AHRESTY REPORT2024
For the year ended March 31, 2024

01

CONTENTS

What is Ahresty?

01
Introduction

Introduction

3 ｜ What is Ahresty?
4 ｜Ahresty’s Corporate Philosophy and Vision
6 ｜ Ahresty’s History

02
VisionFounded

8 ｜ FY2023 at a Glance
10 ｜ Top Message
12 ｜ Three Strategies to Improve Corporate Value
14 ｜ 10-year Business Plan and Medium-Term Management
Plan

03
Strategies andPerformance

Initiatives to Support
Sustainable Growth18 ｜ Business Strategy Die Casting Business

30 ｜ Social: Ahresty’s Human Resources Development
32 ｜ Occupational Health and Safety
34 ｜ Development of a Corporate Culture in Which
Everyone Can Work in Good Health and Feel Safe

42 ｜ Message from Chair of the Sustainability Meeting
44｜ Environment: An Environment-friendly Company
54｜ Round-table Discussion on Corporate Governance
57 ｜ Introduction of Independent Directors
58 ｜ Governance: Improving Corporate Governance64｜ Key Financial, Human Resources and Environmental
Data for the 10-year Period

The Ahresty Report is intended to help shareholders, investors,

2.0," which was prepared by the Ministry of Economy, Tradeand other stakeholders understand Ahresty's initiatives toand Industry.

achieve sustainable growth and enhance its corporate value■Period Covered
Fiscal year 2023 (April 1, 2023 - March 31, 2024)

and governance (ESG) information. This report was compiled
with reference to the "International Integrated Reporting
Framework," which is recommended by the IFRS Foundation,and the "Guidance for Integrated Corporate Disclosure andCompany-Investor Dialogue for Collaborative Value Creation

2“AHRESTY”

isaphonetic

Research, Service, Technology.

Number of employees

5,590

Global manufacturers
focusing on
automobiles andautomotive parts
In recent years, as the electrification of automobiles has
been progressing, orders received from leading foreign
automotive parts manufacturers that require global supply
have been increasing.

Business locations

Editorial Policy

non-financial information, including environmental, social,

nameCustomers(As of March 31, 2024)

66｜ Corporate Information

financial information, including management strategies, andaluminum, a material that is lightweight and easily recyclable.

representation of the letters R, S, T, standing for:40 ｜ Sustainability Roadmap

by providing them with an integrated presentation of Ahresty's

mainly large and complex shaped automotive parts using

Research
ServiceTechnology
The39 ｜ Respect for Human Rights

Data Section

Company name25 ｜ Proprietary Products (MOVAFLOR) Business
29 ｜ Consolidated Financial Highlights

Manufacturing
aluminum die
cast products
We are a specialized die casting manufacturer, producing

24 ｜Aluminum Business

36 ｜ Diversity & Inclusion

05

1938
Shimura Aluminum Co., Ltd., Ahresty’s
predecessor, was founded in Itabashi, Tokyo.

16 ｜ Ahresty’s Value Creation Process

26 ｜ Financial Strategy

04

Core business

10sites in Japan, 8 sites in 5 countries*

In addition to Japan, Ahresty has operations in the United States, Mexico, China, India and Thailand.

* Some of the information includes disclosure items and business activities thatbegan in and after April 2024.

■Scope of Coverage
Ahresty Corporation and the Ahresty Group■Cautionary Statement Regarding Future Outlook
This report contains Ahresty's plans for the future and forecasts andprojections regarding its performance. Please note that actual results
may differ from our projections due to changes in various factors.

For details, please visit the Ahresty website.

AHRESTY REPORT 20243

01
Introduction

01

Introduction

Ahresty’s Corporate Philosophy and Vision
VisionVisionStrategies andPerformance

Initiatives to Support
Sustainable Growth

Data Section

We brighten
our planet’s
future with ourlightweighttechnology

2040 Vision and
Our Goal

Ensure yoursatisfaction
with Ahresty

MissionPurposeRESEARCHSERVICETECHNOLOGY
We aim to create an affluent society by pursuing

Beyond yourexpectations

2040

Developpioneering
technology
through
continuous
research

Corporate Philosophy

Value

Let us take pride in our work, respect theory andexperimentation, value originality and invention andoffer superior products and service to our customers

and integrating each of these areas.
RST Way - Five criteria for action
Research means continuous research, investigation, and development of
new technologies, new markets, and new sales techniques. Service means
providing warm, attentive service through personal interaction. Technology

The RST Way’s five criteria for action—conscientious, proactive, speedy, learning, and challenge—
are the basis of each employee’s way of thinking and action to realize the Corporate Philosophy.

means truly excellent technology that incorporates both physical and soft
aspects and is highly beneficial for society.

Social Issues Ahresty addresses

Prioritytasks

Monitoringtasks

Ahresty’s priority tasks are to achieve Goals 13 (mitigating climate change) and 7 (energy) of the Sustainable Development Goals (SDGs),

Conscientious

We earnestly and sincerely make efforts for our customers and all stakeholders.
We strive to understand diverse opinions, thoughts and values, listening tothem with open minds.

Proactive

We are self-driven and enthusiastically strive for success.
Each of us takes the initiative so that our actions lead to significant improvements.

SpeedyWe act quickly, sensing changes in social needs and the global market.
We consistently strive to enhance and reform our work methods and our technologies.

Learning

We constantly evolve to reach our goals.
We advance ourselves by having inquiring minds to achieve expectations.

Challenge

We work unflinchingly on aggressive targets to achieve them.
We consistently challenge ourselves through theories and experiments
without fear of failure, respecting originality and invention.

the common goals of the international community decided at the UN Sustainable Development Summit, that it is hoped will contributesignificantly to solving social issues and that are also closely related to manufacturing aluminum die castings, Ahresty’s main business.

4

AHRESTY REPORT 20245

01Introduction

01

VisionStrategies andPerformance

Introduction

Initiatives to Support
Sustainable Growth

Data Section

Ahresty’s History
Shimura Aluminum Co., Ltd., Ahresty’s predecessor, was founded with a capital of 400,000 yen asa small factory in Itabashi, Tokyo, with three employees.
"Do not tell a lie for the convenience of business" and "Always propose what is best for the benefitof customers" are the words of the late Aiji Takahashi, our founder. This conscientious stanceresulted in gaining the trust of the public, serving as the driving force for the subsequent developFY 2024

ment of the company.

Sales weight

159,644
158.2

tons

Net sales

Sales weight(tons)

billion yen

Employees

Net sales(billion yen)

19 sites in six countries
COVID-19
pandemic

Great East Japan
Earthquake

Lehman’s Fall

Employees

5,590

March 2020

March 2011

September 2008

persons(persons)(Fiscal year) 2001

2002

2003

2004

2005

2006

2007

2008

2009

1938- Founded

2010

2011

2012

1988-

2014

2015

2016

2017

2018

Renamed Ahresty Corporation.

2019

2020

2021

2022

2023

2000- Aiming to contribute to weight reduction of vehicles.

1938

1961

1988

1997

2003

2014

Shimura Aluminum Co., Ltd.,
Ahresty’s predecessor, founded in Itabashi, Tokyo
Started manufacturing aluminum alloy ingots, die castproducts and aluminum sandFounder: Aiji Takahashi
mold castings.

Stock listed on the Second Section of the Tokyo
Stock Exchange.

Company name changed from Fuso Light Alloys
Co., Ltd. to Ahresty Corporation.

1989

Received the Minister of Economy, Trade andIndustry Award in the 20th Materials Process
Technology Commendation.
Started mass production of suspension-relatedparts made of AC4CH alloys with the NI method.

Listing of the shares changed from the Second Section to the First Section of the Tokyo Stock Exchange.

1962

Mass production of aluminum die-cast monocoqueframe for scoot-ers first time in the started for the
first time in the world.

1943
Fuso Light Alloys Co., Ltd. (now Ahresty Corporation) established.

Launched MOVAFLOR, first raised
floor system in Japan.

1964
ICEPET developed by Fuso Light Alloys won theChampion Award at the International Home Show.

1983

Awarded Deming Prize for the year 1989 (Smalland Mid-range Industries).

Mass production of alternator brackets forautomobiles by the NI (New Injection) method(Ahresty’s proprietary casting method) started.

Corporate Philosophy codified• Hamamatsu Plant started operation.
• Japan Precision Die Mold Mfg. Co., Ltd.
(now Ahresty Die Mold Hamamatsu Corporation) (manufacturing dies) established.
• Tokai Seiko Co., Ltd. (now Ahresty Pretech Corporation) (processing) established.
• Kyoto Die Casting Co., Ltd. Toyohashi Plant (now Tokai Plant) started operation.
• Tochigi Fuso Co., Ltd. (now Ahresty Tochigi Corporation) established.
• Ditec Co., Ltd. (now Ahresty Die Mold Tochigi Corporation)(manufacturing dies) established.
• Kumamoto Fuso Co., Ltd. (now Ahresty Kumamoto Corporation) established.
• Ditec Co., Ltd., Kumamoto Plant (now Ahresty Die Mold Kumamoto Corporation) started operation.
• Kumagaya Plant (production of aluminum alloy ingots) started operation.
• Higashimatsuyama Plant started operation• Pascal Trading Co., Ltd. (now Ahresty Techno Service Corporation)(manufacturing and sales of die-casting peripheral equipment) established.

2004

1996

[ Business expansion and global presence ]

6

2013

• Ahresty Wilmington Corporation (US) established.

• Thai Ahresty Die Co., Ltd., an affiliated company for manufacturing
dies in Thailand, established.

Started RST Gakuen (academy) aimed at early
development of engineers.

1999
Awarded in NADCA International Die-CastingAwards.

2006
Technical Center openedin Toyo- hashi, Aichi.

2018
Celebrated the80th anniversary.

2022
Change in listing of the shares to Prime Marketof the Tokyo Stock Exchange.

• Thai Ahresty Engineering Co., Ltd. (design / Thailand) established.
• Guangzhou Ahresty Casting Co., Ltd. (China) established.
• Ahresty Corporation merged with Kyoto Die Casting Co., Ltd.
• Ahresty Precision Die Mold (Guangzhou) Co., Ltd.
(dies / China) established.
• Pascal Industry Co., Ltd. and Sugahara Precision Industry Co., Ltd.
merged and renamed Ahresty Yamagata Corporation.
• Ahresty Mexicana, S.A. de C.V. (Mexico) established.
• Ahresty India Private Limited (India) established.
• Hefei Ahresty Casting Co., Ltd. (China) established.
• Integrated Hamamatsu Plant and Toyohashi Plant,
and consolidated organizations as Tokai Plant.
• Ahresty Inclusive Service Corporation established.
• Merged Ahresty Die Mold Tochigi Corporation and Ahresty Die Mold Kumamoto Corporation
with Ahresty Die Mold Hamamatsu Corporation.
• Merged Ahresty Pretech Corporation.

AHRESTY REPORT 20247

01
Introduction

01

VisionStrategies andPerformance

Introduction

Initiatives to Support
Sustainable Growth

Data Section

FY2023 at a Glance
Number of global sites

18
sites
6

Founded1938

Proprietary products business(MOVAFLOR)

Number of employees

5,590

*

in
countries

throughout the world(Consolidated)

Proprietary Products Business (MOVAFLOR)

3.9%

987

(Non-consolidated)

Net sales

6,123

46.7％
Die Casting BusinessNet salesAsia

35,098 million yen

145,072

Annual total floor area
Japan

21％

（24.2％）

Overseas

Market sharefor raised floor
systems* for clean
rooms in Japan

million yen

million yen

95,088㎡
34,471㎡Japan75,187million yen
Net sales

158,254

Sales ratio ofparts for electricvehicles*Sales
composition
ratio by region* Aluminum die-casting

million yen

Aluminum Business

Overseas

83,067 million yen
North AmericaJapan（33.1％）（42.7％）

47,967 million yen

62,007 million yen

37,29
0,000
35,010,000(Previous year: approx.

Over

200

91.7%

)

Number of die cast machines owned

Including

units

7,057

million yen

97％

Die Casting Business

Number of automotive parts produced annually *Except MOVAFLOR

Approx.

Net sales* Electric vehicles: EVs, HEVs, PHEVs and FCVs

Percentageof recycledmaterials used in
AD12 production

Percentageof recycledmaterials used inall DC products

Aluminum business

4.4%

4,000t machine

100％

Human Resources Data
■ Consolidated Japan
Employee
ratio

Male

1,939（34.7％）
Overseas

3,651（65.3％）
84,619（82.6%）
Employee male/
female ratio
Female971（17.4%）■ Non-consolidated

Male

Number and male/
female ratio ofmanagers

276（90.5%）● Employee male/female ratio:

834(84.5%):153(15.5%)● Average age: 43 years and 6 months● Percentage of female employees taking maternity leave before and after

Female29（9.5%）childbirth and child care leave: 100%● Average monthly overtime hours: 10 hours 50 minutes● Re-employment rate of employees retiring at the age of 60: 92%

AHRESTY REPORT 20249

02Introduction

02

VisionVisionStrategies andPerformance

Initiatives to Support
Sustainable Growth

Data Section

Top Message

For Stakeholders

Looking back on FY2023 performance
Fiscal 2023 was a year of continued growth in both sales
and production of automobiles. Accordingly, our company’s
workload also increased 10% from the previous year, and thesynergistic effects of price adjustments and cost reduction
activities resulted in a 17.3 billion yen increase in net sales
and approximately 2.3 billion yen increase in operating income
over the previous year. In particular, the Proprietary Products(MOVAFLOR) Business segment achieved record-high sales
and operating income thanks to an order received for largescale project from a semiconductor-related company. However,in line with the sluggish sales of Japanese automobiles in the
Chinese market, the volume of business declined sharply in
China, which had a significant impact on the performance of ourChinese operations. Despite the efforts to revise our personnel
structure, we were unable to secure earnings. And as a result ofa review of the recoverable amount of business assets held, werecorded an impairment loss of approximately 9 billion yen andwere consequently unable to record a net profit. We sincerely
apologize to our shareholders for this situation.

Three strategies to improve corporate value

Representative Director,
President and CEO

Shinichi Takahashi

10

Our business strategy, including the 10-year Business Plan andMedium-Term Management Plan, which are formulated andimplemented based on the principle of “providing customers
globally with reliability and peace of mind backed by highquality and stable production” are focused on responding to
the electrification of automobiles as a major theme. The shift
in the business portfolio to parts for electric vehicles is steadily
progressing, responding to the accelerating speed of newvehicle launches by car manufacturers and shortening productdevelopment lead times. In the automobile market, while BEV
sales have reached a plateau as early adopter demand has run
its course, we expect the number of HEVs and PHEVs to increasein the near term. Since HEVs and PHEVs, which are equippedwith both internal combustion engines and EV components, usea large amount of aluminum die castings per vehicle, we expect

an increase in demand for die cast products and the growth inour business in the medium term. We are also actively working
to enhance profitability by improving production efficiency andreducing costs. The fact that we were able to increase sales
by 12% in FY2023 while limiting the increase in the number of
employees to 2% is a result of our efforts to establish a lean
production system (improving production efficiency, reviewing
operating systems, and devising optimal production lines).
As demand increases, from the financial aspect, we view thebalance between investment in growth and shareholder returns
as important. Shorter development lead times also shorten thetime from investment to monetization, which increases asset
efficiency and contributes to higher ROE. Effective utilizationof production equipment of existing products for new products
also leads to financial soundness. We will continue to generatecash from our business activities to achieve continued growth
and return profits to our shareholders, employees, and otherstakeholders.
As for issues related to the human capital that supports
MONOZUKURI, such as the transmission of MONOZUKURI
skills, digital human resources, and response to a declining
workforce, we employ a human resources strategy that
focuses on “human resources development,” “D&I reform,”and “engagement reform,” with which we aim to realize ourbusiness strategy. We are also working to develop the humanresources needed to realize our business strategy based on ourhuman resources roadmap, create a comfortable workplacefor everyone regardless of nationality or gender, and improve
employee engagement by holding town hall meetings to promote
understanding of our vision and direction among employees.
In FY2024, automobile sales and production are expected toremain strong and the volume of our business is also likely toincrease. We will promote each strategy to realize the 10-year
Business Plan and achieve its goals, and we will make groupwide efforts to enhance our corporate value so that we canearn the trust of our stakeholders. We sincerely ask for yourcontinued support.

AHRESTY REPORT 202411

02Introduction

02

VisionStrategies andPerformance

VisionInitiatives to Support
Sustainable Growth

Data Section

Three Strategies to Improve Corporate Value
10-year Business Plan
Enhancingearnings
strength andfinancial
structure

Business strategy⇒P18. Business Strategy
Die Casting Business

ROE● Capital policy●

Capital investment● Return to shareholders

3-YearMedium-Term
Management
Plan

To realize
the businessstrategyElectrification of automobiles
Will continuously increase until 2040 +26.1% (from 2023)●

ICEs are decreasing while BEVs will increase significantly●

HEVs and PHEVs will be stable in the near term(demand for die-cast parts per vehicle: 120% that of ICE vehicles)* The graph was prepared by Ahresty based on data of S&P Global.

12

AhrestyGroup’s
VisionImproving
diversity

Human resources development● D&I reform● Engagement reform

Developpioneering
technology
through
continuous
research

Improving
employeeengagement⇒P30. Human capital management /Human resources strategy

Reinforcing
technology
base⇒P58. Governance: Improving Corporate Governance⇒P14. 10-year Business Plan and Medium-Term Management Plan

⇒P4. Ahresty’s Corporate Philosophy and Vision

Global demand forecast for automotive die casting(Million tons)

10

Overall die-cast demand for automobiles●

Ensure yoursatisfaction
with Ahresty●

Business Environment

Corporate philosophy

Enhancingcustomersatisfaction

Human resources
strategy⇒P26. Financial Strategy

Corporate GovernanceWe brighten
our planet’s
future with ourlightweighttechnology

Shift in thebusiness
portfolio

Improvementof corporate
value

●

Beyond yourexpectations
2040

Carbonneutrality

Providing customers globally withreliability and peace of mind backed byhigh quality and stable production

Financial strategy

2040 Vision

502019 2023

2030

2040

Body,
Chassis
FCV
BEV
Series
HEV
PHEV
FHEV
MHEV
ICE

Demand for lightweight●

Expanding business fields to vehicle bodycomponents

Acceleration of electrification●

Shortening development lead time

Solving social issues
Carbon neutrality

Human capital
Shortage of workers[Shortage of workers in the five years to 2028](Ministry of Health, Labour and Welfare and other government data)

Labor shortage(if no measures taken):
Down 424,000 people
Improving productivity (use of IT and AI) :Up 158,000 people
Review of workplace environment and personnel systems(participation by women and seniors):
Up 93,000 people

Shortage ofworkers
Shortfall of 173,000
peopleAHRESTY REPORT 2024

13

02
VisionIntroduction

02

Vision10-year Business Plan and Medium-Term Management Plan

Capital policy
Equity ratio

9140billion(including investment in dies)

40% or more

Return to shareholders
Dividend payout ratio

Beyond your expectations 2040

35% or more
●

Step1

Identification of risks and opportunities due tochanges in society in 2040
Prioritization

Step2

Backcasting

Ahresty's strengths, corporate philosophy, solutions andcontributions to long-term social issues, etc.

Step3

Consideration/validation of KPIs set as (qualitativeand quantitative) targets for 2030

Step4

Discussion on/development of measures by theworking group

Step5

Approval by the Board of Directors●

10-yearBusiness Plan
target year

2830
Medium-Term Management Plan

2224 Medium-Term Management Plan priority tasks
Beyond your expectations 2040

GrowthEstablishaing low-cost, highly productive
MONOZUKURI● Promoting CO2 reduction activities

Develop pioneering technology
through continuous research●

We brighten our planet’s future with
our lightweight technology●

Achieving a steady shift to a businessportfolio focused mainly on parts forelectric vehicles

Developing technologies to create demand/
improve productivity to contribute to net
sales● Shortening development lead time

2025
Sales ratio of electric vehicle
components

Beyond yourexpectations 2040

We brighten ourplanet’s future with ourlightweight technology

201910-year Business Plan

1921
Medium-Term Management Plan

Strategy viewpoints

Develop pioneering
technology throughcontinuous research

FY2030 target

Enhancing earnings
strength and financial
structure

Net sales 160 billion yen (180 billion yen after adjustment)*

Carbon neutrality

Reduction of CO2 emissions in Scopes 1 and 2 CO2 -50% (compared to FY2013)

Shift in the businessportfolio
Enhancing customer satisfaction

Target value: 30%

Sales ratio of electric vehicle
components

Result: 21%

Sales ratio of electric vehicle
components

2027

Ensure yoursatisfaction with
Ahresty2021

develop pioneering technology throughcontinuous research

2028

2040 Vision

●

2023

ensure your satisfaction with Ahresty,
and

2527
Medium-Term Management Plan

Ensure your satisfaction with Ahresty
Creating workplaces in which people are
happy to work
● Promoting diversity in Japan● Earning the highest grade in importantcustomer evaluations

2030

●

2224 Medium-Term Management Plan●

We brighten our planet’s future with ourlightweight technology,

Target value: 55%

3-Year Medium-Term Management Plan
Each 3-year Medium-Term Management Plan through 2030 is positioned as the milestone activity for every three years toward achieving
the 10-year Business Plan.

