Financial Results Briefing for
the Fiscal Year Ended March 31, 2022
With Our Proud History,
Creating a Desirable Future

May 20, 2022 (Friday)
Asanuma Corporation
Securities Code :1852

This material contains forward-looking statements regarding
the Company's business performance and future prospects.
These statements are based on currently available information
and assumptions regarding uncertain factors that may affectthe future. Actual results may differ materially from thesestatements due to various factors.

With Our Proud History,
Creating a Desirable Future1

Table of ContentsPageItemP3

Business Results

P4

Performance Indicators

P5

Building renovation

P6

Major Measures in the Three-Year Medium-Term Plan

P7

Reinforcement of renovation efforts in ASEAN

P8

Promoting "ReQuality" Renovation Brand Strategy

P9

Expanding seismic technology and upgrading seismic isolation and shock control
technologies

P10

Promoting the Utilization and Introduction of ICT-Related Systems

P11

Promoting cooperation with subcontractors

P12-13

Eco-Friendly ASANUMA21① to ②

P14

Reduction of strategic stockholdings

P15

The Fund Injection

P16

Shareholder returnP17Topix2

Business Results(Unit: 100 million yen)

Medium-termPlanResults

YOY

Medium-term
Plan

FY 2022
ModifiedPlan

Orders received

1,321

1,366

45

1,415

1,416

11,466

Completed
construction contracts

1,390

1,344

△461,345

1,433

88

1,363

Gross profit oncompleted
construction contracts

136131

△5149

143

△6151

Rate

9.8%

9.8%

―

11.1%

10.0%

△1.1P

11.1%

SGA cost

8686

―

8790

387

Operating income

5348△56556△967

Profit attributable toowners of parent
Net income

4237△44441△345

Construction carriedforward from thebeginning of the period

1,392

1,478

86

1,462

1,461△1

1,565

Dividend¥363¥363(Scheduled)―*¥191(¥382)*¥191(¥382)―*¥197.5(¥395)

Dividend payout ratio

70.2%

78.1%

7.9P

70.1%

74.8%

4.7P

70.4%

Major Indicators(Consolidated）

FY 2021YOY

FY2023Medium-termPlan＊We plan to split each common share at a rate of 2 shares effective August. 1, 2022. Therefore, for the year ending March
2023, the expected amount of a per-share divide is calculated based on the effect of the split.
3

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)

FY 2021

FY 2022

FY 2023

ModifiedPlan

YOY

Mediumterm
Plan

Mediumterm
Plan

Results

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%

4

Building renovation
Domestic building renovation(Unit: 100 million yen)
FY2021

Orders received
NET SALES
Operating income
Share of operating
incomeTarget

FY2022

FY2023Medium-term
PlanResults

YOY

Medium-term
Plan

ModifiedPlan

YOY

Medium-term
Plan

200
200
12.0

166
171
13.8

△34△291.9250
250
14.5200
180
11.6△50△70△2.9300
300
17.4

22.5%

28.5%

6.0P

22.2%

20.7%

△1.5P

25.8%

In FY 2023, operating income from the Domestic Building Renovation Businesswill increase to 25% of consolidated operating income.

ASEAN building renovation
Orders received

1426186567

266

NET SALES
Operating income

180.5

23
△0.27
△0.7635.6

78
4.8

15△0.866
6.8

Share of operating
income

0.9%

△0.4%

△1.5P

8.6%

8.6%

—10.1%

TargetIn FY2023, operating income from the ASEAN Building Renovation Businesswill increase to 10% of consolidated operating income.

Building renovation total
Share of operating
incomeTarget

23.4%

28.1%

4.7P

30.8%

29.3%

In FY 2023, operating income from the Building Renovation Businesswill increase to 35% of consolidated operating income.
5△1.5P

35.9%

Major Measures in the Three-Year
Medium-Term Plan
― 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 steadydue to the aging of infrastructure and Building Construction structures
1. Continue to strengthen renovation business in ASEAN region.
2. Promoting "ReQuality" Renovation Brand Strategy.
3. Strengthen initiatives for disaster prevention and mitigation and nationalresilience-related projects by expanding seismic technologies and upgrading
seismic isolation and shock control technologies .

