many local parties and have incorporated many environmental measures using the company’s technologies.

Rebirth of the Gateway to the Town

Producing a Town for People, Creating a Comfortable Pedestrian Network

Improvement of Barrier-Free Route and Direct Connection with Tokyo Metro Shin-Ochanomizu Station

The topography of the surrounding area includes a large diff erence in level, with the highest point at Ochanomizu Station, and there are many steeply sloping roads. Therefore, a fl at pedestrian road and connecting bridge were provided connecting the Sola City Plaza (underground plaza) and the nearby urban rede-velopment project (Waterras). This has greatly improved the access to JR Ocha-nomizu Station for the local people. This open underground plaza where many people come and go connects the people with the town. Also, the PCa columns that support the Sola City Plaza use 300 N/mm2 class ultra high strength concrete (Taisei Super-concrete) to ensure an open feeling in Sola City Plaza. (See P21)

By installing a new elevator to the Tokyo Metro Shin-Ochanomizu Station platform from within the site, a barrier-free route that was diffi cult to realize structurally will be provided (scheduled completion August 2013). Ticket gate directly connects to the Sola City Plaza (underground plaza), thereby greatly im-proving access to the Awajicho direction. In addition, the station from the ticket gate to the ground level, including the elevator and escalators has been made barrier free, improving the convenience of users such as persons using a wheel-chair or with a baby cart.

1 32

1 Spread in front of the station is the approximately 4,400 m2 Sola City Plaza2 View of the Kanda Festival3 Grassy open space where students gather

Connecting bridge that joins Ochanomizu Sola City and the urban redevelopment project (Waterras)

Ochanomizu Sola City Building stands at the front of Ochanomizu Station

Schematic diagram of Tokyo Metro Shin-Ochanomizu Station barrier-free route

Sola City Plaza

1F above ground plaza

New elevator between ticket gate level and ground level

Existing route

B1F underground plaza

Existing escalator

Chiyoda Line platform

Ticket gate

New passage

Newly developed part

New elevator between ticket gate level and platform

A Town Producing New Culture from Various Interactions

As a member of the local community of Ochanomizu, I am very pleased with the completion of this project. Urban planning in the 21st century emphasizes that one of the functions of a city is as a place of interaction. In Ochanomizu, various types of people congregate, ranging from students and the elderly, and the area for interaction among people has increased. From these various exchanges information and culture will be born opening up a new age, which will be widely propagated throughout the world. This type of urban development has now started in this area. I am looking forward to Ochanomizu Sola City developing into a base for local exchange and exchange with the world.

Professor Yasushi AOYAMA, Meiji University (former deputy governor of Tokyo) Chairman of Kandasurugadai Local Urban Planning Association


Special Feature 2

The Highest Level of Environmental Performance and Greenery

At Ochanomizu Sola City, we undertook the challenge of positively using unused natural energy and the existing piles, by a balanced combination of various environmental technologies and taking the local environment into consideration. Also, by preserving and reusing stonewalls or bricks that are remains in this area for more than 100 years, the memory and the history of this town is preserved.

Ochanomizu Sola City is to obtain the highest level of CASBEE (Comprehensive Assessment System for Built Environment Effi ciency), S(Special) rank. As specifi ed by Tokyo Metropolitan Government, a PAL reduction rate*1 of about 35% and an ERR*1 of about 58% have been achieved.*3 The highest class in the Tokyo Metropolitan Government standards, level 3, has been attained in all cases. Excellent environmental performance has been achieved by arranging the core on the south face, the vertical ribs on the east and west faces, the use of low-e glass, and the use of LED lighting in all the rental offi ces. In this way, energy effi ciency and reduction in environmental load, such as reduction in CO2, etc., are achieved, as well as reduced running cost.In Ochanomizu Sola City, Japanese zelkova and camphor trees which are familiar in the area were preserved where they were or transplanted and preserved, as a new base of greenery. Also by incorporating above ground greenery and rooftop greenery, etc., a greenery percentage of 45% of the total site area was achieved.

*1 PAL: An index for heat loss through external walls and windows, etc., of a building*2 ERR: The percentage reduction in primary energy consumed by all the building equipment*3 The values are for offi ce use in all cases

Preservation of Japanese zelkova and camphor trees on site

Holy Resurrection Cathedral visible behind the grass plaza

Environmentally Friendly Technology and Continuation of History


Rooftop greenery

Highly effi cient package air conditioning

Use of water pumped up from the Metro

Reuse of existing piles Greenery on the ground

Large capacity solar power generation panels

Low-e glass

13

2

Shielding of sunlight with vertical fi ns

Water supply type pavement with water retention function

Urban Development is Cooperation with the LocalityMasaaki NAKAMURA, Project Leader, Development Project Department, Urban Development Division

Six years ago, we started our studies for the scheme by talking to the local Urban Planning Association. By fusing the ideas of many people from the locality with the urban development know-how and the construction and environmental technologies of Taisei Corporation, a new image of the front of Ochanomizu Station was born. After opening, businessmen, students, families, and elderly gathered in Sola City Plaza. This really was the realization of “an environment vibrant with people.” Ochanomizu Sola City is one nucleus, and in the future it is expected that the Ochanomizu area will further develop.

Use of an unused resource

Use of unused energy

◎Watering the plants

Water heat sourceHeat pumpHeat exchanger

◎Water supply type pavement with water retention function◎Use as recycled water within building

Underground water flowing into Metro

Indoor air conditioning

Use of underground water fl owing into Metro

Integral louver type solar panel

Ocha Navigate

Historical information signGallery “kura”


1 Use of Underground Water around MetroWater fl owing into the Metro station facility is pumped up, and received and used in the building. This is the fi rst time that such a device has been used in an offi ce building in Tokyo. After fi ltering, the water is used as an air conditioning heat source (use of unused energy). In addition, the water is used to water the plants and as fl ushing water for the toilets (use of an unused resource).

2 Large Capacity Solar Power PanelsIntegral louver type solar power panels have been incorporated as concealed louver service balconies installed on the south side of every fl oor of the building. In offi ces in the center of the city, it is diffi cult to install large-scale solar power generation equipment on the site or on rooftops, but in Ochanomizu Sola City we have achieved the greatest capacity of an office building within Tokyo of 150 kW by installing about 6800 solar power modules on the building wall surface of about 2430 m².

3 Reuse of Existing PilesIn Ochanomizu Sola City, the piles of the existing building before renovation were reused. About 170 existing piles were reused, which is the largest scale of reuse of piles ever in Japan. This resulted in a reduction in the quantity of waste generated associated with refurbishment, and a major reduction in the CO2 emissions associated with piling construction compared with the case where new piles were installed.

Retention of Historical AssetsThe site where Ochanomizu Sola City was constructed is the location of the former residence of Yanosuke Iwasaki, second generation President of Mitsubishi Corporation in the middle of the Meiji era. A brick retaining wall remaining on site from the middle of the Meiji era was reused as a bench and a historical sign. Stone walls on Gunkanyama and Awajizaka were preserved and reused, preserving the memory of the landscape of the locality.Also, a store that was familiar to the local residents and artists as the “Awajicho Art Gallery,〞 which was completed in 1917 as a book distributers’ storage, was relocated and restored as the "Gallery Kura (Storage)."

Communication of the History and Culture of the Locality"Ocha Navigate" has been created on Sola City Plaza. This includes a "History Gallery" that introduces the history of the Ochanomizu area for each era through old documents and old photographs, and a “walking town/station” in which the walking spots are included on a database and it is possible to simply create an original walking map, etc., in order to introduce the history and culture of Ochanomizu.

Special Feature 3

Left: Sendai Trust TowerUpper: Kinoya-Ishinomaki Marine Products Misatomachi New PlantLower: MASKAR (Megawa Tsunami preventive refrigeration facility)


Creating a Society that is Strong Against DisastersAiming for a highly resilient societyAn important mission of the construction industry is to protect the safety of the people and to support the maintenance and restoration of functioning of society through buildings that can withstand unexpected disasters.Taisei Corporation contributes to building a strong society that can rapidly recover from various risks, based on the concept of “resilience.”

1 Taisin-net, a comprehensive information site for measures against earthquakes from the viewpoint of business continuity2 Public seminar on earthquake measures3 Earthquake disaster exhibition held to share the lessons of 3/11 with the public

1 22 3

PlanRisk communication

CheckEvaluation, verifi cation

Improvement

F・ReviewFacility review

DoActImplement measures

F・PolicyFacility policy

F・StrategyFacility strategy

Management activity cycle

ImFM activity cycle

Response to disaster risk


As the importance of building for a safe and secure society is debated again, attention is focusing on the concept of “resilience.” Resilience is the capacity to rapidly return to the normal level after damage due to a disaster.Taisei Corporation takes it one step further, and perceives that it is necessary for resilience to include "capacity for prevention" in addition to “capacity for recovery.” It is considered important to prepare in advance to minimize disaster damage as much as possible, as well as to recover functions that have been reduced or stopped in a short period of time.In order to maintain the function of a building or equipment when a disaster occurs, it is important to formulate a facility strategy in accordance with the customer's management vision, and to implement (PDCA) FM activities* that strongly refl ect a specifi c plan.As shown in the diagram below, operating the cycles of both the customer's management activities and the FM activities assists in deepening the risk communication of the two, and by developing and providing various risk measure technologies at the planning stage, the customer's resilience is increased.

* Facility management: Operation and management of a facility

Total Partner for Risk Measures

The Resilience of Society is Raised by a Shared Recognition of Risks

Optimizing the Ideas of both Facility Managers and Users

Earthquake risk is an unavoidable major natural disaster risk in Japan. In order to increase resilience, it is necessary that society as a whole has a shared recognition of the risk.We operate the website “Taisin-net*” as an information platform for measures against earthquakes, as a p lace for shar ing r isk s f rom this point of view, and we hold public seminars at various times throughout the year.

In order to use a facility for a long time, it is necessary to optimize both facility strategy and policy, which var y depending on the business environment, and the FM requirements based on the needs of the facility users. In order to realize this, we assist not only with risk management, but also venture into the fi eld of BCM,* and assist in o p t im i z i n g i d e a s f r om t h e management point of view and the ideas of the facility users.

Shinji ONO, Manager, Life Cycle Care Promotion Department, Marketing & Sales Promotion Division

Yusuke SEKIYAMA,Manager, Life Cycle Care Promotion Department, Marketing & Sales Promotion Division* http://taisin-net.com * Business Continuity Management

Customer's management vision Taisei CorporationCo-creation process of the customer and Taisei Corporation to increase resilience

● Assist the customer implementing the two activity cycles (management activities and FM activities)

● By overlapping the two activity cycles of the customer, risk communication is vitalized, and the customer's ideas are "optimized.”

Special Feature 3

“T-Respo Structural Method” / Shinjuku Center Building

Cross-section through tsunami protection measure building

Core that functions as a tsunami shelter (toilets, stairs)

Concrete walls that can withstand tsunami pressure loads

Services spaceEvacuation space

Damage is allowed to the curtain wall and columns

Drifting materials are stopped

Top slab that can resist scouring

Seismic risk evaluation

Seismic loss function

Seismic hazardEvent tree analysis

Information regarding the building under consideration• Structural properties of the building• Building equipment and system• Valuation information, etc.

Seismic hazard information for the area under consideration• Seismic environment of the surrounding area• Composition of the surface soils

Seismic Risk Evaluation Conceptual Diagram


“T-Buff er” to Fend Off Tsunami Risk

”T-Respo Structural Method” Protects Against Long Period Seismic Motions

Seismic Risk Management Taking the Order of Priority of Risk Measures into Consideration

Taisei Corporation has prepared various solutions to contribute to building a highly resilient society that can rapidly recover, by preventing disasters and minimizing damage, based on our wide-ranging experience and researches. Here, we introduce highly practical technologies and know-how corresponding to disaster risks, to match a customer's individual business strategy.

The tsunami protection measure building "T-Buf fer" has been developed based on tsunami simulation technology. The structural columns on the outer periphery of the building form a "buff er zone,” which prevent damage to the life critical core structure by absorbing the wave pressure of the tsunami and the impact force of the debris, and by using waterproof doors, etc., in the wall openings of the core, the building can function as a tsunami shelter. In November 2012, a tsunami protection measure deep freeze cold storage facility (see MASKAR P17) that is capable of withstanding a level 1 tsunami (the level of tsunami that is postulated to occur at a frequency of once in 100 years) was completed in Onagawa Town, Miyagi Prefecture, partially realizing this concept.

It is said that large scale predicted earthquakes such as the Tokai, Tonankai, and Nankai earthquakes, etc., will have long period seismic motions. There is a possibility of resonance between some ultra-high rise buildings and long period seismic motions, and there are concerns over the occurrence of damage to system equipment if large oscillations continue for a long period of time. Taisei Corporation has developed the “T-Respo Structural Method” as a measure against long period, long duration seismic motions. This reduces the oscillations during an earthquake without reinforcing the columns or beams by using displacement dependent type oil dampers, etc. This was introduced to the Shinjuku Center Building in 2009, and its vibration control eff ect was verifi ed in the 2011 Great East Japan Earthquake.

It is necessary that measures against earthquakes apply a strategic order of priority. Taisei quantitatively evaluates the seismic risk of a building using the seismic risk method (SRM). The building under consideration is surveyed, damage to the building itself or to the system equipment is postulated, and the amount of the predicted damage is calculated as the seismic risk . A program has been developed that is capable of simply performing this calculation on a personal computer. In this way, material is produced for making decisions, such as where in a facility should be strengthened in priority, and what strengthening method should be adopted, which leads to seismic measures having a high investment aff ect.

Various solutions for achieving business continuity

Outline of the system Mechanism for deciding to shut down equipment using on site seismometers

Rack vibration control system

Rack vibration control unit

“T-RESQ F” for Support of Emergency Response

“Rack Vibration Control” for Rapid Restoration of the Supply Chain

Innovation in Logistics and Creating Highly Resilient FacilitiesWhen Taisei plans a facility, the optimum measures are proposed from the aspect of business continuity, considering not only the building and the building equipment, but also the production system. Currently we are working on further strengthening our facility diagnosis method in conjunction with a university.Also, we devise the most appropriate schemes for logistics, not only for productivity and economics, but also for a high capacity to recover operation after a disaster such as an earthquake, utilizing our capabilities derived from our extensive experience of logistics facility construction and logistics consulting, with an emphasis on the stable supply of products and materials in the supply chain. In addition we have entered the 3PL* business in which we take responsibility for logistics operation, achieving major effi ciencies and cost reductions in transport through “joint logistics.”Logistics is a strategic task that is important for company management. Through diff erentiation of business continuity in the logistics area, a company gains competitive advantage, and produces a new aspect of management. We propose various innovations in logistics, to construct highly resilient facilities.

* 3PL (Third Party Logistics): A service in which the lump-sum contract base logistics function of the user company is outsourced

Hiroyuki KURABAYASHI, Deputy General Manager, Engineering Division

“T-RESQ-F” (Taisei Real-time Earthquake Disaster Prevention System) is technology for shutting off equipment in an emergency within an industrial facility before the earthquake oscillations start, used in combination with the Japan Meteorological Agency's emergency earthquake warnings. Seismometers are installed within local sites such as factories, etc., and customization is carried out taking into account the ground of the site and the characteristics of the building, based on the accumulated seismic waves that have arrived and technology for analyzing the building structure. By predicting the size of the oscillations with high accuracy, it is possible to take rapid and immediate response to an emergency by automatically shutting down the equipment. This strengthens the response to inland earthquakes for which the emergency earthquake warning may not be on time.

In the Great East Japan Earthquake, automated warehouses that are logistic center for distribution were subjected to damage. Even though the racks themselves did not suffer much damage, there were many cases of damage to parts of the rack transport systems resulting in the goods falling off the racks. The supply chain of products was also aff ected by the long term stoppage of automated warehouses. To solve this problem, in December 2012 a rack vibration control unit was developed to reduce the occurrence of goods falling off in automated warehouses. The unit is eff ective even in strong earthquakes of seismic intensity 6 (Japanese scale). The unit can be simply installed in existing automated warehouses at low cost and in a short period of time, and operations can continue immediately after an earthquake without stoppage.

Prediction of magnitude of S wave

Seismometer

Analysis server

Public announcement

Control of manufacturing facilities

P-wave (primary wave)

S-wave (secondary wave)

Time margin

P-wave detected

S-wave arrival

Manufacturing

facilities

shut down


Closed Type High-rise Building Demolition Method “TECOREP” (Taisei ECOlogical REProduction System)This is an environmentally-friendly efficient high-rise building demolition system in which high rise building is demolished from top to bottom. This has already been applied to the demolition of two high-rise buildings more than 100 m high in Tokyo, such as the Grand Prince Hotel Akasaka (closed 2011).

Research and Development Activities

Developing and Providing Technologies for Solving Society’s Problems, Aiming for Innovative Technological Development

Measures against LiquefactionAn in-ground wide blade ground improvement method, and a groundwater lowering method to lower the groundwater level h a v e b e e n d e v e l o p e d a s measures against liquefaction that can be appl ied to the ground below existing buildings such as in residential areas, etc. A verifi cation test has been carried out a t Urayasu C i t y where liquefaction damage occurred in the Great East Japan Earthquake.

Eff ective Use of Concrete RubbleIn order to process large quantities of concrete rubble generated in a disastrous earthquake in a short period of time, a method of producing and applying a hardened cement material was developed that can ensure the required strength and quality of the structure, while permitting variation in the aggregates and inclusion of timber fragments. This was adopted by the Ministry of Land, Infrastructure, Transport and Tourism's public tender “Construction Technology Research and Deve lopment Assistance System”.

Vibration Control System for Automated Warehouse RacksThe performance of a vibration control system for automated ware-house racks was verifi ed, and the eff ect of reducing goods falling from the r ack s dur ing an ear thquake was con-firmed. Using this sys-tem, it is possible to re-duce the vibrations of automated warehouse racks in a strong seismic intensity 6* earthquake, and i t is poss ib le to place and remove goods without stopping the system.

Unmanned Construction SystemThere has been a demand in recent years for the introduction of unmanned construction technology for use in dangerous areas, etc. Taisei Corporation has developed a sprayed asbestos unmanned removal and recovery system using a remote-controlled robot under commission from the New Energy and Industrial Technology Development Organization (NEDO). Using the results of this development, unmanned operations can be rapidly and safely carried out even in severe environments.

