Passing down inherited Technologies to Future Generations 2015 CORPORATE REPORT

The motifs of our corporate logo are the letter “T”, which is the initial of our company name, and the structure of a building. Starting from left, the three squares represent the future, people and love, and the universe, while the large square at the bottom symbolizes the earth. The red symbolizes our determination and passion, while the blue represents creativity. This logo reflects Tekken Corporation’s willingness to create an environment that is rich in humanity.

Published in November 2015 Corporate Report 2015 Tekken Corporate Report 2015 INDEX

Company Codes and Management Philosophy 1

Tekken Corporation was established on February 1, 1944 as Message from the President 3 Tetsudou Kensetsu Kogyo K.K. and began as a company To remain a company that consistently helps to engaged in social infrastructure development, with a focus create the future and contribute to society on railroad-related work. Since its foundation, we have established relationship of trust with customers and other ■Implementation of the Corporate Activity Guidelines stakeholders, and have fostered a style of management rooted in our technological capabilities. This sound Tekken’s CSR framework 5 approach has helped us grow and develop into a general construction company. ●Seven Principles of the Corporate Activity Guidelines We will continue to actively enter new fields with a Customer-first principle 7 determined spirit, and work to contribute to the prosperity Social contribution 9 of society in line with our company codes of “trust and technologies.” Pursuit of safety 11 Communication with stakeholders 12 Company Codes Fair, sound corporate activities 13 Trust and technologies Preservation and improvement of global environment 14 Management Philosophy Human resource development and creation of vibrant workplaces 15 Working in line with our company codes of “trust and technologies,” we create safe and high-quality social ■Our businesses 17 infrastructure that satisfies our customers. Through these activities, we will contribute to the prosperity of society, ●Special Feature grow sustainably, and aim to be a company that employees are proud to talk about with their families and Tekken & Hokuriku Shinkansen 21 find to be a rewarding place to work. Our longtime possession for Hokuriku Shinkansen Tekken & Earthquake Reconstruction 23 Standing together as we work to revitalize communities and bring about reconstruction as soon as possible

Tekken & Historic Preservation 25 Preserving Japanese history for future generations

Tekken & Technologies 27 Continuous improvement of technologies to expand their scope of application

Gallery of Completed Work 29 Financial Highlights (Consolidated) 31 Directors and Auditors 33 About the Tekken Group 34

1 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 2 Message from the President

To remain a company that and technologies.” However, this management philosophy the directions of the specific activities of our officers and consistently helps to create the future has been around for nearly 26 years. While the employees. We have taken the revision of the fundamental concept remains unchanged, the expression management philosophy as an opportunity to review the and contribute to society used to convey the management philosophy has become code of conduct, and thus have established the new somewhat difficult to understand. This is why we have Corporate Activity Guidelines consisting of seven principles revised it to make it consistent with the change of time. with more forward-looking, future-oriented content and expressions. We position the implementation of the Following the Compliance Declaration in 2003, we Corporate Activity Guidelines as the basis for our CSR Introduction established the Tekken Code of Conduct, which outlined activities. At Tekken Corporation, we promote initiatives for establishing a stable management foundation, such as ensuring the safety and quality of work, improving human resources and technological capabilities, enhancing our competitive strength in winning orders, and securing New start and leap forward with the Medium-Term Business Plan for 2015 to 2017: profits. This approach enabled us to improve our business Aiming for significant improvement in business performance based on trust and technologies performance for FY2013 and FY2014 and lay the groundwork for the future corporate management. In the Medium-Term Business Plan for 2015 to 2017, the in every possible business environment. We will improve management objective we set calls for aiming to our business performance significantly over the next three Looking at the recent business environment of the significantly improve business performance based on trust years by taking advantage of the favorable economic company, both the public and private sectors have and technologies. We have specified three key initiatives conditions in Japan. remained strong partly because earthquake reconstruction for achieving this objective: improving basic capabilities, projects are at their peak. The overall management improving corporate capabilities by placing technological environment is expected to remain favorable until the proficiency at the core, and improving the capabilities of 2020 Tokyo Olympic and Paralympic Games. At the same human resources. time, though, there are people who claim that the construction industry is approaching a significant turning Ordinary Income Targets (consolidated) Improving basic capabilities （Billion yen） point, due in part to the integrated revision of three laws Based on the significant improvement of safety, which is 6.0 5.5 related to construction companies (the Act on Promoting the most important element of construction work, we will 4.9 Quality Assurance in Public Works, the Construction improve our basic capabilities as a construction company 4.0 3.8 Business Act, and the Act for Promoting Proper Tendering by securing and improving quality, securing reasonable and Contracting for Public Works). The industry faces a profit, and improving the financial standing, for example. number of issues, including a shortage of human 2.0 resources, the need to develop human resources, rising Improving corporate capabilities by placing labor costs, and responding to the diversification of technological proficiency at the core tendering and contracting methods. In addition to improving the abilities of our employees, we 0 will work to improve our engineering capabilities and FY2015 FY2016 FY2017 In these circumstances, our company made this year a new ability to develop technologies together with the on-site start of the 71st year since its foundation. We have taken capabilities of our affiliates. At the same time, we will take this new beginning as an opportunity to review our basic measures to enhance our comprehensive corporate policies on management and corporate activities, such as capabilities, including measures to boost our sales our management philosophy, and revise them together capability by applying the previously mentioned on-site Conclusion with the framework for our CSR activities. In addition, we capabilities. Under our new management philosophy and the have formulated our Medium-Term Business Plan for 2015 Corporate Activity Guidelines, all the officers and to 2017 in March 2015, under which we will aggressively Improving the capabilities of human resources employees of Tekken Corporation will make concerted launch initiatives aimed at dramatically improving our We will further commit to recruitment activities and efforts, aiming to be a company that satisfies customers, business performance. human resource development. At the same time, we will contributes to society, and employees are proud to talk create an environment in which all employees -- including about with their families and find to be a rewarding place Establishment of the seven principles of young employees, female employees, and senior to work. In, I would like to express my appreciation for the employees -- can enjoy working. continued understanding and support of our shareholders Yasuo Hayashi the Corporate Activity Guidelines under and customers. President and the new management philosophy: Aiming for significant improvement of business Representative Director Implementation of the Corporate Activity performance September 2015 Guidelines as the basis of our CSR activities Working on these three key initiatives, we will improve our technological and corporate capabilities and build up We have been promoting CSR activities based on our customer trust so that we can continue our active growth management philosophy and a company codes of “trust

3 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 4 Implementation of the Corporate Activity Guidelines

Tekken’s CSR framework Seven principles of the Corporate Activity Guidelines and specific initiatives

ISO 26000（※1） Organizational governance Human rights Labor practices Environment Fair operating practices Consumer issues and development Community involvement We promote CSR activities in line with our company codes Corporate of “trust and technologies” and our new management Keywords Details of initiatives Activity Guidelines philosophy (revised on September 1, 2015). In conjunction with this revision, we established the Corporate Activity Guidelines consisting of seven principles (established on We strive to be the most reliable adviser for our customers and September 1, 2015), and positioned the implementation consider customer needs from their perspective, responding We devote ourselves to “customer-first immediately to their needs with technologies and services of these guidelines as the basis of our CSR activities. In principle”, make company-wide efforts designed specifically with the customers in mind. At the same time, we make company-wide efforts to create new value for Customer-first principle to improve quality and technologies, and addition, we have picked up elements of the Corporate customers. challenge new fields. In addition, we seek to determine the level of quality truly Activity Guidelines in the form of keywords and organized needed by society and produce highly-reliable products in a more efficient manner, aiming to improve customer satisfaction. them as the CSR framework for Tekken. We aim to form safer, more functional land through construction We contribute to the sustainable projects, such as development of core infrastructure and urban development. In the event of a disaster, we contribute to recovery development of society through and reconstruction efforts by making effective use of our Social contribution construction projects and aim to be a management resources. Consciously aware that we are part of corporate citizen that helps revitalize the local communities in which we do business, we cooperate and collaborate closely with them to help with their development local communities. Customer- and vitalization. At the same time, we strive to be a company first principle coexists in harmony with society.

Social Based on our belief that technologies form the basis of safety, all Pursuit of We secure the safety of customers, local of the divisions make concerted efforts to include effective safety contribution communities, and workers, aiming for measures in our construction projects to secure the safety of safety Pursuit of safety customers, local communities, and workers. If an accident should Company Codes zero accidents resulting from our take place, we will respond to it promptly and appropriately, business activities. investigate into its cause, and make every possible effort to Trust and technologies prevent its recurrence.

Management Philosophy We disclose information in a proactive, fair, equitable, and timely Working in line with our company codes of manner to people connected to Tekken Corporation, including “trust and technologies,” we create safe and We improve the transparency of our shareholders, customers, and business partners. These activities Fair, sound Communication high-quality social infrastructure that satisfies Communication with management and communicate broadly go beyond the scope of information disclosure required by law. our customers. Through these activities, we will We also disclose information about our relationship with society, corporate with our stakeholders to establish a with contribute to the prosperity of society, grow stakeholders such as our management philosophy, management policies, sustainably, and aim to be a company that activities faithful relationship of trust with them. corporate activities, and social contribution activities. We strive to stakeholders earn the trust of society by properly clarifying our approach to employees are proud to talk about with their management and the corresponding details. families and find to be a rewarding place to work. We observe laws, regulations, social norms, and our own internal We respect fundamental human rights, rules that we have established. We respect fundamental human rights and continue to conduct fair and sound corporate activities Human resource observe laws, regulations, social norms, Preservation and Fair, sound corporate within every aspect of our operations, both in Japan and improvement of development and internal rules, and carry out sound, overseas. These activities are essential for the existence of a and creation activities fair corporate activities. This approach company, and lie at the heart of business management. global We work to build an organization in which information is freely ensures that we retain the trust of environment of vibrant exchanged and all members share the details of problems to workplaces society. prevent errors. This level of cooperation ensures that we retain the trust of society.

To minimize the environmental impact of our construction activities, we actively promote initiatives for conserving resources Preservation and We continue activities from the global and energy, increasing the recycling rate, reducing waste, and reducing the use of hazardous substances. point of view to ensure that future improvement of We will also work on the practical application of newly-developed generations will enjoy a better global technologies that help to protect the environment, and engage in global environment environment. activities from a global point of view. Through these consistent and steady efforts, we ensure that future generations will enjoy a better global environment.

We place the right people in the right jobs to create a company for self-actualization, in which each employee can make use of Human resource development We will create a company that is rich in their abilities and independently to achieve a fulfilling family life creativity, fosters diverse and innovative and enriched level of welfare. At Tekken, we respect the privacy of each and every employee. and creation of vibrant human resources, and is a pleasant and We also strive to ensure the proper management of personal workplaces fulfilling place to work. information and create fair, upbeat workplace to provide an environment in which each employee can exercise their full potential.

