Aichi Steel Corporation · TSE:5482
Aichi Steel — FY2025 Earnings Presentation
33 slides from Aichi Steel's earnings presentation, May 7, 2026
Slide 1: Fiscal Year Ended March 2026 Financial Results Briefing
Ai c h i S t e e l G r o u p Fiscal Year Ended March 2026 Financial Results Briefing May 7, 2026 Ai c h i S t e e l C o r p o r a t i o n Naoki Ishii, Executive Vice President
Slide 2: Today's Content
Today’s Content 1 Details of the Financial Results for the Fiscal Year Ended March 2026 2 Financial Results Forecasts for the Fiscal Year Ending March 2027 3 Progress of Medium-term Management Plan Update Copyright © Aichi Steel Corporation 2026 All Rights reserved. 2
Slide 3: Today's Content
Today’s Content 1 Details of the Financial Results for the Fiscal Year Ended March 2026 2 Financial Results Forecasts for the Fiscal Year Ending March 2027 3 Progress of Medium-term Management Plan Update Copyright © Aichi Steel Corporation 2026 All Rights reserved. 3
Slide 4: Summary of the Financial Results Ended March 2026
Summary of the Financial Results for the Fiscal Year Ended March 2026 Sales and profits increased year-on-year, with both revenue and operating profit reaching record highs (Billion yen) Disclosed Change FY2024 FY2025 Change figures Change rate (2/3) 304.3 299.2 (Record +5.1 +2% Net sales high) 300.
Slide 5: Analysis of Changes in Operating Profit Ended March 2026
Analysis of Changes in Operating Profit for the Fiscal Year Ended March 2026 Operating profit increased YoY due to lower purchase prices, reduction of plant costs, higher profits at subsidiaries and other factors. [Exchange rate impact: +0.4 billion yen] Increase in Slide gap* operating profits +0.6
Slide 6: Net Sales and Operating Profit by Company Ended March 2026
Net sales and Operating Profit by Company for the Fiscal Year Ended March 2026 Hagane Company: Sales down, profit up Stainless Company: Sales down, profit down Kitaeru Company: Sales up, profit up Smart Company: Sales up, profit up (Billion yen) Net sales Operating profit FY2024 FY2025 Change FY2024
Slide 7: Factors Behind Difference in Operating Profit from the Disclosed Figure
Factors Behind Difference in Operating Profit from the Disclosed Figure (February 3, 2026) for the Fiscal Year Ended March 2026 Upswing in selling prices, overseas subsidiaries’ performance, etc. Comparison of operating profit with already disclosed figures (billion yen) Item Difference Factors behi
Slide 8: Year-on-Year Comparison of the Balance Sheet Ended March 2026
Year-on-Year Comparison of the Balance Sheet (Statement of Financial Position) for the Fiscal Year Ended March 2026 We will continue to work on improving asset efficiency by selling stock holdings, investing in growth and making shareholder returns Assets Liabilities and capital Assets: Decreased sl
Slide 9: Today's Content
Today’s Content 1 Details of the Financial Results for the Fiscal Year Ended March 2026 2 Financial Results Forecasts for the Fiscal Year Ending March 2027 3 Progress of Medium-term Management Plan Update Copyright © Aichi Steel Corporation 2026 All Rights reserved. 9
Slide 10: Financial Results Forecasts Ending March 2027
Financial Results Forecasts for the Fiscal Year Ending March 2027 We forecast net sales of 310 billion yen, operating profit of 17.5 billion yen and net profit of 11.3 billion yen. (The impact of the sharp rise in purchase prices due to factors such as the situation in Iran has not been reflected.)
Slide 11: Prerequisites for the Financial Results Forecasts Ending March 2027
Prerequisites for the Financial Results Forecasts for the Fiscal Year Ending March 2027 Sales volume (non-consolidated) Company Company Company Company (Electronic, Hagane (Specialty Steel) Stainless Steel (Stainless Steel) Kitaeru (Forging) Smart Magnets etc.) Year-on-year Year-on-year Year-on-year
Slide 12: Forecasts and Analysis of Changes in Operating Profit Ending March 2027
Financial Results Forecasts and Analysis of Changes in Operating Profit for the Fiscal Year Ending March 2027 Pursue “high-quality, low-cost” manufacturing capabilities and aim for further growth ⚫ Although we expect an increase in purchase prices, we expect to compensate for this with increases in
Slide 13: Dividends
Dividends ⚫ For the fiscal year ended March 2026, the normal dividend will be increased from 62 yen to 69 yen per share due to the upswing in performance, resulting in a total annual dividend of 145 yen per share, including the special dividend ⚫ In the fiscal year ending March 2027, we are planning
Slide 14: Today's Content
Today’s Content 1 Details of the Financial Results for the Fiscal Year Ended March 2026 2 Financial Results Forecasts for the Fiscal Year Ending March 2027 3 Progress of Medium-term Management Plan Update Copyright © Aichi Steel Corporation 2026 All Rights reserved. 14
Slide 15: Progress of Medium-term Management Plan Update (Contents)
Progress of Medium-term Management Plan Update (Contents) 1. Progress Toward Management Targets 2. Summary of Progress of Medium-term Management Plan Update 3. Progress of Business Strategies 4. Progress of Finance and Capital Strategy 5. Progress in Strengthening Foundations Copyright © Aichi Steel
Slide 16: Progress Toward Management Targets
1 | Progress Toward Management Targets Considering measures to further improve ROE moving forward Current medium-term FY2023 FY2025 management plan FY2030 (FY2024 - FY2026) ROE 2.9% 4.8% 4% or more 8% or more Net sales 296.5 304.3 340.0 400.0 [Billions of yen] Operating profit 10.3 17.3 15.0 28.0 [B
Slide 17: Summary of Progress of Medium-term Management Plan Update
