IR Meeting Material

Financial Results for the Fiscal Year Ended March 2023

With Our Proud History,
Creating a Desirable Future

Asanuma Corporation
Prime Market of the Tokyo Stock Exchange
Stock Code :1852

Table of Contents
1. Financial Statements (Results/Plans)

・・・・・・・・・

Ｐ. 1（1）Major Financial Results and Plans

・・・・・・・・・

Ｐ. 2（2）Breakdown of Orders Awarded

・・・・・・・・・

Ｐ. 5

2. Progress of the Medium-Term Business Plan

・・・・・・・・・

Ｐ. 6（1）Renovation Business・・・・・・・・・

Ｐ. 7（2）Response to the Decrease in the Production Worker Population

・・・・・・・・・

Ｐ. 11（3）Non-Financial Information Management (ESGs, SDGs, etc.)

・・・・・・・・・

Ｐ. 14

3. Investments and Shareholders Returns

・・・・・・・・・

Ｐ. 17

4. Topics

・・・・・・・・・

Ｐ. 19

2

1. Results (Results/Plans)
1. Financial Statements (Results/Plans)

・・・・・・・・・

Ｐ. 1（1）Major Financial Results and Plans

・・・・・・・・・

Ｐ. 2（2）Breakdown of Orders Awarded

・・・・・・・・・

Ｐ. 5

2. Progress of the Medium-Term Business Plan

・・・・・・・・・

Ｐ. 6（1）Renovation Business・・・・・・・・・

Ｐ. 7（2）Response to the Decrease in the Production Worker Population

・・・・・・・・・

Ｐ. 11（3）Non-Financial Information Management (ESGs, SDGs, etc.)

・・・・・・・・・

Ｐ. 14

3. Investments and Shareholders Returns

・・・・・・・・・

Ｐ. 17

4. Topics

・・・・・・・・・

Ｐ. 19

3

1.

Financials Statements (Results/Plans)（1）Major Financial Results and Plans
1
2①Key figures

In FY2022, sales and profits on a non-consolidated basis missed targets due to delays in acquiring orders of domestic buildings and thematerial price hikes, however, orders, sales and profits on a consolidated basis were achieved the targets, mainly due to the strong
performance of the Singapore subsidiary and the additional large-scale project in the domestic civil engineering.
FY2023 plan has been downwardly revised by 2.7 billion yen on an operating profit basis in light of the carryover construction projects
as well as the Singapore subsidiary plan not performing well as FY 2022 but as the same level of the other year. However, net income
and dividends are as planned in the mid-term business plan.

Major Financial
Results & Plans(Consolidated)

FY2021

FY2022(Unit: million yen）

Mediumterm Plan

Resultsvs PlanMediumterm Plan

Modified
Plan

Orders Awarded

132,100

136,568

4,468

141,500

Completed
Construction
Contracts

140,000

135,478-4,521Gross profit

13,90013,444Rate

9.9%

SGA cost

1

Resultsvs PlanMediumterm Plan

141,600

144,743

3,143

135,500

144,300

144,436-455

15,261

14,630

9.9%

0.0P

11.3%

8,560

8,609

49

Operating Profit

5,340

4,835

Profit attributableto owners ofparent4,170

Dividend
Dividend payout
ratio

2

FY2023
RevisedPlan

Plannedratio

146,600

144,700-1,900136

137,334

141,800

4,466

15,139509

15,443

13,950-1,493

10.1%

10.5%

0.3P

11.2%

9.8%

-1.4P

8,728

9,020

9,447

427

8,710

9,850

1,140

-504

6,533

5,610

5,691

81

6,733

4,100

-2,633

3,748

-421

4,400

4,120

4,200

80

4,540

4,540

As
planned¥363

363 yenAs
planned＊191 yen（¥382）

70.2％

78.1％

7.9P

70.1％

＊191 yen ＊191 yen(¥382)(Scheduled)
74.8%

73.3％

As
planned
-1.4P＊197.5 yen ＊197.5 yen（¥395）（¥395）
70.2％

70.2％

As
plannedAsplannedWe split each common share at a rate of 2 shares on August. 1, 2022. Therefore, for the year ended March 2023, the expected amount of a per-share divide is calculated based onafter the stock split.

4

1.