*1: IS0 26000 is an international standard that was discussed and formulated by many different stakeholders from both developed countries and developing countries around the world. It is not a management standard intended for certification. It serves as a manual of reference for organizations in forging a concept of corporate social responsibility that is effectively shared by all the members of each organization. 5 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 6 Implementation of the Corporate Activity Guidelines Customer-first principle

We devote ourselves to “customer-first principle”, make company-wide efforts to Relationship of trust with customers to establish uniting design and build as one improve quality and technologies, and challenge new fields. Tokyo Seimitsu Hachioji Plant No.6 Plant

Hachioji building site office “Customer-first principle” we think is to think in the customers’ place the needs of customers who place orders for work, the attitude of promptly responding to their needs with the service and technologies from the point projects, we have discussions with customers on the design of their view, and to provide the environment that all people can live with a smile such as safety and Work on design and build using 3D model by BIM from design phase, and BIM is helpful in convenience of people who use traffic infrastructure and buildings. As design and build project can work on the work uniting design confirming customers’ desire in more firm form by utilizing as department and construction department our company a one, it support tool of decision making. Create new value of customers and a smile to station users too. becomes possible to excellently work on not only in terms of efficiency and cost but in terms of quality and environment. In Seismic control system which does not block Elevated Station East Work Section 1・2 near Niigata Station the project for construction of new plant building No. 6 at the Hachioji Plant of Tokyo Seimitsu Co., Ltd. that we are working important windows JV Niigata Station Site Office on at the moment, we The lens-shaped seismic control damper is a seismic control use Building member with high energy absorbing ability processing low-yield Information Modeling overpass that cannot be moved, restricting the available routes point steel (LY material) equipped with large elongation (BIM) for the design for bringing in materials and equipment. After holding repeated performance. By arranging it in stud type, the arrangement and have employed a discussions with the organizations involved, such as JR, the city which does not impair lighting lens-shaped seismic government of Niigata, the police, and the bus companies, we from windows and the control damper. We have decided to use a route that cuts across the bus rotary. In scenery as far as possible, and apply our proprietary addition, because we need to change the pathways for the stairs at the same time, it excels in technologies and strive and the transfer passengers to the platform multiple times, we architectural design. to construct a building are paying special attention to the passengers who use the Conceptual drawing of Tokyo Seimitsu that will satisfy the Hachioji Plant No. 6 Plant prepared by BIM station as we move forward with the construction work. Our own technology that customer. improves earthquake Working towards full- Work on BIM of our company resistance without affecting scale opening in FY2021, the production line of plant Projects to develop the area around the station are under way at we are making company- for preparing for occurrence At present, increased numbers of company in the construction Lens-shaped seismic control JR Niigata Station, which is the entrance to Niigata City. The core wide efforts through our industry are using BIM which comprehensively control drawing of great earthquake and for damper (jointly developed by project consists of the continuous grade separation project in construction work, information, cost and management information. The design long life of building was Tekken Corporation, Tobishima the area near Niigata Station on the Shinetsu Line in which a aiming to offer new Corporation, and Nippon Chuzo department of our company too is working on BIM and is using presented and adopted. Co., Ltd.) conventional railway in the 2.5-kilometer section, including the value for the customers, “walk-through” function which can freely look at the inside of station, will be raised to eliminate grade crossings. By alleviating improve the convenience Existing platform and newly-constructed building of 3D model at planning and basic design phases. BIM traffic congestion and ensuring traffic safety in this way, the of the passengers who pillars is also helpful for less-experienced young employees to deepen project aims to integrate the north and south areas of the town use the station, and help enrich their lives. their understanding of building by confirming 3D. In other that are currently separated by the railway.

VOICE Construction work on the new elevated bridge between the Report from the construction site Shinkansen (bullet train) overpass and the conventional railway VOICE Report from a designer in operation is currently underway in a limited area, where the time schedule may be Shunsuke Miyazaki Ikuko Wada affected significantly by Yusuke Shibasaki Architectural Design Department Architectural Design Department the construction methods Railway engineer (Architectural Group) (Structure Group) or machinery used. We Architectural Division Architectural Division are in charge of the This is a multi-purpose building in which This is the first project that I was section on the east side Because the upper slab of the the machine production factories are involved with after I was assigned of the station, which overpass we are constructing will housed on the first, fourth, and fifth floors, to the Structure Group. I was consist of the narrow hang over the operating railway, we cannot use ordinary while there are offices on the second and mainly responsible for the creation areas close to the train Platform used by passengers stands next to third floors. The building is home to various of structural drawings in the the construction area. concrete form shoring. Instead, we are erecting a makeshift tracks and station users. gantry that hangs over the railway by using completed types of facilities which require high level of technologies. The first design work, following the instructions of my supervisor, middle beams. This gantry will be used as the work floor has an approximately 3,000-square-meter industrial clean who was in charge of the structural design. The station operates all day long, and securing the safety of platform for placing the slab concrete. Work to install the room, while the fourth floor has a factory where special chemicals Prior to this project, I never really had any experience in station users is a major premise. In our company, work gantry must be performed at night after the last train has are used. In designing the building, we planned the production steel construction design or other similar works. I feel a experienced staff of branch office and staff of head office left, so we are currently working hard to set it up. lines, use conditions, and other elements in detail with the deep sense of achievement with being involved in the engineering department positively participate in the The work has attracted a lot of interest from passengers customer. The entire design process took about a year to complete. design of such a large-scale building and seeing my work construction-study meetings held at every major turning point using the station because the construction site is in full In addition, this customer had been in contact with us since before through to the end. and are responding to the expectation of customers by always view. We are always aware of the fact that people can see the launch of the project, and their factories had been refurbished At present, the work is in progress and I can be engaged in pursuing “what is the priority of customers?” and “where is the what we are doing, so we give top priority to safety and many times due in part to changes in production conditions. For the supervision work. I am impressed every day to see the needs of customers” not interrupting train operation and the flow of passengers these reasons, we applied a design that makes room for future drawings prepared on the desk raising up in 3D whenever I in the management of the site. possibilities, which is one of the features of the building. go to the site. There are some facilities and shops under the Shinkansen

7 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 8 Implementation of the Corporate Activity Guidelines Social contribution

We contribute to the sustainable development of society through construction projects and aim to be a corporate citizen that helps revitalize local communities. For people’s life Connection with local community We restored the railway track on JR Yamaguchi line damaged by heavy rains by reducing Take good care of communication with local Experiencing what they learned in railway construction period. community engineering Disaster recovery of No.6 Abugawa Bridge, Yamaguchi line Superstructure Work of Oishigawa Bridge, Practical training for university students Chubu Traverse Expressway Abugawa River No. 6 construction site on the Yamaguchi Line Construction Technology General Center Sakuho PC Site Office JR Yamaguchi Line suffered event, everyone waved at the steam locomotive Yamaguchi, the Four years ago Nihon University began using our Training Center great damage, including the famous train of the Yamaguchi Line, as it crossed the No. 6 At Sakuho construction site, we planned from the for extracurricular classes. This year, about 120 students of the destruction of bridges, Bridge that spans the Abugawa River. The driver responded in commencement of the work toward the completion of the work university visited the Training Center and took part in lectures during the torrential rains turn by tooting the whistle, which sounded like a roaring lion. various events to take good care of friendship with people in that made use of its facilities. The students were divided into that hit the north of The impressive sound of the whistle and beauty of the ceremony local community. In parent-children observation tour of the three groups and took turns learning about platforms, railway Yamaguchi Prefecture and continues to linger in our minds. whole of Chubu Traverse Expressway held during summer tracks, and grade crossings, taking breaks from time to time. west of Shimane Prefecture holidays, we worked out study paper craft of a bridge and They listened attentively to explanations given right in front of on July 28, 2013. As a result planned to have children taken interest in the bridge railway equipment and facilities they normally cannot touch. of the damage, railway construction work. During construction period, we invited traffic along a 19.0 people in the local community to hold a site observation tour. kilometer section of track We elaborated explanation of the work in details using a model between Jifuku and Four bridge piers broke off from the base, and a panel of the bridge. We had the tour people gone up Tsuwano was interrupted. causing bridge girder to fall. onto the bridge which cannot go up when the bridge is completed. They were very pleased about having a good Our company took charge of the restoration of No.6 Abugawa commemoration. The lead of a ward presented to us a letter of bridge and erected bridge girders constructing new two appreciation stating that Sakuho PC construction site served as a abutments and one pier after removing damaged piers. For the basic point for creating local community. substructure of the new bridge, the number of pier which had been previously four units was reduced to one unit and cylindrical type of pier was changed to oval type to reduce the resistance of water and rubble. The superstructure (about 80m Waving at the steam locomotive together with people from the local community on the day the entire railway line resumed operation. long) was constructed by means of “crane erection method” which bridge girders are put on temporary column erected in Overseas infrastructure construction the river using crane and girders are connected by bolts. Improvement work of Vietnam Railways Students learning how to measure the width of railway track International Division Have people more understand construction The bridge on the North- South Railway of Vietnam industry were built about 100 years Sendai Station Expansion of East West Free Cherry blossom viewing tour from on the bridge held early Spring ago when the country was Passageway・East Exist Station Building under French colonial rule, bit most of these bridges Sendai Station Renaissance site office were damaged during the Vietnam war. Though these Inauguration ceremony held at Da Nang We are making efforts to have student desiring to work in damaged bridges were City in Vietnam (October 2012) construction industry know what sort of thing is a general repaired after the war, most contractor and what sort of business is a general contractor of them were the re-use of old structures as they are and have doing by experiencing actual construction site. Going round Bridge girders erected been used while reinforcing the existing bridges. Because of this, construction site under construction, we explain daily cycle, roles Though many problems had trains cannot run at high speed and social life and economic of general contractor and outline of our company. By taking been piled up toward early activities are affected thereby. Model of bridge structure used in Study paper craft of a bridge at time for communication with employees working on the site, we resumption, the restoration explanations of the work parent-children observation tour have students deepen their understanding to the job of actual period initially planned 14 From February 2010, our company has been carrying out the construction management. months was reduced by about improvement work of 23 bridges out of the 44 deteriorated one month, and we could bridges along a 1,710 km section between Hanoi and Ho Chi achieve the resumption of the Min City. In June 2015, the improvement of the last bridge was entire line operation on August completed. train operation hours between Hanoi and Ho Chi 1, 2014 by association with Holding a banner together with local Minh which had taken more than 30 hours are reduced by 6 each party concerned and apple farmers as we see off the steam hours. Taking advantage of technologies built up over many locomotive. various efforts. On the day the years in the railway construction work in Japan, we will Yamaguchi Line resumed operation, we held an event in which contribute to the development of emerging countries through people from the local community, JR, and our employees the construction in the field of transportation infrastructure in celebrated the resumption of operation together. During the overseas too. Letter of appreciation was presented from the head of a ward at farewell party. Intern students listening to Students get hands-on work site explanations at work site experience going up on scaffolding.

9 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 10 Implementation of the Corporate Activity Guidelines Implementation of the Corporate Activity Guidelines Pursuit of safety Communication with stakeholders

We secure the safety of customers, local communities, and workers, aiming for zero We improve the transparency of our management and communicate broadly with accidents resulting from our business activities. our stakeholders to establish a faithful relationship of trust with them.