Data Section

2040

Capital investment
Approx.
¥%The “10-year Business Plan” is Ahresty’s long-term business strategy with a target year of 2030 as a milestone to realize its 2040 Vision
and Our Goal. Backcasting from the risks and opportunities due to changes in society in 2040, such as the electrification of automobiles,
carbon neutrality, and the decline in the working-age population, the strategic perspectives, KPIs, and related SDGs materiality items were
examined and formulated based on Ahresty’s strengths, corporate philosophy, solutions and contributions to long-term social issues, etc.

Process of developing measures for the “10-year Business Plan”

Initiatives to Support
Sustainable Growth

Financial targets (Four pillars of the financial strategy)
ROE(Long-term target)

10-ye ar Business Plan strateg y view points and SDGs m ateriality item sStrategies andPerformanceMain
relevant
SDGs

Operating income margin 6%

Sales ratio of electric vehicle components 55%
Net sales of vehicle body components 4 billion yen
Earning the highest grade in important customer evaluations
Diversification of executive managers

Improving diversity

Ratio of female employees in Japan 20% or more
Ratio of female managers in Japan 10% or more

Improving employee engagement

Positive evaluation for employee satisfaction (engagement index) 80% or more

Reinforcing technology
base for weight reduction,
carbon neutrality,and enhancement ofcompetitivenessShortening development lead time
Developing advanced and innovative technology
Challenge to carbon neutral die casting* Figure adjusted to the exchange rates and aluminum prices of FY2022 at the time of formulating the full-year FY2024 business plan

Earnings strength
14

AHRESTY REPORT 202415

02Introduction

02

VisionVisionStrategies andPerformance

Initiatives to Support
Sustainable Growth

Data Section

Ahresty’s Value Creation Process
INPUT

Business activities and business models

Financial capital

Strong relationships of trustwith good customers● Capturing customer needs andmaking proposals

anesSocial capital

We aim to create an affluent society
by pursuing each of these areasand integrating them.

Ma

Globalnetworknu[Major customers]
Over 310 companies in 9
countries[Major suppliers]
Over 390 companies

fa

ct

ur

ing

M

Partnerships

Natural capital

sing

Sal
Research anddevelopment
capabilities

ia
ater

ls

Automotive parts
Raised floor systems● Aluminum alloy ingots● Peripheral equipment
for die cast production● Die casting dies●●

Financial results

Cash flow generation
Increase in ROE● Increase in stock price,
market capitalization
and TSR● Strategic investment for
growth● Maintenance of stable
rating●We brighten
our planet’s
future with ourlightweighttechnology

an“One print for multiple
locations” production system● Pursuing Optimal Process Condition Control (OPCC)
through cause-and-effect management● Establishing highly productive manufacturing
processes● Strong partnerships with suppliers

Employees

Partners
Ensure yoursatisfaction
with Ahresty

Shareholders,investors

Society and environment
Use of environment-friendly recycled
aluminum● Production within the Group(Kumagaya Plant)● Production know-how, accumulated
knowledge and data●●

Financial
base

Customers

Products and services●chaTechnologies and knowhow accumulated since
founding

RESEARCHSERVICETECHNOLOGYtIntellectual capital

gy

men

19 sites in six countries
Die casting machines:
over 200 units

lo

lop

Production capital

d

p

no

ve

Human
resources

Te c hls

deEmployees:
5,590 persons

ro

sa
po

Meeting customer needs through joint
development● Technological proposals to help solve
issues of customers● Research and development of materials
and production methods● Material property assessments,
observation and analysis of various
phenomena● System that drives meticulous design
and analysis● Achieving optimal shapes through CAE●

ur

Customerbase

Human capital[Water]807 thousand m3[Electricity]
308,179 Mwh[Fuel oil]
12,720 KL[Gas]
18,658 thousand m3

OUTCOME●dp

Equity attributable
to shareholdersof Ahresty
Corporation:
51.4 billion yen

OUTPUT

Reduction of materials andenergy consumption by
improving manufacturing
processes● Contribution to weight
reduction and carbon
neutrality● Advancement of diversity
and inclusion in humanresources● Increase of complianceawareness●

Developpioneering
technology
through
continuous
researchLocal
communities

Globalenvironment

Business structure supporting Die Casting BusinessAluminum ingot

Dies

Peripheral equipment

Sustainable growth
Enhancing Ahresty’s
strengths⇒P18. Ahresty’s strengths

External environment

16●

Solving social issues
through business⇒ P30. Initiatives to Support
Sustainable Growth

Once-in-a-century transformation of the automotive industry• Shift to electric vehicles (EVs) • Achievement of carbon neutrality by 2050 • Advancement in CASE • Promotion of work style reforms
AHRESTY REPORT 2024

17

03
VisionIntroduction

03

Strategies andPerformance

Strategies and Performance

Initiatives to Support
Sustainable Growth

Data Section

Business Strategy Die Casting BusinessBusiness strategy: Providing customers globally with reliability and peace of mind backed
by high quality and stable production

Ah re sty’s strengths
Global presence and one print for multiple locations
In addition to 11 sites in Japan, Ahresty has operations at eight sites
in five countries, namely, the United States, Mexico, China, India
and Thailand. Our die casting plants have established a mutuallycomplementary system for products, dies, and production equipmentby sharing the know-how on productivity and quality, which enables
each plant to produce and supply products of the same quality froma single drawing. It is also possible to flexibly respond to long-term
regional market forecasts and fluctuations in the volume of orders
received.

Fully integrated production system and proprietary Optimal
Process Condition Control (OPCC) technology
Ahresty has a fully integrated production system from aluminum alloy
ingot production, design, manufacture of dies, casting, and machineprocessing to manufacture and sale of peripheral equipment for die
cast production. Sensing technology is used to measure, collect,and analyze various data. We conduct OPCC activities to pursue theoptimal manufacturing conditions and to improve productivity andquality at all our plants, aiming to provide superior quality products
and attentive service.

Responding to demand for large and complex-shaped, difficult
to make parts for electric vehicles
The “eAxle” or “X in 1” installed in electric vehicles is large andhas a complex shape and structure because it integrates multiple
components such as the drive motor, inverter, and reducer. With
engines and transmissions as its main products, Ahresty is goodat producing large, complex-shaped items. By leveraging ouraccumulated know-how and global production capacity, we will
respond to the shift to electrification.

Technologies to contribute to reducing vehicle body weightand brightening our planet’s future
We have technologies that contribute to brightening our planet’s
future, including the joining technology to optimally combine
aluminum die castings and dissimilar materials to meet weight andstrength requirements, and the laser heat treatment technology to
reduce CO2 emissions in the heat treatment process by 90%.

FY2023 sales ratio of electric vehicle components
FY2030 target［ U s i ng s t at i s t i ca l qual i t y cont rol t o pursue op tim a l m a n u fa c tu r in g c o n d itio n s ］［ 2D codes ］

55%

21% 30%

FY2025 target

Aluminum die casting uses secondary aluminum alloy, which is
excellent in terms of recyclability and energy-saving. By expanding
its application from conventional powertrain components to partsfor electric vehicles and vehicle body components, we believe
we can respond to the need for weight reduction to improvefuel and electricity efficiency and help reduce CO2 emissions,
thereby contributing to conservation of the environment and theestablishment of a recycling-oriented society for the future global
environment. To continue to contribute to the mobility businessof automobile manufacturers in the future, Ahresty is shifting its
product portfolio to predominantly parts for electric vehicles andvehicle body components, with a view to responding to the rapidly
progressing trend of electrification. Seeing eAxle components,
which account for a large portion of the projected increase in global
demand for die castings associated with the shift to electrification,
as the main target, we are promoting various measures with the goalof increasing the sales ratio of parts for electric vehicles to 55% by
FY2030.

Overall die-cast demand for automobiles●

Will continuously increase until 2040 +26.1% (from 2023)

Sales Strategies for Growth Driver Regions

Development of die cooling equipment, image inspection
equipment, and other equipment supporting the evolution ofdie casting technology
Our Jet Cool System series has the largest share of the domestic
market for die cooling equipment. It is also used by many overseas
die-casting manufacturers. We have also developed our own image
inspection system that uses AI to automatically perform appearance
inspections.

［ Factors ］

Shifting the business portfolio to predominantly
parts for electric vehicles

The switch to electric vehicles is significantly
advancing. Mexico is attracting attention as a
production region for electric vehicle parts, receiving
many inquiries.

MexicoGrowth driver regions

Invest management resources to expand sales andincomeIndia

Has grown to become the third largest automotive
market in the world. Growth is expected to continue.
Net increase in electric vehicles.

Stabilization regions

Japan, the U.S.

The market is flat. The ratio of electric vehicles will
increase.

Maintain/enhance business foundations to securestable sales and income

Recovery regions

China

BEV production is forecast to increase but domestic
demand is slowing. The future is uncertain.

Secure sales through new order-taking activities
leveraging high productivity and quality and recoverincome by re-establishing the optimal business scale［ Store/analyze data ］

Materials

Improved
productivity
and quality

Equipment(Casting machines, utilities)

Casting conditions
Dies

SampleLinking measured manufacturing
parameter values to quality levels

・Design of experiments
・Statistical approach

Measures forreceiving orders
Mexico has an advantage as aninvestment location for “near-shoring” in
the North America market, where electricvehicles will increase.

India is the third largest automotive
market in the world, which willcontinue to grow mainly for electricvehicles.

Vehicle production volume by power sourcein North America
18

Vehicle production volume by power source
in India
7(Million units)

Pro p e rtie s and environmental advantages of alum inum
Aluminum’s specific gravity is 2.71, which is one-third that of steel. Increasing the use of aluminum for auto parts may therefore contributeto reducing the weight of vehicles. Also, for 97% of Ahresty’s products, secondary aluminum alloy generated by recycling aluminum
scrap is used. CO2 generated in the production of secondary alloy is about one-fourth that for steel. By taking advantage of the excellent
environmental properties of aluminum to reduce the weight of vehicles, we will contribute to climate change mitigation.

18

14

BEV

10

Priorityordersreceived

21％

FY22 - 24
eAxle-relatedparts

2027 2030

FY25 - 27
Vehicle bodycomponents(Million units)

51％

BEV

5

8

3

4
0
ICE

2019
MHEV

2023
FHEV

2027 2030
Series HEV

PHEV

0

2019

2023

Stable supply ofhigh-quality products
through an established
MONOZUKURI system● Development of humanresources that support
MONOZUKURI (humanresources education)● Shortening development
lead time through use ofdigital technologies (DX)
● Utilizing achievementsfrom joint development ofvehicle body components●

BEV

AHRESTY REPORT 2024

19

03
VisionIntroduction

03

Strategies andPerformance

Strategies and Performance

Shortening development lead time through use ofdigital technologies

Establishing low-cost, highly productive
MONOZUKURIAs various automobile needs exist in different parts of the world,
automobile manufacturers are working to shorten the vehicle
development time for the timely launch of new vehicle modelin response to diversifying needs. Aiming to respond to their
expectations, Ahresty is also working to reduce the development
lead time by 40% by utilizing digital technology to reduce the numberof times of trial production and evaluation man-hours, as well as toreduce man-hours required for manual examination.

Improving productivity with OPCC

Initiatives to Support
Sustainable Growth

Expanding business fields to vehicle body components
We envision three major directions for the adoption of aluminum die casting for vehicle body components. Among them, Ahresty focuses on multimaterial bodies.

To implement MONOZUKURI processes under Optimal Process
Condition Control (OPCC), we are working to improve productivity
and reduce the defect rate. In each process, we identify tasks forcycle time reduction, defect reduction, improvement of utilization
rate, maintenance management and other purposes, make theminto priorities based on the past activity data, and start implementing
measures expected to give greater results, thereby improving bothproductivity and quality.

1

2

Use of existing large DC machines

Multi-material bodies
Proposal of bodies that contain both pressed steel and die-cast parts
Joint development with G-TEKT Corporation is under way to achieve the best
layout of die-cast and pressed parts at minimum cost.

Production of body parts using existing die castingmachines
E.g.: Shock tower, chassis, etc.

Multi-material concept model completed
Consolidated 36 pressed parts to 2 parts, achieving significant reduction of parts● Proposing competitiveness equal to or greater than gigacasting● Entering the advanced development phase with OEMs with a viewto mass production from 2028 onward

Pressed parts●

Establishing a leaner production system through comprehensive
streamlining［ Initiative examples ］
MONOZUKURI in digital space
Shortening time for shop floor operations by
employing simulations
By simulating robot operation programs in advance,
reduce time for preparatory work by 85%
Establishing good production conditions by CAE
analysis
By comparing the analysis results at the design stage
with the actual casting results, improve analysis
accuracy and reduce the number of times of trial
production and evaluation man-hours

We are working to establish a system to produce good products
efficiently, through comprehensive streamlining. We promote
initiatives to establish a leaner production system through improving
productivity and reducing manufacturing costs, such as effective
utilization of equipment; flexible operation capable of quickly
responding to fluctuations in orders; cost reduction by streamlining
production lines and promoting appropriate personnel placement
according to the production scale; and use of digital technologies
to improve work efficiency and promote automation for manpowersaving. Since the COVID-19 crisis, we have been promoting optimal
personnel allocation throughout the Group. And through manpowersaving measures to control personnel increase even after thenumber of orders recovered, we have built a lean production systemthat ensures profitability even when facing rapid fluctuations inorders.

Fe press

100%
100%
100%

Approx. 100%
Up approx. 30%
Up approx. 10%

Gigacasting
Integrated underbody forming using an ultra-large
die casting machine Major issues concerning
introduction (by car manufacturers)

Visualization of the status of equipment use

120

Visualize the status of use of equipment held globallyto reduce man-hours relating to decisions on
specifications

Value added per hour (earnings per hour)
Number of persons* In comparison with FY2019 as 100

6,780
110

6,124

94%
97%
81%

Advantages

Disadvantages

Reduction in the number of underbody
parts / Simplification of production lines →Reduction in welding processes

Limited production locations /Lower maintainability and higher repair costs /Increase in material costs due to use of aluminum

5,938

Actions to improve profitability
Optimal personnel system, transformation of profitmaking structure

5,590
5,499

Voluntary retirement offer at two large plants in Japan

100

Development of an automatic appearance
inspection device

Transformation to a profitable structure that is resilient tofluctuations in orders● Shift to value-added work by reallocating the right people to
the right jobs●

90

Reduce human errors and variation in judgment,
reduce time for finding and training inspection
personnel

80

2019

2020

2021

2022

2023 (FY)* Value added per hour (earnings per hour) = Net sales less direct costs (rawmaterial costs, etc.) / Total hours worked by production personnel at plants

Launch of a profit reform project
Setting of improvement items by a joint team of members
from manufacturing, sales, and administration● Promote effective measures focused on improving profitability●

Ah re sty India to reinforce production of parts for electric vehicles

Promotion of product-specific cost control and price adjustments
Break down cost items for each product and extract abnormal
values→Raise cost awareness of shop floor workers and promote
improvements● Promote cost adjustments to improve profit by product●

Ahresty India will build a new plant and add new production equipment, andwill start operation of the new production line in 2025.
Completion: End of 2024
(scheduled)

Expected effect: Approx. 200 million yen/month contribution to income20

DC parts

Incorporated technology (3)Incorporated technology (1)Thin-wall molding of die
SPR joint partial heat treatment
castings
Incorporated technology (2)Performance-oriented structure

Gigacasting

WeightCost
CO2

3

Multimaterial

Trends in headcount and value added per hour

Streamlining man-hours

Increased area: Second plant (newly built) 8,256 m2
Additional equipment: 2 large die casting machines

Data Section

Effective utilization of global production capacity
Promotion of global complementary production
Optimal use of products and equipment across sites● Improve profitability through an optimal production system
while taking into account tariffs and other costs●

E.g.: Introduction of complementary production to US plant / Effect:
Reduction of new investment in casting machines (450 million yen)

Expected effect: Leveling of production, reduction of capital
investment and personnel
Enhancement of global production preparation activities
Establishment of the Production Preparation Control Office
Promote improvement and standardization of mechanisms inproduction preparation activities● Supervise and improve the status of achievement of thefollowing targets before and after the start of mass production→Quality, productivity, cost, delivery time, etc.
●

E.g.: Indian plant: Stable production when handling new production
increase in the future

Expected effect: Improved profitability due to stable production

AHRESTY REPORT 2024

21

03
VisionIntroduction

03

FY2023 performance

Die Casting BusinessNet sales

145,072 (million yen) Up 11.9% YoY

Net sales

Asia segment

In the Japanese automobile market, as car production recovered dueto the stabilization of the supply of semiconductors, resulting in an
increase in the volume of orders received, our net sales increased to¥62,007 million (up 5.1% year on year).
On the profitability side, the segment recorded a profit of ¥595 million (up137.6% year on year) due to a recovery in the volume of orders received,
as well as steady progress in price adjustments to compensate forhigher energy costs, etc.

Japan segment

62,007 (million yen)
Up 5.1% YoY

Net sales

20,000Changes in sales and segment income(million yen)

Net sales (left-hand scale)

20,000

Segment income (right-hand scale)600

15,000200
010,000

△200
△400

5,000

23Q1

23Q2

23Q3

Net sales

47,967 (million yen)
Up 29.7% YoY

Net sales (left-hand scale)¥590 million

600
400

15,000200
010,000

△200
△400

5,000

△600

0

22Q4

23Q1

23Q2

23Q3

23Q4

△200
△400

5,000

Up ¥340 million year on year
(surplus expanded)

△600

0

Full-year total sales

Segment income (right-hand scale)

0

22Q4

23Q1

23Q2

23Q3

23Q4

△800

¥35,000 million
Up ¥1,400 million (4.2%) year on year
Full-year total income
Loss of ¥650 million
Down ¥650 million year on year (loss)
Fiscal year end: December in China; March in India
Exchange rate (22Q4 ⇒ 23Q4)
Chinese yuan: 19.39 ⇒ 19.81
Indian rupee: 1.68 ⇒ 1.75

△800

Changes in sales and segment income(million yen)

20,00023Q4200

10,000Full-year total income

In the automobile market in North America, as car production recovered
due to the stabilization of the supply of semiconductors, resulting in an
increase in the volume of orders received, our net sales increased to¥47,967 million (up 29.7% year on year). On the profitability side, despite
an increase in manufacturing costs due to the rise in labor costs, etc.,
the segment recorded a profit of ¥1,242 million (a segment loss of ¥676
million was recorded a year earlier) due to the recovery in orders
received, which was associated with a recovery in production.

North America segment600

15,000△600

22Q4

Segment income (right-hand scale)400¥62,000 million
Up ¥2,900 million (5.1%) year on year

Data Section

Full-year total sales

Changes in sales and segment income
Net sales (left-hand scale)

Initiatives to Support
Sustainable Growth

In the automobile market in Asia, despite a decline in the volume of orders
received in China, reflecting stagnant sales of Japanese car manufacturers,
our major customers, in the Chinese market, net sales increased 4.2%
year on year to ¥35,098 million due to an increase in the volume of orders
received thanks to the start of mass production of new products at ourplant in India. On the profitability side, the segment recorded a loss of ¥650
million (a segment income of ¥8 million was recorded a year earlier) due tothe decrease in orders received associated with a decrease in productionin China Plant and the impact of higher costs pertaining to the ongoing
instability in production of some products in India Plant. The India Plant
is improving productivity and the business performance is expected torecover in FY2024 and beyond.

