Financial Results Briefing for
Fiscal Year Ended March 31, 2019

With Our Proud History,
Creating a Desirable Future

May 17, 2019 (Friday)
Asanuma Corporation
Securities Code :1852

1

This material contains forward-looking statements
regarding the Company's business performance andfuture prospects.
These statements are based on currently available
information and assumptions regarding uncertain
factors that may affect the future. Actual results
may differ materially from these statements due tovarious factors.
With Our Proud History,
Creating a Desirable Future2

Table of contents
PageItems

Ｐ4

Business Environment

Ｐ5～

FY2018 Accounting Detailed

Ｐ10～

FY2019 Earnings forecast

Ｐ12～

Three-year Medium-Term Plan Progress

Ｐ17～

Return to Shareholders

Ｐ19

Contribution to Society3

Business Environment
In fiscal 2018, capital expenditures increased moderately andconstruction investments remained firm. In fiscal 2019, theeconomy is expected to remain firm, but attention should be paid
to downward pressure factors such as the postponement or
restraint of capital investment by Japanese companies due to theslowdown in the Chinese economy caused by trade conflicts.

Constructionindustry

Construction Investment
Trillion of yen
60.0

51.3

51.1

51.0

22.6

21.3

53.6

50.0
40.0

22.6

22.4

56.0
23.0

56.7

57.9

22.9

24.4

Public30.0
20.0

Private
28.7

28.3

29.7

31.2

33.0

33.8

33.5

20132014

2015

2016

2017

2018
Forecast

2019
Forecast

10.0
0.0

By Reserch Institute ofConstruction and Economy

4Orders FY2017 - FY2018
153,717
138,765

160,000

130,000
33,795140,000

38,461

120,000

27,000
Building construction Public

100,000
80,00095,52681,00076,710

Building construction Private
Civil Engineering Public

60,000Civil Engineering Private

40,00016,4207,974

16,8005,20020,065
3,528

20,000

0

Building
construction
Civil
Engineering

Total

FY2017FY2018FY2018Results

Plan

Results（Millions of yen）

FY2017
Results

FY2018Plan

FY2018Results

YOY

Plan ratio

Public38,46127,00033,795△4,665

6,795

Private76,71081,00095,526

18,815

14,526

Public20,065

16,80016,420△3,644△380

Private

3,528

5,200

7,974

4,445

2,774

138,765130,000

153,717

14,951

23,717

5

FY2018 Major Orders（ ）JV total

Type of project
Building
construction

Civilengineering（Hundred millions of yen）

ClientContract
price

Police StationTokyo Metropolitan Government

47.0（72.3）

Distribution Warehouse

TOSOH LOGISTICS CORPORATION

41.5

Distribution Warehouse

Shimohana Logistics Co., Ltd

45.8

OfficeIzumi City

Factory

SUGAWA SHATAI CO., LTD.

Renovation

Suita City

Shop

ＰＦＩWako City Hirosawa CORPORATION

24.0

Housing

Urban Renaissance Agency

20.5

Water intake facilities

Osaka City Waterworks Bureau

19.4（32.4）

Decontamination

Fukushima Regional Environment Office

13.3（66.7）

6

40.9（58.4）
36.7
24.4（34.9）

Consolidated Statements of Income
7,953

7,609

8,000
5,700
4,900

6,000

5,616
4,760

5,2214,178
FY2017 Results

3,240

4,000

FY2018 Plan
2,000
FY2018 Results0
Operating income

Ordinary income

Profit attributable toOwners of parent（Millions of yen）

FY2017Results

FY2018
PlanFY2018Results

YOY

Plan ratio

Net sales

143,434

129,500

135,713△7,721

6,213

Operating income

7,953
5.5％

4,900
3.8％

5,700
4.2％

△2,252
△1.3P

800
0.4P

7,609
5.3％

4,760
3.7％

5,616
4.1％

△1,992
△1.2P

856
0.4P

5,221
3.6％

3,240
2.5％

4,178
3.1％

△1,042
△0.5P

938
0.6P

（Rate）

Ordinary income（Rate）
Profit attributable toOwners of parent（Rate）

7

FY2018 Major Net Sales（ ）JV total （Hundred millions of yen）

Type of project
Building construction

Net Sales

Amusement

Ganges SPC

35.3

Distribution Warehouse

Shimohana Logistics Co., Ltd

26.8

SchoolUrban Renaissance Agency

18.1

TOKYU LAND CORPORATION
Mitsubishi Estate Residence Co., Ltd.

