Apr 1, 2021

To all concerned parties
Name of Company:
Stock Exchange
Listing:
Stock Code:ASANUMA CORPORATIONTokyo Stock Exchange,First Section
1852

Notice of Formulation of "The Three-Year Medium-Term Plan (FY 2021-FY 2023)"
We announce that we have formulated the "The Three-Year Medium-Term Plan (FY2021-FY2023)" .
In the previous The Three-Year Medium-Term Plan (FY 2018 - FY 2020), we focused on the pursuit ofASANUMA CORPORATION 's uniqueness and implemented a variety of measures to achieve sustainable growth
despite a diverse and changing business environment. As a result, in FY 2018 and FY 2019, we achieved ourmedium-term plan, with an increase in construction on hand partly due to orders received for large-scaleconstruction and the addition of factors such as improved profitability of construction. In FY 2020, we revised theannual plan downward from the medium-term plan, taking into account the impact of the spread of COVID-19. At
this stage, however, we expect to achieve our annual plan except for orders, and we were able to achieve a certain
level of results throughout the three years.
However, the external environment surrounding us has changed even more dramatically in recent years. Thechanges are faster, bigger, and likely to continue into the future. In order to achieve sustainable growth in the futurein this challenging business environment, it is necessary to identify changes as quickly as possible and respondswiftly and appropriately.
In light of these factors, The Three-Year Medium-Term Plan, which is newly launched today, has adopted its
corporate philosophy of " we are committed to do creation with good faith and contribute to build safer, peaceful,and comfortable society." Under this philosophy, the long-term vision is "We aim to be a company that demonstrates
uniqueness and continues to boldly take on challenges in response to dramatic changes in the external environment."
In addition, we have positioned this Three-Year Medium-Term Plan as "deep dive into the unique characteristics ofASANUMA CORPORATION " in order to translate it into a stage where we can demonstrate our uniqueness inorder to realize our long-term vision. Basic Policy is committed to deeping dive into the unique characteristics ofASANUMA CORPORATION and taking on the challenge of change. We will boldly take on the challenges ofimplementing the following three measures to respond to changes in the external environment. In this way, we will
strive to achieve results.
【Changes in the External Environment】【Measures】①Domestic construction investment, which isshrinking over the long term, and domestic
maintenance and repair investment, which issteady due to the aging of infrastructure andBuilding Construction structures◆Strengthen competitiveness (cost, quality, proposal)◆Strengthen initiatives in new areas (overseas and new fields)◆Strengthen initiatives in the domestic maintenance andmanagement/repair business②Decline in the productive labor force in theconstruction sector◆Strengthening Initiatives that Contribute to Improving
Productivity◆Strengthening Human Resource Recruitment and Human
Resource Development◆Strengthen collaboration with partner companies

1③Momentum to improve corporate reputation
through non-financial management activities(ESG, SDGs, etc)◆[E]: Promotion of “Eco-Friendly ASANUMA21”◆[S]: Acquire WELL Building Standard, etc. as part of“ReQuality”◆[G]: Continue to strengthen the functions of the Board ofDirectors, etc[Key Performance Indicators (Consolidated)]◇ The ratio of operating income to sales is projected to exceed 5.0% in FY 2023.
◇ Return on equity (ROE) is forecast at higher than 10.0% in all three years, exceeding the cost ofshareholders' equity.
◇ The return on invested capital (ROIC) is projected to exceed the cost of capital (WACC) in all the threeyears of the plan period.

FY2020(Prospect)

FY2021(Plan)FY2022(Plan)FY2023(Plan)

3yearsaverage

Orders received¥120.2bn¥132.1bn¥141.5bn¥146.6bn¥140.1bn

Net sales¥134.5bn¥140.0bn¥135.5bn¥137.3bn¥137.6bn

Operating income¥5.2bn¥5.3bn¥6.5bn¥6.7bn¥6.2bnProfit attributable to owners ofparent¥4.0bn¥4.1bn¥4.4bn¥4.5bn¥4.3bnRatio of operating income to sales

3.9%

3.8%

4.8%

5.0%

Return on Equity (ROE)

10.0%

10.1%

10.2%

10.0%

Cost of shareholders' equity

8.0%

Return on Invested capital (ROIC)

7.0%

Cost of capital

6.0%

Note

8.0%
7.1%

8.3%

8.3%

6.0%

※ Cost of shareholders' equity and the Cost of capital are current assumptions.

[Return to Shareholders]◇Consolidated dividend payout ratio: Continue to exceed 50%, the highest level in the construction industry.

