Daihatsu Infinearth Mfg.co.,ltd. TSE:6023

Daihatsu Infinearth Mfg : FY 2026 Earning Release Presentation

Published June 23, 2026 at 6:00 a.m. UTC

Source: MarketScreener

Presentation Material for Financial Results Briefing Full Term of the Fiscal Year Ended March 31, 2026

Daihatsu Infinearth Mfg. Co., Ltd.

(Securities code: 6023)

May 19, 2026

Summary of Financial Results

Progress of Medium- to Long-Term Vision and FY2027 Forecast

Appendix

p.3

p.9

p.26

Summary of Financial Results

Summary

Maintenance-related sales remained at a high level above target and exceeded the revised plan.

FY2025 (Million yen) Full-year results	FY2026 Full-year results	YoY difference Increase/Decrease	(%)	FY2027 Full-year plan Full-year plan YoY (%)
Net sales 88,781	88,066	-714	-0.8	104,000	18.1
Operating 7,634	7,621	-12	-0.2	8,000	5.0
Ordinary 7,603	7,959	355	4.7	8,000	0.5
Net income 5,717	5,920	203	3.6	5,700	-3.7
Net income per 180.92	232.90	52	28.7	224.13	-3.8
Total assets 96,107	110,498	14,390	15.0	-	-
Equity ratio (%) 45.9	44.7	-	-	-	-

income income

share (yen)

Operating Income YoY Difference Analysis

Operating income was at around the same level as FY2025, as the negative impact of increased fixed costs was offset by an increase in maintenance sales, the impact of foreign exchange rates, etc.

(Million yen)

7,634 7,621

25年3月期

エンジン

メンテナンス

その他部門

FY2025

Engines Maintenance Other

sections

Currency exchange

Research expenses

Non-current costs, etc.

為替

研究費

固定費他

26年3月期

FY2026

Net Sales and Earnings for the Internal Combustion Engine Section

Although net sales declined due to an increase in the proportion of small and medium-sized engines, section earnings rose due to an increase in maintenance revenue.

Net sales Earnings for the internal combustion engine section

(Million yen)

100,000

90,000

Marine-use (Japan) Marine-use (overseas)

Land-use (Japan) Land-use (overseas)

84,493 83,375

78,228

(Million yen)

14,000

12,000

11,458

10,936

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

580

9,379

43,026

25,243

208

11,335

47,586

25,364

190

11,355

45,404

26,425

10,000

8,000

6,000

4,000

2,000

7,996

March 2024 March 2025 March 2026

*Including maintenance related *Including maintenance related

Unit Sales and Maintenance-related Net Sales

Unit sales trended at the same level as FY2025.

Maintenance revenue was strong as the operational rate of vessels improved.

Units sold Maintenance-related net sales

(Unit: Units)

Marine-use (Japan) Marine-use (overseas) Land-use (Japan)

(Million yen)

900

800

700

600

500

400

300

200

100

775

295

426

838

345

423

833

391

374

45,000

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

34,373

38,761

40,527

March 2024 March 2025 March 2026

Order Backlog

The order backlog increased greatly and was 51.2% up compared to the previous year as orders received for the operation of the new Himeji Factory progressed.

The share of dual-fuel engines increased greatly from the 9% of March 2025 to 25%.

Change in order backlog Proportion of order backlog by model (as of March 2026)

(Million yen)

Marine-use (Japan) Marine-use (overseas)

Land-use (Japan) Land-use (overseas)

120,000

100,000

80,000

60,000

40,000

20,000

363

64,359

6,725

28,028

28,202

369

75,064

6,790

37,338

29,267

567

113,500

8,951

64,932

37,352

Small and medium-sized engines

46%

Duel fuel engines 25%

Large engines 29%

March 2024 March 2025 March 2026

Progress of Medium- to Long-Term Vision and FY2027 Forecast

The Long-Term Vision (reposted)

We aim to contribute to net-zero emissions in the shipping and marine equipment industries and to expand our business scale. We will do this by servitization and providing broader new solutions primarily in response to new fuels.

From the present to 2030

From 2030 to 2050

2050

Strategic policies

Individual strategies

Build systems for long-term growth and enhance profitability.

Commercialize new-fuel-compatible engines.
Reinforce the system for servitization business.
Extend business domains through M&A and alliances.
Accelerate growth to realize the vision based on the new system.
1. Increase sales of engines compatible with new fuels
2. Expand the servitization business.
3. Provide broader solutions.

Contribute to net zero emissions.

