Annual Report 2020
P r o f i l e
Okumura was established in 1907 based on two key principles enshrined in the corporate mottos "steadfast management" and "sincere operation."The steady growth achieved over the years has been made possible through the unflagging support of our customers.
Okumura's main business activities include civil engineering projects for railways, roads, power station facilities, sewage and water works, and others. In the area of construction are projects such as houses, public facilities, medical facilities, and office buildings. The Company has developed technology at the highest level, with achievements including the seismic isolation system used to construct Japan's first earthquake-absorbing building. In the area of environment-related technology, Okumura has developed techniques for 100% recycling of demolished concrete, and natural greening of concrete surfaces on buildings.
Okumura understands what an important mission it is to provide a better environment for the future. Accordingly, the Company is dedicated to contributing to meaningful social infrastructure investment and to always being a corporation regarded highly by society. It will achieve this by continuing to develop as an all-around construction company based on steadfast business management.
C o n t e n t s
1 | Financial Highlights | 12 | Consolidated Statement of Changes in Equity |
2 | To Our Shareholders | 13 | Consolidated Statement of Cash Flows |
4 | Review of Operations | 14 | Notes to Consolidated Financial Statements |
6 | Topics | 34 | Independent Auditor's Report |
8 | Consolidated Balance Sheet | 36 | Breakdown of Orders (Nonconsolidated) |
10 | Consolidated Statement of Income | 37 | Network |
11 | Consolidated Statement of Comprehensive Income | 38 | Board of Directors / Investor Information |
Financial Highlights
Okumura Corporation Annual Report 2020 | ||||||||
For the years ended March 31 | 2018 | 2019 | 2020 | 2020 | ||||
Consolidated: | Millions of Yen | Thousands of | ||||||
U.S. Dollars | ||||||||
Net sales | ¥223,928 | ¥220,884 | ¥226,372 | $2,080,051 | ||||
Operating income | 15,854 | 13,717 | 11,517 | 105,825 | ||||
Net income attributable to owners of the parent | 15,164 | 12,314 | 9,796 | 90,008 | ||||
Total assets*1 | 313,864 | 297,691 | 294,919 | 2,709,907 | 1 | |||
Total equity | 167,724 | 168,401 | 156,112 | 1,434,456 | ||||
Per Share: | Yen | U.S. Dollars | ||||||
Basic net income*2 | ¥380.65 | ¥312.93 | ¥258.01 | $2.37 | ||||
Cash dividends applicable to the year*2 | 184.00 | 153.00 | 143.00 | 1.31 |
*1 "Partial Amendments to Accounting Standard for Tax Effect Accounting" (ASBJ Statement No. 28, February 16, 2018), etc. have been applied from the beginning of the fiscal period of March 2019. Accordingly, the summaries of business results for the fiscal period of March 2018 represent performance results after retrospectively applying the said accounting standards, etc.
*2 Per share figures have been restated, as appropriate, to reflect the consolidation of shares at the rate of five shares to one share of the Company's common stock effective October 1, 2017.
Note: The U.S. dollar amounts included herein are presented solely for convenience of the reader. Such dollar amounts have been translated from yen at the approximate exchange rate in Tokyo on March 31, 2020, of ¥108.83=$1.
Net Sales
(Millions of Yen)
250,000 | ||
200,000 | ||
150,000 | ||
100,000 | ||
50,000 | ||
0 | ||
2018 | 2019 | 2020 |
Net income attributable to owners of the parent
(Millions of Yen)
20,000 | ||
16,000 | ||
12,000 | ||
8,000 | ||
4,000 | ||
0 | ||
2018 | 2019 | 2020 |
TotalEquity
(Millions of Yen)
200,000 | ||
160,000 | ||
120,000 | ||
80,000 | ||
40,000 | ||
0 | ||
2018 | 2019 | 2020 |
Disclaimer Regarding Forecasts and Projections
This Annual Report includes forecasts, projections and other predictive statements that represent Okumura's assumptions and expectations in light of currently available information. These forecasts, etc., are based on industry trends, circumstances involving clients and other factors, and involve risks, variables and uncertainties. The Okumura Group's actual performance results may differ from those projected in this Annual Report. Consequently, no guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained herein.
