ASANUMA CORPORATIONWith Our Proud History
Creating a Desirable Future

Corporate briefings
March 11 , 2023 (Saturday)
Security Code : 1852

Today's contents
１.

History２.

Founding Philosophy

３.

Consolidated Financial Results

４.

Progress of The Three-Year Medium-Term Plan

５.

Eco-Friendly ASANUMA21

6.

Promoting Sustainability

7.

Corporate governance

8.

Topics９.

Social contribution and other activities

10.

Corporate Data

1

Orders and SalesHistory

1882

Yoshino Shihan School

1892

1896

Nara Prefectural
Koriyama
Jr. High School

Nara Prefectural
Unebi Jr. High School

1912

Rokujuhachi Bank
head officeWorld Expo.
1970 OsakaLaos Hall2

Founding Philosophy
Founding Philosophy
Under the founding philosophy of "Spirit of Harmony" and "Sincerity,
Enthusiasm and Creativity", we are committed to faithful manufacturing inaccordance with the spirit of “Good work leads to more works” andcontribute to the promotion of social safety, security, and comfort.
"Sincerity, Enthusiasm andCreativity""Spirit of Harmony"83

Consolidated Financial Results

Orders and Sales(Unit:100 million yen)

1,537

1,482

1,357
1,365
1,206

4

1,414

1,389

1,354

Major Measures in the Three-Year Medium-TermPlan—The long-term vision—”We aim to be a company that demonstrates uniqueness and continues to boldly take onchallenges in response to dramatic changes in the external environment.”― Basic Policy ―"Challenge change" by deeping dive into the unique characteristics of ASANUMA CORPORATION

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

Take on thechallenge
Changes in theexternalenvironment

1. Promoting "ReQuality" Renovation Brand Strategy.
2. Upgrading of renewal technology
3. Continue to strengthen renovation business in ASEAN region.
★ Decline in the productive labor force in the construction sector.
1. Promoting cooperation with subcontractors
2. Promoting DX★

Momentum to improve corporate reputation through non-financial
management activities (ESGs, SDGs, etc.)
1. Promotion of "Eco-Friendly ASANUMA21".
2. Promoting Sustainability
3.Corporate governance5Progress of the Three-Year Medium-Term Plan(Unit:100 million yen)

FY 2022

FY 2021

Major Indicators(Consolidated）

Mediumterm
Plan

Results

Orders received

1,321

Completed
construction
contracts

FY 2023

YOY

Mediumterm
Plan

Modified
Plan

３Q
Results

Progress
Rate

Mediumterm
Plan

1,365

44

1,415

1,416

1,058

74.7%

1,466

1,390

1,344

△45

1,345

1,433

1,021

71.3%

1,363

Gross profit

136

131

△4149

143

9969.4%

151

Rate

9.8%

9.8%

―

11.1%

10.0%

9.7%

―

11.1%

SGA cost

8586―

8790

70

77.8%

87

Operating income

5348

△565

56

3562.7%

67

Profit attributableto owners ofparent

4237△4444128

69.6%

45Dividend¥363

¥363―

＊¥191

＊¥191

―

―

Dividend payout
ratio

70.2％

78.1％

7.9P――（¥382）（¥382）

70.1％

74.8％

＊¥197.5（¥395）

70.4％＊We split each common share at a rate of 2 shares on August 1, 2022. Therefore, for the year ending March 2023,
the expected amount of a per-share divide is calculated based on after the stock split.

6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.
FY 2021

FY 2022

FY 2023

Mediumterm
Plan

Results

YOY

MediumModified
term
Plan
Plan

YOY

Mediumterm
Plan

Ratio of operating
income to sales

3.8%

3.6％

△0.2P

4.8%

3.9％

△0.9P

5.0%

Return on Equity(ROE)

10.1％

9.0％

△1.1P

10.2％

9.5％

△0.7P

10.0％

Cost of shareholders'equity

8.0％

7.5％

△0.5P

8.0％

7.5％

△0.5P

8.0％

Return on Invested
capital (ROIC)

7.1％

6.4％

△0.7P

8.3％

7.3%

△1.0P

8.3％

Cost of capital（WACC）

6.0％

6.1％

0.1P

6.0％

6.0％

—

6.0％

Key Performance
Indicators(Consolidated)

