Consolidated Financial Statements
Asanuma Corporation
Year ended March 31, 2024

Asanuma Corporation
Consolidated Financial Statements
Year ended March 31, 2024

Contents

Consolidated Financial Statements
Consolidated Balance Sheet ................................................................................................ 1
Consolidated Statement of Income...................................................................................... 3
Consolidated Statement of Comprehensive Income............................................................ 4
Consolidated Statement of Changes in Net Assets .............................................................. 5
Consolidated Statement of Cash Flows .............................................................................. 7
Notes to Consolidated Financial Statements ....................................................................... 9

Asanuma Corporation
Consolidated Balance Sheet
March 31, 2024

Millions of yen
2024
2023
AssetsCurrent assets:
Cash and cash deposits (Note 7)
Receivables:
Notes receivable (Notes 6 and 19)
Accounts receivable on completed construction
contracts (Notes 6,19 and 21)
Other accounts receivable
Allowance for doubtful accounts

Thousands of
U.S. dollars(Note 2)2024

¥ 13,031¥ 11,895$ 86,064

4,307

3,323

28,44660,4703,120(106)67,791

57,8401,791(14)62,940399,379
20,606(700)
447,731

1,477
31
39
1,547

1,335
31
30
1,396

9,755
205
257
10,217

Other current assets
Total current assets

860
83,229488
76,7195,681
549,693

Property and equipment, at cost:
Land
Buildings and structures (Notes 8and 10)
Machinery, equipment and vehicles
Tools, furniture and fixtures
Lease assets
Less accumulated depreciation
Property and equipment, net

1,462
6,474
550
1,567
237
(5,415)
4,875

1,608
6,860
637
1,663
194
(5,679)
5,283

9,656
42,758
3,632
10,3491,566(35,764)
32,197

Intangible assets:
Goodwill
Other intangible assets (Note 8)
Total intangible asset

974
2,001
2,975

1,068
2,064
3,132

6,433
13,216
19,649

6,443

4,604

42,553

70
1,839
638
1,698
(516)
10,172¥ 101,251

129
1,221
970
1,492
(516)
7,900
¥ 93,034

462
12,146
4,214
11,215(3,408)67,182$ 668,721

Inventories:
Cost of uncompleted construction contracts
Real estate held for sale
Raw materials and supplies

Investments and other assets:
Investments in securities (Notes 9，10 and 19)
Investments in an unconsolidated subsidiary
and affiliates (Notes 9 and 19)
Retirement benefit asset (Note 12)
Deferred income taxes (Note 11)
Other assets
Allowance for doubtful accounts
Total investments and other assets
Total assets

1Asanuma Corporation
Consolidated Balance Sheet (continued)
March 31, 2024

Millions of yen
2024
2023
Liabilities
Current liabilities:
Short-term bank loans (Notes 10 and 19)
Current portion of long-term debt (Notes 10 and 19)
Payables:Accounts payable on construction contracts
Other accounts payable (Note 19)
Advances received on uncompleted construction
contracts (Note 6)
Deposits received
Suspense receipt of consumption taxes
Income taxes payable (Note 11)
Provision for compensation for completed
construction
Provision for loss on construction contracts (Note 15)
Other current liabilities
Total current liabilities
Long-term liabilities:
Long-term debt (Notes 10 and 19)
Liability for retirement benefits (Note 12)
Deferred income taxes (Note 11)
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity (Note 14):
Common stock:
Authorized – 58,713,000 shares
Issued– 16,157,258 shares in 2023 and 2024
Capital surplus
Retained earnings
Less treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income:Net unrealized holding gain on investments insecurities
Foreign currency translation adjustments
Retirement benefits liability adjustments (Note 12)
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets¥

Thousands of
U.S. dollars(Note 2)
2024

6,460
5,666

¥ 1,460
348$ 42,666
37,422

17,606
246
17,852

15,333205
15,538116,280
1,625
117,905

4,197
1,463
4,343
2,390

4,638
1,936
4,589
1,584

27,7199,663
28,684
15,785

614
319
1,877
45,181

573
38
4,486
35,1904,055
2,107
12,396
298,402

2,858
4,168
211
127
7,364
52,545

8,524
4,293
213
146
13,17648,366

18,87627,528
1,394
838
48,636
347,038

9,615
2,203
32,499(65)
44,2529,615
2,186
30,919(74)
42,646

63,503
14,550214,642(429)
292,266

2,398
847
126
3,371
1,083
48,706¥ 101,251

1,104
486
(237)
1,353
669
44,668¥ 93,034

15,8385,594
832
22,264
7,153
321,683$ 668,721

See accompanying notes to consolidated financial statements.

2

Asanuma Corporation
Consolidated Statement of Income
Year ended March 31, 2024

Millions of yen
2024
2023
Net sales (Note 22):
Construction contracts
Other

Thousands of
U.S. dollars(Note 2)2024

¥ 149,415
3,261
152,676¥ 141,758
2,678
144,436$ 986,824
21,537
1,008,361

136,254
2,273
138,527

127,416
1,881
129,297

899,901
15,012914,913

13,161988
14,14914,342797
15,13986,923
6,525
93,448Selling, general and administrative expenses (Note 16)
Operating income (Note 22)

10,091
4,058

9,447
5,692

66,64726,801Other income (expenses):
Interest and dividends income
Foreign exchange gain loss, net
Interest expenses
Guarantee fees
Commission fees
Gain on sales of property and equipment

185
208
(132)
(39)
(107)
2,819

114
163
(105)
(43)
(107)
761

1,222
1,374
(872)
(258)
(707)
18,618

Impairment losses (Notes 8 and 22)
Other, net (Note 9)
Profit before income taxes

(84)
104
7,012

(145)
175
6,505

(555)
688
46,311

2,404
(400)
2,004
5,008

2,112
(13)
2,099
4,406

15,877(2,642)
13,23533,076

337
4,671

206
4,200

2,226
$ 30,850

Cost of sales (Note 15):
Construction contracts
Other
Gross profit:
Construction contracts
Other

Income taxes (Note 11):
Current
DeferredProfitProfit attributable to:Non-controlling interests
Owners of parent¥

See accompanying notes to consolidated financial statements.

¥3

Asanuma Corporation
Consolidated Statement of Comprehensive Income
Year ended March 31, 2024

ProfitOther comprehensive income (Note 17)
Net unrealized holding (gain) loss on investments insecurities
Foreign currency translation adjustments (gain) loss
Retirement benefits liability adjustments (loss) gain
Total other comprehensive (income) loss
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

Millions of yen
2024
2023
¥ 5,008¥ 4,406

Thousands of
U.S. dollars(Note 2)2024
$ 33,076

1,294
428
363
2,085
¥ 7,093

108
595
(50)
653
¥ 5,059

8,546
2,827
2,397
13,770$ 46,846¥ 6,689404¥ 4,768291$ 44,178
2,668

See accompanying notes to consolidated financial statements.

4

Asanuma Corporation
Consolidated Statement of Changes in Net Assets
Year ended March 31, 2024
Millions of yen

Balance at April 1, 2022
Profit attributable to owners ofparentCash dividends
Purchases of treasury stock
Restricted stock compensation
Net change in items other thanshareholders’ equity
Balance at April 1, 2023
Profit attributable to owners ofparentCash dividends
Purchases of treasury stock
Restricted stock compensation
Net change in items other thanshareholders’ equity
Balance at March 31, 2024

Commonstock¥ 9,615

Capitalsurplus¥ 2,179

Retainedearnings¥ 29,648

Treasurystock,
at cost¥ (27)

Total
shareholders’equity¥ 41,415

–
–
–
–

–
–
–
7

4,200
(2,929)
–
–

–
–
(103)
56

4,200
(2,929)
(103)
63

–
9,615

–
2,186

–
30,919–(74)–
42,646

–
–
–
–

–
–
–
17

4,671
(3,091)
–
–

–
–
(163)
172

4,671
(3,091)
(163)
189

–
¥ 9,615–¥ 2,203–¥ 32,499–¥ (65)–¥ 44,252

Millions of yen

Balance at April 1, 2022
Profit attributable to owners ofparentCash dividends
Purchases of treasury stock
Restricted stock compensation
Net change in items other thanshareholders’ equity
Balance at April 1, 2023
Profit attributable to owners ofparentCash dividends
Purchases of treasury stock
Restricted stock compensation
Net change in items other thanshareholders’ equity
Balance at March 31, 2024Net
unrealized
holding
gain oninvestments
in securities¥ 996

Foreigncurrencytranslation
adjustments¥ (24)

Retirement
benefits
liability
adjustments¥ (187)

Total
accumulated
othercomprehensive
income¥ 785

Noncontrollinginterests¥ 674

Total net
assets¥ 42,874

–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

4,200
(2,929)
(103)
63

108
1,104

510
486

(50)
(237)