Rough idea of earnings

Operating income EBITDA

Profit is pushed down by depreciation, resulting from investment for growth.

Intend to enhance ROE through initiatives including

Initiatives from the present to 2030 will start making a full-scale contribution.

Develop into one of the core companies in the marine equipment industry.

establishing the servitization business and disciplined M&A.

Medium- to Long-Term Vision and FY2027 Plan

There has been no change to the medium-term management targets revised in November 2025. We expect increased revenue in FY2027 due to an increase in sales of large engines.

(Million yen)

FY2024

(results)

FY2025

(results)

FY2026

(results)

FY2027

(plan)

Current plan

(revised November 2025)

By FY2028

FY2031 Targets

Net sales	81,775	88,781	88,066	104,000	100,000	120,000
Operating income	5,194	7,634	7,621	8,000	9,000	12,000
Operating margin	6.4%	8.6%	8.7%	7.7%	9.0%	10.0%
EBITDA	8,032	10,618	10,701	11,000	13,600	18,000
EBITDA margin	9.8%	12.0%	12.2%	10.6%	13.6%	15.0%

Net income

5,149

(4,141*)

5,717

5,920

5,700

6,000

8,000

ROIC

5.7%

9.1%

8.6%

8.5%

7.5% or more

8.0% or more

ROE

10.1% (8.3%*)

12.0%

12.7%

11.1%

12.0% or more

*Figures excluding gain on sale of stocks and others

(Assumed exchange rate: FY2027: 145 yen to the dollar; medium-term management targets: 140 yen to the dollar)

Forecast Change Against FY2027 Plan

While engines are driving increased profit, we expect a decrease in maintenance revenue and an increase in fixed costs.

(Million yen)

7,621 8,000

26年3月期

エンジン

メンテナンス

その他部門

FY2026 Engines Maintenance Other

sections

Currency exchange

Research expenses

Non-current costs, etc.

為替

研究費

固定費他

27年3月期計画

FY2027 plan

Significant Increase in Order Backlog Due to Completion of New Factory

Order backlog increased significantly as a result of strengthened order-taking activity in conjunction with the expected completion of the new Himeji Factory

From FY2027 on, we will prune this order backlog through the start of operations at the new factory.

We will continue the significant increase in

Total order backlog

(100 million yen)

order backlog, especially in areas related to the new Himeji Factory.

750

1,010

1,135

Container ship

Approx. times YoY

Tanker

Approx. increase YoY

Car carrier

Approx. increase YoY

Bulk carrier Approx. 20% increase YoY

End FY25 End 2Q

FY26

End FY26

End FY25 End 2Q

FY26

End FY26

End FY25 End 2Q

FY26

End FY26

End FY25 End 2Q

FY26

End FY26

End FY25 End 2Q

FY26

End FY26

Plan for Investment for Growth: Response to Next-Generation Fuels

(Investment in Production Factory)

Construction of Himeji Factory finished at the end of 2025 and we started operations in February 2026.

Himeji Factory Moriyama Factory

Effects due to completion of Himeji Factory

Expected units sold at Himeji Factory

Expected expansion of

about times compared to FY2026

FY26 FY27 FY28

Large engine production shift

Large engines will be handled at

Completion will realize the acceleration of the modal shift and shortening of
Moriyama
Factory
Truck transport Maritime transport
Customer
the more efficient Himeji Factory.
manufacturing lead times by enabling direct maritime transport immediately after manufacturing (figure on right).
We have facilities for next-generation

Under the Road Traffic Act, large engines must be disassembled for transport by truck.
Re-adjustments and quality assurance occur in association with re-assembly at the sale destination.
Moriyama Factory has shifted to
production centered on medium-and small-sized engines.
Standardizing models will realize
fuel-compatible engines, enabling us
Himeji Factory
Maritime transport
Customer
improvements in productivity.
to advance R&D on various
next-generation fuels.
- Truck transport is no longer required and direct maritime transport is possible.
- As a result, we have eliminated processes such as disassembly, reassembly, adjustment, and quality assurance.

Plan for Investment for Growth: Logistics Reform

Plans to build a new logistics center in the vicinity of Moriyama Factory in light of strong maintenance business and engine sales.

Support sales promotion and further expand parts sales business by securing land for inventory storage and consolidating logistics.

New logistics center (Moriyama) Planned construction site →

Consolidate logistics at Moriyama Factory No.1 and Factory No.2 to improve factory production efficiency and shorten lead times.