7

Investments and Shareholder Returns
Disclosed on November 18, 2021
Shareholder returns increased due to a reduction in the initial funding plan following areview and revision of the overall funding plan, including investments associated with,and investments related to technology development and ICT-related investments, inlight of the finalization of a portion of the investment amount for "investments related
to new domains (Expansion of ASEAN regional renewal business)."
Beforecorrection
3 years total

Aftercorrection
3 years total

FY2021Results〇Technology and research, ICT
・Upgrading of renovation technology
・Promoting DX¥3 billion¥2.9 billion¥1.5 billion〇Investment related to new areas
・Expansion of ASEAN regional renewalbusiness¥5 billion¥3.4 billion¥2.9 billion

Total¥8 billion¥6.3 billion¥4.4 billion

Beforecorrection

Aftercorrection

FY2021Results

Over 50%

Over 70%

78.1％Consolidated dividend payout ratio
8Current Status of Renovation
TargetIn FY2023, operating income from the Building Renovation Businesswill increase to 35% of consolidated operating income.

Building renovation total(Unit:100 million yen)

FY2021

FY2022

FY2023Results

３Q Results

Medium-Term Plan

30.0％

30.4%

35.9％

Orders received

166148300NET SALES

170

114300Operating income

15.0

2.0

17.4

Share of operating income

31.1％

8.1%

25.8％

Orders received

257266NET SALES

237466

Operating income△0.5

7.86.8

Share of operating income

△1.1％

22.3%

10.1％

Share of operating income

Domestic building renovation

ASEAN building renovation

9Promoting "ReQuality" Renovation Brand Strategy『ReQuality』Nagoya Branch Renovation PJ

・Much use of natural materials (soil and wood)

Healthcare Space
Retrofit

Reception set made by upcycling waste materials (stone)

Ring soil block using surplus soil
from suburban workshops

・ReduceＣＯ２ emissions by 85% compared to rebuilding as a new building.
・Acquired ZEBready certification, reducing energy consumption by 52% compared topre-renovation.
・Evaluate the health and comfort of building users Obtain WELL Certification Gold. (It was thefirst time in Japan to renovate the entire 30-year-old building and receive official certification.)10Upgrading of renovation technology①Expansion and renovation of the Technical Research InstituteExpansion of training areas① ・ Training for young employees and engineers atpartner companies, and hands-on training
Advancement of seismic isolation and vibration
control technologies② ・ Seismic damping structure equipped withan earthquake monitoring system
・ Updating test equipment①Training area ofexisting building

Installation of a multi-purpose experimental space③ ・ Large experimental space for all-weatherresponse④

Promote the use and introduction of ICT related
systems（BIM,CIM,3D,VR)②Seismic dampers
in additional building③Multi-Purpose Experimental Space Using
Natural Lighting in Expansion Buildings

Full view

11Upgrading of renovation technology②
Proposal for seismic strengthening

Reducing Carbon Emissions through Extension of life of thebuildings〇Renovation to seismic isolation and damping
structures〇Technological capabilities for extending
product life

Construction is possible while continued use of buildingsReinforcement using seismic
isolation dampers

Reinforcement by damping
structure〇Earthquake-resistant construction witha wide range of construction methods

Reinforcement from the exterior walls of buildings enables
construction tailored to building applications

・Controlling concrete cracks (inducing joints) and preserving clean
conditions without cracking walls or floors, contributing to longer
life (CCB method)

CCB method

Floor CCB method

・Material (PRS) to disperse cracks in joints of wall surface appliedwith CCB method to minimize wrinkles on wallpaper stuck on wallsurface

PRS joint filling method

Dispersed cracks

PRS joint

PRS joint filler

12Reinforcement of renovation efforts in ASEAN(Unit: 100 million yen)

Current situation of Foreign subsidiaries
SINGAPORE
FY2022 ３Q

ResultNameAcquisition

Description of Businesses

SINGAPORE PAINTS &CONTRACTOR PTE. LTD.

October
2018

Building painting andrepair work contractors

34

23

0.3

0.2

EVERGREEN ENGINEERING＆CONSTRUCTION PTE. LTD.

January2022

Maintenance services,Electrical engineering
services

3850

10.22.4

OrdersConstruction Operatingcontracts
incomeTHAILANDJICA SDGs Business Verification Survey With the Private Sector for Long LifespanInfrastructure Reinforcement Technology Utilizing Carbon Fiber Sheet
Co-participating company：ASANUMA CORPORATION , Toray Industries, Inc. , Toray International, Inc.
・Adopted for JICA SDGs business-support project in 2021.
・Concluded a contract for the business in January 2023.
・At present, our subsidiary is preparing for the reinforcement work of bridges and elevated bridges for
Jurisdiction of Department of Highway of Thailand.
Name

Description of Businesses

Incorporation

Thai Asanuma Holdings Co.,Ltd.