568
1,353

(5)
669

563
44,668

–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

4,671
(3,091)
(163)
189

1,294
¥ 2,398

361
¥ 847

363
¥ 126

2,018
¥ 3,371414¥ 1,083

2,432¥ 48,7065

Asanuma Corporation
Consolidated Statement of Changes in Net Assets (continued)
Year ended March 31, 2024

Balance at April 1, 2023
Profit attributable to owners ofparentCash dividends
Purchases of treasury stock
Restricted stock compensation
Net change in items other thanshareholders’ equity
Balance at March 31, 2024

Commonstock$ 63,503

Thousands of U.S. dollars (Note 2)
Treasury
CapitalRetainedstock,
surplusearnings
at cost$ 14,438$ 204,207$ (488)

Total
shareholders’equity$ 281,660

–
–
–
–

–
–
–
112

30,850(20,415)––––(1,077)1,136

30,850(20,415)(1,077)
1,248–$ 63,503–$ 14,550–$ 214,642–$ (429)–$ 292,266

Thousands of U.S. dollars (Note 2)

Balance at April 1, 2023
Profit attributable to owners ofparentCash dividends
Purchases of treasury stock
Restricted stock compensation
Net change in items other thanshareholders’ equity
Balance at March 31, 2024Net
unrealized
holding
gain oninvestments
in securities$ 7,292

Foreigncurrencytranslation
adjustments$ 3,210Retirement
benefits
liability
adjustments$ (1,564)

Total
accumulated
othercomprehensive
income$ 8,938

Noncontrollinginterests$ 4,418

Total net
assets$ 295,016

–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

–
–
–
–

30,850(20,415)(1,077)
1,248

8,546
$ 15,838

2,384$ 5,594

2,396
$ 832

13,326$ 22,264

2,735$ 7,153

16,061$ 321,683

See accompanying notes to consolidated financial statements.

6

Asanuma Corporation
Consolidated Statement of Cash Flows
Year ended March 31, 2024

Millions of yen
2024
2023
Cash flows from operating activities:
Profit before income taxes
Adjustments for:
Depreciation and amortization
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on
construction contracts
Decrease in net defined benefit asset and liability
Interest and dividends income
Interest expenses
Foreign exchange gain, net
Loss on valuation of investments in securities
Loss on sales of property and equipment
Loss on valuation of membership
Increase in notes receivable and accounts receivable oncompleted construction contracts(Increase) decrease in inventories(Increase) decrease in other accounts receivable
Increase (decrease) in accounts payable on construction
contracts
Increase (decrease) in other accounts payable(Decrease) increase in advances received on
uncompleted construction contracts
Other, net loss (gain)
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash (used in) provided by operating activities
Cash flows from investing activities:
Decrease in time deposits
Purchases of property and equipment
Proceeds from sales of property and equipment
Purchases of intangible assets
Purchases of investments in securities
Proceeds from sales and redemption of investments insecurities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other, net
Net cash provided by investing activities

Thousands of
U.S. dollars(Note 2)2024

¥ 7,012¥ 6,505$ 46,311

794
84
92

821
145
(53)

5,244
555
608

281
(221)
(185)
132
(152)
15
（2,814）
7

(60)
(165)
(114)
105
(115)
16
(761)
–

1,856
(1,460)(1,222)872(1,004)
99(18,585)
46(3,374)(152)(1,328)(5,967)884
872(22,284)(1,004)(8,771)2,146
49(2,017)(22)

14,173324(504)(3,521)(1,639)232(132)(1,630)(3,169)

171
3,056
3,301
114
(104)
(1,957)1,354(3,329)(23,254)(10,825)
1,532
(872)
(10,765)(20,930)

99
(135)
2,999
(294)
(9)

197
(76)
894
(76)
(9)

654
(892)
19,807(1,942)
(59)

15
(61)
33
2
¥ 2,649

19
(41)
35
(9)
934

99
(403)
218
14
$ 17,496¥

7

Asanuma Corporation
Consolidated Statement of Cash Flows (Continued)
Year ended March 31, 2024

Millions of yen
2024
2023
Cash flows from financing activities:
Increase (decrease) in short-term bank loans, net
Proceeds from long-term debt
Repayment of long-term debt
Cash dividends paid
Proceeds from share issuance to non-controllingshareholders
Cash dividends paid to non-controlling interests
Net increase in treasury shares
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash
equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 7)¥ 4,995–(348)(3,074)

(700)
700
(347)
(2,916)$ 32,989–(2,298)(20,302)

11
(11)
(163)
1,410

–
(296)
(103)
(3,662)73(73)（1,077）
9,312

344
1,234
11,797¥ 13,031

272(1,102)
12,898¥ 11,796

2,272
8,150
77,914$ 86,064

See accompanying notes to consolidated financial statements.

¥

Thousands of
U.S. dollars(Note 2)2024

8

Asanuma Corporation
Notes to Consolidated Financial Statements
March 31, 2024
1.

Basis of Preparation of Consolidated Financial Statements

The accompanying consolidated financial statements of Asanuma Corporation (the“Company”) and its consolidated subsidiaries (the “Group”) are prepared on the basis ofaccounting principles generally accepted in Japan, which are different in certain respects as
to the application and disclosure requirements of International Financial ReportingStandards, and have been compiled from the consolidated financial statements prepared by
the Company as required by the Financial Instruments and Exchange Act of Japan.
In preparing the accompanying consolidated financial statements, certain reclassifications
and rearrangements have been made to the consolidated financial statements issued
domestically in order to present them in a format which is more familiar to readers outside
Japan.
Certain reclassifications of previously reported amounts have been made to conform theaccompanying consolidated financial statements for the year ended March 31, 2023 to the2024 presentation. Such reclassifications had no effect on consolidated net assets.
2.

U.S. Dollar Amounts

The accompanying consolidated financial statements are stated in yen, the currency of thecountry in which the company is incorporated and operate. The translation of yen amounts
into U.S. dollar amounts is included solely for the convenience of readers outside Japan andhas been made at ¥151.41 = U.S.$1.00, the exchange rate prevailing on March 31, 2024.
This translation should not be construed as a representation that yen can be converted into
U.S. dollars at the above or any other rate.
3.

Principles of Consolidation

At March 31, 2024 and 2023, the Company had 9 subsidiaries and 9 subsidiaries,
respectively. The consolidated financial statements for the years ended March 31, 2024 and2023 include the accounts of the Company and its 6 subsidiaries and 6 subsidiaries,
respectively.
The Company applied the equity method to its investments in 1 affiliates and 1 affiliates, atMarch 31, 2024 and 2023 for the purpose of consolidated financial statements for the years
then ended.
The accounts of the remaining subsidiary were not consolidated nor the equity method
applied because its total assets, net sales, profit or loss and retained earnings were notmaterial to the consolidated financial statements.

9Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

3.

Principles of Consolidation (continued)

The balance sheet date of SINGAPORE PAINTS & CONTRACTOR PTE. LTD. and
EVERGREEN ENGINEERING & CONSTRUCTION PTE. LTD. is December 31.
Necessary adjustments were made to the subsidiary’s balance sheet to reflect any significant
intercompany transactions during the period from January 1 through March 31.
4.

Summary of Significant Accounting Policies(a) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, deposits with banks withdrawable
on demand, and short-term investments which are readily convertible to cash subject toan insignificant risk of any changes in their value and which were purchased with an
original maturity of three months or less.
(b) Investments in securities
Investments in securities are classified into two categories: held-to-maturity debt
securities or other securities. Held-to-maturity debt securities are stated at amortizedcost. Quoted securities classified as other securities, the Company uses the marketvalue method based on the market price, etc. at the consolidated closing date. Valuationdifferences are included directly in net assets and costs of securities sold are determinedby the moving-average method. Unquoted securities classified as other securities arecarried at cost determined by the moving average method.
(c) Allowance for doubtful accounts
The Group provide an allowance for doubtful accounts at an amount calculated basedon their historical experience of bad debts on ordinary receivables plus an additional
estimate of probable specific bad debts from customers experiencing financial
difficulties.
(d) Inventories
Cost of uncompleted construction contracts are stated at cost determined on an
individual project basis. Real estate held for sale is stated at the lower of cost or net
selling value, cost being determined on an individual project basis. Raw materials andsupplies are stated at the lower of cost or net selling value, cost being determined by
the period average method.