Full-year total sales
400

035,098 (million yen)
Up 4.2% YoY(million yen)

22

Strategies andPerformance

Strategies and Performance△800¥47,900 million
Up ¥10,900 million (29.7%) year on year
Full-year total income¥1,200 million
Up ¥1,900 million year on year
(returned to the black)Fiscal year end: March in U.S.; December in Mexico
Exchange rate (22Q4 ⇒ 23Q4)
U.S. dollar: 134.95 ⇒ 144.41
Mexican peso: 130.78 ⇒ 140.55

Major awards from customers
Denso Corporation / Excellent Performance Award● Toyota Motor (Changshu) Auto Parts Co., Ltd., Toyota Motor
Engineering & Manufacturing (China) Co., Ltd. / FY2023 Quality
Excellence Award● Nissan Motor Co., Ltd. / Certificate of Appreciation for
Excellent Quality - FY22 Top Rank in Supplier Score Card
● Nissan North America, Inc. / 2023 Regional supplier quality
award finalist● JATCO Ltd. / JATCO Supplier Award 2022 Regional Special
Award● JATCO Mexico, S.A. de C.V. / JATCO Mexico 20th Anniversary
Certificate of Appreciation / JATCO Supplier Award 2022 Best
Performance Award● JATCO (Guangzhou) Automatic Transmission Ltd. / JATCO
Supplier Award FY2022 Quality
Award● Yanmar Global Expert Co., Ltd. /Certificate of Appreciation● Dongfeng Liuzhou Motor Co., Ltd. /FY2023 Advanced Supplier Award●

Customer Satisfaction Survey results (comparison of FY2021 andFY2023)Overall evaluation
FY21
FY23

18%

33%

49%

27%

63%

10%

Response (sense of speed)
FY21

30%

33%

39%

FY23

37%
41%

20%

Problem solving, measures for improvement
FY21

15%

FY23

29%

SatisfiedSomewhat satisfied

39%

46%
37%

34%

Other (Cannot say, somewhat dissatisfied, dissatisfied)Survey period: From January 2024 to March 2024
Survey target: Customers in Japan
Responses obtained: from 23 companies

AHRESTY REPORT 2024

23

03
VisionIntroduction

03

Aluminum Business
Development of alloy ingots with less CO2 emissions
The Ahresty Group is working to reduce CO2 emissions from theperspectives of Scopes 1, 2, and 3. In alloy ingot production,

Accumulated data and know-how

especially from the perspectives of Scope 3 Category 1 (raw material

Ahresty conducts component analysis on its own. We develop andprocurement), we are reducing the use of new ingots, which are

manufacture alloys suited to the characteristics and needs of ourassociated with a large amount of CO2 emissions, and expanding

customers based on the analysis data that we have collected andand manufacture “alloy ingots with less CO2 emissions” by evolving
our unique compounding technology and replacing new ingots withrecycled materials in the production of each type of alloy.

Ahresty’s Strengths
Delivered to a wide range of customers in all 47 prefectures of Japan from Hokkaido to Okinawa Prefecture
MOVAFLOR is delivered to all 47 prefectures of Japan from Hokkaido to Okinawa Prefecture, and is widely used in clean rooms, computer centers,
plants, offices, etc.

［ Domestic delivery record ］

50,000

Aluminum is a valuable resource, which can be recycled and reused

10,000over and over again. At our Kumagaya plant, die casting products0

new material. We have set specific environmental targets for our

Kyushu

2021

2023

2022
Scope 2: Electricity

Kanto

66,848m
2,430m(FY)

Scope 3: New ingots

Ahresty received the “2023 Excellent SupplierAward” for its ingenious VA/VE proposals andtheir implementation.

⇒P44. Environment：
An Environment-friendly Company

41,237m2
Expanding sales in Asian markets such as China and Southeast
Asia

Prescribed load
30000N

Received large orders in Beijing, China
Major semiconductor device manufacturer in China
Clean room approx. 15,000 m2 (about 43,000 sheets)

Strongest inJapan
C60X type

C60N type［ Overseas delivery record ］

Tokyo
2

Expansion of product lineup of high-strength products for clean rooms
Prescribed load
20000N

2

FY2023 performance

FY2023 performance

Net sales

7,057 (million yen)

Changes in sales and segment income
Net sales (left-hand scale)

1,000

Segment income (right-hand scale)

800

6,000

600
4,000
400
2,000

200
2020

28,740m2

from MAHLE Japan Ltd.

manufacturing processes.

2019

928 m2

18,863m2

Received 2023 Excellent Supplier Award

production activities to reduce the environmental impact of our

Hokkaido

Chugoku

Scope 1: Fuels

their life on the market, come back to have their life renewed as0

126,042m2

2

Shikokuthat have been produced in the die casting plant and finished

8,000

Chubu

221,279m

30,00020,000129,662m2

Kinki

40,000

Environmentally friendly material, aluminumContributing to a recycling-oriented society

Tohoku500 m2 or more/case (April 2013 - March 2024)

Kumagaya Plant CO2 emissions(t-CO2)(million yen)

Data Section

the ratio of recycled materials used. We are working to develop

accumulated, as well as our own know-how.

Aluminum BusinessInitiatives to Support
Sustainable Growth

Proprietary Products (MOVAFLOR) Business

Ahresty’s Strengths

24

Strategies andPerformance

Strategies and Performance

2021

2022

2023

(FY)

0

Down 11.5% YoY

In the Aluminum Business, the sales weight decreased
17.2% year on year. Net sales decreased 11.5% year on
year to ¥7,057 million due to production reduction at somebusiness partners. On the profitability side, the segment
recorded a profit of ¥141 million (down 48.6% year onyear) due to the impact of the decrease in sales weight.

Proprietary Products(MOVAFLOR) BusinessChanges in sales and segment income(million yen)

8,000

6,123 (million yen)

Net sales (in Japan)

Net sales (left-hand scale)

1,000

Segment income (right-hand scale)

6,000

Increased
about 3-foldin 10 years

800
600

4,000
400
2,000
0

200
2019

2020

2021

2022

2023

(FY)

Up 87.2% YoY

In the Proprietary Products Business, net sales
increased 87.2% year on year to ¥6,123 million,
mainly reflecting an increase in orders for projects
for the main customers, such as a clean room at a
semiconductor-related company. On the profitability
front, the segment achieved a stable profit of ¥891
million (up 212.1% year on year) partly due to theincrease in net sales.

0

AHRESTY REPORT 202425

03Introduction

03

VisionStrategies and Performance

Strategies andPerformance

Initiatives to Support
Sustainable Growth

Data Section

Financial Strategy
Strategy to Achieve the Management Targets

businesses with companies with an advantage in parts for electric

The Ahresty Group has launched its 10-year Business Plan, a long-vehicles both inside and outside Japan. We see the acceleration

term management plan toward fiscal 2030, and has been promotingof electrification as a big chance for the growth of the Group as it

the 2224 Medium-Term Management Plan as the first action

will lead to the expansion of demand for die-cast products and anplan of the 10-year Business Plan. Under the 10-year Businessincrease in opportunities to acquire new customers. Meanwhile,Plan, in response to changes in the external environment, suchthe automobile industry is in a very fluid situation with uncertainties

9%

as the acceleration of electrification of automobiles and moves

such as the difference in speed of the shift to electric vehicles andCapital policy

toward carbon neutrality, we set "shifting the business portfolio tothe emergence of new automobile manufacturers.

predominantly parts for electric vehicles," "establishing low-cost,

The Group adopts a business model whereby we receive orders

highly productive MONOZUKURI," and "reducing CO2 emissions infor products for which net sales will be recorded three years later

production," as the pillars of our strategy. Based on these pillars,

and make advance investments for production equipment for such

we are making efforts to secure net sales, improve productivity, andproducts. Now, in the period of a grand transformation with many

enhance earnings strength by shifting from parts for combustion

variable factors in the industry, we believe it is important to have aengines to parts for electric vehicles.

robust balance sheet that enables us to stably receive orders and

The automobile industry, the customer of the Group’s major

make investments even if an unexpected change occurs.

products, is undergoing a grand transformation. In response to theWe will promote the 10-year Business Plan to achieve a shift toelectrification of automobiles, which has been progressing fasterpredominantly parts for electric vehicles, and thereby improve ourthan expected, the Ahresty Group has been working to increase

profitability as soon as possible. By promoting operations based onorders for parts for electric vehicles, expand business to vehicle

the "Four Pillar Financial Strategies", we aim to improve the pricebody parts using aluminum for weight reduction, and start or expand

book value ratio.

Four Pillar Financial Strategies (FY2023 to FY2030)
ROE(Long-term target)• Recover net sales and sales weight by implementing an electrification strategy, and increase profits by reducing costs andimproving productivity• Pursue an optimal financial leverage that enables the achievement of both a sound balance sheet and the ROE target• Maintain an equity ratio that ensures resilience against fluid market trends, such as regional differences in speed of electrificationand the emergence of new automobile manufacturers in the automobile market• Pursue an optimal financial leverage that enables the achievement of both a sound balance sheet and the ROE target

Equity ratio

40% or more

Capital investment

140

Approx. ¥billion(including investment in dies)

Return to shareholders

Dividend payout ratioor more35%• Create an operating cash flow as the source for implementing growth investment for a shift in business structure• Implement investment for manpower saving in view of the decrease in labor force and the rise in labor costs in the future• At the same time, strengthen investment discipline, such as the criteria for selecting order/investment programs, and improve
investment efficiency by making effective use of idle equipment, etc.

• Create stable profits to ensure a 35% or higher dividend payout ratio• Flexibly purchase treasury shares in view of the conditions of the business environment, capital accumulation, investment, stock
prices, etc.

With the four-pillar financial operation, aim to achieve a PBR of 1

Cost of capital and ROE
2040 Vision and 10-year Business Plan

Aiming to realize management that is conscious of the cost of capital and stock price, Ahresty focuses on enhancing corporate value over the
medium to long term by achieving an ROE that exceeds the cost of capital. Toward achieving the financial strategy target of 9% ROE, we use an
ROE Tree to break down ROE into easier-to-manage monitoring indicators. By incorporating them into specific actions on site, we aim to improve
profitability and capital efficiency.

Beyond your expectations 2040

Net sales:

180billion yen*

[ FY2030 target values ]Operating income:10.8billion yen*

Operating margin:

6%

Ahresty’s cost of capital and ROE target

Actions to improve ROE

Business strategies

Net sales

Shifting the business portfolio to predominantly parts for electric vehicles• Establishing low-cost, highly productive MONOZUKURI • Reducing CO2 emissions in production

Financial strategies

ROE

Improve medium- to long-term capital efficiency byachieving a return on equity (ROE) higher than thecapital cost

Capitalinvestment

Continue growth investment to capture demand
for weight reduction and electrification, develop
new customers for parts for electric vehicles, andpromote man-power/labor saving

Cost of capital

ROE target

8.8%

9%

Operating income margin, cost and SG&A ratio

ROA
Profitability

Net income

Maintain a sound financial structure to continue
flexible order-taking and growth investment

Return toshareholders

Provide returns to shareholders
consolidated business results

Human resources strategies
Creating workplaces where people are happy to work
• Promoting diversity • Human resources development according to the human resources roadmap

based

on

* Based on our estimates (as of May 2023)* Calculated based on CAPM theory
Cost of capital = β×(Rm–Rf)+Rf
β: Beta (sensitivity of our stock price to TOPIX andother market indices)
Rm: Expected rate of return (risk premium)
Rf: Risk-free rate (calculated based on 10-year government
bond yield)

Selling price control (price negotiations)
Expense control (cost reduction efforts)
Improving productivity, manpower saving and automation

Total assets
Assetefficiency

Capital policy

Shifting the business portfolio to predominantly partsfor electric vehicles
Expanding customer portfolio, expanding components

Financialleverage
Total assets
Equity capital

Inventory turnover, fixed asset turnover
Improving capital investment efficiency
Improving equipment operating cycles
Shortening development lead timeInventory reduction

Return policy

Purchase/cancellation of treasury shares
Maintaining dividend payout ratio

Controlling financial leverage

Management ofinterest-bearing debt

* Figures adjusted to the exchange rates and aluminum prices of FY 2022 at the time of formulating the full-year FY 2024 business plan

26

AHRESTY REPORT 2024

27

03
VisionIntroduction

03

Strategies andPerformance

Strategies and Performance

Initiatives to Support
Sustainable Growth

Data Section

Consolidated Financial Highlights
Net sales

Operating income / Operating income margin

Net sales ■1st half ■2nd half

Operating income ■1st half ■2nd half

158,254 million yen

Cash Allocation (FY2023 to FY2030)

2,291 million yen / 1.4%（%）

(million yen)(million yen)

In view of the business environment of the Group and the characteristics of the Group’s businesses, our basic capital and shareholder return policy

100,000

3,000

is to properly return profits to shareholders while making growth investment for electrification and maintaining a sound financial structure. To this

80,0002,000

end, we have provided shareholders returns based on consolidated business results.

60,000

1,000

3

The basic capital and shareholder return policy of providing appropriate returns while bolstering the financial structure and management base for

40,00000business development in the medium and long terms, we strive to improve the corporate value of the Company.

20,000△1,000△3

0△2,000Creating cash through business growth

Further business growth and proper allocation to shareholder returns

Creating cash

Cash allocation targets
Business investment

Operating cash flow

160 billion yen

Capital investment for growth

140 billion yen

Increasing the sales ratio of electric vehicle
components
Increasing profits by reducing costs andimproving productivity

Return to shareholders
Returns to shareholders based on consolidated
business results (dividends, share buybacks)

18 billion yen

2022

2023

2024

(Forecast)

(FY)

6

2022

2 billion yen

Aim to achieve within the 10-year Business Plan

Operatingincome

4

20

2.29

billion yen

billion yen

FY 2022

FY 2023

FY 2024 (Plan)

140 billion
35% or more

10.8

billion yen
Operatingmargin6%

Dividend payout ratio
Equity ratio

ROE

40% or more

9%

million yen

Net income / Net income margin

Return on equity (ROE) / Return on assets (ROA)*1

Net income ■1st half ■2nd half

Net income margin

Return on equity

7,699 million yen / △4.9%

Return on assets

14.3% /△5.7%

△

30

0

（%）

（%）

4

4

0

0

△2,000△4△4,000△8△6,000△12△8,0002022△10,000

2023

2024

(FY)

25

■Net interest-bearing debt

Free cash flow(100 million yen)

200

400

150

15

679,200

600,000

0

499.9

500

△50

5
0

Purchase period

2020

2021

2022

2023

2024

(Forecast)

May 19, 2023 to
December 31, 2023

February 19, 2024 toAugust 31, 2024

* Implemented cancellation of treasury shares on February 19, 2024: Number ofshares cancelled 530,000* Number of treasury shares as of March 31, 2024: 337,057

Equity ratio

28,200 million yen / 39.1%(100 million yen)

Acquisition limit

5

(FY)

■Operating cash flow

Previous result(million yen)

2024

(Forecast)

Net interest-bearing debt*3／Equity ratio

Item

10

2023

Operating cash flow / Free cash flow*2

Number of sharesacquired
Total amount

10

2022

Net loss was recorded, resulting in negative ROE and negative ROA.

20

10

△16

(Forecast)

（%）

50

300

100

15

△8
△12

18,319 million yen / 4,379 million yen

We flexibly implement the acquisition of our own shares as part of thecapital policy in line with our financial strategy, taking into consideration ourbusiness environment, financial status, etc.

28

△4

A loss was recorded mainly due to the recording of an impairment loss on
the plants in China, occurrence of impairment losses on fixed assets atsites in Japan and overseas, and reversal of deferred tax assets.

Acquisition of treasury shares
Dividend per share

(yen)

2,000

FY 2030

Return to Shareholders(FY)

In addition to an increase in the volume of orders received by the Group as awhole, price adjustments to compensate for higher energy costs, etc.
steadily progressed. Although the sales of Japanese car manufacturers in
China remained sluggish, cost optimization progressed through reduction of
fixed costs, etc., resulting in an increase in income.

(million yen)

Capital investment ¥2024(Forecast)

Reduction in net interest-bearing debts

Flexibly rebalance the allocation in view of the performance condition and investment
needs

Ro a d ma p

2023

Sales increased 12.2% thanks to the steady recovery in the volume oforders received due to the stabilization of supply of semiconductors andother factors, as well as the impact of the weak yen in the foreignexchange market. Sales volume also increased 9.6%, reflecting therecovery of production by car manufacturers.

△

28

Operating income margin

40

200

50

30

100

2020

2021

2022

2023 (FY)

Investment cash flow increased due to the resumption of capital
investment, which had been restrained, along with the recovery in thevolume of orders received. However, free cash flow remained positive as
operating cash flow also increased due to the recovery of earnings.

0

2020

2021

2022

2023 (FY)20

Net interest-bearing debt decreased by 2.3 billion yen from the previous year
due to the reduction of interest-bearing debt while maintaining cash anddeposits on hand at a high level. The equity ratio was 39.1% due to a decrease
in retained earnings as a result of the recording of impairment losses.

(FY)*1 The Partial Amendments to Accounting Standard for Tax Effect Accounting and relevant Guidelines have been applied from the beginning of the fiscal year
ended March 31, 2019.
*2 Free cash flow = Cash flows from operating activities – Cash flows from investing activities
AHRESTY REPORT 2024
*3 Net interest-bearing debt = Interest-bearing debt - Cash and deposits

29

04
VisionIntroduction

04

Strategies andPerformance

Initiatives to Support Sustainable Growth

Initiatives to Support
Sustainable Growth

Data Section

Social：Ahresty’s Human Resources Development
Hu ma n c a p ital management / Huma n resources strategy

Development of digital human resources
Systematic development
Training, OJT, assignment

As indicated by the fact that Ahresty’s Corporate Philosophy begins with “Let us take pride in our work,” we believe that human resources are the driving
force behind the evolution and growth of the Ahresty Group. We are promoting various measures with the aim of being a company in which employees
respect each other’s values and take pride in their work regardless of nationality, age, and gender, and of strengthening corporate competitiveness bymaking the most of our diverse human resources and maximizing their individual abilities, thereby increasing productivity and competitiveness.

Step5

We provide various types of training (robot teaching, basic statistics,
multivariate analysis courses, various courses and IoT workshops
for DX promotion, etc.) necessary in production sites where IoT and
automation are advancing. We also focus on strengthening digital
infrastructure and developing leaders in data analysis.

Step4
Select candidates

Step3

Three pillars of the human resources strategy

Step2

Three pillars of the human resources strategy

Management targets

Systematic and strategic human resources development according to thehuman resources roadmap● Proactive development of female managerial personnel● Development of education systems (globally same quality, enhancementof MONOZUKURI foundation)●

Promoting diversity of management (diversification of executive managers)
Promoting recruitment of new female graduates and expansion of job fields for
women● Providing opportunities for people with disabilities to play active roles (operationof a special subsidiary company)

Corporate
Philosophy●●

D&I reform

Engagement reform

2040 Vision

Ensure your satisfaction
with Ahresty

Achieving a good work-life balance, and health and productivity
management● Enhancing career support systems● Realization of ergonomics, elimination of industrial accidents●

Enhancement of career support system

Define “desired human resources”

As for issues related to the human capital that supports MONOZUKURI, such as the transmission of MONOZUKURI skills, digital human resources,
and response to declining workforce, we employ a human resources strategy that focuses on “human resources development,” “D&I reform,” and“engagement reform,” with which we aim to realize our management targets.

Human resources
development

Determine required competenciesof “desired human resources”

Step1

Determine the theme of human resources
for prioritized development

Examples of human resources themes:
Candidates for next-generation General Managers, candidates for next-generation
managers, production engineers capable of realizing the same production/quality
globally

Development of education systems
We have developed education systems to offer courses that allow
employees to systematically learn about MONOZUKURI. In order topass on the technologies and know-how inherited from our founding
and to promote the same quality and MONOZUKURI, we provide
the same level of education for all of our global operation sites
and expand opportunities to acquire and practice the knowledge
and skills necessary to perform and improve operations, such as
statistical methods and no-programming systems.

We register each employee’s past career history, strengths andweaknesses, and future aspirations in the human resources
database, and, based on this information, provide more opportunities
for employees to think about their careers voluntarily throughinterviews with their supervisors. We aim to draw out their latentabilities, promote the placement of the right persons in the rightdepartments, and encourage them to take on challenges whileconstantly broadening their work perspectives.