← Image of the completed new logistics center

Realize labor and manpower saving through the introduction of automated equipment.

Establish a logistics system that can respond to an increase in engine production capacity and the expansion of parts sales.

Factory No.2

Factory No.1

: Site planned for expansion

Total investments: Approximately 10 billion yen

Operation target Spring 2028 Expected effects

Expansion of parts sales
100% same-day shipping through a single integrated process of receiving to storing to shipping
Consolidation of logistics of engine bodies
Parts for 1,200 vehicles can be
stocked and distributed
50% reduction of on-site logistics moves by consolidating logistics
© 2026 DAIHATSU INFINEARTH MFG.CO.,LTD. 15

Growth Investment Plan: Construction of a New Fuel Injection Equipment Factory
We have decided to construct a new factory at a subsidiary in Gunma aimed at the increase in demand for marine engines and promoting the development of new fuel engines.
We will stabilize production and promote research and development of fuel injection-related parts.
Image of the new Gunma factory of Nippon Nozzle Seiki Co., Ltd. (Meiwa-machi, Ora-gun, Gunma Prefecture)
North
Factory building
Test building

Administration and welfare building

Operation target: Winter 2027 Expected effects

Expansion of internal production of injection-related parts
Increase production capacity and improve QCD by expanding internal production
Development of injection equipment for new fuel engines

Accumulate technical knowledge and improve development capabilities by conducting fuel injector development within the group

R&D Trends in Engines Compatible with Next-Generation Fuels

Steady progress in R&D for each engine compatible with next-generation fuels Soonest commercial release of the methanol DF engine is targeted for 2027.

Methanol DF engine

8IE33M

The first unit is

scheduled for shipment in 2027.

Ammonia DF engine Development continues for commercial release in 2028

Responding to increasing demand for ammonia fuel carriers, car carriers, and other vessels
Field testing is scheduled to begin at Moriyama Factory in July 2026.
6IE33M
Production scheduled at the new Himeji
Ammonia DF engine (under installation)
Ammonia distribution facilities (scheduled for completion at the end of May)
(IE833M actual testing machine)
Factory LNG-DF engine
Responding to increasing
Japan's first large, medium-speed 4-stroke methanol engine
Responding to increasing demand for large container vessels
Continuing actual testing to achieve best-in-class efficiency and high mixed combustion rates
Obtained AiP from the Classification Society for "structure equipped with a high-pressure methanol pump"

demand for LNG-DF as an environmentally friendly engine

We have achieved significant GHG reductions and succeeded in the further reduction of our environmental impact.

LNG bunkering vessel equipped with a demonstration unit

Research and Development Trends Contributing to GHG Reduction * Power Module Integrator Initiatives

Power module systems Variable speed engine

We are strengthening our involvement in onboard systems, centered on engines, and promoting solution proposals such as the reduction of environmental impact and operating costs through the optimization of onboard power systems.

Variable-frequency generator
Provision of optimal engine specifications and energy-saving systems
We will start equipping new vessels and also plan to respond at any time to demand for retrofitting, etc.
DDVF and ESS for electric-powered vessels
Shaft generator and propulsiodn motor, and ESS for hybrid propulsion vessels

*DDVF (Daihatsu Delight Variable Frequency):

Patented variable-frequency control for electric-powered vessels

*ESS (Energy Storage System):

Hybrid power system comprising batteries, fuel cells, etc.

DDVF (Daihatsu Delight Variable Frequency)

DDVF is a technology that controls the rotational speed of a power generation engine to vary the power supply frequency.

Doing so contributes to the improvement of fuel efficiency and GHG reductions by controlling the engine's rotational speed and using the generator within its most efficient range.

Control the motor's Main distribution rotational speed panel

Change the power frequency

Generator

Rotational speed command

Control equipment

AC grid × battery

Providing new value as an electricity module integrator

DC grid × battery

Integrated power management realizes stable power supply.

Improvement of fuel efficiency due to DDVF In addition to the advantages of conventional electric propulsion

systems, controlling the generator's rotational speed within the normal vessel speed range enables operation in a low-fuel-consumption range. This

Engine power (kW)

Fuel efficiency is better at 750 min-1

Marine performance curves

Realizes greater efficiency while using existing systems.

FPP controls the motor's rotational speed using an inverter
CPP controls wing angle and is relatively inexpensive

System configurations using proven, conventional equipment are possible

AC busbar

Battery

Highly compatible with FPP without depending on generator frequency
Compatible with systems that incorporate batteries

DC busbar

Battery

Variable

demonstrates effects in combination with FPP or CPP drive systems.

