Railway Construction Civil Engineering

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

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