Enhanci ng career suppor t s y s te m s

Setting/reviewing
career goal plans

Supporting

Establishingan educationplan

employee’s“career self-reliance”

Evaluation index

Engagement index evaluation of 80% or more in 2030

(Unique indicators set by extracting important items
from employee surveys)

Major education systems●

Competency
assessment toconfirm growth

Global RST Learning (RST Gakuen)

Global Kaizen Meeting● G/E trainer development●

Engagement index evaluation
We have set 80% evaluation in the employee engagement index
as a management target for 2030, and are promoting various
measures to become a company that ensures satisfaction of its
employees. For the engagement index, each operation site picks
up “things that employees value” extracted from employee surveys
and stress check items, based on which the Ideal State Indicators(ISI) are set. In addition to common measures, measures specificto each business site are also promoted. And an engagement index
evaluation is calculated based on the positive response rate for thesame survey items.
FY2023 engagement index

Positive evaluation :* Index varies by site.

30

31.6%~ 83.0%*

Human resources roadmap
Ahresty has formulated a human resources roadmap to develop
the human resources necessary to realize its business strategy.
Backcasting from the medium- to long-term business strategies andbusiness environment outlook, we identify desired human resources
and required competencies and select candidates with potential
while taking into consideration the career plans of individual
employees. Through providing training, OJT, and assignments, we
systematically develop our human resources.

MONOZUKURI JUKU
Ahresty’s human resources development⇒https://www.ahresty.
co.jp/en/business/die_casting/hr_development

Receiving
training and work
experience●

・Providing career education to learn the idea of career development
・Conducting career interviews［ Career pl anni ng i mage ］❶ Career organization andself-understanding

Past

Experience

Experience❷ Setting career goal

Experience

Experience

Who I am now

Experience

Careergoal

Future❸ Career planning

AHRESTY REPORT 202431

04
VisionIntroduction

04

Strategies andPerformance

Initiatives to Support Sustainable Growth

Initiatives to Support
Sustainable Growth

Data Section

Occupational Health and Safety
Oc c u p a tio nal Health and Safety Po licy
Top Management’s Commitment
Top management will establish occupational health and safety management
systems to develop and maintain a working environment where all workers at the
Ahresty Group can work without risk to health and safety.
Top management will also establish an OHS Committee at each site, which reflects
any feedback from the workers to the systems to promote continual improvement.

Our Declaration
We at the Ahresty Group will:
1 work with Ahresty Safety Principles in mind;
2 work toward occupational health and safety goals to achieve a healthy
workplace with zero accidents;
3 comply with occupational health and safety requirements, such as national
and local laws and regulations; and4 strive to develop a safety working environment and raise safety awarenessthrough involvement in occupational health and safety activities, such as
risk assessment, education and training, HHK and KY activities.

Ahresty Safety Principles
1. Safety shall be the firstpriority over any otheroperations.
2. S a f e t y s h a l l b e m o r eimportant than any otherwork.
3. Safety shall always takepriority over production
efficiency

Initiative examples

Workplace improvement based on ergonomics• Patrolling using a special check sheet• Promoting machine safety and risk assessment for explosions and fire
• Structuring an ideal form of anzen-dojo (intensive safety training)• Strengthening safety activities by setting monthly themes for safetyenhancement• Providing health and safety education and conducting safety
conscious human evaluation• Improving equipment safety specifications• Improving fire prevention capabilities through fire prevention selfinspection• Promoting pedestrian-vehicle separation for forklifts

We promote workplace improvement based on ergonomics to
reduce operations involving high physical workloads. By employing
automation and Karakuri mechanisms, we promote the expansionof workplaces and work fields that are safe and comfortable for all
members to play active roles regardless of their gender and age, as
well as the improvement of production efficiency.

4. S a f e t y s h a l l b e g i n w i t horganizing and cleaningof work areas.
Each and every one of us
shall practice the principles,
aiming for zero accidents.

Expansion of workplaces (positions) where women can play an active role

Cases for improvements related to heavy materials andunergonomic postures(Cases)781

800
anzen-dojo(intensive safety training)

Occupational health and safety management system
President
Entire company
General Health and Safety Administrator of the Group

All-Ahresty OHS Committee(General Manager of the Safety and Environment Dept.)(Plant General Manager Meeting)

All-Ahresty OHS Secretariat

General Health and Safety Administrators(Safety and Environment Section)

All-Ahresty Health and Safety Administrators Meeting
Each Health and Safety Administrator

Each business site

Each business site
General Health and
Safety Administrator

General Health and
Safety Administrator

Health and Safety
Administrator

Health and Safety
Administrator

Health and Safety
Administrator

OHS
promotion department

OHS
promotion department* The occupational health and safety organization of each business site shall be based on its
organization chart.

32

The Ahresty Group upholds a “safety slogan” every three years
to eliminate industrial accidents and injuries as a united Ahresty
Group. The Ahresty Group as a whole also aims to develop a safe
and comfortable working environment through initiatives such as
restructuring anzen-dojo (intensive safety training) program, which
will be the core of our safety training, enhancing patrols and fire
prevention, improving equipment safety functions, and strengthening
measures to prevent fire and explosion.

400

Industrial accidents■Number of accidents ■Number of accidents
involving lost working not involving losttime
working time
(Cases)Rate of accidents
involving and not
involving lost working
time

Rate of accidents
involving lost working
time(Rate)

40

200
0

4

2019

2020

2021

2022

2023

(FY)

Worker satisfaction with major improvements*(average): 4.2
30

3

1.51
20

2

6

Each business site

General Health and
Safety Administrator

OHS
promotion department

Eliminating industrial accidents andinjuries

600* Worker satisfaction evaluation criteria: Interviewed workers after improvement
is implemented
5 points: Much better than before, 4 points: Better than before, 3 points:
Somewhat better than before and acceptable, 2 points: Not better than before,
1 point: Not better at all

Expansion of workplaces (positions) where women canplay an active role（%）

Safety slogan for the three years from fiscal 2022 to 2024

"Find potential hazards
in your workplace!
Think and act safely
by observing the rules!"

100

10

1

16

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

65%

68%

76%

60

0.41
0

80

0
(FY)

* Rate = Number of accidents × 1,000,000 / Total working hours* From FY2017, also includes the number of accidents resulting from poor ergonomics* From FY2018, also includes the number of accidents on our premises involving
contracted construction workers

40
20
0

2021
2022
* Percentage of total workplaces (positions)

2023

(FY)

AHRESTY REPORT 202433

04
Introduction

04

VisionInitiatives to Support Sustainable Growth

Strategies andPerformance

Initiatives to Support
Sustainable Growth

Data Section

Development of a Corporate Culture in Which Everyone Can Workin Good Health and Feel Safe
Health and productivity management
Ahresty conducts its corporate activities under its Corporate
Philosophy of "Let us take pride in our work, respect theory andCreating workplaces where a good work-life balance can be achieved

Initiative examples
1. Maintenance and improvement of health• Encouraging employees to receive medical consultation after

experimentation, value originality and invention, and offer superior

health checkups

products and service to our customers," aiming to achieve one of• Promoting improvement of lifestyle habits

our goals, "ensure your satisfaction with Ahresty," in the 2040 Vision.

• Preventing health problems due to long working hours

We are working to offer superior products with quality that exceeds

2. Creating a comfortable workplace environment

We are developing the workplace environment and systems to realize a “work-life balance,” a state in which work and life are balanced and bothhave a positive impact on each other.

Initiative examples

expectations and services that satisfy customer needs. To win• Supporting employees in balancing medical treatment and work

Review of overtime operations, etc.

the absolute trust of our customers, a daily blending of theory and• Ensuring proper working hours

We reviewed our work contents and methods, and have eliminatedmeetings on holidays and outside of prescribed working hours, inprinciple. For Group-wide meetings and events that involve travel orbusiness trips, we are advancing the introduction of hybrid meetingsand operational improvements, considering the merits of both theimportance of face-to-face contact and the efficiency of online
access.

experimentation and of originality and invention is vital. We believethat all of these can be achieved if each of our employees takes• Preventing passive smoking
3. Mental health carepride in their work.

• Encouraging employees to receive stress checks

Based on the belief that the health of employees and their families• Providing health consultation for employees under high stressis essential for the sustainable growth of Ahresty, we position• Enhancing the consultation system (introducing EAP)

the promotion and maintenance of employee health as one of ourimportant management tasks, and have introduced "health andCertified as a Health & Productivity Management Outstanding

Encouraging employees to take childcare leaveproductivity management."

Organization 2024 (large enterprise category)

Ahresty encourages both men and women to take childcare leave.
We encourage not only female employees but also male employees
to take paternal leave (childcare leave at childbirth) or divided
childcare leave. Our President presents a message for families anda childcare handbook that provides tips for new fathers as part of the
support for balancing work and life events.

* Health and Productivity Management is a registered trademark of Nonprofit Organization
Kenkokeiei.

Ahresty was recognized as a Certified Health & Productivity
Management Outstanding Organization 2024 (large enterprise
category) under the Certified Health & Productivity Management
Outstanding Organizations Recognition Program hosted jointly by

System for promoting health and productivity management
Health and Productivity Management
Promotion Manager
President & COO

Safety andEnvironment Dept.

Each business site

Kaigi. This is the third consecutive certification it has received.
■What is the Certified Health & Productivity Management Outstanding
Organizations Recognition Program?
This program certifies large enterprises, SMEs, and other corporations that practice
particularly excellent health and productivity management based on their initiatives foraddressing local health issues and health promotion initiatives promoted by Nippon Kenko
Kaigi.

Human Resources Dept.

Each business site

the Ministry of Economy, Trade and Industry and Nippon Kenko

Each business site

Granted Silver Certification as an excellent health company

OHS Committee

OHS Committee• Changes over Time of Ahresty’s Health and Productivity Management• Diversity List of Ahresty’s Employees• Ahresty’s Health Map Chart⇒https://www.ahresty.co.jp/company/csr/safety_health(in Japanese)

34

Percentage of employees taking childcare leave
Male

Female

43.2%

100%

Average number of days of childcare leave taken
Male

Response to diversifying workstyles
At Ahresty, 100% of the employees who took childcare leave have returned
to work. To support employees in playing an active role throughout thedifferent stages of their lives, Ahresty is working to establish an environment
in which employees feel comfortable in taking maternity and childcare
leave, and has also introduced systems to help them balance childcare
and work after the leave, such as the reduced work hour system that isavailable until their children graduate from junior high school and the hourly
paid leave system. Ahresty has also introduced various other programs
to promote flexible workstyles, including a flextime program, teleworking(home working), and a nursing care leave system.

Ahresty renewed and acquired Silver Certification, following
OHS Committee

FY2023 Work-life balance data (Group in Japan)

40

Female366

Percentage of employees who returned to work after childcare
leave

100%
Number of employees working reduced hours

55

2021, from the Tokyo Federation of Health Insurance Societies
as an excellent health company that has made a health company
declaration, and is actively working to improve the workplaceenvironment and promote employee health for health andproductivity management.

Town hall meetings were held from late June to September 2023 at our sites in Japan to promote
employees’ understanding of the direction Ahresty is moving in under the leadership of new President■What is Silver Certification?

Under this certification program, a company
that has declared to insurers that the entire
company will work to promote good health andhas then achieved a certain level of results iscertified as an excellent health company.

To wn h a l l me e t i n g s - D i a l o g u e b e t we e n ma n a g e me n t a n d e mp l o yees

Shinichi Takahashi. President Takahashi explained the direction of the company, citing five keywords:
carbon neutrality, shift to EV, diversity, digital innovation, and safety and security. He also introduced
himself, and during the Q&A session, he was asked questions by employees about a variety of issues,
Excellent Health Company Certification No.: Kengin No. 1613 (2)Certification period: July 1, 2023 to June 30, 2024 (renewedcertification)such as the introduction of gigacasting, overseas business expansion, and the shortage of humanresources.

AHRESTY REPORT 2024

35

04
VisionIntroduction

04

Strategies andPerformance

Initiatives to Support Sustainable Growth

Initiatives to Support
Sustainable Growth

Data Section

Diversity & Inclusion
FY2023 Ratio of female employees (Group in Japan)

Supporting the participation of women

FY2030 target

Ahresty believes that when people of different nationalities, ages, andgenders play active roles, diverse perspectives and values can be utilized
and various innovations can be promoted. Especially in Japan, we are
increasing the workplaces and job fields in which women can plan an
active role at manufacturing sites, where the majority of workers are
male, and promoting step-by-step initiatives to increase the ratio of female
employees, mainly by hiring new graduates through strategic recruiting
activities, and to develop female leaders.

14.7%
FY2023 Ratio of female managers (Group in Japan)

FY2030 target

01

Increase workplaces
and work fields

Increase the ratio of
female employees

Phase

01

03
●

Enhancing communication for action reform
Training (knowledge and experience in work)

Women highly motivated to work●

Jobs that only men are in charge of

Ergonomics analysis
Work environment improvement● Gender-free education
●

Phase

2022-2024
Localization ofoverseas site managers

Develop female leaders

Women with high management abilities●

Active recruitment of competent humanresources● Active assignment to expanded
workplaces where women are active

Looking ahead to the maturation of the Japanese automobile market, the declining birthrate and aging population in Japan, the globalization of ourcustomers, and the expansion of our sales and employee ratio outside of Japan, limiting the scope of talent management for executive management
personnel to Japanese nationals alone means that the potential of non-Japanese human resources is not fully utilized. Based on the recognition
that in order to achieve future growth mainly in markets outside of Japan, it is necessary to make maximum use of the Group’s human resources,
including those of non-Japanese business sites, Ahresty is promoting “diversity in management” and is building a system that enables humanresources of diverse nationalities, as well as women, to play active roles as executive managers.

10% or more

2.5%

Increasing the ratio of female employees (hiring new graduates),
expanding job fields for women02

20% or more

Diversification of executive managers

Phase

02

2025-2027
Diversification of head office
functional departments(1) Strengthening governance and management structure● Creating a system to share management philosophy, Grouptargets, and Group strategies directly with overseas staff● Re-examination of governance of affiliated companies

Increased female leaders

032028-2030
Diversification ofmanagement execution(2) Establishing a system to enable identification of candidate
human resources at all times(3) Training system for candidate human resources(Bringing awareness from a local to a global perspective)(4) Strengthening English language education in Head Office
departments●

Increased women activein the workplace

Julio Cesar Doctoriarena Torres appointed President of Ahresty Mexicana, S.A. de C.V. (Ahresty

60

51.9

54.5

2023

2024

40
20
0

13.8

16.7

2021

2022

(FY)

Initiative examples
Improving the working environment and systems⇒P35. Creating workplaces where a good work-life balance canbe achieved● Workplace improvement based on ergonomics⇒P33. Workplace improvement based on ergonomics● Exchange meetings and factory tours with leading diversity
companies● Diversity & Inclusion training and education● Enhancement of the communication of information on women’s
empowerment●

36

Mexicana) in June 2024

Establishment of “D&I Community”

Percentage of female new graduates hired
（%）

Phase

01

Assigned regardless of gender

In December 2023, Ahresty established the “D&I Community” with theparticipation of 12 female employees from our operation sites in Japan.
Conferences are held to promote understanding of diversity promotion andprovide a forum for two-way communication between female employees andthe company. Through discussions,issues in career development at thecompany are identified and solutions
thereto are explored from a female
perspective.

Granted the highest rank Eruboshi Certification as a women’s
empowerment company
Ahresty acquired the highest rank (three-star) Eruboshi Certification from
the Minister of Health, Labour and Welfare based on the Act on Promotion of
Women’s Participation and Advancement in the Workplace.
■What is Eruboshi Certification?
Under this certification program, the Minister of Health,Labour and Welfare certifies companies that aresuperior in terms of empowerment of female employees
and meet certain criteria based on the Act on Promotionof Women’s Participation and Advancement in the
Workplace (hereinafter referred to as the "Act on
Promotion of Women’s Participation").

Julio Cesar
Doctoriarena Torres
Ahresty Mexicana, S.A. de C.V.
President, Mexican certified public accountant
Career history
December 2009 Joined Ahresty Mexicana’s
Accounting and Finance Department
May 2012 General Manager of Administration
Department
May 2015 Director in charge of Administration
Department
May 2020 Director and Vice President
June 2024 Director and President

Expertise and strengths
In my previous position at a major accounting and auditing firm, I was a certified public
accountant and was responsible for auditing the accounts of our client companies andassisting them with cost, management, and internal control-related matters. Joining
Ahresty Mexicana was my first time working in the manufacturing industry. I learned
the connection between manufacturing and finance through communicating withand listening to the shop floor members. Since then, we have continued to promote
the strengthening of our administrative structure, including purchasing, safety
management, and human resources. My strength lies in my willingness to learn and mydesire to improve the company.
Aspirations for the future
In order to share our vision and achieve our goals as a member of the Ahresty Group,
the first step is to overcome language and cultural differences, maintain close
communication with Ahresty Japan and the other overseas sites, and respect eachother’s positions. Becoming president of Ahresty Mexicana is a great challenge, but I
hope to strengthen the team spirit of the Ahresty Mexicana members, which is one of
our strengths, and their high motivation to take on all challenges. In addition, we willcontribute to the growth of the Ahresty Group as a whole by improving our technicalcapabilities and productivity at production sites.

AHRESTY REPORT 2024

37

04
VisionIntroduction

04

Strategies andPerformance

Initiatives to Support Sustainable Growth

Initiatives to Support
Sustainable Growth

Data Section

Respect for Human Rights

Employing persons with disabilities

H u ma n R i g h t s
Certified as an excellent enterprise under the Monisu
Certification Program
In November 2022, Ahresty Inclusive Service Corporation wascertified as an excellent enterprise under the Monisu Certification
Program, which certifies small and medium-sized enterprises
excelling in the employment of persons with disabilities, run by the
Ministry of Health, Labour and Welfare.
■What is the Monisu Certification Program?
This is a program in which the Minister of Health, Labourand Welfare certifies small and medium-sized enterprisesthat excel in promoting the employment of people withdisabilities and stabilizing their employment.

Salary calculation, processing of data related to personnel
and labor affairs, such as social and labor insurance,
retirement benefits, corporate pensions, and employee
shareholding associations, etc.

Job-based employment system, regular employee recruitment system, teleworking●

Clarification and standardization of operations using work standards●

Individual chat support, every morning meetings, communication
Ahresty Inclusive Service Corporation
Established: October 2020 (Certified as a special subsidiary in June 2021)
Employees: 13 (3 seconded employees and 10 employees with disabilities,
including 2 regular employees)
Business activities: Personnel and labor affairs Capital: 20 million yen(100% by Ahresty Corporation)

To g e th e r with the community
Ahresty has been making continued efforts to ensure that its plants
become rooted in the local communities and develop human resourcesthat can initiate leadership in contributing to society. Ahresty iscommitted to growth together with the local communities.

Communication with the Local Communities

Ahresty is actively involved in activities to protect the naturalenvironment based on employees’ view that they want to contribute toenvironmental protection outside of work.

Volunteer activities in Iwaya Ryokuchi●

Initiative examples
Based on the Guiding Principles on Business and Human Rights by
the United Nations Human Rights Council, we have initiated humanrights due diligence that follows a series of processes to assess,prevent, mitigate, monitor, and disclose information on the negative
impacts of Ahresty’s business activities on human rights, including
its supply chain.
In assessing the negative human rights impacts, we determine thethemes to focus on by evaluating the impact of each risk in terms ofseverity and likelihood of occurrence, based on an overall picture ofmanifest or potential human rights-related risks.
In FY2024, we focus on four key themes: excessive and unfair working
hours, discrimination and harassment, child labor and forced labor,
and the rights of foreign workers.

Meeting for appreciating the nature of the Arakawa River andKumagaya

Human rights due diligence

Clean-up of the Flower Road and Adopt-a-River activities● Tenryu River clean-up campaign“Welcome turtles” clean-up campaign●

530 (zero waste) campaign in Kumagaya Industrial Park, etc.