Electric motor

Inverter Generator

Electric motor

AC busbar

Onboard load, etc.

Generator

Constant fuel consumption curve:

Lines connect areas with the same fuel efficiency. Fuel efficiency improves as you move toward the center of the circle.

750 min-1

50 Hz

900 min-1

60 Hz

Response to Next-Generation Fuels (reposted)

We will proceed with the development of engines compatible with next-generation fuels, which are an essential factor in achieving GHG zero in 2050, with all candidates for such engines put under development simultaneously. For methanol and ammonia, commercial-use engines are scheduled to be released in 2026 and 2028, respectively.

Roadmap for next-generation fuel development

Now

to 2030

to 2050

LNG

Lineup completed Already shipped

2026

Sales expansion

Methanol Ammonia

Production of commercial engines to begin

2028

Target of shipping commercial engines

Sales

expansion

Sales expansion

Hydrogen

Biofuels

Already handled with existing diesel

Basic

experiment

We will consider a commercial release date in 2030 or after

We will strive to develop more efficient engines by 2030 (development can be advanced with the existing engine technology).

Simultaneously, we will continue coming up with solutions such as fuel cells, carbon capture, and renewable energy in preparation for a future change in fuel source.

Digital Transformation Trends

DX has penetrated the company and we have obtained the "DX certification" established by the Ministry of Economy, Trade and Industry.

We provide "DD-PASSPORT" for seafarers as a strategic tool of our servitization business.

Acquisition of DX certification

DD-PASSPORT

A digital tool screen that allows the user to retrieve various information on our engines.
DX objective
- Realization of value creation and greater efficiency across the value chain as a whole through the development and use of an integrated data platform
- Renewal of the business processes of all divisions through the improvement of DX skills
- Building of digital infrastructure for servitization business
- Management innovation based on data
- Practice of human capital management (realization of a workplace environment that fosters job satisfaction and personal growth)
  © 2026 DAIHATSU INFINEARTH MFG.CO.,LTD. 20
  
  Market Environment
  The exchange rate assumption for FY2027 is 145 yen to the dollar. While the weak yen continues, the impact on engines is expected to be small since they are hedged at the time of order placement, but the relative price competitiveness of parts is improving.
  Exchange rate trend (JPY/USD)
  Around 158 yen per dollar as of May 15, 2026

(JPY/USD)

170

Sum of impacts from currency exchange fluctuations

Small impact regarding

160

150

Engines

engines due to currency hedging at the time of receiving orders.

140

130

120

110

100

Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26

Parts

If currency exchange fluctuations cause changes to prices, there can be impacts on demand, etc.

Yen's depreciation will have a positive impact.

Summary of the Impact on the Company of the Situation in the Middle East

Organize areas that may be related to Daihatsu Infinearth due to the situation in the Middle East. No significant impacts are apparent at this point, and we are monitoring the situation closely.

Changes in energy prices

Exchange rate fluctuations

Soaring material costs and procurement risks

Crude oil prices are rising against the backdrop of the blockade of the Strait of Hormuz, etc.

The dollar, the reserve currency, is strengthening due to escalating tensions in the Middle East.

There are impacts on naphtha products, etc., in particular against the backdrop of rising crude oil prices.

Decrease in repair budgets for shipowners because of decreased profits due to increased operating costs

No impacts currently stand out.
We assume that measures will be taken to pass on costs to shippers.
Regarding the weak yen and strong dollar, engines are hedged when orders are received, but parts are impacted by exchange rate fluctuations.
In the case of a weak yen and strong dollar, the price competitiveness of parts improves relatively.

On the other hand, we recognize that it is difficult to act based on assumptions regarding exchange rates, given factors such as the possibility of a policy rate hike and the currency intervention implemented at the end of April.

Delays in delivery due to being unable to procure necessary parts.

No impacts currently stand out.

Although no major impacts are apparent at this point, the situation remains uncertain and requires close monitoring.

Our policy is to work on prompt updates corresponding to changes in the situation.

Capital Allocation

We are leaving in place the plan revised in the first half of FY2026.

Basic policy for capital allocation for five years from the fiscal year ended March 2024 to the fiscal year ending March 2028

(billion yen)

Upward revision

50 billion yen →

60 billion yen

Increase The 4.5 million shares of

treasury shares from the

Secure working capital as necessary cash and deposits.

