IR Meeting Material

Financial Results for the Second Quarter ofthe Fiscal Year Ending March 2024

With Our Proud History,
Creating a Desirable Future

Asanuma Corporation
Prime Market of the Tokyo Stock Exchange
Stock Code :1852

Table of Contents
1. FY2023 ２Q Financials（1）Financial Results / Progress (Consolidated)

・・・・・・・・・

Ｐ. 3（2）Breakdown of Orders Awarded

・・・・・・・・・

Ｐ. 4（1）Renovation Business・・・・・・・・・

Ｐ. 5（2）Response to the Decrease in the Production Worker Population

・・・・・・・・・

Ｐ. 8（3）Non-Financial Information Management (ESGs, SDGs, etc.)・・・・・・・・・

Ｐ. 9

3. Topics

・・・・・・・・・

Ｐ. 11

2. Progress of the Medium-Term Business Plan3

1. FY2023 ２Q Financials（1）Financial Results / Progress (Consolidated)
2Q for the fiscal year ending March 2024, orders received were firm against the backdrop of a favorable order environment. Sales
1 In
were positive both YoY and versus forecasts due to steady progress in construction work. Profits below Gross Profit fell YoY due tolower profit margins from higher materials price, but the plan was achieved thanks to strong earnings at the Singapore subsidiaries.

2 FY2023 full year plan is expected to be achieved with the extraordinary income by the transfer of fixed assets.
FY2021

Major Financial
Results & Plans(Consolidated)

FY20222Q

2Q

FY2023 21２Q
Full-Year
２Q
Full-Year
２Q
Progress
Progress
Results Results Rate (%) Results(Unit: million yen） Results Results
Rate (%)

YoY

2Q
Full-Year
Progress
Planvs Plan
Rate (%)

Orders59,047 136,568

43.2

68,318 144,743

47.1

85,22916,9101,929 144,700

58.9

Net Sales

59,689 135,478

44.0

66,888 144,436

46.3

70,0403,152

5,070 141,800

49.4

Gross Profit

5,720

13,444

42.5

6,760

15,139

44.6

6,276

△483

613,950

GP Rate

9.6%

9.9%

—

10.1%

10.5%

—

9.0%

△1.1P

△0.7P

9.8%

—

SGA cost

4,209

8,609

48.8

4,594

9,447

48.6

4,691

96

△489,850

47.6

Operating Profit

1,511

4,835

31.2

2,165

5,691

38.0

1,585

△580

55

4,100

38.7

Net Profit

956

3,748

25.5

2,135

4,200

50.8

1,101 △1,034

246

4,540

24.3

45.0

Dividend—¥363(2)

——

¥191

————

¥197.5—Dividend
Payout Ratio

—

78.1％

—

—

73.3％————

70.2％

—

(1) ‘Notice Concerning the Transfer of Non-Current Assets and Posting of Extraordinary Income (Gain on Sale of Non-Current Assets)’ disclosed on Nov 8 2023 isalready reflected to the full-year-plan(2) We split each common share at a rate of 2 shares on August. 1, 2022. Therefore, for the year ended March 2022, the amount of a per-share divide is calculated
based on before the stock split.

31. FY2023 ２Q Financials（2）Breakdown of Orders Awarded
1 Orders received in domestic business grow steadily mainly led by factories and warehouses inprivate sectors
2 Orders received in overseas subsidiaries also increased YoY due to large-scale construction orders
at a subsidiary in Singapore
FY2022

Orders（Unit: million yen）

BuildingConstruction
PublicFY2023

２Q Results ２Q Results

1YoY

68,38816,089

9,040

7,638

△1,402

43,25860,74917,491

10,917

8,352△2,565

6,480

5,042

△1,438

4,437

3,309

△1,127

Total

63,21776,74013,523Public15,521

12,680△2,840Private

47,69564,05916,364

Pie chart： Orders

8,488

3,386

Outside： FY2023 ２Q
Inside： FY2022 ２Q

85,22916,910

Domestic
PrivateRenovation
CivilBusinessEngineering(nonPublicconsolidatedbasis)
Private52,299Subsidiaries in ASEAN

5,101

Consolidated

68,31824(non-consolidated basis)

2. Progress of the Medium-Term Business Plan（1）Renovation Business①FY2023 2Q Results

The target of achieving an operating profit in the building renovation business of above 35% of consolidated
operating profit by the final year of the medium-term plan, FY2023, is expected to be achieved, thanks to strong
performance at ASEAN renovation-related subsidiaries.
In the domestic renovation section, some of the large-scale orders were secured and full-year forecasts werealmost achieved as of 2Q, which is expected to contribute to PL.