Child labor and forced labor
Excessive and unfair working hours(1) Assessing human rights
impacts(2) Integration into ourown management

Assessing on two axesof severity and likelihoodof occurrence● Identifying key issues
to be addressed●(4) Disclosing information●

Conducting a review
and disclosing theresults

Discrimination and harassment●

Formulating andimplementing initiatives
to prevent and mitigate
human rights issues(3) Monitoring●●

Tracking the progress in
implementation of measures
Monitoring and supervising
the status of measures at the
Sustainability Meeting chaired
by Director, Chief of General
Administrative Command

Small

Likelihood of occurrence

Large

Other activity examples
Disseminating the human rights policy to suppliers both in Japanand overseas● Continuation of conflict minerals survey for the 3TG metals plus
cobalt● Revision of the Ahresty Group Code of Conduct (to fulfill items
identified as lacking in the third-party evaluation)
Added statements regarding prohibition of child labor and forcedlabor, minimum wage, working hours, and freedom of associationand collective bargaining rights●

Thai Ahresty Die certified as acompany with Good Labour Practices
(GLP)

●

●

Priority areas

Rights of foreign workers

Establishment of human rights remedy mechanisms

Natural environment protection activities

Lake Hamana clean-up campaign●

For human rights-related activities, the details of our initiatives arechecked and reported at the Sustainability Meeting, which is chairedby the Director of the General Administrative Command.
⇒P43. Sustainability promotion system

Formulation of human rights policy

Ahresty takes measures to eradicate the sources of problems, including
noise generated in the manufacturing process and delivery vehicles
at its plants. We visit houses, residents’ associations, and companies
located near the plants to speak with the people regularly, using thisreport. We also take part in crime prevention patrols in communities,
hold plant tours and various events inviting local residents.

Activity examples●

Human rights impact assessment result

Promotion system

Small

Shared staff in charge●

Ahresty Group Human Rights Policy⇒ https://www.ahresty.co.jp/en/company/csr/human_rights/

Severity

Measures to create an environment where people are happy to work

The Ahresty Group aims to realize a prosperous society by pursuing and promoting the integration of Research, Service, Technology. Therefore, we
believe it is our responsibility to respect the human rights of all people involved in our business, and hereby establish as our policy to respect humanrights the Ahresty Group Human Rights Policy based on the Guiding Principles on Business and Human Rights by the United Nations Human Rights
Council.

Large

On October 1, 2020, Ahresty established Ahresty Inclusive Service
Corporation to promote the recruitment and training of employeeswith disabilities and create workplaces in which diverse humanresources work together. Ahresty Inclusive Service Corporation wascertified as a special subsidiary company under the Act to Facilitate
the Employment of Persons with Disabilities on June 14, 2021. With
the aim of improving the efficiency of administrative work within theGroup, personnel and labor affairs, such as salary calculation, social
and labor insurance, and retirement benefits, were consolidated,enabling the employment of people with disabilities for PC clerical
work by taking advantage of the work breakdown and standardization
know-how as a manufacturing company.

Thai Ahresty Die was certified as a company with Good Labour
Practices (GLP) by the Department of Labour Protection andWelfare of Ayutthaya Province, Thai Ministry of Labour. GLP
Guidelines are guidelines for good labor practices to help
improve employment and working conditions in Thailand.
Thai Ahresty Die was surveyed and evaluated on 11 items,
including the labor management system, prohibition of forcedlabor, working environment
for women, wages, and rangeof benefits, and was certified
as a company with good labor
practices.

Stakeholder engagement

38

AHRESTY REPORT 2024

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04
VisionIntroduction

04

Strategies andPerformance

Initiatives to Support Sustainable Growth

Initiatives to Support
Sustainable Growth

Data Section

Sustainability Roadmap
We believe that in order to fulfill our corporate social responsibilities and grow sustainably,
it is important for Ahresty to address social issues through its business activities taking advantage of its strengths.

components and 4.0 billion yen in sales of vehicle body components

Two priority tasks and Sustainability
Roadmap

as the target for FY2030. Toward carbon neutrality, we are working
to "reduce the use of fossil fuels by improving energy efficiency, etc."
for Goal 7, and aiming to reduce CO2 emissions in Scopes 1 and 2

Ahresty’s priority tasks are to achieve Goals 13 (mitigating climate

by 50% (compared to FY2013). Monitoring tasks such as promotion

change) and 7 (energy) of the Sustainable Development Goals

of diversity, realization of a good work-life balance, improvement(SDGs), the common goals of the international community decidedof employee satisfaction, etc. are issues that need to be addressedat the UN Sustainable Development Summit, that it is hoped will

and we conduct activities to achieve the goals in the frameworkcontribute significantly to solving social issues and that are alsoof the 10-year business plan and medium-term manage-ment plan.

closely related to manufacturing aluminum die castings, Ahresty’s

We will contribute to solving social issues through our businessmain business. We are working to "improve the energy consumption

activities, aiming to enhance trust of our stakeholders and for theefficiency of vehicles by providing aluminum die-cast products"

sustainable growth.

for Goal 13. Aiming to contribute to electrification and reducing
the weight of vehicles, we set 55% sales ratio of electric vehicles

Establishment ofDiversity andInclusion
Promotion OfficeObtaining"Eruboshi"
Certification*1

Reducing
CO2 emissionsin Scopes 1 and 2

Employeesatisfaction
positive
response
rate

29

▲

More than55%%(vs. FY 2013)

30

Sales ratioof electricvehiclecomponents%

55

Sales ratioof electricvehiclecomponents%… Actions toward carbon neutrality
Reduction of CO2 emissions in Scopes 1 and 2⇒P44. Environment:
An Environment-friendly Company… Contribution to mitigating climatechange through our product sales*2

Sales ratio of electric vehicle components⇒P18. Business Strategy Die Casting
Business

Diversificationof General
Managers
and Executive
Officers… Improving employee engagement

Ratio offemaleemployees(in Japan)

Positive evaluation for employee satisfaction(engagement index)⇒P30. Social: Ahresty’s Human Resources
Development

Ratio offemalemanagers(in Japan)… Promoting diversity

20%
or over10%
or over

Employeesatisfaction
positive
response
rate

More than80%

Challenge tocarbon neutral
die casting

Reducing
CO2 emissionsin Scopes 1 and 2

Reducing
CO2 emissionsin Scopes 1 and 2

50

▲

%

(vs. FY 2013)

Challenge
to carbon
neutrality

Acquisition of Eruboshi certification, ratio of female
employees (in Japan), ratio of female managers (inJapan)⇒P36. Diversity & Inclusion*1: A program to certify companies that meet certain criteria based on the Act on Promotion of Women’s Participation and Advancement in the Workplace and that are excellent in promoting empowerment of women.
*2: By increasing supplies of aluminum die-cast products, which are lighter than iron, the energy consumption efficiency of vehicles can be improved, contributing to the reduction of CO2 emissions.

40

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04
VisionIntroduction

04

Initiatives to Support Sustainable Growth

Strategies andPerformance

Initiatives to Support
Sustainable Growth

Data Section

Message from Chair of the Sustainability Meeting
We contribute to the realizationof a sustainable society while

Materiality Matrix for SDGs

Sustainability promotion system
Board of Directors Meeting

P ri o ri t y t a s k sHighApprove / Supervise management plans,management policies, etc.

communicating with stakeholders

Director and Managing Executive Officer

Executive Committee Meeting

Impact on Ahresty’s stakeholders

and fostering relationships of trust

Approval / Instruction

Chair : Ahresty Group Sustainability Lead Officer（Director in charge of General Administrative Command ）Secretariat : Management Planning Dept.
Member : Chief of Manufacturing Command,
General Manager of Safety and Environment Dept.,
General Manager of Management Planning Dept.,
General Manager of Human Resources Dept.

Hideki Nariya

Deployment of approval / instruction

Mo n i t o ri n g t a s k s
Impact on Ahresty

Prioritytasks

Monitoringtasks

Ahresty’s Corporate Philosophy and sustainability“Research, Service, Technology - We aim to create an affluent
society by pursuing and integrating each of these areas.” This is
the Ahresty’s Corporate Philosophy, representing also its mission
and purpose. Over the years since its founding, under this corporate
philosophy, the entire Ahresty Group has worked for the sustainable
development of society through business activities such as theprovision of a variety of products and services. We believe that we
can contribute to solving social issues as a company playing a partin the supply chain for the global automobile industry.

Priority tasks and promotion system
In addressing the Sustainable Development Goals (SDGs), which arecommon goals for the international community, Ahresty evaluated
key issues to be addressed (materiality) on two axes of the impact
on business and the impact on stakeholders, and has identified

42“Improve the energy consumption efficiency of vehicles by providing
aluminum die-cast products” (Goal 13: mitigating climate change)and “Reduce the use of fossil fuels by improving energy efficiency,
etc.” (Goal 7: energy) as the priority tasks. Sustainability is positioned
as an important management issue, and various measures to solve
the issue are being promoted in conjunction with the goals in the
10-year Business Plan, Medium-Term Management Plan, and othermanagement plans.
The Sustainability Meeting, the sustainability promotion and review
organ chaired by the Director in charge of General Administrative
Command, started sustainability initiatives with a focus on actions
against climate change in FY2020. In response to the recent increasein various social requirements, including not only addressing
climate change but also respect for human rights and human capitalmanagement, the Chief of Manufacturing Command and General
Manager of Human Resources Dept. were added to the members of
the Meeting in FY2023 to make the organization a more specialized
one. While taking into account the business environment, theDeliberate / Report important mattersrelated to business execution

Sustainability Meeting

Chair of Sustainability Meeting

Social Issues Ahresty addresses

Submit / Report management plans,management policies, etc.

Priority tasks

Collaboration

High

Monitoring tasks

Issues selected as having a big impact

Issues to be promoted inon Ahresty and Ahresty’s stakeholders todaily work operations

Responsible Responsible Responsible Responsible
Dept. / Site
Dept. / Site
Dept. / Site
Dept. / Site

Risk Management
Secretariat(Management Planning Dept.)be addressed as priority goals*Responsible department: department or office of Ahresty Corporation that supervises the entire
group regarding a specific operation (function) for which it is responsible

members share information on social issues, analyze risks andopportunities, examine monitoring issues, and confirm the progress
and achievement of activities and targets. The contents of theexamination and discussions are also reported regularly to the
Executive Committee Meeting and the Board of Directors Meeting.

Initiatives in FY2023
As climate change measures in FY2023, we promoted activities toreduce CO2 emissions during production, etc., and contribute toweight reduction of vehicles through our products in line with our
Medium-Term Management Plan. We also identified and surveyed
Scope 3 CO2 emissions. Regarding Scope 3, aluminum ingots, ourmajor material, have significant impact at two stages: the purchasestage (emissions during ingot production) and the use stage after
the ingots are installed as automotive parts (emissions during
vehicle operation). We therefore believe that we can contributesignificantly to mitigating climate change by expanding the range
of use of recycled aluminum ingots with low CO2 emissions andcapital management, each operation site picks up “things that
employees value” based on various indicators such as employee
satisfaction, and conducts engagement improvement activities that
respond to diverse values. As for human rights, we have deployed
our established human rights policy to our suppliers in Japan andoverseas, and continuously conduct periodic surveys of conflictminerals. We are also working to create an optimal system from a
global perspective to promote integrated activities in the Ahresty
Group’s supply chain, including our business partners.
We will continue to strive to contribute to the realization of asustainable society in response to the social issues we must
address as a company, while communicating with our stakeholders
and fostering relationships of trust.
⇒P30. Human capital management / Human resources strategy⇒P46. Disclosure Based on TCFD Recommendations

increasing the sales ratio of parts for electric vehicles. For human

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Introduction

04

VisionStrategies andPerformance

Initiatives to Support Sustainable Growth

Initiatives to Support
Sustainable Growth

Data Section

Environment: An Environment-friendly Company
Ahresty Green Convention

E n viro n me ntal Policy
1. We are well aware that our activities of development, production, sales, and disposal are related to and influence the global
environment, and we establish our environmental purpose, goal, and implementation plan, revise them as necessary, and constantly
strive for improvement in our environmental conservation activities.
2. We observe environmental regulations, rules, and agreements of national and local governments, stakeholders etc., and establish ourown standards to the extent they are technically and economically feasible, and strive for further environmental preservation.
3. We give special priority to the following aspects and make efforts to protect the environment and prevent pollution.
1) We thoroughly manage and constantly improve the facilities and processes related to air pollution and water contamination.
2) We maintain a 100% recycle rate in regard to waste materials.
3) We promote the reduction of the total amount of waste materials, the expansion of aluminum recycling business, and contribute torecycling-oriented society.
4) We work to prevent global warming, focusing on reducing CO2 emissions through the use of renewable energy and improvement ofenergy efficiency with the aim of achieving carbon neutrality.
5) We aim to develop and design environmentally friendly products and commodities.
4. We stimulate awareness for environmental issues among our employees with respect to environmental protection by constantly
providing training and internally communicating the policy.
5. As a good corporate citizen, we enhance a harmonious relationship with society by striving toward environmental conservation of thelocal community.

FY2023 Reduction of CO2 emissions in Scopes 1 and 2■ Head Office and Technical Center
Estimated annual power

FY2030 target
FY2024 target

28.9% reduction 29%

generation use: Approx.

50% reduction

65% of annual electricity
use (estimated to reduce

reduction

emissions)■ Ahresty Techno Service

FY2013) and further achieve carbon neutrality by 2050, Ahresty is
promoting emission reduction activities and measures based on thethree pillars of “stop,” “convert,” and “reduce” CO2 emissions.

Introduction of solar power generation
Following the introduction and start of operation at the Tokai Plant(Plant 1) in March 2021, solar power generation systems were

electricity use (estimated to reduce approx. 30% of total CO2 emissions)

Conversion to energy with less CO 2 emissions, energy
conservation activities
Ahresty is promoting the conversion of energy used for melting fromheavy oil to city gas (LNG) (approx. 29% reduction per calorific value).
In addition, each business site sets its own energy conservation
targets and implements various measures.

Energy conservation activities examples and results●

introduced and started operation at the Head Office/Technical Centerand Ahresty Techno Service in January 2024. For other plants where
installation is possible, the systems are being introduced gradually,
and installation is scheduled to be completed at all suitable plants inJapan by the end of FY2024.

●

Application of a small amount of mold-release agent: Reductionof electricity consumption by shortening the time for application,
air blow, etc.
(Ahresty Kumamoto) 26% reduction of Scope 2-derived CO2
emissions in the casting process of the subject products compared
to before the improvement (approx. 7.7 t-CO2 reduction per year
estimated)

44

Ahresty is promoting technological development that contributes tothe future of the global environment, including laser heat treatment
technology that reduces the amount of CO2 emitted when rigid plates
and die castings are mechanically joined to one-tenth.

［ Laser heat treatment technology ］
Heat treating costs

CO2 emissions
Reduction to

Reduction toT7 heat treatment Laser heat treatment

T7 heat treatment Laser heat treatment

Cases of improvements reported at the 21st Ahresty Green
Convention
Business siteone
quarter

one
tenth

Theme

Ahresty Wilmington

CO2 reduction project

Ahresty Mexicana

Reduction of electrical energy
consumption by fixing air leaks inprocessing lines

Tokai Plant

CO2 reduction activity and greening
activity in the Die Section

Kumagaya Plant

Reduction of CO2 emissions throughreduced use of new ingots

Guangzhou Ahresty

Reduction of electricity by reducing air
use

Hefei Ahresty

Promotion of CO2 emissions reduction

Ahresty Die Mold Hamamatsu

Reduction of compressor electricity
consumption

Ahresty Tochigi

Reduction of compressor electricity
consumption at processing plant

Ahresty India

Reduction of water usage by reusing
water

Ahresty Kumamoto

Reduction of CO2 emissions by applicationof water-soluble undiluted mold-release
agent

Ahresty Yamagata

Reduction of air consumption inprocessing lines

Estimated annual power generation use: Approx. 35% of annual

Initiative examples
Aiming to reduce CO2 emissions by 50% by 2030 (compared toAhresty Green Convention is an assembly held under theEnvironmental Policy to report on improvements in a broad range
of environment-related fields. Effective activities reported at
the Convention are introduced at other business sites and thendisseminated throughout the Group, to help reduce the environmental
impact and preserve the environment in local communities.

approx. 50% of total CO2

FY2023 CO2 emissions 213 thousand t-CO2 [FY2013 (base value) 301 thousand t-CO2]

Development of CO2 emissions reduction technology

Laser heat treatment of shock tower-type product“Laser heat treatment technology” received the Onoda
Prize“Development of a laser heat treatment technology for SPR jointsof aluminum die casting that reduces
CO2 emissions to one-tenth,” a study
by Ahresty’s Isao Akuzawa, Shunzo
Aoyama, Yoshiteru Kondo, andNobuyuki Sakai, received the Onoda
Prize from the Japan Die Casting
Association.

A h r e s t y To c h i g i r e c e i v e d E x c e l l e n t P r i z e
i n K u b o t a G r e e n P r o c u r e me n t Aw a r dAhresty Tochigi received Excellent Prize in Kubota Green Procurement Award for its CO2 emissions
reduction activity “Fuel consumption intensity reduction of No.2 Melting Furnace [Reduction of heavy
oil usage].”<Improvement effects>
Fuel intensity reduced from 61.1 L/t to 56.1 L/t (5.0 L reduction)
CO2 reduction effect 364.2 t-CO2/year

AHRESTY REPORT 202445

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Introduction

04

VisionStrategies andPerformance

Initiatives to Support Sustainable Growth

Disclosure Based on TCFD Recommendations
The Ahresty Group has endorsed the TCFD* recommendations on March, 2023, and will work toenhance disclosure from the perspectives of "Governance," "Strategy," "Risk Management," andTo identify risks and opportunities due to climate change, and in
disclosing the impact on its financial plans and the countermeasures
to be taken, the Ahresty Group extracts risks and opportunities forfiscal 2030, using the 1.5 to 2°C and 4°C climate warming scenarios
published by IEA or IPCC.

Initiatives to Support
Sustainable Growth

Data Section

IEA…Net Zero Emissions by 2050 Scenario, Sustainable Development
Scenario, etc.
IPCC…RCP 2.6, RCP8.5"Metrics and Targets."

Range of the strategy*TCFD: Task Force on Climate-related Financial Disclosures

The criteria for impact assessment were revised in FY2023 in light of the performance levels.

Governancea) Describe the board’s oversight of climate-related risks andopportunities.
b) Describe management’s role in assessing and managing
climate-related risks and opportunities.

Meeting structure and its role in the sustainability promotion system
Board of Directors Meeting

Executive Committee Meeting

Sustainability Meeting• Collects information on the social environment, laws andregulations, and trends in peer companies’ responses relating tosustainability

46

Impact on profit 100 million yen or more

Impact on profit 500 million yen or more

Medium

Impact on profit 30 million yen or more and less than
100 million yen

Impact on profit 100 million yen or more and less than 500 million yen

Small

Impact on profit Less than 30 million yen

Impact on profit Less than 100 million yen

Revised criteria

Strategy

Impact on business andfinancial results
4°C
scenario

Large

Small

Technology Increased costs of carbon offsets (CCUS, carbon credits, CO2 capture,development conversion and storage technologies).

MediumSmall

Decrease in market size due to materials other than aluminum replacing
steel

MediumMediumIncrease in procurement costs due to soaring aluminum prices

MediumSmall

Decrease in sales of existing products due to the electrification ofvehicles

Large

Small

Decrease in the acquisition of new customers or suspension of business,
etc. (decrease in orders received) due to lack of response to climatechange and environmental issues, or lack of disclosure of such activities

Large

MediumDelays in responding to environmental issues damaging the reputationof stakeholders, discouraging customers from purchasing, making it
difficult to raise funds from investors, and affecting investors’ ESG
investment decisions.