We plan R&D and capital investments among

others in response to new fuels as investment
for growth.
Regarding dividends, we aim to "avoid a
Operating CF (including the upward revision)
Working capital
1
Investment for growth (Capital investment plus expenses)
2
TOB
TOB are scheduled to be
canceled on May 29. (Disclosed on May 8, 2026)
dividend decrease and ensure an upward trend of dividends."
Currently, we set the dividend payout ratio at 30%.
Basically, capital will be allocated to (1) to (3). In addition, however, we plan to flexibly accelerate
the response to new fuels, conduct M&A to achieve the Medium- to Long-Term Vision or
ensure shareholder returns. We are planning the implementation of strategic investments using borrowing, etc.
Cash and deposits as of the end of the
Cumulative inflows of period plus
Related
expenditure
5
Dividend
3
Strategic investment
Procure the amount to fill the shortage
Expenses related to TOB are considered as a
separate budget from (3) dividends (4)

strategic investments

It is assumed we will make up for the fund

fiscal year ended March 2024

reserves at start

4 6 6

shortage associated with the TOB by borrowing.

Dividend Policy

Currently, we pay shareholder returns by following a dividend payout ratio of 30% as the guideline. From now on, we will aim to "avoid a dividend decrease and ensure an upward trend of dividends."

6nnu6l dividends (tot6l) 6nd dividend policy

(yen per share)

L5 L5 L5 L5 L5 L5 L5

4t 4t

The policy is to maintain a dividend payout ratio of 30% for FY2027.

Planning for an interim dividend of 28 yen

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027

plan

Recognition of Capital Costs and Target ROE and ROIC

We will continue to aim for capital efficiency that exceeds each capital cost towards FY2031. Given the increasing volatility of the stock market recently, we plan to review and consider the cost of shareholders' equity through dialogue with capital markets.

ROE

4.7%

6.6%

8.9%*

12.0% 12.7%

11.1%

12.0%

or more

12.0% or more

Premises of each capital cost that we assume

Cost of shareholders' equity	About 10.0%	Risk-free rate	About 2.0%
		Beta	About 1.2
		Market risk premium	About 7.0%

22/3 23/3 24/3 25/3 26/3 27/3 plan to 28/3 FY2031

Targets

*Figures excluding gain on sale of stocks

The cost of shareholders' equity is calculated based on the CAPM and implied rates. Risk-free rates from information of government bond (JGB) yields by the Ministry of Finance Japan

Beta is calculated by Daihatsu Infinearth, based on comparable companies. We

ROIC

2.6%

4.3%

6.1%

9.1%

8.6% 8.5% 7.5%

or more

8.0% or more

recognize that the current beta is rising with volatility and close monitoring will be required from now on.

		Cost of	About
WACC	About 8.0%	shareholders' equity	10.0%
WACC	About 8.0%	Cost of liabilities	1.5 -
		before taxes	2.0%

Market risk premiums were calculated based on information from the Japan Securities Research Institute.

22/3 23/3 24/3 25/3 26/3 27/3 plan to 28/3 FY2031

Targets

Weighted Average Cost of Capital (WACC) was calculated through applying the weighted average method to the cost of shareholders' equity and liabilities after taxes, based on total market value and interest-bearing debt.

Appendix

Company Profile

and safety as a "power sup

For

Suppl

env elec

upply that

We provide engines and a maintenance service along with high fuel efficiency, environmental performance ply company that leads to the future."

marine-use For land-use

Move

y engines with high fuel efficiency and a good ironmental performance and that generate tricity and give propulsion power to vessels

Provide highly reliable engines for driving lift and drain water pumps for cities and as a backup in times of emergency

the

A power s company leads to

futur

Protect

Parts sales and maintenance

Provide a maintenance service and sell repair parts to maintain the performance and safety of already sold finished goods, globally and in a timely manner

History

We have been supplying power and related services to various industries since our founding in 1907. Released a variety of products and services to meet customer needs such as changes to environmental regulations since the division was carved out and became a new company in 1966.

1907

Founded an engine manufacturing stock company aiming to produce engines domestically.

1966

Split the Osaka Division of Daihatsu Motor Co., Ltd., which had produced marine-use and general-purpose diesel engines. Established Daihatsu Diesel Mfg. Co., Ltd. anew.

2011

Shipped the first units of the environmentally friendly new diesel engines 6DE-18 and 6DE-23.

2013

Became the first in the world to obtain SOC certification for IMO NOx Tier III requirements.

2016

Shipped the first commercial-use unit of the environmentally friendly new diesel engines DE-33.

