Okada Aiyon CorporationTSE: 6294

Mid-term Business Plan “Rolling Plan FY2025-FY2027”...

· Issued by Okada Aiyon Corporation


１

VISION 30

- Go To The Next Stage -

Rolling Plan

FY3/26 to FY3/28

May 14, 2025 OKADA AIYON CORPORATION

(TSE Prime Market: 6294)

VISION 30 ２

- Go To The Next Stage -

Table of Contents

Review of FY3/25: Consolidated Numerical Results P3

Review of FY3/25: Sales Results by Segment P4

Performance Trends P5-6

Rolling Plan FY3/26 to FY3/28 P7-8

Human Resources Strategy P9-10

Market Strategy P11-15

Strengthening of Management Foundation P16-18

Shareholder Return and Dividend Policy P19

Cash Flow P20

Capital Allocation P21

Productivity of Invested Capital P22

Business Portfolio P23

Reference 1: Framework of the Long-term Vision VISION 30 P24

Reference 2: Assumptions for Investment Capital Productivity Results and Planning

P25

Review of FY3/25: Consolidated Numerical Results ３

Sales and profits declined YoY due to slower overseas performance. However, both operating profit and ordinary profit exceeded the revised forecasts.

(Millions of yen)

Results

Vs revised forecast

Year-on-year

Change rates

(%)

(November 14,

2024)

Achievement

rate

(%)

Net sales

26,582

(513)

(1.9)

(617)

(2.3)

Operating profit

2,279

(440)

(16.2)

59

2.7

Ordinary profit

2,238

(576)

(20.5)

18

0.8

Profit attributable to owners of the parent

1,475

(411)

(21.8)

(44)

(2.9)

*Actual exchange rates (average): 1 USD = 153 JPY, 1 EUR = 164 JPY

Review of FY3/25: Sales Results by Segment ４

Domestic sales hit a record high, driven by robust demand for demolition crushers. However, overseas sales fell sharply due to inventory adjustments of construction equipment in North America.

Results for FY3/25

Year-on-year

Change rates

Comments

Demolition environmental attachments

13,545

790

6.2

  • Demolition crushers, our core products, saw a 12.0% increase in sales thanks to steady demand and higher production.

  • Hydraulic breakers experienced a 15.4% decline in sales due to weaker demand.

  • Grapples recorded a 2.3% increase in sales, supported by stable demand.

Forestry, large-scale environment, cable crane, etc.

3,846

(373)

(8.8)

  • Forestry equipment sales decreased by 6.1% as the impact of new

    product introductions tapered off.

  • Large-scale environmental machinery posted a 0.5% decline in sales,

    affected in part by a weaker yen.

  • Cable cranes benefited from steady demand in hydroelectric power projects, resulting in a 5.3% increase in sales.

Repair and replacement materials

3,209

(65)

(2.0)

  • Repair services saw a modest 0.8% increase in sales.

  • Spare parts declined by 3.6%, due primarily to a drop in components for large-scale environmental machinery.

Domestic segment

20,601

352

1.7

Sales growth in demolition and environmental attachments offset the declines in forestry equipment, large-scale environmental machinery, and cable cranes, resulting in a 1.7% YoY increase in domestic segment sales-a new record high.

Overseas segment

5,981

(865)

(12.6)

  • In North America, which accounts for 70% of overseas sales, sales declined by 12.4% due to inventory adjustments by rental companies.

  • In Europe, high interest rates and other factors led to market deceleration, resulting in a 14.0% decrease in sales.

  • In Asia, market slowdown combined with intensified price competition

led to a 16.0% decline in sales.

Total of domestic and overseas segments

26,583

(513)

(1.9)

While domestic segment sales hit an all-time high, the overall sales

decreased by 1.9%, mainly due to the downturn in overseas segment.

５

Performance Trends

*"Arch 2020" was the medium- to long-term management plan from FY3/16 to FY3/21. "VISION 30" is the medium- to long-term management plan launched in FY3/22.

FY3/16-FY3/25

Net sales

(100 million yen)

(100 million yen)

CAGR (Compound Annual Growth Rate):

9.2%

153 178 179 175 203

235 270 265

120 131

Operating profit

FY3/16-FY3/25

CAGR (Compound Annual Growth Rate):

13.0%

27.1

22.7

11.0 11.9

15.2

13.6 13.7

17.7 19.6

7.6

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25

Arch 2020 VISION30

Ordinary profit

FY3/16-FY3/25

CAGR (Compound Annual Growth Rate):

13.4%

28.1

22.3

18.0 19.6

10.9 12.7 15.6 13.4 14.3

7.2

(100 million yen)

Profit attributable to

(100 million yen)

owners of the parent

FY3/16-FY3/25

CAGR (Compound Annual Growth Rate):

14.4%

18.8

14.7

10.0

11.9 14.1

4.3

6.6

6.9

9.1

8.8

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25 FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24 FY3/25