Mid/Long-term Business
Strategy Briefing
AISIN CORPORATION
Moritaka Yoshida
President
2023.09.14
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

/39

1. Vision of 2030
2. Strategies of Business Divisions
3. 2025 Mid-term Plan for 2030

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

1

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

/39

Changes

Biggest Revolution Period for Automotive Industry

CarbonNeutrality

Electrification

Intelligence

Drastic changes in industrial structure
surround automotive industry
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

3 /39

Changes

Electrification
BEVIntelligence

Big change on vehicle
structure

Diversification ofvalue with vehicle
structure changes

Achieve continuous growthat unpredictable environment
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

4 /39

Management Foundation & Growing Domains

Major Management Transformation for the Future

・Shift Business to Growing Domains
・Strengthen Corporate Foundation

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

5 /39

Change as Growth Challenge

Technological Innovation
Value Added Products
For BEV as a whole

Unconventional
User Experience

Individual Advanced Products＋
Systemize (Functional Integration, Integrated Control)

Strengths of AISIN
Various Products
・Hardware ・Software

Manufacturing Practice3・ Production Engineering
・ Global Production Bases
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

6 /39

Management Foundation & Growing Domains

Restructure Business Portfolio

EntrustPartners

Existing
Domains
ReformProfitability/Stru
cture

Shift Resources
Human Resources
Physical Resources
Cash

Growing
Domains

With
Partners

Accelerate full model change of AISINIR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

7 /39

Restructure Business Portfolio for 2030
ROIC

Existing Domains

Growing Domains
Resources

VC

Labor/Assets/Capital

AT+HEV

2030

2021

Safe/Comfort
Entry

New
Business
BEV Products

BrakesExisting

・eAxle・Battery Frame
・Giga-castEngine/Body

GrowthResources

EntrustBusiness

Labor/Assets/Capital

CN※Size of Circles: Sales Volume

Shift resources to “BEV” “Brakes” “Safe/Comfort Entry”
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

8 /39

For 2030

5.5-6.0
5.0

Sales(Trillion JPY)

3.9

Triple thesales ongrowing
domains

Existing
Domains

Growing
Domains
2021

2025

2030

Drastic Expansion on growing domains for 2030
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

9 /39

Employees as Revolution Engine

Seek Improving Corporate
Culture that Every Employee
Challenges
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

10 /39

Corporate Principles

Inspiring “movement”,
creating tomorrow
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

11 /39Strategies of Business Divisions
Battery Frame/Giga-cast
Safe/Comfort EntryeAxle

CESO・CTSO

Y. YAMAMOTO

President: Body Company

H. SAKAUE

2025 Mid-term Plan
for 2030
BrakesADVICS R/D General Manager

K. KONDOCAO

S. ITO

13,20232023/ © AISIN CORPORATION All Rights Reserved.
IR Presentation /October
Sep. 14th,

12 /39

1. Vision of 2030
2. Strategies of Business Divisions
3. 2025 Mid-term Plan for 2030

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

2

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

/39

Safe
ComfortInitiatives for BEV and Intelligence
Current

Electrification

Power
train

Heat
Manag
ement
Battery
Frame

ActuationeAxle(3in1)

eAxle(2in1)
Water Device

Electric

Aluminum
Extrusion

Heatsink

Aluminum
DiecastCase Module

Power
Regeneration

Precision
Gear

Cooperative Regenerative Brake System

Intelligence

Soft
ware
Entry

ECU
softw
are

Value added products of BEV for wholevehicleCooler Module (W)SwitchLocker EA

BEVTransmit
SystemHeat
Management

Actuation

BrakesBEV

FutureOil Pressure

EWP

BrakesIntegrate
Technologies andProduction method
for innovation
to provide
new values

Image
Monitor
Recogning
ition In-vehicle monitoring

Electric

SurroundSensing
Actuation
Gesture Control
Power Back DoorPSD Room Monitoring

Intelligence
Maximize user value with smart
integration of hard and soft
BrakesElectric Unit
(eAxle)Aerodynamic
DeviceNavigation
Integrated
VehicleControlHeat Management
System

