Disclaimer: This document is an English translation of the Japanese original. The Japanese original will prevail to the extent
that there is any conflict or discrepancy in meaning between the Japanese original and the English translation thereof.

FY3/21（Fiscal 2020）First Half Financial Results（April 1 to September 30, 2020)

November 19, 2020

Ⅰ. FY3/21 First Half Financial Results

Outline1

1H Business Environment
・Firm trends in public sector construction investment
Market・Decrease in private sector capital investment due to the downturn inEnvironment corporate sector earnings and uncertainty surrounding business conditions
・Incidence of harsh restrictions placed on overseas economic activity

JapanOverseas

・State of emergency declared by the Japanese government in April in responseto the COVID-19 pandemic
・In principle, all business and work sites closed from 4/24 to 5/6
・Thoroughgoing steps taken to prevent the spread of COVID-19 (includingefforts to avoid the 3Cs of crowded places, close-contact settings, andconfined spaces) at all work sites since the lifting of the state of emergency ;no subsequent incidence of construction suspension attributable tothe pandemic
・Efforts to resolve delays in the delivery of certain materials and equipmentin the 1Q ; no major impact on construction from a procedural perspective
・Overall steady progress in construction
・Incidence of multiple suspensions in construction due to such factors
as lockdowns, curfews, and restrictions on activities
・One incidence of ongoing construction suspension at this time2

Highlights
Consolidated net sales(Billion yen)

１８１.０
（YoY Change ＋2.7%）（Billion yen）

1H Result

FY-end Result

4,000400

359.9

3,000300

378.1

2,000200■Steady progress in domestic construction; increasein net sales of completed construction contracts

1,000100

168.6
1,880

176.2
1,880

181.0

FY3/20FY3/210
FY3/19Consolidated
Operating Profit (Billion yen)

１３.８

Consolidated Operating Profit Margin

7.7 ％（Consolidated Operating Profit YoY Change ＋17.2%）（Consolidated Operating Profit Margin YoY Change ＋0.9Ｐ）■Increase in gross profit on completed construction
contracts in line with the upswing in domestic
construction profitability

Non-consolidated
Orders received (Billion yen)

８６.２

（YoY Change ▲62.0%）（Percentage of progress against the full-year forecast 25.7%）■Impact of COVID-19 on activities including
the postponement of order timing■Negative correction in year-on-year large-scaleconstruction orders（Billion yen） （Operating Profit）

1H Result

FY-end Result（Operating Profit Margin）

FY-end result

1H Result

30300
25
250

10.0%
6.5%
6.6%

8.0%

20200
150
15

23.6

4.0%

100
1050
50

24.6

6.7%

7.7%

6.0%
4.0%

11.8

13.8

2.0%

6.7

0.0%

FY3/19FY3/20（Billion yen）

FY3/21
1H Result

FY-end Result

500
5,000400
4,000300
3,000427.6380.2

2,000200
1,000100

211.6

226.8
86.20
FY3/19FY3/20FY3/213【Consolidated】 Operating Results

FY3/20 1H

FY3/21 1H(Apr.1,2019‐Sept.30,2019)(Apr.1,2020‐Sept.30,2020)

Forecast
ResultYoY
Change

１７８．０

１８１．０

＋２．７％

＋１．７％

２３．３

２１．０

２４．１

＋３．７％

＋１５．１％（Gross profit margin）（１３．２％）（１１．８％）（１３．４％）（＋０．１Ｐ）（＋１．６Ｐ）

Selling, general andadministrative expenses

１１．４

１０．５

１０．３

△１０．２％△１．８％

Operating profit

１１．８

１０．５

１３．８

＋１７．２％＋３２．０％（６．７％）（５．９％）（７．７％）（＋０．９Ｐ）（＋１．８Ｐ）

１１．４

９．０

１２．６

＋１０．３％＋４０．６％

７．６

６．０

８．５

＋１１．５％＋４２．６％

Result(announced inAug,2020)

Net sales

１７６．２

Gross profit（Operating profit margin）

Ordinary profit
Profit attributable toowners of parent

Change From
Forecast(Unit: Billion yen. Rounded down to the unit)4

【Consolidated】 Balance Sheets

FY3/20 1H(Apr.1,2019‐Sept.30,2019)