18.6

Medical Corporation Seiwakinshukai

18.1（95.2）

Sennan City

16.2
（23.2）

Housing（1）

Hospital
School
Civil engineering

Client（2）RoadWest Nippon Expressway Company Limited

18.0

Sewer

Hirakata City Waterworks Bureau

12.9

（1）

（２）

8

Consolidated Balance Sheets（Millions of yen）

Assets

FY2017FY2018YOY

Current assets

87,25084,924△2,325

Fixed assets

16,11817,075956

Tangible fixed assets

4,788

5,333545

Intangible fixed assets

471

886

415

10,85810,855△3103,369

102,000△1,368

Liabilities

FY2017FY2018YOY

Current liabilities

55,67051,147△4,523Long-term liabilities

12,474

13,386

911

68,14564,533△3,611FY2017FY2018YOY

35,223

37,4662,242

Investments and other assets
TotalTotal
Net assets
Total
9FY2019 Earnings forecast ①160,000

7,000

140,000

6,000

120,000

5,000
FY2018 Results

4,000

100,000

3,00080,000

FY2019 Medium-term

2,000

60,000Plan
FY2019 Plan

1,000

40,000020,000

Operating income

0Orders

Profit attributableto owners ofNet sales

parent（Millions of yen）

FY2018Results

FY2019Mediumterm Plan

FY2019Plan

YOY

Mediumterm plan
ratio

Orders153,717

133,000

134,300△19,417

1,300

Net sales

135,713

136,600

134,700△1,013△1,900Operating income

5,700

6,200

6,270

569

70

Profit attributable toowners of parent

4,178

4,000

4,180

1180

10FY2019 Earnings forecast ②（Millions of yen）

Operating incomemargin
Return on
Invested Capital

FY2019FY2019Plan

YOY

Mediumterm planratio

4.6%

4.7％

0.5P

0.1P

1.1P

8.4%

8.4％

0.3P

―

11.5％

2.5P

10.6%

10.6％

△0.9P

―

36.0％

36.6％

0.6P

41.0%

41.0％

4.4P

―

5.0％

5.1％

0.1P

5.0%

5.1％

―

0.1P

FY2018Plan

FY2018Results

Plan ratio

Mediumterm Plan

3.8％

4.2％

0.4P

7.0％

8.1％

9.0％

（ROIC）

Return on equity（ＲＯＥ）

Equity ratio
Cost of capital（WACC）
45.0（Millions of yen）

40.0
Equity ratio

35.0
30.0

ROE

25.0ROIC

20.0

15.0

Cost of capital

10.0
5.0

Operating income

0.0

marginFY2018FY2018FY2019FY2019PlanResults

Medium-termPlan

Interest expense
Interest-Bearing Debt
Cost of debt

FY2018189
11,694
1.62%

10-year JGB yield
β value
Market Expected Yield
Cost of Equity▲ 0.082%
1.058
7.00%
7.41%

Market capitalization*Tax-rate

19,833
30.4%

Cost of capital（WA CC：Wei g hted a v era g e
cos t of ca pi ta l ）Plan

115.1%＊Excluding treasury
stock as of Mar. 31,2019

Three-year Medium-term Plan
Progress ①Make the construction business even more profitable and competitive○ Started BIM and CIM trials and actively utilized in design and construction projects

Raise productivity byusing information andcommunications
technology

BIM

Condominium Entrance

CIM

Survey results

BIM

CIM

○Renewal branding plan
Enhance renovation

・ Toward a building that is friendly to people who can feelchanges in nature on a daily basis
・ Incorporation of solar, thermal, wind, and materials
12Bar arrangement diagram

Visualization of the lengthof steel pipe piles
Promote sales byconstructing a modelprojectThree-year Medium-term Plan
Progress ②
Add new technologies and start new businesses○Practical application of dynamic analysis systems (Ai-MAP SYSTEM）
The project was adopted by the Ministry of Land, Infrastructure, Transport andTourism for the introduction and utilization of innovative technologies to improve
the productivity of construction sites, and the promotion of their use at worksites.

Helmet logger（Ai-LOGGER）

Activities for developing
new technologies andconstruction processes

Infrastructure
Communicationsystem（Ai-TEC）○Practical application of special laminated fiber sheets
Jointly developed Hanshin Expressway Company Limited and KFC Co., Ltd.

JICA (Japan International Cooperation Agency) was selected as a proposal for a
project to support SDGs businesses, and aims to win orders for infrastructure repair
and reinforcement projects for highways and other infrastructure in the Kingdom ofThailand.

○Promoting the introduction of mobile Batcher plants
Jointly developed by Hanshin High-Speed Technology Co., Ltd.,
Yoko Bussan Co., Ltd., and Koyo Machinery Industry Co., Ltd.

Promote the use and commercializationof small-scale maintenance and repair
work for road structures requiring
small-volume concrete.

