Disclaimer: This financial information, a digest of Taisei Corporation’s “Consolidated Financial Results for the Fiscal Year Ended March 31, 2025” (“Kessan Tanshin”) disclosed at the Tokyo Stock Exchange on May 13, 2025 was translated into English and presented solely for the convenience of non-Japanese speaking users. If there is any discrepancy between Japanese “Kessan Tanshin” and this document, Japanese “Kessan Tanshin” will prevail.
May 13, 2025
Listed company name: Taisei Corporation
Stock exchange listings: Tokyo Stock Exchange, Prime Market Nagoya Stock Exchange, Premier Market
Stock code: 1801
Location of headquarters: Tokyo, Japan
Website: https://www.taisei.co.jp/
Representative: Yoshiro Aikawa, President and Chief Executive Officer
Contact: Yuichi Nakano, General Manager of Accounting Department
TEL: 81-3-3348-1111 (from overseas)
Scheduled date of annual general meeting of shareholders: June 24, 2025 Scheduled date for dividend payment June 25, 2025 Scheduled date to file annual securities report: June 17, 2025 Supplementary materials for financial summaries: Yes
Financial results briefing: Yes (for analysts and institutional investors)
- Consolidated financial results for the fiscal year ended March 31, 2025 (FY2024)
(From April 1, 2024 to March 31, 2025)
- Operating results (cumulative total) (Millions of yen, rounded down) (Percentages indicate changes from the same period in the previous fiscal year.)
Net sales Operating income Ordinary income Net income attributable
%
%
%
%
FY2024 (Full year-end) 2,154,223
22.1
120,160
353.8
134,505
245.7
123,824
207.5
FY2023 (Full year-end) 1,765,023
7.4
26,480
(51.6)
38,910
(38.4)
40,272
(14.5)
to owners of parent
As of March 31, 2025
As of March 31, 2024
(Note) Comprehensive income:
FY2024 (Full year-end)
46,695 million yen
(68.1 %)
FY2023 (Full year-end)
146,396 million yen
300.0 %
Net income per Diluted net income share per share
Return on equity
Ratio of ordinary income to total
assets
Ratio of operating income
to net sales
yen yen
FY2024 (Full year-end)
As of March 31, 2025
682.78
-
13.8
5.4
5.6
FY2023 (Full year-end)
As of March 31, 2024
215.75
-
4.6
1.7
1.5
(Reference) Equity in earnings in affiliates: FY2024 (Full year-end): 10,225 million
FY2023 (Full year-end): 4,195 million
- Financial position (Millions of yen, rounded down)
Total assets Net assets Equity ratio Net assets per share
% yen
As of March 31, 2025 2,428,837 900,699 35.7 5,041.43
- Operating results (cumulative total) (Millions of yen, rounded down) (Percentages indicate changes from the same period in the previous fiscal year.)
As of March 31, 2024 2,583,641 961,000 36.0 5,039.98
(Reference) Shareholders’ equity: As of March 31, 2025 866,188 million yen
As of March 31, 2024 929,334 million yen
- Cash flows (Millions of yen, rounded down)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
FY2024 (Full year-end) (13,841) | 10,531 | (133,769) | 295,963 |
FY2023 (Full year-end) 40,611 | (138,747) | 109,392 | 430,754 |
As of March 31, 2025
As of March 31, 2024
- Dividends (Millions of yen, rounded down)
First quarter-end
Dividends per share
Interim- Third
end quarter-end
(yen)
Year-end
Total (Full year)
Total dividends (annual)
Dividend Ratio of payout ratio dividends to
(consolidated) equity (consolidated)
yen
yen
yen
yen
yen
% %
FY2023
-
65.00
-
65.00
130.00
24,126
60.3
2.8
FY2024
-
65.00
-
145.00
210.00
36,817
30.8
4.2
FY2025
(forecast)
-
75.00
-
75.00
150.00
30.8
- Consolidated results forecast for the fiscal year ending March 31, 2026 (FY2025)
(From April 1, 2025 to March 31, 2026)
(Millions of yen, rounded down) (Percentages indicate the rate of change from the same period of the previous fiscal year)
Net sales Operating income Ordinary income Net income attributable
to owners of parent
Net income per share
% | % | % | % | yen | |||||
Full fiscal year | 1,960,000 | (9.0) | 101,000 | (15.9) | 105,000 | (21.9) | 80,000 | (35.4) | 487.61 |
*Notes
Significant changes in the scope of consolidation during the period
(Changes in specified subsidiaries accompanying changes in scope of consolidation): Yes Newly included: None
Excluded: One company: TS Investment LLC No. 1
Changes in accounting principles, changes in accounting estimates and restatements
Changes in accounting principles due to revisions to accounting standards, etc.: Yes
Changes due to accounting principles other than (i): None
Changes in accounting estimates: None
Restatements: None
(Note) For details, please refer to page 19 of the Attachments, “4. Consolidated Financial Statements (5) Notes to consolidated financial statements (Changes in accounting policies).”
Number of shares outstanding (common stock)
Number of shares outstanding at the end of period (including treasury stock) As of March 31, 2025 183,166,472 shares
As of March 31, 2024 184,795,472 shares
Number of treasury stock at the end of period
As of March 31, 2025 11,352,272 shares
As of March 31, 2024 403,160 shares
Average number of shares during the period (quarterly cumulative total) FY2025 (Full year-end) 181,353,961 shares
FY2024 (Full year-end) 186,667,182 shares
(Note) The number of treasury stock at the end of the period and number of treasury stock excluded for calculating average number of shares during the period include the Company’s shares held by the Board Benefit Trust (BBT).
(As of March 31, 2025: 98,400 shares, As of March 31, 2024: 99,400 shares)
Reference: Summary of Non-consolidated financial statements- Non-consolidated financial results for the fiscal year ended March 31, 2025 (FY2024)
(From April 1, 2024 to March 31, 2025)
- Operating results (Millions of yen, rounded down)
%
%
%
%
FY2024 (Full year-end) 1,637,823
17.5
80,279
-
87,104
531.9
94,744
318.4
FY2023 (Full year-end) 1,393,667
5.1
5,522
(86.7)
13,784
(72.3)
22,643
(38.7)
(Percentages indicate changes from the same period in the previous fiscal year.) Net sales Operating income Ordinary income Net income
As of March 31, 2025
As of March 31, 2024
Net income per share Diluted net income per share
yen yen
FY2024 (Full year-end) As of March 31, 2025
522.40
-
FY2023 (Full year-end)
As of March 31, 2024
121.30 -
- Financial position
(Millions of yen, rounded down) Total assets Net assets Equity ratio Net assets per share
%
%
%
yen
As of March 31, 2025
1,948,640
593,481
30.5
3,453.60
As of March 31, 2024
2,057,710
669,646
32.5
3,631.64
(Reference) Shareholders’ equity:
As of March 31, 2025
As of March 31, 2024
593,481 million yen
669,646 million yen
- Operating results (Millions of yen, rounded down)
- Non-consolidated results forecast for the fiscal year ending March 31, 2026 (FY2025)
(From April 1, 2025 to March 31, 2026) (Millions of yen, rounded down) (Percentages indicate the rate of change from the same period of the previous fiscal year)
Net sales Operating income Ordinary income Net income attributable
to owners of parent
Net income per share
% | % | % | % | yen | ||||
Full fiscal year | 1,410,000 (13.9) | 71,000 | (11.6) | 74,000 | (15.0) | 63,000 | (33.5) | 383.92 |
This financial statement is exempt from review by certified public accountants or an auditing firm.