10

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(e) Property and equipment (Other than leased assets)
Property and equipment is stated on the basis of cost. Depreciation is calculated by the
declining-balance method over the estimated useful lives of the respective assets;
however, the straight-line method is applied to buildings (except for facilities attachedto the buildings) acquired on or after April 1, 1998 and facilities attached to buildings
and other non-building structures acquired on or after April 1, 2016.
(f) Intangible assets (Other than leased assets)
Amortization of intangible assets is calculated by the straight-line method over theestimated useful lives of the respective assets.
Expenditures related to computer software developed for internal use are charged toincome when incurred, except if they are deemed to contribute to the generation ofincome or to future cost savings. Such expenditures are capitalized as intangible assets
and amortized over an estimated useful life of 5 years.
(g) Leases
Leased assets held under finance leases that transfer ownership are depreciated by thesame methods used for owned fixed assets. For finance leases that do not transfer
ownership, depreciation expense is calculated based on the straight-line method overthe leased period of the lease with a residual value of zero.
(h) Bonds issuance expenses
Issuance expenses of bonds are charged to income as incurred.
(i) Provision for compensation for completed construction
A provision for compensation for completed construction is provided for anticipatedfuture costs arising from compensations on completed construction based on thehistorical data on the compensation cost.
(j) Provision for loss on construction contracts
A provision for loss on construction contracts is provided for uncompleted construction
projects when a future loss is expected and a reasonable estimate of the amount can bemade at the end of the current fiscal year.

11Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(k) Retirement benefits
The retirement benefit obligation for employees is attributed to each period by thebenefit formula method.
Actuarial gain or loss is amortized commencing in the year following the year in which
the gain or loss is recognized by the straight-line method over a period of principally
10 years, which is within the average remaining years of service of the eligible
employees.
Prior service cost is charged to income when incurred.
(l) Income taxes
Deferred tax assets and liabilities have been recognized in the consolidated financial
statements with respect to the differences between the financial reporting and tax basesof the assets and liabilities, and were measured using the enacted tax rates and laws
which will be in effect when the differences are expected to reverse.
(m) Goodwill
Goodwill is being amortized on a straight-line basis over the estimated period of benefit.
The goodwill resulting from the acquisition of SINGAPORE PAINTS & CONTRACTOR
PTE. LTD. and EVERGREEN ENGINEERING & CONSTRUCTION PTE. LTD. isbeing amortized over periods of 7 years and 8 years, respectively.
(n) Significant revenue and expenses
Regarding the construction business in which the Group is mainly engaged, the Group
has a performance obligation to complete construction and transfer objects based on aconstruction contract with a customer. In such a contract, when control of goods orservices is transferred to customers over time, revenue is recognized as the Groupsatisfies the performance obligation over time. Progress toward satisfaction of aperformance obligation is measured based on the percentage of construction cost
incurred up to the end of the reporting period to the estimated total construction cost
since the amount of construction cost incurred is considered to represent the degree ofprogress toward satisfaction of a performance obligation. If progress towardsatisfaction of a performance obligation cannot be reasonably estimated, but the Group
expects to recover all costs incurred, revenue is recognized on a cost recovery basis.

12

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(n) Significant revenue and expenses (continued)
For construction contracts with a very short period of time between the commencement
date of the transaction and the point in time when the Group expects the performanceobligation to be fully satisfied, an alternative approach applies, whereby revenue isrecognized at the point in time when a performance obligation is fully satisfied rather
than over time.
(o) Applicable accounting principles and procedures in cases where directly relevant
accounting standards are not available
Accounting for constructions involving joint venture, the Company recognize theirshare of the jointly controlled assets, the jointly responsible liabilities, the income andexpenses resulting from the joint venture.
(p) Accounting standards issued but not yet effective
The Accounting Standards Board of Japan (“ASBJ”) issued the following revised
accounting standards and revised implementation guidance:・ “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27,
October 28, 2022)
・ “Accounting Standard for Presentation of Comprehensive Income” (ASBJ
Statement No. 25, October 28, 2022)
・ “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance
No. 28, October 28, 2022),(1) Overview
The revised standards and revised implementation guidance provide for theclassification of income taxes when taxes are imposed on other comprehensive
income and for the treatment of tax effects related to the sale of shares ofsubsidiaries when the corporate group tax system is applied.
(2) Scheduled date of adoption
The Company expects to adopt the accounting standards and related
implementation guidance from the beginning of the fiscal year ending March 31,
2025.

13

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

4.

Summary of Significant Accounting Policies (continued)(p) Accounting standards issued but not yet effective (continued)(3) Impact of adoption of revised accounting standard and related implementation
guidance
The Company is currently evaluating the effect of the adoption of the accounting
standards and related implementation guidance on its consolidated financial
statements.
5.

Significant Accounting Estimates

Estimate of total construction costs when revenue is recognized as the Group satisfies its
performance obligation over time(1) Amounts recorded in the consolidated financial statements
Net sales of construction contracts accounted for as the Group satisfies its performanceobligation over time amounted to ¥147,269 million ($972,650 thousand) and ¥139,186
million for the years ended March 31, 2024 and 2023, respectively.
(2) Information on the components of identified significant accounting estimatei)

Calculation method
For construction contracts in which control of goods or service is transferred tocustomers over time, revenue is recognized as the Group satisfies the performanceobligation over time. Progress toward satisfaction of the performance obligation ismeasured based on the percentage of construction cost incurred up to the end of
the reporting period to the estimated total construction cost.

ii) Significant assumptions
Significant assumptions used for estimation of total construction cost are such asunit price of building material and labor unit price, which are calculated based oneach project condition such as scale, specification and construction period.
iii) Effect on consolidated financial statements for the following fiscal year
Significant assumptions expect to have effect on net sales of construction contracts
for each reporting period due to uncertainty in estimates. The amount of net salesof construction contracts in the consolidated financial statements for the following
fiscal year may fluctuate when there are fluctuations in significant assumptions
such as unit price of building material or labor unit price, which were used for
estimating total construction cost and which are calculated based on each project
condition such as scale, specifications and construction period.
14

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

6.

Contract assets and liabilities

Receivables from contracts with customers, contract assets, and contract liabilities as ofMarch 31, 2024 and 2023, consisted of the following:(1) Receivables from contracts with customers and contract assets

Notes receivable
Electronically recorded monetaryclaims
Accounts receivable oncompleted construction contracts
Contract assets
Total

Millions of yen
At March 31,
2024
2023
¥ 1,324¥
549

Thousands of
U.S. dollars
2024$ 8,748

2,983

2,774

19,69830,04430,426¥ 64,777

33,91523,925¥ 61,163

198,428
200,951$ 427,825(2) Contract liabilities
Millions of yen
At March 31,
2024
2023
Advances received on
uncompleted construction
contracts
Total
7.

¥ 4,197¥ 4,197¥ 4,638¥ 4,638

Thousands of
U.S. dollars
2024$ 27,719$ 27,719

Cash and Cash Equivalents

A reconciliation of cash and deposits in the accompanying consolidated balance sheets at
March 31, 2024 and 2023 and cash and cash equivalents in the accompanying consolidated
statements of cash flows for the years then ended are as follows:

Cash and cash deposits
Time deposits with a deposit termof more than 3 months
Cash and cash equivalents

Millions of yen
At March 31,
2024
2023
¥ 13,031¥ 11,895–¥ 13,031(99)¥ 11,796

Thousands of
U.S. dollars
2024$ 86,064–$ 86,064
15

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

8.

Impairment losses

Impairment losses for the years ended March 31, 2024 and 2023 are as follows:

Location
Saitama Prefecture
Osaka Prefecture

Location
Saitama Prefecture
Osaka Prefecture

Main use
Idle assets
Telephonesubscription
rightMain use
Idle assets
Internal use
softwareClass
Buildings, etc.
Intangible
assetsClass
Buildings, etc.
Software in
progress

Thousands ofMillions of yen
U.S. dollars
2024
¥ 32
$ 212
52
343

Millions of yen
2023
¥ 26
119

The Group principally group the assets in association with the business operations at eachregional office whereas leased properties and idle assets are grouped individually and fixed
assets of the Group and investments for which the equity method is applied are grouped per
subsidiary or investment.
For the fiscal year ended March 31, 2024, due to the sale of an equipment center, assets on
the premises of the facility were classified as idle and the carrying value of these assets was
written down to memorandum value and impairment losses in the amount of ¥32million($212 thousand) were recognized.
The telephone subscription right, which is classified as an intangible asset, impairment
losses in the amount of ¥52 million ($343 thousand) were recognized because it wasdetermined that there was no prospect of future use, considering the prevalence and usageof IP phones.
For the fiscal year ended March 31, 2023, due to the closure of the equipment center, assets
on the facility was treated as an idle asset and wrote down the carrying value of these assets
to the memorandum value and recognized losses on impairment of building of ¥26 million.
The software, which is recorded as development costs for internal use software, ¥119
million was recorded as loss on impairment because some of the functions that wereoriginally envisioned are no longer expected to be used.

