Repair Costs and Risk of Additional Losses Associated with Welding Defects in Bridge Fall Prevention Devices

「Provision for warranties on completed construction work 173 176 Provision for warranties on completed construction work 325 318」

「Provision for warranties on completed construction contracts 173 187」

「Provision for warranties on completed construction work 180 173 Provision for warranties on completed construction work 334 325」

「Provision for warranties on completed construction work 241 180 Provision for warranties on completed construction work 347 334」

「Provision for warranties on completed construction work 241 199 Provision for warranties on completed construction work 347 342」

「Provision for warranties on completed construction work 241 197 Provision for warranties on completed construction work 347 342」

「Costs for repairs to completed construction work 93 －」

「Costs for repairs to completed construction work 60 －」

「¥116 million in damages received was recognized as extraordinary income during the first nine months of the current consolidated fiscal year. The ¥116 million settlement payment was recognized following the settlement of the damages claim lawsuit concerning welding defects filed by our consolidated subsidiary ショーボンド建設株式会社.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥60 million incurred during the first nine months of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥238 million under current liabilities and ¥330 million under non-current liabilities at the end of the third quarter of the current consolidated fiscal year. If defects attributable to the manufacturing process are identified, we will seek reimbursement from the manufacturer for the investigation and repair costs and plan to recognize the proceeds as extraordinary income whenever they are recovered. In addition, ¥116 million in damages received was recognized as extraordinary income during the first nine months of the current consolidated fiscal year.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥53 million incurred during the first six months of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥283 million under current liabilities and ¥330 million under non-current liabilities at the end of the second quarter of the current consolidated fiscal year. In addition, ¥116 million in damages received was recognized as extraordinary income during the first six months of the current consolidated fiscal year.」

「¥52 million incurred during the first quarter of the current consolidated fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, ¥116 million in damages received was recognized as extraordinary income during the first quarter of the current consolidated fiscal year. The ¥116 million settlement payment was recognized following the settlement of the damages claim lawsuit concerning welding defects filed by our consolidated subsidiary ショーボンド建設株式会社.」

「Of the costs associated with the investigation and repairs, ¥194 million incurred during the current consolidated fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. The amount recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥312 million under current liabilities and ¥338 million under non-current liabilities at the end of the current consolidated fiscal year. Additional repair costs may arise during the investigation over the next several years, and the consolidated results may be affected depending on the recovery of costs from the manufacturer.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥90 million incurred during the first nine months of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥213 million under current liabilities and ¥373 million under non-current liabilities at the end of the third quarter of the current consolidated fiscal year. However, additional repair costs may arise during the investigation over the next several years, and the consolidated results may be affected depending on the recovery of costs from the manufacturer. As the timing and total amount cannot reasonably be estimated at this time, the impact has not been reflected in the quarterly consolidated financial statements.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥100 million incurred during the first six months of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥259 million under current liabilities and ¥378 million under non-current liabilities at the end of the second quarter of the current consolidated fiscal year.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥48 million incurred during the first quarter of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥249 million under current liabilities and ¥384 million under non-current liabilities at the end of the first quarter of the current consolidated fiscal year. If defects attributable to the manufacturing process are identified, we will seek reimbursement from the manufacturer for the investigation and repair costs and plan to recognize the proceeds as extraordinary income whenever they are recovered. However, additional repair costs may arise during the investigation over the next several years, and the consolidated results may be affected depending on the recovery of costs from the manufacturer. As the timing and total amount cannot reasonably be estimated at this time, the impact has not been reflected in the quarterly consolidated financial statements.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥265 million incurred during the current consolidated fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥234 million under current liabilities and ¥387 million under non-current liabilities at the end of the current consolidated fiscal year.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥115 million incurred during the first nine months of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥109 million under current liabilities and ¥407 million under non-current liabilities at the end of the third quarter of the current consolidated fiscal year.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥93 million incurred during the first six months of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥103 million under current liabilities and ¥408 million under non-current liabilities at the end of the second quarter of the current consolidated fiscal year. If defects attributable to the manufacturing process are identified, we will seek reimbursement from the manufacturer for the investigation and repair costs and plan to recognize the proceeds as extraordinary income whenever they are recovered. However, additional repair costs may arise during the investigation over the next several years, and the consolidated results may be affected depending on the recovery of costs from the manufacturer. As the timing and total amount cannot reasonably be estimated at this time, the impact has not been reflected in the quarterly consolidated financial statements.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥66 million incurred during the first quarter of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥108 million under current liabilities and ¥418 million under non-current liabilities at the end of the first quarter of the current consolidated fiscal year. If defects attributable to the manufacturing process are identified, we will seek reimbursement from the manufacturer for the investigation and repair costs and plan to recognize the proceeds as extraordinary income whenever they are recovered. However, additional repair costs may arise during the investigation over the next several years, and the consolidated results may be affected depending on the recovery of costs from the manufacturer. As the timing and total amount cannot reasonably be estimated at this time, the impact has not been reflected in the quarterly consolidated financial statements.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥131 million incurred during the first nine months of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥63 million under current liabilities and ¥371 million under non-current liabilities at the end of the third quarter of the current consolidated fiscal year.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥98 million incurred during the first six months of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥98 million under current liabilities and ¥373 million under non-current liabilities at the end of the second quarter of the current consolidated fiscal year. If defects attributable to the manufacturing process are identified, we will seek reimbursement from the manufacturer for the investigation and repair costs and plan to recognize the proceeds as extraordinary income whenever they are recovered. However, additional repair costs may arise during the investigation over the next several years, and the consolidated results may be affected depending on the recovery of costs from the manufacturer. As the timing and total amount cannot reasonably be estimated at this time, the impact has not been reflected in the quarterly consolidated financial statements.」