ResultFY3/20FY3/21 1H(Apr.1,2019‐Mar.31,2020) (Apr.1,2020‐Sept.30,2020)

Result ①

Result ②

Change②－①Current assets

２９７．４

２７７．５

２６２．９

△１４．５

Non-current assets

６２．８

６２．１

６４．３

＋２．１

・Cash and deposits（＋２．８）
・Notes receivable, accounts
receivable from completed
construction contracts and other（△１．８）（△１４．０）（＋０．６）

Total assets

３６０．２

３３９．７

３２７．２

△１２．４

・Securities
・OtherCurrent liabilities

１９６．４

１７９．３

1５９．６

△１９．７

・Notes payable, accounts payable

２５．８

２３．４

２４．７

＋１．２

２２２．２

２０２．８

1８４．４

△１８．４

Total net assets

１３７．９

１３６．９

1４２．８

５．９

Total liabilities andnet assets

３６０．２

３３９．７

３２７．２

△１２．４

Interest-bearing debt
(Billion yen)
Debt/Equity ratio※（times)

３０．１

２７．１

２７．９

＋０．８

０．２２

０．２０

０．２０

△０．０Ｐ

Equity ratio(％）

３８．１

４０．０

４３．４

３．４Ｐ

Non‐current liabilities

Total liabilities

for construction contracts andother（△１５．８）
・Advances received on
construction contracts inprogress（＋１．１）
・Other current liabilities（△３．５）
・Long-term borrowings（＋１．５）
・Other（△１．７）
・Retained earnings（＋５．６）
・Other（＋０．３）(Unit: Billion yen. Rounded down to the unit)※ Debt/Equity ratio : Interest-bearing debt／Equity（Net assets－Share acquisition rights－Non controlling interests）

5

Ⅱ. Details ofNon-Consolidated Financial Results

6

【Non-consolidated】 Net Sales of Completed Construction Contracts/

Gross Profit on Completed Construction Contracts
FY3/20 1H

FY3/21 1H(Apr.1,2019‐Sept.30,2019)(Apr.1,2020‐Sept.30,2020)

ForecastResult(announced inAug,2020)

ResultYoY
Change１６１，６６３

１６３，５００

１６８，８３２

＋４．４％

＋３．３％

５５，９４３

６３，５００

６６，５８３＋１９．０％＋４．９％

Building construction

１０５，７１９

１００，０００

１０２，２４９

△３．３％

＋２．２％

Gross profit on completed
construction contracts

２１，３０９１９，４００

２２，６４７＋６．３％＋１６．７％（Construction gross profit margin）（１３．２％）（１１．９％）（１３．４％）（＋０．２Ｐ）（＋１．５Ｐ）

Civil engineering

１１，５８６

１０，３００１２，０１４＋３．７％＋１６．６％（２０．７％）（１６．２％）（１８．０％）（△２．７Ｐ）（＋１．８Ｐ）

９，７２３

９，１００

１０，６３３＋９．４％＋１６．９％（９．２％）（９．１％）（１０．４％）（＋１．２Ｐ）（＋１．３Ｐ）

Net sales of completed
construction contracts
Civil engineering

Building construction

Change From
Forecast(Unit: Million yen. Rounded down to the unit)

7

【Non-consolidated】 Orders Received

FY3/20 1H

FY3/21 1H(Apr.1,2019‐Sept.30,2019)(Apr.1,2020‐Sept.30,2020)

Forecast
Result(announced inAug,2020)

ResultYoY
ChangeChange From
Forecast

Orders Received

２２６，８６６

１２０，０００

８６，２００△６２．０％△２８．２％

Civil engineering

１１５，６６１

４０，０００３０，１１１△７４．０％△２４．７％

Domestic

９９，３８６

３８，０００２９，６７７△７０．１％△２１．９％

Overseas

１６，２７４２，０００

４３４△９７．３％△７８．３％

Building construction

１１１，２０５

８０，０００５６，０８９△４９．６％△２９．９％

Domestic

１０２，４５４

７６，０００

５５，３３３△４６．０％△２７．２％

Overseas

８，７５１

４，０００

７５６

△９１．４％△８１．１％(Unit: Million yen. Rounded down to the unit)8

【Non-consolidated】 Year-end Backlog

FY3/20 1H

FY3/21 1H(Apr.1,2019‐Sept.30,2019)(Apr.1,2020‐Sept.30,2020)