16

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Investments in Securities

At March 31, 2024 and 2023, marketable securities classified as held-to-maturity debt
securities are as follows:
Millions of yen
Carryingvalue
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

¥–
¥–

2024
Estimated Unrealized
fair value
gain

¥–
¥–

¥–
¥–

Carrying
value

2023
Estimated
fair value

Unrealized
gain

¥ 15
¥ 15

¥ 15
¥ 15

¥0
¥0

Thousands of U.S. dollars
2024
Carrying Estimated Unrealizedvalue
fair value
Gain
Held-to-maturity debt
securities whose
estimated fair value
exceeds their carrying
value:
Government andmunicipal bonds

$–
$–

$–
$–

$–
$–

17

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Investments in Securities (continued)

At March 31, 2024 and 2023, marketable securities classified as other securities are as
follows:
Millions of yen

Other securities whosecarrying value exceeds
their acquisition costs:
Equity securities
Other securities whosecarrying value does notexceed theiracquisition costs:
Equity securities

Carrying
value

2024
Acquisition
costs

Unrealized
gain (loss)

Carrying
value

2023
Acquisition
costs

Unrealized
gain (loss)¥ 5,713¥ 2,296¥ 3,417¥ 3,860¥ 2,293¥ 1,56749¥ 5,76261¥ 2,357(12)¥ 3,40548¥ 3,90855¥ 2,348(7)¥ 1,560

Thousands of U.S. dollars
2024
Carrying Acquisition Unrealized
value
costs
gain
Other securities whosecarrying value exceeds
their acquisition costs:
Equity securities
Other securities whosecarrying value does notexceed theiracquisition costs:
Equity securities$ 37,732$ 15,164$ 22,568

323$ 38,055

403$ 15,567(79)$ 22,489

The proceeds from sales of, and gross realized gain on investments in securities for the years
ended March 31, 2024 and 2023 are summarized as follows:

Proceeds from sales
Gross realized gain

Millions of yen
2024
2023
¥–
¥0
–
–

Thousands of
U.S. dollars
2024
$–
–

Refer to Note 19 “Financial Instruments” for the redemption schedule at March 31, 2024
for held-to-maturity debt securities.
18

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

9.

Investments in Securities (continued)

The Company has recognized loss on impairment of equity securities classified as othersecurities of ¥15 million ($99 thousand) and ¥16 million for the years ended March 31, 2024
and 2023, respectively.
Stocks with market prices are recognized as impairment losses when the market price falls
by 30% or more from the acquisition cost.
For stocks without a market price, if the real value drops significantly due to a deteriorationin financial conditions, impairment losses are recorded for the amount deemed necessary inconsideration of the possibility of recovery.
10. Short-Term Bank Loans and Long-Term Debt
Short-term bank loans had average interest rates of 1.31% and 0.93% at March 31, 2024
and 2023, respectively.
Long-term debt at March 31, 2024 and 2023 are summarized as follows:
Millions of yen
2024
2023
Unsecured loans due through 2033 at
rates ranging from 0.80% to 1.58%
Secured loans due through 2033 at rates
ranging from 0.58% to 0.71%
1.37% unsecured bond due March 31,2025
0.84% unsecured bond due July 25, 2025
0.81% unsecured bond due September
10, 2024
Total
Less current portion included in current
liabilities

Thousands of
U.S. dollars
2024¥ 5,023¥ 5,026$ 33,175

1,861

2,206

12,291

650
600

650
600

4,293
3,963

390
8,524

390
8,872

2,576
56,298(5,666)¥ 2,858(348)¥ 8,524(37,422)$ 18,876

19

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Short-Term Bank Loans and Long-Term Debt (continued)
The aggregate annual maturities of long-term debt subsequent to March 31, 2024 aresummarized as follows:
Years ending March 31,
2025
2026
2027
2028
2029 and thereafter

Millions of yen¥ 4,626
1,036
348
353
521
¥ 6,884

Thousands of
U.S. dollars$ 30,553
6,842
2,298
2,332
3,441
$ 45,466

Assets pledged at March 31, 2024 and 2023 as collateral for lines of credit of the Company
are summarized as follows:

Buildings and structures
Land

Millions of yen
2024
2023
¥ 484
¥ 538
744
889
¥ 1,228¥ 1,427

Thousands of
U.S. dollars
2024$ 3,196
4,914$ 8,110

All assets of the consolidated subsidiaries engaged in the Private Finance Initiative businesswere pledged as collateral for their loans under the project finance agreements. Assets
pledged at March 31, 2024 and 2023 amounted to ¥2,499 million ($16,505 thousand) and¥2,877 million as collateral for loans of ¥1,861 million ($12,2911 thousand) and ¥2,206
million, respectively.
Assets of the Company pledged at March 31, 2024 and 2023 as collateral for loans ofaffiliates engaged in the PFI business are summarized as follows:

Affiliated company shares
Long-term loans receivable

Millions of yen
2024
2023
¥ 12
¥ 12
90
102
¥ 102
¥ 114

Thousands of
U.S. dollars
2024
$ 79
595
$ 674

Shares of affiliates shares and Long-term loans receivable have been eliminated in full.

20

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

10. Short-Term Bank Loans and Long-Term Debt (continued)
In order to achieve more efficient financing, the Company has concluded line-of-credit
agreements with certain financial institutions. The status of these lines of credit at March
31, 2024 and 2023 are as follows:

Lines of credit
Credit utilized
Available credit

Millions of yen
2024
2023
¥ 10,000¥ 10,000––¥ 10,000¥ 10,000Thousands of
U.S. dollars
2024$ 66,046–$ 66,046

11. Income Taxes
Income taxes applicable to the Group comprise corporation, inhabitants’ and enterprisetaxes which, in the aggregate, resulted in a statutory tax rate of approximately 30.4% for theyears ended March 31, 2024 and 2023.
A reconciliation of the statutory tax rate and the effective tax rates for the years ended March
31, 2024 and 2023 as a percentage of profit before income taxes are summarized as follows:

Statutory tax rate
Permanently non-tax-deductible expenses
Permanently non-taxable income
Per capita portion of inhabitants’ taxes
Tax credit for corporation tax
Valuation allowance
Other
Effective tax rates

2024
30.4%
1.2
(0.1)
1.4
(1.8)
0.2
(2.7)
28.6%

2023
30.4%
1.3
(0.1)
1.7
–
(0.1)
(0.9)
32.3%

21

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

11. Income Taxes (continued)
The significant components of deferred tax assets and liabilities of the Group at March 31,
2024 and 2023 are summarized as follows:
Millions of yen
2024
2023
Deferred tax assets:
Allowance for doubtful accounts
Provision for compensation forcompleted construction
Loss on devaluation of inventories
Provision for loss on construction
contracts
Liability for retirement benefits
Impairment losses
Loss on valuation of investments insecurities
Other
Gross deferred tax assets
Less valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Intangible assets
Unrealized holding gain on
investments in securities
Deferred capital gains on property
Other
Total deferred tax liabilities
Net deferred tax assets¥

Thousands of
U.S. dollars
2024

188

¥ 160

$ 1,242

187
16

174
16

1,235
106

97
708
469

12
935
483

641
4,676
3,098

44

39

291

1,005
2,714
(930)
1,784

659
2,478
(916)
1,562

6,636
17,925(6,142)
11,783

(194)

(208)

(1,281)(1,007)(120)(36)(1,357)
¥ 427

(457)
(122)
(18)
(805)
¥ 757

(6,651)(793)(237)(8,962)$ 2,821

22

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

12. Retirement Benefits
1.

Outline of retirement benefits for employees
The Company has funded or unfunded defined benefit pension plans and defined
contribution plans in order to allocate for employees’ retirement benefits. In addition tothese retirement benefit plans, the Company may pay additional retirement benefits
when employees retire. All employees of Asanuma Tatemono K.K., a consolidated
subsidiary of the Company, have been composed of secondees from the Company,
consequently, the retirement benefit plan of Asanuma Tatemono K.K. is incorporated
in those of the Company. The other consolidated subsidiaries do not have any retirement
pension plans.
Under the defined benefit plans, the Company pays lump-sum or pension payments, theamounts of which are determined by reference to employees’ ranks and length ofservice.

2.