2017

Won the first order for a maintenance support service that uses C-MAXS LC-A, a next-generation system for monitoring the condition of engines for marine auxiliary engines.

2021

Completed a lineup of duel-fuel engines (two-source internal combustion engines that use LNG in addition to heavy oil)

2023

Our business infrastructure enhancement plan based on the Act on Strengthening Maritime Industries was approved by the Ministry of Land, Infrastructure, Transport and Tourism.

(Trend in net sales)

started operation.

2018 Himeji Factory

started operation.

Moriyama Factory started operation.

1969 Moriyama Factory

Changed company name to

Daihatsu Infinearth Mfg. Co., Ltd.

2025

01/3 05/3 10/3 15/3 20/3 25/3 27/3

Started operating the Himeji Factory,

the first new production base in about 50 years since the Moriyama Factory commenced operation in 1969.

Business Overview

We engage in the manufacture and sale of marine-use internal combustion engines, especially auxiliary engines for power generation, as the main business.

Internal combustion engines

Net sales: 83.3 billion yen Segment profit: 11.4 billion yen (FY2026)

Marine-use Land-use

Auxiliary power

Segment net sales:

71.8 billion yen

Manufacture and sales of marine-use engines with high reliability and environmental performance that have been broadly employed n all the seas of the world

Segment net sales: 11.5 billion yen

A group of products with a simple structure and high maintainability that are widely employed in fields that demand reliability, such as a backup power source in times of emergency.

Other divisions

Examples of customers and products

Net sales: 4.6 billion yen Industrial machinery-related Real estate leasing-related Electricity sales-related

Precision parts-related

generators (95%) Main propulsion systems (5%)

Power generation engines for remote islands

Engines that supply electric power to drive the engines of vessels

Engines that supply electric power to move vessels

Electric power generator for backup power source

*% in parentheses indicates the ratio of products to marine-use sales.

Marine-use / Land-use Business Models

We provide auxiliary power generators and main propulsion engines for marine use, as well as engines for power generation and pumping for land use.

After delivery, we accumulate long-term earnings through parts sales, repair work, and other maintenance-related businesses.

Marine-use Business Model

Land-use Business Model

Internal combustion engine sales

Engine delivery

Earth

Demands concerning performance and prices

Shipyard

Vessel delive

Instructions on performance and parts to be used

Ship owners (shipping companies, etc.)

For pump stations

Pump makers Heavy electric machinery manufacturers

For airports, remote islands and broadcasting stations

For data centers

Subcontractors

Local government

For airports, remote islands and broadcasting stations

Clients

Sales activities (appeals of and proposals for performance, price, etc.)

Maintenance-related business

Parts sales and repair wor

General contractors

(operational

companies, etc.)

Vessel management company1

Ship owner

Direct transactions with end customers

Notes) 1. A business operator that is contracted by a ship owner to conduct maintenance and management of vessels, operation management and crew management including employment and assignments to vessels

Features of the Business Models

We have established an integrated system from R&D to manufacturing, sales, and maintenance of internal combustion engines. While sales of mainstay marine internal combustion engines are affected by market conditions, the maintenance-related business is a recurring business and contributes to improved stability and profitability.

Business model

Recurring-type business model (rough idea)

Promote R&D of diesel engines and dual-fuel
engines to comply with environmental regulations, in the following directions
- Diesel engines: reduce environmental impact, improve fuel efficiency, support new fuels, etc.
- Dual-fuel: increase efficiency of engines, support diversified gas fuels, etc.

R&D

Net sales

Manufacture internal combustion engines for
marine and land use and sell them to a wide range of customers
Manufacturing bases: Moriyama Factory (Shiga Prefecture) and Himeji Factory (Hyogo Prefecture)
Strong price negotiation power with high market share

Period X+1 Internal combustion engine

Maintenance including parts sales after shipping internal combustion engines
Service bases: located in major overseas cities as well as in Japan
Recurring-type business model that can expect sales for a long period of time after shipment, contributing to stable performance and higher profit margins

Manufacturing and sales

Maintenance

Period X Internal combustion engine

Period X+2 Internal combustion engine

Period X+3 Internal combustion engine

Period X+4 Internal combustion engine

Period X+5 Internal combustion engine

Maintenance-related business

Period X Period X+1 Period X+2 Period X+3 Period X+4 Period X+5

Marine Equipment Market - Market Trends

Maritime logistics is significantly advantageous in terms of transportation volume and costs, and ocean cargo volumes have expanded as the global economy grows.