300N/mm2 Class Ultra-high Strength Concrete “Taisei Super-concrete”Using ultra-high strength concrete, it is possible to reduce the number of columns supporting a building, to make them more slender, and to realize comfortable and easy to use living spaces. Seismic resistance tests on very narrow columns using Taisei Super-concrete, the world's strongest concrete, have been carried out at the Taisei Technology Center. The plaza in “Ochanomizu Solar City” uses 300N/mm2 class u l t r a -h igh s t rength concrete, producing a space with a feeling of openness.

Structural Construction Method

Materials

Disaster Prevention

Disaster Prevention



*Japanese scale


To further enhance the research and development system and to strengthen the performance of Taisei Corporation, facility enhancement is being carried out progressively over fi ve years which started in July 2012.Since the Great East Japan Earthquake, the construction market has suddenly focused on disaster prevention and energy fields, and higher performance higher added value new technologies are demanded.

The facility enhancement will include new facilities for development of new technologies, to create new technologies in response to these needs. These new capabilities of the Taisei Technology Center will be fully utilized in the future to promote innovative technological development to contribute towards the reduction in global environmental load and to build a nation that is strengthened against natural disasters.

Taisei Technology Center started a fi ve-year facility enhance-ment plan, aimed at innovative technological development

This is a multi-purpose test facil it y protected by an electromagnetic shield. Technologies will be developed for remote unmanned construction using construction robots for environments that humans cannot enter, and for the information technology for construction for the future, in order to contribute to the mechanization, laborsaving, and work effi ciency for working in dangerous areas and measures against disasters.

Construction ICT Verifi cation BuildingZEB Verifi cation Building

Clean Technology Verifi cation Facility Tsunami Wave Generation Device

Construction ICT Verifi cation Building, inside image

Energy effi ciency technologies developed by the company, technologies for use of renewable energies, and energy control technologies that are effective for converting urban offices into ze ro ene rgy bu i ld ings (ZEB) a re be ing introduced. By ver i f y ing these advanced technologies to create environments that are convenient for work, smart offices and smart communities can be realized in response to the needs of clients.

ZEB Verifi cation Building

The “T-Flexible Cleanroom” in which the air flow in the clean space, the degree of air cleanliness, and the humidity that can be freely set will be introduced into this building. Clean room technologies will be developed to achieve low cost and energy e f f i c i e n c y , i n response to the various needs of clients.

We are participating in the YSCP project aimed at realizing a “smart city” with optimum energy use over the whole area and have energy available during times of disaster. Within the Taisei Technology Center, in conjunction with a local energy management system, the building energy management is being verified to achieve both efficient energy use and comfort (jointly implemented with Toshiba Corporation).

Using this device makes it possible to reproduce large-scale tsunamis and determine with high accuracy the behavior and eff ect of tsunamis. In the future this will be used in combination with the company’s tsunami simulation technology to design disaster prevention f a c i l i t i e s su ch a s coastal protection, etc., to propose BCPs for industrial facilities along coasts, etc., and for safety evaluation of structures.

Clean Technology Verifi cation Facility, inside image Tsunami Wave Generation Device

Topic 1

Participation in Yokohama Smart City Project (YSCP)*

Topic 2

* This project is a joint initiative of Yokohama city with private companies, and has been selected by the Ministry of Economy, Trade and Industry's "Next-generation Energy and Social System Verifi cation Area".

Use

Possible smart BEMS

Create Accumulate

Integrated BEMS


Improvement in the Quality of Infrastructure Development through the Use of ICTTaisei Rotec CorporationThe main business fi elds of Taisei Rotec are road paving, civil engineering construction, manufacture of composite materials, and recycling. As an early initiative in the “use of Information and Communication Technology in construction” in which the Ministry of Land, Infrastructure, Transport and Tourism is promoting standardization, the company has developed a three-dimensional machine control system for road pavement construction. This system aims to reduce the load on site managers by introducing an automatic control system that is capable of carrying out construction while correcting to millimeter accuracy through the incorporation of laser technology.By realizing high-effi ciency and high-accuracy construction through the use of ICT (Information and Communication Technology), quality road pavement can be ensured, construction periods reduced, and CO2 emissions reduced.

Creating New Value for Old CondominiumsTaisei-Yuraku Real Estate Co., Ltd.Taisei-Yuraku Real Estate is engaged in a wide range of activities from housing projects for individuals to real estate and facility management for corporations. They provide a one-stop center for all services related to land and buildings ranging from real estate development to management.For the reconstruction of “Ober Ofuna Marks Court,” Taisei-Yuraku was engaged to reach an agreement with the residents as well as fi nding new housing for those who wished to change residence; and in conjunction with other group companies, provided delicate support for individual problems. The reconstruction was realized using an equal value exchange system. This was not just a renewal of an old condominium, but the creation of value in accordance with the times, which contributed to living for people.

Group Company Activities

Responding to the various needs of society by providing new value based on reliable quality.

* PC construction: An industrialization method in which the fl oors or walls of a building are produced in the company's factory, transported to the construction site, and assembled on site. Factory production of wall type PC (precast reinforced concrete)

Ober Ofuna Marks Court after reconstruction (top photo) and before reconstruction (bottom photo)

Providing High Quality Condominiums with Excellent Seismic ResistanceTaisei U-LEC Co., Ltd.Taisei U-LEC is a condominium builder with more than 50 years experience and is a pioneer in the wall type precast reinforced concrete (PC) construction method.* High-strength concrete PC slabs produced in the company’s own factory (ISO 9001 certifi ca-tion obtained) have high accuracy and stable quality. In addition, high seismic resis-tance is exhibited by distributing the external earthquake forces in a balanced manner in a box type structure having robust walls and fl oors.In the Great East Japan Earthquake, the PC structures constructed by the company have not sustained any damages, and this result has been highly evaluated. Taisei U-LEC has completed construction of the fi rst disaster public housing.


Providing People-friendly and Environmen-tally-friendly Comfortable EnvironmentsTaisei Setsubi Co., Ltd.Taisei Setsubi is a general building equipment work company with three busi-ness areas: air-conditioning, plumbing, and electrical work.The company is promoting the use of cardboard air conditioning and ventila-tion ducts that use recycled paper and aluminum foil as raw materials (Corru-Air-duct*), provide energy diagnosis in accordance with building use and required function, as well as providing the optimum systems for achieving energy effi -ciency and resource effi ciency, such as individual air conditioning, pump invert-er control, solar power generation, etc.Taisei Setsubi has created comfortable life environment with its abundant “know-hows” in building equipment work.

* Corru-Airduct (Corrugated Cardboard Airduct): Product jointly developed by Taisei Corporation, Rengo Co., Ltd., and Kurimoto Ltd.

Detached housing to order: Palcon Max

Schematic illustration of building energy effi ciency technologies

Cooling tower (free cooling)Solar power generation

Individual air conditioning system

CO2 coolant heat pump

Water-saving fittings

VAV system

Total heat exchanger

Outside airExhaust

BEMS

Sunlight shielding film

High efficiency light fittingsCore Air Duct

CO2 control external air room cooling

Daylight sensors

Fan inverter controlAir conditioner

Electrical Heat source

Gas

Cogeneration systemUse of ground heat

Water storage tank

Pump inverter control

High efficiency chiller

High efficiency transformer

Places where “Post-Head-bar construction method” can be applied

Locations where Post-Head-bar is appliedLocations where Post-Head-bar is applied

Bridge abutments

Railway tunnels

Road tunnels Sewage treatment facilities, water treatment facilities

Dams, sluice gates

Before reinforcement

After reinforcement

Occurrence of out-of-plane shear cracking → failure

“Post-Head-bar” resists

shear failure

“

Providing Comfortable Detached Housing that is Strong against DisastersTaisei Housing CorporationTaisei Housing has developed the wall type reinforced concrete housing brand “Palcon” by applying Taisei ultra high-rise building construction technology to detached housing. Since 1969, disaster resistant detached housing has been sold under the brand “Palcon.” The “Palcon Max” has currently been introduced, which is a further evolution of “Palcon” as a result of verifi cation of disaster resis-tant buildings in many disasters. “Palcon Max” achieves both comfortable living space and a strong structure.By promoting detached housing that is safe and secure and comfortable for living for a long period of time, the company is contributing to building a society that is strong in disasters.

Renewal Works of Infrastructure with Unique Seismic Reinforcement TechnologiesSeiwa Renewal Works Co., Ltd.Seiwa Renewal Works is a general engineering company that is engaged mainly in foundation, mechanical engineering, environment, and renewal projects of infrastructure.As aging of infrastructures becomes a social problem, we conduct seismic rein-forcement projects using “Post-Head-bar construction method*” which is a new reinforcing method to strengthen shear capacity of RC members and can be applied to various type of existing underground concrete structures, such as tunnels, reservoirs of sewage and fi ltration plants, etc, as well as massive struc-tures constructed over the ground such as sluice gates, abutments of bridges, etc. We are contributing to building safe and secure social infrastructures by our activities in infrastructure renewal works.* Post-Head-bar construction method: A post shear reinforcing method using shear reinforcing bars with a steel plate attached functionality, they can then be used for seismic reinforcement of concrete structures, even when those members are thin and hard to fi nd enough space for conventional anchoring. The method has been developed by Taisei Corporation and is implemented by Seiwa Renewal Works.


★ Completed construction ＊ Established

Introduction to our Achievements

In 2013, 140 Years Have Passed since the Founding of Taisei Corporation

History of the Taisei Group of Companies

The establishment of Taisei Corporation, which is the core of the Taisei Group, was started by Kihachiro Okura in 1873 of Okura-gumi Shokai, which corresponds to today’s group. Since then the history of the company has been guided by the concept of contributing to the development of society through a safe and comfortable living environment. The founder’s spirit still lives on our business activities in order to construct a prosperous future.

1873 ＊ Kihachiro Okura established Okuragumi Shokai in Ginza ❶★ Ginza Renga Gai (Ginza Bricktown)

1882 Arc lighting lit in front of Okuragumi Shokai in Ginza ❷1883 ★ Rokumeikan ❸1887 ＊ Nippon Doboku Co., Ltd.

(Japan’s fi rst construction company)1890 ＊ Lake Biwa Lock and Tunnel ❹1917 ＊ Okura Doboku Gumi Corporation

(fi rst incorporated company in the Japanese construction industry)1923 ＊ New Imperial Hotel ❺1927 ★ The Tokyo Underground Railroad

(Japan’s fi rst subway) ❻ 1939 Special Japanese Pavilion at the Sun Francisco Exposition1946 Changed name to Taisei Corporation1953 ＊ Yuraku Real Estate Co., Ltd.

(currently Taisei ‒Yuraku Real Estate Co.,Ltd.)1955 ★ The terminal building at Tokyo International Airport (Haneda)

1956 ＊ Seiwa Machinery Co., Ltd.(currently Seiwa Renewal Works Co., Ltd.)

1957 Listed on the Tokyo Stock Exchange (fi rst company in the construction industry to be listed)

1958 ★ National Stadium ❼1960 ＊ Technical research center (currently Technology Center)1961 ＊ Taisei Road Construction Co., Ltd.

(currently Taisei Rotec Corporation)1962 ★ Hotel Indonesia (the fi rst Taisei’s overseas construction

since WWII)1963 ＊ Taisei Prefab Construction Co., Ltd.

(currently Taisei U-LEC Co., Ltd.)1964 ★ The main building of Hotel New Otani

(fi rst high-rise building in Japan)1965 ＊ Taiko Setsubi Co., Ltd. (currently Taisei Setsubi Co., Ltd.)

★ Mt. Fuji Weather Station ❽1969 ＊ The Housing Division (Currently Taisei housing corporation)1971 ＊ Taisei Service, Inc. (currently Taisei ‒Yuraku Real Estate Co.,Ltd.)

2 Ginza Arc LightsArc lighting, the fi rst electrical street lighting in Japan, on Ginza Dori shopping street in Tokyo

1873 1882 1923

1 The founder, Kihachiro Okura. Throughout the Meiji and Taisho eras he founded several companies that contributed to the modernization of Japan

5 New Imperial HotelThe first real Western style hotel in Japan. The designer was the world famous architect, Frank Lloyd Wright

1890

3 RokumeikanBeautiful western-style building. It dominated diplomatic and social intercourse in the Meiji era.

1927

6 Tokyo’s Ginza Subway Line Japan’s f irst subway connecting Ueno to Asakusa.

4 Lake Biwa Lock and Tunnel A modern development project to use the water of Lake Biwa in a canal and for power generation, etc.


1979 ★ Shinjuku Center Building (transferred headquarters to Shinjuku Center Building)

1987 Opened the Grand Seto Bridge, which links Honshu with Shikoku1988 ★ Seikan Tunnel ❾

(Japan’s longest underground tunnel)★ Chirata Hydroelectric Power Station

1991 ★ Tokyo Metropolitan Government Main Building No. 11993 ★ The Landmark Tower, Yokohama

(tallest building in Japan at 296 m)1997 ★ New Kuala Lumpur International Airport in Malaysia

＊ Taisei Housing Corporation1999 ★ Subaru Telescope, Hawaii

★ Expressway 2, Taiwan2000 ★ JR Central Towers2001 ★ Sapporo Dome 10

★ Ilo Coal-Fired Power Plant, in Peru 2004 ★ Chubu Central International Airport

★ Kyushu National Museum

8 Mt. Fuji Weather Station One of Japan’s main meteorological observing stations. It was constructed under harsh weath-er conditions at the highest altitude in Japan.

1958 1965 1988 2001 2009 2012

10 Sapporo Dome Large dome constructed for the 2002 World Cup. With its hovering sliding pitch stage, the dome can host indoor football and baseball games

12 JP TowerThis is a seismic isolated building that preserves part of the old Tokyo Station Central Post Offi ce on a block that faces Tokyo Station Plaza

11 Djibouti Kempinski HotelThis remarkable projec t was the design and construction of a high-class five-star hotel in just nine months

7 National StadiumThis was the first major athletic stadium in Japan, constructed for the third Asian Games. After modification in 1963, it was used as the main stadium of the Tokyo Olympics

9 Seikan TunnelJapan’s longest ra i lway tunnel connecting Hakodate to Aomori by land. It took over 20 years to complete the tunnel.

2006 ★ UNIMAS (University Malaysia Sarawak) Development Project★ Bangkok Industrial Ring Road, Cable-stayed Bridges

2007 ★ Chubetsu Dam 2008 ★ The Palm Jumeirah Submarine Tunnel, Dubai

★ Bali Bach Conservation Project, Package IV: Shore Protection Work for Kuta Beach

★ Coal Unloading jetty and Connecting Bridge, Taiwan2009 ★ Djibouti Kempinski Hotel 11

★ Jimah Coal Fired Power Station, Malaysia★ Al Mas Tower, Dubai

2010 ★ Improvement of Kararo-Wadh Section of National Highway N-25, Pakistan

2011 ★ Sapporo Vietnam Limited Brewery Factory2012 ★ JP Tower 12

＊ Taisei-Yuraku Real Estate Co., Ltd.2013 Celebrated 140th Anniversary since establishment

★ New Doha International Airport, Qatar


Of the total length of 9.4 km of the Metropolitan Expressway Central Circular Route Shinagawa Line, about 8 km is a tunnel. In order to complete this long tunnel in a short period of time, excavation with a single shield machine that is unprecedented in the world is being carried out. With the completion of the Shinagawa Line, the whole Central Circular Route will be opened, and this is expected to make a major contribution to solving traffi c congestion on the Metropolitan Expressway.

Metropolitan Expressway Tunnel, Contributing to Solving the City’s Traffi c Congestion

Civil EngineeringCreating social infrastructure that supports people’s lives and industry.Here we introduce some projects such as tunnels, bridges, and dams, etc. recently completed by Taisei Corporation.

Metropolitan Expressway Central Circular Route Shinagawa LineClient : Metropolitan Expressway Company Limited, TokyoDesign : Tokyo Metropolitan GovernmentScheduled completion

: March 2013

Location : Yashio, Shinagawa-ku to Aobadai, Meguro-ku, Tokyo


This jetty extends 2.2 km off shore, and was constructed to provide docking and unloading capability for coal ships of up to 150,000 dwt as well as transport facilities for Taiwan Power Company’s coal-fi red power plant outside Kaohsiung city. This large-scale jetty construction was undertaken in Taiwan’s coastal area of typhoon-prone seas, requiring full implementa-tion of Taisei’s most advanced marine engineering know-how.

This project is the refurbishment of a total length of 96 km of highway, part of National Route 25 connecting Karachi in Pakistan with Afghanistan. The development of transport infra-structure with Japanese grant aid cooperation contributes to the economic growth developing countries, to reduction of poverty, improvement in law and order, etc.

Taisei constructed this pair of steel and concrete long-span hybrid cable-stayed bridges across the Chao Phraya River. These bridges form part of the Industrial Ring Road that connects the Center of Bangkok to the outlying districts. The bridges contribute to eco-nomic development in the area by signifi cantly shortening trans-port time between the southern industrial district and the city of Bangkok, where goods previously had to be transported by ferry.

Artifi cial beach nourishment work was carried out on the Indonesian island of Bali to protect the sand beach in Kuta district from erosion and simultaneously safeguard the landscape and this major tourism resource. Shore protection was performed by evenly laying sand taken from the seabed and removing unnecessary sea banks and tetrapods. This envi-ronmental project also transplanted corals within the reef (35,000 m2) as part of an environmental conservation measure. At present, the lively beach is attracting many tourists and local residents.

Improvement of Kararo ‒ Wadh Section of National Highway N-25Client : National Highway Authority (NHA)Design : INGEROSEC Corporation. Nippon Koei Co., Ltd. JVCompletion : December 2010Location : Balochistan, Islamic Republic of Pakistan

Coal Unloading Jetty and Connecting BridgeClient : Taiwan Power CompanyDesign : Union-Tech Engineering Consultants Co.Completion : April 2008Location : No. 125, Minzhi Rd., Qieding Dist., Kaohsiung City 852, Taiwan

Bangkok Industrial Ring Road, Cable-stayed BridgesClient : Ministry of Transport, Kingdom of ThailandDesign : Mott MacDonald JVCompletion : August 2006Location : Prapadaeng, Samutprakarn, Bangkok City, Kingdom of Thailand

Bali Beach Conservation Project, Package IV:Shore Protection Works for Kuta BeachClient : Ministry of Public Works of IndonesiaDesign : Nippon Koei Co., Ltd. JVCompletion : December 2008Location : Kuta District, Bali, Republic of Indonesia

Contributing to a secure power supply in Taiwan through the construction of an enormous jetty extending 2 km off shore

Improvement of Road Infrastructure in Developing Countries

Kingdom of Thailand’s fi rst twin cable-stayed bridges relieving traffi c congestion

Bali Beach Conservation Project including protection of corals


The Hokuriku Shinkansen (between Nagano and Kanazawa) is in the fi nal stages scheduled for completion at the end of 2014. Taisei has constructed a 4-span, 428 m long PC extradosed bridge over the Jinzu River. The construction was constructed safely under severe conditions, with a conventional railway line running beside it.