Financial Statements (Results/Plans)（1） Major Financial Results and Plans ②Management Indices
Operating margin missed the medium-term business plan for the three consecutive fiscal years(❶ inthe table below)
On the other hand, ROE (❷ ) is expected to remain above the cost of shareholder’s equity for all
three fiscal years, and ROIC (❸ ) is expected to remain above WACC for all three fiscal years.
Secure P/B Ratio above 1.0 (❹ )Management
Indices(Consolidated)

1 Operating

Profit Margin

Return on Equity(ROE)
Cost of
Shareholder’sEquityReturns on
Invested capital(ROIC)
Weighted Average
Cost of Capital（WACC）
Price Book-value
Ratio(P/B Ratio)

FY2021
MediumResults
term Plan

3.8%

9.0％

8.0％

7.5％

7.1％

6.4％

6.0％

6.1％

—

vs Plan

3.6％

10.1％

0.9

FY2022

-0.2P

2

3

FY2023Medium- Modified
Results
term Plan Plan

4.8％

3.9％

3.9％

2

vs Plan—Medium- Modified Plannedterm Plan Plan
ratio

5.0%

2.9％

-2.1P

2

-1.1P

10.2％

9.6％

9.7％

0.1P

10.0％

10.2％

-0.5P

8.0％

7.5％

5.5％

-2.0P

8.0％

5.5％

-0.7P

8.3%

7.3%

7.3%3

—

8.3％

5.2% 3 -3.1P

0.1P

6.0％

6.0％

4.7％

-1.4P

6.0％

4.7％

-1.3P

—

—

—

—

—

—

—
5

1.1

4

0.2P
-2.5P

1.

Financial Statements (Results/Plans)（2）Breakdown of Orders Awarded
1 On non-consolidated basis, the construction in private company sector performed strongly.
2 Building Construction has made up for the negative YoY change for Civil Engineering, andthe consolidated orders targeting 141.6 billion yen was achieved.
(Unit:million yen)

Building
Construction
1 Public

ASANUMA
CORP.
(nonconsolidated
basis /
domestic
business)

Private
Civil
Engineering
PublicPrivate

Total
PublicPrivateSubsidiaries in ASEAN
Consolidated2

FY2021Results

FY2022
Results
YoY

110,110113,277

3,167

20,60089,509

11,131102,146-9,46912,63723,876

22,666-1,21017,431
12,666
2
6,444
9,999
133,986
135,943
38,032
23,79895,953112,145-4,765
3,554
1,957-14,234
16,192

2,582

8,812

6,2301

136,568

144,743

8,174

Pie chart： Orders
Outside： FY2022
Inside： FY2021

1. Strongly increased due to the consolidation of Evergreen Engineering & Construction Pte. Ltd, a Singapore subsidiary acquired in January 2022.
2. Consolidated adjusted figures62. Progress of the Medium-Term Business Plan
1. Financial Statements (Results/Plans)

・・・・・・・・・

Ｐ. 1（1）Major Financial Results and Plans

・・・・・・・・・

Ｐ. 2（2）Breakdown of Orders Awarded

・・・・・・・・・

Ｐ. 5

2. Progress of the Medium-Term Business Plan

・・・・・・・・・

Ｐ. 6（1）Renovation Business・・・・・・・・・

Ｐ. 7（2）Response to the Decrease in the Production Worker Population

・・・・・・・・・

Ｐ. 11（3）Non-Financial Information Management (ESGs, SDGs, etc.)

・・・・・・・・・

Ｐ. 14

3. Investments and Shareholders Returns

・・・・・・・・・

Ｐ. 17

4. Topics

・・・・・・・・・

Ｐ. 19

Medeium-term Business Plan Theme- Cultivate Asanuma’s uniqueness and originality and “take on the challenge of change”
Changes(1)
Changes(2)
Changes(3)

Domestic maintenance and repair business investment (Renovation) for “medium- to long-term
shrinking of domestic building investment and the aging of infrastructure and building structures"
Countermeasures ①Promoting the Renovation Business Brand "ReQuality"② Upgrading technology ③ Strengthening business in ASEAN region.
Decline in the Productive Labor ForceCountermeasures ① Promoting Cooperation with Subcontractors ② Promoting DX
Momentum to Increase Corporate Value through Non-Financial Information Management (ESGs, SDGs, etc.)
Countermeasures ① "Eco-Friendly ASANUMA21".
② Sustainability Management ③ Corporate governance7

2. Progress of the Medium-Term Business Plan
（1）Renovation Business - Results/Plan
Setting a goal of achieving an operating income in the building renovation
business of 35% of consolidated operating income by the final year of themedium-term plan, FY2023
Operating Income from Building Renovation Business
FY2021
FY2022% of consolidated
operating income（(Unit: million yen）

FY2023Results

Results

YoY

Plans

30.0％

31.0%

1.0P

35.2％

Domestic building renovation
Orders Awarded
Completed
Construction
Operating Income

16,62017,553932

20,00017,094

17,376282

18,000

1,503

860

△643

1,120

% or operating income

31.1％

15.1%

△16.0P

27.3％

ASEAN building renovation
Orders Awarded

2,582

8,812

6,230

9,700

Completed
Construction

2,335

10,8858,549

10,000Operating Income

△ 52

902

955

323

% or operating income

△1.1％

15.9%

16.9P

7.9％

＊Including goodwill amortization of ASEAN affiliates82.

