Financial Results Briefing for
Fiscal Year Ended March 31, 2021

With Our Proud History,
Creating a Desirable Future

ASANUMA CORPORATION
Securities Code :1852

This material contains forward-looking statements
regarding the Company's business performanceand future 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 Future1

Table of Contents
Page

Item

Ｐ3

Business Environment

Ｐ4～

Previous The Three-Year Medium-Term Plan
Status of Consolidated Financial Results

Ｐ6

Previous The Three-Year Medium-Term Plan
Return to Shareholders Dividend payout ratio plan

Ｐ7～

Previous The Three-Year Medium-Term Plan
Fund Injection Plan

Ｐ13～

New The Three-Year Medium-Term Plan
Long-term Vision and Positioning

Ｐ15～

New The Three-Year Medium-Term Plan
①～⑥

Ｐ21

Corporate Governance System

Ｐ22Topics2

Business Environment

Constructionindustry

In the construction industry, public construction investment is expected toremain firm as the five-year plan for measures of BUILDING NATIONALRESILENCE has been decided since 2021. Regarding private construction
investment, however, we expect that capital investment will recover after
bottoming out in fiscal 2021 as the willingness of the manufacturingindustry returns to invest in major countries and the expansion of
COVID19 is expected to converge along with the progress in corona
vaccination. However, we need to closely monitor the delayed economic
recovery due to the delay in the convergence and the negative impact on
domestic economic activities due to intensified trade frictions between
the U.S. and China.
Unit: Trillions of yen

51.3

50.9

56.658.7

61.3

65.4

63.4

63.3

61.9

67.3

By Reserch Institute ofConstruction and Economy

3

Previous The Three-Year Medium-Term Plan
Status of Consolidated Financial Results ①○FY2018 and FY2019
・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
・The annual plan was revised downward from the mid-term plan in consideration of the impact of COVID19,
but other than orders received, the annual plan was achieved.

○3-year average・Operating income fell short of the medium-term plan, but orders received, net sales, and net income
achieved the medium-term plan.
( Hundred million yen)
Key Performance
Indicators(Consolidated)

FY2018
Mediumterm
Plan

FY2018Results

FY2019MediumtermPlan

Ordersreceived

1,300

1,537

Net sales

1,295Operatingincome
Profit attributableto owners of parent

Net profit

FY2019Results

FY2020MediumtermPlan

FY2020Results

Mediumterm Plan
3 years
Average

FY2020PlanResults andPlan
Average

1,330

1,483

1,360

1,261

1,206

1,330

1,408

1,357

1,366

1,415

1,389

1,345

1,389

1,350

1,387

49.0

57.0

62.0

66.0

72.0

52.5

52.9

61.0

58.6

32.0

41.8

40.0

43.0

47.0

40.2

41.4

39.7

42.1

(Figures in the medium-term plan are as of May 11, 2018)4

Previous The Three-Year Medium-Term Plan
Status of Consolidated Financial Results ②
Major Management Indicators in the Medium-Term Plan
(Consolidated for Fiscal 2020, the Final Year)
Operating income margin

Over 5%Return on Equity (ROE)Over 10.0%achieve

Return on Invested Capital

Exceed the cost of capital in all three years

achieve

Equity ratio

40% level

achieve

Key Performance
Indicators(Consolidated)

FY2018FY2019Medium-Term
Plan

FY2018Results

Operatingincome margin

3.8%

Return onequity(ROE)FY2020Medium-Term
Plan

FY2019Results

4.2%

4.6%

9.0%

11.5%

Cost of capital(WACC)
Return on
Invested Capital(ROIC)
Cost ofshareholders'equity5.0%
7.0%

Equity ratio

36.0%

7.3%

Miss

March ,2021

Medium-Term
Plan

FY2020
Plan

4.7%

5.2%

3.9%

3.8%

10.6%

11.3%11.4%

10.0%

10.3%

5.1%

5.0%

6.0%

5.0%

6.0%

6.2%

8.1%

8.4%

9.1%

9.2%

7.0%

7.0%

7.4%

7.3%

8.0%

7.3%

8.0%

FY2020Results

8.0%

Interest expense
Interest-bearing debt

11,026

Cost of debt

0.96%

10-year JGB yield

0.104%

β value

1.138

Market Expected Yield

7.00%

Cost of shareholders'equity7.95%

Market capitalization

36,094

Tax rate

0.304

Cost of capital(WACC)