2

※ Dividends for FY 2020 will be finalized at the General Meeting of Shareholders held in Jun 2021.
※ The amount of dividends for FY 2021 to FY 2023 is a reference value calculated from net income
attributable to owners of the parent listed in "Key Performance Indicators (Consolidated)" above.

[Fund Injection Plan]
In order to realize our long-term vision, we will invest ¥8 billion over three years after strictly assessing theeffects of our investments.
Major components are as follows◇ Investment plan
◆Technology and research, ICT : ¥3 billion(seismic resistance,vibration control and seismic isolationic technologies, Ai-MAP SYSTEM advancement,
environment-related technologies, etc.)◆Investment related to new areas: ¥5 billion(Expansion of ASEAN region renovation business, promotion of concession business, etc.)

3

The Three-Year Medium-Term Plan (FY2021-FY2023)
With Our Proud History, Creating a Desirable Future

April 2021

ASANUMA CORPORATION

―――――――― Contents ――――――――◆ASANUMA CORPORATION‘s corporate philosophy and long-term vision・・・・1◆Review of Previous The Three-Year Medium-Term Plan (FY2018-FY2020)◇Management Indicators

・・・・2◆The Three-Year Medium-Term Plan (FY2021-FY2023)◇Positioning

・・・・5◇Basic Policy and Challenging External Environmental Changes

・・・・6◇Measures and Major Initiatives to Address Changes in the External Environment

・・・・7◇ASANUMA CORPORATION‘s SDGs Initiatives

・・・・10ASANUMA CORPORATION 's corporate philosophy andlong-term vision【Corporate Philosophy】

We are committed to do creation with good faith and contribute to build safer,peaceful, and comfortable society.

― Long-Term Vision ―We aim to be a company that demonstrates uniqueness and continues to boldly
take on challenges in response to dramatic changes in the external environment.

The external environment surrounding us has changed even more dramatically inrecent years. The changes are faster, bigger, and likely to continue into the future.
In order to achieve sustainable growth in the future in this challenging businessenvironment, it is necessary to identify changes as quickly as possible and respondswiftly and appropriately.
ASANUMA CORPORATION is committed to continuing its corporate philosophy of"we are committed to do creation with good faith and contribute to build safer,peaceful, and comfortable society." by leveraging its proprietary technologies andknow-how and boldly taking on challenges in response to this dramatic change.
1Review of Previous The Three-Year Medium-Term Plan(2018-2020) ①

Management Indicators○FY2018 and FY2019

In order to rush to win orders ahead of the consumption tax hike, orders for large-scale construction,
ample construction on hand, improved profitability of construction, etc, orders received, net sales,operating income, and net income all achieved the targets of the medium- term plan.

○FY2020

Taking into account the impact of COVID-19 , the annual plan was revised downward from themedium-term plan, but at this stage, other than orders received, it is expected that the annual plan
will be achieved.

○3-yearly average

Operating income is expected to miss the medium-term plan, but orders received, net sales, and net
income are expected to achieve the medium-term plan.
(Hundred million yen)Key Performance
FY2018
Indicators
Medium-term(Consolidated)
Plan

FY2018Results

FY2019Medium-term
Plan

FY2019Results

FY2020Medium-term
Plan

FY2020Plan

FY2020
ProspectMedium-term
Plan 3 years
AerageResults andPlan
Average

Ordersreceived

1,300

1,537

1,330

1,483

1,360

1,261

1,202

1,330.0

1,407.3

Net sales

1,295

1,357

1,366

1,415

1,389

1,345

1,345

1,350.0

1,372.3

Operatingincome

49.0

57.0

62.0

66.0

72.0

52.5

52.5

61.0

58.5

Profit attributableto owners ofparent

32.0

41.8

40.0

43.0

47.0

40.240.2

39.7

41.7

Net income2Review of Previous The Three-Year Medium-Term Plan(2018-2020) ②

Management Indicators○FY2020, the final year of the plan・Operating income margin : 5.0% over・Equity ratio : 40.0% level
・Return on equity (ROE) : 10.0% over (a level that exceeds the cost of equity)○Return on Invested Capital (ROIC) : Level above Cost of Capital for all three years○FY2020

The operating income margin is expected to fall short of the indicators due to a downward revisionof the final year plan from the medium-term plan in consideration of the impact of COVID-19 , while
the equity ratio and ROE are expected to achieve the indicators.