Progress of the Medium-Term Business Plan

（1）Renovation Business① Promoting the Renovation Business Brand “ReQuality”

Our unique renovation business is branded and promoted with the name of "ReQuality“. The Nagoya
Branch, which was renovated as a model case of ReQuality, received a number of awards, including
Good Design Best 100, in addition to obtaining WELL certification for Gold.

Nagoya Branch Renovation Project• Designed based on the theme of“Circular Economy” with the longterm perspective• Not only eco-friendly, but also
healthy and comfortable building.
The WELL, evaluate the users’
health and comfortability,
certified GOLD (First time inJapan to acquire this certification
for renovation of the entire officein 30 years of construction)〇Selected as Good Design Best 100 ＊〇Other Awards

・crQlr Awards2022 Urbanism Prize・Sky Design Awards 2022 Silver Prize・1st SDGs Building Award Semi-Grand Prix
・Chubu Architecture Award・Environmental and Equipment Design Award 2022
II. Integrated M&E Design the best design award「ReQuality」logo＊ sponsored by the Japan Design Promotion Association9

the certificate of the WELL Gold

2.

Progress of the Medium-Term Business Plan

（1）Maintenance and Repair Business （Renovation）② Upgrading technology

Enhance proposal capability of our renovation business to customers using our proprietary technologies
for seismic reinforcement and building life extension

Proposal for Seismic Strengthening

Earthquake-proof while using buildings

Control the location of the cracks in concrete(inducing joints) and preserving clean conditions
without cracking walls or floors, contributing tolonger life (CCB/Crack Control Bar method,
PRS/Porous Resin Sand method)

Cross-sectional view of
CCB method

PRS joint filling method

Earthquake-proof reinforcement method that builds RM
additional walls in buildings and makes them function as
earthquake-resistant walls

Crack induced by CCB
methodPRS joint filling method

10

2.

Progress of the Medium-Term Business Plan

（1）Maintenance and Repair Business （Renovation）③Strengthening Business in ASEAN Region

In Singapore, two renovation-related subsidiaries performed well.
In Thailand, promoting the reinforcement of bridges using carbon-fiber sheeting (approved as JICA’s
project).

SINGAPORE
FY2022 Results (millions yen)
Name

Acquisition

Description of Businesses

SINGAPORE PAINTS &CONTRACTOR PTE. LTD.

October
2018

EVERGREEN ENGINEERING＆CONSTRUCTION PTE. LTD.

January2022

OrdersConstruction
contracts

OperatingincomeGood
will

Building painting andrepair work contractors

5,142

3,400

32

34

Maintenance services,Electrical engineering
services

3,670

7,485

1,217

312

THAILAND•••

Jointly promotes the business of reinforcement of bridges jointly with Toray Industries, Inc., Toray
International, Inc.
Adopted for JICA SDGs Business Support Program in 2021. Concluded a contract for the business inJanuary 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 business

July 202111

2.

Progress of the Medium-Term Business Plan

（2）Response to the Decrease in the Production Worker Population①Promoting Cooperation with Subcontractors
Implemented measures to improve treatment conditions and trading conditions with the subcontractors,
and utilize award systems to strengthen the bond with partner companies
Improve Treatment and Business Conditions
Promotion of theConstruction Carrier-Up
System (CCUS)• To improve the attractiveness of the construction industry, this system aims to improve thetreatment of construction technicians, clarify the career paths, and visualize construction
capabilities.
• Commendation system started in FY2022 for sites and partner companies with outstanding
CCUS initiatives

No Promissory notes
payment• No promissory notes payment from January 2020

Awards System
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 of certification in the next
fiscal year (FY2023) as the target requirement.

Awards and presentation
sessions for ‘Productivity
Improvement Measures at
Sites’ competition• Awards and presentation sessions for joint
efforts with subcontractors to raise
productivity at various worksites.