36.6%

41.0%

38.0%

47.0%
543.0%

45.0%

106

6.25%

(Figures in the medium-term plan
are as of May 11, 2018)

Previous The Three-Year Medium-Term Plan
Return to Shareholders Dividend payout ratio plan
○May 2018: Dividend plan at the time of announcement of medium-term plan (initial)○May 2019: Upwardly revised dividend plan (increased FY2018 dividend by ¥53)
○May 2020: Upwardly revised dividend plan (increased FY2019 dividend by ¥8)○Aug 2020: In light of the impact of COVID-19, the FY2020 plan was revised downward from the mediumterm plan, and the FY2020 dividend plan was reduced by ¥42○May 2021: Upwardly revised dividend plan (increased FY2020 dividend by ¥7)○Purchase of treasury stock・ Shares purchased 313,600 shares
・ Purchase costs of shares ￥999,933,700・ Period from November 12, 2018 to January 16, 2019

○Cancellation
・ 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

6

Previous The Three-Year Medium-Term Plan
Fund injection Plan
Planning on investments of ¥20 billion
during the medium-term plan (three years)
MediumTerm Plan

Investment
Results◆ Investments in technology and systems¥5 billion¥2 billion◆ Investing in New Domains (Overseas and New Fields)¥5 billion¥1.5 billion◆ Switch to cash payments to subcontractors tostrengthen partnership¥10 billion¥14.5 billion

Total¥20 billion¥18 billion■ Investment plan

■ Application of funds

7

Investment Plan
Technology and Systems ①
Expansion and renovation of the Technical Research Institute(opened at the end of March 2019)1Expansion of training areas・ Training for young employees and engineers at partner companies,and hands-on training

2

Advancement of seismic isolation and vibration control technologies
・ Seismic damping structure equipped with an earthquake monitoring
system・ Updating test equipment

3

1 Training area of existing building

Installation of a multi-purpose experimental space・ Large experimental space for all-weather response
2 Seismic dampers
in additional buildings

3 Multi-Purpose Experimental
Space Using Natural Lighting
in Expansion Buildings

Full view

8Investment Plan
Technology and Systems ②
Developed to pass on skills of skilled workers at work sites and improve productivityDetails

Characteristics

EffectSkill operation analysis

Mount GPS cameras and sensors to a skilled
person, or analyze movies, behaviors, andsounds as data through movie shooting.

Inheritance ofskills

Infrastructurecommunication
management

Promoting the implementation andstreamlining of production management atremote sites through the use of
telecommunications systems.

Productivity
improvement

Infrastructure
Communication
System (Ai-TEC)

Wearable camera（Ai-LOGGER)
9Investment Plan
Technology and Systems ③
Restructuring of the core system

Comprehensive cloud computing for sales, integration and design, accounting,and personnel payroll systems
Updating of various mission-critical systems in the management division

Sales, integration, and design
SystemRestructuring of cloud-based business management
Infrastructure Promoting Operational Efficiency
Accounting system

Personnel payroll system

Restructuring system
11

Investment Plan
Technology and Systems ④
Launched "ReQuality", a renewal business concept.
Considering not only the human environment, but also theglobal environment in the future, "ReQuality" recycles
resources and improves the patrol of people who spend there.
ASANUMA CORPORATION's concept is to create such a better
circulation through its renewal business.
"GOOD CYCLE PROJECT" , a recycling-oriented project, waslaunched on April 1, 2021 under the theme of "Good Circulationfor Humans and the Earth.""GOOD CYCLE PROJECT" will be deployed by the following four actions.
①"GOOD CYCLE PRODUCT": Cloud funding(Reuse of residual materials from Yoshino cedar in Nagoya Branch Office renovation work)②"GOOD CYCLE SERVICE": Renewal business(In addition to making Building Construction to buildings
by leveraging our expertise and technological expertise,
we aim to become a partner that will serve our customers
throughout their lifecycles.)survey anddiagnosis

planning anddesign③“GOOD CYCLE BUILDING”: Renewal of Nagoya Branch Office(Reproducing the better circulation proposed by ASANUMACORPORATION)

maintenanceconstruction④"GOOD CYCLE TALK": Opened owned media(To be serialized on the website on the theme of good circulationfor humans and the earth)11

