Capital Strategy(Financial/Production Capital andIntellectual/Human Capital)
AISIN CORPORATION
Shintaro Ito
Board of Director/Chief Administrative Officer
2022.11.24
Sustainability
Sustainability Conference
Conference2022
2022/ /Nov.
Nov.24th,24th,2022
2022//©
© AISINAISINCORPORATIONCORPORATION
AllAllRightsRightsReserved.
Reserved.

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Capital Strategy to accelerate Group’s business management
A new position CAO* has been
established to accelerate ourGroup’s business
management.
“Stronger management base andimproved profitability of our existingbusinesses”“Investment in future growth forsurvival”

To realize Corporate Philosophy
Management Capital
Financial/production
capitalIntellectual/humancapital

Shift resources tonext generation and new domains.
Fixed assets

Human resources/R&D costs

Social capital

Natural capital* CAO stands for Chief Administrative Officer, which was put in place in April 2022. The CAO is responsible for the optimal allocation of the Group’s resourcesand maximization of profits to accelerate the Group’s business management.

We aim for sustainable business management by optimally allocating our Group’s resources.
Sustainability Conference 2022 / Nov. 24th, 2022 / © AISIN CORPORATION All Rights Reserved.

2/7/7Financial/Production Capital (Capital Expenditure)
Breakdown of CAPEX
Sales
depreciation 5.6％●
cost ratio(hundredmillion yen)

2,500

Breakdown of business assets

5.9％●

5.5％ or less

Shift the contents worth
about 1,500 billion yen.

●

Investment inelectrification
270 billion yen

Assets conducive
to solution-type
products

2,600
2,187

2,000

Utilize

Accelerate
strategic investment
in solution-based products

Solution-based
products

Assetsconducive
to existingproducts

Existing
products

2021
Actual2022
Plan2025
Plan

2021
ActualReduceassets

2025
perspective

Business assets will be shifted to solution-type products
by strategic investment and the use of existing facilities and equipment.
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Intellectual/Human Capital (Re-Skilling)
As a company tackling changes in car manufacturing, AISIN needs reskilling to develop
human resources that are adaptable to change.
Realization of Group Philosophy
Electrification

Win-WinIndividuals
Improved
job satisfaction

Company
Co-creation/
challenge bya wide varietyof people

Turningindividuals
intoexperts

Creation ofnew value

Managementthat values
individuals

Control/software

・ Reskilling of electrification developers:
200 people in FY2022(motors, energy management, etc.)• Raising the level of digital literacy of personnel• Implementing a plan to shift from hardware tosoftware• In-house human resource development tosecure personnel dedicated to MBD (250people up to FY2025)

DX• Basic education to increase AI personnel to1,400 in FY2025• DX basic training for all employees

Personnel with the new skills acquired by re-skilling will accelerate the shift of resources.
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Intellectual/Human Capital (R&D Costs)
Breakdown of R&D investment
Sales
R&D costratio(hundredmillion yen)

5.0%
●

4.6%

Improving development efficiency

about 5.0%
●

●

1,941

of development period by the use of
MBD and DX (targeting 2025)

2,100

Shifting resources tonext generation/new domains

2,000

Accelerate
strategic investment
in solution-based products

Solution-basedproducts

30% reduction• Established an EV promotion center toproactively shift to the electrification
domain• Make a concerted effort across the Groupto strengthen the area of brakes

Existingproducts
2021
Actual2022
Plan2025
Plan• Accelerate the development in the area ofrelief, comfort, and convenience by obeya
katsudo (large room activity)

We will make development more efficient by the use of MBD/DX and shift to focused areas.
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Restructuring Business Portfolio for Sustainable Growth

Strategic businesses
Togetherwithpartners

Next generation/new businesses

Mainstay businesses• EV-related products• Products for relief, comfort, andconvenience• CN-related products• Electrification-related products• Products related to comfort/convenience• Products related to relief/convenience

Increasesales/competitiveedge

Improved asset efficiency: 100 billion yen
Structural reform: 100 billion yen

Electrification investment: 270 billion yen
Investment in CN:110 billion yen

Existing businesses

Restructured businesses
Entrust topartners

Mature businesses

Business transfer

Asset reduction

Businesses restructuring• Seat frame business• Bed/sawing machine
business• Idle assets• Stock holdings• Foundation Brakes• Pistons• MT business

Investment reduction• AT/CVT• Die casting

Organizations and people supporting AISIN’s full model change
Co-creation by a variety of people, culture of challenge beyond organizational boundaries, management that values
individuals, and turning individuals into experts

Assets (people, goods, and money) will be effectively used with our portfolio appropriately restructured.
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Group Philosophy

Inspiring “movement,”
creating tomorrow

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