A large tunnel is being constructed in bedrock 180 m below ground, to create the world’s largest water sealed underground bedrock stockpiling base in which liquefi ed petroleum gas (PLG) is contained by the groundwater pressure. This space will store 450,000 tons of the 1.5 million tons storage that is planned in the fundamental energy plan.

This is a multi-purpose dam constructed for water supply, supply of irrigation water, and fl ood control on the Okukubi River that fl ows through the eastern part of Okinawa Prefecture. This was the fi rst time that the “CSG construction method*” was adopted in Japan, through which cost reduction and decrease in the environmental load was achieved by eff ectively using the materials that could be obtained locally.

This is an above ground LNG tank constructed using the “DUAL PC dike” developed by Taisei Corporation. The tank capacity, 180,000 kL, is the largest in Japan; and in 2013, two LNG tanks were completed by the “DUAL PC dike” method.

Hokuriku Shinkansen, Jinzu River BridgeClient : Japan Railway Construction, Transport, and Technology AgencyDesign : Tonichi Engineering Consultants, Inc.Completion : October 2012Location : Toyama City, Toyama Prefecture

Namikata National LPG Stockpiling BaseClient : Japan Oil, Gas and Metals National CorporationDesign : J-Power, Mitsubishi Materials, JX Nippon Exploration and Develop-

ment Co., Ltd. Joint VentureCompletion : March 2013Location : Namikata, Imabari City, Ehime Prefecture

Okukubi DamClient : Development and Construction Department, Okinawa General

Bureau, Cabinet Offi ceDesign / Associated Consulting

: Client / Nippon Koei / Crearia Inc. / Public Association for Construction Services, Okinawa Region

Completion : March 2013Location : Kin, Kunigami-gun, Okinawa Prefecture

Kawagoe Thermal Power Station LNG FacilityClient : Chubu Electric Power Company, Inc.Design : Taisei CorporationCompletion : March 2013Location : Kawagoe, Mie-gun, Mie Prefecture

Completion of a Diffi cult and Challenging Construction Work for the Opening of the Hokuriku Shinkansen

Supporting a Pillar of Japanese Energy Policy

Adoption of New Construction Method to Reduce the Environmental Load Dam

Completion of LNG Tank by New Construction Method

* A construction method in which cement is added to and mixed with locally available materials (sand, gravel, etc.), which is then leveled and compacted.

* A new structural shape intermediate between a cable-stayed bridge and a girder bridge


Building ConstructionWe provide a new platform born from the capability of designing in accordance with the client’s needs, advanced technical capacity, culture, and industrial trends. Here, we introduce some projects recently undertaken and completed by Taisei Corporation, including airports, office buildings, hospitals, schools, amusement facilities, and factories.

This is a new airport planned in response to the increasing number of passengers as result of the rapid economic develop-ment of Qatar, with the aim of becoming a major regionl hub airport connecting Europe, Africa and Asia. The enormous ter-minal facilities with a total fl oor area of 490,000 m2 is the largest ever undertaken by the company since its founding. The know-how we have accumulated from the many airports constructed in the past has led to the success of this project.

New Doha International AirportClient : New Doha International Airport Steering CommitteeDesign : HOK (Hellmuth, Obata, Kassabaum)Completion : March 2013Location : Doha City, Qatar

The Birth of a New Hub Airport built to the World’s Highest Standards in Rapidly Growing Qatar


Taisei’s wealth of experience and unique know-how in design and construction is showcased in this large-scale power station in Malaysia.

This fi ve-star hotel was constructed in the city of Djibouti, the capital of the Republic of Djibouti in eastern Africa. It was designed and built in the remarkably short time of only nine months, fi nished in time for an important international conference for the leaders of the State Summit of The Common Market for Eastern and Southern Africa (COMESA).

With 68 fl oors rising up to 360 m above ground level, the Al Mas Tower has become a landmark in the Jumeirah Lake Tower development area in Dubai.

A high-rise apartment building located in the heart of Taiwan’s third largest city Taichung has gained prominence as a high-class apartment building with a seismic base-isolated structure.

Jimah Coal Fired Power StationClient : Sumitomo CorporationDesign : Taisei, IHI, ToshibaCompletion : June 2009

Location : Negeri Sembilan, Malaysia

Djibouti Palace Kempinski HotelClient : Nakheel PropertiesDesign : Taisei CorporationCompletion : November 2008Location : Djibouti, Republic of Djibouti

Apartment Building in TaiwanClient : Highwealth Construction CorporationDesign : Darong Architects and Planners Completion : April 2011Location : Taichung, Taiwan

Al Mas TowerClient : Nakheel PropertiesDesign : WS Atkins & Partners Overseas Completion : December 2009Location : Dubai, United Arab Emirates

700,000 KW 2 units power station that provides electricity to the metropolitan area

A luxury hotel completed in just nine months

A new high-rise building with a height of 360 m

Seismic base-isolated high-rise apartment building designed to provide greater safety for more people


An overseas brewery for the Sapporo Group has been constructed in the outskirts of Ho Chi Minh City, Long An Province, in the south of Vietnam. Construction of this brewery with an annual produc-tion capacity of 40,000 kL was completed in a short period of time by utilizing our construction experience in Vietnam.

This project was the construction of a headquarters building for a company engaged in the outdoor business such as camping equipment, etc. On the enormous site that can be used as a camping ground, an offi ce, a factory, and a store were arranged in a stepped formation in accordance with the gently sloping topography. The entire facility is covered by a large concrete roof 150 m long, and the height of the building was kept low so as not to detract from the magnifi cent landscape.

A high grade building has been born in the Tamachi area in central Tokyo surrounded by water and green. This is a high accuracy, high quality building in which attention has been paid to the accuracy control of the structural steel system, to realize a space larger than 450 tsubo (1485 m²) with no columns, thereby providing users with spaces that have a high degree of freedom. The curtain wall on the side of the building transmits the beautiful surrounding scenery without distortion.

We assisted in the redevelopment of a large site of about 28,956 m2, the site of the former Sony Headquarters in Gotenyama, Tokyo, where the Ieyasu family palace and the mansions of many daimyo (feudal lord) residences were once located, and even today is a quiet residential area. The development included an office building with the largest standard floor area in Japan, condominiums, and a park. The buildings are of medium- and low-rise for continuity with the rich green surrounding environment, thereby producing a human scale development.

Sapporo Vietnam Limited Brewery FactoryClient : Sapporo Vietnam Limted.Design : FOODTECHCompletion : November 2011

Location : Long An Province, Vietnam

Snow Peak Headquarters BuildingClient : Snow Peak Inc.Design : Taisei CorporationCompletion : April 2011Location : Nakanohara, Sanjo, Niigata Prefecture

Garden City Shinagawa GotenyamaClient : Sekisui House Ltd.Design : Nikken Sekkei and Taisei CorporationCompletion : February 2012Location : Kita Shinagawa, Shinagawa-ku, Tokyo

Sumitomo Realty Tamachi First BuildingClient : Sumitomo Realty & Development Co., Ltd.Design : Nikken Sekkei Ltd.Completion : April 2012Location : Shibaura, Minato-ku, Tokyo

Production of Japanese Beer in a Vietnamese Brewery

Factory, Headquarters Function, and Directly Operated Store Combined in Great Natural Location

Birth of Highly Accurate and High Quality Building

Creating a Green Landscape, and Recreating a Dignifi ed Streetscape

・ Recipient of award in the 11th “Rooftop, Wall Special Planting Competition”

・ Received the 2011 Good Design Award of the Director General of the Small and Medium Enterprise Agency

・ Received the 25th Nikkei Offi ce Award


Creating a Commercial Space Suitable for the Shonan Lifestyle

Supporting an Urban Aquarium with an Artifi cial Seawater Manufacturing System

A Base for Cultural Interchange that Keeps Alive the History of Ishikawa Prefecture

・ Received 12th Fujisawa Landscape Award

A large-scale commercial facility has been created adjacent to the new Tokyo Skytree. The aquarium within the facility uses the most advanced water treatment technology of which Taisei is proud. The facility uses skeleton and infi ll, taking into consider-ation restoration to its original condition and renewal.

Tokyo Skytree Town West Yard, Sumida AquariumClient : Tokyo Skytree Town West Yard: Tobu Railway Co., Ltd.

Sumida Aquarium: Orix Real Estate CorporationDesign : Nikken Sekkei Ltd. and Taisei CorporationCompletion : February 2012Location : Oshiage, Sumida-ku, Tokyo

This project is the largest shopping center in the Shonan area a sea-side town approx 80km south of Tokyo, and is the core of a redevelopment in front of Tsujidō Station on the JR Tokaido Line. It includes large open terraces providing continuity with the Shonan landscape. This creates circuit type lively spaces that promote new communication.

Terrace Mall ShonanClient : Special Purpose Company Shonan Tsujidō InvestmentDesign : Taisei CorporationCompletion : November 2011Location : Tsujidokandai, Fujisawa, Kanagawa Prefecture

In this project the old Ishikawa Prefectural Offi ce constructed in 1923 is preserved and refurbished, and regenerated as a cul-tural interchange facility for Ishikawa Prefecture on the sea-side of Japan. The old offi ce building was the fi rst modern building using reinforced concrete in Ishikawa Prefecture. A seismic isola-tion structure was introduced to the whole building during the renovation, and a modern space using curtain walls was added while retaining the historical appearance.

Ishikawa Prefecture Shinoki Cultural ComplexClient : Ishikawa PrefectureDesign : Yamashita Sekkei (refurbishment)Completion : March 2010Location : Hirosaka, Kanazawa, Ishikawa Prefecture

Completion of a New Symbol of the Restoration of FukushimaConstruction of a new hotel building has been completed with the construction period extended to about three months due to the Great East Japan Earthquake. Taisei was also responsible for restoration work on the damaged existing facility, which reopened for business in February 2012. This project deepened our bonds with the area, and was the driving force for bringing back activity to the area.

Spa Resort Hawaiians Monolith TowerClient : Joban Kosan Co., Ltd.Design : Taisei CorporationCompletion : November 2011Location : Jobanfujiwaramachi, Iwaki, Fukushima Prefecture

・Received the 21st BELCA Award Best Reform Award


・ Received the 23rd Tochigi Prefecture Marronnier Architectural and Landscape Award

・ Received Environment Design Section Award of the 10th Environment & Building Equipment Design Award

Supporting the Development of Radiation Therapy Facilities with Advanced Technology

A Production Facility Coexisting with a Lush Forest

Campus Proposed as Center for Local Exchange

Completion of the Most Advanced Pharmaceutical Manufacturing Facility

The fi rst heavy particle radiotherapy facility in Kyushu and the 4th in Japan has been constructed in front of the Shin-Tosu Station on the Kyushu Shinkansen. This is a joint industry/government/academia project, and is the fi rst privately-run heavy particle radiotherapy facility in Japan. This project was completed by applying is rich experience in construction of heavy particle cancer radiotherapy facility.

Kyushu International Heavy Particle Cancer Radiotherapy Facility (Saga Himat)Client : Kyushu Heavy Particle Facility Management, Public Interest

Incorporated Foundation Saga International Heavy Particle Cancer Radiotherapy Facility Foundation

Design : Nikken SekkeiCompletion : October 2012Location : Harakogamachi, Tosu City, Saga Prefecture

This project is a university campus that was planned as a base for urban planning. Functions that can be used for linking and cooperation with the locality, such as the event hall, food court, media lounge, etc., were identifi ed and concentrated on the lower levels and opened to the local residents. In addition, the campus space was created on a human scale to provide a feeling of familiarity by the use of arches.

Musashino University Ariake CampusClient : Musashino UniversityBasic Design : Nikken SekkeiDetailed design, construction management

: Taisei Corporation

Completion : January 2012Location : Ariake, Koto-ku, Tokyo

This is an investigational new drug manufacturing facility for solid drugs and injectable drugs, that complies with the latest regulations. This project was completed utilizing the pharmaceutical engineering technology of Taisei Corporation, who has the widest experience within Japan.

Takeda Pharmaceutical Company Ltd., Investigational New Drug Manufacturing FacilityClient : Takeda Pharmaceutical Company Ltd.Design : Taisei CorporationCompletion : November 2011Location : Yodogawa-ku, Osaka City, Osaka Prefecture

This is a base factory for a Western-style confectionary maker located in the forest belt of Nikko 100km north of Tokyo. The design incorporates the surrounding natural environment to the maximum extent, and a gentle landscape was created to produce the feeling of the beautiful landscape of Northern Sweden, from which the company name originated.

Yokumoku Crea Nikko FactoryClient : Yokumoku Crea K.K.Design : Taisei CorporationCompletion : May 2011Location : Aza Higashihara, Tsuchizawa, Nikko City, Tochigi Prefecture


A New Business Center in a Historical and Cultural Area

Real Estate DevelopmentWe provide profi table plans that utilize our know-how on a wide variety of project schemes, ranging from formulation of project plans, design, construction, management, and operation.Here we introduce a portion of our most recent development projects, including redevelopment projects to vitalize urban areas, PFI projects, etc.

This is a large multi-purpose building that includes offi ces, educational facilities, etc., developed in front of JR Ochanomizu Station in central Tokyo. Improvement using its characteristics of directly connecting to the Metro station and located in front of the JR station, a plaza is provided that is a gateway to the town. The new business center, to which the Special Urban Renaissance Districts system was applied, and the comfortable lively urban space were integrally created. The client was a special purpose company funded by Taisei Corporation and three other companies,* and Taisei was responsible for the development, design, and construction, and is also participating in the management and operation.

Ochanomizu Sola CityClient : SURUGADAIKAIHATSU TMKDesign : Taisei CorporationCompletion : March 2013Location : Chiyoda-ku, Tokyo

* Hulic Co., Ltd., Yasuda Real Estate Co., Ltd., Taisei-Yuraku Real Estate Co., Ltd.


Create a Lively Local Core Area

Providing the Value of “One Level Higher Security”

Development and Operation of Cultural Facility with Private Sector Know-how

A large scale multi-purpose facility has been created by the redevelopment at the North Exit of Sagami Ono Station south west of Tokyo as part of the vision to promote the commercial development of the city center of Sagamihara City. Since 1999, Taisei Corporation has been promoting this project together with the landowners as a joint project, and since 2007, Taisei has carried out the administrative bureau support work as project representative, construction work, etc.

Bono Sagami OnoClient : Sagami Ono Station West Side Area Redevelopment UnionDesign : Research Institute of Architecture (RIA)Completion : February 2013Location : Minami-ku, Sagamihara City, Kanagawa Prefecture

This is a condominium project that was selected by the Ministry of Land, Infrastructure, Transport and Tourism as a Long Term Good Housing Pioneering Model Project. Various technologies were introduced, such as higher seismic resistance and durability, improved changability of the living space and renewability of the services. The client was Taisei Corporation and Taisei-Yuraku Real Estate Co., Ltd., who comprehensively supervised the building design, construction, sales, operation, and management.

Yokohama Hakuraku ResidencesClient : Taisei Corporation, Taisei-Yuraku Real Estate Co., Ltd.Design : Taisei CorporationCompletion : September 2012Location : Kanagawa-ku, Yokohama City, Kanagawa Prefecture

This is a multi-purpose hall developed by Shizuoka City by the PFI method. The special purpose company in which Taisei Corporation invested not only designed and constructed the facility, but is also maintaining and operating the facility as the designated manager. This project has attracted great attention as it is rare in Japan for a cultural facility to utilize the creative capabilities of private companies.

Shizuoka City Shimizu Cultural Hall ̶ “Marinart”Client : Shimizu Cultural Project Support (K.K.)Design : Maki and Associates, and Taisei Corporation JVCompletion : April 2012Location : Shimizu-ku, Shizuoka City, Shizuoka Prefecture



TAISEI CORPORATION and Consolidated SubsidiariesYears Ended March 31, 2012 and 2013

Financial Data

Financial Highlights

Millions of Yen(except for per share fi gures)

Thousands of U.S. Dollars*

(except for per share fi gures)

2012 2013 2013 Change (%)Contract backlog at the beginning of the year ....................... ¥ 1,607,390 ¥ 1,663,458 $ 17,686,954 3.5 %New orders received during the year ...................................... 1,379,572 1,404,407 14,932,557 1.8 Net sales ..................................................................................... 1,323,504 1,416,496 15,061,095 7.0 Contract backlog at the end of the year .................................. ¥ 1,663,458 ¥ 1,651,369 $ 17,558,416 (0.7) %

Net income ................................................................................. ¥ 1,181 ¥ 20,051 $ 213,195 1,592.3 %Per share (in yen and dollars) ............................................... 1.04 17.60 0.187 1,592.3

Cash dividends applicable to the year .................................... 5,698 5,698 60,585 0.0 Per share (in yen and dollars) ............................................... 5.00 5.00 0.053 0.0

Net assets................................................................................... 292,602 343,300 3,650,187 17.3 Per share (in yen and dollars) ............................................... 255.60 299.84 3.188 17.3

Total assets ................................................................................ 1,494,696 1,543,095 16,407,177 3.2

* U.S. dollar amounts above and elsewhere in this Annual Report were translated from yen, for convenience only, at the rate of US $1 = ¥94.05,the approximate exchange rate at March 31, 2013.

Operating ResultsDuring the current term, the overall Japanese economy lacked strength as typifi ed by sluggish production and consumption mainly due to the slowdown of overseas economies and reactions to policy effects. In the second half of the fi scal year, however, the change of administration in Japan prompted the redressing of exchange rate levels and the recovery of stock prices, and this development and other factors combined to lead the Japanese economy to change its course and look for a road to recovery.

In the domestic construction market, the business environment continued to be harsh as the competition to win orders remained fi erce despite relatively strong demand.

Orders and salesFor the fi scal year ended March 31, 2013, orders stood at 1,404.4 billion yen, an increase of 1.8% year on year, due to rises in orders in the civil engineering business. Net sales in the year under review amounted to 1,416.4 billion yen, an increase of 7.0% year on year refl ecting increases in both the civil engineering and building construction businesses.

Operating income, ordinary income and net incomeOperating income in the fi scal year ended March 31, 2013 totaled 35.6 billion yen, a decrease of 2.4% year on year despite lower selling, general and administrative expenses, due to a decrease in gross profi t refl ecting deteriorating profi tability emerging from multiple large-scale construction profi ts. Ordinary income in the fi scal year ended March 31, 2013 stood at 35.0 billion yen, an increase of 15.9% year on year, refl ecting improvement in non-operating income stemming from elimination of foreign exchange losses and other such factors.