Proper use of forecasts of financial results, and other special matters
The Company adopted a resolution, at a meeting of its Board of Directors held on November 7, 2024, that authorized repurchases of shares of its common stock pursuant to Article 156 of the Companies Act, as applied pursuant to Article 165, Paragraph 3 of the same act. As a result, the “Net income per share” in the Consolidated and Non-consolidated results forecasts for the fiscal year ending March 31, 2026 takes into account the impact of the repurchases of shares.
Forward-looking statements in this document, including the forecasts of financial results, etc., are based on information currently available to the Company and on certain assumptions that the Company deems reasonable and do not represent any promise by the Company. Actual results can be materially different from expectations due to a variety of factors.
For matters related to the forecasts of financial results, please refer to “1. Overview of Operating Results, etc. (1) Overview of operating results for the fiscal year under review” on page 2 of the Attachments.
The Company plans to hold a briefing for analysts and institutional investors on Tuesday, May 13, 2025. The financial results materials to be distributed at the briefing will be posted on the Company’s website immediately after the briefing.
Overview of Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2026
(Unit: 100 million yen)
Full fiscal year
Previous fiscal year
(From Apr. 1, 2023 to
Mar. 31, 2024)
Current fiscal year
(From Apr. 1, 2024 to Mar. 31, 2025)
Next fiscal year
(From Apr. 1, 2025
to Mar. 31, 2026)
Result
Forecast
Result
Over previous fiscal year
Over forecast
Forecast
Over current fiscal year
Amount of orders received
19,624
19,100
24,375
4,751
5,275
20,600
(3,775)
Civil engineering
6,821
5,500
7,002
180
1,502
5,800
(1,202)
Building construction
11,365
12,200
15,731
4,366
3,531
13,300
(2,431)
Real estate development
1,311
1,300
1,507
195
207
1,400
(107)
Other
125
100
134
9
34
100
(34)
Net sales
17,650
19,900
21,542
3,892
1,642
19,600
(1,942)
Civil engineering
5,055
5,500
6,306
1,251
806
6,100
(206)
Building construction
11,172
13,000
13,725
2,552
725
12,000
(1,725)
Real estate development
1,297
1,300
1,375
78
75
1,400
24
Other
125
100
134
9
34
100
(34)
%
Gross profit
7.2
1,274
10.4
2,060
10.7
2,311
3.5
1,037
0.3
251
11.6
2,270
0.9
(41)
%
Civil engineering
17.9
902
17.4
955
19.4
1,220
1.5
317
2.0
265
16.6
1,010
(2.8)
(210)
%
Building construction
0.3
30
6.6
855
5.4
744
5.1
714
(1.2)
(110)
8.2
980
2.8
235
%
Real estate development
24.1
313
17.3
225
22.8
313
(1.3)
0
5.5
88
18.6
260
(4.2)
(53)
%
Other
22.3
27
25.0
25
23.9
32
1.6
4
(1.1)
7
20.0
20
(3.9)
(12)
%
SG&A expenses
(5.7)
(1,009)
(6.0)
(1,190)
(5.2)
(1,109)
0.5
(100)
0.8
80
(6.4)
(1,260)
(1.2)
(150)
%
Operating income
1.5
264
4.4
870
5.6
1,201
4.1
936
1.2
331
5.2
1,010
(0.4)
(191)
Non-operating income
146
165
188
41
23
110
(78)
Non-operating expenses
(22)
(65)
(45)
(22)
19
(70)
(24)
(Net financial revenue)
61
40
49
(12)
9
14
(35)
%
Ordinary income
2.2
389
4.9
970
6.2
1,345
4.0
955
1.3
375
5.4
1,050
(0.8)
(295)
Extraordinary gains
198
260
488
290
228
180
(308)
Extraordinary losses
(16)
(10)
(51)
(34)
(41)
(10)
41
%
Income before income taxes
3.2
570
6.1
1,220
8.3
1,782
5.1
1,211
2.2
562
6.2
1,220
(2.1)
(562)
Income taxes
(157)
(370)
(503)
(345)
(133)
(390)
113
%
Net income
2.3
413
4.3
850
5.9
1,279
3.6
866
1.6
429
4.2
830
(1.7))
(449)
)Net income attributable to non-controlling interests
(10)
(20)
(41)
(30)
(21)
(30)
11
Net income attributable to %
owners of parent
2.3
402
4.2
830
5.7
1,238
3.4
835
1.5
408
4.1
800
(1.6)
(438)
The forecast for the current fiscal year shows the figures in earnings forecasts released on February 7, 2025.
Overview of Non-consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2026
(Unit: 100 million yen)
Full year
Previous fiscal year From Apr. 1, 2023 to
Mar. 31, 2024)
Current fiscal year
(From Apr. 1, 2024
to Mar. 31, 2025)
Next fiscal year
(From Apr. 1, 2025
to Mar. 31, 2026)
Result
Forecast
Result
Forecast
Over previous fiscal year
Over forecast
Over current fiscal year
Amount of orders received
15,829
14,100
18,912
3,082
4,812
15,200
(3,712)
Civil engineering
5,188
3,400
4,651
(536)
1,251
3,500
(1,151)
Domestic
5,069
3,200
4,650
(419)
1,450
3,100
(1,550)
Overseas
118
200
1
(117)
(198)
400
398
Building construction
10,242
10,400
13,774
3,532
3,374
11,400
(2,374)
Domestic
9,640
10,000
13,662
4,022
3,662
11,000
(2,662)
Overseas
602
400
111
(490)
(288)
400
288
Total
15,430
13,800
18,425
2,995
4,625
14,900
(3,525)
Real estate development
311
230
382
70
152
230
(152)
Other
88
70
104
16
34
70
(34)
Net sales
13,936
15,000
16,378
2,441
1,378
14,100
(2,278)
Civil engineering
3,501
3,500
4,037
535
537
3,800
(237)
Domestic
3,292
3,300
3,822
530
522
3,600
(222)
Overseas
209
200
214
5
14
200
(14)
Building construction
10,046
11,200
11,969
1,922
769
10,000
(1,969)
Domestic
9,589
10,800
11,704
2,115
904
9,500
(2,204)
Overseas
457
400
264
(192)
(135)
500
235
Total
13,548
14,700
16,007
2,458
1,307
13,800
(2,207)
Real estate development
300
230
266
(33)
36
230
(36)
Other
88
70
104
16
34
70
(34)
%
Gross profit
5.4
759
9.5
1,420
9.2
1,514
3.8
754
(0.3)
94
10.9
1,540
1.7
25
%
Civil engineering
19.8
693
19.4
680
20.7
835
0.9
141
1.3
155
18.2
690
(2.5)
(145)
%
Building construction
(1.0)
(105)
5.8
650
4.4
521
5.4
626
(1.4)
(128)
7.3
730
2.9
208
%
Total
4.3
588
9.0
1,330
8.5
1,356
4.2
767
(0.5)
26
10.3
1,420
1.8
63
%
Real estate development
50.4
151
32.6
75
49.8
132
(0.6)
(18)
17.2
57
47.8
110
(2.0)
(22)
%
Other
22.1
19
21.4
15
23.9
25
1.8
5
2.5
10
14.3
10
(9.6)
(15)
%
SG&A expenses
(5.0)
(704)
(5.2)
(780)
(4.3)
(711)
0.8
(7)
0.9
68
(5.9)
(830)
(1.6)
(118)
%
Operating income
0.4
55
4.3
640
4.9
802
4.5
747
0.6
162
5.0
710
0.1
(92)
Non-operating income
98
75
92
(5)
17
80
(12)
Non-operating expenses
(15)
(45)
(24)
(9)
20
(50)
(25)
(Net financial revenue)
62
52
71
8
19
50
(21)
%
Ordinary income
1.0
137
4.5
670
5.3
871
4.3
733
0.8
201
5.2
740
(0.1)
(131)
Extraordinary gains
178
260
444
265
184
180
(264)
Extraordinary losses
(8)
(10)
(6)
2
3
(10)
(3)
%
Income before income taxes
2.2
307
6.1
920
8.0
1,308
5.8
1,000
1.9
388
6.5
910
(1.5)
(398)
Income taxes
(81)
(280)
(361)
(279)
(81)
(280)
81
%
Net income
1.6
226
4.3
640
5.8
947
4.2
721
1.5
307
4.5
630
(1.3)
(317)
The forecast for the current fiscal year shows the figures in earnings forecasts released on February 7, 2025.
