Financial Results Briefing for Fiscal
Year Ended March 31, 2020

With Our Proud History,
Creating a Desirable Future

Asanuma Corporation
Securities Code :1852

This material contains forward-looking statements
regarding the Company's business performance andfuture prospects.
These statements are based on currently available
information and assumptions regarding uncertain
factors that may affect the future. Actual results
may differ materially from these statements due tovarious factors.
With Our Proud History,
Creating a Desirable Future1

Table of Contents
Page

Item

P3

Business Environment

P4～Three-Year Medium-Term Plan Progress ofConsolidated Results

P6～

Three-Year Medium-Term Plan Fund Injection Plan

P14

Return to Shareholders

P15

Corporate Governance System

P16～

Contribution to Society

P18Topics2Business Environment

Constructionindustry

In fiscal 2019, although housing investment in Private was sluggish,
capital investment increased gradually, and public construction
investment remained at a high level. The business climate remained
favorable until the business climate changed due to the expansion ofCOVID-19 from near the end of the fiscal year.
If the impact of COVID-19 is expected to continue, there will beconcerns about a decline in construction investment due to theadvancement of capital investment and restraint.

Construction Investment
70.0
60.0

51.3

50.9

50.0
40.0

22.6

Trillions of yen

56.6

58.7

60.7

60.9

62.1

63.3

20.2

21.0

21.3

20.7

21.6

22.3

22.6

PublicPrivate

30.0
20.0

28.7

28.3

2013

2014

36.4

37.7

39.4

40.2

40.5

41

2015

2016

2017

2018

2019

2020

Forecast

Forecast

Forecast

Forecast

10.0
0.0

From the Institute of Construction Economics

3

Three-Year Medium-Term Plan
Progress of Consolidated Results ①
1,800
1,600

1,537

1,400

80

1,483
1,360 1,357 1,4151,389

5766

72

FY20186042

1,2004743

Results40

1,000

FY2019Results

800
20600

FY2020400

Medium-02000

Operating income
OrdersTerm Plan
Profit attributableto owners ofNet sales

parent(Hundred million yen)

FY2018
MediumTerm Plan

FY2018Results

FY2019MediumTerm Plan

FY2019plan

FY2019Results

FY2020MediumTerm Plan

FY2020plan

Orders received

1,300

1,537

1,330

1,343

1,483

1,360

Undecided

Net sales

1,295

1,357

1,366

1,347

1,415

1,389

Undecided

Operating income

495762

6366

72

Undecided

Profit attributable toowners of parent

3242

40

424347

Undecided(Medium-Term Plan figures are as of May 11, 2018)4

Three-Year Medium-Term Plan
Progress of Consolidated Results②FY2018
MediumTerm Plan

FY2018Results

FY2019MediumTerm Plan

FY2019Plan

FY2019Results

FY2019MediumTerm Plan

FY2020
Plan

Operating income
margin

3.8%

4.2%

4.6%

4.7%

4.7%

5.2%

Undecided

Return on Invested
Capital (ROIC)

7.0%

8.1%

8.4%

8.4%

9.1%

9.2%

Undecided

Return on Equity(ROE)

9.0%

11.5%

10.6%

10.6%

11.3%

11.4%

Undecided

Equity ratio

36.0%36.6%

41.0%

41.0%

38.0%

47.0%

Undecided

Cost of capital(WACC)

5.0%

5.1%

5.0%

5.1%

6.0%

5.0%

Undecided

FY2019(Medium-Term Plan figures are as of May 11, 2018)

Interest expense

5118

Interest-Bearing Debt

11,364

Cost of debt

1.04%

10-year JGB yield

0.031%

βvalue1.147

Market Expected Yield

7.00%

Cost of Equity

8.02%

Market capitalization*

30,420

Tax-rate

30.4%

Cost of capital（WACC）

6.04%＊As of March 31,2020(Excluding treasury stock)(Millions of yen)

Three-Year Medium-Term Plan
Fund Injection PlanPlanning on investments of ¥20 billion
during the medium-term plan (three years)■ Plan for investments◆ Investment in technology and systems¥5 billion◆Investments for concessions and overseas growth(M&A and other activities)¥5 billion■ Plan for other uses of funds◆ Switch to cash for payments for the purpose ofbuilding stronger ties with subcontractors andother partner companies■ Fund injection resultsfrom FY2018 to FY20196¥10 billion