Net income for the fi scal year ended March 31, 2013 amounted to 20.0 billion yen, compared with net income of 1.1 billion yen for the previous fi scal year, due to higher extraordinary income stemming mainly from a decrease in impairment losses.

Outlook for fi scal year ending March 31, 2014During the fi scal year ending March 31, 2014, we expect to see a trend toward recovery throughout the year amid more positive business sentiment and increasingly robust consumer spending underpinned by government policy measures.

The domestic construction market is likely to remain faced with a challenging operating climate due to prevailing supply-side risks that include potential for rising labor costs and intensifying competition, despite the likely prospect of heightened demand for real estate investment and corporate capital spending fueled in part by infl ationary expectations and an increased fl ow of funds targeting riskier investment.

In consideration of the above-mentioned circumstances, we forecast consolidated net sales of 1,390 billion yen and consolidated operating income of 44 billion yen for the fi scal year ending March 31, 2014. In addition, we forecast consolidated ordinary income of 34 billion yen and consolidated net income of 18 billion yen for the fi scal year ending March 31, 2014. Furthermore, we forecast orders totaling 1,340 billion yen.


Medium-term Business Plan and Issues to be dealt with

The Company and the Affi liated Companies started their medium-term business plan with fi scal 2012 as its fi rst year and are implementing their strategies for each business and taking specifi c measures in accordance with the plan.

Basic Policy 1. Fulfillment of social responsibilities on the construction industry 2. Establishment of a business structure for the creation of high-added value

Business Issues (1) Construction business: Strengthening of the core business

(2) Development/improvement of social infrastructure and Contribution to post-earthquake reconstruction

(3) Overseas business: Establishment of an earnings structure

(4) Strengthening of initiatives and expansion of business fields to create high-added value

(5) Development/improvement of robust business foundations

The Company and the Affi liated Companies will direct all their energies to projects for recovery from the Great East Japan Earthquake and countermeasures for deteriorating infrastructure, thus contributing to the future development and improvement of Japanese social infrastructure.

The Affi liated Companies recognize the four items listed below as important issues to be addressed and will strive to achieve the business plan by tackling these issues.

Enhancing cost-competitiveness and procurement capabilitiesDue to growing demand for post-earthquake reconstruction, it is expected that in the future the labor market will continue to be tight while the prices of construction materials and machinery will rise sharply, and that market competition will become even fi ercer. The Affi liated Companies will, however, maintain and increase profi tability by enhancing their cost competitiveness, with a focus on enhancing their procurement capabilities.

Making consistent profi ts in overseas operationsThe Affi liated Companies are narrowing the number of overseas projects undertaken down to a level allowing appropriate risk management. In the years to come, they aim to consistently make a profi t from these projects by bolstering their profi t management system and focusing on the geographical regions and business sectors where they can make the most of their strengths.

Increasing the Affi liated Companies’ profi t-making capabilitiesThe Affi liated Companies will allocate their managerial resources to major affi liated companies inside and outside Japan appropriately so that they can respond to changes in their respective markets in a timely manner. They will also improve the Affi liated Companies’ profi t-making capabilities, mainly by applying the Company’s procurement capabilities to those companies as well.

Strengthening fi nancial structureThe Affi liated Companies will strive to increase their internal reserves by improving, profi tability of the Company and the Affi liated Companies. They will also strive to strengthen their fi nancial structure by reducing interest-bearing debt through greater cash fl ow from operating activities.

The numerical operating targets for the final year of the Medium-term Business Plan (the fiscal year ending March 31, 2015)

Item Consolidated Non-consolidated

Operating income ¥47 billion ¥36 billion

Interest-bearing debt Less than¥300 billion

Less than¥200 billion

D/E ratio 1.0 0.8



Year in Review

Civil engineeringThe Taisei Corporation Group’s civil engineering sales in the year ended March 31, 2013 amounted to 381.0 billion yen, an increase of 6.6% year on year, due to rising consolidated and non-consolidated sales. Civil engineering operating income for the fi scal year under review stood at 9.6 billion yen, a decrease of 26.4% year on year, affected by the deteriorating gross profi t ratio.

Building constructionThe Taisei Corporation Group’s building construction sales in the year ended March 31, 2013 amounted to 959.5 billion yen, an increase of 7.4% year on year, due to rising consolidated and non-consolidated sales. Building construction operating income for the fi scal year under review stood at 19.2 billion yen, a decrease of 37.7% year on year, affected by the deteriorating gross profi t ratio.

Real estate developmentThe Taisei Corporation Group’s real estate development sales in the year ended March 31, 2013 amounted to 139.0 billion yen, an increase of 1.3% year on year. Meanwhile, real estate development operating income of 5.6 billion yen was posted, compared with an operating loss of 8.7 billion yen for the fi scal year ended March 31, 2012, mainly due to a reversal of the evaluation loss on the Company’s preferred shares posted in the previous fi scal year.

Other businessSales of the Taisei Corporation Group’s other businesses in the fi scal year ended March 31, 2013 amounted to 12.0 billion yen, a decrease of 2.5% year on year. Operating income of other businesses for the fi scal year under review stood at 400 million yen, an increase of 41.8% year on year.

Major new orders received during FY ended March 2013:

Client Project

Tokyo International Air Terminal Corporation Tokyo International Airport Passenger Terminal Building Extension work (Area E, F and D ( No.2))

Miyagi Prefecture Disaster-related wastes management(Kesennuma area of the Kesennuma Block)

DAIWA HOUSE INDUSTRY CO., LTD. D Project-YOKOHAMA DAIKOKUNew Construction (tentative name)

TOKUSHUKAI MEDICAL CORPORATION Narita-Tomisato TOKUSHUKAI Hospital New Construction

West Nippon Expressway Company Limited Construction work of the Shinmeishin Expressway Minoh tunnel East

Major projects completed during FY ended March 2013:

Client Project

New Doha International Airport Steering Committee New Doha International Airport Passenger Terminal Complex

JAPAN POST Co., Ltd. Marunouchi 2-choume Project (tentative name)

Tokyo Metropolitan Government Central Circular Shinagawa Route Shield Tunnel-2

SURUGADAI KAIHATU TMK Kanda-Surugadai 4-6 Project (tentative name)

Japan Oil, Gas and Metals National Corporation Namikata National LPG Storage Base Construction Project



Six-Year Summary

Millions of yen(except for per share fi gures)

Thousands ofU.S. Dollars*(except for pershare fi gures)

2008 2009 2010 2011 2012 2013 2013

Revenue:

Net sales:

Construction ..................... ¥ 1,517,770 ¥ 1,467,070 ¥ 1,289,809 ¥ 1,079,139 ¥ 1,171,927 ¥ 1,254,291 $ 13,336,427

Real estate (including .....other) 193,944 174,112 152,166 138,980 151,577 162,205 1,724,668

Total ..................... 1,711,714 1,641,182 1,441,975 1,218,119 1,323,504 1,416,496 15,061,095

% change from previous year (8.6)% (4.1)% (12.1)% (15.5)% 8.7% 7.0%

Costs and expenses

Cost of sales ........................ 1,567,091 1,545,918 1,318,593 1,100,022 1,206,014 1,304,677 13,872,164 Selling, general and administrative expenses 95,767 95,920 87,755 81,803 81,004 76,213 810,345

Total ..................... 1,662,858 1,641,838 1,406,348 1,181,825 1,287,018 1,380,890 14,682,509

Operating income (loss) ... 48,856 (656) 35,627 36,294 36,486 35,606 378,586

Income (loss) before income taxes and other...items

42,172 (38,449) 35,516 19,374 16,673 32,828 349,048

Income taxes ...................... 13,878 (9,404) 14,462 8,514 15,480 12,399 131,834

Net income (loss)............... ¥ 24,447 ¥ (24,401) ¥ 21,222 ¥ 10,883 ¥ 1,181 ¥ 20,051 $ 213,195

Per share of common stock(in yen and dollars):

Net assets ........................ ¥ 318.12 ¥ 239.87 ¥ 262.15 ¥ 253.94 ¥ 255.60 ¥ 299.84 $ 3.188

Net income (loss) ............. 22.97 (22.93) 19.74 9.58 1.04 17.60 0.187

Cash dividends ................ 6.00 5.00 5.00 5.00 5.00 5.00 0.053

Financial ratios:Net income (loss) as a percentage of total .........revenue

1.4% (1.5)% 1.5% 0.9% 0.1% 1.4%

Total costs and expenses as a percentage of totalrevenue

97.1% 100.0% 97.5% 97.0% 97.2% 97.5%

Dividends paid as a percentage of net income 26.1% (21.8)% 25.3% 52.4% 482.5% 28.4%

Financial position data:

Current assets.................. ¥ 1,120,798 ¥ 1,082,037 ¥ 912,895 ¥ 847,467 ¥ 982,931 ¥ 1,012,639 $ 10,767,028

Current liabilities .............. 1,003,741 1,074,229 894,026 808,052 921,196 907,281 9,646,794Net property and ..............equipment 244,594 236,705 238,534 232,000 212,639 206,076 2,191,132

Long-term debt................. 291,550 248,400 250,083 235,607 219,101 292,514 3,110,197

Shareholders’ equity ........ 283,135 252,905 274,779 290,282 284,714 299,336 3,182,733

Net assets ........................ 373,988 284,713 297,179 290,598 292,602 343,300 3,650,186

Other data:New orders received ........during the year ¥ 1,753,692 ¥ 1,524,578 ¥ 1,244,439 ¥ 1,254,095 ¥ 1,379,572 ¥ 1,404,407 $ 14,932,557

Contract backlog at the ....end of the year 1,885,554 1,768,950 1,571,414 1,607,390 1,663,458 1,651,369 17,558,416

Shares issued ................(thousands) 1,064,803 1,064,803 1,090,622 1,140,269 1,140,269 1,140,269

*U.S. dollar amounts were translated from yen, for convenience only, at the rate of US $ 1 = ¥ 94.05



Financial Review

OperationsNet SalesNet sales in the fi scal year ended March 31, 2013 amounted to ¥1,416.4 billion, a 7.0% increase compared with the previous fi scal year.Operating income, ordinary income and net incomeOperating income in the fi scal year ended March 31, 2013 totaled 35.6 billion yen, a decrease of 2.4% year on year despite lower selling, general and administrative expenses, due to a decrease in gross profi t refl ecting deteriorating profi tability emerging from multiple large-scale construction profi ts. Ordinary income in the fi scal year ended March 31, 2013 stood at 35.0 billion yen, an increase of 15.9% year on year, refl ecting improvement in non-operating income stemming from elimination of foreign exchange losses and other such factors.

Net income for the fi scal year ended March 31, 2013 amounted to 20.0 billion yen, compared with net income of 1.1 billion yen for the previous fi scal year, due to higher extraordinary income stemming mainly from a decrease in impairment losses.

Review of assets, liabilities, net assets and cash fl owsAssetsThe total assets for the fi scal year ended March 31, 2013 amounted to 1,543.0 billion yen, a year-on-year increase of 48.3 billion yen or 3.2%, mainly owing to a gain in investment securities amid stock market gains.LiabilitiesThe total liabilities for the fi scal year ended March 31, 2013 stood at 1,199.7 billion yen, a year-on-year decrease of 2.2 billion yen or 0.2%, mainly due to a decline in interest-bearing debt related to fi nancing.Net AssetsThe total net assets for the fi scal year ended March 31, 2013 came to 343.3 billion yen, a year-on-year increase of 50.6 billion yen or 17.3%, due to a higher valuation difference on available-for-sale securities resulting from stock market appreciation.

Cash fl owsCash fl ow from operating activitiesThe net cash provided by operating activities for the fi scal year ended March 31, 2013 stood at 73.0 billion yen, compared with 105.1 billion yen for the fi scal year ended March 31, 2012, mainly a result of the Company generating 32.8 billion yen in income before income taxes.Cash fl ow from investing activitiesThe net cash fl ow from investing activities for the fi scal year ended March 31, 2013 amounted to a negative 4.7 billion yen, compared with a negative 8.0 billion yen for the fi scal year ended March 31, 2012, due to the purchase of marketable and investment securities for the fi scal year under review.Cash fl ow from fi nancing activitiesThe net cash fl ow from fi nancing activities for the fi scal year ended March 31, 2013 amounted to a negative 46.5 billion yen, compared with a negative 58.8 billion yen for the fi scal year ended March 31, 2012, due to the repayment of interest-bearing debt in relation to fundraising during the fi scal year under review.

As a result of the above-mentioned developments, cash and cash equivalents as at March 31, 2013 amounted to 265.7 billion yen, an increase of 24.6 billion yen from March 31, 2012. The balance of interest-bearing loans payable in relation to fundraising as at March 31, 2013 stood at 379.0 billion yen, a decrease of 40.1 billion yen from March 31, 2012.

0 20 40 60 80

8420

(Billions of Yen)

(times)6

-0.710

9

Operating incomeInterest and dividend incomeInterest expenseInterest coverage

4

335

6

4.1

2009

2013

2010

9336 4.6

5.3

6.2

2011

8336

336

2012

Operating Income and Interest Coverage

D/E ratio

0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

2.2

1.7

Interest-Bearing Debt and Net Assets

0 100 200 300 400 500 600 700

Net assetsInterest-bearing debt (Billions of Yen)

(times)

285

297

572

531

3433791.0

2009

2013

2010

1.5291

4722011

293419

2012 1.3

56

9

2013

2010

Cash Flows

(Billions of Yen)

Note: Net increase (decrease) in cash includes the effect of exchange rate changes, not the increase by newly consolidated and excluded subsidiaries.

Net cash provided by (used in) financing activitiesNet cash provided by (used in) investing activities

-80 -60 -40 -20 0 20 40 60 80 100 120Net cash provided by operating activities

Net increase (decrease) in cash and cash equivalents

71

4116

-46

-47-5

48

37

2011119

-65

25

2012 -8-59

-197

73

2009

105

-4



Consolidated Balance Sheets

ASSETSMillions of Yen

Thousands ofU.S. Dollars

(Note 1)

2012 2013 2013Current assets:

Cash and time deposits (Notes 3, 4 and 6) ............................................................. ¥ 243,737 ¥ 266,639 $ 2,835,077

Receivables: ............................................................................................................

Trade notes (Notes 4 and 7) ............................................................................ 17,407 12,230 130,037Trade accounts (Note 4) .................................................................................. 367,373 417,869 4,443,052Loans ............................................................................................................... 43 39 415

Allowance for doubtful accounts.............................................................................. (1,112) (960) (10,207)Inventories:

Development projects in progress, real estate (Note 6) ................................... 145,359 133,829 1,422,956Raw materials and supplies ............................................................................. 10,250 5,375 57,150

Cost on uncompleted contract................................................................................. 111,012 83,926 892,355Deferred income taxes (Note 9) .............................................................................. 36,595 34,918 371,271

Prepaid expenses and other current assets (Note 7) .............................................. 52,267 58,774 624,922

Total current assets............................................................................ 982,931 1,012,639 10,767,028

Property and equipment, at cost (Note 22):Land (Notes 6 and 11) ............................................................................................. 141,849 138,780 1,475,598Buildings and structures (Notes 6 and 11) .............................................................. 147,771 143,108 1,521,616Machinery and equipment (Note 6) ......................................................................... 57,960 57,462 610,973Construction in progress ......................................................................................... 603 372 3,955

348,183 339,722 3,612,142Accumulated depreciation ....................................................................................... (135,544) (133,646) (1,421,010)

Net property and equipment .............................................................. 212,639 206,076 2,191,132

Investments and other assets :Investments in unconsolidated subsidiaries and affi liated companies .................... 13,052 3,288 34,960Investment securities (Notes 4, 5 and 6) ................................................................. 181,006 254,083 2,701,574Deferred income taxes (Note 9) .............................................................................. 38,277 11,141 118,458Other assets (Note 6) .............................................................................................. 81,982 62,202 661,372Allowance for doubtful accounts.............................................................................. (15,191) (6,334) (67,347)

Total investments and other assets ................................................... 299,126 324,380 3,449,017Total assets ......................................................................... ¥ 1,494,696 ¥ 1,543,095 $ 16,407,177

The accompanying notes are an integral part of these balance sheets.



LIABILITIES AND NET ASSETSMillions of Yen

Thousands ofU.S. Dollars

(Note 1)

2012 2013 2013Current liabilities:

Short-term borrowings (Notes 4 and 8) ................................................................... ¥ 102,523 ¥ 86,355 $ 918,182Long-term debt due within one year (Notes 4 and 8) .............................................. 97,624 60,751 645,944Trade payables:

Notes (Notes 4 and 7) ...................................................................................... 54,968 55,326 588,262Accounts (Note 4) ............................................................................................ 392,553 430,074 4,572,823

Advances received and progress billings on uncompleted contracts ...................... 132,007 115,698 1,230,175Allowance for losses on order received 0 240 2,552Income taxes payable ............................................................................................. 4,885 1,039 11,047Deposits received (Note 4) ...................................................................................... 85,675 91,703 975,045Allowance for losses on construction contracts....................................................... 24,084 31,278 332,568Other current liabilities (Note 7)............................................................................... 26,877 34,817 370,196

Total current liabilities ........................................................................ 921,196 907,281 9,646,794

Long- term liabilities:Long-term debt (Notes 4 and 8) .............................................................................. 219,101 231,966 2,466,411Allowance for employees’ severance and retirement benefi ts (Note 12) ................ 31,860 33,729 358,628Allowance for accrued severance indemnities to directors and corporate

auditors ............................................................................................................ 386 427 4,540

Deferred income taxes for revaluation of land (Notes 9 and 20) ............................. 5,922 5,696 60,564Allowance for losses on investments in subsidiaries and affi liates ......................... 1,184 508 5,401Allowance for environmental spending.................................................................... 308 308 3,275Assets retirement obligation (Note 16) .................................................................... 1,210 1,223 13,004Other non-current liabilities ..................................................................................... 20,927 18,657 198,373

Total long-term liabilities .................................................................... 280,898 292,514 3,110,196Total liabilities ...................................................................... 1,202,094 1,199,795 12,756,990

Contingent liabilities and commitments (Note 19)

Net assets (Notes 13 and 23):Shareholders’ equity :

Common stockAuthorized: 2,200,000,000 sharesIssued: 1,140,268,860 shares .................................................................... 112,448 112,448 1,195,619

Capital surplus......................................................................................................... 94,170 94,170 1,001,277Retained earnings ................................................................................................... 78,293 93,020 989,048Less-Treasury stock, at cost ................................................................................... (197) (302) (3,211)

Total shareholders’ equity .................................................................. 284,714 299,336 3,182,733

Accumulated other comprehensive income:Unrealized holding gains on securities, net of taxes ............................................... 9,943 45,931 488,368Unrealized losses on hedging derivatives, net of taxes .......................................... (62) (208) (2,212)Revaluation reserve for land (Note 20) ................................................................... (587) (960) (10,207)Foreign currency translation adjustments ............................................................... (2,739) (2,569) (27,315)

Total accumulated other comprehensive income............................... 6,555 42,194 448,634Minority interests: ........................................................................................................ 1,333 1,770 18,820

Total net assets .................................................................................. 292,602 343,300 3,650,187Total liabilities and net assets .............................................. ¥ 1,494,696 ¥ 1,543,095 $ 16,407,177

Consolidated Balance Sheets (cont.)