ResultResultYoYChange

FY3/20(Apr.1,2019‐Mar.31,2020)

ResultYear-end Backlog

５８３，０８８４６３，８６８

Civil engineering

３５４，４６６

３２７，５９４△７．６％

３６４，１１９

Domestic

３２６，４５３

３０６，１５３△６．２％

３３９，５１２

Overseas２８，０１２

２１，４４０△２３．５％

２４，６０７

２２８，６２１

１３６，２７３△４０．４％

１８２，５７８

Domestic

２１５，３６９

１３０，６５９△３９．３％

１７１，４８９

Overseas

１３，２５２５，６１３△５７．６％

１１，０８９Building Construction△２０．４％ ５４６，６９８(Unit: Million yen. Rounded down to the unit)

9Ⅲ. Forecast of Earnings

FY 3/21 Full Fiscal Year10

Our Understanding of the Full Fiscal Year Business Environment
Construction
Completion ・ Profits
国内
Secure construction revenue and profits through the safe and steady implementation of construction
work in hand・ Construction work in Japan projected to progress along the same lines as the 1H on the back ofthoroughgoing pandemic countermeasures including efforts to avoid the 3Cs at each work site
・ Possibility remains that further suspensions and delays in overseas construction will occur due tosuch factors as lockdowns and restrictions on mobility
・ Ensured the profitability of work in hand at the time orders were secured ; steps taken to maintainstable labor expenses and equipment prices

Order Environment
While trends in public sector construction are expected to remain steady, competition for private
海 外construction orders is anticipated to become increasingly intense due to shrinking demand assectora result of the recession
・ Expected to receive civil engineering orders for comprehensive evaluation and large-scale infrastructure while
taking into account construction structure and systems
・ Substantial number of building construction projects scheduled for the 2H; project plans postponed in the 1H also
anticipated to commence by the end of the period; work to bolster logistics facility endeavors commensurate withgrowth in e-commerce・ Uncertainty surrounding future overseas project trends

In light of the ongoing spread of COVID-19 worldwide, uncertainty surrounding when the pandemic
will come to an end, and concerns that the virus will once again re-emerge in Japan, the outlook
remains uncertain.
11

【Consolidated】 Forecast for Full Fiscal Year

FY3/20FY3/21(Apr.1,2019‐Mar.31,2020)(Apr.1,2020‐Mar.31,2021)

1H
Progress rateYoYChangeResult

Full-year forecast

Net sales３７８，１３５

３６５，０００

４９．６％

△３．５％

Gross profit

４７，２１６

４４，１００

５４．８％

△６．６％

（Gross profit margin）（１２．５％）（１２．１％）（－）（△０．４Ｐ）

Selling, general andadministrative expenses

２２，５１７

２０，５００

５０．３％

△９．０％

Operating profit

２４，６９９２３，６００

５８．７％

△４．５％

（６．５％）（６．５％）（－）（△０．１Ｐ）

Ordinary profit

２３，９８３

２１，９００

５７．８％

△８．７％

Profit attributable toowners of parent

１６，８０３

１４，８００５７．８％△１１．９％（Operating profit margin）(announced in Aug. 2020)(Unit: Million yen. Rounded down to the unit)

12【Non-consolidated】 New Orders (Full-year forecast)

FY3/20FY3/21(Apr.1,2019‐Mar.31,2020)(Apr.1,2020‐Mar.31,2021)

ResultOrders
Received

３８０，２８１

Civil
engineering

１９３，５７５

Full-yearforecast(announcedin Aug. 2020)

３３５，０００
１２０，０００1H
Progress
rate
２５．７％
２５．１％

[Non-consolidated] Changes in Orders Received/
Changes in Year-end Backlog
Orders Received（civil（Million yen）