GOOD CYCLE SERVICEGOOD CYCLE BUILDING

Investment Plan
New Domains
Strengthen overseas business〇 Acquisition of subsidiary
Corporate Name
Address
Business content

SINGAPORE PAINTS & CONTRACTOR PTE. LTD.
Singapore
Building painting and repair contracting

Percent ownership ofvoting rights

October 2018 Acquisition of 80% of shares
October 2023 Acquisition of 20% of shares

Reason for acquisition

Renewal business development in ASEAN regionplan〇 Efforts to Maintain Aging Expressways and Bridges in the Kingdom of Thailand
Using textile sheets, we are engaged in the maintenance business of aging
expressways and bridges in the Kingdom of Thailand.
In recent years, public infrastructure investment in the Kingdom of Thailand
has grown remarkably, and the demand for maintenance business has been
rising along with this.
It was also adopted by JICA's SDGs business support program, and we will
promote initiatives to contribute to SDGs goals 9 and 11.
12

New The Three-Year Medium-Term Plan
Long-term vision

Company that continues to boldly challenge
and demonstrate its uniqueness in response
to dramatic changes in the external environment

By promoting the environmentally friendly renewal brand "ReQuality"and expanding the renewal business in ASEAN region,
we will renew our greatest strengths and continue
to grow stably and increase corporate value overthe long term regardless of any environmental changes.

13New 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

Deep dive into theunique characteristics
of ASANUMACORPORATION

2021

2022

2023

Toward the Realization of the Long-Term Vision
Stage of demonstration of the uniquecharacteristics of ASANUMA CORPORATION

2024

The Three-Year Medium-Term Plan
(FY2021-FY2023)
14

2025

2026

2027 ・・・ ・・・ ・・・New The Three-Year Medium-Term Plan①― 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
and know-how based on its commitment to manufacturing up to honesty
and a spirit of bold challenge without fear of change

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

Take on thechallenge
Changes in theexternalenvironment

1. Expansion of the accumulation and utilization of cost data by the estimation and construction
departments.
2. Continue to strengthen renovation business in ASEAN region.
3. Promoting ReQuality Renewal Brand Strategy.

★ Decline in the productive labor force in the construction sector
1. Enhance the proprietary “Ai-MAP SYSTEM”.
2. Strengthen recruitment of female and foreign employee.
3. Promote and expand CCUS (Construction Career Upgrade System).

Momentum to improve corporate reputation through non-financial management★ activities (ESG, SDGs, etc)

1. “Ｅ”： Promotion of “Eco-Friendly ASANUMA21”.
2. “Ｓ”： Obtaining WELL certification as part of “ReQuality”.
3. “Ｇ”： inue to reduce strategic shareholdings.
15

New The Three-Year Medium-Term Plan②
Set long-term targets for reducing ＣＯ２"ReduceＣＯ２ emissions per 100 million yen of construction by 50% by 2030 and 70% by 2050 compared to 1990"【Promotion of decarbonization】～Toward the Realization of a Decarbonization Society～１Promote decarbonization by extending the life of buildings
Utilization and development of technologies of building
diagnostics to extend the life of buildings

RM Retrofit Shear
Wall

２Promotion of decarbonization at the operation stage

Smooth Fill-Crete

ＣＣＢ-ＮＡＣ

３Promotion of decarbonization at theconstruction stage

Design and development of decarbonized buildings
・Promotion of energy conservation in designed properties
・Aim to be higher than CASBEE A ranking
・Aiming to obtain ZEB and WELL certifications①To reduce CO2 at the construction stage②Setting long-term targets for reducing CO2【Recycling of resources】【Coexistence with Nature and Society】～Toward the realization of a recycling-oriented society ～～Aiming for Harmonious Coexistence with Nature and Society～

１Reduction of construction by-products
２Recycling and proper disposal of construction
by-products
Promoting Recycling of Construction Byproducts andAppropriate Disposal

３Active Use of Recycled Materials

１Conservation of the Natural Environment
and Biodiversity①Preserving biodiversity②Utilization of local sediment２Control of harmful environmental impactfrom construction①Proper disposal of hazardous substances②Consideration for local environment

３Harmony with society
Reproduced crushed stones

Recycled steel①Collaboration with local communities②Contribution to Society
16

Cleaning Up Local
Communities

New The Three-Year Medium-Term Plan③
Performance Indicators(Hundred million yen)

Key Performance Indicators(Consolidated)

