ASANUMA CORPORATIONWith Our Proud History
Creating a Desirable Future

Corporate briefings
February 15, 2020 (Saturday)
Security Code: 1852

Table of Contents
１.
２.
３.
４.
５.

History, Major Projects
Three-year Medium-term Plan Progress
Return to Shareholders
Contribution to Society
Miscellaneous Activities

1

2

1882

Yoshino Shihan School

1892

1896

Nara Prefectural
Koriyama Jr. High School

Nara Prefectural
Unebi Jr. High School
3

1912

Rokujuhachi Bank head office

1966
Nanto Bank
Koyaguchi
Branch Office

2003
1962
Nanto Bank
Nara City South
Branch Office4

Nanto Bank
Koriyama Branch OfficeCity1929 Osaka
Momoyama Hospital

19681961

Osaka World Expo.
Press Center

YamatoKoriyama
Public Office

1970

5

Osaka World Expo.
Laos Hall

1995

1997

TonouchiDisasterRestoration
work1995

Route 3 Kobe Line
Restoration Work

Tokaido Line Mikage BV
Restoration Work

1995 Takatori Station Restoration Work

6

Tower Osaka
2003 CityCFT Award

2008

2008

Kyoto University
Inamori Foundation MemorialMuseum
BCS Award

2016

Jotoku Resident Service Office

Imperial Household Agency
Shosoin office BCS Award
7

Osaka Machinami Award２．Three-year Medium-term Plan Outline ①

Our Slogan
With Our Proud History , Creating a Desirable Future
We are proud of the qualities that define us created over our 125-years history

Traditionpassed on from predecessors

TrustPeople

that we have earned fromcustomers

who are vital to all of ouractivities

When we reach our 150th anniversary in 2042, we are determined to remain a company that contributes to greater
safety, confidence and comfort in society. We plan to accomplish this by pursuing the following goals.

The Asanuma Corporation Vision Use distinctive strengths backed by technology and knowledge to be the first
choice of customers.
 Accurately identify business climate changes and sincerely meet various needs
to be a trusted member of society.
 Meet the expectations of society and do our work with pride to be a company
that can grow continuously.

8２．Three-year Medium-term Plan Outline ②
FY2018 to FY2020 is positioned the term for
Reinforcing our Foundation
Theme

Create distinctive strengths that differentiate Asanuma Corporation
Make the construction business even more profitable and competitive

3 Core Goals

Add new technologies and start new business
Build an infrastructure capable of sustained growthPlan forinvestment

Invest 20 billion yen over three years to realize the ideal company
image we envisionReturn toShareholders

Our basic policy for shareholder distributions is to position aconsistent dividend as the highest priority while increasing retainedearnings to further improve financial soundness and to have sufficient
funds for future requirements. We will distribute earnings properly
based on results of operations.

92. Three-year Medium-term Plan
Numerical Targets(Unit: 100 million yen)

FY2019/3
Mediumterm Plan

FY2019/3
Results

FY2020/3
Mediumterm Plan

FY2020/3
3 rd Quarter
Results

Progressrate

FY2021/3
Mediumterm Plan

Orders received

1,300

1,537

1,330

1,068

79.5%

1,360

Sales

1,295

1,357

1,386

1,040

77.2%

1,389

Operating Profit

495762

49

79.0%

72

Net income attributable
to shareholders of parentcompany Net Income

3241

40

32

78.0%

47

FY2019/3
Mediumterm Plan

FY2019/3
Results

FY2020/3
Mediumterm Plan

FY2020/3
3 rd Quarter
Results

FY2021/3
Mediumterm Plan

Operating profit ratio

3.8%

4.2%

4.6%

4.8%

5.2%

Return on Invested
Capital (ROIC)

7.0%

8.1%

8.4%

――

9.2%

Return on equity (ROE)

9.0%

11.5%

10.6%

――

11.4%

Equity ratio

36.0%

36.6%

41.0%

39.3%

47.0%

Capital cost (WACC)

5.0%

5.1%

5.0%

――

5.0%

10

2. Three-year Medium-term Plan Progress ①
Make the construction business even more profitable and competitive

Raise productivity by using information and communications technology

CIM
3D Scanner measurement

BIM
Condominium Entrance

BIM
Bar arrangement diagram11

2. Three-year Medium-term Plan Progress ②
Make the construction business even more profitable and competitive
Improving Productivity by Using ICT Development of Learning System byUsing VR Technology