○ROIC Expected to Exceed Cost of Equity in All Three Years
FY2018FY2019FY2020Medium-term
Plan

FY2018Results

Medium-term
Plan

FY2019Results

Medium-term
Plan

FY2020Plan

FY2020
Prospect

Operating income
margin

3.8%

4.2%

4.6%

4.7%

5.2%

3.9%

3.9%

Equity ratio

36.0%

36.6%

41.0%

38.0%

47.0%

43.0%

43.0%

Return on Equity (ROE)

9.0%

11.5%

10.6%

11.3%

11.4%

10.0%

10.0%

7.3%

7.4%

7.3%

8.0%7.3%

8.0%

8.0%

7.0%

8.1%

8.4%

9.1%

9.2%

7.0%

7.0%

5.0%

5.1%

5.0%

6.0%

5.0%

6.0%

6.0%

Key PerformanceIndicators (Consolidated)

Cost of shareholders'equityReturn on Invested
capital (ROIC)
Cost of capital（WACC）

3

Review of Previous The Three-Year Medium-Term Plan(2018-2020) ③Transition○May 2018：Dividend plan at the time of the announcement of the medium-term plan
○May 2019：Upward revision of dividend plan (increase of FY2018 dividend by ¥53)
○Aug. 2020：In light of the impact of COVID-19, the FY2020 plan was revised downward fromthe medium-term plan, and the FY2020 dividend plan was reduced by ¥42(the FY2019 dividend was increased by ¥8).

Purchase of treasury stock and Cancellation
・ Shares purchased 313,600 shares
・ Purchase costs of shares ￥999,933,700・ Period from November 12, 2018 toJanuary 16, 2019

・ Number of shares cancelled: 430,000 shares(5.05% of the total number of issued shares before cancellation)
・ Date of cancellation May 31, 2019
・ Number of Shares issued
Before cancellation: 8,508,629 shares
After cancellation: 8,078,629 shares
4The Three-Year Medium-Term Plan: Positioning― Positioning ―Deep dive into the unique characteristics ofASANUMA CORPORATION
in order to realize the Long-Term Vision

Strengthening
the foundations
Taking on the challenge of drastic changes in the external environment(continuing to respond swiftly and appropriately)Pursuit of the uniquecharacteristics ofASANUMACORPORATION

2018

2019

2020

2017
(125th anniversary)

Toward the Realization of theLong-Term Vision Stage of
demonstration of the uniquecharacteristics of ASANUMACORPORATION

Deep dive into theunique characteristics
of ASANUMACORPORATION

2021

2022

2023

2024

The Three-Year Medium-Term Plan
(FY2021-FY2023)
52025

2026

Commite to docreation with goodfaith and contributeto build safer,peaceful, andcomfortable society

2027 ・・・ ・・・ ・・・

2042(150th Anniversary)

The Three-Year Medium-Term Plan: Basic Policy Challenging
External Environmental Changes― Basic Policy-"Challenge change" by deeping dive into the unique characteristics ofASANUMA CORPORATIONThe unique characteristics of ASANUMA CORPORATION

A company that provides a diverse range of services backed by its unique technologies andknow-how based on its commitment to manufacturing up to honesty and a spirit of boldchallenge without fear of change①Domestic construction investment, which is shrinking
over the long term, and domestic maintenance andrepair investment, which is steady due to the aging of
infrastructure and Building Construction structures
Take on the challenge
Changes in the externalenvironment②Decline in the productive labor force in the construction
sector③Momentum to improve corporate reputation throughnon-financial management activities (ESG, SDGs, etc)
6The Three-Year Medium-Term Plan: Measures and Major Initiatives toAddress Changes in the External Environment ①
Changes inthe External
Environment

1①Domestic construction investment, which is shrinking over the long term,and domestic maintenance and repair investment, which is steady due to theaging of infrastructure and Building Construction structures

Strengthen
competitiveness (cost,quality, proposal)★ Continue to strengthen proposal capabilities using ICT (Using 3Ｄ
data such as BIM and CIM in coordination with design,
construction, and maintenance)★ Further strengthen Construction Management Methods andInspection Systems for Pursuit of Quality Improvement (unifiedASANUMA quality at all stores)★ Expansion of accumulation and utilization of cost data by theestimate and construction divisions

2Strengthen initiatives innew areas (overseas andnew fields）★ Continue to strengthen in efforts for renewal in ASEAN region★ Further strengthen efforts in PFI and concession business★ Continue to promote initiatives to strategically participate in theExpo-related business★ Promoting "ReQuality" Renewal Brand Strategy