Construction Technology General Center equipped with hands-on facilities Letting our stakeholders know what is Communications with affiliates Learning about safety with full-scale railway obtained a license as a happening now at Tekken Corporation (Excellent technician certification system and tracks for practical training and scaffolding vocational training school achievement commendation) from the Chiba Prefectural Disclosing information internally and The construction industry in recent years has faced a shortage of The Construction Technology Government that allows externally in a proactive manner skilled technicians, due in part to the aging of construction General Center (Narita City, people from outside to use We disclose information in a proactive, fair, equitable, and timely engineers, insufficient number of newly-employed individuals, Chiba Prefecture) combines its facilities. It has also been manner to people connected to Tekken Corporation, including and a decline in the retention rate. This shortage has raised the functions of a Research certified by the Chiba Labor shareholders, customers, and business partners. These activities awareness of the looming danger that the construction industry & Development Center with Bureau of the Ministry of go beyond the scope of information disclosure required by law. will be unable to survive unless countermeasures are taken. To those of a Training Center. Health, Labour and Welfare Train protection training We also disclose information about our relationship with society, help avert this danger, in 2009 the Japan Federation of The premises contain a as a registered training such as our management philosophy, management policies, Construction Contractors compiled recommendations for full-scale, 150-meter-long institute for skill training courses related to slinging operation. corporate activities, and social contribution activities. We strive securing and developing construction technicians. We are taking double track (for practical Through these and other initiatives, we are encouraging people Grade crossing and railway tracks on the premises to earn the trust of society by properly clarifying our approach to initiatives based on their recommendations. training) and facilities such as of the Construction Technology General Center outside the Tekken Corporation to use the center. In addition, by management and the corresponding details. Using media such full-scale makeshift providing safety training and other forms of ordinary training, as brochures and the website page shown below, we strive to One of these initiatives involves the introduction of a new scaffolding and vertical shaft, as well as various research the center also allows educational institutions affiliated with the tell our stakeholders about what is currently happening at system in FY2014. In this system, foremen recognized to be facilities. These facilities allow people to witness the Japan Society of Civil Engineering, universities, and other Tekken Corporation. outstanding professionals are certified as excellent technicians development of new technologies related to railways and other institutions to tour the facilities. and receive special commendation from the company. forms of transportation infrastructure, and have a chance to use safety equipment for construction work. We will continue to Accident Information Exhibition Center By recognizing and commending excellent technicians (foremen) develop the Construction Technology General Center as a facility We have established the involved in construction work undertaken by Tekken for pursuing safety within construction work, making the Accident Information Corporation, we aim to raise the motivation of all the necessary improvements to equipment so that people can learn Exhibition Center to keep a technicians who do construction work and help improve the about the ever-changing conditions of construction sites and record of the problems and quality of the work we do at Tekken Corporation, observe time safety measures through hands-on experience. accidents we caused during schedules, and protect the environment. These are the goals of Practical ability to ensure safety acquired construction work and apply the excellent technician certification system of Tekken through hands-on experience the lessons learned in future Corporation. In FY2014, a total of 22 persons from across Japan operation. The panels on were certified under this system. Certified excellent technicians At the railway facility of the Construction Technology General display at the center show Information about past accidents on become eligible to receive special commendation if their display at the Accident Information Top page of website t-mail Center, we provide people with training on how to calmly how the accidents happened, Medium-Term achievements recognized by the company after engaging in Exhibition Center respond to accidents that may occur. This training is designed to the damage they caused, Business Plan construction work for a specified period of time. In FY2015, 11 help engineers acquire practical skills for minimizing the damage their causes, and the people received commendation. resulting from accidents. During training engineers practice countermeasures that were taken to address them, providing handling a simulated accident in a real railway facility, such as visitors with an opportunity to learn lessons from accidents. The immediately reporting the accident to related parties and taking permanent display of this information prevents past accidents measures to protect the train. from being forgotten, ensures that they are conveyed to Establishment of the Public Relations younger generations, and help engineers better realize the Department in April 2015 In addition, the Construction Technology General Center has importance of safety and cultivate their own acute awareness. In April 2015, we established the Public Relations Department in an effort to consolidate our PR activities, which were originally Safety check performed at all locations across in minor injuries to two crew members. However, if the train had carried out individually by branches and people at different been running during normal operation hours, the accident could the country on Accident Prevention Day construction sites. This department will help to improve the have been a major catastrophe. quality of these activities and tell more people about Tekken On April 8, 1970, a gas explosion occurred at an Osaka Corporation. The Public Relations Department will introduce Municipal Subway construction site, where Tekken Corporation To ensure accidents do not happen again during railway various construction projects we have been involved in and was conducting construction work. This accident resulted in construction, we have designated February 23 as Railway disclose other information, enabling us to provide our deaths and injuries of many people. In light of the severity of the Construction Safety Day. Activities to prevent the accident from stakeholders with an added sense of security and earn more accident, we designated April 8 as Accident Prevention Day, and being forgotten are carried out on Railway Construction Safety trust from them. Employees in the Kanto district who were certified as excellent technicians in use it as an opportunity to renew our pledge to never to cause Day every year. Everyone involved in railway construction work FY2015 such an accident again. watches a video re-enactment of the accident, and executives from the head office and branches visit construction sites at Each year on Accident Prevention Day, safety checks are night not to forget the lessons learned from the accident. performed at all of our locations across the country. The Project Manager of each construction site checks the safety Number of work accidents （FY2010 to FY2014）

management systems and facilities, ensuring that employees do Number of accidents Frequency (Average of general construction companies) not become complacent in regards to safety activities and （Number of accidents） Frequency (Tekken) Frequency (Target for the year) （%） 30 3.0 helping to maintain safety standards in construction work. 25 24 Executives from the head office and branches also visit 25 2.5 construction sites at various locations across the country. 20 19 2.0 1.56 15 1.35 Railway Construction Safety Day 15 1.25 1.5 1.37 1.0 10 10 0.9 1.0 On February 23, 2014, the construction work we were doing at 1.12 0.91 0.85 0.83 5 0.7 0.5 JR East Kawasaki Station caused a train to derail and roll over. 0.86 0.9 0.90 0.57 Six members of the new department Excellent technician gives speech at commendation ceremony, reaffirming his Because the train was out of service, the accident resulted only 0 0 FY2010 FY2011 FY2012 FY2013 FY2014 commitment to conduct better construction work

11 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 12 Implementation of the Corporate Activity Guidelines Implementation of the Corporate Activity Guidelines Fair, sound corporate activities Preservation and improvement of global environment We respect fundamental human rights, observe laws, regulations, social We continue activities from the global point of view to ensure that future norms, and internal rules, and carry out sound, fair corporate activities. generations will enjoy a better global environment. This approach ensures that we retain the trust of society.

Corporate governance system Risk management Efforts to develop technologies for are involved in building the Kombu Tunnel (Katsuradai) and other structures for the Hokkaido Shinkansen, we have installed Our corporate governance is based on an executive officer To deal with various risks promptly and appropriately, we work biomass gas power generation a belt conveyor that runs through the entire tunnel. This system, which clearly defines the management strategy function to prevent risks and respond to them when they occur, prevent Since the Great East Japan Earthquake, interest has grown in conveyor helps us reduce the use of dump trucks in an effort to of the Board of Directors and the operation execution functions risks from reoccurring, and take other actions based on our rules natural energy and renewable energy, reflecting concerns over curb the generation of CO2. This initiative also reduces the of Executive Officers. To establish execution policies, we have set related to risk management. As part of these activities, we have power supply shortages and global warming. In 2011, we generation of dust and up the Corporate Management Committee as the deliberative established a system for minimizing the impact that earthquakes constructed an experimental plant at the Nasu Kogen Service alleviates other problems organ that advises the President. and new strains of influenza have on society and on our Area of Tohoku Expressway to conduct power generation caused by vehicles business performance. All of our employees are involved in demonstration experiments using biomass gas produced from running in the tunnel, General creating our Business Continuity Plan (BCP) for these situations. the mown grass and pruned branches in areas along the thereby helping to Meeting of However, we do more than just make plans. Each year, we hold Shareholders Sections in charge of management expressway. At this plant, we are conducting a joint research and improve the strategies and executing operations a disaster drill in line with the BCP that simulates the occurrence development project with NEXCO East Japan. Through the environment in the pit. of an earthquake with a seismic intensity of at least 6-Lower on Appointment Corporate Management Committee experiments, we check the effectiveness of the system and make the Japanese scale in Tokyo. This drill helps to train us and keep improvements to save labor and power, automate the system, Compliance Committee us prepared to quickly restore social infrastructure as well as Belt conveyor installed on the left side of and implement other measures needed for the full-scale the pit Risk Management Committee ensure our business continuity. operation of the system. President Directors Board of Execution After reviewing these plans and our past activities, the Kanto Environmental protection activities of operations Regional Development Bureau of the Ministry of Land, by Executive Officers Infrastructure, Transport and Tourism has officially recognized We implement environmental protection activities to minimize Internal audits Internal our basic capability of sustaining business during a disaster. the environmental impact of our construction activities and Auditing Department prevent pollution of global environment. Audits Board of Auditors Whistleblowing system Tekken Environmental Code of Conduct Corporate Auditors In our effort to strengthen compliance management, we have set up a whistleblowing system that applies to all officers and 1 Enhance environmental management. Board of Directors employees of our group and business partners. The system aims 1 Carry out activities to enhance environmental management. The Board of Directors consists of up to 15 Directors. It to collect information about problems, such as illegal conduct, 2 Take measures to address the use of chemicals in new construction projects. determines the basic policies and important matters that lurk within corporate organizations (corporate scandals) and regarding the management of the company, and supervises 3 Establish environmental protection technologies and promote prevent the spread of these problems through the company’s Biomass gas power generation plant being enhanced the execution of duties by Executive Officers. own efforts to address them, thereby maintaining the trust of their application. employees and society. We will take specific actions to further Specifications of the system 2 Reduce lifecycle CO2 to help create a Board of Auditors improve the effectiveness of this system, such as accepting low-carbon society. The Board of Auditors consists of up to five Corporate anonymous reports, establishing a contact outside the company, Pyrolytic furnace: Externally-heated horizontal kiln 1 Promote environmentally-friendly designs. Auditors. As an organ that operates independent of the implementing exhaustive measures to prevent whistleblowers Processing capacity: 200 kg/h (5 tons/day) Board of Directors, the Board of Auditors checks whether 2 Reduce CO2 emissions in the construction phase. from being treated disadvantageously, and establishing rules Power generator: Power generator with dual fuel engine Directors execute their duties (including the duties of regarding punishment. employees executed under the directions of Directors) in Output: 100 kW 3 Take exhaustive measures to eliminate compliance with laws, regulations, and the articles of construction byproducts. incorporation. At the same time, it conducts accounting Information security training 1 Take measures to eliminate construction waste. audits to ensure the appropriateness of financial statements Initiative to reduce CO2 emissions The leakage of customers’ personal information or information 2 Take measures to manage soil from construction sites. and other documents to be submitted to the General assets caused by unauthorized access or viruses not only greatly In tunnel construction work, the soil excavated in a tunnel is 3 Take measures to eliminate hazardous waste. Meeting of Shareholders. damages our credibility, but also threatens the existence of our generally transported out by dump trucks, although this depends on the length of the tunnel and construction businesses. Measures to address these information security risks 4 Make a conscious effort to preserve Corporate Management Committee conditions. At the Kombu Tunnel construction site, where we need to be taken by the entire organization. It is also important biodiversity. The Corporate Management Committee meeting is held to have all employees share a common awareness of these risks. every week to improve the efficiency of executing operations At Tekken Corporation, we conduct e-learning to educate all and control the overall execution of operations. During the employees on information security and ensure they understand meeting, it deliberates and makes decisions on matters its importance. One security measure we have established is a Environmental data related to business management in accordance with the rule in which only USB thumb drives specified by the company CO2 emissions (t-CO2 / billion yen) Emissions of mixed construction Energy usage (kl) basic management policies determined by the Board of may be used to exchange data internally or with external parties. ■Civil engineering ■Building construction waste (kg/m2) Crude oil equivalent Directors. ■Total

Executive Officers 15.8 3.784 The Executive Officers oversee the execution of operations. 14.6 1,011.1 3.275 3.390 3.348 Fulfilling this role, they promptly make decisions regarding 2.987 2.656 2.734 the execution of daily operations. 2.526 9.8 2.434 2.373 9.4 967.0 8.1 962.1 Internal Auditing Department 1.644 946.6 932.9 1.301 1.436 1.456 As the department in charge of internal audits, the Internal 1.214 Auditing Department conducts business audits and provides directions for improvement. To perform these duties, it A security-protected USB thumb drive studies our overall operations in accordance with our internal 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 audit rules and internal audit plans, as well as our Fiscal year Fiscal year Fiscal year management policies and business administration rules and systems.

