June 7, 2021
To all concerned parties
Name of Company:

ASANUMA CORPORATIONTokyo Stock Exchange,
Stock Exchange Listing:First Section
Stock Code:
1852
Representative
Title: Representative President
Name: Makoto Asanuma
E-mail:asanuma_ir@asanuma.co.jp

Our View on the ISS Report
ASANUMA CORPORATION (hereinafter referred to as "the Company") has published a report that stated that
Institutional Shareholder Services, Inc. (hereinafter referred to as "ISS") endorsed the proposal of the Company's
shareholders at the 86th Annual General Meeting of Shareholders, "Proposal 7: Appropriation of Surplus " (hereinafterreferred to as "the Proposal") The report is supplemented as follows.
Our Board of Directors' opinion on Proposal 7 is as described in the Notice of Convocation of the Annual General
Meeting of Shareholders. We would like our shareholders to understand our opinion on this Proposal by our Board ofDirectors meeting. We would like to explain our opinion on this Report to our shareholders as follows.
We look forward to the continued understanding of our shareholders.

1. Outline of ISS Report
Proposal 7, " Appropriation of Surplus "ISS recommends the Proposal that, given our holdings of cash and investment securities, additional dividend
payments are feasible without affecting the financial condition of the Company.
2. Our view
Proposal 7, " Appropriation of Surplus "The Board of Directors of the Company opposes this proposal.
With respect to the appropriation of surplus, the Company, as its basic policy of shareholder return, considers
the return of profits to shareholders as one of the most important initiatives, and to this end, allocates dividends
in line with its business performance by developing new technologies that are necessary for the futureexpansion of the business, among others, while striving to sustain and reinforce the Company’scompetitiveness.
In the previous Three-Year Medium-Term Plan (covering the fiscal year ended March 31, 2019 to the fiscalyear ended March 31, 2021), the Company set the distribution policy at “30% or more consolidated dividend
payout ratio in the fiscal year ended March 31, 2019, 40% or more in the fiscal year ended March 31, 2020,
50% or more in the fiscal year ended March 31, 2021.” In the fiscal year ended March 31, 2019, the Company
paid a dividend of 153 yen per common share (a consolidated dividend payout ratio of 30.3%) and 216 yenper common share (a consolidated dividend payout ratio of 40.5%) for the fiscal year ended March 31, 2020.
At the 86th Annual General Meeting of Shareholders scheduled for June 2021, the Company will submit aproposal for a payout of 257 yen per common share (a consolidated dividend payout ratio of 50.0%) for thefiscal year ended March 31, 2021.
In addition, under the current Three-Year Medium-Term Plan announced in April 2021 (covering the fiscalyear ending March 31, 2022 to the fiscal year ending March 31, 2024), the Company has set a dividend policyof “maintaining a consolidated dividend payout ratio of at least 50%, which is the highest level in theconstruction industry,” and plans to pay a dividend of 260 yen per common share (a consolidated dividend
payout ratio of 50.2%) in the fiscal year ending March 31, 2022, 274 yen per common share (a consolidateddividend payout ratio of 50.2%) in the fiscal year ending March 31, 2023, and 282 yen per common share (aconsolidated dividend payout ratio of 50.0%) in the fiscal year ending March 31, 2024.
With regard to the utilization of funds generated from annual profits remaining after the payment of thedividends, while maintaining the minimum required cash and deposits balance, under the previous Three-Year
Medium-Term Plan, we plan to invest 18.0 billion yen over the three-year period in initiatives such as“realization of 100% cashing payments to partner companies," "expansion and renovation of technical researchlaboratories,” “full conversion of core systems to cloud computing,” and “building a new renewal brand.” Inthe current Three Year Medium-Term Plan, we plan to invest 8.0 billion yen over the three-year period in
initiatives such as “M&A of ASEAN regional renovation companies,” “sophistication of productivity
improvement systems,” and “development of environment-related technologies.”
The Company believes that such utilization of funds contributes to stable growth of the Company’s businessperformance and is essential to ensuring stable returns to shareholders.
Therefore, the Board of Directors of the Company judges that this Proposal, which seeks a 100% dividend
payout of the profit for the 86th Fiscal Year, neither conforms to the Company’s basic policy of shareholder
return or capital utilization policy, nor does it contribute to enhancing the Company’s corporate value.
Therefore, the Board of Directors of the Company opposes this Proposal.
End of document