Financial Results Briefing for the Second
Quarter of the Fiscal Year Ending March31, 2020

With Our Proud History,
Creating a Desirable Future

November 22, 2019 (Friday)
Asanuma Corporation
Securities Code :1852

This material contains forward-looking
statements regarding the Company's businessperformance and future prospects.
These statements are based on currently
available information and assumptions
regarding uncertain factors that may affectthe future. Actual results may differ materiallyfrom these statements due to various factors.
With Our Proud History,
Creating a Desirable Future1

Table of contents
PageItems

Ｐ3

Business Environment

Ｐ4Topics

Ｐ5～

FY2019 Q2 Accounting Detailed

Ｐ10

FY2019 Earnings forecast

Ｐ11～

Three-year Medium-Term Plan Progress

Ｐ16

Return to Shareholders

Ｐ17

Contribution to Society2Business Environment

Constructionindustry

Despite the growing uncertainty in the foreign economy, capital
investment in Private construction has been steady due to an increasein consumer spending and improved corporate earnings. Government
construction investment is expected to continue to be strong, as
economic measures and related budgets are expected to be steadily
implemented. However, caution must be exercised in regard to factorsthat may depress capital investment by Japanese companies, such as
postponement and restraint of capital investment due to the slowdown
in the Chinese economy caused by trade frictions.

Construction Investment
80.0
60.0

51.3

50.9

40.0

22.6

22.6

20.0

28.7

28.3

2013

2014

56.6

20.2

58.7

60.7
21.3

21.0

60.9
20.7

62.2
21.3

Trillion of yen

62.7

21.5

PublicPrivate

36.4

37.7

39.4

40.2

40.9

41.2

2015

2016

2017

2018

2019

2020

Forecast

Forecast

Forecast

Forecast

0.0

3

By Reserch Institute ofConstruction and Economy

2019 Topics
This section introduces the recent topics of Asanuma
Aug 1
Oct 16
Oct 30Technology Presentation Meeting
The Ai-MAP SYSTEM being developed was taken up inthe BIMCIM Special Feature.
Presentation Meeting on Measures to Improve
Workplace Productivity

Oct 16 2019

Aug 23 20194Nov 8 2019

Orders FY2017 - FY2019 Q2
75,981
69,51580,00069,88070,00060,000

Building

50,00065,06140,00058,419construction

61,703Civil Engineering

30,00020,00010,00010,92011,0958,176

FY2017 2Q

FY2018 2Q

FY2019 2Q0（Millions of yen）

FY2017 Q2

FY2018 Q2

FY2019 Q2

YOYBuilding
construction

65,061

58,41961,703

3,284

Civil
Engineering

10,92011,095

8,176△2,919Total

75,981

69,51569,880364

5FY2019 Q2 Major Orders（ ）JV total

ClientContract
price

Housing

Kitasuzurandai Ekimae Redevelopment Co., Ltd.

40.0

Commercial Facilities

Daiwa Lease Co., Ltd.

30.7

Factory

DMG MORI CO., LTD.

30.5

Housing

Urban Renaissance Agency

OfficeOsaka SUBARU Corporation

Renovation

Nara CityHotel

THE SANKEI BUILDING CO., LTD.

15.9

Road

Nagoya Expressway Public Corporation

18.4

Railway

Nagoya Railroad Co., Ltd.