13 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 14 Implementation of the Corporate Activity Guidelines Human resource development and creation of vibrant workplaces

We will create a company that is rich in creativity, fosters diverse and innovative Opinion exchange session with Raising employees to be human resources, and is a pleasant and fulfilling place to work. executive managers -Examining the individual opinions of leaders in the future employees - Human resource development system Creating workplaces where all employees can work vigorously In FY2014, we started to hold opinion exchange sessions between executive managers and employees working at construction sites. These sessions are held after the safety patrols The most important management assets of a company are its Establishment of “Promotion of Childcare and family care support conducted by the executive managers at tens of sites four times employees, and improving the quality of employees is essential Diversity at Work” systems a year. They were started in response to the President’s desire to to ensure the continuous improvement of corporate value. We Today many companies are making efforts to promote diversity. We strive to create comfortable workplaces, aiming to be a make Tekken Corporation a highly integrated company in which focus our efforts on developing each one employee by They take initiatives to respect and accept the differences of company where employees can achieve work-life balance and all people, including the employees working out in the field and coordinating between their immediate manager and the individual employees, as well as enhance their organizational speak proudly of to their families. the top management, stand together in unison. The opinion personnel management section of the head office or branch. exchange sessions help create an open workplace and power by taking advantage of these differences. These moves We have introduced systems such as maternity leave, childcare This training is provided to all employees in each job class, have spread to the construction industry, where hopes are high leave, shorter working hours so employees can look after their encourage active communication between people in the Job-class-specific regardless of their job category or specialty. It helps to company. training improve their knowledge of the company’s current that women and people of other nationalities can fully apply kids, and family care leave. These systems help employees situation and their management knowledge and skills. their abilities. At Tekken achieve a balance between work and childcare and between All the opinions brought forward at the sessions are collected by The purpose of this training is for employees to acquire the head office and shared at a meeting attended by all the Specialized Corporation, we have work and family care. We review the rules regularly and take the respective knowledge and skills required for each job executive managers. All training established the Promotion other initiatives to enhance these systems, so that life events category or specialty. possible countermeasures are of Diversity at Work, a specific to women, family circumstances, or other developments These training programs are aimed at improving promptly implemented, and all employees’ knowledge and skills for specific purposes, group that promotes the do not prevent employees from continuing their careers. Training for the opinions that need to be such as obtaining the qualifications needed for railway diversity of employees. specific purposes deliberated are discussed right construction work and becoming proficient in a foreign Promotion of Diversity at Work meeting language in preparation for an overseas assignment. away. When necessary, responses are given to people Female construction employee My experience with childcare from construction sites who Operational improvement activities of Tekken Corporation leave brought forward their “What do we need to do to make our current work safer, more opinions. Executive managers discussing opinions Fusako Takahashi Akiko Kato they received from employees efficient, and easier to understand?” Sendai Station Renaissance construction site Civil Engineering Department, We regularly hold workshops for operational improvement. Tohoku Branch Civil Engineering Division Groups are organized to run these workshops, which are held at Club activities that facilitate I have been working for two years at the Renaissance I have three children who are quite a handful. When I gave our head office, branches, and construction sites. Each group construction site of Sendai Station, which is the gateway to birth to my first child, I was really worried about whether I communication determines the agenda for operational improvement at the beginning of the workshop, and then uses it as the basis for the Tohoku region. There we are working on a large-scale would be able to keep working at the company because We support internal club activities to promote the creation of discussions. This process is repeated several times, and the development project outsourced by the city government of many of my acquaintances had left their jobs after they had motivating work and workplaces through active communication. opinions of the group are summarized at the end of the Sendai to expand the free passage and construct a new kids. Seeing my senior co-workers taking advantage of the There is a baseball club, tennis club, running club, skiing club, workshop and reported to the head office or branch. station building at the east exit above the conventional childcare support systems so that they could raise their kids, hiking club, and an ikebana (Japanese flower arrangement) club Presentations are given on opinions that are considered to be railway. I have to work hard every day under many harsh I decided to try to achieve a balance between childcare and and other clubs. The company provides these clubs and other excellent so that all employees can be made aware of them. construction conditions, but I find the project to be really work. internal clubs with financial assistance for their activities. These workshops serve as motivating work because the building we are constructing I was concerned about being away from the workplace for Through the activities of various clubs, we work to sustain and opportunities for employees will be used by millions of people every year. a long time. I now have three children, but am able to strengthen friendly ties that bring employees together, maintain to review their own The construction site I work at together with my peers and continue working actively at the same division, just as I did and promote good health, and help employees become more operations and share ideas on other skilled professionals is a dynamic workplace unlike in the past. My third child is still only two years old, but well-rounded individuals. any I have experienced. I sometimes find the work to be thanks to the understanding and cooperation of the people improvements and labor- physically demanding and feel that I need to improve my I work with, I am able to balance childcare and work by saving measures, which in skills. Still, in the long term I want to keep pushing on, but taking advantage of the childcare support of the company, turn help to boost operating making sure not to overdo it. I hope that the options sick/injured child care leave, paid leave, and other systems. I efficiency and productivity. available to women will include jobs at construction want to continue contributing to society as a member of Presentation meeting companies. the company as I watch my children grow up every day. Diverse and timely awards programs We have introduced a diverse range of programs for granting Trainer system awards to employees for various services related to safety We have introduced a new employee trainer system in which a senior co-worker works with a new Skiing Club Hiking Club activities, quality control, and social contributions, such as employee who is unfamiliar with their work and the workplace. They spend a year together with the completing a construction project without any accidents or new employee, giving instructions and helping them develop. injuries, and satisfying customers with superior quality. Major clubs In addition to regular commendations, this year we introduced a Bui Van Cao (from Vietnam) Senior Tetsunori Ohgi New co-worker Charider Club (bicycle club) program for granting awards as appropriate for services that employee JV Hazawa construction site as the JV Hazawa construction site deserve prompt recognition. By Tokyo Branch trainer Tokyo Branch Baseball Club providing examples of Skiing Club In my first year at the company, I was As I worked daily with a new employee, I excellent corporate activities motivated to learn my job and be recognized realized the difficulty and importance of Ikebana (Japanese flower arrangement) Club and initiatives through these as an engineer as quickly as possible. My communication. The act of instructing someone Ukulele & Plus Club diverse and timely awards trainer gave me instructions and advice on not made me aware of my own shortcomings and Club Taikobo (fishing club) programs, we seek to raise the only my job, but also the rules and etiquette a working member things I about myself I had never noticed. My experience as a trainer Hardball Tennis Club motivation of other employees of society is expected to follow. He created weekly schedules so was a good opportunity for me to deepen my own knowledge and Osaka Arukou-kai (Osaka Branch Hiking Club) and enhance our corporate power. that I could acquire skills and supported me by checking up on my skills. I believe working with a junior co-worker not much younger Running Club Awards ceremony progress. All of his support really helped me develop. than you will be invigorating experience for both of you. Hiking Club

15 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 16 Our businesses Our businesses

Railway Interview with officer in charge of business Interview with officer in charge of business Civil Construction Drawing upon our high level of technological Improving our comprehensive corporate Engineering capabilities to tackle large-scale projects and capabilities to ensure safety and high station improvement work quality

FY2014 overview and results FY2014 overview and results In March 2015, the Tohoku Jukan Line (Ueno-Tokyo Line) opened. It was an incredibly In preparation for the 2020 Tokyo Olympic and Paralympic Games, related construction difficult construction project unlike any ever attempted in Tokyo because the site was projects are underway predominantly in the Tokyo Metropolitan Area. Tekken located in an area filled with shopping streets, offices, and residences, all set alongside Corporation is involved in three construction projects related to the Tokyo Outer Ring the Shinkansen (bullet train) and other operating railways. Work was further Road, applying our strengths in the area of transportation infrastructure. complicated by the fact that the railways ran above a crossing of main roads. We took In FY2014, we enjoyed a dramatic increase in the number of orders received. One of the great care not to drop objects on the railways or roads, and moved forward with significant factors behind the increase is the improvement in the business environment construction work with the greatest possible consideration for the environment, of construction companies. However, I believe this is also a testament to the success of maintaining this approach until the completion of the project. our initiatives to improve our capacity to propose technologies and quantity survey skills. This year we will continue with seismic reinforcement work, including the reinforcement Some of the major construction projects for which we received orders include large- of embankments and elevated bridge support, to prepare for the Tokyo inland scale projects, such as those related to the Hokuriku Shinkansen and Kyushu Shinkansen earthquake that experts predict will occur sometime in the future. We are determined to and construction of new expressways, as well as large-scale projects for local continue contributing to society by playing a role in creating disaster-resistant railways. governments.

FY2015 initiatives FY2015 initiatives Tokyo has been selected as the host city of the 2020 Olympic Games and Paralympic To achieve our FY2015 goals, it is imperative that we improve our productivity while Games. Facilities for the games will be developed around stations, and many more ensuring safety and high quality. people will travel by train. Orders are expected to be made for the improvement work of One important initiative for the current fiscal year is to focus our efforts on the mainly stations close to competition venues, transfer stations on the waterfront, and development of our employees and affiliates, and improve our technological capabilities stations that offer access to Haneda Airport. We are already involved in a project at in quality control, safety management, and other related areas. We will also promote Shimbashi Station, which is being done as part of the work to improve transfer stations initiatives for computer-aided construction. In order to improve the efficiency and level on the waterfront. This general improvement work consists of the construction of a new of our construction production system, we will utilize 3D models for tunnel construction large roof, platform expansion, and the integration of the north and south concourses. for the Hokkaido Shinkansen and work on the lower structure of bridges for the We are aggressively conducting sales to win work on the Chuo Shinkansen (Linear Ministry of Land, Infrastructure, Transport and Tourism. We will also improve our Motor Car) project. To better promote the strengths of the Tekken Corporation, we productivity by having the control departments of the head office and branches check highlight the technologies we have developed in our railway construction work, our the productivity of construction sites and properly allocating human resources across the Takashi Kasai technology development products, and the railway construction safety systems that we company. Shuji Yamato own. Through these and other initiatives, we aim to improve our comprehensive corporate Executive Officer and General capabilities. We will make concerted efforts to achieve the goals for the fiscal year and Director, Senior Managing Officer, Manager of the Railway exert all our strength to respond to the growing market needs in the midst of tough and Executive General Manager of the conditions in the construction environment. Project Office Civil Engineering Division

North section of the Tohoku Jukan Line Construction work on the Kombu Tunnel (Katsuradai) Construction work of Bridge No.1 at Wabukagawa Shimbashi Station improvement work (Ueno-Tokyo Line) project site and other structures for the Hokkaido Shinkansen on the Kinki Expressway Kisei Line

The Tohoku Main Line, Takasaki Line, and Joban Line have been directly The aim of this project is to transform Shimbashi Station, which was the This project involves the construction of a long, large tunnel on the Hokkaido Applying the cantilever erection method, we constructed a 142-meter-long PC connected to Tokaido Line by improving the railway tracks between Tokyo terminal of Japan’s first railway line, into a modern station. The project involves Shinkansen that is currently being built. The total length of the tunnel is 4,800 2-span continuous rigid-frame box-girder bridge at the section between Station and Ueno Station, and constructing elevated bridges along this section. work such as the construction of a new large roof, platform expansion, seismic meters. Excavation work is now in progress, with the tunnel scheduled to be Nankitanabe Interchange and Susami Interchange (tentative name) on the Kinki The purpose of this project is to make it easier for passengers to change trains reinforcement, and the renovation of the brick arch bridge. completed by March 2022. Expressway Kisei Line. and reduce congestion.