YoY
Change600,000
500,000
400,000
300,000
200,000
100,0000Overseas
Building
construction
Domestic

１７５，７２７

１７，８４７

１１４，０００

６，０００

２６．０％

７．２％

△３５．１％△６６．４％

１８６，７０６

２１５，０００２６．１％＋１５．２％

１７２，２９３

２１０，０００２６．３％＋２１．９％

200,000

１４，４１２

５，０００

１５．１％

50,0000380,281
226,866

186,706

111,205

335,000

86,20056,08930,111215,000

1H Result

Full-year forecast

193,575

115,661

FY-end Result

1H Result

120,000
FY3/21

17,847

193,575

Domestic civil engineering
Overseas civil engineering

115,661
16,274

120,000

6,000

30,111
99,386434

175,727

114,000

29,677
FY-end Result

1H Result

FY3/20Full-year forecast

1H Result

FY3/21[Non-consolidated] Changes in building construction（Million yen） orders received
Domestic building construction
Overseas building construction

300,000

215,000

186,706△６５．３％

14,412111,205

5,000

8,751

100,000(Unit: Million yen. Rounded down to the unit)

Year-end Backlog

463,868

100,000

200,000

Overseas546,698[Non-consolidated] Changes in civil engineering orders（Million yen） received

150,000

DomesticOrders Received（buildingconstruction）

583,088

FY3/20△１１．９％△３８．０％engineering）

172,293
102,4540

FY3/20210,00075655,333
FY-end Result

1H Result

56,0891H ResultYear-end Result

FY3/2113

【Non-consolidated】

Net Sales of Completed Construction Contracts/
Gross Profit on Completed Construction Contracts (Full-year forecast)
FY3/20FY3/21(Apr.1,2019‐Mar.31,2020)(Apr.1,2020‐Mar.31,2021)

1H
Progress rate

YoY
ChangeResult

Full-year forecast

３５１，５２７

３３５，０００

５０．４％

△４．７％

Civil engineering

１２４，３１４

１３５，０００４９．３％＋８．６％

Building construction

２２７，２１３

２００，０００５１．１％△１２．０％

Gross profit on completed
construction contracts

４３，１７４

４０，３００

５６．２％

△６．７％

（１２．３％）（１２．０％）（－）（△０．３Ｐ）

２１，９６０

２１，９００

５４．９％

△０．３％

（１７．７％）（１６．２％）（－）（△１．４Ｐ）

２１，２１４

１８，４００５７．８％△１３．３％（９．３％）（９．２％）（－）（△０．１Ｐ）

Net sales of completed
construction contracts（Construction gross profit margin）

Civil engineering

Building construction(announced in Aug. 2020)(Unit: Million yen. Rounded down to the unit)

14

Status of Dividends and Own Share Purchase
１．Annual dividends

（JPY）

35

2ndquarter end

Year end

Total

30
25

FY3/20(Apr.1,2019‐Mar.31,2020)(Result)

FY3/21(Apr.1,2020‐Mar.31,2021)(Forecast)

Annual dividends/
Dividend payout ratio（Total return ratio）

１５ Yen １５ Yen

３０ Yen・

66.4%

Annual dividends
Dividend payout ratio

Total return ratio

30

3050%

2540%

20

39.1%
35.5%

10３０ Yen

3060%

20
15

１５ Yen １５ Yen

70%

64.9％

30%
20%

19.4%
14.1%

510%

(Results）
0201720182019

2020

2021

0%

（Forecast）

２．Purchase of Own Shares (Resolution of the Board of Directors’ meeting held on November 10, 2020)･Period of purchase

From November 16, 2020 to November 15, 2021

・Total number of shares to be purchased（maximum） 18,000 thousand shares・Total amount of purchase cost（maximum）

Final year of the current
Medium-term Management Plan(Period 2023.3)
Total return ratio（Target Figure）
50% or more