Defined benefit plans(1) The changes in retirement benefit obligation for the years ended March 31, 2024
and 2023 are as follows:

Balance at the beginning of the year
Service cost
Interest cost
Actuarial loss
Benefit paid
Balance at the end of the year

Millions of yen
2024
2023
¥ 9,676¥ 10,258
335
348
97
101
(6)
(103)
(747)
(928)
¥ 9,355¥ 9,676

Thousands of
U.S. dollars
2024$ 63,906
2,213
641
(40)
(4,934)$ 61,786(2) The changes in plan assets for the years ended March 31, 2024 and 2023 are as
follows:

Balance at the beginning of the year
Expected return on plan assets
Actuarial gain (loss)
Contributions by the employer
Benefit paid
Balance at the end of the year

Millions of yen
2024
2023
¥ 6,604¥ 7,092
132
142
506
(241)
215
155
(431)
(544)
¥ 7,026¥ 6,604

Thousands of
U.S. dollars
2024$ 43,617
872
3,342
1,420
(2,847)$ 46,404

23

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

12. Retirement Benefits (continued)
2.

Defined benefit plans (continued)(3) The following table sets forth the funded status of the plans and the amounts
recognized in the consolidated balance sheets at March 31, 2024 and 2023 for theCompany’s and the consolidated subsidiary’s defined benefit plans:

Funded retirement benefit obligation
Plan assets at fair value
Unfunded retirement benefit
obligation
Net assets and liabilities recognizedon the consolidated balance sheet

Millions of yen
2024
2023
¥ 5,187¥ 5,383(7,026)(6,604)(1,839)(1,221)Thousands of
U.S. dollars
2024$ 34,258(46,404)(12,146)

4,168

4,293

27,528¥ 2,329¥ 3,072$ 15,382(4) The components of retirement benefit expense for the years ended March 31, 2024
and 2023 are as follows:

Service cost
Interest cost
Expected return on plan assets
Amortization of actuarial gain
Retirement benefit expense

Millions of yen
2024
2023
¥ 335
¥ 348
97
101
(132)
(142)
10
66
¥ 310
¥ 373

Thousands of
U.S. dollars
2024$ 2,213
641
(872)
65
$ 2,047(5) The components of retirement benefits liability and asset adjustments included inother comprehensive income (before tax effect) for the years ended March 31, 2024
and 2023 are as follows:

Actuarial gain (loss)

Millions of yen
2024
2023
¥ 522
¥ (72)

Thousands of
U.S. dollars
2024$ 3,448

24

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

12. Retirement Benefits (continued)
2.

Defined benefit plans (continued)(6) The components of retirement benefits liability and asset adjustments included inaccumulated other comprehensive income (before tax effect) at March 31, 2024
and 2023 are as follows:
Millions of yen
2024
2023
Unrecognized actuarial(loss) gain

¥ (181)Thousands of
U.S. dollars
2024

¥ 341

$ (1,195)(7) The fair value of plan assets, by major category, as a percentage of total plan assets
at March 31, 2024 and 2023 are as follows:

Debt securities
Equity securities
Multi-asset
Cash and cash deposits
Total

2024
54%
20
24
2
100%

2023
54%
20
24
2
100%

The expected long-term rate of return on plan assets is determined as a result ofconsideration of both the portfolio allocation at present and in the future, and the
expected long-term rate of return from multiple plan assets at present and in the
future.
(8) The assumptions used in accounting for the defined benefit plans are as follows:

Discount rate
Expected long-term rate of return onplan assets
Estimated rate of salary increase

2024
1.0%

2023
1.0%

2.0%
8.2%

2.0%
7.7%

(Note) Estimated rate of salary increase is an expected rate of the increase of theretirement benefit points.

25

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

12. Retirement Benefits (continued)
3.

Defined contribution pension plan
Information on contributions to the defined contribution pension plan for the years
ended March 31, 2024 and 2023 are as follows:
Millions of yen
2024
2023
Contributions to the defined
contribution pension plan

¥ 146

¥ 152

Thousands of
U.S. dollars
2024
$ 964

13. Asset Retirement Obligations
The Company estimates the cost of restoration obligations based on property leaseagreements of the headquarters in Osaka, Tokyo office and Kyusyu office. As the cost of
the restoration obligations is immaterial, the information on asset retirement obligations isomitted.
Regarding certain restoration obligations, the Company estimated non-recoverable amountsof deposits for those premises and charged the portion attributable to the years ended March
31, 2024 and 2023, instead of recording asset retirement obligations.
14. Shareholders’ Equity
The Companies Act (the “Act”) provides that an amount equal to 10% of the amount to be
disbursed as distributions of capital surplus (other than the capital reserve) and retained
earnings (other than the legal reserve) be transferred to the capital reserve and the legal
reserve, respectively, until the sum of the capital reserve and the legal reserve equals 25%of the capital stock account. Such distributions can be made at any time by resolution of
the shareholders, or by the Board of Directors if certain conditions are met.
Under the Act, upon the issuance and sale of new shares of common stock, the entire amountof the proceeds is required to be accounted for as common stock, although a company may,by resolution of the Board of Directors, account for an amount not exceeding one-half ofthe proceeds of the sale of new shares as additional paid-in capital included in capital surplus.

26

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

14. Shareholders’ Equity (continued)
Movements in shares of common stock in issue and treasury stock during the years ended
March 31, 2024 and 2023 are summarized as follows:

Shares ofcommon stockin issue
Treasury stock

April 1, 2023

Number of shares
2024
Increase
Decrease

16,157,258
31,182–
47,618–58,514

March 31, 2024

16,157,258
20,286The increase in treasury stock of common stock of 47,618 shares is due to the acquisitionof 46,800 shares of treasury stock by the resolution of the Board of Directors held on June23, 2023, and the acquisition of 818 fractional shares of less than one unit. The decrease intreasury stock of common stock of 58,514 shares is due to the disposal of treasury shares
under restricted stock remuneration plan.

Shares ofcommon stockin issue
Treasury stock

April 1, 2022

Number of shares
2023
Increase
Decrease

March 31, 2023

8,078,629
8,253

8,078,629
34,774

16,157,258
31,182–
11,845The increase in shares of common stock of 8,078,629 is due to the stock split that thecompany conducted at a ratio of two-for one effective August 1, 2022.
The increase in treasury stock of common stock of 34,774 shares is due to the acquisitionof 18,700 shares of treasury stock by the resolution of the Board of Directors held on May
17, 2022, the increase of 15,286 shares due to the stock split, and the acquisition of 788
fractional shares of less than one unit. The decrease in treasury stock of common stock of
11,845 shares is due to the disposal of treasury shares under restricted stock remuneration
plan.

27

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

14. Shareholders’ Equity (continued)
Restricted stock awards
1.

Outline, scale and movement(1) Outline
Restricted stock awards
Individuals covered by the plan
Type of shares
Number of shares
Granted date
Vesting period

Restricted stock awards
Individuals covered by the plan
Type of shares
Number of shares
Granted date
Vesting period

Restricted stock awards
Individuals covered by the plan
Type of shares
Number of shares
Granted date
Vesting period2023 plan
5 directors
Common stock
7,061 shares
July 21, 2023
From July 21, 2023 (allocation date) to thedate when an individual ceases to be adirector of the Company
2022 plan
6 directors
Common stock
10,366 shares
July 19, 2022
From July 19, 2022 (allocation date) to thedate when an individual ceases to be adirector of the Company
2021 plan
6 directors
Common stock
14,260 shares
July 20, 2021
From July 20, 2021 (allocation date) to thedate when an individual ceases to be adirector of the Company

Number of shares of 2021 plan has been restated, as appropriate, to reflect two-forone stock split effective August 1, 2022

28

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

14. Shareholders’ Equity (continued)
Restricted stock awards (continued)
1.

Outline, scale and movement (continued)(1) Outline (continued)
Conditions for release of transfer restriction are as follows:
The Company shall release transfer restriction for all of the allocated shares upon
the end of the vesting period provided that a covered person continues to be directorof the Company during the “Service Period” (from the allocation date to the end of
the ordinary general meeting of shareholders for the fiscal year ended March 31,2024). However, in the event that a covered person ceases to be a director during
the Service Period due to death or other reasons that the Board of Directors deemas justifiable, the Company shall release transfer restrictions for the specified
number of allocated shares at the end of the vesting period. The specified numberof allocated shares is calculated by multiplying the number of months from theallocation date to the month when a covered person ceases to be a director divided
by 12 (if the number exceeds 1, it shall be deemed to be 1) by the number of
allocated shares (it shall be rounded down).

29Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

14. Shareholders’ Equity (continued)
Restricted stock awards (continued)
1.

Outline, scale and movement (continued)(2) Scale and movement
Scale and movement of restricted stocks that have not yet been released for the
fiscal year ended March 31, 2024 and 2023 are as follows.
i)

Amount of expenses and account name
Thousands of yen
2024
2023
Stock compensation
expense in general andadministrative expenses

U.S. dollars
2024¥ 23,737¥ 28,295$ 156,773

2023 plan

2022 plan

2021 plan

–
7,061
–
–

10,366––
1,622

14,260
–
–
2,232

7,061

8,744

12,028ii) Number of shares

Unvested at the end ofprior fiscal period
GrantedForfeited
VestedUnvested at the end of thecurrent fiscal period

Number of shares of 2021 plan has been restated, as appropriate, to reflect twofor-one stock split effective August 1, 2022iii) Unit price information

Fair value per share2023 plan¥ 3,205

Yen
2022 plan¥ 2,6102021 plan¥ 2,245

Fair value per share of 2021 plan has been restated, as appropriate, to reflect
two-for-one stock split effective August 1, 202230

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

14. Shareholders’ Equity (continued)
Restricted stock awards (continued)
2.

Method of determining fair value
It is the closing price of the Company’s common stock in the Tokyo Stock Exchangeon the business day before the day of the meeting of the Board of Directors.

3.

Method of estimating the number of vested shares
The actual number of forfeited stock options is shown as it is difficult to reasonably
estimate the number of stock options that will be forfeited in the future.

15. Provision for Loss on Construction Contracts
Provision for loss on construction contracts included in cost of sales for the years ended
March 31, 2024 and 2023 amounted to ¥319 million ($2,107 thousand) and ¥38 million,
respectively.
16. Research and Development Costs
Research and development costs included in selling, general and administrative expenses
for the years ended March 31, 2024 and 2023 amounted to ¥381 million ($2,516 thousand)and ¥383 million, respectively.

31

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

17. Other Comprehensive Income
The following table presents reclassification adjustments and tax effects allocated tocomponents of other comprehensive income for the years ended March 31, 2024 and 2023:

Millions of yen
2024
2023
Net unrealized holding gain (loss) on
investments in securities:
Amount arising during the year
Reclassification adjustments for loss
realized in the statement of income
Before tax effectTax effectNet unrealized holding loss on investments insecurities, net
Foreign currency translation adjustments, net
Retirement benefits liability adjustments:
Amount arising during the year
Reclassification adjustments for gain
realized in the statement of income
Before tax effectTax effect
Retirement benefits liability adjustments, net
Total other comprehensive income

Thousands of
U.S. dollars

2024¥ 1,845¥ 145$ 12,185

–
1,845
(550)

–
145
(37)

–
12,185(3,632)

1,295
427

108
595

8,553
2,820

512

(138)

3,382

10
522
(159)
363
¥ 2,085

66
(72)
22
(50)
¥ 653

66
3,448
(1,051)
2,397$ 13,770

18. Leases
Operating lease transactions(Lessee)
Future lease payments for the non-cancelable portion of the Company’s operating leases at
March 31, 2024 and 2023, are as follows:

Due within 1 year
Due after 1 year

Millions of yen
2024
2023
¥ 31
¥ 31
43
74
¥ 74
¥ 105

Thousands of
U.S. dollars
2024
$ 205
284
$ 489
32

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Financial Instruments
Status of financial instruments(1) Policy for financial instruments
The Group manage their funds by investing only in short-term deposits, and primarilyraise funds by borrowings from banks and issuing bonds. The purpose of entering into
derivative transactions is to mitigate fluctuation risk related to interest rates with respect
to borrowings from banks, and derivative transactions are not carried out for speculative
purposes.
(2) Types of financial instruments, related risk and risk management for financial
instruments
Notes receivable and accounts receivable on completed construction contracts are
subject to the credit risk of customers. Regarding this risk, the Group monitor due dates
and outstanding balances by individual customer, and the credit worthiness of theirmain customers regularly.
Investments in securities are mainly composed of stocks and are exposed to fluctuation
risk of market prices and the Group review the fair values of such listed stocks every
quarter.
Short-term bank loans, long-term debt and bonds are mainly utilized for business
operations.
In addition, the Company follows internal policies which include authorized proceduresand processes governing derivatives within the actual demand.
(3) Supplementary explanation of fair value of financial instruments
The fair value of financial instruments can fluctuate because different assumptions
maybe adopted for calculations of fair value considering various factors.

33

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Financial Instruments (continued)
Estimated fair value of financial instruments
Carrying value of financial instruments on the consolidated balance sheets at March 31,
2023 and 2024, the estimated fair value and the difference between them are shown in thefollowing table. Cash and deposits and accounts payable on construction contracts andshort-term bank loans are not included in the table below as they are mainly settled withina short term and their fair value approximates carrying value.

Carrying value

Millions of yen
2024
Estimated fairvalue

Difference

Notes receivable and accounts
receivable on completed
construction contracts
Investments in securities (*)
Total assets¥ 64,777
5,762¥ 70,539¥ 64,802
5,762¥ 70,564

¥ 25
0
¥ 25

Bonds
Long-term loans
Total liabilities¥ 1,640
6,884¥ 8,524¥ 1,6216,809¥ 8,430¥ (19)(75)¥ (94)

Carrying value

Millions of yen
2023
Estimated fairvalue

Difference

Notes receivable and accounts
receivable on completed
construction contracts
Investments in securities (*)
Total assets¥ 61,163
3,924¥ 65,087¥ 61,218
3,924¥ 65,142

¥ 55
0
¥ 55

Bonds
Long-term loans
Total liabilities¥ 1,640
6,884¥ 8,524¥ 1,620
6,862¥ 8,482¥ (20)(22)¥ (42)

34

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Financial Instruments (continued)
Estimated fair value of financial instruments (continued)
Thousands of U.S. dollars
2024
Estimated fair
Carrying value
value
Difference
Notes receivable and accounts
receivable on completed
construction contracts
Investments in securities (*)
Total assets$ 427,825
38,056$ 465,881$ 427,990
38,056$ 466,046

$ 165
0
$ 165

Bonds
Long-term loans
Total liabilities$ 10,832
45,466$ 56,298$ 10,706
44,971$ 55,677$ (126)(495)$ (621)(*) Unquoted securities and Investment in partnerships at March 31, 2024 are as follows.
Since there is no market price for unlisted equity securities and it is difficult todetermine the fair value, they are not included in marketable securities and investments
in securities in the preceding table estimated fair value.

Unlisted stocks
Union investment

Millions of yen
2024
2023
¥ 751
¥ 809
–
5

Thousands of
U.S. dollars
2024$ 4,960–

Investments in partnerships are not subject to disclosure of fair value in accordance withparagraphs 24-16 of the “Guidance on Accounting Standard for Measurement of Fair Value”(Accounting Standards Board of Japan Application Guidance No. 31, June 17, 2021).

35

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Financial Instruments (continued)
Redemption schedule
The redemption schedule for cash deposits, and receivables are summarized as follows:

Cash deposits
Notes receivable and accounts
receivable on completed
construction contracts
Total

Cash deposits
Notes receivable and accounts
receivable on completed
construction contracts
Total

Within 1 year
¥ 13,025

Millions of yen
2024
Over 1 year
within 5 years¥–

Over 5 years
within 10 years¥ –63,113¥ 76,138

1,476¥ 1,476

188¥ 188

Thousands of U.S. dollars
2024
Over 1 year
Over 5 years
Within 1 year
within 5 years within 10 years$ 86,025$–$–
416,835$ 502,860

9,748$ 9,748

1,242$ 1,24236

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Financial Instruments (continued)
Breakdown of fair value of financial instruments by level
Fair values of financial instruments are categorized into three levels as described below on
the basis of the observability and the materiality of the inputs used in the fair value
measurement.
Level 1: Fair values measured using quoted prices of identical assets or liabilities in active
markets among observable valuation inputs
Level 2: Fair values measured using inputs other than inputs included within Level 1 amongobservable valuation inputs
Level 3: Fair values measured using unobservable valuation inputs
When multiple inputs that have a significant impact on the calculation of fair value are used,
fair value is classified to the level with the lowest priority in the calculation of fair value
among the levels to which each of those inputs belongs.
Financial instruments measured at fair value at March 31, 2024 and 2023
Millions of yen

2024
Fair value

Investments in securities:
StocksTotal assets

Level 1

Level 2

Level 3

Total

¥ 5,762¥ 5,762

¥–
¥–

¥–
¥–

¥ 5,762¥ 5,762

Level 1
Investments in securities:
StocksTotal assets¥ 3,909¥ 3,909

Level 1
Investments in securities:
StocksTotal assets$ 38,056$ 38,056

Millions of yen
2023
Fair value
Level 2
Level 3
¥–
¥–

¥–
¥–

Thousands of U.S. dollars
2024
Fair value
Level 2
Level 3
$–
$–

$–
$–

Total
¥ 3,909¥ 3,909

Total$ 38,056$ 38,056
37

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Financial Instruments (continued)
Breakdown of fair value of financial instruments by level (continued)
Financial instruments other than those measured at fair value at March 31, 2024 and 2023