Holding Training Sessions
Training Sessions for
Subcontractors• Conducted training sessions for engineers from members of the ‘Yayoi Association’,
which is made up of our partner companies.
• Explanation of the Basic Sustainability Policy,
Human Rights Policy, and Procurement Policy.
• Safety training using VR and safety belts.
11

12

2.

Progress of the Medium-Term Business Plan

（2） Response to the Decrease in the Production Worker Population②Promoting DX（1/2）
DX Committee examines ways to implement digital transformation initiatives in order to raise thelevel of sophistication and streamlining operations.

Promote introduction of BIM・CIM related products•••

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.

Optimization through the use of tablets• Arrangement and centralized management ofconstruction photos• Inspection of each process of works using
tablets• Real-time managing the projects with linking
with the conference system

Inspection using tablets

Modeling of temporary
design plans

Remotely managing the projects

Digitalization of Paper Works••

Digitization of contracts, purchase orders, invoices, etc.: Expansion of introduction of CI-NET
Digitization of procedure of Kentaikyo System*: Expansion of cooperation with CCUS

*Retirement allowance system for construction site workers created by government under the Smaller Enterprise Retirement Mutual Aid Law

12

13

2.

Progress of the Medium-Term Business Plan

（2） Response to the Decrease in the Production Worker Population② Promoting DX （2/2）
For utilization of VR and further DX, jointly developing technology with other companies••

Participated in the Construction RX Consortium. Jointly study the use of robotics, power suits, etc. withother companies.
Implemented trial operation of robots that automatically transport materials at the sites‘Kyoken 21’ researches digitization of bar arrangement inspection system

Utilization of VR• Safety education
The layout of the scaffolding to be assembled for each individual
workplace is reproduced in advance in VR
Reproducing with VR in advance enables the construction
procedures to be studied in advance.
The improvement of safety awareness by creating a working
image leads to new awareness and prevention of rework.

VR modelImplementation of safety
training using VR

14•

Construction review meeting•

Off-Campus Learning forStudents

2.

Progress of the Medium-Term Business Plan

（3）Non-Financial Information Management (ESGs, SDGs, etc.)①Eco-Friendly ASANUMA21 (Initiative for decarbonization)
Promoting “Eco-Friendly ASANUMA21” as a decarbonization initiative“Scope 3” was added to CO2 reduction target, renewable power has been introduced to all new
construction sites, and environmentally friendly concrete was developed and has been proposed tocustomers.
Long-Term CO2 Reduction Targets
Base year
SubjecUnit

Fiscalyear

Scpe 1+2（Construction work
only）
Scope 3, Category 11（In-house design +Other company design）

Original unit target
Total emissions
targetTotal emissions
targett-CO2/100

TargrtEmissions

1990

30

ｔ-CO2

1990

74,193

ｔ-CO2

2021

693,428

million yen *FY2030FY2050

15

9

▲50％

▲70％

20,032

11,871▲73％▲84％

589,414450,728

▲15％

▲35％

Scope１：CO2 generated from our businessactivities
Scope２：CO2 of indirect emissions from theuse of electric gases
Scope 3 ：CO2 emitted after the building isdelivered to customers and during theuse of buildings* Emissions per 100 million yen of completed construction

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

Environment-friendly concrete
60% less CO2 with the same level of durability

Conceptual Diagram of Renewable Energy Supply

15

2.

Progress of the Medium-Term Business Plan

（3）Non-Financial Information Management (ESGs, SDGs, etc.)②Promoting Sustainability
The Sustainability Promotion Committee promotes initiatives related to ESG and SDGs
Major Initiatives of the Sustainability Committee
Initiatives to Promote Environmental Management• Established a Working Group to promote environmental management• Established the Environmental Technology Award at the technical review presentation session.
Promotion of activities related to the Task Force on Climate-related Financial Disclosure (TCFD)
Medium-to long-term targets related to climate change••

Disclose on the website Governance, Risk management (Scenario analysis of 4℃ and 1.5℃),
Strategy, Index and Target
Medium-to long-term targets related to climate change
Scope１,２,3
The targets by Original Unit and Total Emission
Scope 3 Category 11 Total Emission Target (From FY2023)

Establishment of Human Rights Policy and Procurement Policy, Multi-stakeholder policy• In addition to the Basic Sustainability Policy, the Human Rights Policy, Procurement Policy, andMulti-stakeholder policy are formulated and disclosed to the Website.
Partnership Building Declaration• Declare the establishment of new partnerships through collaboration andcoexistence with suppliers and businesses seeking to create value
from the standpoint of ‘orderers’
Further agenda• Establishment of KPI in sustainability management and consideration for formulation of measures onhuman capital16

2.