9.8

Rainwater Drainage

Yachiyo CityType of project
Building
construction

Civilengineering（Hundred millions of yen）

626.5
19.3
19.1
（27.3）

7.0

Consolidated Statements of Income
3,371

3,280

3,500
3,000
2,500
2,000

2,191
1,526

1,850

1,494

1,800

FY2018 Q2
FY2019 Q2 Plan
FY2019 Q2

1,012 1,170

1,500
1,000
500
0
Net sales

Operating income

Profit attributable to owners（Millions of yen）

of parent

FY2018Q2FY2019Q2 Plan

FY2019Q2YOY

Plan ratio

Net sales

54,90457,00068,665

13,761

11,665

Operating income

1,526
2.8％

1,850
3.2％

3,371
4.9％

1,8442.1P

1,521
1.7P

1,494
2.7％

1,800
3.2％

3,280
4.8％

1,785
2.1P

1,480
1.6P

1,012
1.8％

1,170
2.1％

2,191
3.2％

1,179
1.4P

1,021
1.1P

（Rate）

Ordinary income（Rate）

Profit attributable to
Owners of parent（Rate）

7

FY2019 Q2 Major Net Sales（Hundred millions of yen）

Type of project
Building
construction

Civil engineering

ClientNet Sales

HousingDaiwa House Industry Co., Ltd.
Nankai Fudosan Co., Ltd.
Nankai Electric Railway Co., Ltd.
ORIX Real Estate Corporation

21.4

Housing

Panasonic Homes Co., Ltd.

20.1

Distribution Warehouse

Shimohana Logistics Co., Ltd

19.7

Distribution Warehouse

TOSOH LOGISTICS CORPORATION

17.6

OfficeBureau of Transportation Tokyo Metropolitan Government

12.3

Distribution Warehouse

MANDAI Co., Ltd.

11.8

Road

West Nippon Expressway Company Limited

12.9

BridgeKanto Regional Development Bureau

4.3

Completion work

（Saitonooka school）（Shimohana Logistics Co., Ltd）

8

（South Wakayama ＳＩＣ）

Consolidated Balance Sheets（Millions of yen）

Assets

FY2018FY2019 Q2

YOY

Current assets

84,92480,013△4,911

Fixed assets

17,075

16,706△369

Tangible fixed assets

5,3335,151△181

Intangible fixed assets886

1,012

126

10,855

10,541△313

102,000

96,719△5,280FY2018FY2019 Q2

YOY

Current liabilities

51,14744,280△6,866Long-term liabilities

13,386

13,924537

64,53358,204△6,329FY2018FY2019 Q2

YOY37,46638,515

1,048

Investments and other assets
TotalLiabilities

Total
Net assets
Total
9

FY2019

Earnings forecast

153,717160,000

140,000

6,270

7,000
134,300

135,712 134,700

5,700

6,000

120,000

5,000

100,000

4,000
69,88080,00069,156

4,178
3,371

3,000

60,0002,000

40,0001,000

20,000

0FY2018
Results
FY20192,191

Plan
FY2019Q2 Results0

Operating income
Orders4,180

Net sales

Profit attributableto owners of parent（Millions of yen）

FY2018Results

FY2019Plan

FY2019Q2 Results

Progressrate

Orders153,717

134,300

69,88052.0％

Net sales

135,713

134,700

68,66551.0％

Operating income

5,700

6,270

3,371

53.8％

Profit attributable toowners of parent

4,178

4,180

2,191

52.4％

10

Three-year Medium-term Plan Progress ①（Numerical planning）（Millions of yen）

YOY

Mediumterm plan
ratio

4.6%

4.7％

0.5P

0.1P

1.1P

8.4%

8.4％

0.3P―11.5％

2.5P

10.6%

10.6％

△0.9P

―

36.0％

36.6％

0.6P

41.0%

41.0％

4.4P

―

5.0％

5.1％

0.1P

5.0%

5.1％

―

0.1P

FY2018Results

Planratio

Operating income
margin

3.8％

4.2％

0.4P

Return on Invested
Capital（ROIC）

7.0％

8.1％

Return on equity

9.0％

Equity ratio
Cost of capital（ＲＯＥ）（WACC）FY2019FY2019Plan

FY2018Plan11

Mediumterm Plan

Three-year Medium-term Plan
Progress ②
Make the construction business even more profitable and competitive
Joint activities with subcontractors and other partners for improving productivity○ Holding award ceremonies and presentations on measures to improve workplace

productivity in cooperation with partner companies.
・President's award”Shortening of construction timeby making beam formworks unit”
・Outstanding performance award
3 cases

Presentation of the President's Award

Enhance renovation○ Renovation branding plan
By branding
Promoting Differentiation, Strengthening,and Deepening of the Renovation Business of Asanuma“OX is a renovation business brand of Asanuma”
Acquire market recognition and create business opportunities
12Three-year Medium-term Plan
Progress ③
Make the construction business even more profitable and competitive

Raise productivity by using information and communications technology○ Start trial of BIM, CIM and other ICT, and actively utilize them in design and construction
projects, etc.