To Our Shareholders
We would like to thank our shareholders for their continuing support and encouragement and wish each one of them the greatest success in their endeavors.
A general overview of our business performance for the fiscal period of March 2020 (April 1,
2 2019 to March 31, 2020) is provided below.
Results for the Year Ended March 31, 2020
During the period under review, amid the continuing stagnation of the overseas economies, the downward pressure of the consumption tax hike and the impact of natural disasters together with the spread of the novel coronavirus (COVID-19) resulted in the rapid slowdown of the Japanese economy. In this climate, the construction industry was able to operate under a generally stable business environment, as robust construction investments, mainly in public investments, were maintained.
In these circumstances, the Company's consolidated net sales increased 2.5% year on year to ¥226,372 million. Meanwhile, as a result of factors such as the deterioration of the gross profit from construction work, despite the improvement of the gross profit from civil engineering work, consolidated gross profit decreased 7.8% year on year to ¥29,089 million, operating income decreased 16.0% year on year to ¥11,517 million, and net income attributable to owners of the parent decreased 20.5% year on year to ¥9,796 million, due to the deterioration of extraordinary income/loss.
Dividend for the Year Ended March 31, 2020
The Company decided to pay a dividend of ¥143.00 per share (interim dividend of ¥41.00, year-end dividend of ¥102.00) for the period ended March 31, 2020 based on its basic policy regarding profit sharing.
The Okumura Group, in an effort to ensure proactive investments for the achievement of the "Vision toward 2030," which was formulated in April 2019, and the steady return of profits to our shareholders, has revised its measures for shareholder returns from this term as follows.
Measures for Shareholder Returns from the Fiscal Year Ended March 31, 2020
Total payout ratio*1 (consolidated): 50% or more
Payout ratio (consolidated): 30% or more*2
Flexibly purchase treasury stock
Introduce the interim dividend system
*1: Total payout ratio = (Total dividends + Total purchase of treasury stock) / Net income attributable to owners of the parent
*2: Regardless of the Company's business performance, set a minimum dividend of ¥45 per share as the Company has stably paid thus far
Okumura Corporation Annual Report 2020
3
Medium Term Business Plan
The outlook for the Japanese economy is expected to remain harsh for the time being, given the continuing slowdown of internal and external demand as a result of the effects of the spread of COVID-19. The construction industry expects to maintain a certain level of robustness in public investments thanks to the effects of government policies. However, with no end in sight to the COVID-19 pandemic, and due to the uncertainties surrounding corporate capital investment trends and the impact of the suspension of works and other events on business performance, the situation will continue to be precarious.
Under these circumstances, the Okumura Group is committed to responding flexibly to prevent the further spread of COVID-19 while continuing its business. Moreover, as the Group looks ahead to the "Vision toward 2030," it will engage in initiatives to "increase corporate value,""expand business domains," and "utilize human resources" based on the "Medium Term Business Plan (FY2019-FY2021)."
Specifically, in the construction business, we will continue to work on disaster-prevention/ mitigation areas where demand is expected to grow going forward, maintenance and administration, strengthening renewal area, promoting technological development that contributes to enhancing our competitive edge in the industry and our productivity. We also enhance our capabilities to propose solutions through design and construction that meet diverse customer needs. In the real estate business, we will strengthen initiatives to acquire excellent and profitable real estate and boost business development, while at the same making efforts to utilize our stock through such means as renovation projects in consideration of the environment. Additionally, we will aim to diversify our earnings base and proactively engage in the promotion of the PPP/concession and new businesses such as energy business. Furthermore, we will advance workstyle reforms by firmly establishing the system of 8 days holiday for every 4 weeks at construction sites, encouraging to take leave and holidays and working to reduce overtime.
The Company looks forward to the continued support and guidance of our shareholders.
June 2020
Takanori Okumura
President and Representative Director
Attachments
- Original document
- Permalink
Disclaimer
Okumura Corporation published this content on 20 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 August 2021 07:23:02 UTC.