November 7, 2018

Summary of Consolidated Financial Results
For the Second Quarter of Fiscal Year Ending March 31, 2019 [Japan GAAP] ("Q2/FY2018")
Company: Asunaro Aoki Construction Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange (First Section)
Stock code: 1865
URL: https://www.aaconst.co.jp/
Representative: Yasushi Tsujii, Representative Director and President
Contact: Norihiko Fuwa, Officer and Deputy Chief of Administration H.q.
Contact: 03-5419-1011, Koho@aaconst.co.jp
Date of filing of quarterly securities report:
November 8, 2018
Date of commencement of dividend payment:
Supplementary explanatory documents:
NoEarnings presentation:
No(Yen in millions, rounded down, figures in parentheses indicate negative amounts or percentages)
1. Financial results for the second quarter of the fiscal year ending March 2018 (April 1, 2018 – September 30, 2018)(Percentage figures represent year on year changes)(1) Consolidated result of operations ( year-to-date)
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Million yen%
Million yen% Million yen%
Million yen%
(0.4)
2Q / FY 2018
70,6401,883(43.0)
1,891(42.6)
1,202(42.2)
2Q / FY 201770,9239.0
3,.302(15.8)
3,292(15.9)
2,080(13.3)
Note: Comprehensive income:2Q / FY 2018 :1,364 million yen (41.3%) , 2Q / FY 2017 : 2,324 million yen (4.1%)
Earnings per share
Earnings per share(diluted)
Yen
Yen
2Q / FY 2018
21.77－
2Q / FY 2017
37.23－
(2) Consolidated financial Position

Total assets
Million yen
102,367
108,720

As of September 30,2018
As of March 31,2018(Reference) Shareholders' equity
As of September 30, 2018: 65,118million yen

Net assets
Million yen
65,14565,230%63.6
60.0

As of March 31, 2018: 65,204 million yen

2. Dividends
End of1Q

Equity ratio

End of2Q
Yen
0.00
0.00

Dividend per share
End of3Q
Yen－Yen
FY 3/2018－
FY 3/2019－
FY 3/2019 (Est.)－Note: Change in the estimation of divided from the latest announcement: No

End ofFY

Annual

Yen
22.00

Yen
22.00

22.00

22.00

3. Consolidated forecast for the fiscal year ending March 31, 2019 (April 1, 2018 – March 31, 2019)(Percentage figures represent year on year changes)
OrdersProfit attributable to Net earnings
Net sales
Operating income Ordinary income
received
owners of parent
per share
Million yen% Million yen% Million yen% Million yen% Million yen%
Yen
Full year
160,000 7.7
157,000
2.3
7,700
0.5
7,700
0.6
5,400
0.9
98.05
Note: Change in the forecast from the latest announcement: No*Notes(1) Changes in significant subsidiaries (Changes of specific subsidiaries that accompanies scope change ofconsolidation): No(2) Use of accounting methods specifically for the preparation of the quarterly consolidated financial statements: No(3) Changes in accounting principles and estimates, and retrospective restatement(a) Changes due to revision of accounting standards: No(b) Changes other than (a): No(c) Changes in accounting estimates: No(d) Retrospective restatement: No(4) Number of shares outstanding (common stock)(a) Shares outstanding (including treasury shares)
As of September 30, 2018: 59,100,000
As of March 31, 2018: 59,100,000(b) Treasury shares
As of September 30, 2018: 4,025,148
As of March 31, 2018: 3,787,946(c) Average number of shares (quarterly consolidated cumulative period)
Period ended September 30, 2018: 55,228,082
Period ended September 30, 2017: 55,879,240* Auditing of financial statements is not conducted to this summary of financial results.
* Cautionary statement regarding forecasts and special notes(Note on forward looking statements)
Forward-looking statements in these materials are based on the information available to management at the time thisreport was prepared. Actual results may differ significantly from these statements for number of reasons.

Index for Supplementary Information
1.

Quarterly Consolidated Financial Statements……………………………………………………………………

2(1) Quarterly consolidated balance sheet……………………………………………………………………………..

2(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income…..

4

Quarterly consolidated statements of income…………………………………………………………………….

4

Quarterly consolidated statements of comprehensive income………………………………………………….

4(Reference) Non-consolidated Financial Statements

62.

3.

(1)

Quarterly Non-consolidated balance sheet..............................................................................................

6(2)Quarterly Non-consolidated statements of income and comprehensive income......................................

7

Orders received and net sales.....................................................................................................................

811.