ARS・AVSIR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

14 /39

Safe
ComfortInitiatives for Development of BEV Vehicle
Electric Unit (eAxle)

Downsize

Component
Pursue Efficiency/Size
From parts to functional integration

Improve efficiency* over 10%

BrakesElectric Unit
(eAxle)Navigation
Integrated
VehicleControl

ARS・AVS

BrakesHeat Management Device

Cooperative Regenerative Brake

Improve efficiency*
over

Locker EA
Battery Heatsink

Aluminum
Body Frame

E-Parking Brake

Improve efficiency* over 2%

Refrigerating Module

Battery Frame/Giga-cast

Heat Management
System

Improve efficiency* over 2%(inc. invertor)

Cooling Module

BEV

Integrated Vehicle Control

Aerodynamic
Device

Rigid

Xin1

BrakesAerodynamic Device

18％

Control
From Individual to Integrated

Grill Shutter

Fr Spoiler

Rr Spoiler

Improve efficiency* over 4%*Power Consumption Efficiency

Provide BEV products with AISIN technologies centered eAxle
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

15 /39eAxle Lineup and Sales Expansion Strategy
2020

・Provide multi-models
・Achieve efficient, small, low cost

Mid-Long

Full Lineup for Customer Needs

3rd generation
Pursue World No.1 R/D for EV Expansion

・Achieve drastic efficiency/small size
・Xin1 using downsizing and packaging technology

Small

Small

Others

2nd Generation
Short-Mid

Strategy

LargePremium

2030

2025

1st Generation

Medium

BEV･40% smaller
Against Competitors

For bZ4X

High Efficiency･30% more efficient
Against Competitors

Small/High
Efficiency½ of SizeHigh Power

Xin1･Twice more powerful
Against Competitors

Efficiency*, size, andease of assemble

Commercials･Pursue Strength,
Reliability, Mountability*Power Consumption Efficiency

Proceed development to provide adequate products at adequate timing
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

16 /39

Xin1 Using Strengths of AISIN

BEV

Use of Space (inc. dead space)
100

▲60%
40

Competitors(small vehicle)

AISIN#of Major Parts (inc. body parts)
100

Function

Technology

3in1

Downsizing

Heat Management
Power
Conversion(1/2 size)

Achieve efficiency,

PackagingTechnology

downsizing, andIntegrated Control

ease of assemble▲30%

Competitors

70
AISIN

Size
100

▲40%
60

Competitors

AISIN

Utilize 3rd generation technology, heat management,
alliances to develop AISIN original Xin1 by 2027
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

17 /39Strategy and Target of eAxle

BEV

Strategy

BEV Market Volume(万台)Unit)(10K

Development〔Short-mid〕 Full lineup for customers〔Mid-long〕 Accelerate World No.1 R/D
・Shift AT/HEV resource to BEV R/D・Allies with external partners ontechnology shortage
Production

2

4

times

4,250

2,000

450

2021
'21

2025
'25

2030
'30

Sales Target(100M JPY)

2.3

times

Establish efficient system by utilizing
existing resource
・Use existing AT Company/equipment
・Global supply system

times

13

times

5,500

2,400

180
'21
2021

'25
2025

'30
2030

Provide attractive EV products to exceed OEM expectations
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

18 /39

Battery Frame/Giga-cast

BEV

Battery Frame・Protect battery from shocks
・Control temperature, efficiency, deterioration
Locker EA

Battery
Cell（protect from side shocks）

Cross Frame（protect from side shocks）

Battery Cooler（control temperature, efficiency, deterioration）

Giga-cast（Aluminum BEV Frame body）
Decrease BEV body part volume by Aluminum diecast
Increase vehicle performance by gain rigidity(Conventional) Fe Press Body

Giga-cast

50～
120 pieces

1 piece

Battery frame and Giga-cast are new growing market with BEV
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