10 billion yen（2023年3月期）

15

Ⅳ. Medium-Term Management Plan

(FY3/21 to FY3/23) Progress to Date

16

Progress under the Medium‐Term Management Plan (Overview)
ChapterⅠ《Branding》 FY3/21 – FY3/23Createcustomervalue➢ Achievement of safety, high quality, high productivity, and low cost by strengthening technology development / innovation /proposal capabilities➢ To remain by our customers’ sides over the long term and respond quickly to diverse needs by strengthening LC support business○ Various technology development endeavors aimed at securing a raft of benefits including improved
productivity, lower costs, and shorter construction periods in progress (endeavors include the development
Progressof an integrated control system for mountain tunnel construction and an autonomous crack detection robot)
to Date○ Acquisition and expansion of a new precast concrete factory in an effort to increase cost competitiveness○ Establishment of the LCS Business Headquarters (set up of a maintenance, renewal, and other support system)

Createshareholder
value

Progressto Date

➢ To secure stable profits (transformation to a business structure that is not easily affected by changes in orders received in a fiscalyear)➢ Increase corporate value by returning profits to shareholders (dividends, etc.) and investing in growth○ Sales and profits in the 2Q exceed plans○ Interim and period-end dividend of ¥15 per share for a total annual dividend of ¥30 per share○ Plans to purchase own shares (¥10 billion over one year going forward)○ Growth investment of ¥20 to ¥30 billion currently anticipated over the next three years

Create➢ To participate in renewable energy business ➢ Process of decarbonizing business activities (promotion of SBT and RE100)
environmental ➢ Technology development, trial demonstration and deployment for ZEB, next-generation energy management systems, etc.
value

ChapterⅡ

ChapterⅢ《Spread》 《Establish》
FY3/24－FY3/27

FY3/28－FY3/31○ Plans to participate in renewable energy businesses in Japan and overseas in progress○ Efforts to promote SBT and RE100 in progress
Progress ○ At the Company’s Technical Research Instituteto Date
→ Commenced next-generation energy project trial demonstration→ Set up and commenced operation of ZEB trial demonstration space

Createemployee
value➢ Achievement of sense of well-being (treatment according to work style and results, promotion of health management, diversity)➢ To realize work-style reforms, realization of diverse work styles➢ Development / securing of human resources (expansion of human resource development system)○ Efforts to promote various measures aimed at realizing a sense of employee well-being and happiness inprogress
Progress○ Promoting health management activities
to Date○ Ongoing measures taken to establish a five-day work week by the end of FY3/22○ Promoting teleworking as well as full use of such initiatives as online conferencing.

17

Progress under the Medium‐Term Management Plan (Investment Plan)【Investment Plan for the Period of the Medium‐Term Management Plan(FY3/21-FY3/23)】
FieldAroundEnergy business¥５billion

Real estate business/Infrastructure
management business
Partner strategic
investment
Innovation investment,
Technologydevelopment
investment, OtherTarget

AmountAround¥５billion
Around¥５billion

Around¥１０billion

・Renewable energy business (Japan and overseas)
・Energy Service Provider (ESP) business・Owned asset (branch building) facility management business・Acquisition of profitable properties
・Alliances with overseas business partners
・Collaboration with startup companies
・Technology development investment that contributes tosuch benefits as improved productivity, low cost, andshorter construction periods
・Technical Research Institute capital investment
・Ｐrecast concrete factory expansion (third building)・Venture capital (VC) investment「HAZAMA ANDOVISION2030」
Growth Investment
Innovation
investment,
Technology
development
investment,
Capital investment,
Human resource
investment

Energybusiness

Total amount ofinvestment of¥100 billion
or more(10 years)

Partner strategic
investment

Real estate business
Infrastructure managementbusiness

Total Investment over Three Years (¥20-¥30 billion)【1H 2020 Investment Projects】
Technology research development, new precast concrete factory (Shizuoka),
profitable properties (urban business hotels)
18Presentation materials are a collection of slides prepared for IR purposes and not intended to solicit
investment in the securities issued by the Company.
This document also contains information on future prospects based on current plans, estimates, forecasts,and projections by Hazama Ando Corporation with respect to the Company’s business and industry trends.
These forward-looking statements are therefore subject to various risks and uncertainties.

19