Take on thechallenge★ Decline in the productive labor force in the construction sector.
Changes inthe external
1. Promoting the Utilization and Introduction of ICT-Related Systems
2. Promoting cooperation with subcontractors
environment★

Momentum to improve corporate reputation through non-financial
management activities (ESGs, SDGs, etc.)
1. "E": Promotion of "Eco-Friendly ASANUMA21".
2. "S": Obtaining WELL certification as part of "ReQuality".
3. "G": Reduction of Policy Holding Shares.
6

Strengthen renovation business in ASEAN
Completed M&A of two companies in Singapore
Name

Description of Businesses

Acquisition

SINGAPORE PAINTS & CONTRACTOR PTE. LTD.

Building painting and repair workcontractors

October
2018

EVERGREEN ENGINEERING ＆ CONSTRUCTION PTE. LTD.

Maintenance services,Electrical engineering services

January2022

Completed establishment of two companies in Thailand
Name

Description of Businesses

Incorporation

Thai Asanuma Holdings Co.,Ltd.

Holding company

June
2021

Thai Asanuma Construction Co.,Ltd.

Maintenance of highways andbridges

July
2021

7

Promoting "ReQuality" Renovation Brand Strategy
First renovation of the Nagoya Branch of "ReQuality"

・Much use of natural materials (soil and wood)
Ring soil block using
surplus soil fromsuburban workshops

Healthcare Space
Retrofit

Reception set made by upcycling waste materials(stone)Soil wall construction
system・Reduce CO2 emissions by 85% compared to rebuilding
as a new building
・Acquired ZEBready certification, reducing energy
consumption by 52% compared to pre-renovation
・Scheduled to acquire WELL certification for assessingbuildings based on health/comfort standards.
(It was the first time in Japan to renovate the entire
30-year-old building and receive official certification.)
8

Expanding seismic technology and upgrading
seismic isolation and shock control technologies
Development of new construction methods and design methods for large distribution
warehouses〇 Improvement of Column RC Beam S
Hybrid Construction Method

・Leveraging the characteristics of steelstructures, we have reduced the number ofcolumns,Capable of improving earthquake
resistance while ensuring large space.
・Cost reduction of about 10% is possible in theframe compared with the whole steel framestructure.

Joint Details of Column RC
Beams S Hybrid Construction
Method〇 Development of design method using
energy method to Optimize Vibration
Structure

・Improves vibration control efficiency and reduces costs.
・New design method that makes effective use ofvibration dampers and achieves both superior seismic
resistance and economic efficiency in comparison withthe general design method.

Frame image

9

Promoting the Utilization and Introduction of
ICT-Related Systems
Utilization of VR model for on-site construction plan
Understanding buried pipes forgas and water

Confirmation of the positional
relationship between the steel
pipe pile and the stratum
serving as the bearing stratum

10

Sharing of construction procedures,etc. to prevent accidents

Promoting cooperation with subcontractors
Promotion of theConstruction Carrier-Up
System (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 from October 1, 2021 to March 31, 2022
・Implementation of online briefing sessions (six times from September toDecember 2021)

Introduction of CI-NETsystems〇System that enables efficient exchange of services such as contracts,
estimates, volume, and billing through a network
・Networking of contracts as the first step

Promotion of Asanuma
Meister・Selected as Asanoma Meister among the chiefs of subcontractors
・Provision of incentives to improve wage-related compensation

Awards and presentation
sessions for productivity
improvement measures
at work sites〇Joint efforts with subcontractors at each worksite to solicit measures toimprove productivity
Award and presentation meeting held (Third held on October 29, 2021)(Cost reduction, shortening of construction period, introduction of
new technology, etc. 77 editions)11