Consolidated Statements of Income

Millions of Yen

Thousands of U.S. Dollars

(Note 1)

2012 2013 2013Revenue:

Net sales (Note 18): ................................................................................................

Construction ..................................................................................................... ¥ 1,171,927 ¥ 1,254,291 $ 13,336,427 Real estate (including other) ............................................................................ 151,577 162,205 1,724,668

1,323,504 1,416,496 15,061,095

Costs and expenses (Note 18):Cost of sales (Note 21)............................................................................................ 1,206,014 1,304,677 13,872,164 Selling, general and administrative expenses (Note 21) ......................................... 81,004 76,213 810,345

1,287,018 1,380,890 14,682,509 Operating income ......................................................................................................... 36,486 35,606 378,586

Other income (expense):Interest and dividend income .................................................................................. 3,171 3,295 35,035 Interest expense ...................................................................................................... (7,505) (6,312) (67,113)Miscellaneous Taxes ............................................................................................... (365) (159) (1,691)Foreign exchange gains (losses) ............................................................................ (1,934) 2,710 28,814Gains on sale of investment securities .................................................................... 1,365 - - Gains on sale of property and equipment ............................................................... 78 464 4,934 Losses on sale of investment securities .................................................................. - (4) (43) Losses on investments in related companies.......................................................... (1,570) - -Impairment losses on fi xed assets (Note 22) .......................................................... (12,174) (1,402) (14,907)Losses on write-down of investment securities ....................................................... (558) (170) (1,808)Losses on disposal of fi xed assets .......................................................................... (106) (200) (2,127)Other, net................................................................................................................. (215) (1,000) (10,632)

(19,813) (2,778) (29,538)

Income before income taxes and other items ........................................................... 16,673 32,828 349,048

Income taxes (Note 9):Current ............................................................................................................. (6,337) (3,623) (38,522)Deferred ........................................................................................................... (9,143) (8,776) (93,312)

(15,480) (12,399) (131,834)Income before minority interests ................................................................................ 1,193 20,429 217,214Minority interest in net income of consolidated subsidiaries .................................. (12) (378) (4,019)Net income ¥ 1,181 ¥ 20,051 $ 213,195

YenU.S. Dollars

(Note 1)

Amounts per share of common stock:Net income (Note 23) ....................................................................................... ¥ 1.04 ¥ 17.60 $ 0.187Diluted net income (Note 23) ........................................................................... ¥ - - -Cash dividends applicable to the year ............................................................. 5.00 5.00 0.053

The accompanying notes are an integral part of these statements.



Consolidated Statements of Comprehensive Income

Millions of Yen


(Note 1)

2012 2013 2013Income before minority interest ¥ 1,193 ¥ 20,429 $ 217,214Other comprehensive income (Note 24)

Unrealized holding gains on securities, net of taxes ............................................. 5,159 35,990 382,669Unrealized gains (losses) on hedging derivatives, net of taxes ............................. 76 (144) (1,531)Revaluation reserve for land ................................................................................... 848 0 0

Foreign currency translation adjustments ............................................................... 421 127 1,350Share of other comprehensive income of associates accounted for using equity method ........................................................................................... (35) 99 1,053

Total other comprehensive income 6,469 36,072 383,541Comprehensive income ¥ 7,662 ¥ 56,501 $ 600,755

Comprehensive income attribute to:owners of the parent ........................................................................................ 7,581 56,065 596,119minority interests .............................................................................................. 81 436 4,636




Consolidated Statements of Changes in Net Assets

Millions of Yen

Common stock

Capital Surplus

Retained earnings

Treasury stock

Total shareholders’

equity

Unrealized holding gains on securities, net of taxes

Unrealized losses on hedging

derivatives, net of taxes

Re-valuation

reserve for land

Foreign currency

translation adjust-ments

Totalaccumulated

othercomprehen-sive income

Minority interests

Total net assets

Balance at March 31, 2011 ¥ 112,448 ¥ 94,170 ¥ 83,857 ¥ (193) ¥ 290,282 ¥ 4,792 ¥ (138) ¥ (2,483) ¥ (3,064) ¥ (893) ¥ 1,209 ¥ 290,598Dividends........................ - - (5,697) - (5,697) - - - - - - (5,697)Net income ..................... - - 1,181 - 1,181 - - - - - - 1,181Sale of treasury stock ..... - (0) - 1 1 - - - - - - 1Acquisition of treasury

stock ........................... - - - (5) (5) - - - - - - (5)

Reversal of revaluation reserve for land ........... - - (1,048) - (1,048) - - 1,048 - 1,048 - -

Changes other than shareholders′ equity, net ...............................

- - - - - 5,151 76 848 325 6,400 124 6,524

Balance at March 31, 2012 ¥ 112,448 ¥ 94,170 ¥ 78,293 ¥ (197) ¥ 284,714 ¥ 9,943 ¥ (62) ¥ (587) ¥ (2,739) ¥ 6,555 ¥ 1,333 ¥ 292,602Dividends........................ - - (5,697) - (5,697) - - - - 0 - (5,697)Net income ..................... - - 20,051 - 20,051 - - - - 0 - 20,051Sale of treasury stock ..... - (0) - 1 1 - - - - 0 - 1Acquisition of treasury

stock ........................... - - - (106) (106) - - - - 0 - (106)

Reversal of revaluation reserve for land ........... - - 373 - 373 - - (373) - (373) - 0


- - - - 0 35,988 (146) - 170 36,012 437 36,449

Balance at March 31, 2013 ¥ 112,448 ¥ 94,170 ¥ 93,020 ¥ (302) ¥ 299,336 ¥ 45,931 ¥ (208) ¥ (960) ¥ (2,569) ¥ 42,194 ¥ 1,770 ¥ 343,300

Thousands of U.S. Dollars (Note 1)

Common stock

Capital Surplus

Retained earnings

Treasury stock

Total shareholders’

equity

Unrealized holding gains on securities, net of taxes

Unrealized losses on hedging

derivatives, net of taxes

Re-valuation

reserve for land

Foreign currency

translation adjust-ments

Totalaccumulated

othercomprehen-sive income

Minority interests

Total net assets

Balance at March 31, 2012 $ 1,195,619 $ 1,001,277 $ 832,461 $ (2,095) $ 3,027,262 $ 105,720 $ (660) $ (6,241) $ (29,123) $ 69,696 $ 14,174 $ 3,111,132Dividends........................ - - (60,574) - (60,574) - - - - 0 - (60,574)Net income ..................... - - 213,195 - 213,195 - - - - 0 - 213,195Sale of treasury stock ..... - 0 - 11 11 - - - - 0 - 11Acquisition of treasury

stock ........................... - - - (1,127) (1,127) - - - - 0 - (1,127)

Reversal of revaluation reserve for land ........... - - 3,966 - 3,966 - - (3,966) - (3,966) - 0


- - - - 0 382,648 (1,552) - 1,808 382,904 4,646 387,550

Balance at March 31, 2013 $ 1,195,619 $ 1,001,277 $ 989,048 $ (3,211) $ 3,182,733 $ 488,368 $ (2,212) $ (10,207) $ (27,315) $ 448,634 $ 18,820 $ 3,650,187




Consolidated Statements of Cash Flows

Millions of Yen


(Note 1)

2012 2013 2013Cash fl ows from operating activities:

Income before income taxes and other items ¥ 16,673 ¥ 32,828 $ 349,048Adjustments to reconcile income before income taxes and other items to net

cash provided by operating activities:Depreciation and amortization .......................................................................... 8,002 6,866 73,004Impairment losses on fi xed assets.................................................................... 12,174 1,402 14,907Interest and dividend income ............................................................................ (3,171) (3,295) (35,035)Interest expense ............................................................................................... 7,505 6,312 67,113Foreign exchange losses (Gains) ..................................................................... 1,934 (2,710) (28,814)losses (Gains) on write-down of investment securities ..................................... 12,658 401 4,264losses (Gains) on sale of investment securities................................................ (1,365) 4 43Losses (Gains) on sale of property and equipment............................................ (78) (464) (4,934)Losses on disposal of fi xed assets 106 200 2,127Losses (gains) on write-down of real estate for sale ........................................ 5,772 3,229 34,333

Changes in assets and liabilities:Decrease (Increase) in trade receivables ......................................................... (92,192) (45,069) (479,203)Decrease (Increase) in cost on uncompleted contract ..................................... (2,131) 27,137 288,538Decrease (Increase) in inventories other than cost on uncompleted contract .... 8,425 17,333 184,296Increase (Decrease) in trade payables ............................................................. 83,356 38,095 405,051Increase (Decrease) in advances received and progress billings

on uncompleted contracts ............................................................................. 31,761 (16,606) (176,566)

Increase (Decrease)in allowance for doubtful accounts ................................... (2,132) (9,012) (95,821)Increase (Decrease) in allowance for losses on construction contracts ........... 13,465 7,193 76,481Increase (Decrease) in retirement benefi ts....................................................... 2,305 1,866 19,841Increase (Decrease) in deposit received .......................................................... 21,510 6,028 64,094

Other, net.............................................................................................................. (12,378) 1,0712 113,894 112,199 82,450 876,661

Cash received (paid) during the year for:Interest and dividends received ............................................................................... 3,100 3,619 38,480Interest paid ............................................................................................................. (7,572) (6,373) (67,762)Income taxes paid .................................................................................................... (2,627) (6,615) (70,335)

Net cash provided by (used in) operating activities 105,100 73,081 777,044

Cash fl ows from investing activities:Decrease (Increase) in time deposits ...................................................................... (2,259) 1,753 18,639Purchase of marketable and investment securities ................................................. (5,832) (11,627) (123,626)Proceeds from sale of marketable and investment securities.................................. 5,170 6,521 69,335Purchase of property, equipment and intangible assets .......................................... (6,722) (6,284) (66,816)Proceeds from sale of property, equipment and intangible assets .......................... 1,947 4,193 44,583Other, net ................................................................................................................. (399) 741 7,880

Net cash provided by(used in) investing activities (8,095) (4,703) (50,005)

Cash fl ows from fi nancing activities:Increase (Decrease) in short-term borrowings......................................................... (23,901) (16,168) (171,909)Payment for retirement by purchase of convertible bond ........................................ 0 (20,276) (215,587)Proceeds from long-term debt ................................................................................. 89,396 102,810 1,093,142Repayment of long-term debt .................................................................................. (118,323) (106,818) (1,135,758)Cash dividends paid, including those to minority interest ........................................ (5,698) (5,697) (60,574)Other, net ................................................................................................................. (296) (402) (4,274)

Net cash provided by (used in) fi nancing activities (58,822) (46,551) (494,960)

Effect of exchange rate changes on cash and cash equivalents ......................... (694) 2,783 29,590Net increase (Decrease) in cash and cash equivalents ......................................... 37,489 24,610 261,669Cash and cash equivalents at beginning of year ................................................... 203,674 241,163 2,564,200Cash and cash equivalents at end of year (Note 3)................................................ ¥ 241,163 ¥ 265,773 $ 2,825,869




Notes to Consolidated Financial Statements

1. Basis of Presenting Consolidated Financial StatementsThe accompanying consolidated fi nancial statements of Taisei Corporation (the “Company”) and its consolidated subsidiaries 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 accounts of consolidated overseas subsidiaries have been prepared in accordance with either International Financial Reporting Standards or U.S. generally accepted accounting principles, with adjustments for the specifi ed fi ve items as applicable.

Japanese GAAP requires that accounting policies and procedures applied to a parent company and its subsidiaries for similar transactions and events under similar circumstances should, in principle, be unifi ed for the preparation of the consolidated fi nancial statements. Japanese GAAP, however, as a tentative measure, allows a parent company to prepare consolidated fi nancial statements using foreign subsidiaries’ fi nancial statements prepared in accordance with either International Financial Reporting Standards or U.S. generally accepted accounting principles. In this case, the following fi ve items should be adjusted in the consolidation process so that net income is accounted for in accordance with Japanese GAAP unless they are not material.a) Goodwill not subject to amortizationb) Actuarial gains and losses of defi ned-benefi t retirement plans

recognized outside profi t or loss

c) Capitalized expenditures for research and development activities

d) Fair value measurement of investment properties, and revaluation of property, plant and equipment and intangible assets

e) Accounting for net income attributable to minority interestsThe accompanying consolidated fi nancial statements have

been reformatted and translated into English (with some expanded descriptions) from the consolidated fi nancial statements of the Company prepared in accordance with Japanese GAAP and fi led 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 fi nancial statements but not required for fair presentation, is not presented in the accompanying consolidated fi nancial 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, 2013, which was ¥ 94.05 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 Signifi cant Accounting Policies(a) Consolidation and equity methodThe consolidated fi nancial statements include the accounts of the Company and its subsidiaries which were 25 and 25 for the years ended March 31, 2012 and 2013, respectively. All signifi cant intercompany transactions and account balances were eliminated in consolidation. Investments in signifi cant affi liates, which were 7 and 7 companies for 2012 and 2013, respectively, were accounted for by the equity method.

The consolidated fi nancial statements are required to include the accounts of the Company and signifi cant companies which are controlled by the Company through substantial ownership of more than 50% of the voting rights or through ownership of high percentage of the voting rights, even if it is equal to or less than 50%, and existence of certain conditions evidencing controls by the Company of decision-making body of such companies.

Investments in signifi cant affi liated companies, of which the Company has ownership of 20% or more but less than or equal to 50%, and of 15% or more and less than 20% and can exercise signifi cant infl uences over operating fi nancial policies of investees, have been accounted for by the equity method.

All consolidated subsidiaries have the same balance sheet date, March 31, corresponding with that of the Company, except for 5 and 6 consolidated overseas subsidiaries for 2012 and 2013, respectively, whose fi scal years end on December 31. Signifi cant transactions, if any, in the period until ended March 31, 2012 and 2013 were adjusted in the respective consolidated fi nancial statements.

(b) Valuation of Assets and Liabilities of SubsidiariesIn the elimination of the investments in subsidiaries, the assets and liabilities of the subsidiaries including the portion attributable to minority shareholders are recorded based on their fair value at the time the Company acquired control of the respective subsidiaries.

(c) GoodwillSignifi cant excesses of investment cost over net equity of consolidated subsidiaries and affi liated companies accounted for under the equity method are recognized as goodwill (negative goodwill , if credit balance), and goodwill is amortized principally the estimated useful life of years or less than twenty years on a straight-line basis. However, immaterial goodwill charged to income in the year of acquisition. Negative goodwill is credited to income upon occurrence.

(d) Foreign Currency TranslationReceivables and payables denominated in foreign currencies are translated into Japanese yen at year-end exchange rates. The resulting exchange gains and losses are refl ected 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 fi nancial statements of consolidated foreign subsidiaries and affi liated 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 fl ows, 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 insignifi cant risks of change in value are considered to be cash and cash equivalents.



(f) Marketable and Investment SecuritiesMarketable and investment securities are classifi ed, depending on management’s intent, as (a) securities held for trading purposes (hereafter, “trading securities”), (b) debt securities intended to be held to maturity (hereafter, “held-to-maturity debt securities”), (c) equity securities issued by subsidiaries and affi liated companies, and (d) all other securities that are not classifi ed in any of the above categories (hereafter, “available-for-sale securities”).

Held-to-maturity debt securities are stated at amortized cost. Equity securities issued by subsidiaries and affi liated companies that are not consolidated or accounted for using the equity method are stated at moving-average cost. Available-for-sale securities with available fair market values are stated at fair market value. Unrealized gains and losses on these securities are reported, net of applicable income taxes, as a separate component of Accumulated other comprehensive income in the net assets section. Realized gains and losses on sale of such securities are computed using moving-average cost. Debt securities with no available fair market value are stated at amortized cost, net of an amount considered not collectible. Other securities with no available fair market value are stated at moving-average cost.

(g) Construction ContractsContract revenue associated with construction contracts of which the outcome can be reliably estimated is accounted for using the percentage-of-completion method; other contract revenue is accounted for using the completed-contract method. The percentage of completion at the end of the reporting period is determined by the ratio of the cost incurred to the estimated total costs.

(h) Real Estate BusinessThe Company and its certain subsidiaries develop real estate projects on their own account. Real estate inventories, including work in process of development, are mainly stated at the lower of cost based on the specifi c-identifi cation 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 expense. Revenues from sales are recognized when titles of properties sold are transferred to customers.

(i) Property and EquipmentProperty and equipment except for buildings are recorded at cost and depreciated principally by the declining-balance method using standard useful lives prescribed in the Corporation Tax Law. Buildings are principally depreciated using the straight-line method.

(j) Accounting for Lease Transactions as LesseeFinance leases, except for certain immaterial or short-term fi nance leases which do not transfer ownership, are capitalized and depreciated using the straight-line method over lease periods, supporting estimated residual values to be zero.

(k) Derivatives and Hedge AccountingDerivative fi nancial instruments are stated at fair value and changes in fair value are recognized as gains or losses unless derivative fi nancial instruments are used for hedging purposes.

If derivative fi nancial 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 fi nancial instruments until related losses or gains on hedged items are recognized.

However, in cases where forward foreign exchange contracts are used as hedges and meet certain hedging criteria, forward foreign exchange contracts and hedged items are accounted for in the following manner:

(1) If a forward foreign exchange contract is executed to hedge an existing foreign currency receivable or payable,

a) the difference, if any, between the Japanese yen amount of the hedged foreign currency receivable or payable translated using the spot rate at the inception date of the contract and the book value of the receivable or payable is recognized in the income statement in the period which includes the inception date, and

b) the discount or premium on the contract (that is, the difference between the Japanese yen amount of the contract translated using the contracted forward rate and that translated using the spot rate at the inception date of the contract) is recognized over the term of the contract.