Overview of Operating Results, etc.
Overview of operating results for the fiscal year under 2
Overview of financial position for the fiscal year under review 3
Overview of cash flows for the fiscal year under review 3
Basic policy on profit distribution and dividends for the fiscal year under review and the next fiscal year 3
Policy related to cross-shareholdings 5
Management Policy
Basic management policy of the Company 6
Mid- to long-term management strategies and major challenges 6
Target management indicators 6
Other matters related to management policies 6
Basic Policies for Selecting Accounting Standards 6
Consolidated Financial Statements
Consolidated balance sheet 7
Consolidated statement of income and consolidated statement of comprehensive income 10
Consolidated statement of changes in net assets 13
Consolidated statement of cash flows 17
Notes to consolidated financial statements 19
Non-consolidated Financial Statements
Non-consolidated balance sheets 27
Non-consolidated statements of income and non-consolidated statement of comprehensive income 30
Non-consolidated statement of changes in net assets 31
Other
(Consolidated) Amount of orders received, net sales, and balance carried forward 34
(Non-consolidated) Amount of orders received, net sales, and balance carried forward 35
- Overview of Operating Results, etc.
- Overview of operating results for the fiscal year under review
Operating results for the fiscal year under review (Overview of the fiscal year under review)
The Japanese economy has continued a moderate recovery trend, supported by a rebound in personal consumption and capital investment, as well as strong inbound demand.
In the construction market, overall construction investment has been steady due to a recovery in private investment accompanying strong corporate capital investment appetite, and solid public investment driven by the government’s disaster prevention and mitigation measures and national resilience measures. However, the labor supply-demand situation remains tight, and the management environment continues to be challenging.
Under these circumstances, the operating results of the Group were as follows:
Orders received and net sales
Orders received increased 24.2% year on year to ¥2,437.5 billion due to growth across all segments. Net sales increased 22.1% year on year to ¥2,154.2 billion due to growth across all segments.
Operating income, ordinary income, and net income attributable to owners of parent
Operating income increased 353.8% year on year to ¥120.1 billion due to gross profit increasing 81.4% year on year to ¥231.1 billion reflecting, among other things, larger revenue and a turnaround in profit margins in the civil engineering and building construction businesses, although selling, general and administrative expenses increased 10.0% year on year to ¥110.9 billion.
Ordinary income increased 245.7% year on year to ¥134.5 billion due to a turnaround in non-operating income (expenses) due in part to an increase in investment gain on equity method. Net income attributable to owners of parent increased 207.5% year on year to ¥123.8 billion due to a turnaround in extraordinary gains (losses) mainly because of an increase in gain on sales of investment securities. Return on equity (ROE) increased 9.2% year on year to 13.8%.
(Operating results by reportable segment including internal transactions between segments)
Civil engineering
Net sales increased 22.9% year on year to ¥663.9 billion due to increases in sales by the Company and its consolidated subsidiaries. Operating income increased 42.5% year on year to ¥87.5 billion due not only to larger revenue but to an increase in gross profit from construction business reflecting the turnaround in profit margins for the Company and its consolidated subsidiaries.
Building construction
Net sales increased 22.7% year on year to ¥1,399.9 billion yen due to increases in sales by the Company and its consolidated subsidiaries. Operating income was ¥11.3 billion (versus an operating loss of ¥56.1 billion in the previous fiscal year) due not only to larger revenue but to an increase in gross profit from construction business reflecting the turnaround in profit margins for the Company and its consolidated subsidiaries.
Real estate development
In the real estate industry, recent vacancy rates in the building leasing market are declining and rents are on the rise due to the trend of workers returning to the office. The real estate sales market remained strong as investor appetite remained strong.
Net sales of the Group in the real estate development segment increased 6.2% year on year to ¥146.7 billion due to increases in sales by its consolidated subsidiaries. Operating income remained roughly the same year on year at ¥23.4 billion due to an increase in selling, general and administrative expenses despite an increase in gross profit from development projects, reflecting larger revenue.
Others
Net sales increased 7.3% year on year to ¥17.5 billion, and operating income increased 25.6% to ¥2.3 billion.
Outlook for the next fiscal year
In FY2025, the Japanese economy is expected to maintain its gradual recovery trend as the employment and income environment improves. On the other hand, the slowdown in overseas economies due to factors such as the uncertain future of U.S. policy trends and the situation in the Middle East remains a downward risk to the economy.
In the construction market, private investment is expected to recover, reflecting strong investment appetite of companies, and public investment is expected to remain strong. However, there are concerns that manufacturing companies may curb domestic capital investment depending on U.S. policy trends, so we will be paying even closer attention to capital investment trends among our client companies.
With these circumstances taken into consideration, the consolidated results forecasts for the next fiscal year (April 1, 2025 to March 31, 2026) are net sales of ¥1,960.0 billion, operating income of ¥101.0 billion, ordinary income of ¥105.0 billion, and net profit attributable to owners of parent of ¥80 billion. Orders received are expected to reach ¥2,060.0 billion.
- Overview of financial position for the fiscal year under review
Analysis of net assets, liabilities, and net assets Assets
Total assets decreased by 6.0% or ¥154.8 billion year on year to ¥2,428.8 billion due in part to a decrease in cash and deposits.
Liabilities
Total liabilities decreased by 5.8% or ¥94.5 billion year on year to ¥1,528.1 billion due in part to an increase in interest-bearing debt for fund-raising purposes.
Net assets
Net assets decreased by 6.3% or ¥60.3 billion year on year to ¥900.6 billion due to factors such as repurchases of treasury stock, a decline in the stock market, and a decrease in unrealized gains on available-for-sale securities due to the sale of investment securities.
- Overview of cash flows for the fiscal year under review
Analysis of cash flows
Cash flows from operating activities
Net cash used in operating activities totaled ¥13.8 billion (versus ¥40.6 billion provided in the previous fiscal year) due in part to an increase in trade receivables, despite income before income taxes of ¥178.2 billion.
Cash flows from investing activities
Net cash provided by investing activities totaled ¥10.5 billion (versus ¥138.7 billion used in the previous fiscal year) due in part to the sales of investment securities.