Holding company

June 2021

Thai Asanuma Construction Co.,Ltd.

Renovation businessJuly 2021

1013Goodwill

Promoting cooperation with subcontractors
Promotion of theConstruction Carrier-UpSystem (CCUS)〇To improve the attractiveness of the construction industry, this system aims toimprove the treatment of construction technicians, clarify the career paths,
and visualize construction capabilities.
・Support Secretariat established・Implementation of online briefing sessions

Promotion of Asanuma
Meister・Selected as Asanuma Meister among the chiefs of subcontractors.
・Provision of incentives to improve wage-related compensation.
・Registration in CCUS will be added from the license renewal ofcertification in the next fiscal year as the target requirement.

Training withsubcontractors〇Conducted training sessions for engineersfrom members of the Yayoi Association,
which is made up of partner companies.
・Explanation of the Basic Sustainability Policy,
Human Rights Policy, and Procurement Policy.
・Safety training using VR and safety belts.
〇Joint efforts with subcontractors to raise productivity at various worksites,
commendation, and presentation sessions.

Awards and presentation
sessions for productivity
improvement measures atwork sites

Payment cashing〇Full cash payment of all payments from January 2020
1114

Promoting DX①
Initiatives of DX Promotion Committee①① Promote introduction of BIM・CIM related products＜Advantages of introduction＞
・Efficient examination of specifications and structures bymaking design drawings three-dimensional.
・Easy to form consensus and share information between
stakeholders not only at the design stage but also at the timeof construction and subsequent maintenance and management.
・Efficiency and sophistication of process management.
・Reduction of errors and rework, and improvement of safety.

Modeling of temporary
design plans②Optimization through the use of tablets・Arrangement and centralized management ofconstruction photos
・Inspection of bar arrangement
・Inspection of finish

Bar arrangement inspection using tablets

remote location③Joint development with other companies

・Construction RX consortium: robotics, power suits, etc.
・Kyoken 21: Bar arrangement inspection④Computerization of office work

・Digitization of contracts, orders, bills, etc.: Expansion of introduction of CI-NET・Digitization of office procedures for building-closing associations: Expansion of cooperation with CCUS
1215

Promoting DX②
Initiatives of DX Promotion Committee②⑤Utilization of VR〇Safety education
・VR reproduction of the layout of the scaffolding to be assembled for each individual
workplace in the future.(Reproduction with a simple standard version is also possible)
・Reproducing with VR in advance enables confirmation of future operational procedures.
・Improvement of safety awareness by creating a working image, leading to prevention ofnew awareness and rework.

Implementation of safety training using VR

VR model〇Construction review meeting〇Learning Outside the Classroom

1316

Eco-Friendly ASANUMA21①
Approach to decarbonization
Long-Term ＣＯ２ Reduction Targets①“Reduce ＣＯ２ emissions per 100 million yen of construction to 50% by FY2030
and 70% by FY2050 compared to FY1990“(basic unit target)②”Reduce total ＣＯ２ emissions by 73% by FY 2030 and 84% by FY 2050 fromFY1990“levels (total emissions target)
Trends in reducing ＣＯ２

Original unit target（FY2021updated）

Initiatives in April

Total emissions target from FY2022）

We also plan to set targets and work to reduce CO2 emitted
during the use of buildings delivered to customers.(Scope 3)17

Eco-Friendly ASANUMA21②
Other initiatives
Various Initiatives at Workplaces
ReducingＣＯ２Preserving biodiversity

Initiatives①

Assessment by CASBEE shall be incorporated in all
worksites for design and construction projects, with theaim of obtaining a rating of A rank at 50% or moreworksites (Comprehensive Assessment System
for Building Environments).

With aＣＯ２ reduction
rate of 50%
Introduction ofEnvironmentallyConscious Concrete inConstruction

Initiatives②sample

Introduction of 100% renewable energy power to all
new construction sites

Conceptual Diagram of Renewable Energy Supply

FY2021 564,291 kWh18

Adopted the "Ikimoto Plus" simple evaluation tool forbiodiversity, selected trees for the Onchi River and green
land adjacent to the workshop, and responded to a varietyof environmental conservation measures.