Small

Small

Acute

Damage to production sites and suspension of their operations due tonatural disasters, and delays in procurement due to logistics paralysis

Small

Small

• Strengthen BCP• Secure emergency power supply (secure emergency power sources and utilize in-house power generationequipment)

Chronic

Decrease in working hours and uptime rate due to preventive measuresagainst prevailing infectious diseases

Large

Large

• Flexibly establish a crisis center• Prepare infectious disease response manuals, etc., implement infection prevention measures, and mitigate
the impact on operations, based on the experience gained in responding to COVID19

Resource
efficiency

Growing need for recycled ingots reflecting the need to reduce CO2
emissions (Reduce the amount of new ingots used and expand theuse of recycled materials. Possibility of meeting the needs through theevolution of compounding technology at the Kumagaya Plant)
Increasing demand for recycled materials

Large

Small

• Explore compounding and melting technologies• Propose the use of aluminum ingots using recycled materials

Energy source

Decrease in renewable energy procurement costs due to thedevelopment of new policies and systems related to renewable energy

MediumSmall• Promote measures to reduce CO2 emissions (introduction of solar power generation, energy conversion,energy conservation activities, purchase of renewable energy) in the challenge to achieving carbon
neutrality in 2050, and accumulate knowledge relating to the use of renewable energy• Collect information on renewable energy procurement routes and the introduction of relevant new policies
and systems

Increase in sales of climate change mitigation and adaptation products

MediumSmall• Ensure the competitiveness of aluminum die-cast products by developing and proposing demand creation
technologies that focus on the superiority of LCA (low CO2 emissions, recyclability) and the characteristics(light weight, flexibility in shape, rigidity) of aluminum die-cast products• R&D of CNDC

Sales increase due to increase in orders for ZEV products including EVs
and FCVs (e.g. motor cases, E-Axle housings)

Large

Medium• Earn a good track record in receiving orders for electric vehicle parts and secure medium- to longterm competitiveness (expansion of customer base, improvement in competence of sales personnel,
enhancement of price (manufacturing cost) competitiveness)• Steadily receive orders for target products through the alignment of manufacturing plant strategies andsales department strategies

Increase in the proportion of aluminum die-cast products in automobile
parts due to the need for weight reduction (replacement of steel withaluminum)MediumMedium• Increase orders for vehicle body parts (targetting of customers to be ranked up as a supplier for BEV parts
that require further weight reduction, and collect information on trends in large die castings such as gigapresses and changes in the supply chain)

Policy/regulationa) Describe the climate-related risks and opportunities theorganization has identified over the short, medium, and longterm.
The Ahresty Group has created an environmental roadmap and asustainability roadmap and is working to improve them because
the risks related to environmental issues can affect its businessactivities over a long period of time. In fiscal 2022-2024 which is theperiod of the medium-term management plan, and looking ahead tofiscal 2030 which is the target year of the 10-year business plan, we
examined physical risks such as extreme weather brought about by
climate change, and transition risks such as the introduction of new
government policies and regulations, and changes in market needs.
Risks and opportunities identified are reflected in the Group's strategy.

Increase in procurement costs due to introduction of carbon tax, etc.

Market trend

Marketevaluation

Product/Serviceb) Describe the impact of climate-related risks and opportunities
on the organization’s businesses, strategy, and financial
planning.
c) Describe the resilience of the organization’s strategy, taking
into consideration different climate-related scenarios,
including a 2°C or lower scenario.

Our response policy

2°C orlower
scenario

Opportunities• Deliberates the medium-term management plan, 3-year management
policy (including the setting of key performance indicators andtargets) and the risk management plan
• Deliberates, makes decisions, or receives reports on importantmatters related to the Group’s sustainability, such as sustainabilityrelated risks and opportunities; activity guidelines and plans; andexternal communication and disclosure, including those regarding
TCFD recommendations

Criteria before revision

Large

Contents

Physical risks• Approves the medium-term management plan and 3-year management
policy• Regularly receives reports from management and supervises
sustainability initiatives, including the status of response to TCFD
recommendations• Oversees management’s response to risks which have a significant
impact on the company’s management, including climate changerisk• Incorporates the sustainability-related risks analyzed and identified
by the Sustainability Meeting Secretariat into the risk management
plan, and formulates an action plan for risk avoidance andreduction in cooperation with the department responsible for eachidentified risk.
• Formulates a risk management plan, manages its implementation
status, and reports to the Executive Committee Meeting and theBoard of Directors Meeting

Risks⇒P43. Sustainability promotion system

ImpactRisk Management Secretariat

Transition risks

The Ahresty Group identifies climate-related risks and opportunities,
analyzes their impacts, and compiles countermeasures at the
Sustainability Meeting. Important matters discussed at the
Sustainability Meeting are escalated for deliberation and reported
at the Executive Committee Meeting, which role is to deliberateor receive reports on important matters related to business
management
The Board of Directors Meeting, chaired by the Director andChairman, receives regular reports on the content of the Executive
Committee Meetings and supervises sustainability initiatives,
including the status of responses to TCFD recommendations.

• Identifies sustainability-related risks and opportunities, analyzes
their impacts, compiles countermeasures, and reports the results
at the Executive Committee Meeting• Communicates and disseminates the decisions to responsible
departments, as well as other relevant divisions, departments, andworking groups in order to be reflected in the business plan andactivities

Market• Promote measures to reduce CO2 emissions (introduction of solar power generation, energy conversion,energy conservation activities, purchase of renewable energy) in the challenge to achieving carbon
neutrality in 2050
• R&D of carbon neutral die casting (CNDC)• Collect information on trends in environmental regulations and CO2 emissions reduction policies, and swiftlyreflect the results in business strategies based on impact analysis• Ensure the competitiveness of aluminum die-cast products by developing and proposing demand creation
technologies that focus on superiority in LCA (low CO2 emissions, recyclability) and the characteristics (lightweight, flexibility in shape, rigidity) of aluminum die-cast products• Mitigate the impact by devising procurement strategies and negotiating with customers to shorten the time
lag in reflecting aluminum market prices to selling prices• Increase orders for parts for electric vehicles (strengthen sales to OEMs, Tier 1 companies, and non
Japanese companies that are leading the way in electrification, and formulate and promote order strategies
for each region in view of different trends in environmental regulations and the shift to electrification)• Increase orders for vehicle body parts (promote the development of joining technology for dissimilarmaterials and seek cooperation with companies that have a competitive edge in the production of vehicle
body parts)• Strengthen profitability in non-automobile fields (MOVAFLOOR products)• Multifaceted initiatives (CO2 reduction, vehicle weight reduction, CNDC development) ongoing as companywide key strategic items in the 10-year business plan and medium-term 3-year policy• Proactive disclosure and external communication on efforts to reduce CO2 emissions, the importance ofactivities as part of business strategies, targets and results, etc.
• Foster trust and earn high credit by strengthening engagement with stakeholders• Collect information on trends in environmental regulations and CO2 emissions reduction policies, and swiftlyreflect the results based on impact analysis in business strategies for each region*CNDC = Carbon Neutral Die Casting

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VisionIntroduction

04

Strategies andPerformance

Initiatives to Support Sustainable Growth

Ahresty identifies climate-related risks and analyzes their impact at
the Sustainability Meeting.
Risks that have been analyzed to have a large impact are integrated
with other company-wide risks and are subject to evaluation andmanagement by the Risk Management Secretariat.

Risk Managementa) Describe the organization’s processes for identifying andassessing climate-related risks.
b) Describe the organization’s processes for managing climaterelated risks.
c) Describe how processes for identifying, assessing, andmanaging climate-related risks are integrated into theorganization’s overall risk management.

⇒P63. Risk Management

Metrics and Targetsa) Disclose the metrics used by the organization to assessclimate-related risks and opportunities in line with its
strategy and risk management process.
b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3
greenhouse gas (GHG) emissions and the related risks.
c) Describe the targets used by the organization to manage
climate-related risks and opportunities and performanceagainst targets.

●

which account for more than 90% of its GHG emissions.
Using Scope 1 and 2 CO2 emissions as metrics, we are working to

Board of Directors Meeting
Supervise

reduce CO2 emissions.

ReportData Section

The calculation of Scope 3 CO2 emissions for FY2022 has been completed. As for Category 11 (use of sold products), which is associated with the largest emissions, we are working on targets such asincreasing the sales ratio of parts for electric vehicles in the 10year Business Plan. By increasing supplies of aluminum die-castproducts, which are lighter than steel, the energy consumption efficiency of automobiles can be improved, contributing to the reduction of CO2 emissions.
● CO2 reduction per weight against gasoline vehicle (ICE)HEV: Approx. 54%, PHEV: Approx. 60%, BEV: Approx. 70%

The Ahresty Group has set reduction targets for CO2 emissions,

Risk management process

Initiatives to Support
Sustainable Growth

A 10% increase in the weight ratio of parts for electric vehicles will
result in a reduction of approximately 31,500 t-CO2 (equivalent to2.8% of the entire Scope 3 emissions).

* CO2 emissions (Scope 1, 2, 3): Calculated based on the guidelines listed in thereference source and the ratio of sales weight by power source in FY2022.

⇒P14. 10-year Business Plan and Medium-Term Management Plan

Executive Committee Meeting
Approval / Instruction

Sustainability Meeting
Identify and analyze
sustainability-related risks,
mainly related to climate change

Propose /ReportCO2 emissions (Scope 1, 2, 3)

Deliberate / Report plan

Scope1,2

Risk Management Secretariat(thousand t-CO2)

Formulation and progress monitoringof risk management plan

300

■Scope 1 emissions ■Scope 2 emissions

301
CO2 emissions (if no measures taken)

Deployment of approval / instruction

224

Propose / Report

195

200

Responsible Dept. / Site

Responsible Dept. / Site

Responsible Dept. / Site

209

207

213

213
50% reduction
150

Responsible Dept. / Site
146

Identify and analyze to prevent / reduce independent risks related to dept. / site

137
130

140

141

77

65

68

66

2019

2020

2021

2022

100

Risk management process

Responsible party①Risk identification /analysis

Identify risks that may affect Ahresty’s management. Analyze thepossibility of such risks becoming manifest and impact in the event of
manifestation.

Sustainability Meeting②Risk assessment

Assess risks based on the results of the risk analysis. (Identify the risks
that need to be addressed by risk management plans.)

Risk Management Secretariat③Formulation of risk management plans

For risks assessed to be subject to risk management plans, set goals andactivity plans and receive approval at the Executive Committee Meeting.

Risk Management Secretariat④Promotion of risk avoidance/reduction activities

Promote activities to avoid/reduce identified risks based on risk
management plans.

Department responsible forthe risk
Relevant sites

Monitor the progress status of risk management plans.
Report the activity results once a year at the Executive Committee
Meeting and the Board of Directors Meeting.

Risk Management Secretariat⑤Monitoring/management/reporting of risk
management activities

48

Function0

2013(Base year)

Promote activities
based on three pillars

1. Stop CO2 emissions
2. Convert to energy with less CO2 emissions
3. Reduce consumption of CO2-emitting energy

76

2023

Aiming at carbon neutrality
2024
Target2030
Target2050
Target(FY)

Continue energy conservation activities
and implement effective items from new
innovative technologies* Reference FY2023 Scope 2 location base: 145 thousand t-CO2
Scope of aggregation: All domestic manufacturing sites (8 locations) + Head Office/Technical Center, Tokyo Head Office, all overseas manufacturing sites (7 locations)
Reference source: Scope 1: We used the factors according to the purchased energy type specified in the List of Calculation Methods and Emission Factors in the Calculation,
Reporting and Publication System, published by the Ministry of the Environment.
Scope 2: Market-based / They are the factors published by each electric power company. As market-based has become mainstream in recent years and ismore accurate, we changed the disclosure to market-based approach from FY2024.
Location-based / Factors based on the “IEA Emission Factors” for each country according to the performance results for each fiscal year.
Scope 3: Calculation based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain” by the Ministry of theEnvironment and the Ministry of Economy, Trade and Industry
AHRESTY REPORT 2024

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Strategies andPerformance

Initiatives to Support Sustainable Growth

Scope3CO2 emissions by Scope (%)

FY2022 calculation results

Data Section

E n v i r o n me n t a l t a r g e t s a n d r e s u l t s i n F Y 2 0 2 3

Scope1

5%

Emissions(thousand t-CO2)

category
category1

Purchased goods and services386

category2

Capital goods

38category3

Fuel- and energy-related activities notincluded in Scope 1 or Scope 2

27

category4

Upstream transportation and distribution

24

category5

Waste generated in operations

0.1

category6

Business travel0.7

category7

Employee commuting

2

category8

Upstream leased assets-

category9

Downstream transportation and distribution-

category10

Processing of sold products

84

category11

Use of sold products

541

category12

End-of-life treatment of sold products

1

category13

Initiatives to Support
Sustainable Growth

Downstream leased assets

Scope3

Franchises-

category15

Investments

1

Scope 3 total

11%

To reduce the environmental impact of our manufacturing processes, we have set specific environmental targets for our production activities. In
fiscal 2023, we focused on CO2 emissions reduction activities and also continued to work to reduce waste and water consumption. The number ofbusiness sites that achieved their targets increased over the previous fiscal year. We will continue to advance these activities.

FY2022CO2 emissions(1,317 thousand t-CO2)

Environmental Medium-term target
category

84%

Other

16%

Evaluation*

FY2024 target

Eliminate non-conforming external leaks andcomplaints.

There was one non-conforming
external leak/complaint.
Corrective action was taken.

1

Eliminate non-conforming external leaks andcomplaints.

The target was achieved at eightof the 15 targeted businesssites.

3

Set an individual intensity target for eachbusiness site. Set the intensity target
compared to the year either FY2022 or
FY2023 with the best performance.

Target was achieved with a
28.9% reduction compared to
FY2013.

5

Wastematerials

Reduce the total
amount of wastematerials.

* Continue monitoring and improving the recycling
rate.

Reduce the total
amount of CO2

CO2 emissions intensity reduction rate:

35%

Scope 3

(1,109 thousand t-CO2)

49%

FY2023 results

Atmosphere,
water quality,
noise, etc.

category 1
Purchased goods
and services

FY2023 target

Prevent
environmental
problems, suchas atmosphericpollution, watercontamination andnoise pollution.

Scope 3CO2 emissions by category (%)-

category14

Scope2

Savingenergy andnaturalresources

Set an individual intensity target for eachbusiness site.

25% reduction from FY2013

emissions tocounter global
warming.

* Positioned as priority activities for pursuing ourenvironmental roadmap and policy

Reduce theconsumption ofwater used inprocesses.

category 11
Use of sold products

1,109
Other

Set an individual target for each business site.

Set a target for the number of times
each business site should organize social
contribution activities related to theenvironment. (Sites in Japan only)

Promote social
contribution

2* Positioned as priority activities for pursuing ourenvironmental roadmap and policy

Set an individual intensity target for eachbusiness site.
Set the intensity target compared to theyear either FY2022 or FY2023 with the best
performance.
Set a target for the number of times

The target was achieved at all
business sites.
(Excluding cancellations ofgovernment events due to rain)* Social contribution activities related to theenvironment refer to community clean-ups,
preservation of Satoyama, socio-ecologicalproduction landscapes, and other activities.

activities.

The target was achieved at fourof the 11 targeted businesssites.

CO2 emissions intensity reduction rate:
29% reduction from FY2013

5each business site should organize social
contribution activities related to theenvironment.
* Social contribution activities related to theenvironment refer to community clean-ups,
preservation of Satoyama, socio-ecologicalproduction landscapes, and other activities.

Participation in the GX League Basic Concept* Target achievement level: 1 (not achieved) < 5 (achieved)

Ahresty has endorsed the GX (Green Transformation) League Basic Concept announced by the Ministryof Economy, Trade and Industry in January 2023, and has participated in the GX League since its full-scale
operation start in April 2023. We have recognized "reducing the use of fossil fuels by improving energy
efficiency, etc." as one of the important issues to be addressed. Setting a CO2 emissions reduction target, weare promoting activities to achieve the target within the framework of the 10-year Business Plan and MediumTerm Management Plan. Our efforts to achieve the target by 2030 and to take on the challenge of achievingcarbon neutrality by 2050 are consistent with the purpose of the GX League Basic Concept. By contributing to
the realization of a decarbonized society with initiatives through the GX League and other frameworks, we aim
to improve our corporate value and realize a sustainable society.

GX League Dashboard (inside the GX League website) :https://dashboard.gx-league.go.jp/company/7011201010490/

Results of initiatives
Discharged materials
Discharged materials shows
all the materials discharged
from business offices, including all valuable materials
and waste, except steel andaluminum.

（t）

4,000

3,633

Water consumption

3,852

Water consumption shows
the amount of clean waterand groundwater consumed.
Reduction in the use of water
resources has been included
in our targets since fiscal
2011.

3,000
2,000
1,000
0

50

3,968

2021

2022

2023

(FY)

(Thousand m3)

800

711

746

807

600
400
200
0

2021

2022

2023

(FY)

AHRESTY REPORT 202451

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Introduction

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VisionStrategies andPerformance

Initiatives to Support Sustainable Growth

Production activities require energy and materials and involve emissions.

Material Flows (Sites in Japan)

Ahresty allocates costs to measures to reduce the environmental impact in its
manufacturing processes, including the introduction of equipment for reducing the impact.
*The figures of Material Flows are based on the sites in Japan.

INPUT (consumption)

Aluminum alloy
ingots

22,536 t

130,983 t

Fuels

Electricity

Gas

Clean water

Groundwater

Chemical materials(heavy oil,kerosene, etc.)

118,307

6,671

103,123㎥

134,231㎥(materials subject
to internal reporting)thousand ㎥

Mwh

12,511 kℓ

6,991 kg

Data Section

Acquisition of ISO14001:2015 certification
Ahresty has established an environmental management system based on IS014001:2015 to actively engage inenvironmental conservation activities.

EMS Registration
JUSE-EG-048

ISO14001:2015 certification acquired

Registered sites

Scope of registration

Head Office and Technical Center / Tokyo Head Office / Tokai Plant /(1) Manufacture of die castings, aluminum castings, and aluminum

Kumagaya Plant / Tokai Plant Hamamatsu / Tokai Plant Hamakita /Aluminum
resources

Initiatives to Support
Sustainable Growth

Tokai Plant Higashimikata / Tokai Plant Toyohashi / Ahresty Tochigi

alloy ingots(2) Design, development, and manufacture of special-purpose

Corporation / Ahresty Kumamoto Corporation / Ahresty Yamagata

machines and peripheral units for die castings

Corporation / Ahresty Die Mold Hamamatsu Corporation (Hamamatsu(3) Design, development, and manufacture of dies for die castings

Plant) / Ahresty Techno Service Corporation(4) Design, development, and manufacture of building materials,
such as raised floor panels

Cost calculation period: From April 1, 2023 to March 31, 2024

(Unit: thousand yen)

Environmental conservation costs
Categories

Costs

Initiative examples

Investments

Expenses

Pollution prevention costs

Installation, management and updating of wastewater treatment equipment, maintenance and management ofwaste gas treatment and dust collection equipment, and noise control measures

21,44059,883Global environmental conservation
costs

Energy (electricity and heavy oil) saving activities, installation of energy saving equipment, greening of the plant
environment, and monitoring of electric power consumption

108,01130,258Ahresty hosts various educational events and communication activities related to the environment to raise its employees’ environmental awareness.

2,808

447,8810279,870

Ahresty eco License

Activities to reduce waste and water consumption

132,259

538,022

Ahresty has established the Ahresty eco License, a unique internal
examination system, to improve its employees’ awareness of theenvironment. Over 80% of the employees have passed the examination to date, and they undertake their daily business activities with ahigher level of environmental awareness.

Ahresty has also positioned the reduction of waste and water
consumption as an important management item, and is continuing
reduction activities.

Recycling of water, treatment (separation and disposal) of waste, and use of recycled oil

Resource recycling costs

Sales of valuable materials (The amount of income is entered in the costs column.)
Subtotal

Upstream and downstream costs

Purchasing of green materials

042,098

Management activity costs

Company-wide or site Environmental Committee, internal auditing, measuring of the levels of smoke, dioxin,
exhaust gas and noise, internal education and training, and maintenance of ISO14001 certification

0

11,438

Research and development costs

Research and development of environmental impact reduction technology, etc.

00Social activities costs

Holding of plant tours, community clean-up activities, community communication activities, volunteer activities,
and NPO donations

0

Pollution load charges

0

2,911

0

56,781

132,259

314,933

Environmental damage
countermeasure costs

Subtotal

334

279,870

Income total
Total* Investments: Expenditure on items recorded as fixed assets, such as equipment * Expenses: Other expenditure

OUTPUT (production and emissions)

Raising environmental awareness[Reduction of waste materials Common measures]●Green purchasing
Ahresty conducts management activities under its Environmental
Policy, declaring that we are well aware that our corporate activities
are related to and influence the global environment and that we
actively contribute to society by striving toward environmental
conservation of the global and local communities. In purchasing,we actively promote “green purchasing,” in which materials tobe purchased are selected from an environmental perspectivein addition to the quality, price, and delivery time. We procure
goods and services from suppliers and contractors based on acomprehensive judgment, focusing on both their environmental
conservation activities and the environmental conservation status●●●

Considering ways to change waste into valuables by selecting
disposal companies and promoting thorough waste separation
Reduction of logistics-related waste by reusing and changing
materials
Examining and promoting reuse in various processes
Formulation of measures based on analysis of FY2023 results[Reduction of water consumption Common measures]●

Visualization of water consumption●

Water leakage checks and remediation at all utilitiesof the goods and services we purchase from them.