(2) If a forward foreign exchange contract is executed to hedge a future transaction denominated in a foreign currency, the future transaction will be recorded using the contracted forward rate, and no gains or losses on the forward foreign exchange contract are recognized.

Also, 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) Allowance for Doubtful AccountsAllowance for doubtful accounts is provided to reserve for probable losses from bad debt. It consists of the estimated uncollectible amount of certain identifi ed doubtful receivables and the amount estimated on the basis of the past default ratio for normal receivables.

(m) Income TaxesThe Company and its wholly owned domestic subsidiaries apply the system of consolidated tax returns.

The Company computes the provision for income taxes based on the pretax income included in the consolidated statement of income and recognizes deferred tax assets and liabilities for expected future tax consequences of temporary differences between the fi nancial statement basis and the tax basis of assets and liabilities.

(n) Severance and Retirement Benefi tsThe Company and certain consolidated subsidiaries provide two types of severance and retirement benefi t plans for employees, funded non-contributory pension plans and unfunded lump-sum payment plans, under which all eligible employees are entitled to benefi ts based on the level of wages and salaries at the time of retirement or termination, length of service and certain other factors.

The Company and its consolidated subsidiaries provided allowance for employees’ severance and retirement benefi ts at year-end based on estimated amounts of projected benefi t obligation and plan assets at that date.

Past service costs are amortized using the straight-line method (some consolidated subsidiaries use the declining-balance method) over 1 to 10 years, which is not longer than an estimated average remaining service period of the employees when the costs are incurred.

Unrecognized actuarial gains and losses are amortized from the subsequent fi nancial year using the straight-line method (some consolidated subsidiaries use the declining-balance method) over 1 to 10 years, which is not longer than an estimated average remaining service period of the employees when the gains or losses are incurred.

As from April 1, 2013, the Company will transfer a part of the future service benefi t of the funded non-contributory pension plan to defi ned-contribution pension plan, based on the agreement of the Company and its labor union on December 25, 2012.

Notes to Consolidated Financial Statements (cont.)


(o) Allowances for accrued severance indemnities to directors and corporate auditors of certain consolidated subsidiaries have been set up in accordance with each company’s regulations.

(p) Allowance for Warranty on Completed ContractsAllowance for warranty on completed contracts is provided as the amount estimated using an actual ratio of related losses during the past certain periods.

(q) Allowance for Losses on Construction ContractsAllowance for losses on construction contracts is provided with respect to construction projects for which eventual losses are reasonably estimated.

(r) Allowance for Losses on Order ReceivedAllowance for losses on order received is provided with respect to orders (excluding construction contracts) for which eventual losses are reasonably estimated.

(s) Allowance for Losses on Investments in Subsidiaries and Affi liates

Allowance for losses on investments in subsidiaries and affi liates is provided for estimated losses from certain subsidiaries and affi liates in liquidation.

(t) Allowance for Environmental SpendingAllowance 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.

(u) Net Income and Cash Dividends per ShareNet 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. Diluted net income per share is calculated similarly, except that it includes the dilutive effect of the assumed exercise of securities.

Cash dividends per share shown for each year represent dividends declared as applicable to the respective years.

(v) Recognizing Appropriations of Retained EarningsIn accordance with the customary practice in Japan, the appropriations are not accrued in the fi nancial statements for the period to which they

relate, but are recorded in the period in which they were resolved. Retained earnings at March 31, 2012 include amounts representing the year-end cash dividends, which were resolved at the shareholders’ meeting held on June 28, 2012 as described in Note 25.

(w) Accounting Standard for Accounting Changes and Error Corrections

The Company adopted ASBJ Statement No.24, Accounting Standard for Accounting Changes and Error Corrections, and ASBJ Guidance No.24, Guidance on Accounting Standard for Accounting Changes and Error Corrections (both issued by the ASBJ on December 4, 2009) for accounting changes and corrections of prior period errors which are made from the beginning of fi scal year ended March 31, 2012.

(x) Reclassifi cationsCertain prior year amounts have been reclassifi ed to conform to the current year presentation. These reclassifi cations have no impact on previously reported results of operations or retained earnings.

(y) Change in accounting policy which is diffi cult to distinguish from the changes in accounting estimate

Accompanying revisions in the Corporate Tax Law, the Company and its certain consolidated subsidiaries have changed their method of depreciation for tangible fi xed assets acquired on or after April 1, 2012, based on the revised Law. The effect of this change is immaterial on the fi nancial statements.

(z) Accounting standards issued but not yet adoptedFrom the viewpoint of improvement to fi nancial reporting and international convergence, the ASBJ has been deliberating the establishment of a revised accounting standard for retirement benefi ts, ASBJ Statement No.26, Accounting Standard for Retirement Benefi ts (issued on May 17, 2012) and ASBJ Guidance No. 25, Guidance on Accounting Standard for Retirement Benefi t (issued on May 17, 2013), which mainly focus on (a) how actuarial gains and losses and prior service cost should be accounted for, (b) how projected benefi t obligations and current service costs should be determined and (c) enhancement of disclosures.

This revised accounting standard, though not yet adopted by the Company and its consolidated subsidiaries, will be introduced and made effective from the end of fi scal 2014. The resulting impacts on future consolidated fi nancial statements are being examined.

3. Cash and Cash Equivalents(1) Cash and cash equivalents at March 31, 2012 and 2013 consisted of the following:

Millions of YenThousands ofU.S. Dollars

2012 2013 2013Cash and time deposits .............................................................................................. ¥ 243,737 ¥ 266,639 $ 2,835,077Less: Time deposits with maturities exceeding three months .................................... (2,574) (866) (9,208)Cash and cash equivalents ........................................................................................ ¥ 241,163 ¥ 265,773 $ 2,825,869



4. Financial Instruments(1) Policies for using fi nancial instrumentsThe Company and its consolidated subsidiaries (hereafter referred as the “Companies”) restrict investments to the low risk assets such as deposits, and raise funds by the indirect fi nance such as borrowings from bank as well as by the direct fi nance such as issuing corporate bonds or commercial papers.

Derivative fi nancial instruments are employed mainly for hedging fl uctuation in interest rate and foreign currency exchange, and not used to speculate.

Receivables: trade notes and trade accounts are exposed to the credit risks of customers. In order to reduce such risks, the Companies conduct strict credit examinations when orders are received, and afterward manage the receivables individually and make effort to direct reduction of credit risks early.

For investment securities which are mainly held-to-maturity debt securities and shares held to keep the relationship with business partners, the Companies regularly monitor the fair values or fi nancial positions of the invested companies, and revise the portfolio (except for held-to-maturity debt securities) considering the relationship with them.

Debts, trade payables: notes and accounts are debts mostly due within one year. Borrowings, commercial papers and bonds are primarily for working capital, and have maturity date of fi ve years or less. For variable interest rate borrowings or bonds, they are exposed to the interest rate fl uctuation risks. These risks are hedged by derivative transactions (interest rate swap contracts).

The Companies primarily utilize derivative transactions related to interest rates in order to mitigate the fl uctuation risks in interest rates or to reduce fi nancing costs, and derivative transactions related to currency in order to mitigate the foreign exchange risks. These transactions are exposed to the fl uctuation risks in interest rates and the foreign exchange risks. However, the Companies are exposed to limited risks, because most of them are hedged by the corresponding transactions. They consider the credit risk to be little, because they conduct derivative transactions solely with reliable international fi nancial institutions.

The derivative transactions are executed and managed by their Finance Department in accordance with the established policies and within the specifi ed limits on the amounts of derivative transactions allowed.

(2) Fair Value of Financial Instruments(a) Book values of the fi nancial instruments included in the consolidated balance sheet, the fair values of said items as of March 31, 2012 and 2013, were as follows. Items for which it is extremely

diffi cult to calculate the fair value were not included in the following table (see Note 2 below).

Millions of Yen2012

Book Value Fair Value Difference[ASSETS] Cash and time deposits ¥ 243,737 ¥ 243,737 ¥ -

Receivables: Trade notes and Trade accounts 384,779 384,676 (103)Investment securities

Debt securities intended to be held to maturity 737 742 5Available-for-sale securities 125,345 125,345 -

[LIABILITIES] Trade payables: Notes and Accounts 447,521 447,521 -Short-term borrowings and Long term debt due within one year 200,147 201,196 (1,049)Deposits received 85,675 85,675 -Long-term debt 219,101 223,203 (4,102)Derivative fi nancial instruments (*) (95) (95) -

Millions of Yen2013

Book Value Fair Value Difference[ASSETS] Cash and time deposits ¥ 266,639 266,639 ¥ -

Receivables: Trade notes and Trade accounts 430,100 429,933 (167)Investment securities

Debt securities intended to be held to maturity 779 789 10Available-for-sale securities 183,971 183,971 -

[LIABILITIES] Trade payables: Notes and Accounts 485,400 485,400 -Short-term borrowings and Long term debt due within one year 147,106 147,695 (589)Deposits received 91,703 91,703 -Long-term debt 231,966 235,614 (3,648)Derivative fi nancial instruments (*) (316) (316) -



Thousands of U.S. dollars2013

Book Value Fair Value Difference[ASSETS] Cash and time deposits $ 2,835,077 $ 2,835,077 $ -

Receivables: Trade notes and Trade accounts 4,573,099 4,571,324 (1,775)Investment securities

Debt securities intended to be held to maturity 8,283 8,389 106Available-for-sale securities 1,956,098 1,956,098 -

[LIABILITIES] Trade payables: Notes and Accounts 5,161,085 5,161,085 -Short-term borrowings and Long term debt due within one year 1,564,125 1,570,388 (6,263)Deposits received 975,045 975,045 -Long-term debt 2,466,411 2,505,199 (38,788)Derivative fi nancial instruments (*) (3,360) (3,360) -

Millions of Yen2012

Within one yearOver one year but within fi ve years

Over fi ve years but within ten years

Time deposits ............................................................................................................. ¥ 243,145 ¥ - ¥ -Receivables: Trade notes and Trade accounts .......................................................... 375,799 8,981 -Investment securities

Debt securities intended to be held to maturityGovernment bonds .............................................................................................. 111 458 97Bonds .................................................................................................................. - 20 -Other bonds......................................................................................................... - 50 -

Available-for-sale securitiesGovernment bonds .............................................................................................. 78 154 -Bonds .................................................................................................................. - 100 -

Others ..................................................................................................................... - 48 -Total.............................................................................................................. ¥ 619,133 ¥ 9,811 ¥ 97

(*)Note The assets and liabilities are reported as net amount. Any item for which the total becomes a net liability is indicated in parenthesis.

Note 1: The calculation method of the fair value of fi nancial instrument and securities, derivative transaction [ASSETS] ・Cash and time deposits and Receivables: Trade notes and Trade accounts

The fair values of these fi nancial instruments are almost equivalent to the book value, due to the short term settlements; although, the fair value of receivables due over one year are based on the present value of discounted cash fl ows using the interest rate the estimated collection terms and credit risks, with respect to each receivable categorized by collection terms.

・Investment securitiesThe fair values of marketable securities are 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 fl ows, respectively.See the notes on“5 Securities“ for notes pertaining to securities according to the purpose for which they are held.

[LIABILITIES] ・Trade payables: Notes and Accounts, Short-term borrowings and Long term debt due within one year, Commercial papers and Deposits received

The fair values of these fi nancial instruments are almost equivalent to the book value, due to the short term settlements; although, the fair value of long-term debt due within one year are based on the same method as that for long-term debt.

・Long-term debtLong-term debt is the sum of long term borrowings due after one year, straight bonds due after one year and convertible bonds due after one year. The fair values of long-term borrowings are based on the present value of discounted cash fl ows using the interest rate which may be applicable when the same kind of borrowings is conducted. The fair values of marketable bonds are based on the quoted market value, otherwise the fair values of bonds are based on the present value of discounted cash fl ows using the interest rate refl ecting the estimated redemption terms and issuer’s credit risk.

・Derivative financial instrumentsSee the notes on “15 Derivative Transactions”.

Note 2: Financial instruments for which it is deemed extremely diffi cult to calculate the fair value Nonmarketable securities (book value amount to ¥ 67,977 million and ¥ 72,621 million ($ 772,153 thousand) at March 31, 2012 and 2013,

respectively) are not included in the [Assets] Investment securities–Available-for-sale securities above, as it is extremely diffi cult to calculate the fair values because they have no quoted market price and the future cash fl ows 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, 2012 and 2013 were as follows:



5. Securities(1) Following tables summarized acquisition costs, book values and fair values of securities with available fair values as of March 31, 2012

and 2013:

(a) Held-to-maturity debt securities:

Securities with available fair values exceeding book valuesMillions of Yen

2012Type Book value Fair value DifferenceGovernment bonds ..................................................................................................... ¥ 549 ¥ 556 ¥ 7Bonds ......................................................................................................................... 20 20 0

Total.............................................................................................................. ¥ 469 ¥ 576 ¥ 7

Millions of Yen Thousands of U.S. Dollars2013 2013

Type Book value Fair value Difference Book value Fair value DifferenceGovernment bonds .................................... ¥ 683 ¥ 692 ¥ 10 $ 7,262 $ 7,358 $ 106Bonds ........................................................ 20 21 1 213 223 11Other.......................................................... 50 50 0 532 532 0

Total............................................. ¥ 753 ¥ 763 ¥ 11 $ 8,006 $ 8,113 $ 117

Thousands of U.S. Dollars2013



Time deposits ............................................................................................................. $ 2,816,619 $ - $ -Receivables: Trade notes and Trade accounts .......................................................... 4,395,066 178,022 -Investment securities

Debt securities intended to be held to maturityGovernment bonds .............................................................................................. - 6,443 1,095Bonds .................................................................................................................. - 213 -Other bonds......................................................................................................... - 532 -

Available-for-sale securitiesGovernment bonds .............................................................................................. - 1,084 1,701Bonds .................................................................................................................. 1,063 - -Other bonds......................................................................................................... - 29,452 -

Others ..................................................................................................................... - 564 -Total.............................................................................................................. $ 7,212,748 $ 216,310 $ 2,796

Note 4: See the notes on “8 Short-term Borrowings, Commercial Papers and Long-term Debt” for notes pertaining to the aggregate annual maturities of long term debt after the consolidated balance sheet date:

Millions of Yen2013



Time deposits ............................................................................................................. ¥ 264,903 ¥ - ¥ -Receivables: Trade notes and Trade accounts .......................................................... 413,356 16,743 -Investment securities

Debt securities intended to be held to maturityGovernment bonds .............................................................................................. - 606 103Bonds .................................................................................................................. - 20 -Other bonds......................................................................................................... - 50 -

Available-for-sale securities Government bonds .............................................................................................. - 102 160Bonds .................................................................................................................. 100 - -Other bonds......................................................................................................... - 2,770 -

Others ..................................................................................................................... - 53 -Total.............................................................................................................. ¥ 678,359 20,344 263



Other securitiesMillions of Yen

2012Type Book value Fair value DifferenceGovernment bonds ..................................................................................................... ¥ 117 ¥ 117 ¥ (0)Others ......................................................................................................................... 50 50 0

Total.............................................................................................................. ¥ 167 ¥ 167 ¥ (0)


Type Book value Fair value Difference Book value Fair value DifferenceGovernment bonds .................................... ¥ 26 ¥ 26 ¥ (0) $ 276 $ 276 $ (0)Bonds ........................................................

Total............................................. ¥ 26 ¥ 26 ¥ (0) $ 276 $ 276 $ (0)

(b) Available-for-sale securities:Securities with book values exceeding acquisition costs

Millions of Yen2012

Type Book value Acquisition cost DifferenceEquity securities ......................................................................................................... ¥ 82,701 ¥ 55,771 ¥ 26,930Government bonds ..................................................................................................... 207 201 6Others ......................................................................................................................... 584 507 77

Total.............................................................................................................. ¥ 83,492 ¥ 56,479 ¥ 27,013


Type Book value Acquisition cost Difference Book value Acquisition cost DifferenceEquity securities ........................................ ¥ 163,436 ¥ 87,534 ¥ 75,902 $ 1,737,757 $ 930,718 $ 807,039Government bonds .................................... 241 230 11 2,562 2,445 117Other bonds ............................................... 2,770 2,725 45 29,452 28,974 478Others ........................................................ 965 626 339 10,261 6,656 3,604

Total............................................. ¥ 167,412 ¥ 91,115 ¥ 76,297 $ 1,780,032 $ 968,793 $ 811,238

Other securitiesMillions of Yen

2012Type Book value Acquisition cost DifferenceEquity securities ......................................................................................................... ¥ 41,326 ¥ 52,838 ¥ (11,512)Government bonds ..................................................................................................... 25 25 (0)Bonds ......................................................................................................................... 100 100 -Others ......................................................................................................................... 402 442 (40)

Total.............................................................................................................. ¥ 41,853 ¥ 53,405 ¥ (11,552)


Type Book value Acquisition cost Difference Book value Acquisition cost DifferenceEquity securities ........................................ ¥ 16,151 ¥ 21,084 ¥ (4,933) $ 171,728 $ 224,179 $ (52,451)Government bonds .................................... 21 22 (0) 223 224 (0)Bonds ........................................................ 100 100 - 1,063 1,063 -Others ........................................................ 287 313 (27) 3,052 3,328 (287)

Total............................................. ¥ 16,559 ¥ 21,519 ¥ (4,960) $ 176,066 $ 228,804 $ (52,738)



(2) Total sales of available-for-sale securities sold and the related gains and losses for the years ended March 31, 2012 and 2013 were as follows:

Millions of Yen2012

Type Equity securities Others TotalTotal sales of available-for-sale securities sold .......................................................... ¥ 2,328 ¥ 2,157 ¥ 4,485Gains on sales of available-for-sale securities ........................................................... 1,203 271 1,474Losses on sales of available-for-sale securities ......................................................... 109 - 109

Millions of Yen2013

Type Equity securities Others TotalTotal sales of available-for-sale securities sold .......................................................... ¥ 5,523 ¥ 447 ¥ 5,970Gains on sales of available-for-sale securities ........................................................... 1,047 32 1,079Losses on sales of available-for-sale securities ......................................................... 1,027 55 1,082


Type Equity securities Others TotalTotal sales of available-for-sale securities sold .......................................................... $ 58,724 $ 4,753 $ 63,477Gains on sales of available-for-sale securities ........................................................... 11,133 340 11,473Losses on sales of available-for-sale securities ......................................................... 10,920 585 11,505

(3) Impairment losses on securitiesThe Companies recognized impairment losses on the following securities for the years ended March 31, 2012 and 2013, respectively.