Construction Simulation
by VR Model
Construction plan

3D scanner measurement

13Three-year Medium-term Plan
Progress ④
Add new technologies and start new businesses
Activities for developing new technologies and construction processes○Practical application of special laminated fiber sheets
Jointly developed by Hanshin Expressway Company Limited and KFC Co., Ltd.

[Maintenance & Resilience ASIA 2019] held in Bangkok, the Kingdom of Thailand

JICA (Japan International
Cooperation Agency) wasselected as a proposal for a
project to support SDGs
businesses, and aims to win
orders for infrastructure
repair and reinforcement
projects for highways andother infrastructure in theKingdom of Thailand.
The JICA's business meets
SDGs's Goal-914

Three-year Medium-term Plan
Progress ⑤
Build an infrastructure capable of sustained growth
Create an even stronger corporate governance framework○Analysis and Evaluation ofEffectiveness of the Board ofDirectors

・Changed By Third party organization(2019)○Increase the number ofoutside directors(since June 2019）

・Expected to increase the number of female outside directors (to be appointedas members of the Nomination and Compensation Committees)outside directors to the total number of directors 25.0％ → 37.5％○Appropriate Management of
the Nomination andCompensation Committees

・Clarification of Criteria for Appointment and Dismissal of Representative
Directors
・Increase in the number of days held (FY2018 7 times FY2019 6 times)
・Ratio of outside directors to all directors 50.0％ → 60.0％○Strengthen investor relations
activities

・Introduction of Electronic Voting System at General Meetings of Shareholders
・Enhancement of English-language disclosure

・Briefing session for individual investors（February 2020)

Plan for investments
Cash payments to strengthen collaboration with partner companies○Cash ratio improvement

・From August 2018, the lower limit of the amount of notes issued waschanged to 50 million yen or more, and the cash payment ratio was increased.

・From January 2020 ,All cash payment

15Return to Shareholders:
Revision of dividend payout ratio plan（2019/5/10 Revised）
The Company has revised its plan to achieve a consolidated dividend payout
ratio of 30% or more in the first year of the three-year medium-term plan,and to achieve a consolidated dividend payout ratio of 50% or more in thelast year of the plan.
In principle, we are aiming to achieve the following consolidated dividend payout ratio.

Dividend per share（¥/share）

FY2018 plan

FY2019 plan

FY2020 plan

Over 30%

Over 40%

Over 50%（2017 previously for even converted to a value
after the reverse stock split）

Dividend payout ratio（％）

Octorber 1,2018
Reverse stock split
10share→1share

350

50.1％

3004030.3％

200

25.7％

150
10.5％

10050

40.1％

250

No dividend

500FY2013(actual)

5.4％

5.7％

¥2(¥20)¥2（¥20）¥5(¥50)¥8(¥80)FY2014(actual)

FY2015(actual)

FY2016(actual)Dividend per share(125th founding year commemor active dividend
Dividend per share(regular)
Dividend payout ratio

16¥16（¥160）

¥150
（¥15）

FY2017(actual)

FY2018(actual)60¥208（¥20.8）¥292（¥29.2）3020
100

FY2019(plan)

Three-year Medium-Tern Plan

FY2020(plan)

Contribution to Society
Asanuma 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 since April 2019
The Japan PhysicallyDisabled BaseballFederation

The Japan
Blind Tennis
Federation

May 2019

Jun 2019

NaraFM Program,「Akio Okamoto
Nara Oku no Oku」
Apr 2019

17

With Our Proud History,
Creating a Desirable Future

Friday, Nov 22, 2019
Asanuma Corporation
Contact information
Corporate Communications Dept.
Ｔｅｌ 06-6585-5500

Ｆａｘ 06-6585-5556