Product
production
volumeAluminum alloy ingots
Production volume

Die production volume(including components)[Kumagaya Plant][Die group]

73,498 t

22,538 t

83

CO2Discharged water

Waste

Waste

93,857 t-CO2

72,368㎥(recycling)(final disposal)

1,782 t77 t

* For the CO2 emission factor for electricity in Scope 2, information on market-based factors is used.

52

AHRESTY REPORT 2024

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VisionIntroduction

04

Strategies andPerformance

Initiatives to Support Sustainable Growth

Initiatives to Support
Sustainable Growth

Data Section

Round-table Discussion on Corporate Governance
Chairman and Director(Chair of Board of Directors Meeting)

Independent Director(Audit and Supervisory Committee member)

Chairman and Director,
Chairman and Executive Officer

Arata Takahashi

Director(Full-time Audit and Supervisory Committee member)

Independent Director(Audit and Supervisory Committee member)
Lawyer, Mori & Kikuchi Law Office

Akiyoshi Mori

Sustainable Growth Ahresty Aims at
by Pursuing the Ideal State of the Board of Directors
and Improving Its Effectiveness

Review one year after establishment of theasked, which helps me understand the

As a member of the Nomination andnew management system and expectations

situation and business environment at

Compensation Committee

of Independent Directors

Ahresty. I appreciate this very much, as I am

Sakai: In terms of Ahresty's sustainable

Mori: One year has passed since theresponsible for monitoring the situation andgrowth, sustainability and corporate value

inauguration of the new managementbusiness environment at Ahresty closely

improvement, the Group's growth engine

system, and President is more confident ineven though I am a new Independentis its overseas operations. The next-

expressing his opinions than when he first

Director.

generation Directors should be appointed

took office. This has led to lively exchanges

Sakai: We regularly hold meetings tobased on a variety of perspectivesof ideas with other Directors and Executive

exchange opinions between the Chairman

andOfficers. I realize that "position makes theand President and Independent Directors,

background, qualifications and information

person."and in the future, we hope to have suchsensitivity. We could also go further into the

Takahashi: The appointment of younger

opportunities with other Directors, andskill matrix to see what perspective is usedmembers who have been stationed abroad

even with candidates for next-generation

to certify skills. We should consider diversity

as Chief of the Manufacturing Command

Directors. This would lead to discussions

while making such mid-term improvements

and Chief of the Sales Command has

in greater depth, not just reporting atin the director candidate consideration

lowered the barriers to communication

Board of Directors Meetings. It would also

process. What I hope to see, and at thewith overseas offices. These organizations

be good for both parties to get to knowsame time consider a current challenge, ishave become active and speedy. The

the personalities and characteristics ofthat this will make the appointment process

appointment of the former Chief of the

Executive Officers.

more logical, objective, and transparent,

Sales Command as Chief of the Quality

Takahashi:

Assurance Command has strengthened theof Shareholders on June 28, 2024, anespecially for foreign personnel.
Terai: Regarding the appointment ofperspective of looking at quality from the

Independent Director with management

Directors, in this era, satisfying people

customers’ point of view. For plants in theexperience in the manufacturing industry

within the company is not enough; it isU.S., Mexico and India, where new productwas appointed. He was appointed as annecessary to convince shareholders andlaunches are particularly frequent, he has

Independent Director who is not a member

other external stakeholders that suchbeen taking drastic measures to establishof the Audit and Supervisory Committee.

appointments are appropriate. I thinkand continually improve a system to ensure

We would like him to provide guidance

that the use of the skill matrix mentioned

high-quality manufacturing.

and opinions from a different and broader

by Director Sakai is easy to realize and

The most pressing issue is the lack ofperspective on matters that Inside Directors

effective. Ensuring diversity at the stage ofstrength in the recovery of the Group's

have difficulties noticing and tend to havepooling department head candidates will

earnings, even as the automotive market

a narrow perspective on, and to be morealso help raise the awareness of younger

deeply involved in day-to-day management.

generations.

Independent Director(Audit and Supervisory Committee member)
Professor at the Faculty of Economics,
Keio University

Director(Full-time Audit andSupervisory Committee
member)is recovering from the COVID-19 pandemic

Kimiko Terai

Kazuyuki Sakai

need to decide on the direction of how to

and

the

semiconductor

shortage.

At

the

GeneralMeetingtransparent

measures,including⇒P61. Training of Directors

Furthermore, the Board of Directors willsolve the challenges in the China region.
Sakai: Ms. Terai and Mr. Matsuba havebeen appointed as Independent Directors,
and they have contributed greatly to thelively discussions at the Board of Directors
Meetings by asking questions and making
suggestions from new perspectives. I hopethat they will continue to provide us withguidance from an outside perspective andopinions based on their expertise.
Terai: Although I often ask basic questions
about technical aspects and industry
trends, everyone is very polite and sincere
in answering any questions that I have

54

AHRESTY REPORT 2024

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04
VisionIntroduction

04

Strategies andPerformance

Initiatives to Support Sustainable Growth

Initiatives to Support
Sustainable Growth

Data Section

Introduction of Independent Directors
at overseas subsidiaries locally hired

New Independent Director

employees, and the next step is to appoint a
foreign Director. To pave the way for making
this happen, we are holding Plant managers’

I will be committed to the growth of Ahresty utilizing
my management experience in the automotive industry.

meetings attended by senior managementfrom all global sites in English. Although theprogress of the meetings is still awkward,
we are making solid progress in this way tolocalize overseas plant managers.
Sakai: In the effectiveness evaluation, it isdifficult to determine the focus of scoring.
In the future, by considering receiving
external evaluations to be provided withmore objective and transparent evaluations
and opinions, we will be able to recognize
an external evaluation perspective, and if
we use this as a starting point to improve
the Board of Directors year by year, it cansteadily move closer to its ideal state.
⇒P59. Ensuring the effectiveness of the Boardof Directors

56

Evaluation of the effectiveness of the Board

guiding the company on the right course,of Directors and challenges

pointing out when it is off course andMessage from the Chair of Board of

Mori: The results of the evaluation of theadvising it to move in the right direction. We

Directors Meeting

effectiveness showed that the challenge ismust bring the Board of Directors closer

Takahashi: Directors are entrusted byto keep the Independent Directors up-to-to what it should be. We will improve onshareholders to manage the company.

date on internal and external environmental

areas that are lacking in the development

We must manage our business properlychanges in “Monitoring and revision ofprocess, including more discussions onin accordance with its essence. The fleet

management and business strategies.”

major management issues.

captain (management) leads the fleet of

In order for Independent Directors to

Terai: In the long run, I believe that diversity

vessels, Ahresty, and each vessel has its

continuously monitor the feasibility of eachon the Board of Directors is a challenge.

own captain, the department manager. The

strategy, I think that it is necessary that we

Ahresty’s

says:

Board of Directors is the head of the fleet who

Independent Directors be provided with input“Some students may assume that automust manage and supervise the fleet captainon the results of the analysis of changes inparts manufacturers are a man’s world ofand guide the fleet in the right direction.

the environment and have opportunities tocraftsmanship. However, that was the image

When the Board of Directors functions as

exchange more opinions on how Ahrestyof a generation ago.” Many people tend

it should, the fleet gains momentum. We

should respond to such changes in the future.

to assume that Ahresty is a male-oriented

would like to ask Independent Directors to

For example, as we recently discussed thecompany. The world is changing. I believe thatgive us constructive opinions and guidance

introduction of gigacasting, I believe that we

female and foreign human resources shouldwith the attitude that right is right andshould take up major business environment

be increased in the Board of Directors, which

wrong is wrong, and to work together withchanges or management issues as board

is the decision-making body.

recruitment

websiteus to guide the fleet. To this end, I believe

agenda items and discuss them over time.

Takahashi: I have seen an increase in thethat it is necessary to have Independent

Takahashi: The current Board of Directors

number of talented female human resources

Directors gain a deeper understanding of

has undergone a significant transformationin recent years from internal debriefing

our situation. We would like to provide themover the past five years; however, the resultssessions and other opportunities. We promotewith more input at the Board of Directorsof the most recent effectiveness evaluation

leadership training and other programs every

so that they can understand our current

showed that the Board of Directors is stillyear for both male and female employees.

situation and then participate in discussions

on its way to becoming what it should be.

Regarding overseas human resources, thetogether to determine what measures to

The Board of Directors is responsible forfirst step is to make department managers

take to address future issues.

Takamitsu
SakamakiAfter joining Nissan Diesel
Motor Co., Ltd. (Presently UD
Trucks Corporation), he worked
as General Manager of theInspection Department; General
Manager of the Plant Quality
Assurance Department; theGeneral Manager in chargeof Volvo Powertrain Japan
Production PT Technology;
Managing Executive Officer ofVolvo Powertrain Operations
Japan; Managing Executive
Officer of GTO Powertrain
Production Japan; and Senior
Managing Executive Officer
in charge of Production. After
serving as President and Senior
Managing Executive Officer
in charge of Production andAdvisor, he retired in March 2023.

My area of expertise
I have experience in all aspects of manufacturingin the automotive industry, including the
manufacturing floor, production engineering,inspection and quality assurance. While
experiencing firsthand the differences withoverseas organizations, I made improvementsfrom a global perspective from a management
standpoint. I was conscious of creating an openorganization within the company by thoroughly
adhering to the Three Reality Principle. I also used
external surveys and other external perspectives
to objectively understand the company’s own
position and determine the direction that thecompany should take. I focused on learning
about the company’s weaknesses from social
trends and promoting improvements. I hope toapply this experience at Ahresty.
Roles that can be fulfilled as an Independent
Director
Utilizing my management experience in theautomotive industry, I would like to offer
advice on whether quality and cost-conscious
manufacturing is being carried out, and whether
objective views and rational analysis are being
made. In addition, forward-looking projections
are essential when the direction of the company
is considered. To do this, it is first important tolisten carefully to stakeholders and understandthe gap between their thoughts and our own. I
would like to actively support management as a
Director while utilizing the objective viewpoint ofan Independent Director.
Expectations for Ahresty
A company must constantly grow. I believethat it is necessary to calmly analyze what thenext strengths are for Ahresty’s growth. I am
looking forward to working as a Director in the
expectation that Ahresty will build on its current
strengths while planting the seeds for its next
move.

Independent Director (Audit andSupervisory Committee member)

Independent Director (Audit andSupervisory Committee member)

Independent Director (Audit andSupervisory Committee member)

Independent Director (Audit andSupervisory Committee member)

Shuhei Shiozawa

Akiyoshi Mori

Kimiko Terai

Toshihiro Matsuba

Councilor and Professor of the Facultyof Economics, Tokyo International
University; Former President, Tokyo
International University; Professor
Emeritus, Keio University; Outside
Director, KYB Corporation

Lawyer, Mori & Kikuchi Law Office

Professor at the Faculty of
Economics, Keio University

Senior Executive Officer, Nippon
Light Metal Holdings Co., Ltd.

Reason for appointment: She wasdeemed to be qualified for the
position because she has deep
insight and broad experience asan economist, and is an academic
expert familiar with the financial
sector, including the social security
system.

Reason for appointment: He wasdeemed to be qualified for the
position because he has extensive
work experience and insight that
he has cultivated as a director andexecutive officer of a non-ferrous
metal company.

Reason for appointment: He was deemed
to be qualified for the position because heis a professor of economics specializingin theoretical economics and financial
theory, with extensive experience andinsight as a university professor of
economics and as a president.

Reason for appointment: He wasdeemed to be qualified for the
position because he has extensive
experience as a lawyer over many
years and specialized knowledge ofcorporate legal affairs.

AHRESTY REPORT 202457

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Introduction

04

VisionStrategies andPerformance

Initiatives to Support Sustainable Growth

Initiatives to Support
Sustainable Growth

Data Section

Governance: Improving Corporate GovernanceCorporate governance system chart

Corporate Governance

Ensuring the effectiveness of theBoard of Directors

General Meeting of Shareholders

Ahresty believes that the basic policies of corporate governanceshould be to clarify its management responsibilities andaccountability to all its shareholders and other stakeholders andNomination andCompensation Committee
The majority of members are
Independent Directors.

Consulting

to establish a management system capable of making decisions
promptly with a high level of transparency. Ahresty also focuses

supervising the business activities of the entire Group. Since it
became a company with an audit and supervisory committee in 2015,
governance, including setting up the Nomination and Compensation
Committee in 2019 to discuss the appointment/dismissal of directors,

Director in 2021.

Corporate governance system

Reporting andproposing(excluding directors who are members of the
Audit and Supervisory Committee)

Directors who are members of the
Audit and Supervisory Committee

Accounting
Auditor

Representative Director
Making decisions on andexecuting specific matters related tointernal control system establishment

Reporting andproposing

Instructions
Internal audit

5(including 1 Independent Director)

Divisions

LawyerAdvice andguidance

Stewardship Codeformulated.

1(1) Management and business strategies(2) Goals and vision(3) Corporate culture

Evaluation process2

Analysis, evaluation and disclosure of effectiveness evaluation
results

Ahresty evaluates the effectiveness of all Directors, including

3

Formulation, administration and supervision of succession planning(7)

Dialog with stakeholders

based on issues requested by external stakeholders, opinions from1

Incorporation of dialog with shareholders

Independent Directors and other factors.

2

Response to negative votes at General Meeting of Shareholders

3Supervision and involvement of disclosed information

4

Stakeholder interests

those who are members of the Audit and Supervisory Committee,
in the form of a questionnaire. Evaluation items are reviewed

Summary of evaluation items
The items of the effectiveness evaluation consist of the following

Addressing issues identified in the evaluation results
Evaluation items for the Board of Directors

The following corrective measures have been planned andimplemented to address issues identified in the effectivenessevaluation for the fiscal year ending March 31, 2023.

2

Frequency and time allocation

diversity of Directors and expansion of the skill matrix of the Board of3

Appropriate agenda items

Directors. At the General Meeting of Shareholders held in June 2024,

2021

4

Lively and effective operations

Replaced the chairperson of theNomination and Compensation Committee with an Independent Director.

5

Preliminary preparation and review time

6

Education of Directors(2)Management and business strategies

1

Provision of information necessary for deliberation

2019

2

Deliberation timewithin the company to take prescribed training courses.

Nomination and Compensation
Committee started working.

3

Monitoring and revision of management and business strategies(2) Strengthening provision of information on business environment,(3)

Risk and crisis management

1

Timely reporting and handling of risks(4)

Corporate ethics

1

Monitoring and supervision of conduct code and ethics code2

Confirmation of reporting system for corporate ethics violations(5)

Performance monitoring

1

Adequacy of performance monitoring indicators

Restricted stock compensation plan introduced.
Evaluation of the effectiveness of the Board of
Directors (questionnaire survey) introduced.

2015

2016

2014

Improvements to governance inline with Corporate Governance Code.

2015
Became a company with an Audit andSupervisory Committee.

58

of Directors in order to verify whether the Board of Directors is

Member composition based on diversity, knowledge, abilities andexperience

2018
Corporate Governance Codeformulated.

Adequacy of annual goals

12* With a resolution at the Board of Directors meeting held on March 22, 2021, an
Independent Director was appointed as the chairperson of the committee.

Management evaluation and compensation

Composition and operation of the Board of Directors(including 4 Independent Directors)

5

(6)

(1)

Collaboration

5

Nomination and Compensation Committee (7 members)

Independent Directorsof corporate value, Ahresty evaluates the effectiveness of the Board

Advice andguidance

ReportingHistory of corporate governance reforms
Inside Directors

Validity of performance monitoring indicators

major items.

Business Divisions
Group
Companies

3

appropriately fulfilling the functions expected of it and enhance it.

Executive Committee
Executive Officers

Board of Directors (10 directors)
Directors

ReportingAccess to external company evaluations

Toward sustainable growth and medium- to long-term improvement

Reporting

Audit & Supervisory
Committee
Directors
Independent Directors

Instructions

Internal Audit Department

replacing the chairperson of the Committee with an Independent

Evaluation of the effectiveness of the Board of Directors

Global Compliance Committee

Ahresty has implemented various initiatives to enhance its corporate

their remuneration, and requirements for director candidates, andBoard of Directors

Appointment anddismissal
Appointment anddismissal

Collaboration
Auditing andDirectors
supervising
Independent Directors
Accounting
auditing
Making decisions on basic
matters related to internal
Auditing andcontrol system development
supervising
ReportingAppointment, dismissal,
and supervision

Reportingsystems, and establishing a management system capable ofCollaboration

its efforts on improving its internal control and risk management

ReportingAppointment anddismissal

2(1) Composition and operation of the Board of Directors
We deliberated on new Director candidates with an eye toward

one Independent Director (Director who is not a member of the Audit
and Supervisory Committee) with management experience wasappointed, as requested by institutional investors. Furthermore, wehave made arrangements for new Directors to promptly participate
in the management of the company by developing an orientation
program for candidates for Independent Directors and by making
it mandatory for candidates for Directors who are promoted frometc.
As a means of strengthening the system for the Independent
Directors to regularly monitor whether management and businessstrategies are responding to changes in the business environment
surrounding Ahresty, we have created opportunities to regularly
provide them with information from each Command.
(3) Strengthening incorporation of external opinions
As a forum for feeding back opinions of shareholders, institutional
investors and other stakeholders to management, we have increased
opportunities for regular reporting to and discussion with them.

AHRESTY REPORT 2024

59

04
VisionIntroduction

04

Future effectiveness evaluation
For the purpose of ensuring objectivity in the evaluation of the

Ahresty has introduced a skill matrix to ensure that the knowledge,

evaluations by a third-party organization.

experience, and abilities of Directors are appropriate. In 2023, we

Based on the results of the effectiveness evaluation, Ahresty

updated the skill matrix so that the skill requirements would match

will continue striving to improve the effectiveness of the Board of

more closely the needs of the times.

Directors.

Executive remunerationcompensation plan

under

the

restricted

Required knowledge,
experience, and abilities

stock

In fiscal 2018, Ahresty introduced a restricted stock compensation
plan in the remuneration system for executives to further promoteshared value between executives and stakeholders, to establish
greater linkage with medium- to long-term performance goals, andto provide executives with an incentive to continuously improve thecorporate value of Ahresty.

Expected image
Responding to rapid electrification

Manufacturing / Quality /Technology development

Contributing to world-classmanufacturing

Sales / Marketing

Responding to overseas market
expansion

Finance / Accounting / Capital
policyStrengthening the Group’s profitability
and financial base

Legal affairs / Risk
management

Advancing management for
appropriate risk management

Global(international experience)

Carrying out management
corresponding to the expansion ofoverseas business

Human resources / ESG

Responding to sustainability
management

Skill matrix of Directors
Current position

Approach to training director candidates
Name

Fulltime

Sales /
Marketing

Chairman andExecutive Officer●●

Chief Executive Officer
In charge of
Manufacturing Command●

Finance /Legal affairs
GlobalHuman
Accounting // Risk(international resources /Capital policy management experience)
ESG

Nomination and Compensation Committee
Board of Directors General Meeting

Directors

Arata Takahashi

Shinichi Takahashi○○

Naoyuki Kaneta○

In charge of Sales Command
Chief of the Quality
Assurance Command

Director

Hideki Nariya○

Chief of the General
Administrative
CommandDirector

Takamitsu Sakamaki

Director who is amember of the Audit andSupervisory Committee

Kazuyuki Sakai

Director who is amember of the Audit andSupervisory Committee

Shuhei Shiozawa

Doctor of Economics

Director who is amember of the Audit andSupervisory Committee

Akiyoshi Mori

LawyerDirector who is amember of the Audit andSupervisory Committee

Kimiko Terai

Doctor of Economics

Director who is amember of the Audit andSupervisory Committee

Toshihiro Matsuba

Business Executive

Business Executive

○

●

●

●

For candidate selection:
A list is created by the President.
Checked by the Nomination andCompensation Committee

Candidate
pool

○

●

●

●

●

●
●

●

●

●

○

●

●

●

●

○

●

●

●

○

●

●
●

●
●
●

●: Having direct knowledge, experience, abilities, etc. ○: Having relevant knowledge, experience, abilities, etc.