Type 2012 2013 2013Write-down of investment securities ........................................................................... ¥ 558 ¥ 170 $ 1,808Write-down of investment securities included in cost of sales (Real estate develop-ment) .......................................................................................................................... 12,100 231 2,456

(1) The following assets were pledged principally as collateral for short-term borrowings, long-term debt, guarantee deposits received or guarantees (such as guarantees for the completion of construction contracts) at March 31, 2012 and 2013:


2012 2013 2013Time deposits ............................................................................................................. ¥ 43 ¥ - $ -Inventories: Real estate development ........................................................................ 4,035 - -Land............................................................................................................................ 42,248 - -Buildings and structures (net of accumulated depreciation) ...................................... 19,374 4,386 46,635

Total.............................................................................................................. ¥ 65,700 ¥ 4,386 $ 46,635

(2) The following assets were pledged principally as collateral for loans of companies, which were not consolidated companies at March 31, 2012 and 2013:


2012 2013 2013Inventories: Real estate development ........................................................................ ¥ 749 ¥ 749 $ 7,964Investment securities .................................................................................................. 1,918 2,013 21,403Other assets ............................................................................................................... 2,446 2,102 22,350

Total.............................................................................................................. ¥ 5,113 ¥ 4,864 $ 51,717

6. Pledged Assets



7. Notes receivable and notes payable maturing on balance sheet date (Eff ect on of Bank Holiday)Notes receivable and notes payable are settled on the date of clearance. As March 31, 2012 and 2013 were a bank holiday, notes receivable and notes payable maturing on that day could not be settled and are included in the consolidated balance sheets, as follows:


2012 2013 2013Bonds and notes:

Issued by the Company:1.80% yen bonds due in 2014 ............................................................................. ¥ 10,000 ¥ 10,000 $ 106,3261.81% yen bonds due in 2014 ............................................................................. 5,600 3,400 36,1511.49% yen bonds due in 2015 ............................................................................. 15,000 15,000 159,4900.80% yen bonds due in 2016 ............................................................................. 10,000 10,000 106,3261.58% yen bonds due in 2017 ............................................................................. 10,000 10,000 106,3264.517% yen convertible bonds due in 2014 ........................................................ 20,000 - -

Loans, principally from banks and insurance companies: Secured loans ......................................................................................................... 45,033 1,780 18,926Unsecured loans ..................................................................................................... 201,092 242,537 2,578,810

316,725 292,717 3,112,355Amount due within one year ....................................................................................... (97,624) (60,751) (645,944)Total long-term debt (due after one year) ................................................................... ¥ 219,101 ¥ 231,966 $ 2,466,411

Long-term loans at March 31, 2012 and 2013 were principally from banks and insurance companies. The weighted average interest of loans at March 31, 2012 and 2013 were 1.2% and 1.0% per annum, respectively.The aggregate annual maturities of long-term debt (including current portion) at March 31, 2013 were summarized as follows:

Year ending March 31, Millions of YenThousands ofU.S. Dollars

2014................................................................................ ¥ 60,751 $ 645,9442015................................................................................ 77,462 823,6262016................................................................................ 37,030 393,7272017................................................................................ 55,036 585,1782018................................................................................ 42,438 451,2282019 and thereafter ........................................................ 20,000 212,652

Total ............................... ¥ 292,717 $ 3,112,355

The Company has a commitment line provided by co-fi nancing consisting of several correspondent fi nancial institutions for the purpose of securing fi nancing in case of an emergency. The commitment line amount as of March 31, 2012 and 2013 were

¥100,000 million and ¥100,000 million ($1,063,264 thousand), respectively, however there was no amount of loans as of March 31, 2012 and 2013, respectively.


2012 2013 2013Notes receivable (Trade) ............................................................................................ ¥ 651 ¥ 533 $ 5,667Notes receivable (Other) ............................................................................................ 108 79 840Notes Payable (Trade) ............................................................................................... 8,821 9,077 96,512Notes Payable (Other) ................................................................................................ 35 9 96

8. Short-term Borrowings, Commercial Papers and Long-term DebtShort-term borrowings at March 31, 2012 and 2013 mainly consisted of short-term notes and overdrafts from banks. The weighted average interest rates of short-term borrowings at March 31, 2012 and 2013 were 0.9% and 0.9% per annum, respectively.The Company and its consolidated subsidiaries have had no diffi culty in renewing such notes and overdraft facility agreements, when they considered such renewal advisable.Long-term debt at March 31, 2012 and 2013 consisted of the following:



Signifi cant components of deferred income taxes at March 31, 2012 and 2013 were as follows:


2012 2013 2013Deferred income tax assets:

Disallowed portion of expenses and losses:Allowance for employee’s severance and retirement benefi ts ............................ ¥ 37,043 ¥ 36,995 $ 393,355Inventories ........................................................................................................... 26,469 25,950 275,917Bad debt expenses and allowance for doubtful accounts ................................... 14,406 7,072 75,194Accrued bonuses................................................................................................. 3,909 4,333 46,071Fixed assets ........................................................................................................ 6,711 6,384 67,879Investment securities........................................................................................... 5,654 5,764 61,287Others.................................................................................................................. 7,428 5,674 60,329

Tax loss carryforward .............................................................................................. 4,558 2,337 24,848Unrealized profi ts .................................................................................................... 7,381 7,389 78,575

Consolidation adjustment on investments in related companies......................... 839 1,384 14,716Sub-total ....................................................................................................... 114,398 103,283 1,098,171

Valuation allowance ................................................................................................ (10,817) (8,729) (92,812)Total.............................................................................................................. 103,581 94,554 1,005,359

Deferred income tax liabilities: Unrealized holding gains on securities ................................................................... (5,491) (25,380) (269,856)Gains on securities contribution to employee retirement benefi t trust .................... (20,605) (20,605) (219,086)Reserve for tax deferment on replacement of assets ............................................. (1,922) (1,922) (20,436)Others ..................................................................................................................... (691) (588) (6,252)

Total.............................................................................................................. (28,709) (48,495) (515,630)Net total ........................................................................................................ ¥ 74,872 ¥ 46,059 $ 489,729

2012 2013Statutory tax rate 40.7% -

Permanent differences:Non-deductible expenses 22.3 -Non-taxable income (15.5) -

Per capita inhabitant tax and others 2.9 -Liquidation of a consolidated subsidiary and others (12.7) -Valuation allowance 13.1 -Effect of enacted changes in tax laws and rates on Japanese tax 47.1 -Others (5.1) -Effective tax rate 92.8% -

(*)Note Information for the year ended March 31, 2013 is not provided because the difference between the effective income tax rate of the Companies and the statutory tax rate is less than 5%.

In addition to the deferred income taxes shown above, deferred tax liabilities concerning revaluation of land amounting to ¥5,922 million

at March 31, 2012 and ¥5,696 million ($60,564 thousand) at March 31, 2013 were included in the consolidated balance sheets.

9. Income TaxesTaxes on income consist of corporation, enterprise and inhabitants taxes.

On December 2, 2011, amendments to the Japanese tax regulations “Act on the Partial Revisions of the Income Tax Act and Others to Establish Taxation System Responding to Changes in Socio-Economic Structure” (Act No.114 of 2011) and “Act on Special Measures Concerning Security of Adequate Financial Sources Required to Implement Measures of Recovery from Great East Japan Earthquake” (Act No.117 of 2011) were enacted into law. As a result of these amendments, the statutory income tax rate for the Company will be reduced from 40.7% to 38.0% effective from the

year beginning April 1, 2012, and to 35.6% effective from the year beginning April 1, 2015 thereafter. Due to this change, deferred tax assets decreased by ¥7,077 million ($86,105 thousand), income tax deferred increased by ¥7,861 million ($95,644 thousand), unrealized holding gains on securities increased by ¥786 million ($9,563 thousand), and unrealized losses on hedging derivatives decreased by ¥3 million ($37 thousand) for the year ended March31, 2012.

The following table summarized the signifi cant differences between the statutory tax rate and the Company’s effective tax rate for fi nancial statement purposes for the year ended March 31, 2012.



(1) The year ended March 31, 2012 (from April 1, 2011 to March 31, 2012):Not applicable.

(2) The year ended March 31, 2013 (from April 1, 2012 to March 31, 2013):(a) Name of the parties of the transaction and their businesses, Scheme of the business combination, Name of the company after transaction,

and Purpose of the transaction for the year ended March 31, 2013 were as follows.a) Name of the parties of the transaction and their businesses・Continuing company

Company name BusinessTASEI SERVICE Co., Ltd Real estate management and insurance agency

・Merged company

Company name Business

YURAKU REAL ESTATE CO., LTD Sales of housing, Leasing of offi ce buildings and residential properties, Agency and Appraisal of real estate and Insurance agency

b) Date of the business combinationApril 1, 2012

c) Scheme of the business combinationAbsorption-type Merger: TASEI SERVICE Co., Ltd is the continuing company and YURAKU REAL ESTATE Co., Ltd is the merged company.

d) Name of the company after transactionTAISEI YURAKU REAL ESTATE Co., Ltd.

e) Purpose of the transactionThe merger aims to improve business effi ciency by integrating real estate related business and unifying knowledge and information between TAISEI SERVICE Co., Ltd which has been operating real estate management and YURAKU REAL ESTATE Co., Ltd which has been operating real estate sales and lease.

(b) Accounting for the transactionThe transaction was accounted as transaction under common control in accordance with ASBJ Statement No.21, “Accounting Standard for Business Combinations” and ASBJ Guidance No.10, “Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (both issued by ABSJ on December 26, 2008).

10. Business Combination (Transaction under common control)



11. Investment and Rental Property(1) The Company and certain consolidated subsidiaries hold some offi ce buildings for rent in Tokyo and other areas. The rental income on

offi ce buildings for rent was ¥3,348 million and ¥3,467 million ($36,863 thousand) at the year ended on March, 31 2012 and 2013, respec-tively. Mainly rental income is booked on Net sales: Real estate (including other), and rental cost is booked on Cost of Sales.

(2) The amounts of investment and rental property which booked on consolidated balance sheets, the amounts of increase or decrease, and fair value at March 31, 2012 and 2013 were as follows:

Millions of Yen2012

Book value Fair valueMarch 31, 2011 increase (decrease) March 31, 2012 March 31, 2012

¥ 106,887 ¥ (17,767) ¥ 89,120 ¥ 93,283

Millions of Yen2013


¥ 89,120 ¥ (2,390) ¥ 86,730 ¥ 91,337



$ 947,581 $ (25,412) $ 922,169 $ 971,154

Note 1: Carrying amount is the amount that the accumulated depreciation and impairment losses are deducted from the cost of acquisition.Note 2: The main reason of decrease for the year ended March 31, 2012 and March 31, 2013 were impairment loss on fi xed assets in the amounts of

¥10,790 million and ¥838 ($8,910 thousand), and reclassifi cation to inventories (real estate) in the amount of ¥4,352 million and ¥1,002 ($10,654 thousand), respectively.

Note 3: The book value at March 31, 2012 and 2013 included asset retirement obligations in the amounts of ¥404 million and ¥373 million ($ 3,966 thousand), respectively.

Note 4: The fair value of investment and rental property as of March 31, 2012 and 2013 were mainly calculated by the Company according to the appraisal standard of real-estate (including those which were adjusted using the land price index, if any).

12. Allowance for Employees’ severance and retirement benefi tsThe Company and its consolidated domestic subsidiaries have adopted the defi ned-benefi t pension plans which include defi ned-benefi t corporate pension plans and lump-sum payment plans. Liabilities and expenses for severance and retirement benefi ts of the Company and its consolidated domestic subsidiaries are determined

based on amounts obtained by actuarial calculations.The number of consolidated domestic subsidiaries which have

adopted defi ned-benefi t corporate pension plans and lump-sum payment plans were 9 and 20, respectively, as of March 31, 2013.

The liabilities for severance and retirement benefi ts included in the liability section of the consolidated balance sheets as of March 31, 2012 and 2013 consisted of the following:


2012 2013 2013Projected benefi t obligation ........................................................................................ ¥ (158,923) ¥ (148,920) $ (1,583413)Unrecognized actuarial differences ............................................................................ 36,026 19,646 208,889Unrecognized prior service cost ................................................................................. (2,278) (13,361) (142,063)Less: Fair value of pension assets ............................................................................. 97,748 115,634 1,229,495Prepaid pension expense ........................................................................................... (4,433) (6,728) (71,536)Employees’ severance and retirement benefi ts .......................................................... ¥ (31,860) ¥ (33,729) $ (358,628)



Severance and retirement benefi t expenses included in the consolidated statements of operation for the years ended March 31, 2012 and 2013 comprised of the following:


2012 2013 2013Service costs – benefi ts earned during the year ........................................................ ¥ 6,096 ¥ 6,014 $ 63,945Interest cost on projected benefi t obligation ............................................................... 3,977 3,791 40,308Expected return on plan assets .................................................................................. (2,168) (2,101) (22,339)Amortization of actuarial differences .......................................................................... 6,805 5,332 56,693Amortization of prior service cost ............................................................................... (828) (861) (9,155)Special retirement benefi ts and others ....................................................................... 32 15 160Severance and retirement benefi t expenses .............................................................. ¥ 13,914 ¥ 12,190 $ 129,612

The discount rates used by the Company and its consolidated domestic subsidiaries for the years ended March 31, 2012 and 2013 were1.0% to 2.5% and 0.5% to 2.0%, respectively. The rates of expected return on the plan assets used by the Company and its consolidated domestic subsidiaries for the years ended March 31, 2012 and 2013 were 1.0% to 3.5%. The estimated amount of all retirement benefi ts to be paid at the future retirement date was allocated equally to each service year using the estimated number of total service years. Actuarial gains and losses were recognized using mainly the straight-line method over 1 to 10 years. Prior service costs were amortized using mainly the straight-line method over 1 to 10

years, the period within the estimated average remaining service life of the employees.As from April 1, 2013, the Company will transfer a part of the future service benefi t of the funded non-contributory pension plan to defi ned-contribution pension plan. By this amendment, the projected benefi t obligations decreased by ¥11,841 million ($125,901 thousand) and the past service costs occurred as a negative amount of ¥11,841 million ($125,901 thousand).The past service costs occurred by the amendment are amortized using the straight-line method over 10 years as from the revision date of December 25, 2012.

13. Net assetsNet assets comprise three subsections; which are shareholders’

equity, accumulated other comprehensive income and minority 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 fi nancial statements of the Company in accordance with the Law.

The number of treasury stock owned by the Company, consolidated subsidiaries and affi liated companies adopting the equity method as of March 31, 2012 and 2013 were 704 thousand shares and 1,213 thousand shares, respectively.

14. Lease TransactionsOperating leases

(a) LesseeFuture minimum lease payments as of March 31, 2012 and 2013 were as follows:

Millions of YenThousands of U.S.

Dollars2012 2013 2013

Due within one year ........................................................................................................ ¥ 5,012 ¥ 4,190 $ 44,551Due after one year .......................................................................................................... 34,333 30,159 320,670

Total ..................................................................................................................... ¥ 39,345 ¥ 34,349 $ 365,221




(b) LesserFuture minimum lease receipts as of March 31, 2012 and 2013 were as follows:


Dollars2012 2013 2013

Due within one year ........................................................................................................ ¥ 4,024 ¥ 3,624 $ 38,533Due after one year .......................................................................................................... 28,624 25,577 271,951

Total ..................................................................................................................... ¥ 32,648 ¥ 29,201 $ 310,484

15. Derivative Transactions(1) Derivative transactions of the Company and its consolidated subsidiaries as of March 31, 2012 and 2013 were as follows:

(a) Derivative transactions which were not accounted for by the hedge accounting・Corresponding derivative transactions at March 31, 2012 and 2013 were not applicable.

(b) Derivative transactions which were accounted for by the hedge accounting・Currency related derivatives: Main items which hedged by forward foreign exchange contracts are trade payable: accounts.The following forward foreign exchange contracts which meet certain conditions, the hedged items are stated by the forward foreign exchange rates.

1) The year ended March 31, 2012 (from April 1, 2011 to March 31, 2012):

Millions of Yen2012

Contract amountTotal Due after one year Market value

Forward contracts:To buy US Dollar ......................................................................................................... ¥ 75 ¥ - ¥ 68To buy Euro ................................................................................................................ 83 - 71To buy Turkish lira ....................................................................................................... 400 - 324To buy Thai Baht ......................................................................................................... 16 - 16

Notes 1: Market value is estimated based on actual cost and other terms in connection with each derivative transaction, or marked to market by the originating dealer.

2) The year ended March 31, 2013 (from April 1, 2012 to March 31, 2013):Not applicable.

・Interest Rate-Related Derivatives:Main items which hedged by interest rate swap contracts are Long-term debt.The following interest rate swaps are used as hedges, the net amounts to be paid or received is added to or deducted from interests.

(1) Special treatment of swap

Millions of Yen2012


Interest rate swapsreceive fl oating rate, pay fi xed rate ............................................................................. ¥ 162,204 ¥ 106,397 ¥ -

Millions of Yen2013


Interest rate swapsreceive fl oating rate, pay fi xed rate ............................................................................. ¥ 153,673 ¥ 127,492 ¥ -




Interest rate swapsreceive fl oating rate, pay fi xed rate ............................................................................. $ 1,633,950 $ 1,355,577 $ -

Notes 1: Market value of interest rate swaps was included in the corresponding hedged long-term debt (long term debt due within one year was considered as short-term debt) as those interest rate swaps were recorded as an adjustment to the corresponding hedged long-term debt under the special treatment.

(2) Deferred swap

Millions of Yen2013


Interest rate swapsreceive fl oating rate, pay fi xed rate ............................................................................. ¥ 20,000 ¥ 20,000 ¥ (316)



Interest rate swapsreceive fl oating rate, pay fi xed rate ............................................................................. $ 212,653 $ 212,653 $ (3,360)

Notes 1: Market value is estimated based on actual cost and other terms in connection with each derivative transaction, or marked to market by the originating dealer.

16. Asset retirement obligations(1) General information on the asset retirement obligations is as follows:Asset retirement obligations are based on the estimated future restoration obligations pursuant to the offi ce rental agreements and

future obligations for asbestos removal pursuant to the Ordinance on Prevention of Health Impairment due to Asbestos.

(2) Calculation method of the asset retirement obligationsAsset retirement obligations are calculated based on the estimated period of use depending on the period of useful life of the relevant tangible fi xed assets and discounted by rates of 0.7-2.3% which are

estimated based on the rate of return on government bonds for the each period mainly corresponding to the useful life.