19 /39

Strengths and Vision of Battery Frame and Giga-cast

BEV

VisionStrengths of AISIN

Battery Frame in 2025
Shock Protection × Temperature control

Aluminum Raw Materials
Extrusion

Collision Management
Collison Simulation

Locker EA

DiecastHeat Management
Waterflow
DeviceAnalysis
MBD

Battery Case Module

Heatsink

Integrated Functional Body in 2027
Battery Frame × Giga-cast

Evolve battery frame to integrated functional body with strengths of AISINIR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

20 /39Strategy and Target of Battery Frame and Giga-cast
Strategy
Synergy with OEM

To be “partner” of OEM
Synergize Engineering & production

BEV

Sales Target(100M JPY)

Absorb increased market needs

10 times sales

2,000

Conducting technology proposal &dispatch engineers to multiple OEM

Utilize Alliance
Enhance new customers

200

Decrease investment
2021

2025

2030

Target 200Bil JPY sales in 2030 by synergy with OEM and utilize alliance
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

21 /39Brakes (Electrification, Intelligence)

BrakesElectrification
Efficiency: E-Parking Brakes

Efficiency: Cooperative Regenerative Brake
World-Ever
Front/rear independent・High regenerations

Top of market
・light weight・low resistance(dragging brake)

Improve 2% efficiency

Improve 0.8% efficiency
Intelligence

Efficiency/Safety/Comfort/Drive : Integrated Vehicle Control
Navigation
BrakesEnhance volume and range
Efficiencyof regeneration by
ComfortElectric
Unit(eAxle)Integrated
integrated control ofHeat Management
VehicleSystem“drive/brake”
SafetyControl
Drive
Improve over 2%
Aerodynamic
Deviceefficiency
ARS・AVS

Control vehicle withintegration of various
products at AISIN
Group
Contribute tosafety/comfort/drive

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

22 /39Market and Roadmap

BrakesBEV・HEV Market Prediction

Roadmap
BEV/FCEV
PHEV/HEV（10K Unit）

2015

2020

2,600
LuxuryICE

6,250

4.8 times
Increase in
BEV・HEV
market

7,100

4,500

BEV・HEV

2025
25年

2030
30年

F/R
independent
On-demand

4 wheels
Accumulator(bZ4X, Crown,、
Sienta）

F/R independent

On-demand

Medium70％

4 wheels
controlCompact
Light

1,450

2021
21年

Large

2030

F/R Independent
Accumulator

Pick-ups

4,500

2025

6th
Generation

7th
Generation

8th

Generation(next model)

Low cost with simple structure ease foreign production
Enhance sales & profitability outside of Japan

Enhance sales & profitability with 8th generation for enlarging BEV・HEV market
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

23 /39

Strengths of AISIN

BrakesElectrification：Cooperative Regenerative Brake System
Contributing to improve Efficiency*(Self Research)
Gain regeneration with F/R independent control+2.0％

Improve 2％ Efficiency*（WTLP）＋10.0％
Control by 4 wheels
Control by F/R independently+5.0％
Fr/Rr Brake Balance Image
4 wheels control

0％No
Regenerative
Regenerative (Engine Brake Like)

Regenerative

Regenerative(4 wheels)(F/R Independent)

F/R independent control

Fr Regeneration

Fr Regeneration

Fr Oil Pressure
Fr Oil PressureGainregeneration

Rr Oil Pressure

Rr Oil Pressure*Power Consumption Efficiency

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

24 /39Efficiency*/Safety/Comfort/Drive: New Functions by Integrated
Vehicle Control (Intelligence)

BrakesNavigation

Brakes

Efficiency*
ComfortElectric Unit (eAxle)

Integrated Vehicle Control
SafetyAerodynamic
DeviceHeat Management
SystemDrive
ARS・AVS*Power Consumption Efficiency

Increase vehicle value by integrated vehicle control with Integration of AISIN Group products
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

25 /39

Target And Strategy of Brakes
Strategy
Sales Expansion / Profitability
Utilize strengths of having all brake products andsoftware development technology●Controlled Brake System
Compete with nest model of cooperative
regenerative brake system●Foundation Brake
E-Parking Brake, Opposed caliper, etc.
Enhance high added value products