「During the fiscal year ended June 2016, it was discovered that some components of the seismic restraint devices used in bridge repair work carried out by our consolidated subsidiary ショーボンド建設株式会社 and its subsidiaries had welding defects. Of the costs associated with the investigation and repairs, ¥44 million incurred during the first quarter of the current fiscal year was recognized as an extraordinary loss under costs for repairs to completed construction work. In addition, amounts recognized as a provision for warranties on completed construction work for investigation and repair costs reasonably expected to arise in the future totaled ¥84 million under current liabilities and ¥380 million under non-current liabilities at the end of the first quarter of the current consolidated fiscal year. However, additional repair costs may arise during the investigation over the next several years, and the consolidated results may be affected depending on the recovery of costs from the manufacturer. As the timing and total amount cannot reasonably be estimated at this time, the impact has not been reflected in the consolidated financial statements.」

「During the fiscal year before the previous fiscal year, partial welding defects were found in components of bridge-collapse prevention devices used in bridge repair work performed by our subsidiary ショーボンド建設株式会社 and its subsidiaries. Of the costs associated with the investigation and repairs, ¥164 million incurred during the cumulative third-quarter period was recorded as an extraordinary loss under costs for repairs to completed construction. As of the end of the third-quarter consolidated accounting period, ¥150 million had been recorded as a provision for compensation for completed construction for investigation costs and other expenses reasonably expected to arise in the future.」

「During the fiscal year before the previous fiscal year, partial welding defects were found in components of bridge-collapse prevention devices used in bridge repair work performed by our subsidiary ショーボンド建設株式会社 and its subsidiaries. Of the costs associated with the investigation and repairs, ¥94 million incurred during the cumulative second-quarter period was recorded as an extraordinary loss under costs for repairs to completed construction. As of the end of the second-quarter consolidated accounting period, ¥164 million had been recorded as a provision for compensation for completed construction for investigation costs and other expenses reasonably expected to arise in the future. Where defects attributable to manufacturing are identified, the Company intends to seek reimbursement from the manufacturer for the investigation and repair costs and plans to record the amounts as extraordinary income as they are recovered. However, additional repair costs may arise during investigations over the next several years, and the consolidated results may be affected depending on the recovery status from the manufacturer. Since the timing and amount cannot reasonably be estimated at this time, the impact has not been reflected in the quarterly consolidated financial statements.」