17 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 18 Our businesses Our businesses

Interview with officer in charge of business Interview with officer in charge of business

Architecture Actively working to set up businesses International We do our best to provide buildings that outside Japan to establish a proven satisfy customers. track record and improve our competitiveness FY2014 overview and results In FY2014, all the architecture employees worked together and did their best to safely deliver high-quality architectural structures to customers. In the railway sector, we fully FY2014 overview and results committed ourselves to large-scale construction projects, such as projects at Sendai In FY2014, we worked mainly in the railway field, which is one of our major strengths. Station, Nagano Station, and Kawasaki Station. Our slogan for work in both the public We moved forward with a project in Vietnam to renovate railway bridges. In June 2015, and private sectors is “buildings that satisfy customers.” We played a role in a number we completed the replacement of the last (23rd) bridge, and the project reached a of outstanding projects, including the construction of a training facility of a national major milestone without any problems. We are proud of our contribution to improving university, condominium tower, and a series that serve as accommodation for workers transportation infrastructure through this project, and believe that it has enabled us to involved in earthquake reconstruction efforts. This sense of dedication and commitment take our first step in earning the trust of the people and companies in Vietnam. At the has enabled us to provide architectural structures that delight customers and users. same time, we are also steadily developing our expertise in construction projects outside Japan, and our employees are improving their abilities through on-the-job training in other countries. We also employ non-Japanese employees, and an increasing number of our employees have become more globally-minded. FY2015 initiatives The Yangon Office we opened in Myanmar is our fifth operating base outside Japan. We engage in sales activities focused on Asia, narrowing down targets while broadening The economy has steadily recovered in FY2015, and this improvement has begun to our perspective of the market. boost the construction industry. In the field of architecture, we will take full advantage of this favorable trend to establish a firm structure for reliable construction work and a system capable of providing follow-up support to customers with meticulous attention to detail, and thereby strive to maintain and improve all the technologies we have. At FY2015 initiatives the same time, we will continue to do our best to provide high-quality and Most of our projects outside Japan are civil engineering projects. Moving forward, we environmentally-friendly architectural structures. intend to actively tackle projects in the architectural sector as well. We have started to We also intend to contribute further to the earthquake reconstruction efforts, cooperate strengthen our sales capability by enhancing the activities of local offices and the with nationwide initiatives to promote disaster prevention measures, participate in support functions of the head office. Thanks to these efforts, we received an order in projects related to the Tokyo Olympic Games that are now underway, make proposals May 2015 for an overseas architectural project in Myanmar, where our new office is for customers’ capital investment plans, and engage in other activities. We will make full located. This was our first architectural project outside Japan in 16 years. use of our disaster-prevention and quake-resistant engineering abilities as we undertake In the future, we plan to provide local staff from other countries with training in Japan. these activities, such as our proprietary AWAT Method (which creates partial slits on We will also focus our efforts on developing human resources from various countries. walls by using bubbles to make the structure resistant to earthquakes), as well as In the area of civil engineering, we will focus on transportation infrastructure projects, Nobuhide Aikoshi state-of-the-art technologies such as the Building Information Modeling (BIM), which Yasushi Nakagawa such those related to railways. In the architectural sector, we will contribute to mainly ensures a high level of quality and efficiency in design and construction. Through these emerging countries through the construction of hospitals, schools, and other facilities. Director, Managing Officer, efforts, we aim to put a smile on every customer’s face. Executive Officer and Executive General Manager Through these projects, we will help develop social infrastructure in other countries and General Manager of International of the Architectural Division play a role in creating a rich living environment for people all over the world. Division of the Civil engineering Division and Architectural Division

Grand Maison Marunouchi Educational training facility of Kyoto University Renovation of bridges on the national railway Lashio General Hospital Improvement Project of Vietnam

Source: JICA website

This condominium tower boasts the latest equipment (a reinforced concrete This is educational training facility is for a 5-year graduate school (Graduate We replaced old bridges, each of which were constructed about 100 years ago, This is our first construction project in Myanmar. In this project, we rebuilt the building with 18 aboveground floors and one basement floor), and is located School of Advanced Integrated Studies in Human Survivability). It aims to with new bridges. We were responsible for 23 bridges, accounting for 75% of only general hospital in the north of Shan State in east Myanmar. in the city center of Nagoya. produce future leaders who will respond to the needs of society. the 44 bridges scattered along the 230-kilometer railway.

19 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 20 Special Feature Tekken & Hokuriku Shinkansen The construction site was on a slope, 1 so we devised an innovative Our longtime possession measurement approach to conduct Power of People out in the Field for Hokuriku Shinkansen a survey for this difficult project. Protection facilities for Itoigawa Tunnel and The Hokuriku Shinkansen is now up and running, making it possible for passengers to travel between Tokyo and Toyama or other structures Kanazawa in as little as 2 hours and 28 minutes. We were Itoigawa construction site (*See No.12 on the map on Page 21.) involved in many facets of this historic project. We faced many Genba no We performed a wide variety of work along a 30-kilometer section in C H I K A R A challenges during construction, but we overcame each one by ・・・・・・combining our technological capabilities with our longtime Itoigawa City to help prepare for the opening of the Hokuriku Shinkansen. passion for the Hokuriku Shinkansen. This work included surveys, repairs, cleaning, the addition of facilities for Shinkansen structures, slope protection work at 13 tunnel mouths (installation of rockfall protection fences, slope reinforcement, and the addition of maintenance and inspection equipment), and the construction of railway protection fences and fences to prevent encroachment. During construction, we set up four monorails (maximum length: 800 meters) and two cable cranes (diagonal length: 110 meters) to transport materials. The work also required the use of a 50-meter-high aerial work platform and shutting down part of expressway road. We also handled additional construction work after the Shinkansen opened in March 2015. 3D laser scanner for the safe and efficient surveys of steep slopes Niigata The angle of the slope of the tunnel mouths was steep, measuring between 40 degrees The slope angle of the tunnel mouth where we and 45 degrees. We installed steel rockfall worked was 40 degrees or more. protection fences, ladders, and staircases at points about 50 meters above the mouths. Naturally, there were no construction paths leading to these locations. We continued to climb up the hills, pushing through grass and bush until we finally reached the locations where the structures were to be installed. However, the slopes were so steep that it was nearly impossible to survey the locations without the use of scaffolds. To compensate for this, we used a 3D laser scanner to project laser beams at a safe place and quickly create data of the entire complex slope, based on which we formulated various plans. This allowed us to focus our Souichi Hirata, efforts on proceeding efficiently with construction work in the limited time available before the Major construction work on the Hokuriku Shinkansen Project Manager tunnels opened. (section between Nagano and Kanazawa) NAGANO STATION

We became involved with the Hokuriku Shinkansen Project in 1994 when Civil Protection facilities for the Itoigawa Tunnel and other structures 12 Engineering (Itoigawa construction site) we constructed the Kanazawa land bridge (east) and other structures. A Civil Itoigawa Oshiage and Teramachi Renewal of JR Nagano Station, the gateway to the Shinshu large number of our employees were involved in the construction work to 13 Engineering land bridges and other structures Niigata Prefecture Civil Matsunoki Tunnel (east) and other help create tunnels, elevated bridges, bridges, stations, rail yard, and 14 Engineering structures Area – The project advanced simultaneously with others in other structures for the Hokuriku Shinkansen Project, which ran for 21 Joetsu Myoko years and came to an end with the start of operation in 2015. The map 14 preparation for the opening of the Hokuriku Shinkansen Itoigawa 13 below provides an overview of the sites where we did construction work 12 Civil Improvement of structures and other facilities 15 15 Engineering (within the jurisdiction of the Hokuriku Bureau) Construction of the new Nagano Station building and other structures for the project. 16 Civil Joetsu South District (PC girder) 11 16 Engineering 10 17 (*See No. 21 on the map on page 21.) Civil JV New Nagano Station building construction site 18 Bridge over the Yashirogawa River Kurobe Unazuki Onsen Civil Bridges over the Takahashigawa 17 Engineering 10 Engineering River and eight other sites (PC girder) 19 Civil Construction of structures such as a new The project to construct the new Nagano Station building was Construction of new snow melting 18 Engineering intersection bridge on the Shinetsu Line conducted in coordination with the extension of Hokuriku 11 Architecture facilities at Yanagida and three other sites 9 Civil Iiyama Tunnel (Kamikura) and other 19 Engineering structures Shinkansen to Kanazawa. For the new building, which was Toyama 8 Iiyama Civil Morimoto Station land bridge and constructed while improvements were being made to the station 4 Engineering other structures 6 7 Civil Construction of the new Akanuma land square, columns reminiscent of Zenkoji temple’s gate were used 5 Construction of new snow melting facilities 20 7 Architecture at Gohonenoki and six other sites 20 Engineering bridge and other structures to make the station look more aesthetically appealing. Civil 8 Engineering Uozu Rokuroumaru elevated bridge 21 Gunma Construction work began two months later than the schedule Kanazawa 4 Nagano Prefecture because obstacles in the ground needed to be removed. Despite Civil Uozu Hebita elevated bridge 9 Engineering this setback, everyone involved worked Kanazawa Station land bridge (east) and 3 Civil Civil Construction of the new Nagano Station building and other structures 1 Engineering other structures 2 5 Engineering Toyama Inari Chitose elevated bridge 21 Architecture (JV New Nagano Station building construction site) together to complete work within the 1 Toyama Civil Bridges over the Yasuharagawa River and Civil Toyama Hoki sprinkling snow melting scheduled period, finishing in time for the 2 Engineering five other sites (PC girder) Prefecture 6 Engineering facilities and other structures Takasaki opening of the Hokuriku Shinkansen. To Civil 3 Engineering Bridge over the Fushimigawa River Gifu Nagano reduce the amount of work on the site, we Ishikawa Prefecture Prefecture used a rebar truss deck and a Quick Deck, Prefecture which allows for work to be performed simultaneously on the lower level, in the construction of the structure. We also increased the number of workers for the final finish work. With these and other creative Fukui measures, we were able to finish the project without any problems and meet the deadline. Kazuhiko Kawai, Project Manager Uozu Hebita elevated bridge Matsunoki Tunnel (east) and other Toyama Inari Chitose elevated (Uozu City) structures (Joetsu City) bridge (Toyama City) Fukui Use of the Quick Deck, a suspended work platform system Prefecture We used the Quick Deck, a suspended makeshift work platform, to do the construction work. This made it possible to improve workability and conduct multiple tasks simultaneously, and shorten the construction period. It also allowed us to improve safety, such as by Tsuruga preventing objects from falling on the Nagano Station features columns which are reminiscent of ground while doing work in high places. Zenkoji temple’s gate. Bridge over the Yashirogawa River Construction of the new Akanuma Iiyama Tunnel (Kamikura) and Construction of the new Nagano (Joetsu City) land bridge and other structures other structures (Iiyama City) Station building and other structures (Nagano City) (Nagano City)

21 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 22 Special Feature Tekken & Earthquake Reconstruction A lack of hotels leads to delays in reconstruction. Construction of 2 new hotels Hotel construction project to support the Standing together as we work to reconstruction of the Tohoku region Power of People revitalize communities and bring about out in the Field The Route Inn Group, which operates hotels in Japan and other

