ASANUMA CORPORATION
Financial Results Briefing for the Fiscal Year Ended March 2022
May 20, 2022

Event Summary[Company Name]ASANUMA CORPORATION[Company ID]

1852-QCODE[Event Language]

JPN[Event Type]Earnings Announcement[Event Name]

Financial Results Briefing for the Fiscal Year Ended March 2022

[Fiscal Period]

FY2021 Annual[Date]

May 20, 2022

[Number of Pages]

20[Time]

13:30 – 13:51(Total: 21 minutes, Presentation: 20 minutes, Q&A: 1 minute)[Venue]Kabutocho Heiwa Building 3F, 3-3 Kabutocho Nihonbashi, Chuo-ku, Tokyo
103-0026 (Hosted by The Securities Analysts Association of Japan)[Venue Size]

145 m2[Participants]

3[Number of Speakers]

4
Makoto Asanuma
Morio Yamakoshi
Seiichiro Ishihara
Yoshimichi Yagi

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Representative Director, Senior Managing
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Executive Officer
Executive Officer

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Presentation
Moderator: We will now begin the financial briefing session of ASANUMA CORPORATION for the fiscal year
ended March 31, 2022.
First, I would like to introduce today’s attendees. Mr. Makoto Asanuma, Representative Director, CEO.
Asanuma: I am Asanuma. Thank you.
Moderator: Mr. Morio Yamakoshi, Representative Director, Senior Managing Officer.
Yamakoshi: I am Yamakoshi. Thank you.
Moderator: Mr. Seiichiro Ishihara, Executive Officer.
Ishihara: My name is Ishihara. Thank you.
Moderator: Mr. Yoshimichi Yagi, Executive Officer.
Yagi: I am Yagi. Thank you.
Moderator: President Asanuma will give his explanation now. We will have time for questions and answers
after the presentation.
Let’s start right away.

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Asanuma: Hello, everyone. I am Makoto Asanuma, President. Thank you very much for taking time out ofyour busy schedules to attend today's financial results briefing. From the viewpoint of preventing the spreadof COVID-19, we would appreciate your understanding that this is a brief explanation of key points only.
Today, I would like to explain our business performance and the progress of each measure in the three-year
medium-term plan.
Please see page three first. I would like to explain our results for the fiscal year ended March 31, 2022, andour revised plan for the fiscal year endingMarch 31, 2023.
On the left side of the table, for the fiscal year ended March 31, 2022, orders received totaled JPY136.6 billion,
an increase of JPY4.5 billion from the mid-term plan. The gross profit margin on orders received has been
secured, and the Company continues to receive selective orders.
Under this, the amount of completed construction work was JPY134.4 billion. The amount decreased by JPY4.6
billion from the mid-term plan due to delays in the start of construction and other factors.
Gross profit from completed construction was JPY13.1 billion. Operating income was JPY4.8 billion. Net
income was JPY3.7 billion. Both figures were approximately JPY500 million less than the mid-term plan due toa decrease in the amount of completed construction contracts.
Regarding dividends, we plan to pay JPY363 per share as per the medium-term plan, even though net income
for the current fiscal year fell short of the plan.

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On the right side of the table, for the revised plan for the fiscal year ending March 31, 2023, orders received
are JPY141.6 billion. This is almost as expected.
Completed construction work totals JPY143.3 billion. The amount of construction work carried over exceeded
expectations and will be JPY8.8 billion higher than the mid-term plan.
Gross profit from completed construction was JPY14.3 billion. The gross profit margin will be lower than
expected, partly due to soaring material prices, and although the amount of completed construction work will
increase, it will be JPY600 million less than the mid-term plan.
Under the three, operating income was JPY5.6 billion. The increase in SG&A expenses due to salary increases
will result in a decrease of JPY0.9 billion compared to the mid-term plan.
Net income was JPY4.1 billion, a decrease of JPY0.3 billion from the mid-term plan.
The dividend is JPY191. In August, one share will be split into two shares, resulting in JPY191, half of the JPY382,
which is substantially in line with the medium-term plan.

Please see page four. We will explain our management indicators: operating margin, ROE, and ROIC.
Based on the business results I mentioned earlier, in both the actual results for the fiscal year ended March
31, 2022, and the revised plan for the fiscal year ending March 31, 2023, each indicator will be below the midterm plan, but ROE will exceed the cost of shareholders' equity and ROIC will also exceed the cost of capital.
We hope to achieve each of these indicators in the fiscal year ending March 31, 2024.

