Translated version - Adapt to our surroundings and aim for sustainable growth - Mid Term Plan May 2019木あすなろ建設Roundup of the previous mid term plan Recognizing our surroundings and key points going forward Basic policy & basic strategy, keywords Priority measures and initiatives to improve productivity 4 Strategies to enhance business capabilities Business strategies of group companies ESG and work style improvement initiatives Business goals (numerical targets) 9 Capital policy 1 2 3 5 6 7 8 2
■ Achievements and challenges in the previous mid term plan (1) Orders received, sales Orders were received in well-balanced fashion between base projects such as railroads and roads, renewable energy projects such as mega solar facilities, non-residential projects such as large distribution facilities and government buildings, and Private Finance Initiative projects. Challenges were expanding earthquake-resistance business and sales strategy for our condominiums. (2) Operating profit Consolidated operating profit reached a new record high in FY2017 but it decreased in FY2018 due to a decline in gross profit margin from fewer highly profitable projects in our architecture department, poor sales of our condominiums resulting from a slump in the apartment/condominium market, rising general and administrative costs due to improved working conditions and increased numbers of staff, and effects from low-profitability projects at group companies.
■ Consolidated performance by fiscal year

Recognizing our surroundings
· Investments for building infrastructure are continuing for now • More social infrastructure updates · Promoting “National Resilience” measures • Growth of the renovations market ・Technological innovations such as Al and robots • Less new construction projects • Less construction workers • Less households overall • Economic contraction from declining population • Post-Olympic economic uncertainty
Key points
sitive facto • Our own proprietary technology for disaster prevention and mitigation construction • Extensive track record in renewable energy-related construction • Industry-academia collaborative joint research • Our performance in public sector construction where we have competitive advantage psitive factor ogl  əvitegə • i-Construction must progress quickly • On-site engineers still stretched too thin • Productivity improvement is absolutely essential • Work style improvement initiatives are essential oet oviteba
- Outside-the-box thinking and strong fundamentals – Adapt to our surroundings and aim for sustainable growth ■ ■ Further bolster efforts toward renovation-related projects Get more projects and expand in private non-residential and private civil engineering ■ Develop the next new business after ABDS ■ Advance into new business (contract) categories (PFI, EPC, etc.) 5
Adapt to our surroundings and aim for sustainable growth Creation Outside-the-box thinking and strong fundamentals 6
■ Bolster efforts in transportation infrastructure口Enter the market in earthquake-resistance, and in public facilities management utilizing Public Private Partnership and Private Finance Initiative business ■ Bolster efforts in construction, including replacements, for wind power generation, micro-hydroelectric power generation, and mega solar口Develop and bolster business that utilizes real estate ■ Achieve at least an 80% rate of 8 days of facilities not in operation every four weeks, and 100% rate of 8 days off every four weeks for individuals ■ Improve productivity by embracing and actively implementing ICT, BIM, CIM, and AI technologies口  Boost cost competitiveness through collaborative and cooperative efforts with partner companies ■ Pursue thorough compliance and strengthen corporate governance ■ Bolster efforts that take ESG, SDGs, and capital cost into consideration 7
Construction business PFI business in Yokosuka Using BIM model data for construction (VR model room) ■ Enhance precision and productivity in construction by expanding our use of BIM and CIM ■ Boost productivity through AI, ICT, work done by robots, etc. ■ Strengthen relationships with partner companies by employing the MEISTER System, etc. ■ Advance into new business (contract) categories such as PFI and EPC And Hostel Kanda ■ Working through ABDS to secure land sites near stations in Tokyo, etc. ■ Working on real estate renovation projects such as hostels

Mirai Construction
口Engage in “National Resilience” and maintenance and repair, bolster technological capability口Embrace business use of i- Construction口Bolster efforts toward new offshore energy Toko Geotech口Develop next generation construction methods that the market desires口Build community-based sales systems口Add more automation, mechanization, and use of robots in construction work
Other group
companies
Aoki Marine □ Ensure the vessels they own are in operation to ensure profitability Asunaro Road ■ Utilize ICT technologies and improve productivity M’s ■ Boost proposal capabilities in conversion business Niigata Miraiロ   Boost construction capabilities in civil engineering projects Shimada Gumi □ Strengthen business base in Kanto and Kyushu
Renewable energy-related construction projects Hands-on learning for children during summer vacation口Measures to counter global warming: Bolster efforts toward renewable energy-related construction projects, etc.口Social contributions: Facility tours and hands- on learning with construction technology for preschool and school age children, etc.口Governance: Improve the effectiveness of the Board of Directors and strengthen governance, etc.
Work Style Improvements
Developing wall-climbing robots ■ Safety patrols by female employees Improve productivity through the use of ICT, AI, unitization, robot construction, etc. ■ Achieve at least an 80% rate of 8 days of facilities not in operation every four weeks, and 100% rate of 8 days off every four weeks for individuals by March 2022 ■ Designate Wednesday and Friday every week as “No Overtime Work Days” ■ Promote the advancement of women
Consolidated net profit for the fiscal year indicates net profit attributable to owners of the parent. 11
■ Basic policy on profit sharing We consider shareholder returns to be a key management issue. Our policy is to strive to improve shareholders’ equity needed to bolster our financial standing, while maintaining a stable dividend and providing returns from our profits according to our business performance.
■ Dividend by year

Note: Information within these materials which pertains to future developments was created based on available information at the time the materials were created. There are several factors which could result in actual future performance differing from what is indicated in these materials. Additionally, these materials were created with the intention of providing reference information to be used by investors for their investment decisions, and do not constitute any sort of effort to solicit the purchase or sale of Asunaro Aoki stock.