Brakes【売上目標】

Sales Target+4,300（100M JPY）

10,800

8,900

6,500

Production
Secure efficient organizational structure byshifting group resources
2021

2025

2030

Target 1.08 trillion JPY sales in 2030 by utilizing group resources and alliance
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

26 /39

Safe
Comfort

Safe/Comfort Entry
Stress-Free Entry（universal design/safe for everyone）

Connect people and vehicle by monitoring
technology and door systems

DetectSonar & Camera

No Operating Check-in
Digital Key System

UNLOCK

Predict Functions
Surround Sensing

Confirm
User

Easy to Get-on

Comfortable Space

Wide Door System

1300

OPEN
Door

Room Sensing

350

Confirm Safety

Judge

Integrate Detect/judge/move achieves “Stress-Free entry” and ”Comfortable Space”
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

27 /39

Safe
ComfortBusiness Target and Strengths of AISIN
Single Function

Increase Added Values
SafetySupportSun RoofBest
Solution

CameraPower Back Door＋

Door Handle

Prediction
AssistMillimeter
Wave
ACT

Power Slide Door
Pneumatic

Electric
Door Lock

Add sensing function to various products gains user values by system
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

28 /39

Safe
ComfortStrategy and Target of Safe/Comfort Entry
Strategy
Function R/D Among Domains
・Blend chassis domain and safety
technologies
・Utilize sensing data to
Enhance function

Alliance Reinforcement

Sales Target(100M JPY)

Enhancehigh value-added products

5,300

triple the sales

2,900

1,700

・Develop and utilize updated
technology
・Strengthen radio wave measureand signal process technology
2021

2025

2030

Target 530billion JPY sales in 2030 By R/D among domains and reinforce alliance
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

29 /39

1. Vision of 2030
2. Strategies of Business Divisions
3. 2025 Mid-term Plan for 2030

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

3

IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

/39

Position of 2025 Aiming 2030
2025 Plan to Secure Resource for 2030
Jumping
Management Integration
Organization Change

Hopping

Form “shape”

Stepping

Change “Inside”
Gain “Strength”

Show Result“Growing” Stage
5.5-6.0

5.0

3.9
Sales
(Trillion JPY)

Existing
Domains

Growing
Domains

2021

2025

2030

Proceed structural changes to promote strategies andretain resource for 2030
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

31 /39

Target and Actions of 2025
Complete Functional Changes

Sales

3.9T
JPY
3.9兆円

Operating
IncomeRatio③Shift Resource to Growing
Domains

4.6%

4.1%

Over

300BJPY

1.3%

190BJPY

182BJPY④Generate Capital by Balance
Sheet Reformation
・Business Assets
・Cross-Shareholdings
・Global Inventories

5.0TJPY
6.0%①Restructure Business Portfolio②Increase Profitability on
Existing Products like AT

4.4
兆円
4.4T
JPY

4.6T
JPY
4.6
兆円

57.9BJPY

ROIC

2021

2022

2023

2025

6.6％

1.8％

6.4％

Over 10％

Promote “core changes” by completing functional changes for growing stage from 2026
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

32 /39

①Restructure Business Portfolio

2021

ROIC

Existing Domains

2030

Growing Domains
Resources

VC

Labor/Assets/Capital

AT+HEV

Safe/
Comfort
Entry

New
Business

BrakesExisting

With
Partners

BEV Products
・eAxle・Battery Frame
・Giga-castEngine/Body
EntrustBusiness

GrowthResources

EntrustPartners

Labor/Assets/Capital

CN※Size of Circles: Sales Volume

Restructure portfolio by shifting resources to growing domains
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

33 /39

②Improve Profitability on Existing Products（AT・HEV）
ICE・HEV Market Prediction
AT・HEV戦
Automobile Market Prediction（10K Unit）

BEV

HEV
ICE

9,000
2,000

4,250
2,850

4,500

2025
25年

① Conventional demandat South America, India, etc.

