July 25, 2023
To whom it may concern
Name of Company:
Stock Exchange
Listing:
Stock Code:
Representative
E-mail:ASANUMA CORPORATION
Prime Market of the Tokyo StockExchange
1852
Makoto Asanuma,
Representative Director,President & C.E.O
asanuma_ir@asanuma.co.jp

Suspension of Business Pursuant to the Construction Business Act
Today, the Company was subjected to suspension of business by the Kinki Regional Development Bureauof the Ministry of Land, Infrastructure, Transport and Tourism as follows pursuant to the provision ofArticle 28, paragraph (3) of the Construction Business Act due to employees of the Company being foundguilty of interfering in bidding on a tender for a public contract in relation to bidding on construction
ordered by Ichikawa City in Prefecture, and the sentences being finalized.
We sincerely apologize to all relevant parties including shareholders and business partners for thesignificant concern and inconvenience caused.
The Company solemnly accepts this disciplinary action, and the entire Company will work to ensure “4.
Measures to Prevent Recurrence” and endeavor to quickly regain trust.

1.

Scope of Business Operations and Period Subject to Orders to be Suspended
Scope of BusinessBusiness related to demolition work pertaining to public works projects inOperations Ordered

the areas of Ibaraki, Tochigi, Gunma, Saitama, Chiba, Tokyo, Kanagawa,to be Suspended

Yamanashi and Nagano

Period120 days from August 9, 2023 until December 6, 2023

(Note 1) Business related to demolition work refers to a business being contracted to perform demolition work by an order.
(Note 2) “Public works project” refers to construction work in which the order is the national government, a localgovernment, a public corporation listed in Appended Table 1 of the Corporation Tax Act (Act No. 34 of 1965)
or a corporation prescribed in Article 18 of the Enforcement Regulation of the Construction Business Act(Order of the Ministry of Construction No. 14 of 1949).

2.

Impact on Financial Results
There are no plans to revise the results forecast at this time, but we will promptly provide notification if it isrevealed that there will be a significant impact on future results.

3.

The Company’s Response to the Incident
The following actions were taken in response to the arrest of employees of the Company in July 2022.
(1) Message sent by President & C.E.O (Chairman of the Compliance Committee) to all officers andemployees
In response to the arrest of the Company’s employees, all officers and employees wereinstructed to ensure compliance(2) Reduction of compensation of directors and executive officers
As stated in the “Notice of Reduction of Remuneration for Directors, Etc.” dated
August 16, 2022
(3) Disciplinary action against the relevant employees
As disclosed on the Company’s website in “Measures to Prevent Recurrence” dated
October 20, 2022 , disciplinary action was taken on September 8, 2022
(4) Implementation of audits
The Audit Officer audited the bidding process for public works projects (previousNote 2) nationwide for which the company received orders since FY2018. It was
confirmed that there are no similar cases.
4.

Measures to Prevent Recurrence
The following action is being taken as measures to prevent recurrence.
(1) Ensuring compliance
President & C.E.O (Chairman of the Compliance Committee) made a renewed
request to the Company’s officers and employees in charge of sales for timely andappropriate sharing of information and the creation of a workplace enabling easyconsultation by personnel in charge of sales.
Building Construction Headquarter and Civil Construction Headquarter clearlyindicated the information sharing route and reporting lines for acquiring tender
projects, etc.
The details of “Appropriate bidding and contracting for public works projects” wereclarified in the handbook for ensuring compliance.
Implementation of training
In response to this incident, in addition to the compliance training that has continued
to be implemented since previously, the following training was implemented
Training Title and ContentLecturer

Recipients“The Crime of Interfering with Bidding, etc.”

Outside lecturer

Officers

Outside lecturer

Officers“Lessons from the Indictment of theCompany’s Employees Related to the Crimeof Interfering in Bidding on a Tender for aPublic Contract”“Requirements of the Crime of Interfering in
Bidding on a Tender for a Public Contract”“Matters to Comply with in Business

Personnel in charge of
Outside lecturer

charge of quotations

Activities”“Compliance Training on the Crime ofInterfering in Bidding on a Tender for a PublicContract”

Only disclosed in Japanese

government business and inCompliance
OfficePersonnel in charge ofgovernment business and incharge of quotations

(2) Education of managers (methods of providing guidance to subordinates)(3) Further strengthening of ongoing items
Compliance training (held annually for all officers and employees (stratified))
Information sharing on compliance (monthly for all officers and employees)
Responses by whistleblower contact points (internal contact point and contact point byexternal attorneys)
Auditing of bidding process

Disclaimer: This document has been translated from the Japanese original for reference purposes only. In theevent of any discrepancy between this translated document and the Japanese original, the original shall prevail.