13

Three-year Medium-term PlanProgress ③
Build an infrastructure capable of sustained growth○Introduction of job pay

Recruit and train people
with outstanding skills andcreate an environment
where they can realize theirfull 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 and 4 holidays –5 weeks in Private construction achieve○Increase the number of outside directors

Create an even stronger
corporate governanceframework

・Expected to increase the number of female outside directors (to be appointed as
members of the Nomination and Compensation Committees)(After the General Meeting of Shareholders held in June 2019 As for the ratio ofoutside directors to the total number of directors
Before the General Meeting 25.0% → After the General Meeting 37.5%)○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)(Ratio of outside directors to all directors
Before the General Meeting 50.0% → After the General Meeting 60.0%)○Strengthen investor relations activities
・ Introduction of Electronic Voting System at General Meetings of Shareholders
・ Enhancement of English-language disclosure

14Three-year Medium-term Plan
Progress ④
Plan for investments◆Technical research center Expansion and renovation (open at the end of March 2019)
SpecialFeature

・ Top-class facilities in the Kansai region in the renovation
field
・ Cooperation with universities and public laboratories inthe Kansai region

Renovation

・ Established training and meeting areas to train young
employees and engineers from partner companies,
and provide hands-on training
・ Renewal of test equipment

Expansion

・ Establishment of seismic monitoring system
・ Installation of a multi-purpose laboratory space
Expansion Building and Multipurpose
Experimental Space Using Natural Light
Illumination◆ICT・Core Systems related

ICT-related

・Expand BIM and CIM operations
・Introduction of Green site and Building Record System
・System support associated with the commencement ofoperation of the construction carrier-up system
・Expansion of tablet operation
・Proposal of design and construction projects, andutilization for the calculation of workshops, etc.

CoreSystems

Restructuring of personnel, payroll, accounting, and sales
systems
15

Quake-absorbing dampers

Three-year Medium-term Plan
Progress ⑤
Plan for investments◆To strengthen overseas operations
Name

SINGAPORE PAINTS & CONTRACTOR PTE. LTD.

Address

Singapore

Business content
Percent ownership ofvoting rights
Reason foracquisition

Building painting and repair contracting
October 2018
October 2023

Acquisition of 80% of shares
Acquisition of 20% of shares

Renewal business development in ASEAN region◆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.

16

Return to Shareholders:
Purchase and Cancellation of treasury stock
Reasons for purchase and cancellation of treasury stock
Enhance shareholder returns and implement flexible capital policies in response tochanges in the business environment. The funds for the purchase were appropriatedfrom the sale of a portion of the strategic shareholdings.
Purchase
Contents

・Total number of shares to be purchased
・Total amount of purchase costs of shares

Result・Shares purchased
・Purchase costs
・Period of purchase330,000 shares (maximum)¥1,000,000,000（maximum）

313,600 shares¥ 999,933,700
November 12, 2018 to January 16, 2019

Cancellation

Cancellation

・ Number of shares to be cancelled
430,000 shares(Percentage of total number of issued shares before cancellation 5.05%)
・ Scheduled date of cancellation May 31, 2019 (planned)
・ Number of Shares issued
Before cancellation
8,508,629 shares
After cancellation
8,078,629 shares
17

Return to Shareholders:
Revision of dividend payout ratio plan
The Company has revised its plan to achieve a consolidated dividend payout ratio of
30% or more in the first year of the three-year medium-term plan, and to achieve aconsolidated dividend payout ratio of 50% or more in the last year of the plan.
Our goal for FY2020, the last year of the medium-term plan, is to have a consolidated
dividend payout ratio of at least 30%.

Before correction

In principle, we are aiming to achieve the following consolidated dividend payout ratio.

After correctionDividend per share（¥/share）

FY2018 plan

FY2019 plan

FY2020 plan

Over 30%

Over 40%

Over 50%（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％

10050

40.1％

250

No dividend

500FY2013(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

18¥16（¥160）¥153（¥15.3）

FY2017(actual)

FY2018(plan)

60¥208（¥20.8）¥292（¥29.2）

30
20
100

FY2019(plan)

Three-year Medium-Tern Plan

FY2020(plan)

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

FY2018 New Initiatives
Sponsorship of the Japan
Physically Disabled BaseballFederationWorld Convention
Held in Kobe in Sep.2018
Recognition ceremonySponsorship of the Japan
Blind Tennis Federation
National convention
Held in Hiroshima in Sep. 201819

Sponsorship of NaraFM Program,「Akio Okamoto
Nara Oku no Oku」

With Our Proud History,
Creating a Desirable Future

Friday, May 17, 2019
Asanuma Corporation
Contact information
Corporate Communications Dept.
Ｔｅｌ 06-6585-5500

Ｆａｘ 06-6585-5556