Progress of the Medium-Term Business Plan

（3）Non-Financial Information Management (ESGs, SDGs, etc.)③Further Strengthening Corporate GovernanceContinue to implement initiatives to strengthen the corporate governance system
Initiatives to further strengthen corporate governance
Structure of the Board andthe Board of Corporate
Auditors••

Ratio of outside directors １／３ （Including one female director）
Ratio of outside corporate auditor ３／４（Including one female auditor）

Analysis and Evaluation of
the Effectiveness of theBoard of Directors••

Using external agency (since FY2019)
Results have been more than average every term

Nomination andCompensation Committee•••

Both committees chaired by outside directors
Majority of members is outside directors
Held at appropriate timing (6 times FY20, 7 times FY21, 3 times FY22）•

Continues Restricted Stock Compensation System(since FY2021)•

IR meetings continue to be held
Briefings for institutional investors （2 times FY2022）
Briefings for individual investors （2 times FY2022）
Individual meeting with institutional investors（15 times FY2022）•

Criteria for judging holding of listed stocks: Reduced when the benefit ofdividends and gross construction profit is less than cost of shareholder’sequityListed stock balance at the end of March 2023 39.1 billion yen
Consolidated Net Assets Ratio 8.8％

Executive Compensation
Systems
Enhancement of IR

Stockholdings

•
•

17

3.

Investments and Shareholder Returns
1. Financial Statements (Results/Plans)

・・・・・・・・・

Ｐ. 1（1）Major Financial Results and Plans

・・・・・・・・・

Ｐ. 2（2）Breakdown of Orders Awarded

・・・・・・・・・

Ｐ. 5

2. Progress of the Medium-Term Business Plan

・・・・・・・・・

Ｐ. 6（1）Renovation Business・・・・・・・・・

Ｐ. 7（2）Response to the Decrease in the Production Worker Population

・・・・・・・・・

Ｐ. 11（3）Non-Financial Information Management (ESGs, SDGs, etc.)

・・・・・・・・・

Ｐ. 14

3. Investments and Shareholders Returns

・・・・・・・・・

Ｐ. 17

4. Topics

・・・・・・・・・

Ｐ. 19

18

3.

Investments and Shareholder Returns
Our basic policy is to “allocate the funds generated by profits to Investments andShareholder Returns”
Investment and shareholder returns for the past two years (FY2021-2022) are as
follows. Plans to secure a dividend payout ratio of 70% or more for each fiscal year
Investments and Shareholder Returns(billion yen)

Before Revision
3 years total

Revised1
3 years total

FY2022 Results
total of past２
years

Technology development and ICT investments
・Upgrading of renovation technology
・Promoting DX (digital transformation)

3

2.9

1.7

Investment related to new business・Expansion of ASEAN regional renovation
related business

5

3.4

2.9

Total

8

6.3

4.6

Consolidated Dividend Payout Ratio

Before Revision

RevisedFY2022
Forecast

Over 50%

Over 70%

73.3％

1. Revised plan which was disclosed on November 18, 2021. Originally planned total investment was reduced and the shareholder returns wasincreased as we finalized the amount of part of investment related to new business (strengthening the renewal business in ASEAN), andaccordingly, we reviewed our overall capital investment plan including technology development and ICT investments.

19

4. Topics
1. Financial Statements (Results/Plans)

・・・・・・・・・

Ｐ. 1（1）Major Financial Results and Plans

・・・・・・・・・

Ｐ. 2（2）Breakdown of Orders Awarded

・・・・・・・・・

Ｐ. 5

2. Progress of the Medium-Term Business Plan

・・・・・・・・・

Ｐ. 6（1）Renovation Business・・・・・・・・・

Ｐ. 7（2）Response to the Decrease in the Production Worker Population

・・・・・・・・・

Ｐ. 11（3）Non-Financial Information Management (ESGs, SDGs, etc.)

・・・・・・・・・

Ｐ. 14

3. Investments and Shareholders Returns

・・・・・・・・・

Ｐ. 17

4. Topics

・・・・・・・・・

Ｐ. 19

20

4. Topics

Jan 31 2023 The daily KensetsuTsushin Newspaper

Feb 13 2023 The daily KensetsuTsushin Newspaper21

Mar 20 2023 The Daily Engineering &Construction Newspaper

MEMO

MEMO

With Our Proud History,
Creating a Desirable Future

FY2023
Contact
Corporate Communications Dept.
Tel 06-6585-5500

Fax 06-6585-5556