Financial Results Briefing for
the Second Quarter of the Fiscal YearEnding March 31, 2021
With Our Proud History,
Creating a Desirable Future

November 20, 2020 (Friday)
Asanuma Corporation
Securities Code :1852

This material contains forward-looking statements
regarding the Company's business performanceand future 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 ContentsPage

ItemP3Business Environment

P4

Overview of the Second Quarter ofthe Fiscal Year Ending March 31,2021

P5～

Three-Year Medium-Term Plan
Progress of Consolidated Results

P7～

Three-Year Medium-Term Plan
Fund Injection Plan

P14

Return to Shareholders
Dividend payout ratio plan

P15

Corporate Governance System

P16～

Contribution to Society

P18

Topics2Business Environment

Constructionindustry

The expansion of COVID19 led to the economic downturn, including thedisappearance of inbound tourists and a drop in consumer spending.
In Private construction-related investment, demand for logistics facilities
remained firm due to changes in lifestyles, while housing demand declined
and capital investment was discontinued or postponed. Due to BUILDINGNATIONAL RESILENCE, public construction investment remained firm,
including disaster prevention and mitigation measures for repeated natural
disasters, measures for aging infrastructure, and demand for disasterrecovery and reconstruction. If the Corona crisis persists in the future, there
are concerns about a decline in construction investment due to further
postponement or restraint of capital investment.

Construction Investment
80.0
60.0
40.0
20.0

51.3

50.922.6

22.6

28.7

28.3

2013

2014

56.6

58.7

20.2

21.0

（Trillions of yen）

61.3

63.4

65.4

63.9

21.8

23.1

24.9

25.9

58.2
21.2

PublicPrivate

36.4

37.8

39.5

40.3

40.5

38.0

37.0

2015

2016

2017

2018

2019

2020

2021

Forecast

Forecast

0.0

3

Forecast
Forecast
By Reserch Institute of Construction and Economy

Overview of the Second Quarter of
the Fiscal Year Ending March 31,2021( Hundred million yen)

FY2018
Q2
Results

FY2019Q2
Results

FY2020Q2
Plan

FY2020
Q2
Results

YoY

Ratio tothe plan

Orders received

695

699630563△136△67Net sales

549687

566634△5368

Operating income

152.8%

344.9%

132.3%

223.4%△12△1.5P

91.1P

101.8%

223.2%

71.3%

122.0%△9△1.2P

50.7P(Margin)

Profit attributable toowners of parent

Net profit(Margin)4

Three-Year Medium-Term Plan
Progress of Consolidated Results ①(Hundred million yen)

MediumTerm Plan

FY2020Plan

MediumTerm Plan
3 years
Average

Results
and Plan
Average

1,483

1,360

1,261

1,330.0

1,427.0

1,366

1,415

1,389

1,345

1,350.0

1,372.3

576266725361.0

58.7

424043474039.7

41.6

MediumTerm Plan

FY2018Results

FY2019Orders

1,300

Net sales
Operatingincome
Profit attributableto owners ofparent

FY2018

MediumTerm Plan

FY2019Results

FY2020

1,537

1,330

1,295

1,357

4932

Net income(Figures in the medium-term plan are as of May 11, 2018)5

Three-Year Medium-Term Plan
Progress of Consolidated Results ②Major Management Indicators in the Medium-Term Plan
(Consolidated for Fiscal 2020, the Final Year)
Operating income margin

Over 5%Return on Equity (ROE)Over 10.0%

Equity ratio

40% level

Return on Invested Capital

Exceed the cost of capital in all three years

FY2018

MediumTerm Plan

FY2018Results

FY2019MediumTerm Plan

FY2019Results

FY2020MediumTerm Plan

FY2020Plan

MediumTerm Plan
3 years
Average

Results
and Plan
Average

Operating income
margin

3.8%

4.2%

4.6%

4.7%

5.2%

3.9%

4.5%

4.3%

Return on equity

9.0%

11.5%

10.6%

11.3%

11.4%

10.0%

10.3%

11.4%

Equity ratio

36.0%

36.6%

41.0%

38.0%

47.0%

43.0%

41.3%

40.5%

Return on Invested
Capital (ROIC)

7.0%

8.1%

8.4%

9.1%

9.2%

7.0%

8.2%8.8%

Cost of capital

5.0%

5.1%

5.0%

6.0%

5.0%

6.0%

5.0%

5.4%

(ROE)

(WACC)(Figures in the medium-term plan are as of May 11, 2018)6

Three-Year Medium-Term Plan
Fund injection Plan
Planning on investments of ¥20 billion
during the medium-term plan (three years)
MediumTerm Plan

Investment
Results andSchedule◆ Investments in technology and systems¥5 billion¥2 billion◆ Investing in New Domains (Overseas and New Fields)¥5 billion¥1.5 billion◆ Switch to cash payments to subcontractors tostrengthen partnership¥10 billion¥14.5 billion

Total¥20 billion¥18 billion■ Investment plan

■ Application of funds

7

Investment Plan
Technology and Systems ①
Expansion and renovation of the Technical Research Institute(opened at the end of March 2019)1

Expansion of training areas
・ Training for young employees and engineers at partner companies,
and hands-on training

2

Advancement of seismic isolation and vibration control technologies
・ Seismic damping structure equipped with an earthquake monitoring
system・ Updating test equipment

3

Installation of a multi-purpose experimental space・ Large experimental space for all-weather response

Training area of one existing building

Seismic dampers
in two additional buildings

Multi-Purpose Experimental
Space Using Natural Lightingin Three Expansion Buildings

Full view8Investment Plan
Technology and Systems ②

Developed to pass on skills of skilled workers at work sites
and improve productivity
Details

Characteristics

Skill operation analysis

Mount GPS cameras and sensors to a skilled
person, or analyze movies, behaviors, andsounds as data through movie shooting.