2 | Summary of Progress of Medium-term Management Plan Update Medium-term management State of progress plan update details • Considering new line for expansion of high Contribution to multi- 1 value-added products pathways • Reorganizing facilities to improve profitability Business strategy • Made V
Slide 18: Progress of Business Strategies: Contribution to Multi-pathways, Specialty Steel
3 | Progress of Business Strategies ① Contribution to Multi-pathways Specialty Steel New steelmaking lines Considering competitive lines with excellent cost, quality and CN Cost An overwhelming upgrade of (Steelmaking variable work costs) CO2 emissions Investment amount steelmaking lines to handle t
Slide 19: Progress of Business Strategies: Forged Products
3 | Progress of Business Strategies ① Contribution to Multi-pathways Increase profitability of “mature businesses” by building a Forged products highly efficient production system through consolidation, reorganization and enhancement of facilities 部品群 Review対象動力源 戦略・戦術 and optimization of facilities
Slide 20: Progress of Business Strategies: Handling of Changes in Demand Areas
3 | Progress of Business Strategies ② Handling of Changes in Demand Areas Additional investment in VSSL, making it an equity method Push into India affiliate. Both companies agree to VSSL’s entry into the forging business Iron resource circulation scheme Expansion of steel materials business Expand
Slide 21: Progress of Business Strategies: Stainless Steel
3 | Progress of Business Strategies ③ Provision of Solutions to Social Issues Market slump. Aiming for recovery through thorough Stainless Steel cost reductions and creation of new demand Strategy for stainless steel business Domestic demand Toward the 2030 targets ⚫ Accumulation of internal efforts
Slide 22: Progress of Business Strategies: Smart Business
3 | Progress of Business Strategies ③ Provision of Solutions to Social Issues While steady progress has been made, accelerating the pace Smart of growth remains our primary challenge Business Growth image Electronic ⚫ Respond to growing demand for inverter parts parts in line with electrification an
Slide 23: Progress of Business Strategies: Backup Measures
3 | Progress of Business Strategies Backup measures ⚫ In addition to eliminating inefficiencies, logistics strategies Logistics developed with a view to reorganizing plant layouts reform ⚫ Aim to achieve a reduction of at least 3.0 billion yen by FY2030 ⚫ Under consideration to maintain and strength
Slide 24: Progress of Business Strategies: Logistics Reform
3 | Progress of Business Strategies Logistics reform 1. Highly efficient logistics network that thoroughly Pursuit of highly efficient transportation eliminates waste, irregularity and unreasonableness that is friendly to the environment and 2. Rectification of on-site logistics and development of h
Slide 25: Progress of Finance and Capital Strategy
4 | Progress of Finance and Capital Strategy Progressing as planned. Continue to implement equity capital control necessary to achieve ROE targets Cross-shareholdings (listed) Shareholder returns ⚫ Dividend payout ratio 40% or more (continue) ⚫ Sold 9 stocks in FY2024 and FY2025. Policy ⚫ Flexible s
Slide 26: Progress in Strengthening Foundations: Governance
5 | Progress in Strengthening Foundations Governance Transition to a company with an audit and supervisory committee to strengthen the supervisory function of the Board of Directors and speed up the decision-making process*1 *1. Subject to approval at the 122nd Annual General Meeting of Shareholders
Slide 27: Progress in Strengthening Foundations: Non-financial Capital Initiatives
5 | Progress in Strengthening Foundations “Non-financial Capital Initiatives” KPI 2030 target 2025 progress Progress ⚫ Investing to improve hot working environments Health and · Enhance cooling equipment in plants, install safety 0 cases 4 cases thermal shields, etc. · Remote and automated (work-fre
Slide 28: Appendix
Appendix Copyright © Aichi Steel Corporation 2026 All Rights reserved.
Slide 29: Management Targets in the Medium-Term Management Plan Update
Management Targets in the Medium-Term Management Plan Update (Published 25/2) Net sales Hagane Company (Specialty Steel) Kitaeru Company (Forging) 500.0 billion yen or more Stainless Company (Stainless Steel) Smart Company (Electronic, Magnets etc.) New products and others Net sales Operating profit
Slide 30: Analysis of Change in Operating Profit by Company Ended March 2026
Analysis of Change in Operating Profit by Company for the Fiscal Year Ended March 2026 (Billion yen) FY2024 FY2025 Sales Purchase Cost and Consolidated operating volumes Selling prices prices others subsidiaries operating Remarks profit profit Hagane Increase due to Company higher sales volumes (Spe
Slide 31: Statements of Cash Flows
Statements of Cash Flows (Billion yen) FY2021 FY2022 FY2023 FY2024 FY2025 Cash flows from operating activities 5.2 13.0 33.8 25.3 65.0 Cash flows from investing activities -15.5 -15.9 -18.8 -17.9 -17.2 Free cash flow -10.3 -2.9 14.9 7.4 47.7 Cash flows from financing activities -11.9 16.9 -16.2 -17.
Slide 32: Capital Expenditure, Depreciation, R&D Expense Trends
Capital Expenditure, Depreciation, R&D Expense Trends Research and development Investment amount Depreciation expenses (Millions of yen) (Millions of yen) (Millions of yen) 23,688 5,478 19,072 5,116 5,126 18,595 18,616 4,404 4,252 16,928 18,312 15,874 18,039 17,821 17,276 FY2021 2022年度 2021年度 FY2022
Slide 33: Thank you very much
Thank you very much Aichi Steel Corporation assumes no responsibility for any loss arising from the use, misuse, or distribution of this document or the information contained herein, or anything related thereto. The so-called forward-looking information contained in the materials used in this presen