VR simulated workshop experience122. Three-year Medium-term Plan
Progress ③-1Make the construction business even more profitable and competitive
Improving Productivity by Using ICT Developmentof Skill Maintenance System

13

2. Three-year Medium-term PlanProgress ③-2
Make the construction business even more profitable and competitive
Ai-MAP SYSTEM
Ai-LOGGER

Ai-TECJob SiteManager
Office far from the job site
Information gathering using communication systems

Ai-MOTION
14

2. Three-year Medium-term Plan Progress ④
Make the construction business even more profitable and competitive
Enhance renovation: Renovation work branding plan
By branding,
Promoting Differentiation, Strengthening, and Deepeningof the Renovation Business of Asanuma“OX is a renovation business brand of Asanuma”
Acquire market recognition and create business opportunities

Exhibition Situation
15

2. Three-year Medium-term Plan Progress ⑤
Add new technologies and start new businesses
Activities for developing new technologies and construction processes○ Practical application of special laminated fiber sheets
Jointly developed by Hanshin Expressway Technology Co., Ltd. and KFC Co., Ltd.

[Maintenance & Resilience ASIA 2019] held in Bangkok, the Kingdom of Thailand

JICA (Japan InternationalCooperation Agency) wasselected as a proposal for a
project to support SDGs
businesses, and aims to win
orders for infrastructure
repair and reinforcement
projects for highways andother infrastructure in theKingdom of Thailand.
The JICA's business meets
SDGs's Goal-916

2. Three-year Medium-term Plan Progress ⑥
Build an infrastructure capable of sustained growth○Introduction of job pay

Recruit and train
people withoutstanding skills andcreate an environment
where they can realize
their full potential･Introduced new personnel salary system (since April 2018)○Introduction of volunteer leave (since April 2019)○Introduction of Flexible Time (for renovation staff since April 2019)○Initiatives for Two Weekly Holidays･By March 2020, 4 holidays – 6 weeks in Public construction and4 holidays – 5 weeks in Private construction achieve○Increase the number of outside directors
・Increased the number of female outside directors（appointed as members of the Nomination and Compensation Committees）

Outside directors to the total number of directors 25.0％ → 37.5％

Create an evenstronger corporate
governanceframework○Appropriate Management of the Nomination and Compensation Committees
・Clarification of Criteria for Appointment and Dismissal of Representative Directors
・Increase in the number of days held（FY2018 7 times → FY2019(as of January 31,2019) 9 times）

Ratio of outside directors to all directors 50.0% → 60.0%○Strengthen investor relations activities
・Introduction of Electronic Voting System at General Meetings of shareholders
・Enhancement of English-language disclosure17

2. Three-year Medium-term Plan Progress ⑦
Plan for investments◆Technical research center Extension and renovation (open at end of March 2019)
SpecialFeature・Top-class facilities in the Kansai region in therenovation field・Cooperation with universities and public laboratories
in the Kansai region

Renovation

・Established training and meeting areas to train
young employees and engineers from partnercompanies
・Renewal of test equipment

Extension

・Establishment of seismic monitoring system
・Installation of a multi-purpose laboratory space

Extension building

Bird’s-eye view

18

Multi-purpose experiment space (Extension building)

Quake-absorbing dampers

2. Three-year Medium-term Plan Progress ⑧
Plan for investments◆To strengthen overseas operations
Corporate Name

SINGAPORE PAINTS & CONTRACTOR PTE. LTD.

Address

Singapore

Business Line

Building painting and repair contracting

Percent ownership ofvoting rights

October 2018
October 2023

Reason for acquisition

Renovation business development in ASEAN region

Acquisition of 80％ of shares
Acquisition of 20％ of shares◆Cash payments to strengthen collaboration with partner companies
Cash ratio
improvement･From August 2018, the lower limit of the amount of notes
issued was changed to 50 million yen or more, and the cash
payment ratio was increased･From January 2020, All cash payment has started
19

３．Return to Shareholders ①
Basic Policy
Maintaining stable dividends is the first priority, and the basic policy is to improve the financial
position and retained earnings for the future, and to return profits appropriately in accordancewith business results

FY2018 Plan

FY2019 Plan

FY2020 Plan

Over 30%

Over 40%

Over 50%Dividend per share（¥/share）（2017 previously for even converted to a value
after the reverse stock split）