Accordingly, the global shipping capacity is in a stable upward trend.

Market structure of shipping, shipbuilding and marine equipment

Maritime transport

The need for maritime transportation is expected to increase steadily due to low transportation costs, transportation volumes, and low environmental impact although the need contracted temporarily due to the COVID-19 pandemic.

Demand for shipbuilding

Vessels have increased steadily as demand for ocean transportation rose.

(Average increase of 3.2% per year since 2015)

Stable demand for shipbuilding was generated.

Demand for marine equipment

Demand for marine equipment is also generated in line with demand for shipbuilding.

An increase in the number of vessels already in service in addition to new ones is a reason for the expansion of the market.

Global ocean cargo volumes

Global shipping capacity

(Unit: billion tons)

(tons/person)

1.5

(ship)

Average growth rate from 2022 to 2025

2.4%

110,025

112,638

116,050

0.5

107,838

0 0

1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024

2022 2023 2024 2025

Dry Bulk Oil Containers Gas Others Trade per Capita

Reference) Clarksons Research

Stable Business Base Supported by Maintenance-related Business

Performance trends of maintenance-related business

Number of vessels with engines from DAIHATSU INFINEARTH

The number of vessels carrying our engines is steadily increasing, and we expect long-term, stable earnings from maintenance-related business.

9,500

About

Net sales (100 million yen) Ratio in net sales1

9,000

8,500

8,000

9,000 ships

38.4%

623

46.4%

41.9%

40.9%

601

44.3% 44.8%

601

45.8%

43.3%

43.7%

41.9% 42.1%

888		880
500		475
388		405

818

721

46.0%

7,500

571 589

573

568 576

474

419

7,000

6,500

6,000

384

239

306

265

342

247

355

246

319

254

332

269

322

246

312

264

302

344

15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3 15/3 16/3 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3

Note) 1. Percentage to consolidated net sales

Ratio of maintenance-related net sales to the total

Dominant Market Position and Strong Customer Base

We have established a dominant position in the market of auxiliary engines for large ocean-going vessels, with a high share of approx. 46% in Japan and 25% overseas. In addition, we have a strong customer base with a track record of doing business with numerous customers.

Share in market of auxiliary engines for large ocean-going vessels 1

Customer base 2

Domestic Overseas

Customer attributes

Number of customers

Daihatsu Infinearth

46%

Daihatsu Infinearth

25%

Shipping companies (ship owners)

Over 100

Strong price negotiation power with high market share
Appropriate price revisions in line with rising raw material costs

Notes) 1. Shares in vessels and the world include Chinese licensed agencies.

2. Covering vessels of 20,000 dwt or more delivered between January 2024 and December 2024 Reference) SeaWeb

Shipbuilding companies

Approx. 70

Recognition of Market Valuation

(x) Trend in PBR (from January 2021)

21/1 22/1 23/1 24/1 25/1 26/1

The stock price has risen since the announcement of the Medium-Term Management Plan, with the current PBR rising to about 1.7x in 2025, partly due to tailwinds for the shipbuilding industry.
With a system centered on the new organization CVIC,* we will strive for the improvement of our market evaluation through:
1. Improvement of corporate value based on a medium to long-term strategy
2. Regular progress reports and reviews
3. Promotion of constructive dialogue with investors

* Corporate Value improvement Committee

Medium- to Long-Term Vision

2030

2050

We aim to expand business domains We aim to contribute to net zero emissions through efforts such as M&A for and become a core company in the marine sustainable growth while driving the two equipment industry. We will do this by offering initiatives of R&D to respond to new fuels new solutions including servitization and

and establishing a system for the expanding business domains while striving to

servitization business. increase sales of engines compatible with next-generation fuels.

*We changed the company name to DAIHATSU INFINEARTH MFG.CO.,LTD. on May 2, 2025,

based on the Medium- to Long-Term Vision.

Long-Term Management Plan Summary

Million yen

FY2026 forecast

By FY2028

FY2031 Targets

Financial Objectives and Capital Allocation (New)

Net sales 85,000 100,000 120,000

Operating income 6,300 9,000 12,000

ROE 10.3% 12.0% or more 12.0% or more

We plan to make investments in R&D to respond to next-generation fuels and reinforce systems such as for servitization in the years to 2030.
Although we have set a dividend payout ratio of 30% as the standard currently, we will consider aiming to "avoid a dividend decrease and ensure an upward trend of dividends."

Medium- to Long-Term Direction

Business scale

We aim at growing as an integrator by further expanding our business through alliances with diverse players down the road.