様似 countries, has launched a hotel construction project to support reconstruction as soon as possible 室蘭 reconstruction efforts and address the shortage of accommodation 江差 facilities for people involved in projects to aid earthquake The Great East Japan Earthquake was a devastating disaster that inflicted heavy reconstruction. We have been placed in charge of constructing most of damage on the railway networks. At Tekken Corporation, we are working on Touhoku Area the hotels for this project. The disaster-affected areas face many projects to construct new railway routes on high ground in the Tohoku region difficulties, from serious shortages of construction materials and Genba no workers to delays in finalizing reconstruction plans. We coordinated and help to bring about reconstruction as soon as possible. We have completed Hachinohe C・H・I・K・A・R・A the project through various activities, such as negotiating with local a large number of projects involving the construction of accommodation governments, arranging plots of land for planned construction, and facilities, which are essential for reconstruction efforts after earthquakes, as well making different suggestions related to the design. We began as facilities for radioactive decontamination. Akita Morioka construction of the first hotel in Miyako City, Iwate Prefecture in April 2013, and completed seven hotels with 1,320 guestrooms in a span of 1 Hotel Route-Inn Miyako two years. Restoration of Reusing existing elevated bridges 2 Hotel Route-Inn Kamaishi the Senseki Line 3 Hotel Route-Inn Kesennuma to quickly resume operation Yamagata Sendai Niigata 4 Hotel Route-Inn Tome Recovery from the damage left by the Great East Japan Earthquake Yonezawa Fukushima 5 Hotel Route-Inn Ishinomaki Chuo Nagaoka Koriyama (Nobiru section on the Senseki Line) Senseki Line Nobiru construction site 6 Hotel Route-Inn Tagajo Eki Higashi

Tatsuya Sukegawa Ustunomiya 7 Expansion of Hotel Route-Inn Engineer Maebashi Mito Iwaki Izumi Eki-Mae Omiya The conversion of elevated bridges that 1 Hotel Route-Inn Miyako 7 Expansion of Hotel Route-Inn already exist was a task unlike any other Iwaki Izumi Eki-Mae ever attempted. There were many points that needed to be considered, such as the connections for changing the inclination, and these involved a lot of hard work. The successful completion of the project left me with a great sense of achievement. VOICE Report from the project team

Many of the construction sites we worked on were located in the middle of the affected area, so we had a lot of difficulty finding accommodation when we arrived. After we started construction, we had trouble securing a sufficient amount of The aim of this project was to restore the JR Senseki Line by moving railway materials, equipment, and workers. This forced us to make various arrangements, such trucks on the section between Rikuzen-Otsuka and Rikuzen-Ono, including Tona as ordering steel beams and interior materials from the Chubu and Kinki districts and Station and Nobiru Station, to higher ground. For this project, we reused the bringing in specialists and workers from all over the country to build makeshift existing elevated bridges, which were relatively new and had not been accommodation facilities. “Earliest possible reconstruction” was our slogan, and we damaged by the earthquake. We cut the bridges, raised them, and then worked hard to complete each hotel and help bring about reconstruction as soon as changed their inclination so that they could be reused. We worked hard to possible. The construction of several more hotels is planned to provide continued complete the project as quickly as possible to meet the local residents’ desire for support for reconstruction efforts. In May 2015, we started the first of the remaining the early resumption of operation. Work underway to convert the existing projects, “Construction of the New Hotel Route-Inn Iwanuma (in Natori City, Miyagi elevated bridges Reconstruction support project team Prefecture/ tentative name).” Undertaking various types of Restoration of work at the same time, Working hard to quickly realize the peace the Joban Line from work on elevated bridges Decontamination to tunnel construction of mind sought by the people of Fukushima Recovery from damage caused by the Great East Japan Earthquake Koriyama work site for subcontracted decontamination (Yamashita section No.1 on the Joban Line) work from Koriyama City Joban Line Yamashita construction site Satoru Kitamura We have been proactively decontaminating areas that were contaminated Engineer with radiation caused by the Fukushima Daiichi Nuclear Power Station accident that took place in March 2011. When it comes to decontamination The purpose of this project was to work, each person living in one of the affected areas is a customer, and it is construct a shallow overburden tunnel on our duty to respond to each of their requests. We have made unconsolidated piece of land, so the work improvements by seriously considering the feedback we receive from each We use an aerial work platform Words of thanks we conditions were pretty tough. Despite the customer. This sincere approach has earned us their gratitude, and many of and other equipment to wipe received from a resident. difficult conditions, we had no problems in them have offered words of thanks. gutters. completing the tunnel work. We all felt a sense of achievement, and the staff members were able to share in the joy of VOICE Report from the work site finishing the tunnel during the ceremony to celebrate the completion of work. The people of Koriyama City still face the impact of the Great East Japan Earthquake and the nuclear accident within their daily lives. This fiscal year the project to decontaminate residences in The section targeted for construction work is nearly 4.8 kilometers long (while Koriyama City has entered its final stage, and there are approximately 200 workers at our site the total length of the section to be moved is 14.6 kilometers). We handle involved in decontamination work. I’m in contact with many different residents, which in turn has various types of work, such as work on the elevated bridge section, the open reminded me of the importance of communication, such as making myself clear to avoid section, and the tunnel section. A lot of different arrangements need to be misunderstanding and checking to see if they correctly understood what I said. Words of made, such as the procurement of a wide variety of materials and equipment. appreciation from local residents, such as thanks for decontaminating their houses or helping Aiming for early restoration, we continue to work day and night, even pouring them feel at ease going about their daily lives, really makes me feel that we are helping to make Yasushi Kuzuya concrete in the middle of winter and curing it properly. We are working hard their lives better. Assistant Project Manager towards the resumption of operation in an effort to meet the expectations of Ceremony to celebrate the completion of local residents. tunnel work at the Tohanayama No. 2 tunnel

23 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 24 Special Feature Tekken & Historic Preservation Hands-on-learning museum about the Kitora Tomb, 3 Preserving Japanese history for future conveying the ancient culture of Japan to future Power of People generations out in the Field generations Asuka construction site of the project to construct a new hands-on-learning museum in the area The restoration of historic buildings and preservation of cultural heritage are around the Kitora Tomb important tasks in passing down history and tradition to future generations. At Tekken Corporation, we apply our skill and expertise within projects that seek to preserve history for posterity. The Kitora Tomb is a round barrow 14.5 meters in diameter and approximately 3 meters in height. The tomb was built around 700 AD, but it is not known who was buried there. It is believed that this tomb is the resting place of a person of great power and influence. The walls of the stone chamber inside Genba no the tomb are decorated with pictures of four gods representing the four directions, and twelve zodiac C H I K A R A ・・・・・・figures with animal heads and human bodies that come from ancient Chinese thought. This was the first mural painting discovered in Japan in which all four gods remain visible. On the ceiling of the Tackling the challenge of restoring the Tokiwabashi chamber is a painting of star chart, which is believed to be the night sky of ancient China. It is one of the oldest pictures of this kind remaining in East Asia. The mural paintings inside the tomb were Bridge, a National Historic Site discovered by an exploration in 1983, and the tomb was designated as a special historic site by the Picture of Black Tortoise in the government in 2000. stone chamber (Source: Asuka Site of restoration work on the Tokiwabashi Bridge at the remains of the Tokiwabashi Gate, Village Board of Education) a National Historic Site Hands-on-learning museum as In the Edo Period, the Tokiwabashi Bridge was a wooden structure that stood in front of the main gate the focal point of Asuka Village of Edo Castle (Edo-jo) on a road leading to the Oshu Kaido Road. In the year 1877, which was in the middle of the Civilization and Enlightenment phase of the early Meiji period, the wooden bridge was At the Asuka Historical National Government replaced with a new stone structure. This bridge was created by masons who combined the Park in Asuka Village, the center stage of engineering knowledge for laying foundations on the soft ground of Edo (Tokyo) with masonry ancient Asuka, a development project is techniques from Kyushu. The new bridge boasted an impressive design which featured a limestone underway to transform the entire area around master column with an octagonal cross-section, cast-iron handrail fence decorations with a foliage the Kitora Tomb into a place where people can scroll pattern, double arches over the Nihonbashi River, and other decorative elements. The enjoy a hands-on learning experience about Tokiwabashi Bridge was the precursor of modern stone bridges, and is one of the oldest stone bridges Photo of Tokiwabashi Bridge the history of Asuka. The hands-on-learning still standing in Tokyo (excluding ones in gardens) today. In 1928, it was designated as a cultural taken in 1877. The Bank of Japan museum we are building will be the focal point heritage included as a part of the Tokiwabashi Gate remains, a National Historic Site. Other building can be seen in the back of this area. It will consist of a main building architectural structures that were built around the same time as the original wooden Tokiwabashi (Source: Japan Cultural Heritage that stores and exhibits cultural heritage Bridge include Himeji Castle (Himeji-jo), which was later registered as a UNESCO World Heritage Site, Consultancy). artifacts, an annex building with a hands-on and Matsumoto Castle (Matsumoto-jo), which is a national treasure. learning facility, and a dining facility. Designed to be in harmony with the surrounding Architectural facilities and outdoor facilities A huge space in the basement of the main The Great East Japan Earthquake that struck in 2011 also environment, the main functions of each in harmony with the surrounding building had an impact on historic sites in Tokyo. The voussoirs of buildings are housed underground on the environment basement floor. The buildings are connected to Tokiwabashi Bridge moved about 30 centimeters near the (Data source: Kinki Regional Development Bureau, the Ministry of Land, Infrastructure and Transport) levee crown and 20 centimeters in the direction of the right each other via underground passages. bank. In addition, some of the voussoirs sank as much as 8 centimeters downward. As a result, the decision was made Protecting the cultural heritage from to conduct a large-scale restoration project. Because the bridge was in danger of collapsing, we started by water supporting the bridge from below. Construction is being conducted in a way that does not disturb the landscape. For example, we have built a temporary office with a reed Tokiwabashi Bridge before the Arch falsework assembled to hold screen roof, a temporary enclosure made of start of the restoration project the voussoirs transparent panels, and green-colored fences. The new buildings need to have reliable The next step was disassembling the bridge. We made a record of each of waterproof performance to preserve the more than 6,000 stones to preserve the current state of the stone bridge. precious cultural heritage artifacts for future Using this data, we conducted the structural analysis needed for Annex building consisting of green parts Main building designed to be in harmony generations. The quality of concrete used for restoration before actually starting on the restoration work. aboveground and a huge underground space with the landscape the buildings is also important for waterproofing. We employed a transparent Currently, disassembly work is still in progress. We assigned a control concrete frame made of synthetic resin, which number to each one of the stones forming the bridge, recorded the allows us to confirm that the frame is densely Tokiwabashi Bridge with only voussoirs remaining filled with concrete. After pouring the following disassembly work dimensions and characteristics of each, and stored them in a special location place. We also conducted a 3D survey (photographic survey) at concrete, we wet cured it by covering it with a each step, thereby collecting data that will help us restore the bridge to its mat containing a water-holding material to original state. prevent the concrete from drying before it has had time to sufficiently set. In addition, we use We will continue to consult the Japan Cultural Heritage Consultancy, which water stops in the horizontal concrete joints, is in charge of design and overseeing the restoration, and discuss the which are prone to leak water. After casting optimal disassembly and restoration methods. Based on these discussions, the concrete, we conducted a leak test pouring we seek to apply our advanced technologies in helping to preserve this Use of transparent formwork makes it Curing sheets which prevent the concrete in water to confirm that there were no leaks precious cultural heritage. possible to confirm that it is densely from drying from the joints. filled with concrete.