Operating Profit from Overall Building Renovation Business (FY2023 2Q Results)
FY2021
２Q
Results

FY2022
２Q
Results

1２Q
Results

YoY

1,106

（(Unit: million yen）

FY2023Full-YearPlan626

Progress Rate

1,443

76.6%

35.2%—

Operating Profit762

480% of Operating Profit50.4%

22.2%

69.8%

Domestic Building Renovation
Orders
8,817

10,78919,600

8,811

20,00098.0％—

Completed
Construction

8,313

6,670

8,219

1,549

18,30044.9％

Operating Profit

768

230

345

115

1,120

30.8％

50.8％
ASEAN Building Renovation
Orders
691

10.6％

21.8%

27.3％

—

5,101

8,488

3,386

9,700

87.5％

% of Operating Profit—

Completed
Construction

842

4,182

4,647

465

10,00046.4％

Operating Profit(1)

△6250

761

510

323

235.6％

△0.4％

11.6％

48.0%

7.9％

—

% of Operating Profit—(1)A Including goodwill amortization of ASEAN affiliates(2) Increased in FY2022 due to acquisition of EVERGREEN ENGINEERING＆CONSTRUCTION PTE. LTD. into a subsidiary52. Progress of the Medium-Term Business Plan
（1）Renovation Business② Promoting ‘ReQuality’ the Renovation Business Brand

As part of our value-added offerings, we are proposing renovation projects using our own unique technologies
Our Nagoya Branch renovation project, a flagship of our renovation business, was awarded in Singapore as well.

Proposing Renovation by Utilizing Proprietary Technologies‘Kantsuchi Block’
Reused the soil left over from construction sites tocreate these blocks using our technology

Advanced RC examination and diagnosis technology
Based on our own evaluation criteria through a basic
examination, we propose a more appropriate or optimal
renovation, which also contributes to cost reduction.

The fireld of Examination at our client building

Details

Details

https://www.requality.jp/service/adva
nce/133/

https://www.requality.jp/
service/adva
nce/140/

Installed the blocks at office building reception of ourclient JR West Properties Co., Ltd

Our Nagoya Branch Renovations Project Wins Singapore Good Design 2023
Details

Our Nagoya Branch Renovation Project
received SG Mark, category ‘Sustainable
Design Winner’ in Singapore.

https://www.
requality.jp/works/145/62. Progress of the Medium-Term Business Plan
（1）Renovation Business③Strengthening Business in ASEAN Region

Two of the acquired subsidiaries in Singapore are performing well and progressing steadily toward the full-year plan.
The business in Thailand continues to promote the business of reinforcement of bridges, etc (approved as JICA’sprogram).

SINGAPORE
Subsidiary Name

SINGAPORE PAINTS &CONTRACTOR PTE. LTD.

EVERGREEN ENGINEERING＆CONSTRUCTION PTE. LTD.

Acquisition

October 2018

January 2022

Description ofBusinesses

Renovation & Painting the Buildings

Maintenance services,Electrical engineering services, Renovation Buildings

FY2022Financials

２Q
Results

FY2023
２Q
Results

YoY

FY2022Full-Year
Plan

ProgressRate(%)

２Q
Results

FY2023
２Q
Results

Full-Year
Plan

YoY

ProgressRate(%)

Orders

2,074

6,538

4,464

5,600

116.7

3,027

1,949

△1,077

4,100

47.5

Net Sales

1,370

2,492

1,121

4,700

53.0

3,487

2,972

△5155,300

56.1

Operating Profit

11149138

110135.5411799388560

142.8

Goodwill

1718155169——————THAILAND
Subsidiary Name
: Thai Asanuma Construction Co.,Ltd.
Establishment year: July 2021
Description of Businesses : Maintenance business for highway and bridges
・Jointly promotes the business of reinforcement of bridges with Toray Industries, Inc., andToray International, Inc.
・Adopted for JICA SDGs Business Support Program in 2021. Strengthening businesses to acquire orders
・Carbon Fiber Sheet Reinforcement and Cross-Sectional Repair of Viaducts in Thailand as a pilot project7