(1)

Quarterly Consolidated Financial Statements
Quarterly consolidated balance sheet(Million yen)
Fiscal year ended March2018(As of March 31, 2018)

Second quarter ended
September 2018
(As of September 30, 2018)

21,58823,864

61,74952,421

2,984

2,556

137

429

603
6,450

603
6,594

956
(267)

1,979
(241)

94,202

88,207

747

722

794

729

1,595
3,618

1,513
3,618

107
495
45

Total Tangible assets

6,868

6,725

Intangible assets
Investments and other assets

373372

Investment securities
Long-term loans receivable

4,016
5

4,185
3

Deferred tax assets
Other

2,457
1,043

2,130
987

Allowance for doubtful accounts

(246)

(244)

ASSETS
Current assets
Cash and deposits
Notes receivable, accounts receivablefrom completed construction contracts
and other
Real estate for sale
Costs on uncompleted construction
contracts
Costs on real estate businessAccounts receivable
Other
Allowance for doubtful accountsTotal current assets
Noncurrent assets
Tangible Assets
Buildings and structures, net
Machinery, vehicles, tools, furnitureand fixtures, netVessels, netLand
Lease assets, net
Construction in progress

Total investments and other assets
Total noncurrent assets
Total assets

2

7,275

7,062

14,517

14,160108,720

102,367(Million yen)
Fiscal year ended March
2018(As of March 31, 2018)

Second quarter ended
September 2018
(As of September 30, 2018)

23,34019,189

903

565

3,633

5,129

447

444

175

126

LIABILITIESCurrent liabilities
Accounts payable for constructioncontracts
Income taxes payable
Advances received on uncompletedconstruction contracts
Provision for warranties for completed
construction
Provision for loss on construction
contracts
Provision for bonuses

1,504

1,615

Provision for loss by disaster
Other

240
4,342

1,404

Total current liabilities

34,58628,474

215

215

8,210
52

8,082
70

Noncurrent liabilities
Deferred tax liabilities for land
revaluation
Retirement allowances
Provision for special repairs of vessels
Other

424

378

8,903

8,747

43,48937,221

Capital stock
Capital surplus

5,000
23,766

5,000
23,766

Retained earnings
Treasury shares

38,722(2,674)38,707(2,906)

Total shareholders’ equity

64,81364,567

643

746

48

48(300)

(243)

390

551

26

27

Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income
Valuation differences onavailable-for-sales securities
Revaluation reserve for landRemeasurements of retirement
allowance plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

365,230

65,145

108,720

102,367(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income
Quarterly consolidated statements of income
For the first half of fiscal year ending March 31.2019 (April 1, 2018 – September 30, 2018)(Million yen)First half ended September
2017 (April 1, 2017September 30, 2017)

First half ended September
2018 (April 1, 2018September 30, 2018)70,53570,035388

604

70,92370,64063,011

63,459380

566

63,39264,025

7,524

6,575

Net sales
Net sales of completed construction
contracts
Sales on real estate businessTotal net sales
Cost of sales
Cost of sales of completed construction
contracts
Cost of sales on real estate businessTotal cost of sales
Gross profit
Gross profit on completed construction
contracts
Gross profit-real estate business

738

7,531

6,614

Selling, general and administrative expenses

4,229

4,731

Operating income

3,302

1,883

Non-operating income
Interest income

10

Dividend income
Other

31
935
11

Total non-operating income

4247

Interest expense
Other

51
036
3

Total non-operating expenses

5239

3,292

1,891

Gain on sales of non-current assets
Gain on sales of investment securities

0536-

Total extraordinary income

536

Extraordinary losses
Loss on disaster

126-

Loss on litigation

221

Other

70

Total gross profit

Non-operating expenses

Ordinary income (loss)
Extraordinary income

Total extraordinary losses

136

22

Income before income taxes

3,161

1,905

822
260

419
281

Total income taxes

1,083

701

Net earnings
Profit (loss) attributable to non-controllinginterests
Profit (loss) attributable to owners of parent

2,078

1,203(1)12,080

1,202

Income taxes-current
Income taxes-deferred

4Quarterly consolidated statements of comprehensive income
For the first half of fiscal year ending March 31.2019(April 1, 2018– September 30, 2018)(Million yen)First half ended September
2017 (April 1, 2017September 30, 2017)

First half ended September
2018 (April 1, 2018September 30, 2018)

Quarterly net earnings
Other comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of retirement allowanceplans
Total other comprehensive income

2,078

1,203

131

103

114

56

246

160

Comprehensive income

2,324

1,364

2,326

1,362(1)1(This splits into…)Comprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

52.