9,700

2,500
2,600

2030
30年

Even BEV expands,

size of 50M units
market remains

Key Strategy

Minimize investment and enhance sales since strong demand of
conventional products remains

55％② Opportunity to take in OEM products
Under discussion with several customers③ Bring unit for HEV demand
Operating Income Target

100B JPY Operating Income(constantly from 2025 to 2030)

ROIC＝15％（at 2030）

Estimate 100B JPY operating income on AT・HEVIR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

34 /39③Input Resource to Growing Domains
CAPEX

R&D

Human Capital・Total investment based on depreciation
・Use flexible-line and existing
equipment to reduce investing amount・Strategical R&D to growing domains
・Utilize MBD・DX for Optimization

・Accelerate human capital
shift to growing domains
・Re-skilling to software domain, etc.

(100M JPY)

(100M JPY)

2,187
Growing
Domains

2,500Over 65%

1,941Over 75%

Existing
Domains

2021
21年度

Labor Shift

2,000+αOver 80%

Growing
Domains

Over 75%

2030
30年度

2021
21年度

3,000 employees
by 2025

Re-skilling

Existing
Domains

2025
25年度

Shift

Re-skilling
2025
25年度

2030
30年度

3,000 employees
by 2025

Control strategical investment and total amount with discipline
Accelerate “human capital” shift to growing domains
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

35 /39

④Generate Capital by Balance Sheet Reformation
Business Assets

Cross-Shareholdings

Global Inventories

Compress over 100BJPY

Sell over 100BJPY

Compress over 100BJPYTransfer “entrust” businessand depreciate existing
business assets

Aim for zero

Entrust Partners

・Seat Business・Shower Toilet Business・Other Projects (Ongoing)(100M JPY)

37titles19titlesAccelerate Reduction ofInefficient assets

・Structural change on surplus assets
・Marge Production companies (Ongoing)

Compress to
Pre-COVID19 Level
By 2025

2010

2022

5,688

5,341

3,799

2023

2025

2020

2021

2022

2023

2024

2025

Reform 400BJPY, which is 10% of total assets, by 2025
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

36 /39Capital Allocation for 2025
FY23～FY25 Prediction (3yr cumulative)(100M JPY)

23,00023,000

BS Reform

Loan Repayment

4,000

Operating CF(Before R/D
deduction)

11,500etc.

3,000
Dividend
1,500
AdditionalReturnto Shareholders

7,500

Cash Inflow

Control balance on financial health and investment efficiency(Capitalization ratio 25%～30%)●Return toshareholders

Stable dividend (payout ratio about 30%)

5,000

●Additional return

For more business value and investment efficiency, enhance
proactive acquisition of own stock, increase dividend, etc.

R/D

●GrowthInvestment

Strategical investment to growing domains to expand
business portfolio (M&A, Alliance, etc.)●R/D

Shift resource to growing domains and increase development
efficiency

Growth Investment

6,000

Depreciation●Financial
Healthto shareholders

Equipment

7,500

Cash Outflow(Growing domain ratio over 75% by 2025, over 80% by 2030)●Equipment

Control depreciation with discipline(Growing domain ratio over 65% by 2025, over 75% by 2030)

Utilize generated cash for growth investment andshareholder returns to achieve PBR over 1x
IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

37 /39Aim for 2030
5.5-6.0
Sales(Trillion JPY)

5.0
3.9

Triplethe sales
at growing
domains

Existing
Domains

Growing
Domains
2021

2025

2030

Operating
Income Ratio

4.6％

Over 6％

8％

ROIC

6.6％

Over 10％

13％Enhance growing domains for 2030 and target over 13% on ROICIR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved.

38 /39

【Note on future predictions 】
Excluding matters related to past and current facts, the business results forecasts and forward-looking estimates,
strategies and targets disclosed by the Company are estimates regarding the future. These estimates are formulated from plans,
expectations and judgments made based on information that the Company can obtain at the present time, and certain assumptions
deemed reasonable. Accordingly, actual results may vary from the disclosed business results forecasts, etc.,
due to variable factors with uncertainties, including the economic situation.
AISIN CORPORATION and its employees assume no responsibility whatsoever regarding any losses incurred due to the use of
information on our documents.