FY2020Results

FY2021Plan

FY2022Plan

FY2023
Plan

Plan 3 years
AerageOrders received

1,206

1,321

1,415

1,466

1,401

Net sales

1,389

1,400

1,355

1,373

1,376

Operating income

52.9

53.4

65.3

67.3

62.0

41.4

41.7

44.0

45.4

43.7

138

200

250300250

199200250300250

11.8

12.0

14.5

17.4

14.6

Profit attributable to ownersof parent
Net income
Domestic Building
Construction renewal
Orders received
Domestic Building
Construction renewal
Net sales
Domestic Building
Construction renewal
Operating income

17New The Three-Year Medium-Term Plan④
Performance Indicators○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 of shareholders' equity.
○The return on invested capital (ROIC) is projected to exceed the cost of capital(WACC) in all the three years of the plan period.
Key Performance Indicators(Consolidated)

Ratio of operating income
to salesReturn on Equity(ROE)

Cost of shareholders'equity
Return on Invested capital(ROIC)

Cost of capital（WACC）FY2020Results

FY2021Plan

FY2022Plan

FY2023
Plan

3.8％

3.8%

4.8%

5.0%

10.3％

10.1％

10.2％

10.0％

8.0％

7.0％
6.2％
18

8.0％

7.1％

8.3％
6.0％

8.3％

New The Three-Year Medium-Term Plan⑤

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

19

New The Three-Year Medium-Term Plan⑥
In order to realize our long-term vision,
we will invest ¥8 billion in three years
after strictly assessing the effects of our investments.

◆ 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 ofconcession business, etc.)※Investment effect
Increase in operating profit after tax( compared to FY 2020 in the FY 2023 plan )Investment amount
Investment plan amountin previous medium-term+in new medium-term plan20

14.4×0.7
==
115

8.7%

＞

Cost of capital
6.25%

Corporate Governance System
To further strengthen corporate governance
Structure of the Board・ Ratio of outside directors: 1/3(after the General Meeting of Shareholders held in June 2020)
・ Including one female outside director

Composition of the Board ofCorporate Auditors

・ Ratio of Outside Audit & Supervisory Board Members: 3/4(after the General Meeting of Shareholders held in June 2020)
・ Including one female Outside Audit & Supervisory Board Member(after the General Meeting of Shareholders held in June 2021)

Analysis and Evaluation of theEffectiveness of the Board ofDirectors

・ Implemented using external organizations (since FY2019)

Operation of the Nominations
and Compensation Committee

・ Chaired by both committees Outside Directors
・ Ratio of Outside Directors: Majority
・ Number of days held (7 times FY2018, 9 times FY2019, 6 times FY2020)

System of compensatingdirectors

・Introduction of a restricted transfer stock compensation system(after the General Meeting of Shareholders held in June 2021)

Strengthening IR・ Briefings for institutional investors (scheduled to be held four times a year from 2021)
・ Briefings for individual investors (The first meeting was held in February of this year,
and will be held twice a year in the future)

Stockholdings

・ Listed Stock Suitability Evaluation Criteria
Reduced when the benefit of dividends and construction gross profit is less than"cost of equity"
・ Result of sale FY2018-FY2020 Total 3.09 billion yen (listed stocks)
・ Consolidated Net Assets Ratio23.4% as of end March 2018 ⇒ Reduced to 13.3% as of end March 2021
★ Reduce strategic shareholdings to less than 10% of consolidated net assets by the end of March 2022
21

Topics
Introducing recent topics
Kama City Office Building Each award
2020/11 JAPAN WOOD DESIGN AWARD
2020/ 3 Japan Concrete Institute Award
2021/ 4 Fukuoka Prefecture 木造・木質化建築 award

2020/11/2
Environmentally Conscious Concrete
2020/11/11 Presentation Meeting on Measures toImprove Workplace Productivity
2020/12/16 Automatic bar arrangement check system
2021/3/1
Ai-MAP SYSTEM

2020/12/16 The Daily
Engineering & ConstructionNewspaper

2020/11/11 The Daily
Engineering & Construction
Newspaper
2020/11/2
The Daily Engineering & Construction Newspaper

222021/3/1
The daily Kensetsu-Tsushin NewspaperWith Our Proud History,
Creating a Desirable Future

May 21, 2021
Contact
Corporate Communications Dept.
Tel 06-6585-5500

Fax 06-6585-5556