Annual Securities Report（April 1,2024 - March 31,2025）

(English Translation)

March 31, 2025

1. Financial Information

   1. Basis for Preparation of Consolidated and Non-consolidated Financial Statements

      1. The consolidated financial statements of AICHI CORPORATION (the "Company") are prepared in accordance with the "Regulation on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements" (Ministry of Finance Order No. 28 of 1976).

      2. The non-consolidated financial statements of the Company are prepared in accordance with the "Regulation on Terminology, Forms, and Preparation Methods of Financial Statements" (Ministry of Finance Order No. 59 of 1963; hereinafter the "Regulation on Financial Statements").

         The Company falls under the company allowed to file specified financial statements and prepares its non-consolidated financial statements pursuant to the provision of Article 127 of the Regulation on Financial Statements.

   2. Audit Certificate

      The Company's consolidated and non-consolidated financial statements for the fiscal year ended March 31, 2025 were audited by PricewaterhouseCoopers Japan LLC, in accordance with the provisions of Article 193-2, Paragraph 1 of the Financial Instruments and Exchange Act.

   3. Special Measures to Ensure the Appropriateness of Consolidated Financial Statements, etc.

The Company has taken special measures to ensure the appropriateness of consolidated financial statements, etc. Specifically, the Company endeavors to establish a framework that allows the Company to appropriately understand the details of accounting standards and other relevant information and accurately respond to changes in the standards by joining the Financial Accounting Standards Foundation and participating in seminars organized by the Foundation. The Company has explored the possibility of adopting the designated International Financial Reporting Standards in the future.

1. Consolidated Financial Statements, etc.

1. Consolidated Financial Statements
   1. Consolidated Balance Sheets

      (Thousands of yen)

      As of March 31, 2024 As of March 31, 2025

      Assets

      Current assets

      Cash and deposits	42,131,006	46,871,546
      Notes receivable - trade	*4 5,388,054	2,282,192
      Accounts receivable - trade	11,690,930	13,932,423
      Merchandise and finished goods	2,819,650	1,904,576
      Work in process	1,643,386	1,172,573
      Raw materials and supplies	1,562,785	4,011,703
      Other	592,449	873,430
      Total current assets	65,828,262	71,048,447
      Non-current assets
      Property, plant and equipment
      Buildings and structures	20,094,861	20,160,813
      Accumulated depreciation	(13,439,088)	(13,936,251)
      Buildings and structures, net	6,655,773	6,224,561
      Machinery, equipment and vehicles	10,243,708	10,782,454
      Accumulated depreciation	(8,831,923)	(9,335,962)
      Machinery, equipment and vehicles, net	1,411,784	1,446,491
      Tools, furniture and fixtures	3,057,019	3,064,141
      Accumulated depreciation	(2,857,974)	(2,895,682)
      Tools, furniture and fixtures, net	199,044	168,458
      Land	*1 8,522,521	*1 9,648,734
      Leased assets	732,253	618,109
      Accumulated depreciation	(505,936)	(421,673)
      Leased assets, net	226,317	196,435
      Construction in progress	134,614	1,519,142
      Total property, plant and equipment	17,150,055	19,203,823
      Intangible assets	651,201	599,350
      Investments and other assets
      Investment securities	7,066,511	5,395,663
      Retirement benefit asset	600,466	940,995
      Other	*2 3,630,421	*2 3,175,773
      Allowance for doubtful accounts	(5,301)	(5,107)
      Total investments and other assets	11,292,097	9,507,325
      Total non-current assets	29,093,354	29,310,499
      Total assets	94,921,617	100,358,946

      (Thousands of yen)

      As of March 31, 2024 As of March 31, 2025

      Liabilities

      Current liabilities

      Notes and accounts payable - trade	7,372,886	9,617,405
      Lease liabilities	72,642	59,582
      Income taxes payable	862,617	1,790,996
      Provision for bonuses for directors (and other officers)	38,000	26,000
      Provision for product warranties	133,476	125,071
      Other	*3 2,430,428	*3 2,993,834
      Total current liabilities	10,910,051	14,612,890
      Non-current liabilities
      Lease liabilities	183,348	154,999
      Deferred tax liabilities	1,383,340	913,396
      Deferred tax liabilities for land revaluation	*1 616,302	*1 616,302
      Other	39,511	37,787
      Total non-current liabilities	2,222,503	1,722,485
      Total liabilities	13,132,554	16,335,376
      Net assets
      Shareholders' equity
      Share capital	10,425,325	10,425,325
      Capital surplus	9,923,342	9,923,342
      Retained earnings	56,428,242	59,705,918
      Treasury shares	(8,939)	(9,231)
      Total shareholders' equity	76,767,970	80,045,354
      Accumulated other comprehensive income
      Valuation difference on available-for-sale securities	4,025,637	3,002,523
      Revaluation reserve for land	*1 (1,624,044)	*1 (1,624,044)
      Foreign currency translation adjustment	1,218,929	1,126,307
      Accumulated remeasurements of defined benefit plans	1,400,570	1,473,428
      Total accumulated other comprehensive income	5,021,092	3,978,215
      Total net assets	81,789,062	84,023,570
      Total liabilities and net assets	94,921,617	100,358,946

   2. Consolidated Statements of Income and Consolidated Statement of Comprehensive Income Consolidated Statements of Income

For the fiscal year ended March 31, 2024

(Thousands of yen)

For the fiscal year ended March 31, 2025