Stones stored and managed after the disassembly VOICE Report from the work site

VOICE Report from the work site Our construction site is located beside the Kitora Tomb, which is believed to have been built in the Asuka Period around the end of the 7th century. When completed, the museum will allow visitors to see a model of the tomb and materials related to it. The museum will also store and exhibit mural The disassembly work of the Tokiwabashi Bridge, which is a National Historic Site and cultural paintings found in the tomb. The mural paintings are assets that are national treasures, so the heritage, must be conducted after carefully studying the actual conditions of the bridge. Top priority building used to store them must be sturdy and designed to provide the proper storage must also be given to restoring the bridge to its original state. The disassembly work is an arduous environment. The quality of the building frame is one of the most important points to control. task because it involves the careful recording of the data on each individual stone. However, we are Humidity has the most damaging effect on the preservation of cultural heritage artifacts, so we determined to do our best to write Tekken Corporation’s name into the history books without have carefully studied different factors to prevent the entry of water via the underground exterior tarnishing the 140 years of history of the Tokiwabashi Bridge, the classic stone bridge. walls. We also place emphasis on ensuring the buildings are in harmony with the surrounding area Shingo Orita Hiroshi Matsumoto and natural environment, a fact that is reflected in the roofs and exterior walls. Project Manager Assistant Project Manager

25 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 26 Special Feature Tekken & Technologies 4 Continuous improvement of technologies We used this ground-cutting JES method at the Futatsuke Komichibashi Bridge between Okegawa and Kitamoto, Power of People where the Ken-O Expressway (Metropolitan Inter-City to expand their scope of application Expressway) and the JR Takasaki Line intersect. We laid an out in the Field upper floor slab with an approximately 1.4-meter earth cover below the railway tracks. The use of this method enabled us to complete work in five months, which was half the time of the initially-planned period of 10 months. The early completion of work demonstrated the effectiveness of the ground-cutting JES method. Ultra-low headroom cast-in-place Construction work at the Futatsuke A bounding stone cut with the Genba no Komichibashi Bridge between ground-cutting wire C・H・I・K・A・R・A piling method Okegawa and Kitamoto Applying a technology developed for train station improvement work to the seismic retrofitting of road bridges VOICE Report from a developer

Train station improvement work usually involves the construction of a large station building with commercial Method features Efforts to improve the method facilities on a small and confined site. This kind of work ❶ Use of a lightweight, compact machine that is 1.8 meters This method is an improved version of the HEP & JES method, which has been applied in high and weighs approximately 4.0 tons requires a compact pile drilling machine that can drive many projects. We began development with detailed analysis of past construction work in large-diameter piles. In response to this need, we have ❷ High performance that makes it possible to drive large-diameter which the old method was applied. This analysis helped us to identify issues and problems piles of between 0.8 and 3.0 meters in diameter developed the ultra-low headroom cast-in-place piling with the method, after which we planned and studied proposed countermeasures, and method (hereafter the "C-JET18"). This method was jointly ❸ Systematized control of excavation then repeated element tests and verification tests until we finally arrived at the current developed by Tekken Corporation, East Japan Railway ❹ Reliable track record with already more than 100 piles driven in cutting mechanism. When we applied the new method for the first time in work at Company, and Toa-Tone Boring Co., Ltd., bringing together railway-related work Futatsuke Komichibashi, we proceeded by addressing issues that arose during work. Rie Iwasawa the best technologies from each company to create a Thanks to this approach, we were able to complete work without any problems and Civil Engineering means for driving large-diameter piles in a compact space. without affecting the road surface. Moving forward, we will strive to improve the safety Technology Department, The method allows for the driving of piles up to 3 meters in of work as we actually apply the method in many more projects. Civil Engineering Division diameter under an operating station platform.

We plan to expand the scope of application of the C-JET18 and apply its advantages to other types of work, such as the seismic retrofitting of road bridges. The approach section of an elevated road bridge has a small overhead space under the girder, making it difficult to drive piles for reinforcing the structure and expanding the footing. For AWAT Method this reason, extra temporary work must be performed, such Example of application to the A compact machine that fits into - A method which creates partial slits on the walls of existing structures - as earth retaining excavation to secure a sufficient amount lower structure of a road bridge the area around the piling point of work space. The use of the C-JET18 makes it possible to drive piles on the existing ground surface when there is There is a seismic retrofitting method in which gaps Method features only around 2.5-meters of overhead space under the girder, (“structural slits”) are created between the walls and thereby eliminating the hassle of extra temporary work. columns of an existing architectural structure to prevent ❶ Creates partial slits that ensure the same level of seismic resistance the entire structure from collapsing in the event of an as full slits. earthquake. ❷ Use of bubbles reduces water leakage, noise, vibration, and dust. Allows for residents to continue living in the building during work. VOICE There are two types of structural slits. One is a partial slit, ❸ Report from a developer which is created by leaving a part of the wall uncut, while the other is the full slit, which penetrates through the wall. The AWAT Method developed by Tekken Corporation has Expanding the scope of application been recognized to be effective when it is applied to This method makes it possible to drive large-diameter piles despite the extremely spandrel walls below windows and hanging partition walls compact size and light weight of the machine with which it uses allowing us to above windows. As a result, it was officially recognized by a perform work under platforms or in other small spaces. It has been applied for many public institution. different types of work, with the most common being train station improvement work. We are also developing peripheral technologies in response to the needs of on-site The AWAT Method employs bubbles (a foam solution) work, thereby ensuring safe, high-quality piling work. Moving forward, we would like instead of water to create partial slits in walls. This reduces to actively promote the advantages of this method and expand the scope of Masaki Takayama the amount of water discharged when the wall is cut. It Civil Engineering also reduces noise, vibrations, and dust. In addition, water application to the seismic retrofitting of important structures, such as road bridges and Core drill method Wall saw method transmission line towers. Technology Department, does not leak into the inside of the structure because Civil Engineering Division partial slits do not penetrate through the wall.

We have established an AWAT Method study group, and it has been applied to seismic retrofitting work in both the public and private sectors. The ground-cutting JES method employs a ground-cutting Ground-cutting JES method wire mounted on the upper surface of the cutting edge at the end of the element. The wire cuts the ground mixed Proven track record in the pursuit of safety with obstacles while the cutting edge penetrates the through the further improvement of underpass ground. This prevents subsidence, and if an obstacle VOICE Report from a developer appears, the wire cuts only the part of the obstacle that construction method needs to be cut and removes only the part of the obstacle that is inside the cutting edge. This makes it possible to Repetition of application and improvement The HEP & JES method, a non-open-cut underpass conduct element drilling without affecting the surface of construction method we developed, was introduced more the road or railway. We developed the AWAT Method as a seismic retrofitting method that solves the than 13 years ago and has been applied in 130 projects in problems of seismic retrofitting work -- noise, vibration, and dust -- and allows for various parts of Japan. However, because it is a residents to continue living in the building while work is being done. Following the non-open-cut method in which construction work is official recognition of this method by the Building Center of Japan, we have received no undertaken directly below a road or railway being used, Method features complaints about water leakage, noise, dust, or other problems from customers living in obstacles that appear during element drilling may affect ❶ Element drilling is conducted by cutting obstacles with a wire. buildings in which this method has been used. The residents have rated this method Makoto Uehara highly, which gives me more confidence as a developer. We will continue technological Architectural Technology the surface of the road or rail tracks. Thus, when an ❷ The wire can also cut cobbled stones and concrete rubble. underpass is constructed under a railway, the construction development by improving existing cutting technologies in an effort to make the method Department, work is usually performed at night when there is no train ❸ The roof of the cutting edge is inserted in advance to stabilize even more effective. Architectural Division traffic. the face.

27 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 28 Gallery of Completed Work Gallery of Completed Work

Bridges and Improvement of Public Medical/Welfare Railways Shinkansen Elevated Tunnels Shields Station Buildings Schools Residences Civil Bridges and Stations Facilities Institutions Seismic Residential Hotels and Office Commercial Research Architecture Retrofitting Land Sports Underpasses and Disaster Maintenance Dams Accommodations Buildings Facilities Facilities Engineering Development Facilities Prevention

Sotokuroyama Tunnel No.2 Construction of the new on the Hokkaido Shinkansen Shukutoku Yono High School building We handled the construction work along a 1,840-meter-long section of track We constructed a new building for between Shin Aomori and Shin Shukutoku Yono High School. The new Hakodate-Yuto on the Hokkaido building is equipped with a geothermal Shinkansen, including an 818-meter air conditioning system and employs a tunnel in Sotogahama Town in Aomori number of creative measures to create a Prefecture. The section is located in a student-friendly environment that cold district that receives a lot of snow in supports their education. the winter, so we had to work hard to meet a tight deadline.

Construction Project No.2 for the upper structure of Construction of Yukawa Tunnel No.3 on the Construction of Chiba Building Construction of the Okayama branch of Chugoku the Joyama Elevated Bridge on Noetsu Expressway Nachikatsuura Road We received an order from a private enterprise to construct this building. It Transport & Tourism Bureau buildings We were in charge of the construction of a 345.5-meter section on the The Nachikatsuura Road is intended to eliminate traffic congestion in serves as both an office and an employee training center, combining The branch office was relocated to these new buildings in the Okayama upper structure of an elevated bridge that is 654.0 meters long. The bridge Shingu City and Nachikatsuura Town, and provide an alternate route in the high-quality design with superior functionality. Research Park (prefectural industrial park). We constructed a government is located near the Nanao Joyama interchange on the Nanao Himi Road, event of a disaster. We constructed a 266-meter section of this road, building for handling bureaucratic procedures related to transportation and which is a part of Noetsu Expressway. including the Yukawa Tunnel No. 3 that runs for 102 meters. a facility for automobile inspections.

Construction of a new station and other structures Land development work on Joban Expressway Construction of a new building at Narashinodai Improvement work of JR Kichijoji Station between Hiroshima and Yokogawa This project involved large-scale civil engineering work on the Joban 1-chome in Funabashi City The Kichijoji area is ranked top among towns where people want to live A new station connected to a new transit system (Astram Line) was Expressway. The total length of the section is 4,250 meters long, and the This building houses a paid nursing home with nursing-care services that according to surveys. We carried out improvement work of the station established between Hiroshima and Yokogawa stations on the JR Sanyo work included the cutting and filling of approximately 790,000 m3 of soil. was a part of plans to make effective use of the land. We have devised building as passengers continued to use the busy terminal station just as Main Line. The purpose of this station is to elevate convenience and the The site is located on a segment of the JR Joban Line that was closed due to numerous creative measures to ensure the residents can feel at ease in their they always have done. ease of access to downtown Hiroshima City. damage from the Great East Japan Earthquake. Residents in the area were surroundings. eager for this section of track to be re-opened as soon as possible.