Dividend payout ratio（％）

Octorber 1,2018
Reverse stock split
10share→1share

350

50.1％

300

40

30.3％

200

25.7％

150
10.5％

100

50

40.1％

250

No dividend500FY2013(actual)5.4％5.7％¥2(¥20)¥2（¥20）¥5(¥50)¥8(¥80)FY2014(actual)

FY2015(actual)

FY2016(actual)Dividend per share(125th founding year commemor active dividend
Dividend per share(regular)
Dividend payout ratio

20¥16（¥160）¥153（¥15.3）

FY2017(actual)

FY2018(actual)60¥208（¥20.8）¥292（¥29.2）30
20100

FY2019(plan)

Three-year Medium-tern Plan

FY2020(plan)

３．Return to Shareholders ②
Reasons for purchase and cancellation of treasury stock
In order to enhance shareholder returns and implement flexible capital policies in response tochanges in the business environment, we acquired treasury stock and used the proceeds from thesale of a portion of its strategic shareholdings to acquire treasury stock.

Purchase
Content

・Total number of shares to be purchased 330,000 shares （maximum）
・Total amount of purchase costs of shares ¥1,000,000,000（maximum）

Result・Shares purchased
・Purchase costs
・Period of purchase313,600 shares¥999,933,700
November 12, 2018 to January 16, 2019

Cancellation
・Number of shares to be cancelled 430,000 shares（Percentage of total number of issued shares before cancellation 5.05％）

Cancellation

・Scheduled date of cancellation May 31, 2019
・Number of shares issued
Before Cancellation 8,508,629 shares
After Cancellation
8,078,629 shares

21

４．Contribution to Society ①
Asanuma Social Contribution Basic Policy
In order to realize the ideal form of society as a member of society, each and every employee is aware of
their social responsibilities and actively promotes social contribution activities.

Report on activities of sponsoring organizations since April 2019

The Japan Blind Tennis FederationJune 2019

The Japan Physically Disabled
Baseball FederationMay 2019
22Mr.Ohno
Winning B1-class boys
Convention MVP

４．Contribution to Society ②
Provide exhibition space for“SYURA and STONE”

Supporting“GAKUENMAE ART FESTIVAL”

SYURA is one of a sledge had used for carrying
stones or other materials in case of building acastle. It is made of wooden stand and a log, andhas been said that also had used for constructionof Koriyama Castle.

Art event aimed to be united and developed thelocal community. The Asanuma Memorial Museum,located in this region, has been offered as one ofthe event site from the first held in 2015.

23５．Miscellaneous Activities
Holding Open Day to construction site

Supporting Culture and Art Event

We hold Open Day at construction site for local
residents or students of Junior high and Highschool.

Joined and supported Art and Architect Festivalat Mt. Hiei

Other activity support
Osaka Symphony Orchestra （http://sym.jp/）
Osaka Philharmony Orchestra（http://www.osaka-phil.com/）
KANSAI NIKIKAI （http://kansai-nikikai.com/）24

Corporate Profile
Corporate NameASANUMA CORPORATION

Representative

Makoto Asanuma, Representative President and C.E.O.

Established

January 20, 1892

Incorporated

June 15, 1937

Capital9,614,761,866 JPY

Business Line

General Contractor

Employees

Consolidated 1,427
non-consolidated 1,266

Head Office

Maruito Namba Bldg., 1-2-3 Minatomachi,Naniwa-ku, Osaka

Branches

Tokyo, Nagoya, Kyushu, Hiroshima, Tohoku, Hokkaido,Saitama, Yokohama, Kobe, Technical Research Center

Sales offices

Morioka, Fukushima, Chiba, Tama, Hokuriku, Shizuoka, Mie,Keiji, Nara, Okinawa, Guam, Cambodia
25(as of March 31,2019）

Topics in 2019
This section introduces the latest topics of Asanuma
August 1October 16

Technology Presentation Meeting
The Ai-MAP SYSTEM being developed was taken up
in the BIM/CIM Special Feature.
October 30
Presentation Meeting on Measures to Improve
Workplace Productivity
December 24 Donate Air-conditioner to Koriyama High School
Kensetsutsushin News Paper
as of October 16, 2019

Nara News Paper
as of December 25,2019Kensetsutsushin News Paper
as of November 8, 2019

Kensetsutsushin News Paper
as of August 23, 2019

26

ASANUMA CORPORATION
February 15, 2020 (Saturday)
With Our Proud History
Creating a Desirable Future

Inquiries
Corporate Communications Dept.
Tel 06-6585-5500 Fax 06-6585-5556