About ¥15 billion

Investment plan Technology ①
Technical research center Expansion and renovation(open at the end of March 2019)
SpecialFeature・ Top-class facilities in the Kansai region in therenovation field・ Cooperation with universities andpublic laboratories in the Kansai region

Renovation

・ Established training and meeting areas to train
young employees and engineers from partnercompanies, and provide hands-on training
・ Renewal of test equipment

Expansion

・ Establishment of seismic monitoring system
・ Installation of a multi-purpose laboratory space

Extension building

Panoramic view

7

Expansion Building and Multipurpose
Experimental Space Using Natural Light Illumination

Quake-absorbing dampers

Investment plan Technology ②
Renewal Branding PlanIn order to further differentiate, strengthen,and deepen our products,
we are preparing to improve market recognitionand create new business opportunities
by branding renewal technologies.

Exhibition scene8

Investment plan Technology ③
Promote aggressive efforts in new technologies and construction methods
We have developed a specially laminated fiber sheet.
Hanshin High-Speed Technology Co., Ltd. and K-F-C Co., Ltd. Jointly developed

This revolutionary method enables the use of a single-layer reinforcement that requires
multiple layers of construction. It is applicable not only to concrete but also to steel andBuilding Construction structures.
[Features]
1)High work efficiency: This material used is lightweight,
so it can be constructed with a simple scaffold evenat high places, and construction is easy in a short period.
2)High quality: High quality reinforcement is possible
with high performance impregnating agent without
occurrence of impregnation unevenness.
3)Low cost: Low cost because material cost is low,
construction is easy, and work time can be shortened.
4)Material selection according to strength:
Impregnating agents and reinforcing fibers can be selectedaccording to the required strength of reinforcement.

Exhibition in Bangkok, Thailand

This technology is currently under preparation for practical applicationin the Kingdom of Thailand.
9Investment plan System①

Utilization of BIM and CIM
We are actively introducing BIM and CIM, which make planes three-dimensional in order toimprove business efficiency.
We are promoting utilization at the design, construction planning, and construction
management stages.
○ Used to check the ceiling mounting procedure and workability of buildings
with complicated ceilings
Completion
Ceiling diagramby BIM○ Survey using a laser scanner to process data, which is ineffective shortening the construction
period and reducing costs.

3D ofsurveying
data

10Completion

Investment plan System②

Development of learning system using VR technology
We have developed a hands-on field training system using 3D models and VRs.
[Features]
1) 3D visualization of the working process makes it easy to grasp the flow of constructions.
2) Walk-through experience at 3D virtual site allows you to experience various sites
in a short period of time3) Quiz-style exercises and descriptions allow you to learn about quality-control andsafety-control (QCDSE) as knowledgeable.

Interior finish for apartment houses

Bar arrangement work

11

High-speed cross-bridge pier repair

Investment plan System③

Development of a skilled skill maintenance system
We have developed a system to visualize the skills and experiences (cans andknacks) of skilled workers.
You can aggregate the experienced worker movements and eye-line data into a cloud serverand extract the data on-site to take advantage of it in your actual work.
Ai-MAP SYSTEM consists of multiple systems, and its combination enables more effective
response. It can also be applied to communication methods in the event of a disaster, andwe will continue to develop this system with the aim of further improving production
efficiency.
Ai-MAP SYSTEM

12Investment plan Overseas
Other uses of funds planand◆To strengthen overseas operations
Corporate Name
Address
Business content

SINGAPORE PAINTS & CONTRACTOR PTE. LTD.
Singapore
Building painting and repair contracting

Percent ownership ofvoting rights

October 2018
October 2023

Acquisition of 80% of shares
Acquisition of 20% of shares plan

Reason for acquisition

Renewal business development in ASEAN region◆Cash payments to strengthen collaboration with partner companies
Cash ratio
improvement

・ From August 2018, the cash payment ratio was increased,

and the ratio of cash payments was increased to 90%.
・100% cash payment from January 202013

Return to Shareholders
Dividend payout ratio plan (revised on May 10, 2019)
Dividends