Promoting Sustainability
Major Initiatives of the Sustainability Promotion Committee① Initiatives to Promote Environmental Management
Established a working group to promote environmental management, and established theEnvironmental Technology Award at the technical review presentation meeting.
② Promotion of activities related to the Climate-Related Financial Disclosure Task
Force (TCFD)
Medium-to long-term targets related to climate change
Total emission target added to basic unit target③Establishment of human right policy and procurement policy
In addition to the Basic Sustainability Policy, the Human Rights Policy and Procurement Policy
are formulated and disclosed to HP.
④Partnership Building Declaration
Declare the establishment of new partnerships from the standpointof “Orderers“ through collaboration and coexistence with suppliers
and businesses seeking to create value.
⑤Further agenda issues
Establishment of "KPI" in sustainability management and consideration for formulation ofmeasures on human capital

19

Corporate Governance SystemTo further strengthen corporate governanceStructure of the Board・ Ratio of outside directors １／３
・ Including one female outside director

Composition of the Board ofCorporate Auditors

・ Ratio of Outside Audit & Supervisory Board Members
３／４
・ Including one female Outside Audit & Supervisory Board Member

Analysis and Evaluation ofthe Effectiveness of theBoard of Directors

・ Implemented using external organizations (since FY2019)

Operation of theNominations andCompensation 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 ofcompensating directors

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

Strengthening IR・ Briefings for institutional investors
・ Briefings for individual investors
・ Criteria for Judging Holding of Listed Stocks

Stockholdings

Reduced when the benefit of dividends and construction grossprofit is less than "cost of equity"
・ Listed stock balance End of March 2022
・ Consolidated Net Assets Ratio 8.8％
20

¥3.75 billion

Topics

Oct 17 2022
The Daily Engineering & Construction NewspaperOthers

・crQlr Awards2022 Urbanism Prize・Sky Design Awards 2022 Silver Prize・1st SDGs Building Award Semi-Grand Prix
・Chubu Architecture Award

Dec 22 2022
The Daily Engineering & Construction Newspaper21

Miscellaneous Activities①Asanuma Social Contribution Basic Policy

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

Report on activities of sponsoring organizations

The Japan Blind Tennis FederationJune 2019
The Japan Physically Disabled
Baseball FederationNov. 2022

22Mr. Ohno
Winning B1-class boys
Convention MVPMiscellaneous Activities②
Provide exhibition space for“SYURA and STONE”

Supporting“GAKUENMAE ART FESTIVAL”

SYURA is one of a sledge had used for carrying stones orother materials in case of building a castle. It is made ofwooden stand and a log, and has been said that also had
used for construction of Koriyama Castle.

Art event aimed to be united and developed the localcommunity. The Asanuma Memorial Museum, located inthis region, has been offered as one of the event sitefrom the first held in 2015.

23Miscellaneous Activities③
Holding Open Day to construction site

Supporting Culture and Art Event

We hold Open Day at construction site for local residents
or students of Junior high and High school.

Joined and supported Art and Architect Festival

At Todaiji Temple

Other activity support
Osaka Symphony Orchestra （https://sym.jp/）
Osaka Philharmony Orchestra（https://www.osaka-phil.com/）
KANSAI NIKIKAI （https://kansai-nikikai.com/）24

Corporate Profile
Corporate NameASANUMA CORPORATION

Representative

Makoto Asanuma, Representative President and C.E.O.

Established

January 20, 1892

IncorporatedJune 15, 1937

Capital¥ 9,614 millionBusiness LineGeneral Contractor

Employees

1,700（Consolidated）
1,273

Head Office

1-2-3 Minatomachi, Naniwa-ku, Osaka 556-0017 JAPAN(As of March 31, 2022)

BranchOsaka, Tokyo, Nagoya, Kyushu, Hiroshima, Tohoku, Hokkaido,
Saitama, Yokohama, Kobe, Technical Research Institute

Sales office

Fukushima, Ibaraki, Chiba, Tama, Hokuriku, Shizuoka, Mie, Keiji, Nara,
Okinawa, Guam

Subsidiary

Domestic ４companies
Oversea
５companies（Guam, Singapore, Thailand）
25

ASANUMA CORPORATIONMarch 11, 2023 (Saturday)
With Our Proud History
Creating a Desirable Future

Inquiries
Corporate Communications Dept.
Tel 06-6585-5500 Fax 06-6585-5556