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Please refer to page five. Let me explain about architectural renewals.
We have set a goal of increasing our share of consolidated operating income from architectural renovation toat least 35% by the fiscal year ending March 31, 2024.
At the bottom of the table shown here, for the fiscal year ended March 31, 2022, architectural renovations in
total will account for 28.1% of the market share, and the revised plan for the fiscal year ending March 31,
2023 is 29.3%.
In the fiscal year ending March 31, 2024, we expect 35.9%, thanks to the sales promotion of ReQuality, which
we will discuss later, and the contribution of a subsidiary acquired in January this year.

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Next, please see page six.
Here we would like to explain the main measures of the three-year medium-term plan.
In our three-year medium-term plan, which we started last April, we have set a challenge to change theexternal environment, and have set forth measures to respond to the long-term shrinkage of domestic
construction investments; domestic maintenance and repair investments, which remain firm due to the aging
of infrastructure and building structures; the decline in the productive labor force in the construction sector;
non-financial management activities; and changes in momentum for improving corporate reputation throughESG/SDGs and other activities.
On the next page, I will explain the progress of each of these measures.

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Please refer to page seven.
Here we would like to explain how we are strengthening our efforts in the renovation business in the ASEAN
region.
In the fiscal year ended March 31, 2022, we acquired EVERGREEN, a Singapore-based building maintenance,electrical and equipment installation company, as a subsidiary.
In Thailand, we established two companies and started a highway and bridge maintenance business.

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Please refer to page eight.
I would like to explain about promoting ReQuality, our renovation brand strategy.
In line with ReQuality's concept of recycling that is better for people and the planet, the renovation of the
Nagoya branch made extensive use of natural materials such as soil and wood.
In addition, the project achieved an 85% reduction in CO2 emissions compared to building a new construction.
Moreover, we were able to reduce operational energy consumption by 52% compared to before the retrofit,
and we were able to obtain ZEBready certification.
The building is also scheduled to receive WELL certification, which evaluates buildings based on health andcomfort. This will be the first time in Japan that an entire 30-year-old building has been renovated andcertified.
We are currently promoting sales of ReQuality orders.

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8Next, please refer to page nine.
Here we will explain the expansion of our seismic technology and the advancement of seismic isolation andvibration control technology.
We are currently working on improving new construction methods and developing design methods for large
distribution warehouses, which is our specialty.
The RC beam S hybrid construction method utilizes the characteristics of steel construction to reduce thenumber of beams and is expected to improve earthquake resistance while securing large spaces.
The development of design methods using energy methods to optimize vibration control structures has
enabled cost reductions while increasing the efficiency of the vibration control effect.
We will continue to advance these technologies and use them as a weapon to further strengthen our sales
and marketing of orders for distribution warehouses and other facilities.

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9Next, please see page 10.
Here we will explain how we promote the use and introduction of ICT-related systems.
In on-site construction, VR technology has been introduced from the planning stage, and has been effectivein identifying buried gas and water pipes that are difficult to grasp from drawings; confirming the positional
relationship between steel pipe piles and the supporting strata; and sharing construction procedures toprevent accidents.

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10Next, please refer to page 11.
We would like to explain about the promotion of our collaborations with our partner companies.
Recently, the shortage of labor due to the aging of workers has become an urgent issue. Here, we will explainsome of the major issues that we are working on with our partner companies.
First, the Construction Career Upgrading System. The Construction Career Up System, which is being
promoted throughout the construction industry, is a system designed to improve the compensation of
construction technicians. We are promoting and supporting registration for subcontractors and construction
technicians.
Next, regarding the introduction of the CI-NET system. The CI-NET system is a system that enables efficientexchange of work such as contracts, estimates, workmanship, and billing over a network, and we are in theprocess of networking contracts as the first step.
Next, we are promoting Asanuma Meister. Asanuma Meister is a program in which an Asanuma Meister isselected from among the heads of the workplaces who have been active for many years and whose
achievements, contributions and personality are particularly outstanding. Those who are chosen are awarded
an incentive. As of March 31, 2022, 218 people have been appointed.
Next, I would like to talk about the workshop productivity improvement measure awards and presentations.
Last year marked the third time that the award system for productivity improvement measures taken incollaboration with partner companies at each worksite was presented. The total number of applications to
the program has increased year by year to 77.
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11Next, please see page 12.
Here we would like to explain the main initiatives of the Sustainability Promotion Committee.
We are committed to low-carbon, resource- and energy-saving initiatives as part of our global warming
prevention activities, as Eco-Friendly ASANUMA 21.
As part of these activities, the Sustainability Promotion Committee was established last November, and thiscommittee is promoting efforts to promote environmental management and TCFD-related activities.
In the future, we will also consider setting KPIs for sustainability management and investing funds related tothese KPIs, ensuring diversity in core human resources, and promoting human resource development,
promoting measures that take human rights into consideration, and promoting digital technology related toconstruction in the DX Promotion Committee.