Cash flows from financing activities
Net cash used in financing activities totaled ¥1,337 billion (versus ¥109.3 billion provided in the previous fiscal year) due in part to acquisition of treasury stock.
Accordingly, cash and cash equivalents at the end of the fiscal year under review amounted to ¥295.9 billion, down ¥134.7 billion year on year. The balance of interest-bearing debt for fund-raising purposes amounted to ¥315.5 billion, down ¥60.7 billion year on year. Of the interest-bearing debt for fund-raising purposes, non-recourse debt was ¥12.5 billion.
- Basic policy on profit distribution and dividends for the fiscal year under review and the next fiscal year
The Company’s basic policy is to maintain a dividend payout ratio of approximately 30% based on the premise of long-term stable dividends, while maintaining financial discipline and prioritizing growth investments, and to provide shareholder returns through flexible share repurchases and other measures based on financial policy.
Based on this policy, we have decided to pay a year-end dividend of ¥145 per share for the fiscal year under review, taking into consideration the financial results for the fiscal year under review and the future business environment, among other factors.
Accordingly, the annual dividend for the fiscal year, including the interim dividend, will be ¥210 per share (dividend payout ratio of 30.8%).
In addition, as a strong expression of our intention to achieve the financial results targets of the Medium-Term Management Plan (2024–2026) and to comply with the dividend policy, we will set payout an annual dividend of ¥150 per share as a minimum dividend amount, which is equivalent to a 30% dividend payout ratio based on consolidated net income in the initially forecasted for FY 2025 and the announced target for FY 2026 under the Medium-Term Management Plan, and if the results exceed the forecast, we will revise the dividend forecast upward in accordance with the dividend payout ratio of 30%, introducing a “dividend payout ratio of 30% with a lower limit” from the next fiscal year.
Based on this policy, we plan to pay an annual dividend of ¥150 per share for the next fiscal year (including an interim dividend of
¥75; a dividend payout ratio of 30.8%).
Going forward, we will continue to improve our financial results and dividend levels in order to meet the expectations of our shareholders.
At the Board of Directors Meeting held on November 7, 2024, the Company resolved to acquire up to 30,000,000 shares of treasury stock (¥150,000 million) for the purpose of enhancing shareholder returns and improving capital efficiency, and acquired 10,917,700 common shares (progress rate of 36.4%) and ¥72,058 million (progress rate of 48.0%) between November 8, 2024 and March 31, 2025.
- Policy related to cross-shareholdings
We aim to reduce the said amounts to those equivalent to less than 20%
of our consolidated net assets by the end of FY 2026
Q1 Balance as of the end of FY 2024 arid (Reference) Progress against the reduction target the numbeT of issues Progress rate against the initial reduction target
Balanceas of the end of FY 2014
Amount Number
(Billions of yen) of issues
A. Listed stocks
220 73
B. Deemed holdings of shares
31.8
Total (A+B)
251.9 76
C. Unlisted stocks
13.1 131
Grand total (A^B*C)
265.0 207
(Market values as of the end of FY 2022)
( “Wold” + “Not sold but agreed to be sold”)/Reduction target [progress rate]
- Overview of operating results for the fiscal year under review
Sold amount
(Billions of Yen)
Number of issues
40% 60'Z
Prog'ress rate
Sold Not sold but agreed to be sold Under discussion
100%
Note: The above amounts have been calculated on the basis of market values as of the end of FY *024,
Note: We don't include unlisted stocks in the reduction target
Amount (Billions of yen | consolidated net assets ratio | ||
Balance as of the end of FY 2023 | 448. 9 | 46, 7% | |
Sold | fi9l.0 | ||
Stock price fluctuation | fi94.1 | ||
Acquisition | I.1 | ||
o. Balance as of the end of FY 2024 | 265.0 | 29.4% | |
b. Not sold but agreed to be sold | 71.3 | ||
(Reference) e—b | 193.7 | 21.5% |
Factors of increase/decrease of the holding amount during FY 2024
(Billions of yen)
448.9
SOld
Acquisition
1. I 2f›5.11
"
400
2fl0
Note: The above amount not sold but agreed to be sold has been calculated on the basis of market values as of the end of FY 2024
Future measures
End of F-Y 2023
E«dofFY2U24
Moving forward, we will consider and implement an additional sale, etc. in order to steadily achieve the reduction target that “we aim to reduce our cross-shareholdings to less than 20 % of consolidated net assets by the end of FY 2026”, even in the event of the soaring stock price, fluctuation of our consolidated net assets, etc.
- Management Policy
- Basic management policy of the Company
Under the Taisei Group Philosophy “To create a vibrant environment for all members of society,” all officers and employees share the “Taisei Spirit,” which is based on three values: active and transparent culture, value creation, and evolution of tradition. The Group creates safe, secure, and attractive spaces and high value in harmony with nature, and strives to build a global society filled with dreams and hopes for the next generation.
- Medium- to long-term management strategies and issues to be addressed
With a view to realizing its medium- to long-term vision, the Group formulated, in May 2024, the TAISEI VISION 2030 Achievement Plan, which organizes the policies and measures to be taken in a seven-year period, as well as the Medium-Term Management Plan (2024-2026), which has set numerical targets as milestones in a three-year period.
Based on these, we will develop medium- to long-term business strategies for our business segments as well as business foundations that support these strategies, and will also steadily implement the investments necessary to capture future growth and business profit opportunities.
The TAISEI VISION 2030 Achievement Plan and Medium-Term Management Plan (2024-2026) are posted on our website. (URL) https://www.taisei.co.jp/english/ir/policy/plan/
- Target management indicators
Numerical management targets (consolidated) for the final year (FY2026) of the Medium-Term Management Plan (2024-2026)
(Billions of yen)
Medium-Term Management Plan (2024-2026)
FY2024
FY2025
FY2026
Results
Forecasts
Targets
Group net sales
2,154.2
1,960.0
(Ref.) 1,950.0
Group operating income
120.1
101.0
120.0
Group net income
123.8
80.0
80.0
ROE
13.8%
9.5%
Approx. 8.5%
Dividend payout ratio
30.8%
30.8%
(Min.) 30%
- Other matters related to management policy
In December 2020, the Company received a cease and desist order from the Japan Fair Trade Commission for violating the Antimonopoly Act in relation to the construction of new terminal stations (Shinagawa Station and Nagoya Station) using an underground excavation method for the Linear Chuo Shinkansen. In March 2021, the Company filed a lawsuit to revoke the cease and desist order, taking objection to the order. However, in June 2024, the Tokyo District Court handed down a ruling dismissing our claim. In response, the Company filed an appeal with the Tokyo High Court in July 2024.
- Basic management policy of the Company
- Basic Policies for Selecting Accounting Standards
The Japanese accounting standards, which has undergone convergence with the international accounting standards, is of proven quality, compares favorably internationally and is evaluated by the relevant authorities in Europe as being equivalent to the IFRS. The Group therefore adopts Japanese GAAP as its accounting standards.
Going forward, the Group will take into consideration domestic and international trends in deciding whether to adopt the IFRS as appropriate.