(1)

Quarterly non-consolidated Financial Statements
Quarterly non-consolidated balance sheet(Million yen)
Fiscal year ended March2018(As of March 31, 2018)

Second quarter ended
September 2018
(As of September 30, 2018)12,492

14,10338,45835,153

2,641

2,212

52

353

603
4,978

603
5,050

(123)

(118)

59,10357,357

Tangible Assets
Intangible assets

2,392
227

2,353
239

Investments and other assets
Investment securities

ASSETS
Current assets
Cash and deposits
Notes receivable, accounts receivablefrom completed construction contracts
and other
Real estate for sale
Costs on uncompleted construction
contracts
Costs on real estate business
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets

9,925

10,103

Other
Allowance for doubtful accounts

2,007
(195)

1,713
(192)

Total investments and other assets

11,737

11,624

14,357

14,21773,46071,575

11,821

10,972

116

114

2,649

3,353

Total noncurrent assets
Total assets
LIABILITIESCurrent liabilities
Accounts payable for constructioncontracts
Income taxes payable
Advances received on uncompleted
construction contracts
Other
Total current liabilities

4,235

1,898

18,823

16,338

4,695
183

4,638
177

Noncurrent liabilities
Retirement allowances
Other
Total noncurrent liabilities
Total liabilities

4,878

4,815

23,701

21,154

NET ASSETS
Shareholders’ equity
Capital stock

5,000

5,000

Capital surplus
Retained earnings

23,766
23,07623,766
23,846

Treasury shares(2,674)(2,906)

Total shareholders’ equity

49,16849,706

591

714

591

714

49,75950,42175,46071,575

Valuation and translation adjustments
Valuation differences onavailable-for-sales securities
Total valuation and translation
adjustments
Total net assets
Total liabilities and net assets

6

(2) Quarterly Non-consolidated statements of income and comprehensive income
For the first half of fiscal year ending March 31.2019 (April 1, 2018 – September 30, 2018)(Million yen)First half ended September
2017 (April 1, 2017September 30, 2017)

First half ended September
2018 (April 1, 2018September 30, 2018)

40,62639,061244

605

40,87039,66736,40435,752241

560

36,64636,313

4,221

3,308

Net sales
Net sales of completed construction
contracts
Sales on real estate businessTotal net sales
Cost of sales
Cost of sales of completed construction
contracts
Cost of sales on real estate businessTotal cost of sales
Gross profit
Gross profit on completed construction
contracts
Gross profit-real estate business

344

4,224

3,353

Selling, general and administrative expenses

2,269

2,629

Operating income

1,955

724

10

Dividend income
Other

1,089
8

1,572
10

Total non-operating income

1,099

1,583

Interest expense
Other270

170

Total non-operating expenses

2818

3,026

2,289

4

17

3,021

2,271

654

284

2,367

1,987

Total gross profit

Non-operating income
Interest income

Non-operating expenses

Ordinary income (loss)
Extraordinary losses
Income before income taxes
Total income taxes
Quarterly net earnings

7

3.

Orders received and net sales(1) Consolidated(Million yen, %)2Q / FY 2017

2Q / FY 2018

(Apr 1, 2017 - Sep 30, 2017)(Apr 1, 2018 - Sep 30, 2018)

AmountOrdersreceived

Net sales

Share

AmountShare

Architecture

16,02721.8

30,297

38.4

Civil engineering

57,02077.7

48,051

60.9

Total construction

73,02099.5

78,34999.3

Real estate

388

0.5

604

0.7

Total

73,436100.0

78,953100.0

Architecture

20,58029.0

17,35324.5

Civil engineering

49,95570.5

52,682

74.6

Total construction

70,53599.5

70,035

99.1

Real estate

388

0.5

604

0.9

Total

70,923100.0

70,640100.0(2) Non-consolidated(Million yen, %)2Q / FY 2017

2Q / FY 2018

(Apr 1, 2017 - Sep 30, 2017)
AmountShare(Apr 1, 2018 - Sep 30, 2018)
AmountShare

Architecture

Public7,40714,121

construction

Private7,633

15,136

Subtotal
Civil
engineering

29,257

4,558

10,509

Private20,861

8,285

25,41962.4

18,794

Public11,965

24,630Private28,494

23,421

Total
Real estate

37.0

PublicSubtotal
Orders Total
received construction

15,04040,46099.4

48,052Public--Private

245

605

Total

60.1

38.6

98.7

245

0.6

605

1.3

Public11,965

29.4

24,63050.6

Private28,73970.6

24,02749.4

40,460100.0

48,658100.0

Architecture

19,87348.6

16,157

40.7

Civil engineering

20,75250.8

22,903

57.8Net sales Total construction

40,626

99.4

39,061

98.5

244

0.6

605

1.5

40,870100.039,667

100.0

Total

Real estate
TotalDisclaimer: All financial information has been prepared in accordance with generally accepted
accounting principles in Japan. This document is a partial English translation of the Japanese
Financial Statements which were filed with Stock Exchanges in Japan on November 7, 2018.
The Company provides this translation for your reference and convenience only without any
warranty as to its accuracy. In case of any discrepancy between the translation and theJapanese original, the latter shall prevail8