(3) Asset retirement obligations as of March 31, 2012 and 2013 were as follows:


2012 2013 2013As of April 1, 2011 and 2012 ........................................... ¥ 1,202 ¥ 1,213 $ 12,898New obligations by acquisition of fi xed assets ............... 12 16 170Changes in estimated obligations and accretion ............ 24 24 255Settlement payment........................................................ (1) (14) (149)Others ............................................................................. (24) (16) (170)

As of March 31, 2012 and 2013 ¥ 1,213 ¥ 1,223 $ 13,004

Notes 1: The balance of the asset retirement obligations as of April 1, 2010 was determined by application of ASBJ Statement No.18, Accounting Standard for Asset Retirement Obligations, and ASBJ Guidance No.21, Guidance on Accounting Standard for Asset Retirement Obligations (both issued by

the ASBJ on March 31, 2008).

(4) Asset retirement obligations which were not recognized on the consolidated balance sheet were as follows:The Company and its certain consolidated subsidiaries have obligation for future restoration mainly relating to the head offi ces, assumed pursuant to the offi ce rental agreements. However, they did not recognize these obligations because they could not specify

the timing of its pursuance and estimate reasonably the amounts of these obligations for estimated period of use of the relevant tangible fi xed assets was uncertain and no plan or expectation of relocation according to their business strategy was existed.



17. Related Party TransactionsTransactions of the Company’s consolidated subsidiaries with related individuals, including shareholders and directors, for the years ended March 31, 2012 and 2013 were as follows:

Millions of Yen2012

(a) Name(b) Attribution(c) Capital (Million yen)(d) Equity ownership percentage of the Company

Transactions during the year ended March 31, 2012 Balance at the end of the year

Description of transaction Amount Amount Amount

(a) Mamoru Tomioka(b) The Director of Yuraku Real Estate Co., LTD.(c) -(d) 0.00%

Sale of condominium apartment by Yuraku Real Estate Co., Ltd.

¥ 15 - ¥ -

(a) Keisuke Tomioka(b) Close relative of The Director of Yuraku Real Estate

Co., LTD.(c) -(d) -


¥ 15 - ¥ -

Notes 1: Consumption taxes were not included in the transaction amounts. 2: Business conditions and policy of business conditions (1) Transaction condition of sale of condominium apartment was determined properly considering normal market prices as in the case of other

general transactions. (2) Mamoru Tomioka, the director of YURAKU REAL ESTATE CO., LTD. and his close relative, Keisuke Tomioka are joint owners of the

condominium apartment.

Millions of Yen2013



Description oftransaction Amount Amount Amount

(a) So Akune(b) The representative director of the Corporation(c) -(d) 0.01%

Sale of condominium apartment by Taisei Yuraku Real Estate Co., Ltd.

¥ 20 - ¥ -

(a) Ken Akune(b) Close relative of the representative director of the

Corporation(c) -(d) -

Sale of condominium apartment by Taisei Yuraku Real Estate Co., Ltd.

¥ 21 - ¥ -

(a) Keita Oomi(b) Close relative of the operating offi cer of the Corporation(c) -(d) -

Housing construction by Taisei Housing Co., Ltd.

¥ 20 - ¥ -

(a) Tadao Sakai(b) Close relative of the operating offi cer of the Corporation(c) -(d) -


¥ 42 - ¥ -

(a) Noriko Sakai(b) Close relative of the operating offi cer of the Corporation(c) -(d) -


¥ 18 - ¥ -

(a) Takashi Hayashi(b) The representative director of Taisei Yuraku Real Estate

Co., Ltd.(c) -(d) 0.00%


¥ 27 - ¥ -



Thousands of U.S. dollars2013



Description oftransaction Amount Amount Amount

(a) So Akune(b) The representative director of the Corporation(c) -(d) 0.01%


$ 213 - $ -

(a) Ken Akune(b) Close relative of the representative director of the



$ 223 - $ -

(a) Keita Oomi(b) Close relative of the operating offi cer of the



$ 213 - $ -

(a) Tadao Sakai(b) Close relative of the operating offi cer of the



$ 447 - $ -

(a) Noriko Sakai(b) Close relative of the operating offi cer of the



$ 191 - $ -

(a) Takashi Hayashi(b) The representative director of Taisei Yuraku Real

Estate Co., Ltd.(c) -(d) 0.00%


$ 287 - $ -

Notes 1: Consumption taxes were not included in the transaction amounts. 2: Business conditions and policy of business conditions (1) Transaction condition of sale of condominium apartment was determined properly considering normal market prices as in the case of other

general transactions. (2) So Akune, the representative director of the Corporation. and his close relative, Ken Akune are joint owners of the condominium apartment. (3) Transaction condition including the contract price 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. (4) Tadao Sakai and Noriko Sakai jointly ordered the housing construction.

18. Segment Information(1) Segment Information(a) General information on reportable segmentsEach reportable segment of the Companies is the business unit in the Companies, which discrete fi nancial 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 on each reportable segment.

The headquarters in the head offi ce are established by the products of construction and the services. Each headquarter proposes comprehensive domestic and overseas strategies with respect to products and services, and operates its business activities.

The Companies consists of segments identifi ed by products and services based on the headquarters, and identifi es the three segments, “Civil engineering,” “Construction,” and “Real estate” as reportable segments. “Civil engineering” is the business related to civil engineering, etc. “Construction” is the business related to the construction of building and housing, etc. And “Real estate” is the business related to resale and rental of land and buildings, etc.

(b) Basis of measurement on reported segment net sales, profi t or loss and other material itemsThe accounting methods for each reportable segment are the same as that set forth in the “Summary of Signifi cant Accounting Policies”. The operating income (loss) is presented based on the operating income (loss) before recognizing the amortization of goodwill in the Consolidated Statement of Income. In addition, conditions of intersegment transactions and transfers are determined considering market prices as in the case of other general transactions.

The assets are not allocated to the segments. However, the corresponding depreciation expenses are allocated to the segments according to the rational standards such as the conditions of assets use.




(c) Information on reported segment net sales, profi t or loss and other material itemsSegment information as for the years ended March 31, 2012 and 2013 were as follows:

TASEI SERVICE Co., Ltd, merged the YURAKU REAL ESTATE Co., Ltd, previously classifi ed to “Other” and “Real estate” segment respectively, and changed the name to TAISEI YURAKU REAL ESTATE Co., Ltd.According to this, TAISEI YURAKU REAL ESTATE Co., Ltd is classifi ed to “Real estate” as from the year ended March 31, 2013, and previous segment information above is reclassifi ed.

Millions of Yen2012

Reportable segmentsCivil

engineering Construction Real estate Others Total Adjustments ConsolidatedNet sales:

Customers .......................... ¥ 333,527 ¥ 856,909 ¥ 122,693 ¥ 10,374 ¥ 1,323,504 ¥ - ¥ 1,323,504Intersegment ....................... 23,869 36,188 14,596 2,010 76,663 (76,663) -

Total................................. 357,396 893,097 137,289 12,384 1,400,166 (76,662) 1,323,504Operating income ................... ¥ 13,148 ¥ 30,889 ¥ (8,728) ¥ 328 ¥ 35,636 ¥ 850 ¥ 36,486

Depreciation expense............. ¥ 3,026 ¥ 2,917 ¥ 1,997 ¥ 114 ¥ 8,054 ¥ (52) ¥ 8,002Increase (decrease) in allow-ance for losses on construc-tion contracts ..........................

¥ (365) ¥ 13,830 ¥ - ¥ - ¥ 13,465 ¥ - ¥ 13,465

Notes 1: “Others” presented businesses such as real estate managing business, incidental business to the construction business, leisure business, and other service businesses, which are not included in reportable segments.

2: Adjustment amount of operating income was ¥850 Million, which included ¥908 Million of intersegment elimination, etc and ¥(57) Million of the amount of amortization of goodwill.

3: Segment operating income was adjusted against operating income of Consolidated Statement of Income.

Millions of Yen2013



Customers .......................... ¥ 358,327 ¥ 915,470 ¥ 132,990 ¥ 9,708 ¥ 1,416,496 ¥ - ¥ 1,416,496Intersegment ....................... 22,746 44,060 6,087 2,360 75,253 (75,253) -

Total................................. 381,073 959,530 139,077 12,069 1,491,749 (75,253) 1,416,496Operating income ................... 9,681 19,236 ¥ 5,690 ¥ 465 ¥ 35,072 534 35,606

Depreciation expense............. ¥ 2,625 ¥ 2,403 ¥ 1,816 ¥ 73 ¥ 6,917 ¥ (51) ¥ 6,866Increase (decrease) in allow-ance for losses on construc-tion contracts ..........................

¥ 2,499 ¥ 4,694 ¥ - ¥ - ¥ 7,193 ¥ - ¥ 7,193




Customers .......................... $ 3,809,963 $ 9,733,864 $ 1,414,035 $ 103,222 $ 15,061,095 $ - $ 15,061,095Intersegment ....................... 241,850 468,474 64,721 25,093 800,138 (800,138) -

Total................................. 4,051,813 10,202,339 1,478,756 128,325 15,861,233 (800,138) 15,061,095Operating income ................... $ 102,935 $ 204,530 $ 60,500 $ 4,944 $ 372,908 $ 5,678 $ 378,586

Depreciation expense............. $ 27,911 $ 25,550 $ 19,309 $ 776 $ 73,546 $ (542) $ 73,004Increase (decrease) in allow-ance for losses on construc-tion contracts ..........................

$ 26,571 $ 49,910 $ - $ - $ 76,481 $ - $ 76,481

Notes 1: “Others” presented businesses such as real estate managing business, incidental business to the construction business, leisure business, and other service businesses, which are not included in reportable segments.

2: Adjustment amount of operating income was ¥534 Million ($5,678thousand), which included ¥591 Million ($6,284 thousand) of intersegment elimination, etc and ¥ (57) Million ($ (606) thousand) of the amount of amortization of goodwill.

3: Segment operating income was adjusted against operating income of Consolidated Statement of Income.


(2) Related Information(a) Information about products and servicesThe information about products and services is included in “(c) Information about reported segment net sales, profi t or loss and other material items” of “(1) Segment Information” for the years ended March 31, 2012 and 2013.

(b) Information about geographic areas・Net salesThe information about net sales was not shown for the years ended March 31, 2012 and 2013 since sales to unaffi liated customers in Japan were more than 90% of net sales of Consolidated Statement of Income.・Property and equipmentThe information about property and equipment was not shown for the years ended March 31, 2012 and 2013 since the amount of property and equipment that located in Japan was more than 90% of the amount of property and equipment of Consolidated Balance Sheet.

(c) Information about major customersThe information about major customers was not shown for the years ended March 31, 2012 and 2013 since net sale to any customer was less than 10% of the amount of net sales of Consolidated Statement of Income.

(d) Information about impairment loss on fi xed assets by reported segment for the years ended March 31, 2012 and 2013 were as follows:

Millions of Yen2012

Reportable segments

Civilengineering Construction Real estate Others

Eliminationand/or

corporate TotalImpairment loss of fi xed assets .................................. ¥ 589 ¥ 811 ¥ 11,063 ¥ - ¥ (289) ¥ 12,174

Millions of Yen2013

Reportable segments


Eliminationand/or

corporate TotalImpairment loss of fi xed assets .................................. ¥ 187 ¥ 234 ¥ 981 ¥ - ¥ - ¥ 1,402


Reportable segments


Eliminationand/or

corporate TotalImpairment loss of fi xed assets .................................. $ 1,988 $ 2,488 $ 10,431 $ - $ - $ 14,907

(e) Information about the amount of amortization and unamortized balance of goodwill by reported segment for the years ended March 31, 2012 and 2013 were as follows:

Millions of Yen2012

Reportable segments


Eliminationand/or

corporate TotalAmortization of goodwill.............................................. ¥ - ¥ - ¥ 57 ¥ - ¥ - ¥ 57Unamortized balance of goodwill................................ ¥ - ¥ - ¥ 172 ¥ - ¥ - ¥ 172

Millions of Yen2013

Reportable segments


Eliminationand/or

corporate TotalAmortization of goodwill.............................................. ¥ - ¥ - ¥ 57 ¥ - ¥ - ¥ 57Unamortized balance of goodwill................................ ¥ - ¥ - ¥ 115 ¥ - ¥ - ¥ 115





Reportable segments


Eliminationand/or

corporate TotalAmortization of goodwill.............................................. $ - $ - $ 606 $ - $ - $ 606Unamortized balance of goodwill................................ $ - $ - $ 1,223 $ - $ - $ 1,223

(f) Information about gains on negative goodwill by reported segmentInformation about gains on negative goodwill for the years ended March 31, 2012 and 2013 were not applicable.

19. Contingent Liabilities and CommitmentThe Company and its consolidated subsidiaries were contingently liable as guarantors for borrowings of companies, which were not consolidated, in the amount of ¥6,833 million and ¥6,794 million ($72,238 thousand) at March 31, 2012 and 2013, respectively.

In addition, the Company and its consolidated subsidiaries were contingently liable to invest in the specifi c purpose companies for their repayment and other obligations of borrowings in the amount of ¥18,380 million and ¥19,680 million ($209,250 thousand) at March 31, 2012 and 2013, respectively. The amounts indicated their shares of the additional investment obligations.

20. Revaluation Reserve for landIn the year ended March 31, 2002, certain consolidated domestic subsidiaries executed revaluation of their land owned 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 values before revaluation were 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 values of the revaluated land over the fair values as of March 31, 2012 and 2013 was ¥6,612 million and ¥7,290 million ($ 77,512 thousand), respectively (Including the excess amount of ¥1,475 million and ¥1,693 million ($18,001 thousand) related to investment and rental property at March 31, 2012 and 2013, respectively.)

21. Research and Development ExpensesResearch and development expenses, which were included in selling, general and administrative expenses and cost of sales, amounted to

¥8,530 million and ¥8,960 million ($95,268 thousand) for the years ended March 31, 2012 and 2013, respectively.

22. Impairment of fi xed assetsImpairment losses on fi xed assets for the years ended March 31, 2012 and 2013 consisted of the following:

2012Use Type of assets LocationAssets for business use.......................................... Building, structure, and others Miyagi and 4 others (5 lots)Leased assets ........................................................ Building and others Tokyo (1 lot)Assets reclassifi ed from

business purpose to trading purpose .................. Land, building Tokyo and 7others (8 lots)

Dormant assets ...................................................... Land, building Gifu and other (2 lots)


2013Use Type of assets LocationAssets for business use.......................................... Land, Building, structure, and others Tokyo and 24 others (25 lots)Assets reclassifi ed from

business purpose to trading purpose .................. Land, building Tokyo and 3 others (4 lots)

Dormant assets ...................................................... Land, building and others Hokkaido and 3 other (4 lots)

The Company and its consolidated domestic subsidiaries grouped their fi xed assets based on units, for which decisions for investments were made. Book values of the fi xed assets listed above were reduced to recoverable amounts and impairment losses were recognized as follows:


Dollars2012 2013 2013

Buildings and structures ................................................................................................. ¥ 1,777 ¥ 322 $ 3,424Land................................................................................................................................ 10,132 1,071 11,388Others ............................................................................................................................. 265 9 95

Total ..................................................................................................................... ¥ 12,174 ¥ 1,402 $ 14,907

The recoverable amount of the fi xed assets for the years ended March 31, 2012 and 2013 were their net realizable values mainly based

on amounts determined by valuations made in accordance with real estate appraisal standards.

23. Per share dataNet assets worth per share and net income per share as of and for the years ended March 31, 2012 and 2013 were as follows:

Yen U.S. Dollars2012 2013 2013

Net assets per share .................................................................................................. ¥ 255.60 ¥ 299.84 $ 3.188Basic

Net income per share ................................................................................................. 1.04 17.60 0.187Diluted

Net income per share ................................................................................................. - - -

Diluted net income per share for the year ended March 31, 2013 was not presented because the Company had no shares with dilutive effects.

Calculation bases for basic net income per share and diluted net income per share for the years ended March 31, 2012 and 2013 were as follows:


Dollars2012 2013 2013

Basic Net income per shareNet income ................................................................................................................. ¥ 1,181 ¥ 20,051 $ 213,195Net income not available to common stock holders ................................................... - - -Net income available to common stock ...................................................................... 1,181 20,051 213,195Average common stock outstanding (in thousands share) ........................................ 1,139,576 1,139,213

Diluted Net income per shareAdjustment made on net income ................................................................................ - - -(interest paid with tax adjustment) ............................................................................. - - -Increase of common stocks(in thousands share) ....................................................... - - -Shares resulting in an anti-dilutive effect (in thousands share) .................................. - - -



24. Comprehensive incomeAmounts reclassifi ed to net income in the current period that were recognized in other comprehensive income in the current or previous periods and tax effects for each component of other comprehensive income were as follows:

Millions of Yen Thousands of U.S. Dollars

2012 2013 2013Unrealized holding gains on securities

Amount incurred ..................................................................................................... ¥ 8,426 ¥ 55,899 $ 594,354Recycling ................................................................................................................. (1,053) (20) (213)

Before Tax ............................................................................................................ 7,373 55,879 594,141Tax effect ............................................................................................................. (2,214) (19,889) (211,472)Unrealized holding gains on securities, net of taxes............................................ 5,159 35,990 382,669

Unrealized losses on hedging derivativesAmount incurred ..................................................................................................... (179) (341) (3,626)Recycling ................................................................................................................. 312 120 1,276

Before Tax ............................................................................................................ 133 (221) (2,350)Tax effect ............................................................................................................. (57) 77 819Unrealized losses on hedging derivatives, net of taxes ....................................... 76 (144) (1,531)

Revaluation reserve for landTax effect ................................................................................................................. 848 - -

Foreign currency translation adjustmentsAmount incurred ..................................................................................................... 18 279 2,967Recycling ................................................................................................................. 403 (152) (1,617)

Foreign currency translation adjustments, net of taxes ....................................... 421 127 1,350

Share of other comprehensive income of associates accounted for using equity method

Amount incurred ..................................................................................................... 35 99 1,053

Total other comprehensive income ........................................................... ¥ 6,469 ¥ 36,072 $ 383,541

25. Subsequent EventCash dividendsThe following appropriation of retained earnings at March 31, 2013 was approved at the annual meeting of the Company’s shareholders held on June 27, 2013.

Millions of Yen Thousands of U.S. Dollars

Cash dividends, ¥2.5 ($0.027) per share ............................................................................................................... ¥ 2,848 $ 30,282




Independent Auditors’ Report

CSR Promotion Section,

Corporate Communication Department, Corporate

Planning Offi ce, Taisei Corporation

E-mail：[email protected]

URL：http://www.taisei.co.jp

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annual report 2013 - 大成建設株式会社 · fy 2012 (1st april 2012 to 31st march 2013) ......

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