Dividend per share（¥/share）

350(2017 previously for even converted toOctorber 1,2018

Dividend payout ratio

a value after the reverse stock split）

Reverse stock split（％）

10share→1share

300

25.7％

15050

¥292

10.5％No dividend

5.4％

5.7％

¥2(¥20)¥8¥216¥16¥153（¥160）（¥15.3）（¥29.2）（¥21.6）302010¥2（¥20）¥5(¥50)(¥80)

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020(actual)(actual)(actual)(actual)(actual)(actual)(plan)(plan)00

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

Purchase oftreasury stock andCancellation

40

30.3％

200

60
50

40.5％

250

100

50.1％

Three-year Medium-Tern Plan

Details ofacquisition

・ Total number of shares to be repurchased: 330,000 shares (maximum)・ Total amount of purchase costs of shares: ￥1,000,000,000 (maximum)

Acquisition
Results

・ Shares purchased 313,600 shares
・ Purchase costs of shares ￥999,933,700・ Period from November 12, 2018 to January 16, 2019

Cancellation

・ Number of shares to be cancelled
430,000 shares(5.05% of the total number of issued shares before cancellation)
・ Date of cancellation May 31, 2019
・ Number of Shares issued
Before cancellation
8,508,629 shares
After cancellation
8,078,629 shares
14

Corporate Governance SystemTo further strengthen corporate governance
Structure of the Board・ Ratio of outside directors: 1/3(After the 85th Ordinary General Meeting of Shareholders to be held in late June of thisyear)
・ Including one female outside director

Composition of the Board ofCorporate Auditors

・ Ratio of Outside Corporate Auditors: Majority(After the 85th Ordinary General Meeting of Shareholders to be held in late June of thisyear)

Analysis and Evaluation ofthe Effectiveness of theBoard of Directors

・ Implemented using external organizations (FY2019)

Operation of the Nomination
and Compensation
Committee

・ Chaired by both committees Outside Directors
・ Ratio of Outside Directors: Majority
・ Number of days held (seven times in FY2018, nine times in FY2019)

Strengthening IR・ Briefings for institutional investors (held twice a year)
・ Briefing for individual investors started from this year(February 2020)

Stock holdings

・ Criteria for Judging Holding of Listed Stocks
Reduction if the benefits of dividends and construction profits are less than
Cost of capital (WACC) until March 31, 2019
Cost of equity from March 31, 2020
(Reference: End of March 2019:Total yield 14% > Cost of capital 5%End of March 2020:Total yield 16% > Cost of equity 8%)・Sale results: FY2018 1 billion yen ,FY2019 140 million yen★ Reduce strategic shareholdings to less than 10% of consolidated net assets
by the end of March 2022
15

Contribution to Society ①
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.

FY2019 New Initiatives
Sponsorship of the Japan
Blind Tennis Federation

Sponsorship of the JapanPhysically Disabled
Baseball Federation
National Convention 11/2･3

Spanish International
Convention 6/9
MR.OhnoBoys in the B1 class win
the club
Convention MVP

Sponsorship of Nara FM Program,「Akio Okamoto Nara Oku no Oku」
Appearance of public recording 11/23
16

Contribution to Society ②
FY2019 New Initiatives
Co-sponsorship and co-operation ofBuilding Construction Student Workshops
Since 2016/9, we have been supporting anddispatching lecturers to workshops where students
majoring in Building Construction, environmental,and design are staying in the region.
The photo shows the scene when it was held in Izumo.

Contributed to the Japan International Cooperative Organization (JICA)
through SDGs Promotion Private Bond issued by the Resona Bank, Ltd.

17

Air conditioner donated to Nara PrefecturalKoriyama High School through SDGs
Private Bond of Nanto Bank, Ltd.

2019 Topics
This section introduces the recent topics of Asanuma
2019/8/1
Held technology presentation meetings
2019/10/30 Presentation Meeting on Measures to Improve Workplace
Productivity
2020/2/21 Development of Experiential Field Education System Using VR

2019/8/23
The daily Kensetsu-Tsushin
Newspaper

2020/2/21
The Daily Engineering & Construction Newspaper

18

2019/11/8
The daily Kensetsu-Tsushin Newspaper

May, 2020
With Our Proud History,
Creating a Desirable Future

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