Next-generation internal combustion engine manufacturer

Electricity module integrator

Become a player that can propose in-ship electricity optimization and environmental load reduction by expanding our domains from engines to a variety of shipboard systems.

Co-creator who gives excitement to the world with driving force

Shift our focus to the global market and become a player that can provide the engine/service/system integration business through co-creation with other companies.

Solidify the business foundations and plant seeds for new business while pivoting on the business model of engines and services through addressing new fuels and developing new services.

Alliances with other integrators and electrical equipment manufacturers

Alliance with leading engine development technology companies

Time axis

Management Policy from the Viewpoint of Each Customer and Service Area

In the marine-use business, target China and Europe, both of whose markets are projected to grow, broaden both product and service domains and engage in building a business model that departs from the business structure that relies on engines that are sold on a stand-alone basis.

Expansion policy from the viewpoint of the industrial domain and customer areas

Expansion policy from the viewpoint of product and service domains

Strengthen existing business domains

Parts sales

Manufacturing

Modular design

Condition monitoring

Maintenance

Electricity module integrator

Next-generation

internal combustion engine

manufacturer

Total optimization design

gives excitement to the world

with driving force

Not applicable because this is a scope of large main engines.

Overseas

Co-creator who

Service expansion

Area expansion

Aim at steady expansion

Domestic

Approach to existing customer bases

Marine-use

Land-use

New industrial applications

Auxiliary equipment (DE and new fuel) -Peripheral equipment

Generators -Control panels

Shaft Generators

- Main engines (large)

In parallel, business foundations (production, corporate administrative systems, etc.) will be improved in order to make the above a reality.

Medium- to Long-term Business Plan

We aim to be involved in the electric power planning of an entire vessel by expanding the domain through business tie-ups, etc.

Conceptual presentation of the systems of a vessel that start from main and auxiliary engines

Labor-saving

env

Living ironme ystem

Air conditioning

Remote vess operation

system

ommunication

Remo monitor

ing

Environmental

Motor-driven

Safety system

fety system

Cargo-

Cargo-handling

system

syste

Prevention of major failure

Cargo monitori

Cargo-

handlin handling

m equipme

response

osals for optimizing

We will become a player that is able to make prop the electric power and reducing the environmental burden of vessels through expanding business domain via alliances, etc.

Safety

Stock Price and PBR Trends

Stock price trend

Revision of earnings forecast for FY2026

(Yen) (times)

Price book-value ratio

4,000

3,500

3,000

Earnings announcement

2.5

2.0

2,500

1.5

2,000

1,500

Medium- to Long-Term Vision "POWER! FOR ALL

beyond 2030" announced

1.0

Revision of earnings forecast for FY2027

1,000

500

0.5

Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25 Mar-25 May-25 Jul-25 Sep-25 Nov-25 Jan-26 Mar-26

May-26

0 0.0

Illnfinifarth

Marine Equipment Market - Environmental Regulations •

The industry is one that is largely influenced by global environmental regulations

In the next 30 years, regulations and incentives are expected to be stepped up with the aim of reducing total GHG emissions by 2050.

Targets of Reducing Total GHG Emissions at IMO1 Marine Environment Protection Committee (MEPC) 80

2008 2021 2030 2040 2050

Annual life cycle GHG emissions Recent results

730 million tons 798 million tons

- 20 to 30% - 70 to 800/o ' "

2030 reduction guidelines

From 2016

An 80% reduction of NOx in emission control areas2 (ECA2) became mandatory as a result of the adoption of IMO Tier III regulations.

Dual-fuel engines (DF) that can use natural gas in addition to diesel will become popular.

512 million to

585 million tons

Achieve GHG net zero emissions around 2050

2040 reduction guidelines

146 million to

219 million tons

Notes) 1: International Maritime Organization

Currently measures are being studied, such as the adoption of charging for GHG emissions and other financial methods and of mandatory zero emission operations for newly built vessels while the establishment and spread of zero emission technoloqv and fuels is advanced bV qivinq supDort for first movers.

2: Areas where stricter regulations have been adopted, such as the North American and Canadian coasts, the Caribbean Sea, and the Baltic Sea, the North Sea, and the Mediterranean Sea in Europe

Reference) International Maritime Organization, the Ministry of Land, Infrastructure, Transport and Tourism, and Nippon Kaiji Kyokai (ClassNK, Japan Maritime Association)

O 2026 DAIHATSU INFINEARTH MFG.CO., LTD. 40