3★ Expansion of "Good Cycle Service" (new lifecycle support services)Strengthen initiatives inthe domestic maintenance ★
Strengthen initiatives for disaster prevention and mitigation andand management/repair
national resilience-related projects by expanding seismic
business
technologies and upgrading seismic isolation and shock control
technologies
7

The Three-Year Medium-Term Plan: Measures and Major Initiatives toAddress Changes in the External Environment ②
Changes inthe External
Environment②Decline in the productive labor force in the construction sector★ Enhance the proprietary ″Ai-MAP SYSTEM″ and strengthen efforts
to obtain patents and commercialize it1

Strengthening Initiatives
that Contribute toImproving Productivity★ Promoting the Utilization and Introduction of ICT-Related Systems★ Revitalization of the Workplace Productivity Improvement Award
System through Cooperation with Cooperating Companies★ Strengthen recruitment of female and foreign employeesion

2Strengthening Human
Resource Recruitment and ★ Diversification and utilization of employment patterns (senioremployees, regional employees, etc.)
Human ResourceDevelopment★ Enhancement of employee training using ICT★ Promote and expand CCUS (Construction Career Upgrade System)

collaboration
3 Strengthenwith partner companies★ Continue to promote support for accepting of Specific skill foreign
workers★ Continue to promote training for partner companies

8The Three-Year Medium-Term Plan: Measures and Major Initiatives toAddress Changes in the External Environment ③
Changes inthe External
Environment③Momentum to improve corporate reputation through non-financial
management activities (ESG, SDGs, etc)
★ Promoting ″Eco-Friendly ASANUMA21″※※Operational Plan for Reducing Environmental Impact of Efforts to Achieve
2050 Carbon Neutral

1[E]: Solving
environmental problems★ Obtaining ZEB※ certification as part of ″ReQuality″※Certification to evaluate Building Construction aimed at eliminating annual
balance of energy consumption★ Strengthening Environmentally Conscious Proposal
Capabilities★ Obtaining WELL※ certification as part of ″ReQuality″※Certification to evaluate offices based on the health and comfort of workers

2 [S]: Solving social issues★ Strengthen initiatives to realize two days off a week atworksites★ Establishment of thorough business continuity plans (BCPs)★ Continue to strengthen the functions of the Board of Directors

3[G]: Strengthening
Corporate Governance★ Continue to reduce strategic shareholdings★ Introduction of restricted stock compensation plan
9

The Three-Year Medium-Term Plan: ASANUMA CORPORATION's SDGs
Initiatives■ ASANUMA CORPORATION and SDGs ■The construction industry is an industry in which the business itself is directly connected with SDGs, such as the provision ofliving environments and urban development, which are the foundations of people's lives, the construction and improvement ofinfrastructures, which are the foundations of economic activities, disaster prevention and mitigation, energy saving, andenvironmental protection.
ASANUMA CORPORATION does not consider SDGs activities as part of its social contributions, but rather as "corporate activities =initiatives for SDGs."
・Obtaining ZEB certification as partof ″ReQuality″
・Promoting ″Eco-Friendly
ASANUMA21″・Strengthen initiatives to realize twodays off a week at worksites
・Continue to promote support for
accepting of Specific skill foreignworkers

・Promoting ″Eco-Friendly
ASANUMA21″・Strengthening Environmentally
Conscious Proposal Capabilities

・Enhancement of employee training
using ICT・Continue to promote training forpartner companies

・Further strengthen ConstructionManagement Methods andInspection Systems for Pursuit ofQuality Improvement
・Continue to strengthen in efforts
for renewal in ASEAN region

・Strengthening Environmentally
Conscious Proposal Capabilities
・Promoting ″Eco-Friendly
ASANUMA21″・Strengthen recruitment of female
employees
・Enhancement of employee training
using ICT・Establishing a comprehensive BCP・Strengthen initiatives for disasterprevention and mitigation andnational resilience-related projects
by expanding seismic technologies
and upgrading seismic isolation andshock control technologies

・Continue to strengthen thefunctions of the Board ofDirectors・Promoting ″Eco-Friendly
ASANUMA21″
・Obtaining ZEB certification as partof ″ReQuality″

・Promoting ″ReQuality″ Renewal
Brand Strategy
・Expansion of "Good Cycle Service"10With Our Proud History,
Creating a Desirable Future

For more information
Corporate Communications Division

Ｔｅｌ 06-6585-5500

Ｆａｘ 06-6585-5556

Plans, forecasts and other forward-looking statements in this presentation are based on strategies, goals andassumptions. Actual results of operations may differ significantly from these statements for a variety of reasons.