- Consolidated Financial Statements
- Consolidated balance sheet
Assets
(Millions of yen) As of March 31, 2024 As of March 31, 2025
Current assets
Cash and time deposits
434,711
240,689
Notes and accounts receivable trade
864,694
939,160
Securities
-
60,000
Cost on uncompleted contracts
79,903
69,013
Real estate for sale and development projects in progress
166,293
188,677
Other inventories
6,841
6,992
Other current assets
79,106
95,518
Allowance for doubtful accounts
(375)
(353)
Total current assets
1,631,175
1,599,698
Fixed assets
Tangible fixed assets
Buildings and structures
173,894
179,616
Machinery, vehicles and equipment
84,429
88,070
Land
219,316
131,342
Construction in progress
15,426
14,352
Accumulated depreciation
(160,351)
(166,635)
Total tangible fixed assets
332,715
246,745
Intangible fixed assets
27,151
27,538
Investments and other assets
Investment securities
478,191
428,326
Net defined benefit asset
80,316
58,171
Deferred income tax assets
4,504
38,508
Other fixed assets
31,751
32,004
Allowance for doubtful accounts
(2,164)
(2,155)
Total investments and other assets
592,599
554,854
Total fixed assets
952,466
829,139
Total assets
2,583,641
2,428,837
Liabilities
(Millions of yen) As of March 31, 2024 As of March 31, 2025
contracts
Current liabilities
Notes and accounts payable trade
597,704
553,376
Short-term borrowings
110,530
115,212
Short-term non-recourse loans payable
261
208
Current portion of bonds payable
-
10,000
Lease obligations
731
875
Income taxes payable
37,059
37,904
Advances received and progress billings on uncompleted
215,432
211,132
Deposit received
196,991
193,483
Provision for warranties on completed contracts
3,467
4,129
Provision for losses on construction contracts
96,661
102,678
Allowance for losses on orders received
71
31
Other current liabilities
43,802
63,892
Total current liabilities
1,302,713
1,292,924
Long-term liabilities
Straight bonds
50,000
50,000
Non-recourse bonds
-
100
Long-term borrowings
142,787
127,799
Long-term non-recourse loans payable
72,686
12,201
Lease obligations
1,533
1,564
Deferred income tax liabilities
11,953
-
Deferred income tax liabilities for revaluation of land
4,480
4,596
Retirement benefits for directors and corporate auditors
840
933
Provision for share-based remuneration for directors
271
348
Provision for loss on business of subsidiaries and associates
-
3,033
Net defined benefit liability
18,417
17,418
Other long-term liabilities
16,957
17,216
Total long-term liabilities
319,927
235,213
Total liabilities
1,622,641
1,528,137
Net assets
Shareholders’ equity
Common stock
122,742
122,742
Capital surplus
30,382
30,461
Retained earnings
558,721
649,200
Treasury stock
(898)
(73,168)
Total shareholders’ equity
710,947
729,234
Accumulated other comprehensive income
Unrealized gains on available-for-sale securities, net of taxes
154,295
87,254
Unrealized losses on hedging derivatives, net of taxes
(1)
4
Revaluation reserve for land
1,176
1,062
Foreign currency translation adjustments
2,530
8,040
Remeasurements of defined benefit plans
60,385
40,592
Total accumulated other comprehensive income
218,387
136,953
Non-controlling interests
31,666
34,511
Total net assets
961,000
900,699
Total liabilities and net assets
2,583,641
2,428,837
- Consolidated statement of income and consolidated statement of comprehensive income Consolidated statement of income
(Millions of yen)
Net sales
From April 1, 2023
to March 31, 2024
From April 1, 2024
to March 31, 2025
Construction business 1,602,000 1,975,150
Development projects 163,023 179,073
Total net sales 1,765,023 2,154,223
Cost of sales
Construction business 1,509,665 1,781,706
Development projects 127,957 141,377
Total cost of sales 1,637,622 1,923,083
Gross profit
Construction business 92,334 193,443
Development projects 35,066 37,696
Total gross profit 127,400 231,139
Selling, general and administrative expenses
Selling expenses 40,756 39,058
General and administrative expenses 60,163 71,920
Total selling, general and administrative expenses 100,920 110,978 Operating income 26,480 120,160
Non-operating income
Interest income 1,315 1,401
Dividend income 5,958 6,095
Foreign exchange gains 2,581 209
Investment gain on equity method 4,195 10,225
Other non-operating income 646 961
Total non-operating income 14,697 18,894 Non-operating expenses
Interest expenses 1,080 2,572
Financing expenses 149 850
Taxes and dues 542 707
Other non-operating expenses 494 418
Total non-operating expenses 2,266 4,549
Ordinary income 38,910 134,505
(Millions of yen)
Consolidated statement of comprehensive incomeFrom April 1, 2023
to March 31, 2024
From April 1, 2024
to March 31, 2025
Extraordinary gains
Gain on sales of investment securities
17,908
46,197
Other extraordinary gains
1,970
2,697
Total extraordinary gains
19,879
48,894
Extraordinary losses
Impairment losses on fixed assets
586
1,302
Loss on retirement of fixed assets
726
210
Loss on investments in related companies
-
3,033
Compensation for damage
204
-
Other extraordinary losses
178
603
Total extraordinary losses
1,695
5,149
Income before income taxes
57,093
178,250
Income taxes - current
48,482
60,564
Income taxes - deferred
(32,722)
(10,258)
Total income taxes
15,760
50,306
Net income
41,333
127,944
Net income attributable to non-controlling interests
1,060
4,119
Net income attributable to owners of parent
40,272
123,824
From April 1, 2023
to March 31, 2024
(Millions of yen)
From April 1, 2024
to March 31, 2025
Net income 41,333 127,944
Other comprehensive income
Unrealized gains on available-for-sale securities, net of taxes 57,481 (66,816) Unrealized gains on hedges derivatives, net of taxes 4 -
Revaluation reserve for land - (131)
Foreign currency translation adjustments 2,267 3,812
Remeasurements of defined benefit plans 45,087 (19,724)
using equity method
1,610
Total other comprehensive income
105,063
(81,249)
Comprehensive income
146,396
46,695
Comprehensive income attributable to
Owners of parent
144,523
42,362
Non-controlling interests
1,873
4,332
Share of other comprehensive income of entities accounted for
221
- Consolidated statement of changes in net assetsConsolidated fiscal year ended March 31, 2024
(Millions of Yen)
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’
equity
Balance as of April 1, 2023
122,742
30,382
562,774
(906)
714,992
Changes during the period
Dividends
(24,384)
(24,384)
Net income attributable to
owners of parent
40,272
40,272
Acquisition of treasury stock
(20,010)
(20,010)
Disposal of treasury stock
0
18
18
Cancellation of treasury stock
(19,999)
19,999
-
Transfer from retained
earnings to capital surplus
19,999
(19,999)
-
Reversal of revaluation
reserve for land
58
58
Change in scope of consolidation
-
Change in ownership interest of parent due to transactions
with non-controlling interests
(0)
(0)
Change in scope of equity method
-
Changes other than shareholders’ equity, net
(Note)
Total changes during the period
-
(0)
(4,052)
7
(4,045)
Balance as of March 31, 2024
122,742
30,382
558,721
(898)
710,947
Accumulated other comprehensive income
Non-controlling interests
Total net assets
Unrealized gains on available-for-sale securities,
net of taxes
Unrealized gains (losses) on hedging derivatives,
net of taxes
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
income
Balance as of April 1, 2023
97,090
(6)
1,235
237
15,638
114,194
4,756
833,944
Changes during the period
Dividends
(24,384)
Net income attributable to
owners of parent
40,272
Acquisition of treasury stock
(20,010)
Disposal of treasury stock
18
Cancellation of treasury stock
-
Transfer from retained
earnings to capital surplus
-
Reversal of revaluation
reserve for land
(58)
(58)
-
Change in scope of consolidation
-
Change in ownership interest
of parent due to transactions with non-controlling interests
(0)
Change in scope of equity
method
-
Changes other than shareholders’ equity, net
(Note)
57,205
5
2,293
44,747
104,250
26,909
131,160
Total changes during the period
57,205
5
(58)
2,293
44,747
104,192
26,909
127,056
Balance as of March 31, 2024
154,295
(1)
1,176
2,530
60,385
218,387
31,666
961,000
(Note) Excluding the reversal of revaluation reserve for land.