29 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 30 Financial Highlights (Consolidated)

Orders received/ Net sales （Billion yen） Ordinary income （Million yen） Business performance Million yen 250 4,000 3,619 Orders received FY2010 FY2011 FY2012 FY2013 FY2014 ■ ■ Net sales 70th term 71st term 72nd term 73rd term 74th term 200 193.4 3,000 Orders received 135,205 114,990 135,890 162,842 193,353 162.8 150.7 2,049 2,000 1,938 150 135.9 137.3 Net sales 130,831 130,431 126,609 137,281 150,672 153.2 130.8 130.4 126.6 1,393 115.0 Operating income 2,063 1,323 △640 2,512 2,770 100 1,000

Operating income margin (%) 1.6 1.0 △0.5 1.8 1.8 50 0

Ordinary income 1,938 1,393 △871 2,049 3,619 871 0 -1,000 △ Net income 1,486 △110 △1,234 1,250 1,467 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 （Fiscal year） （Fiscal year） Total assets 152,763 150,614 162,082 166,426 181,367

Net assets 30,501 31,339 34,580 36,138 44,505 Net income （Million yen） Total assets/Net assets/Capital ratio（Million yen／%） Capital ratio (%) 19.7 20.6 21.1 21.5 24.3 2,250 240,000 40 ■ Total assets ■ Net assets Net income per share (yen) 9.52 △0.71 △7.91 8.01 9.40 1,486 1,467 ● Capital ratio 1,500 181,367 1,250 180,000 30 166,426 Net assets per share (yen) 162,082 193.17 198.46 219.17 229.00 282.48 152,763 150,614 750 21.5% 24.3% 20.6% 21.1% Cash flow from operations △834 6,120 △7,982 1,876 △1,648 120,000 19.7% 20

0 Cash flow from investments 329 251 △387 △319 △3,503 110 △ 60,000 10 Cash flow from financial activities △2,559 △3,007 2,193 △310 1,394 -750 44,505 36,138 30,501 31,339 34,580 △1,234 -1,500 0 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 （Fiscal year） （Fiscal year）

Net sales by segment Million yen

FY2010 FY2011 FY2012 FY2013 FY2014 70th term 71st term 72nd term 73rd term 74th term Net income per share Net assets per share Civil engineering 68,449 64,957 58,146 65,974 81,401 （Yen） （Yen） 15 350

Architecture 59,441 63,132 66,662 68,865 66,913 300 282.48 10 9.52 9.40 Real estate 8.01 2,131 1,695 1,148 1,459 1,093 250 219.17 229.00 5 198.46 Others 809 646 652 983 1,262 200 193.17

Total 150 130,831 130,431 126,609 137,281 150,672 0

△0.71 100 -5 50 △7.91 -10 0 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 （Fiscal year） （Fiscal year）

31 TEKKEN Corporate Report 2015 TEKKEN Corporate Report 2015 32 Directors and Auditors About the Tekken Group

Corporate Profile Company name Tekken Corporation Head office 5-3 Misakicho 2-chome, Chiyoda-ku, Tokyo, Japan Nobuyuki Hashiguchi Yasuo Hayashi Established February 1, 1944 Chairman and Representative Director President and Representative Director Capital 18,293,700,000 yen

June 2014: Chairman and Representative Director of Tekken June 2014: President and Representative Director of Tekken Number of 1,559 (as of March 31, 2015) Corporation Corporation employees June 2008: President and Representative Director of Tekken June 2013: Vice President, Executive Officer, and Representative Corporation Director of Tekken Corporation License from the Minister of Land, Infrastructure, Transport and Tourism No. (Toku 24) 1220 Survey: Minister of Land, Infrastructure, Transport and Tourism Registration No. (3) - 29134 Registration First-class architect office: Head office, Osaka Construction Building lots and buildings transaction business operator: License from the Minister of Land, business license Infrastructure, Transport and Tourism No. (12) 1658 Construction consultant: Minister of Land, Infrastructure, Transport and Tourism Registration No. Ken-24 3841

Listed stock exchange Tokyo Stock Exchange (1st Section) Main banks Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, Mizuho Trust & Banking Mikihiko Yamazaki Yasushi Itoh Representative Director Director Business Locations June 2013: Vice President, Representative Director, Executive June 2015: Vice President, Director, and Executive Officer of CSB Shin Chiba Bldg., 1-7-3 Shin Chiba, Chuo-ku, Chiba-shi, Chiba 2-5-3 Misaki-cho, Chiyoda-ku, Tokyo 101-8366 ● Higashi-Kanto 260-0031 Officer, and General Manager of the Corporate Strategy Tekken Corporation ● Head Office Phone: +81-3-3221-2152 Branch Office of Tekken Corporation April 2013: Director, Senior Managing Officer, and General Phone: +81-43-243-3111 June 2012: Director, Managing Officer, and General Manager of DPM Furo-cho Bldg., 2-9-2 Furo-cho, Naka-ku, Yokohama-shi, Manager of the Railway Project Office in charge of ● Construction 9-1 Shin-Izumi, Narita-shi, Chiba 286-0825 Yokohama the Corporate Strategy Office of Tekken Corporation Technology ● Kanagawa 231-8577 April 2012: Managing Officer and General Manager of the the Civil Engineering Division and the Architectural Phone: +81-476-36-2371 Branch Corporate Strategy Office of Tekken Corporation Division of Tekken Corporation General Center Phone: +81-45-664-2211 June 2010: Managing Officer and Manager of the Tokyo Railway June 2012: Director, Managing Officer, and General Manager of the Railway Project Office in charge of the Civil JR Tower Office Sapporo, 2-5 Kita 5-jo Nishi, Chuo-ku, Sapporo-shi, JR Central Towers, 1-1-4 Meieki, Nakamura-ku, Nagoya-shi, Aichi Project Branch of Tekken Corporation Sapporo Nagoya June 2008: Executive Officer, Deputy General Manager of the Engineering Division and the Architectural Division of ● Hokkaido 060-0005 ● 450-6036 Branch Branch Corporate Strategy Office, General Manager of the Tekken Corporation Phone: +81-11-222-6211 Phone: +81-52-581-9225 Corporate Planning Department, and General Manager of the Internal Control Department of Tekken Sankyo Sendai Bldg., 1-12-7 Honcho, Aoba-ku, Sendai-shi, Miyagi Corporation ● Tohoku 980-0014 ● Osaka Dojima Grand Bldg., 1-5-17 Dojima, Kita-ku, Osaka-shi, Osaka 530-0003 Branch Phone: +81-22-264-1322 Branch Phone: +81-6-6343-5581 Toutsu Bldg., 1-11-7 Sakuragi-cho, Omiya-ku, Saitama-shi, Saitama Hiroshima Palace Bldg., 1-1-68 Fuataba no Sato, Higashi-ku, Hiroshima- ● Kan-Etsu 330-0854 ● Hiroshima Branch shi, Hiroshima 732-0057 Shuji Yamato Nobuhide Aikoshi Phone: +81-48-647-6311 Branch Phone: +81-82-262-0141 Ohori Kouen Bldg., 2-1-5 Arato, Chuo-ku, Fukuoka-shi, Fukuoka Director Director ● Hokuriku 6-5 Kasuga-cho, Chuo-ku, Niigata-shi, Niigata 950-0903 ● Kyushu Branch Phone: +81-25-245-2291 810-0062 Branch Phone: +81-92-736-5115 April 2015: Director, Senior Managing Officer, and Executive April 2015: Director, Managing Officer, and Executive General General Manager of the Civil Engineering Division of Manager of the Architectural Division of Tekken ● Tokyo 2-5-3 Misaki-cho, Chiyoda-ku, Tokyo 101-8366 ● Sales offices Morioka, Akita, Mito, Toyama, Shikoku, Kumamoto, Okinawa Tekken Corporation Corporation Branch Phone: +81-3-3221-2235 June 2013: Director, Managing Officer, and Executive General June 2013: Director, Executive Officer, and Executive General ● International Manager of the Civil Engineering Division of Tekken Manager of the Architectural Division of Tekken Jakarta, Taipei, Thai, Hanoi, Yangon ● Tokyo Railway 2-5-3 Misaki-cho, Chiyoda-ku, Tokyo 101-8366 Branch Corporation Corporation Project Branch Phone: +81-3-3221-2365 April 2011: Managing Officer and Manager of the Tohoku April 2013: Executive Officer and Executive General Manager of Branch of Tekken Corporation the Architectural Division of Tekken Corporation June 2006: Executive Officer, Deputy Executive General Manager April 2012: Executive Officer and Manager of the Tohoku Branch of the Civil Engineering Division (business in general), of Tekken Corporation and General Manager of the Civil Engineering Group Companies Planning Department of Tekken Corporation

Tekken-Kousan Corporation Satoshi Yagishita Ikuju Asami * This company was established in 1956 as Chiyoda Kyouei K.K., which was a trading company engaged in sales of Director Director construction materials and machinery, leasing of futon (Japanese-style bed) mattresses, and insurance agency business. In 1990, the company merged with Palace Fudosan K.K. and was renamed Tekken-Kousan Corporation. April 2015: Director, Managing Officer, and Executive General June 2015: Director of Tekken Corporation Manager of the Business Administration Division of June 2015: Executive Officer, General Manager of Shinanogawa In 2004, the company absorbed Tekken Sports Corporation. Currently, Tekken-Kousan Corporation engages in a Tekken Corporation Power Station Improvement Department, Railway wide range of corporate activities, including sales of construction materials and machinery, real estate leasing and June 2013: Director, Executive Officer, and Executive General Operations Headquarters; General Manager of Manager of the Business Administration Division of Construction Department of East Japan Railway management, insurance agency business, security services, temporary staffing services (railway engineers and Tekken Corporation Company (current position) general human resources), and operation of sporting facilities. The company will continue working as a member April 2013: Executive Officer and Executive General Manager of June 2014: Executive Officer and General Manager of the Omiya the Business Administration Division of Tekken Branch Office of East Japan Railway Company of the Tekken Group through a higher level of activities to win and retain the confidence of customers. Corporation April 1982: Joins Japanese National Railways http://tkousan.com/ April 2011: Executive Officer, Deputy Executive General Manager of the Business Administration Division, and General * Outside Director Manager of the General-affairs & Personnel Department of Tekken Corporation JTC Co., Ltd. Satoru Kobayashi Masami Nagamura This company was jointly established in June 1998 by Tekken Corporation, JR East Consultants Company, and Standing Statutory Auditor Standing Statutory Auditor Totetsu Kogyo Co., Ltd. as a company that specializes in construction work which employs the HEP & JES method. This underpass construction method can be used in a wide range of applications, such as railway June 2013: Standing Statutory Auditor of Tekken Corporation June 2013: Standing Statutory Auditor of Tekken Corporation April 2010: General Manager of the Accounting Department of October 2008: General Manager of the Quality Environment underpasses, expressways, walkways, and waterways. This company provides high-quality underpass structures the Business Administration Division of Tekken Management Department of the Internal Control safely and at low cost through the application of unique methods and approaches. In addition, the COMPASS Corporation Division of Totetsu Kogyo Co., Ltd. June 2006: General Manager of the Personnel Affairs April 2001: General Manager of the Quality Control Department Method, a method for constructing underpasses with small cross-sections, offers variations that can be Department of the Business Administration Division at the Yokohama Branch of Totetsu Kogyo Co., Ltd. adapted to various needs. In addition to its core business of providing methods for underpass construction, of Tekken Corporation April 1976: Joins Totetsu Kogyo Co., Ltd. April 1976: Joins Tekken Corporation JTC Co., Ltd. can respond to the different needs of customers with its own proprietary construction methods, such as the tip-preloaded cast-in-place pile construction method and Eco Recharge. The company will continue http://www.j-t-e-c.co.jp/ tackling challenges for developing new technologies in its efforts to achieve sustainable growth.

Jiro Aoki Content and divisions covered by the Corporate Report For inquiries, please contact: Corporate Auditor We position this Corporate Report as an important communication tool, and Public Relations Division, June 2004: Corporate Auditor of Tekken Corporation June 1999: Joins Uchisaiwaicho General Law Office have edited it based on our policy of describing business activities in an easy- Corporate Strategy Office, Tekken Corporation April 1982: Establishes Jiro Aoki Law Office to-understand manner. The report primarily covers our activities in the period Phone: +81-3-3221-2297 April 1972: Registered as a lawyer from the April 1, 2014 to March 31, 2015 and also includes some activities carried out before or after this period. The divisions covered in this Corporate For inquiries by e-mail, Report include divisions at the head office, such as the Overseas Business please go to the following website: Division, as well as branches in Japan and Group companies. http://www.tekken.co.jp/

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