Eco-Friendly ASANUMA21①〇Major Initiatives of the Sustainability Promotion Committee(Established in November 2021)① Initiatives to Promote Environmental Management
・Established a working group to promote environmental management and examined it from a technicalperspective
・Establishment of the Environmental Technology Award at the Technology Presentation Meeting② Promotion of activities related to TCFD(Task Force on
CLIMATE-RELATED FINACIAL DISCLOSURES)〇Medium-to long-term targets related to climate change"ReduceCO2 emissions per 100 million yen of construction
to 50% by FY2030 and 70% by FY2050 compared to FY1990"〇Promote decarbonization efforts in business activities

・Introduction of 100% renewable energy power to all worksites・"Guidelines for Preventing Global Warming at Workplaces" revised
・Promotion of activities to improve the implementation rate of fuel-efficient driving education

Future Activities③ Establishment of "KPIs" in sustainability management and consideration of fund investment in relation
thereto④ Securing diversity of core human resources and promoting human resource development policies⑤ Promotion of measures that take human right into consideration⑥ Established DX Promotion Committee to promote centralized management of construction-related digitaltechnologies
12Eco-Friendly ASANUMA21②
To reduce CO2 at the construction stage
Started supplying 100% renewable energy toworkplaces that meet RE100 standards(100% renewable energy)

Global Warming Prevention
Measures at Workplaces
Guideline

Efforts for CASBEE
CASBEE in designing and construction projects(Comprehensive Assessment System for
Building Environment) is incorporated,
A rank rating of 50% or higher

Decarbonization technology
Environmental simulation
Propose increased cost and comfort in indoor environments

Environmentally Conscious Concrete
60% less CO2 thanks to durability

Acoustic simulation

Temperature and humidity simulation
Environmental simulation

13Reduction of strategic stockholdings
Reduce strategic shareholdings to less than 10% of consolidated net
assets by the end of March 2022
Criteria for Judging Holding of Listed Stocks
Reduction if the benefits of dividends and construction profits are less than Cost ofcapital (WACC)
Cost of equity 7.5% as of March 31, 2022

End of March
2021

End of March
2022

Listed stock balance¥5.56 billion¥3.75 billion

Consolidated Net Assets Ratio

13.3%

8.8%

Benefits (Dividends andConstruction Profits) /* Market Value

20.1%

32.9%

*Market value: Balance sheet amount14The Fund Injection
Disclosed on November 18, 2021
Shareholder returns increased due to a reduction in the initial funding plan following a review
and revision of the overall funding plan, including investments associated with the promotionof concession business and other initiatives, and investments related to technology
development and ICT-related investments, in light of the finalization of a portion of theinvestment amount for "investments related to new domains (expansion of ASEAN regional
renewal business, promotion of concession business, etc.)."
Beforecorrection

Aftercorrection

FY2021ResultsTechnology and research, ICT¥3 billion¥2.9 billion¥1.5 billion

Investment related to new areas (M&A)¥5 billion¥3.4 billion¥2.9 billion

Total¥8 billion¥6.3 billion¥4.4 billion

15

Shareholder Returns
Disclosed on November 18, 2021

Dividend

Before correction

After correction

After split

Consolidated dividend
payout ratio

Over 50%

FY2021¥260¥363—FY2022

¥274

¥382

¥191

FY2023¥282¥395¥197.5

Over 70%

Disclosed on March 31, 2022

Stock split

Purpose: Reduce the amount of shares per unit of investment, improve theliquidity of shares, create an investment environment, and expand the investor
base.
Target: Split at the rate of two per stock of our common stock owned by theshareholder recorded in the shareholder register on July 31, 2022.
16

Topics

Renovation articles at Nagoya Branch・Oct.2021 SHINKENCHIKU

Apr.13 2022 The daily Kensetsu-Tsushin Newspaper

Other media
・ Nov.11 2021 NIKKEI ARCHITECTURE
・Jan 2022 FRAUOther media
・ Apr.14 2022
・ Apr.16 2022
13

The Daily Engineering & Construction Newspaper
KENTSU SHINBUNSHA etc

With Our Proud History,
Creating a Desirable Future

May 20, 2022
Contact
Corporate Communications Dept.
Tel 06-6585-5500

Fax 06-6585-5556