Consolidated fiscal year ended March 31, 2025(Millions of Yen)
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’
equity
Balance as of April 1, 2024
122,742
30,382
558,721
(898)
710,947
Changes during the period
Dividends
(23,877)
(23,877)
Net income attributable to
owners of parent
123,824
123,824
Acquisition of treasury stock
(82,273)
(82,273)
Disposal of treasury stock
0
3
3
Cancellation of treasury stock
(9,999)
9,999
-
Transfer from retained
earnings to capital surplus
9,999
(9,999)
-
Reversal of revaluation
reserve for land
(28)
(28)
Change in scope of
consolidation
(28)
38
9
Change in ownership interest of parent due to transactions
with non-controlling interests
107
107
Change in scope of equity method
522
522
Changes other than shareholders’ equity, net
(Note)
Total changes during the period
-
78
90,478
(72,270)
18,287
Balance as of March 31, 2025
122,742
30,461
649,200
(73,168)
729,234
Accumulated other comprehensive income
Non-controlling interests
Total net assets
Unrealized gains on available-for-sale securities,
net of taxes
Unrealized gains (losses) on hedging derivatives,
net of taxes
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive
income
Balance as of April 1, 2024
154,295
(1)
1,176
2,530
60,385
218,387
31,666
961,000
Changes during the period
Dividends
(23,877)
Net income attributable to
owners of parent
123,824
Acquisition of treasury stock
(82,273)
Disposal of treasury stock
3
Cancellation of treasury stock
-
Transfer from retained
earnings to capital surplus
-
Reversal of revaluation
reserve for land
28
28
-
Change in scope of consolidation
9
Change in ownership interest
of parent due to transactions with non-controlling interests
107
Change in scope of equity
method
522
Changes other than shareholders’ equity, net
(Note)
(67,041)
5
(143)
5,509
(19,793)
(81,461)
2,844
(78,617)
Total changes during the period
(67,041)
5
(114)
5,509
(19,793)
(81,433)
2,844
(60,301)
Balance as of March 31, 2025
87,254
4
1,062
8,040
40,592
136,953
34,511
900,699
(Note) Excluding the reversal of revaluation reserve for land.
- Consolidated statement of cash flows
(Millions of Yen)
From April 1, 2023
From April 1, 2024
to March 31, 2024
to March 31, 2025
Cash flows from operating activities
Income before income taxes
57,093
178,250
Depreciation and amortization
13,110
16,391
Impairment losses on fixed assets
586
1,302
Increase (decrease) in allowance for doubtful accounts
173
(30)
Increase (decrease) in provision for losses on construction
48,281
6,017
contracts
Increase (decrease) in net defined benefit liability
(855)
(1,014)
Decrease (increase) in net defined benefit asset
(67,401)
22,175
subsidiaries and associates
Interest and dividend income
(7,273)
(7,497)
Interest expenses
1,080
2,572
Foreign exchange losses (gains)
(2,581)
(209)
Loss (gain) on valuation of investment securities
25
82
Loss (gain) on sales of investment securities
(17,895)
(48,672)
Loss (gain) on sales of fixed assets
(589)
(90)
Loss on retirement of fixed assets
726
210
Investment loss (gain) on equity method
(4,195)
(10,225)
Decrease (increase) in trade receivables
(105,106)
(74,123)
Decrease (increase) in cost on uncompleted contracts
(7,322)
10,962
Decrease (increase) in real estate for sale and development projects in progress
(20,846)
(17,759)
Decrease (increase) in other inventories
(1,002)
(140)
Increase (decrease) in trade payables
92,137
(44,789)
Increase (decrease) in advances received and progress billings on uncompleted contracts
25,503
(4,580)
Increase (decrease) in deposit received
24,342
(3,435)
Increase (decrease) in accounts payable - other
(7,206)
17,043
Other, net
37,254
(6,867)
Subtotal
58,038
38,605
Interest and dividend received
8,685
9,895
Interest paid
(1,020)
(2,542)
Income taxes paid
(25,091)
(59,799)
Net cash provided by (used in) operating activities
40,611
(13,841)
Increase (decrease) in provision for loss on business of
- 3,033
(Millions of yen)
From April 1, 2023
to March 31, 2024
From April 1, 2024
to March 31, 2025
Cash flows from investing activities
Decrease (increase) in time deposits
(3,864)
(334)
Purchase of tangible and intangible assets
(122,308)
(31,939)
Proceeds from sales of tangible and intangible assets
1,424
898
Purchase of investment securities
(26,757)
(86,617)
Proceeds from sales and redemption of investment securities
40,203
115,149
Purchase of shares of subsidiaries resulting in change in scope (27,365) -of consolidation
Proceeds from purchase of shares of subsidiaries resulting in
-
13,377
Other,
(79)
(2)
Net cash provided by (used in) investing activities
(138,747)
10,531
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
(1,295)
3,532
Proceeds from long-term borrowings
94,010
26,400
Repayment of long-term borrowings
(21,122)
(40,239)
Proceeds from long-term non-recourse borrowings
72,830
7,998
Repayment of long-term non-recourse loans payable
(11)
(261)
Proceeds from issuance of bonds
9,944
9,944
Proceeds from issuance of non-recourse bonds
-
90
Acquisition of treasury stock
(20,010)
(82,071)
Decrease (increase) in deposits for the purchase of treasury
-
(32,640)
Dividends paid
(24,384)
(23,877)
Other, net
(568)
(2,644)
Net cash provided by (used in) financing activities
109,392
(133,769)
Effect of exchange rate changes on cash and cash equivalents
3,633
2,287
Net increase (decrease) in cash and cash equivalents
14,890
(134,791)
Cash and cash equivalents at beginning of year
415,863
430,754
Cash and cash equivalents at end of year
430,754
295,963
change in scope of consolidation
stock
- Notes to consolidated financial statements
(Notes regarding going concern assumption)
Not applicable.
(Changes in accounting policies)
(Application of accounting standard for current income taxes)
The Company has applied the “Accounting Standard for Current Income Taxes” (Accounting Standards Board of Japan (ASBJ) Statement No. 27, October 28, 2022; the “Revised Accounting Standard of 2022”) and other relevant ASBJ regulations from the beginning of the fiscal year ended March 31, 2025.