Notes receivable and accounts
receivable on completed
construction contracts
Investments in securities:
Government bonds
Total assets
Bonds
Long-term loans
Total liabilities

Notes receivable and accounts
receivable on completed
construction contracts
Investments in securities:
Government bonds
Total assets
Bonds
Long-term loans
Total liabilities

Level 1Millions of yen
2024
Fair value
Level 2
Level 3

¥ –¥ 64,802¥–¥ 64,802

–
¥ –
¥ –
–
¥ –

–
¥ 64,802¥ 1,6216,809¥ 8,430

–
¥–
¥–
–
¥–

–
¥ 64,802¥ 1,6216,809¥ 8,430

Level 1Millions of yen
2023
Fair value
Level 2
Level 3

¥ –¥ 61,218¥–¥ 61,218

15
¥ 15
¥ –
–
¥ –

–
¥ 61,218¥ 1,620
7,210¥ 8,830

–
¥–
¥–
–
¥–

15
¥ 61,233¥ 1,620
7,210¥ 8,830

Total

Total

38

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

19. Financial Instruments (continued)
Breakdown of fair value of financial instruments by level (continued)

Level 1
Notes receivable and accounts
receivable on completed
construction contracts
Investments in securities:
Government bonds
Total assets
Bonds
Long-term loans
Total liabilities

Thousands of U.S. dollars
2024
Fair value
Level 2
Level 3Total$–

$ 427,990$–$ 427,990

–
$–
$–
–
$–

–
$ 427,990$ 10,706
44,971$ 55,677

–
$–
$–
–
$–

–
$ 427,990$ 10,706
44,971$ 55,677

Note: Description of valuation techniques used and inputs related to the calculation of fairvalue
Notes receivable and accounts receivable on completed construction contracts
Fair values are measured using the discounted present value method based on theamounts receivable, maturity, and interest rates taking into account credit risk foreach receivable classified by a certain period, and are categorized as Level 2.
Investments in securities
Fair values of listed stocks and national bonds are determined by using quoted prices.
Fair values of listed stocks and government bonds are categorized as Level 1 since
they are traded in active markets.
Bonds
Fair value of bonds with fixed rate issued by the Company is determined bydiscounting the total amount of principal with the expected interest rate in the caseof issuing a new bond in same condition, and is categorized as Level 2.
Long-term debt
Fair value of long-term debt with fixed rates is determined by discounting the total
amount of principal with the expected interest rate in the case of undertaking new
borrowings in same condition, and is categorized as Level 2.
39

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

20. Amounts per Share
Amounts per share at March 31, 2024 and 2023 and for the years then ended are as follows:Yen
Net assets
Profit attributable to owners ofparentCash dividends

2024¥ 2,951.17

2023¥ 2,728.46

289.81203.00260.49191.00U.S. dollars
2024$ 19.49
1.91
1.34

Information used in the computation of profit attributable to owners of parent per share forthe years ended March 31, 2024 and 2023 are presented as follows:
Thousands of
U.S. dollars
2024

Millions of yen
2024
2023
Profit attributable to owners ofparentProfit not attributable to commonshareholders
Profit attributable to owners ofparent applicable to commonshareholders¥ 4,671¥ 4,200$ 30,850–––¥ 4,671¥ 4,200$ 30,850

Thousands of shares
2024
2023
Weighted-average number ofshares of common stock used in
the calculation

16,116

16,125

Net assets per share are computed based on the net assets and the number of shares ofcommon stock outstanding at the year end.
Profit attributable to owners of parent per share is computed based on the profit attributableto owners of parent available for distribution to shareholders of common stock and theweighted average number of shares of common stock outstanding during the year.
Cash dividends per share represent the cash dividends proposed by the Board of Directors
as applicable to the respective years.

40Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

21. Revenue Recognitiona.

Information on disaggregated revenue arising contracts with customers
Information on disaggregated revenue arising contracts with customers for the years
ended March 31, 2024 and 2023 is described in Note 22 “Segment Information.”b.

Information providing a basis for understanding revenue arising from contracts withcustomers
Information providing a basis for understanding revenue arising from contracts withcustomers is described in Note 4 “Summary of Significant Accounting Policies,” “(n)Significant revenue and expenses.”c.

Information about the relationship between the satisfaction of performance obligations
under contracts with customers and cash flows from these contracts, and the amountand timing of revenue from contracts with existing customers at the end of the fiscal
year that are expected to be recognized in the following fiscal year or beyond(1) Balances of contract assets and contract liabilities

Millions of yen
2024
2023
Receivables arising from contracts
with customers(balance at the beginning of the year)
Receivables arising from contracts
with customers(balance at the end of the year)
Contract assets(balance at the beginning of the year)
Contract assets(balance at the end of the year)
Contract liabilities(balance at the beginning of the year)
Contract liabilities(balance at the end of the year)

Thousands of
U.S. dollars
2024¥ 37,237¥ 21,379$ 245,935

34,351

37,237

226,874

23,92633,454

158,02130,42623,926200,951

4,638

4,404

30,632

4,197

4,638

27,719Contract assets mainly relate to the rights of the Group to the consideration for
unbilled amount of construction contracts, which the Group have satisfied aperformance obligation at the end of the fiscal year. Contract assets are reclassified
to accounts receivable arising from contracts with customers when the rights of theGroup become unconditional.
41

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

21. Revenue Recognition (continued)c.

Information about the relationship between the satisfaction of performance obligations
under contracts with customers and cash flows from these contracts, and the amountand timing of revenue from contracts with existing customers at the end of the fiscal
year that are expected to be recognized in the following fiscal year or beyond(continued)(1) Balances of contract assets and contract liabilities (continued)
Contract liabilities mainly relate to consideration received from customers prior toperformance based on construction contracts. Contract liabilities are reversed inline with revenue recognition. The revenue recognized during the fiscal year thatwas included in the balance of contract liabilities at the beginning of the year was¥4,559 million ($30,110 thousand).
(2) Transaction price allocated to remaining performance obligations
The amounts of the transaction price allocated to remaining performanceobligations by segment are as follows. These amounts are expected to berecognized as revenue within approximately two years.

Building construction
Civil engineering
Total

Millions of yen
2024
2023
¥ 147,274¥ 125,999
35,09930,309¥ 182,373¥ 156,308

Thousands of
U.S. dollars
2024$ 972,683
231,814$ 1,204,497

22. Segment Informationa.

Segment Information(1) Overview of reporting segments
The reporting segments of the Group are components for which discrete financial
information is available and whose operating results are regularly reviewed by theCompany’s Board of Directors to make decisions about resource allocation andassess their performance.
The Group mainly operates in the construction business and has two reporting
segments, which are the Building Construction Segment and the Civil Engineering
Segment.
42

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

22. Segment Informationa.

Segment Information (continued)(2) Information on the amount of sales, profit or loss, assets, liabilities and other items
by reportable segment, and disaggregated information on earnings
The method of accounting for reporting segments is, in principle, the same as statedin Note 4 “Summary of Significant Accounting Policies.” The income of reporting
segments is calculated on the basis of operating income. Intersegment sales arerecorded based on current market prices.
Millions of yen
2024
Reporting Segments
Building
Civil
Construction Engineering

Net sales and income:Authorities
Private sales
Overseas
Sales to third parties
Intersegment sales
Net sales
Segment income

Total¥ 15,974
105,425
7,562¥ 12,000
7,758
696¥ 27,974
113,183
8,258

128,961–
128,961

20,454–
20,454

149,415–
149,415¥ 10,602¥ 2,559¥ 13,161

Others

Sub total

¥

569
585
2,107

¥ 28,543
113,768
10,365

3,261
6
3,267
751

¥

Adjustments

Total

–
–
–

¥ 28,543
113,768
10,365

152,6766
152,682–(6)(6)

152,676–
152,676¥ 13,912¥ (9,854)¥ 4,058

Adjustments

Total

¥

Millions of yen
2023
Reporting Segments
Building
Civil
Construction Engineering
Net sales and income:Authorities
Private sales
Overseas
Sales to third parties
Intersegment sales
Net sales
Segment income

Total

Others

Sub total–––¥ 35,734
97,542
11,160144,436
18
144,454

–
(18)
(18)

144,436–
144,436¥ 14,908¥ (9,216)¥ 5,692¥ 18,430
88,303
9,723¥ 16,704
8,523
75¥ 35,134
96,826
9,798

¥ 600
716
1,362

¥ 35,734
97,542
11,160116,456
13
116,469

25,302–25,302

141,758
13
141,758

2,678
5
2,683

¥ 10,400¥ 3,954¥ 14,354

¥ 554

¥

43

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

22. Segment Information (continued)a.

Segment Information (continued)(2) Information on the amount of sales, profit or loss, assets, liabilities and other items
by reportable segment, and disaggregated information on earnings (continued)
Thousands of U.S. dollars
2024
Reporting Segments
Building
Civil
Construction Engineering