Inheritance ofskills

Infrastructurecommunication
management

Promoting the implementation andstreamlining of production management atremote sites through the use of
telecommunications systems

Productivityimprovement

9Effect

Investment Plan
Technology and Systems ③
BIM and CIM utilization
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, andconstruction management stages.
○ Buildings with complex tops are taken from 3D Scanners to verify the construction process and datum ofrenovations (BIM)

General view of the hole

Drawing inside the ceiling of the hall

○ Imaging of data from 3D Scanners for use in assessing conditions in the ground and managing processes(CIM)

General view

Made national highway bridge piles, etc. into 3D

10

Situation of Piles in the GroundInvestment Plan
Technology and Systems ④
Restructuring of the core system

Comprehensive cloud computing for sales, integration and design, accounting,and personnel and payroll systems
Updating of various mission-critical systems in the management division

Sales, integration, and design
SystemRestructuring of cloud-based business management
Infrastructure Promoting Operational Efficiency
Accounting system

Personnel/wage payment system

Restructuring system11

Investment Plan
New Domains ①Strengthen overseas business〇 Acquisition of subsidiaries
Corporate Name
Address
Business content

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

Percent ownership ofvoting rights

October 2018 Acquisition of 80% of shares
October 2023 Acquisition of 20% of shares plan

Reason for acquisition

Renewal business development in ASEAN region〇 Efforts to Maintain Aging Expressways and Bridges in the Kingdom of Thailand
Using textile sheets, we are engaged in the maintenance business of aging expressways andbridges in the Kingdom of Thailand.
In recent years, public infrastructure investment in the Kingdom of Thailand has grown
remarkably, and the demand for maintenance business has been rising along with this.
We are working as part of our efforts to strengthen our renewal business and expand ourbusiness in ASEAN region.

12Investment Plan
New Domains ②
Branding of the renovation business〇 With an emphasis on people and the environment
suitable for the age of the global environment
Launch of new renewal brands(Scheduled to be announced in April,2021)

BusinessPlan〇 Improve renovation services

Life Cycle
Management

Unification of reception desks
Strengthen lifecycle services

Reception

Customers

Survey and design

Maintenance andmanagement

Order placement

Renovation
Order forconstruction

13

Return to Shareholders
Dividend payout ratio plan
Transition

Purchase of treasury stock and Cancellation
・ Shares purchased 313,600 shares
・ Purchase costs of shares ￥999,933,700・ Period from November 12, 2018 to January 16, 2019
・ Number of shares 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 General Meeting of Shareholders held in June 2020)
・ Including one female outside director

Composition of the Board ofCorporate Auditors

・ Ratio of Outside Audit & Supervisory Board Members: 3/4(after the General Meeting of Shareholders held in June 2020)

Analysis and Evaluation of theEffectiveness of the Board ofDirectors

・ Implemented using external organizations (since FY2019)

Operation of the Nominations
and Compensation Committee

・ Chaired by both committees Outside Directors
・ Ratio of Outside Directors: Majority
・ Number of days held (7 times FY2018, 9 times FY2019, 4 times FY2020)

Strengthening IR・ Briefings for institutional investors (held twice a year)
・ Briefings for individual investors (The first meeting was held in February of this year,
and will be held twice a year in the future)

Stockholdings

・ 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 Contributions 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 FY2019
The Japan Physically Disabled
Baseball Federation
National Convention November,2019

The Japan Blind Tennis
FederationSpanish International
Convention June,2019MR.OhnoBoys in the B1 class win
the club
Convention MVP

Nara FM Program,「Akio Okamoto Nara Oku no Oku」
Appearance of public recording September,202016

Contribution to Society ②
Other activities
Co-sponsorship and co-operation ofBuilding Construction Student Workshops
Since September,2016, 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 at Todai-ji Temple
in September,2020.

17

FY2020 Topics
Here are the recent topics of Asanuma group.
2020/7/2

Awarded the 17th Public Building
Construction Award for Excellence
2020/8/3 Acquired JNLA certification
2020/8/27 Held technology presentation meetings

2020/8/3 The Daily Engineering& Construction Newspaper"Cosmos Fukiage-kan" Winner of the 17th Public Building
Construction Award for Excellence

2020/8/27 The Daily Engineering & Construction Newspaper18

With Our Proud History,
Creating a Desirable Future

November 20, 2020
Contact
Corporate Communications Dept.
Tel 06-6585-5500

Fax 06-6585-5556