Accordingly, income taxes - current (hereinafter referred to as “income taxes”) on income for the fiscal year ended March 31, 2025 will be recorded separately as profit or loss, shareholders’ equity, and other comprehensive income according to the transactions that are the source of these taxes. When the amount of income taxes not recorded in profit or loss is immaterial, or when the transactions subject to tax relate to shareholders’ equity or other comprehensive income in addition to profit or loss, and it is difficult to calculate the amount of income taxes levied on shareholders' equity or other comprehensive income, the tax amount is recorded in profit or loss. When gains or losses arising from the sale of subsidiary shares, etc. between consolidated companies are deferred for tax purposes, deferred income tax assets or deferred income tax liabilities that are recorded for the temporary differences relating to the gains or losses on sale in the non-consolidated financial statement of the company that sold the subsidiary shares, etc. will be reversed for consolidated settlement of accounts.
Revisions to categories for recording current income taxes (taxation on other comprehensive income) conform to the transitional treatment stipulated in the proviso to paragraph 20-3 of the Revised Accounting Standard of 2022 and the transitional treatment stipulated in the proviso to paragraph 65-2(2) of the “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, October 28, 2022; “Revised Guidance on Accounting Standard of 2022”). This change in accounting policy has no impact on the consolidated financial statements.
In addition, for the revisions related to the review of the treatment in the consolidated financial statements when a gain or loss on sale arising from the sale of shares of subsidiaries, etc. among consolidated companies is deferred for tax purposes, the Company has applied the Revised Guidance on Accounting Standard of 2022 from the beginning of the fiscal year ended March 31, 2025. This change in accounting policy has been applied retroactively, and the consolidated financial statements for the fiscal year ended March 31, 2024 have been restated to reflect this retrospective application. This change in accounting policy has no impact on the consolidated financial statements.
(Additional Information)
Performance-based share remuneration plan for directors) (Overview of transactions)
The Company has introduced the performance-based share remuneration plan “Board Benefit Trust (the “BBT”)” for directors.
Shares of the Company’s common stock are acquired through the BBT with money contributed by the Company (the “Company Stock”). The directors will have the Company Stock and the amounts converted at fair value of the Company Stock (the “Company Stock, etc.,” which are provided through the BBT when directors retire in accordance with “Officers’ Share Benefit Regulation” as stipulated by the Company.
(Treasury stock held by the BBT)
The shares held by the BBT are reported by the book value of the BBT (excluding the incidental expenses) as part of the treasury stock in the net assets. At the end of the previous fiscal year and the current fiscal year, the book value of treasury stock held by the BBT was ¥367 million and ¥363 million, and the number of shares was 99 thousand shares and 98 thousand shares, respectively.
Conversion to an equity-method affiliate through share acquisition
At the Board of Directors Meeting held on June 7, 2024, the Company resolved to execute a capital and business alliance agreement with HEIWA REAL ESTATE Co., Ltd. (the “Counterparty”) and to make the Counterparty an Equity-method Affiliate of the Company through the additional acquisition of shares (the “Share Acquisition”) of the Counterparty from SIMPLEX ASSET MANAGEMENT Co., Ltd., SIMPLEX ASSET MANAGEMENT (HK) Company Limited (collectively, “SIMPLEX”) and MITSUBISHI ESTATE Co., Ltd. (“MITSUBISHI ESTATE”), and executed the capital and business alliance agreement and the share transfer agreement on the same day.
After completing transfer procedures for the Share Acquisition on June 10, 2024, the percentage of voting rights held by the Company was 20.24%, the Company became the largest shareholder of the Counterparty and the Counterparty became an Equity-method Affiliate of the Company.
Purpose of Share Acquisition
The Company acquired the Counterparty’s shares in order to enhance mutual corporate value by leveraging our development capabilities for the Counterparty’s real estate to create investment opportunities in the development business and achieve the vision, “Contribution to high value-added urban development by making the most of our development know-how and technological capabilities as a general contractor,” set forth for the Group Domestic Real Estate Development Business by FY2030 in “TAISEI VISION 2030 Achievement Plan.”
Overview of the Counterparty
(a) Name
HEIWA REAL ESTATE Co., Ltd.
(b) Address
1-10, Nihonbashi Kabutocho, Chuo-ku, Tokyo
(c) Title and name of representative
Representative Executive Officer, President and CEO
Kiyoyuki Tsuchimoto
(d) Description of business
Building Business and Asset Management Business
(e) Share capital
¥21,492 million (As of March 31, 2024)
(f) Date of establishment
July 15, 1947
Number of shares to be acquired, acquisition cost and status of shares before and after Share Acquisition
Number of shares (a) held before Share Acquisition | 532,600 shares (Percentage of voting rights: 1.49%) |
Number of shares to (b) be acquired | From SIMPLEX 5,829,000 shares (Percentage of voting rights: 16.30%) From MITSUBISHI ESTATE 388,500 shares (Percentage of voting rights: 1.09%) |
(c) Acquisition cost | From SIMPLEX ¥27,396 million ($180,941 thousand) From MITSUBISHI ESTATE ¥1,826 million ($12,059 thousand) |
Number of shares (d) held after Share Acquisition | 6,750,100 shares (Percentage of voting rights: 18.88%) |
Notes: 1. The percentage of voting rights is calculated based on the total number of voting rights held by all shareholders as of March 31, 2024 (357,527 shares) as the denominator.
2. As a result of the acquisition of treasury stock by the Counterparty on June 10, 2024, the percentage of voting rights held by the Company after the acquisition was 20.24%.
(Matters related to consolidated balance sheets)
Shares, etc., to non-consolidated subsidiaries and affiliated companies
(Millions of yen)
Revaluation of land
As of March 31, 2024 As of March 31, 2025
65,394 148,186
Some of the domestic consolidated subsidiaries executed revaluation of their land for business use in accordance with the Act on Revaluation of Land (Act No. 34, March 31, 1998), and revaluation reserve for land is recognized in net assets section.
Method of revaluation
The revaluation is executed in accordance with the method prescribed in Article 2, Items 3, 4, and 5 of the Order of Enforcement of the Act on Revaluation of Land (Cabinet Order No. 119, March 31, 1998).
Date of revaluation
November 30, 2001 and March 31, 2002
(Millions of yen)
As of March 31, 2024 As of March 31, 2025
The difference between the fair value of the revalued land at the end of the current fiscal year and the book value after the revaluation
Of which, the difference related to investment and rental property
3,544 2,365
(263) (80)
Pledged assets
The following assets were pledged as collateral for borrowings and others of subsidiaries and affiliates.
(Millions of yen)
As of March 31, 2024 As of March 31, 2025
Investment securities 1,110 930
Investments and other assets
Total
1,769
1,549
Liabilities related to the above
-
-
/Other assets
659 619
Contingent liabilities
(Millions of yen)
As of March 31, 2024 As of March 31, 2025
Guarantee obligations 4,557 6,740
Cost on uncompleted contracts corresponding to provision for losses on construction contracts
Cost on uncompleted contracts and provision for losses on construction contracts related to construction contracts that are likely to incur losses are separately presented, without being set off.
(Millions of yen)
As of March 31, 2024 As of March 31, 2025
3,802 889
Assets corresponding to non-recourse liabilities
(Millions of yen)
As of March 31, 2024 | As of March 31, 2025 | |
Real estate for sale | 5,829 | 16,570 |
Land | 91,271 | - |
Other | 8,212 | 2,056 |
(Matters Related to Consolidated Statements of Income)
Provision for losses on construction contracts included in cost of sales
From April 1, 2023
to March 31, 2024
(Millions of yen)
From April 1, 2024
to March 31, 2025
63,549 35,984
Research and development expenses included in general and administrative expenses and manufacturing costs
(Millions of yen)
From April 1, 2023
to March 31, 2024
From April 1, 2024
to March 31, 2025
18,646 19,503
(Segment Information, etc.)