Net sales and income:Authorities
Private sales
Overseas
Sales to third parties
Intersegment sales
Net sales
Segment income

Total

Others

Sub total

Adjustments$$ 105,502
696,288
49,944$ 79,255
51,2384,597$ 184,757
747,526
54,541$ 3,758
3,864
13,915$ 188,515
751,390
68,456

851,734–
851,734

135,090–135,090986,824–
986,824

21,53740
21,577

1,008,361
40
1,008,401$ 70,022$ 16,901$ 86,923$ 4,960$

91,883

Total

–
–
–

$ 188,515
751,390
68,456

–
(40)
(40)

1,008,361–
1,008,361$ (65,082)$“Others” is a business segment which is not included in the reporting segments andincludes real estate and other businesses.
Adjustments for segment income in the amounts of ¥9,854 million ($65,082
thousand) and ¥9,216 million for the years ended March 31, 2024 and 2023 include
eliminations of intersegment transactions of ¥1 million ($7 thousand) and ¥1
million and corporate expenses of ¥9,853 million ($65,075 thousand) and ¥9,215
million recorded as selling, general and administrative expenses not attributable toany business segments, respectively.
The total amount of segment income is adjusted to operating income on the
consolidated statement of income.
Sales to third parties include revenue from contracts with customers and otherrevenues. Other revenues are not significant.
Assets, liabilities and others are not allocated to business segments.

44

26,801Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

22. Segment Information (continued)b.

Related information(1) Information by products and services
Disclosure of information by products and services for the years ended March 31,
2024 and 2023 has been omitted as the Company classifies such information in thesame way as it does its reporting segments.
(2) Information by geographical segment
Disclosure of sales and property and equipment by geographical area for the years
ended and at March 31, 2024 and 2023 has been omitted as sales to domestic
customers were in excess of 90% of consolidated net sales, and the balance ofproperty and equipment in Japan was in excess of 90% of consolidated property
and equipment.
(3) Information by major customers
Disclosure of information by major customers for years ended March 31, 2024 and2023 has been omitted as sales to each customer were less than 10% ofconsolidated net sales.

c.

Impairment losses by reporting segment
Millions of yen
2024
Reporting Segments

Impairment losses

Building
Construction
¥–

Civil
Engineering
¥–

Total
¥–

Other
¥–

Elimination
andcorporate
¥ 84

Total
¥ 84

Elimination
andcorporate
¥ 145

Total
¥ 145

Millions of yen
2023
Reporting Segments

Impairment losses

Building
Construction
¥–

Civil
Engineering
¥–

Total
¥–

Other
¥–

45

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

22. Segment Information (continued)c.

Impairment losses by reporting segment (continued)
Thousands of U.S. dollars
2024
Reporting Segments

Impairment losses

Building
Construction
$–

Civil
Engineering
$–

Total
$–

Other
$–

Elimination
andcorporate
$ 555

Total
$ 555

(*) The amount of “Corporate/Elimination” is impairment loss on corporate assets that
do not belong to any segment.
d.

Information on amortization of goodwill and remaining unamortized balance
Goodwill is not allocated to reporting segments. Amortization of goodwill was ¥187
million ($1,235 thousand) and ¥172 million as at March 31, 2024 and 2023, respectively.
Remaining unamortized balance included in “Intangible assets” was ¥974 million($6,433 thousand) and ¥1,068 million as at March 31, 2024 and 2023, respectively.

23. Information on Transactions with Related Parties
For the fiscal year ended March 31, 2024
(1) Transactions with related parties
There are no applicable.
(2) Notes on parent company and significant affiliates
There are no applicable.
For the fiscal year ended March 31, 2023
(1) Transactions with related parties
There are no applicable.
(2) Notes on parent company and significant affiliates
There are no applicable.
46

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

24. Subsequent Events
Appropriation of retained earnings
The following distribution of retained earnings of the Company, which has not beenreflected in the accompanying consolidated financial statements for the year ended March
31, 2024, was approved at the annual general meeting of the shareholders of the Company
held on June 27, 2024.

Cash dividends of ¥203 ($1.34) per share

Millions of yen¥ 3,276

Thousands of
U.S. dollars$ 21,637

Transactions under common control etc.
Additional acquisition of subsidiary shares
On April 25, 2024, the board of directors of the Company resolved that the Company would
acquire all shares of EVERGREEN ENGINEERING & CONSTRUCTION PTE. LTD, aconsolidated subsidiary of the Company, and the acquisition was completed on May 7, 2024.
1.

Overview the transaction(1) Name and business description of companies in business combination
Name of the company:
EVERGREEN ENGINEERING & CONSTRUCTION PTE. LTD.
Business description:
Building construction, mechanical and electrical engineering services, building
maintenance services(2) Date of the business combinations
May 7, 2024
(3) Legal form of the business combinations
Acquisition of shares from non-controlling shareholders(4) Name of the companies after the business combination
No change47

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

24. Subsequent Events (continued)
Transactions under common control etc. (continued)
1.

Overview the transaction (continued)(5) Other matters related to overview of transaction
All shares held by non-controlling shareholders will be acquired, making theCompany a wholly owned subsidiary of the Company.

2.

Outline of the accounting treatment to be applied
The Company will treat this as a transaction with non-controlling shareholders undercommon control in accordance with the Accounting Standard for Business
Combinations (ASBJ Statement No.21, January 16, 2019), and the Guidance on the
Accounting Standard for Business Combinations and Accounting Standard for Business
Divestitures (ASBJ Guidance No.10 January 16, 2019).

3.

Matters concerning the acquisition of additional shares of subsidiary
Consideration for acquisition: Cash
Acquisition cost: SGD 24,049 thousand

4.

Matters concerning a change in initial equity related to transactions with noncontrolling shareholders(1) Main reasons for the change in capital surplus
Additional acquisition of subsidiary shares(2) Amount of capital surplus reduced by transactions with non-controllingshareholders
Not yet determined48

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

24. Subsequent Events (continued)
Stock Split and Subsequent Partial Revision to the Articles of Incorporation
The Company resolved to implement a stock split and partially amend its Articles ofIncorporation in relation to the stock split at the Board of Directors meeting held on May
14, 2024.
1.

Purpose of the Stock Split
The purpose of the stock split is to reduce the investment unit price per share of theCompany's stock, thereby improving the liquidity of the shares and creating a moreinvestor-friendly environment, with the aim of expanding investors.

2.

Overview of the Stock Split
The Company will be conducted a five-for-one stock split of common stock owned byshareholders listed or recorded in the final shareholder register as of July 31, 2024.

3.

Increase in Number of Shares Due to the Stock Split
Total shares issued prior to stock split:
16,157,258 shares
Increase in shares due to stock split:
64,629,032 shares
Total shares issued following stock split:
80,786,290 shares
Total number of authorized shares following stock split: 290,000,000 shares

4.

Schedule of the Stock Split
Publication of record date:
Record date:
Effective date:5.

July 12, 2024
July 31, 2024
August 1, 2024

Effect on per share information
Per share information for the current fiscal year, assuming that the stock split was
conducted at the beginning of the current fiscal year, is as follows.
Yen
Net assets per share
Profit attributable to owners of parent

2024¥ 590.23
57.96

2023
¥ 545.69
52.10

U.S. dollars
2024$ 3.900.38

49

Asanuma Corporation
Notes to Consolidated Financial Statements (continued)

24. Subsequent Events (continued)
Stock Split and Subsequent Partial Revision to the Articles of Incorporation (continued)
6.

Subsequent partial revision to the Articles of Incorporation(1) Reason for the revision to the Articles of Incorporation
Due to the stock split, the total number of authorized shares defined Article 6 of
the Company’s Articles of Incorporation will be revised in accordance with Article
184, Paragraph 2 of the Companies Act.
(2) Detail of the revision to the Articles of Incorporation
The details of the revision are as follows.
Current Articles of Incorporation
Revised Articles of Incorporation
Article 6
Article 6(Total number of shares authorized to (Total number of shares authorized to
be issued)
be issued)
The total number of shares authorized The total number of shares authorized
to be issued by the Company shall be
to be issued by the Company shall be
58,713,000 shares.
290,000,000 shares.
Underlined text indicates changes.
(3) Schedule of the revision to the Articles of Incorporation
Effective date:

7.

May 14, 2024

Others(1) Change in amount of share capital
The amount of the Company’s share capital will not change as a result of the stock
split.
(2) Dividends
As the stock split will be conducted with an effective date of August 1, 2024, theyear-end dividend for the fiscal year ended March 31, 2024 will be based on thenumber of shares held prior to the stock split.

50