1st pilot project in Thailand2. Progress of the Medium-Term Business Plan

（2） Response to the Decrease in the Production Worker Population
Promoting DX (Digitalization)
Jointly developed with other companies “GEMBA Trainer” a virtual field experience-based construction
management education software, which reinforces the education for young employees by digitalization.
••

Learn in a quiz format by operating an employee avatar in virtual workplaces and discovering problems and precautions
Released products for various OSs as well as tablets. Enhanced educational programs for young employees by digitalization
Accumulate experiences in the “Adventure Part“, walking around a virtual field,
stepping forward to “Exercise Part" learning through the quiz according to the level.

Adventure Part

Exercise PartStartQ&A
8Scoring・Explanation

2. Progress of the Medium-Term Business Plan

（3）Non-Financial Information Management (ESGs, SDGs, etc.)
Environmental Conservation Initiatives
In light of CO2 savings achieved under Scope 1 and 2 in FY 2022, set higher targets of them in this August (Chart1)
Continues to promote initiatives to reduce CO2 Scope 3 Category 11, the target of which was newly added in FY 2023

（Chart 1） CO2 Reduction Targets
BenchmarkCO2 Emission

Scope 1+2

Unit

Amount ofFYEmission

t-CO2/Intensity

100 mil yen *Emissions

1990

30

t-CO2

1990

74,193

t-CO2

2021

693,428（Building Construction
Totalonly）

AmountScope 3, Category 11(In-house + out-sourced
designed buildings)

Total
AmountResults

TargrtFY2022

FY2030FY2050

13.4

12.0

3.0

▲55％

▲50％

▲90％

17,00016,322

3,710

▲77％

▲78％

▲95％

647,430

589,414450,728

▲8％

▲15％

▲35％

In light of the FY 2022 results, thetargets of Scope 1 and 2 for FY 2030
and 2050 set higher in this August.

* Emissions per 100 million yen of completed construction

3530

30

13.4

2520（t-CO2/100 mil yen）

Target(intensity)▲60％Target(Total Amount)

▲78％

74

1510140

FY2022
ResultsEmission in the Benchmark Year

Target(Total Amount)

100
80

40
20

50120

60

912

Total Amount：74（thousand t-CO2）

▲90％

▲95％

15Emission Intensity：30（t-CO2/100mil yen）

Target(intensity)

FY 1990
年度
Benchmark2000 2005 2010 2015

1716

2022

2030

2040

42050

09CO２Emission Total Amount（thouzandｔ-CO2 )CO２Emission Unit (ｔ-CO2/100 Mil yen)（Chart 2） Targets for reducing CO2 at construction sites (Scope 1 and 2)(Reference)
Scope１：CO2 generated from our business activities
Scope２：CO2 of indirect emissions from the use ofelectrics and gases
Scope 3
：CO2 emitted from the building after delivered toCategory 11 customers and during the use of buildings

2. Progress of the Medium-Term Business Plan

（3）Non-Financial Information Management (ESGs, SDGs, etc.)
CSR Activities
Supporting sports for the people with disabilities as part of CSR activities.
Sponsored Japan Dream Baseball League (baseball players with disabilities) since 2018.
In September, also sponsored the world championship held for the first time in five years.
Continued sponsorship of Japan Blind Tennis Federation, which started sponsoring in 2018

Asanuma’s CSR Policy

In order to realize the ideal of society as a member of society,every employee is aware of his/her responsibilities and actively promotes social contribution activities.

WORLD DREAM BASEBALL 2023

6th ‘Maido-okini! Friendly Cup’

10

3. Topics

Two of three buildings
were constructed by us

The article regarding ‘Gemba Trainer’ on May 31, 2023by Architectures, Constructions & Engineerings NewsThe article regarding the warehouse constructions on November 6, 2023
by Architectures, Constructions & Engineerings News11

With Our Proud History,
Creating a Desirable Future

FY2023
Contacts
Corporate Communications Division
Tel 06-6585-5500

CSR Report 2023
(in Japanese)

Fax 06-6585-5556

https://www.asanuma.co.jp/csr/report.html
Disclaimer: This document has been translated from the Japanese original for reference purposes only. In theevent of any discrepancy between this translated document and the Japanese original, the original shall prevail.