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12Next, please see page 13.
Here we will discuss CO2 reduction and decarbonization technologies at the construction stage.
Last year, we began introducing 100% renewable electricity, and we have decided to introduce it at all worksites where construction will begin this year.
In addition, guidelines for global warming prevention measures at workplaces have been revised andmeasures are being strengthened.
All of our design-build projects incorporate evaluations based on a Comprehensive Assessment System for
Building Environmental Efficiency, or CASBEE, and we aim to achieve an A-rank rating of 50% or higher.
The introduction of proposals based on environmental simulations and the introduction of environmentallyfriendly concrete is part of our commitment to decarbonization and further development.

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Next, please see page 14.
Here we would like to explain the reduction of policy shareholdings.
We hold listed shares as policy stockholdings, and as a criterion for determining the appropriateness ofholding such shares, we reduce them when the benefits of dividends and gross construction profit are lessthan the cost of shareholders' equity.
Our target was to reduce the balance of policy shareholdings to less than 10% of consolidated net assets by
the end of March 2022, and we have reduced it to 8.8%.
The benefits, dividends to market value and construction income for the year ended March 31, 2022, are32.9%.

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Please refer to page 15.
Here is an explanation of the financial input.
Our basic policy is to allocate funds generated by profits to investments and shareholder returns.
In light of the fixed amount of investment in M&A in the ASEAN region, we have reexamined and reviewed
our overall capital investment plan, reduced the amount of investment from JPY8 billion to JPY6.3 billion, andadded the reduced amount to the dividend.
The total amount for the fiscal year ended March 31, 2022, was JPY4.4 billion, consisting of JPY1.5 billion fortechnology development and ICT-related investments and JPY2.9 billion for investments related to new
business areas and M&A.
Regarding shareholder returns, it is explained on page 16.

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Now please see page 16.
I would like to explain our shareholder return policy.
In line with the revision of the investment plan I just mentioned, we have revised our consolidated dividend
payout ratio from more than 50% to more than 70% as a means of returning profits to shareholders.
In addition, each share of our common stock held by shareholders of record as of July 31, 2022, will be split
into two shares on August 1, 2022.
Regarding the post-split period, the Company plans to pay a dividend per share of JPY191 for the fiscal year
ending March 31, 2023, and JPY197.50 for the fiscal year ending March 31, 2024, as per the revised mid-term
plan.

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Please refer to page 17.
Here, for the last time, I would like to share with you an article that describes the initiatives of the measures
I have mentioned.
On the left are magazines and other media that have covered the renovation of the Nagoya Branch, as
explained in ReQuality, the promotion of our renewal brand strategy.
The article to the right is an article that discussed the introduction of 100% renewable energy at the worksite.
That is all for today's explanation and report. Thank you very much for your attention.
Moderator: Thank you very much for your briefing.

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Question & Answer

Moderator [M]: We will now begin the question-and-answer session.
Please note that the scripts of this briefing, including the question-and-answer session, will be published. Your
name and company name will be included in the scripts if you choose to include them in your statement. If
you wish to remain anonymous, please refrain from providing them at the time you ask your question, thankyou.
Alright, I would like to take questions from the audience.
There seem to be no questions.
There being no further questions, this concludes today's financial results briefing.
Thank you, President Asanuma, for your explanation. Thank you again to all of you for joining us today.
[END]______________
Document Notes
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Speaker speech is classified based on whether it [Q] asks a question to the Company, [A] provides ananswer from the Company, or [M] neither asks nor answers a question.
This document has been translated by SCRIPTS Asia.

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