「During the fiscal year before the previous fiscal year, partial welding defects were found in components of bridge-collapse prevention devices used in bridge repair work performed by our subsidiary ショーボンド建設株式会社 and its subsidiaries. Of the costs associated with the investigation and repairs, ¥30 million incurred during the cumulative first-quarter period was recorded as an extraordinary loss under costs for repairs to completed construction. As of the end of the first-quarter consolidated accounting period, ¥169 million had been recorded as a provision for compensation for completed construction for investigation costs and other expenses reasonably expected to arise in the future. Where defects attributable to manufacturing are identified, the Company intends to seek reimbursement from the manufacturer for the investigation and repair costs and plans to record the amounts as extraordinary income as they are recovered. However, additional repair costs may arise during investigations over the next several years, and the consolidated results may be affected depending on the recovery status from the manufacturer. Since the timing and amount cannot reasonably be estimated at this time, the impact has not been reflected in the consolidated financial statements.」

「During the previous fiscal year, partial welding defects were found in components of bridge-collapse prevention devices used in bridge repair work performed by our subsidiary ショーボンド建設株式会社 and its subsidiaries. Of the costs associated with the investigation and repairs, ¥442 million incurred during the fiscal year was recorded as an extraordinary loss under costs for repairs to completed construction. This amount includes ¥203 million recorded as a provision for compensation for completed construction for investigation costs and other expenses reasonably expected to arise in the future. Where defects attributable to manufacturing are identified, the Company intends to seek reimbursement from the manufacturer for the investigation and repair costs and plans to record the amounts as extraordinary income as they are recovered. However, additional repair costs may arise during investigations over the next several years, and the consolidated results may be affected depending on the recovery status from the manufacturer. Since the timing and amount cannot reasonably be estimated at this time, the impact has not been reflected in the consolidated financial statements.」

「During the previous fiscal year, partial welding defects were found in components of bridge-collapse prevention devices used in bridge repair work performed by our subsidiary ショーボンド建設株式会社 and its subsidiaries. Of the costs associated with the investigation and repairs, ¥180 million incurred during the cumulative third-quarter period was recorded as an extraordinary loss under costs for repairs to completed construction. Where defects attributable to manufacturing are identified, the Company intends to seek reimbursement from the manufacturer for the investigation and repair costs, and plans to record the amounts as extraordinary income as they are recovered from the manufacturer. However, additional losses may arise during the investigation process, and the consolidated results may be affected depending on the recovery status from the manufacturer. The timing and amount of any such impact cannot reasonably be estimated at this time.」

「During the previous fiscal year, partial welding defects were found in components of bridge-collapse prevention devices used in bridge repair work performed by our subsidiary ショーボンド建設株式会社 and its subsidiaries. Of the costs associated with the investigation and repairs, ¥107 million incurred during the cumulative second-quarter period was recorded as an extraordinary loss under costs for repairs to completed construction. However, additional losses may arise during the investigation process, and the consolidated results may be affected depending on the recovery status from the manufacturer. The timing and amount of any such impact cannot reasonably be estimated at this time.」

「During the previous fiscal year, partial welding defects were found in components of bridge-collapse prevention devices used in bridge repair work performed by our subsidiary ショーボンド建設株式会社 and its subsidiaries. Of the costs associated with the investigation and repairs, ¥42 million incurred during the cumulative first-quarter period was recorded as an extraordinary loss under costs for repairs to completed construction. Where defects attributable to manufacturing are identified, the Company intends to seek reimbursement from the manufacturer for the investigation and repair costs, and plans to record the amounts as extraordinary income as they are recovered from the manufacturer. However, additional losses may arise during the investigation process, and the consolidated results may be affected depending on the recovery status from the manufacturer. The timing and amount of any such impact cannot reasonably be estimated at this time.」