[Segment Information]
General information on reportable segments
Each reportable segment of the Company is a business unit in the Company, whose discrete financial information is available. Reportable segments are reviewed periodically at the Board of Directors Meeting in order to determine distribution of management resources and evaluate business results of each reportable segment.
The Company has established headquarters at the head office for each product of construction and service. Each headquarters, along with consolidated subsidiaries, proposes comprehensive domestic and overseas strategies with respect to products and services, and operates its business activities.
The Company consists of segments identified by products and services based on the headquarters, and identifies the three segments, “Civil engineering,” “Building construction,” and “Real estate development” as reportable segments.
“Civil engineering” refers to construction of civil engineering, etc., “Building construction” refers to construction of buildings and housing, etc., and “Real estate development” refers to purchase, sale, lease, management, and brokerage of land and buildings, etc.
Basis of measurement of net sales, profit or loss, and other material items in reportable segment
The accounting method for each reportable segment is the same as that used to prepare the consolidated financial statements. The profit (loss) of a reportable segment is based on the operating income (loss) before amortization of goodwill in the consolidated statement of income. In addition, conditions of intersegment transactions and transfers are determined by considering market prices as in the case of other general transactions.
Assets of the Company are not allocated to the segments. However, the corresponding depreciation and amortization are allocated to the segments according to the rational basis such as the usage of assets.
Information of net sales, profit or loss, and other material items by reportable segment
Consolidated fiscal year ended March 31, 2024
(Millions of yen)
Reportable segments
Others (Note 1)
Total
Adjustments (Note 2)
Book value in consolidated financial statements (Note 3)
Civil engineering
Building construction
Real estate development
Subtotal
Net sales:
Sales on third partycustomers
505,504
1,117,280
129,726
1,752,511
12,512
1,765,023
-
1,765,023
Intersegment
transactions or transfers
34,834
23,694
8,556
67,085
3,856
70,941
(70,941)
-
Total
540,338
1,140,974
138,282
1,819,596
16,368
1,835,965
(70,941)
1,765,023
Segment operating income (loss)
61,454
(56,143)
23,369
28,680
1,852
30,532
(4,052)
26,480
Other items
Depreciation and amortization
4,787
5,894
2,322
13,005
200
13,205
(95)
13,110
Increase (decrease) in
provision for losses on construction contracts
4,031
44,250
-
48,281
-
48,281
-
48,281
Notes: 1. Businesses that cannot be classified into the Company’s reporting segments are shown as “Others.”
This includes the incidental business of construction business such as cooperative research, technical service, and environmental measurement, and logistics business, and also, leisure-related business and other service business.
The adjustments of segment operating income (loss) of ¥(4,052) million includes elimination of intersegment transaction amounting to ¥(3,920) million and amortization of goodwill amounting to ¥(132) million.
Segment operating income (loss) is adjusted in accordance with operating income of the consolidated statement of income.
Consolidated fiscal year ended March 31, 2025
(Millions of yen)
Reportable segments | Others (Note 1) | Total | Adjustments (Note 2) | Book value in consolidated financial statements (Note 3) | ||||
Civil engineering | Building construction | Real estate development | Subtotal | |||||
Net sales: | ||||||||
Sales on third party customers | 630,627 | 1,372,558 | 137,589 | 2,140,775 | 13,448 | 2,154,223 | - | 2,154,223 |
Intersegment transactions or transfers | 33,294 | 27,439 | 9,199 | 69,933 | 4,120 | 74,054 | (74,054) | - |
Total | 663,922 | 1,399,997 | 146,788 | 2,210,708 | 17,569 | 2,228,278 | (74,054) | 2,154,223 |
Segment operating income | 87,580 | 11,348 | 23,487 | 122,416 | 2,327 | 124,743 | (4,582) | 120,160 |
Other items | ||||||||
Depreciation and amortization | 6,118 | 7,480 | 2,748 | 16,347 | 181 | 16,528 | (137) | 16,391 |
Increase (decrease) in provision for losses on construction contracts | 3,131 | 2,886 | - | 6,017 | - | 6,017 | - | 6,017 |
Notes: 1. “Businesses that cannot be classified into the Company’s reporting segments are shown as “Others.”
This includes the incidental business of construction business such as cooperative research, technical service, and environmental measurement, and logistics business, and also, leisure-related business and other service business.
2. The adjustments of segment operating income of ¥(4,582) million includes elimination of intersegment transaction amounting to
¥(4,053) million and amortization of goodwill amounting to ¥(529) million.
3. Segment operating income is adjusted in accordance with operating income of the consolidated statement of income.
[Information about impairment losses on fixed assets of reportable segment]
Consolidated fiscal year ended March 31, 2024
(Millions of yen)
Reportable segments | Others | Elimination and/or corporate | Total | ||||
Civil engineering | Building Construction | Real estate development | Subtotal | ||||
Impairment losses on fixed assets | 443 | 106 | 36 | 586 | - | - | 586 |
Consolidated fiscal year March 31, 2025
(Millions of yen)
Reportable segments | Others | Elimination and/or corporate | Total | ||||
Civil engineering | Building construction | Real estate development | Subtotal | ||||
Impairment losses on fixed assets | 97 | - | 58 | 155 | 1,146 | - | 1,302 |
[Information about gains on negative goodwill of reportable segment]
Consolidated fiscal year ended March 31, 2024
Gains on negative goodwill of ¥1,094 million was recorded in “Civil engineering” and “Building construction” segments as the Company acquired shares of P.S. MITSUBISHI CONSTRUCTION Co., Ltd. (currently PS Construction Co., Ltd.) and made it a consolidated subsidiary.
Consolidated fiscal year ended March 31, 2025 Not applicable.
(Per share data)
(yen)
From April 1, 2023 to March 31, 2024 | From April 1, 2024 to March 31, 2025 | |
Net assets per share Net income per share Diluted net income per share | 5,039.98 215.75 Diluted net income per share was not presented because the Company had no shares with dilutive effects such as bonds with share acquisition rights. | 5,041.43 682.78 Same as on the left |
Notes: 1. The treasury shares held by the BBT in the net assets are included in the number of treasury stock, which is excluded from the number of outstanding shares at the end of the fiscal year and the average number of shares during the period for calculating the net assets per share and the net income per share.
The numbers of treasury stock held by the BBT at the end of the consolidated fiscal year excluded for calculation of net assets per shares for the consolidated fiscal years ended March 31, 2024 and 2025 were 99 thousand shares and 98 thousand shares, respectively, and the numbers of treasury stock held by the BBT during the period excluded for the calculation of net income per shares for the consolidated fiscal years ended March 31, 2024 and 2025 were 100 thousand shares and 98 thousand shares, respectively.
2. Calculation basis for net income per share is as follows:
(Millions of yen)
From April 1, 2023 to March 31, 2024 | From April 1, 2024 to March 31, 2025 | |
Net income attributable to owners of parent | 40,272 | 123,824 |
Net income not attributable to common stockholders | - | - |
Net income attributable to owners of parent related to common stock | 40,272 | 123,824 |
Average number of common stock during the period (Thousand shares) | 186,667 | 181,353 |
(Significant subsequent events)
Not applicable.