●

Directortraining plan

Executive Officers /Chiefs /Department managers

A list is created by the current
department managers.
Discussed and selected by the
Next-Generation Human Resources
Development Committee●●

Management training
New director training

Assuming three tofive years ahead

Strategic assignments (Tough assignments)
Explanations and Q&As to management andoutsiders Acquisition of management
knowledge (training, etc.)

For department managers: Top manager training
Next-Generation
Human Resources For department manager candidates:
Development
Policy leaders (assignments)
Committee
MONOZUKURI JUKU (manufacturing cram school)for next-generation plant manager education▲

Representative Director●▲

Manufacturing/ Quality /Technology
development

Responsibility /Expertise▲

President andRepresentative Director

Data Section

down, their future potential is assessed and whether they can
perform as well in their next position as they do now is determined.
Directors promoted from within the company are required to undergo
governance training at the time of their appointment to improve theirunderstanding of their responsibilities as Directors, as well as othernecessary knowledge.
In the case of appointment of Independent Directors, objective skills
are ascertained through their backgrounds and qualifications, andtheir suitability and character as Directors are determined throughactual communication. In addition, we have established a system toenable new Independent Directors to participate in discussions at
Board of Directors meetings and contribute to management as soon
as possible after assuming office, including an orientation programin which they are required to tour our main plants and attend
lectures to understand the outline and characteristics of our Group’ sbusiness, management conditions, organization, major management
issues and strategies and other basic information before assuming
their positions as Directors.

In human resources development, Ahresty prepares and operates ahuman resources roadmap that defines requirements, candidates,
development goals and plans for the necessary human resourcesat each level in light of the business environment expected overthe medium to long term. In particular, regarding the selection andtraining of candidates for Department Manager or higher positions,
we have adopted a system in which we cultivate their skills as apotential future Director step by step. After stepping them up to theposition of a Department Manager, Chief, and Executive Officer,
we implement a strategic assignment approach as a measure totrain Directors. This is a hands-on human resources development
measure that provides opportunities for Director candidates to gain
actual experience by assigning them important posts and projects
according to their requirements. Once a year, the Nomination andCompensation Committee examines the skill matrix of candidates
created based on the evaluation results of strategic assignments
to check if a review is necessary. In running the PDCA cycle forthe candidate training plan, the number of candidates is narrowed▲

Chairman and Director

Initiatives to Support
Sustainable Growth

Tr a i n i n g o f D i r e c t o r s

Updating the skill matrix of directors

effectiveness of the Board of Directors, we will continue considering

60

Strategies andPerformance

Initiatives to Support Sustainable Growth

Department
manager candidates

Director training process• Clarification of the roles and functions
required of the future Board of Directors• Clarification of the required skills andabilities in terms of both the current
composition of the Board of Directors
and the future vision
Checked by the Nomination andCompensation Committee once a year

• Evaluation of training results• Re-evaluation and review ofa training plan

Phase 1Clarification of important posts andrequirements for realizing the visionand management strategies

P

Phase 2
Understanding and evaluation ofhuman resources /Selection and securing of candidates

Personnel
affairs ofmanagement

C/A
Phase 4Re-evaluation and review of measuresrelated to the evaluation of training results

D

Phase 3
Formulation and implementation ofa human resources development plan /Development of and support
for training environments• Understanding of the skills and abilities
of internal human resources• Formulation of human resource selection
criteria and procedures• Formulation of individual training plans in linewith the objectives• Examination of work experience and posts
necessary for human resources development /Operation of the necessary job duties and posts• Development and implementation of effective
training menus

AHRESTY REPORT 202461

04
Introduction

04

Dia lo g u e with Shareholders

Management of Insider Information

Ahresty believes that it is important to have constructive dialogue,
and establish and maintain the sound relationship with shareholders
and investors (hereinafter referred to as “Shareholder etc.”) for
enhancing sustained growth and medium to long-term corporate
value. To cultivate a better understanding, the Company shallconduct the timely and appropriate disclosure of financial and nonfinancial information in accordance with laws and regulations, andprovide information other than the disclosure based on laws andregulations as well. Furthermore, regarding opinions obtained fromthe dialogue with Shareholders etc., they shall be fed back to the
management, and make effective use of improvement of corporate
value.

The Company, as a policy in regard to information disclosure of theCompany and the Ahresty Group (hereinafter referred to as “theCompany Group”) to capital market participants like Shareholderetc., shall establish Disclosure Rule separately, and endeavor to thecorrect, timely, and fair disclosure of corporate information.
The Company shall restrict the dialogue with shareholders for 3
weeks prior to the announcement of financial report to prevent theleak of the information and secure the fairness.
The Company shall establish “Rule for Prevention of Insider Trading”
separately, manage the material information of the Company Group,and take measures for pre-prevention of insider trading through inhouse education.
Regarding the stance to the Company’s information disclosure,“Disclosure Policy” shall be released in the Company’s home page.

System to conduct Constructive Dialogue

Grasp the composition of shareholders

The Company President & CEO shall control the whole dialogue with
Shareholder etc., and strive to realize constructive dialogue.
Regarding the actual dialogue with Shareholder etc., Management
Planning Dept. shall examine the response with the Company
President & CEO and Chief Administrative Officer, and takeappropriate action.
Relative divisions such as Accounting Dept. and Human Resource
Dept. shall conduct duties including the creation of disclosurematerials and the share of necessary information.

Enhance a dialogue with Shareholder etc.
As means of dialogue other than individual meetings with
Shareholder etc., the Company shall implement the explanatory
session of financial results, briefing of management directives
and disclosure of information by website etc., and conduct theactivities to enhance the understanding in regard to the Company’s
management directives / strategies and industry environment.

Internal Feedback
Management Planning Dept. shall share and utilize information such
opinions and questions from Shareholders etc. by feeding back to
Directors, Executive members, and relative divisions timely andappropriately, and lead to increase of corporate value.

Org a n izin g a plant tour

The Company shall conduct the investigation of beneficial
shareholders regularly to endeavor to grasp the compositionof shareholders, and enhance the constructive dialogue withshareholders.

Formulation and Announcement of Management Strategies
and Management Plan
Upon formulation of management strategies and management plan,
the Company shall establish the goal of future benefits and capitalefficiency, strategies and measures for distribution of businessresources, and strive to explain clearly.

R i s k M a n a g e me n t
The basis of Ahresty’s risk management is to avoid risks that may
seriously affect its business management and address any risks
that materialize, promptly and properly in a manner that will notundermine the safety, health or interests of any stakeholder so as toachieve a quick recovery while working to protect its management
resources and minimize any damage, thereby ensuring continuityof its business management. Based on its Risk Management
Regulations established for risks associated with business activities,
Ahresty identifies, analyzes and evaluates risks regularly in light ofthe environment and trends both inside and outside the company,
holds discussions on priority activities and their directions, andchecks improvements to risk management systems and frameworks
for the entire Group.

Identifying and responding to risks
Ahresty selected 16 items as its priority risk management items
for fiscal 2023, including “stricter environmental regulations” and“strengthening of the information security system,” and appointed
departments to be responsible for each risk item. By clarifying thedegree of impact and causes of each risk item if it materializes,
Ahresty has been working to enhance prevention, initial response
and measures for recovery.

FY2023 risk management items and initiatives to enhance
responses (excerpts)

Status of Dialogue with Shareholders and Investors
Ahresty actively engages in dialogue with shareholders andinstitutional investors with the aim of enhancing its corporate value
and provides internal feedback on the content of such dialogue andadvice received in a timely manner through the Board of Directors’
meetings and other means.
FY 2023 Status of Dialogue with Shareholders and Investors⇒https://www.ahresty.co.jp/en/uploads/E20240606_3.pdf

Risk management item

Measures and efforts to ensure business continuity

Disasters(Typhoon, heavyrain)

Formulated guidelines for responses totyphoons and heavy rain, and implemented
measures against disasters, such as theintroduction of emergency communication
devices.

Stricterenvironmental
regulations

In terms of climate change risk, we view
the stricter environmental regulations as acompany-wide risk, and we are strengthening
our systems to collect timely and appropriate
information and respond to regulatory
requirements in a timely manner throughout theGroup, including overseas locations.

Regional conflict

We have collected signs of risks that could
affect the Group on a global basis due
to regional conflicts. We are working tostrengthen our system so that if any risks thathave a major impact on the Group’s productionand earnings materialize, relevant departments
and sites will work together to promptly
consider countermeasures.

In April 2024, we held a plant tour for institutional investors and analysts.
The tour was designed to promote understanding of Ahresty by showing
the production system for casting and machining of die-cast products, thestatus of response to parts for BEVs and other electric vehicles, automation,
labor saving and improvement of the work environment at its main plant, andproduction technology and other initiatives at its Technical Center.

62

VisionInitiatives to Support Sustainable Growth

Strategies andPerformance

Initiatives to Support
Sustainable Growth

Data Section

C o mp l i a n c eAhresty considers the trust of its stakeholders to be the starting
point in conducting all of its business activities, and maintains amanagement philosophy of making constant efforts to raise theGroup’s corporate value. We have established the “Compliance
Principles” and the “Ahresty Group’s Code of Conduct” ascompliance standards to be observed by all employees, including
both executives and regular employees. By continuously
disseminating them in a timely and appropriate manner, we areworking to prevent compliance violations. We will conduct fairand honest business activities while not only observing laws,
regulations, and internal rules but also complying with thecorporate ethics demanded by society.

Strengthening of the information
security system
The Ahresty Group has established the “Information Security
Policy” to protect all information entrusted by our stakeholders andour information assets from any threats, to live up to the trust thatstakeholders have put in us, and to make our business stable andsustainable. We have also created a structure that enables us topromote, maintain and continuously improve information security.
Specifically, as a management system to control information security
within the Group, we have appointed a company-wide information
management officer and other persons responsible and established
a company-wide information management department and an
information security committee. In addition, we have establishedinformation management officers and other persons responsible toimplement information management, including information security,
at each organizational unit within the Group, and are strengthening
mainly the following systems to prevent information leakage due tointernal fraud, external cyber-attacks, etc. and to improve business
continuity.
(1) Establish Group’s internal rules that conform to laws andregulations related to information security and ensure compliancewith such rules.
(2) Provide continued education and training to raise awarenessof the importance of information security and to familiarize
employees with the Group’s internal rules.
(3) Take appropriate measures to deal with any violations of laws
and regulations and incidents related to information security, as
well as measures to prevent recurrence of such violations andincidents.

AHRESTY REPORT 2024

63

05
VisionIntroduction

05

Strategies andPerformance

Data Section

Initiatives to Support
Sustainable Growth

Data Section

Key Financial, Human Resources and Environmental Data for the
10-year Period(Unit: million yen)
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

138,727

144,451

136,657

145,167

145,428

120,577

92,973116,313140,938

158,254

2,521

5,385

6,912

4,718

3,228

764

△2,554△2,422

23

2,291

1.8

3.7

5.1

3.3

2.2

0.6

△2.7

△2.1

0.0

1.4

1,622

4,077

6,256

4,436

2,905

406

△2,094△2,03294

2,574

Net income attributable toowners of parent

332

1,963

4,620

3,450

421

△685

△2,843△5,189△84△7,699Comprehensive income

7,002△1,310

3,171

3,971

△3,574△3,175△1,788△2,267

3,288△4,106

Operating income
Operating income margin(%)
Recurring income

Financial condition
Total assets

147,577

139,496

135,044

137,751

128,222

123,054

132,223

131,302

137,069

131,763

Net assets

60,84959,262

62,05365,43961,29357,36455,63153,566

56,64951,617

Interest-bearing debts

46,83842,44832,80431,55230,737

33,69545,92042,91643,51940,523Per share information

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

Net sales

63,226

63,58363,00866,81867,98859,50045,58451,74659,01962,007

Segment income

3,230

2,769

2,519

1,458

871

△444

△2,491△1,372250

595

Segment assets

46,86948,372

51,61454,52554,83453,77355,94051,71750,832

54,597

Net sales

40,65445,76040,85439,93739,801

30,633

21,62828,111

36,99547,967

Segment income△1,295

1,521

2,163

291

123

635

94

△1,096

△676

1,242

Segment assets

47,27945,272

41,40938,173

32,95429,47829,78731,064

31,59732,38527,584

27,594

26,12830,422

29,971

23,846

19,931

26,48833,67635,098Segment income

662

573

1,758

2,378

1,841

3

△598

△547

8

△650

Segment assets

46,85940,37836,99539,27137,94338,29137,80742,12842,16338,917

5,015

4,921

4,402

4,597

4,679

3,993

3,483

6,463

7,975

7,057

Segment income

5

338

274

213

112

169

33

265

274

141

Segment assets

3,030

2,527

2,773

3,344

3,019

2,388

2,758

4,350

4,085

4,103

2,245

2,590

2,263

3,371

2,976

2,603

2,345

3,503

3,271

6,123

Segment income

83

212

155

392

314

277

320

312

285

891

Segment assets

1,397

1,797

1,213

1,997

2,194

1,282

1,018

2,573

3,271

2,639

Japan

70,61870,72369,28874,27875,196

65,69951,122

61,42370,001

74,841

North America

40,73145,82740,90940,07739,91630,71921,71028,19537,09548,062

Asia

27,192

27,66526,24830,52030,05823,89019,95526,54733,70935,214

185

235

212

290

257

268

185

146

132

135

49.1

51.0

49.3

48.8

48.3

45.6

45.0

47.2

50.3

52.7

7,373

7,055

7,215

7,268

7,337

6,780

6,124

5,940

5,499

5,590

Japan segment die casting

North America segment die casting

Asia segment die casting
Net sales

Net assets per share (yen)2,351.99

2,287.83

2,394.58

2,522.55

2,357.98

2,244.49

2,161.08

2,068.69

2,180.28

2,042.86

Aluminum

Net income per share (yen)

12.86

75.97

178.77133.4016.26△26.77△111.06△201.23△3.26△300.55

Net sales

Dividends per share (yen)

12

14

20

26

22

8

5

10

10

15

Financial index

Proprietary products

Equity ratio (%)

41.2

42.4

45.8

47.4

47.7

46.5

41.9

40.7

41.2

39.1

Return on equity (%)

0.6

3.3

7.6

5.4

0.7

△1.2

△5.0

△9.5

△0.1

△14.3

Price-earnings ratio (%)*1

59.8

9.6

6.4

7.1

38.9

-

-

-

-

-

Return on assets (%)

0.2

1.4

3.4

2.5

0.3

△0.5

△2.2

△3.9

△0.1

△5.7

D/E ratio

0.8

0.7

0.5

0.5

0.5

0.6

0.8

0.8

0.8

0.8

Dividend payout ratio(consolidated) (%)*1

93.3

18.4

11.2

19.5

135.3

-

-

-

-

-

Cash flows from operating
activities

12,502

18,062

21,77916,90816,01816,474

7,942

8,259

10,72718,319Cash flows from investing
activities△15,211△14,648△12,932△16,795△14,150△17,691△11,570△6,083△6,331△13,939

Cash flows from financing
activities△538△4,372△9,004△1,391△1,392

2,162

11,940△5,101△1,534△5,951△2,709

3,414

8,847

113

1,868

△1,217△3,628

2,176

4,396

4,379

Human resources and environment data

5,789

4,505

4,100

2,630

2,901

3,732

12,2499,356

12,991

11,594

Consolidated number of
employees (persons)

Cash flows

Free cash flow
Year-end balance of cash
and cash equivalents

Net sales

Net sales by region

Other regions
Percentage of overseas sales (%)*3

Capital expenditures and depreciation

Percentage of female employees
(%)

-

-

-

-

-

-

-

-

17.4

17.4

Capital expenditures*2

9,841

9,064

7,046

10,962

10,595

13,821

7,497

6,044

6,899

10,908Percentage of female managers
(%)

-

-

-

-

-

-

-

-

10.3

9.5

Depreciation

12,956

14,877

13,781

14,89916,011

14,32912,901

11,91912,906

12,797

Scope 1,2 CO2 emissions(thousand t-CO2)*5

291

284

263

264

256

223

195

208

207

213

*1 Since the price-earnings ratio and dividend payout ratio (consolidated) for fiscal year ended March 31, 2020, fiscal year ended March 31, 2021, fiscal year ended March 31, 2022, fiscal year ended March 31, 2023,
and fiscal year ended March 31, 2024 are not shown due to net loss attributable to owners of parent.
*2 The capital expenditures exclude those for “dies” included in tools, furniture and fixtures.

64

FY2015

Segment information

Operating results
Net sales

FY2014*3 The percentage of overseas sales is categorized by country or region based on the location of each customer.
*4 Figures are after the application of the "Accounting Standard for Revenue Recognition" from fiscal year ended March 31, 2022.
*5 Figures from fiscal year ended March 31, 2015 to fiscal year ended March 31, 2018 do not include those from company cars, cafeterias, and other items with minor impact. Refer to the "Metrics and Targets" in"Disclosure Based on TCFD Recommendations" from page 46 for reference guidelines for calculations.

AHRESTY REPORT 2024

65

05
VisionIntroduction

05

Data Section

Strategies andPerformance

Initiatives to Support
Sustainable Growth

Data Section

Corporate Information

Corporate Profile
Company name

Ahresty Corporation

Capital6,964 Million

FoundedJune 22, 1938

Established

November 2, 1943

Employees

Consolidated: 5,590
Single Entity : 987

Directors
Chairman and Director,
Chairman and Executive Officer

Arata Takahashi

Executive Officers
Director(Audit & Supervisory Committee member)

Kazuyuki Sakai

Executive Officer

Koji Arai
Executive Officer

Representative Director,
President and CEO

Independent Director(Audit & Supervisory Committee member)

Representative Director,
Senior Managing Executive Officer

Independent Director(Audit and Supervisory Committee member)

Akiyoshi Mori

Atsushi Shimizu

Director,
Managing Executive Officer

Independent Director(Audit and Supervisory Committee member)

Executive Officer

Independent Director

Independent Director(Audit and Supervisory Committee member)

Shinichi Takahashi
Naoyuki Kaneta
Hideki Nariya

Takamitsu Sakamaki

Shuhei Shiozawa

Kimiko Terai

Yasutaka Oshima

Authorized shares: 60,000,000 shares
Issued shares: 25,546,717 shares
Shareholders: 9,367

Manufacturing of Die Castings, Aluminum Alloy Ingots, Free Access Floor Panels and Peripheral Equipment for Die Casting
Machine.

Executive Officer

Kenichiro Mine
Executive Officer

Hirofumi Kondo

Toshihiro Matsuba

Stock Information
Number of shares and shareholders

Business Content

Distribution by type of shareholder (As of March 31, 2024)
Individuals and others 53.73% Foreign corporations, etc. 15% Other institutions 12.87%

Main Customers
Aichi Machine Industry Co.,
Ltd.

Co., Ltd.

MAHLE Engine Components
Japan Corporation

Nissan Shatai Co., Ltd.

Takenaka Corporation

Ntek Inc.

TDK Corporation

Aisin Corporation

Honda Motor Co., Ltd.

Meidensha Corporation

Obayashi Corporation

Tokyo Roki Co., Ltd.

BorgWarner Inc.

Honda Trading

Mitsubishi Electric Mobility

Sanki Engineering Co., Ltd.

Toyota Industries

Corporation

Contemporary Amperex

Corporation

Technology Co., Ltd.

Isuzu Motors Ltd.

Mitsubishi Motors Corporation

Daihatsu Motor Co., Ltd.

Jatco Ltd.

NEC Facilities, Ltd.

Denso Corporation

Kajima Corporation

Nikkei Sangyo Co., Ltd.

Fuji Machinery Co., Ltd.

Kawasaki Motors, Ltd.

Nippon Light Metal Company,

Guangzhou QishengPowertrain Co., Ltd.

Financial institutions 14.2% Financial instruments firms 4.2%

Hitachi Plant Services

Komatsu Ltd.

Ltd.

Kubota Corporation

Nippon Shooter Ltd.

Hino Motors, Ltd.

MAGNA Powertrain deNissan Kohki Co., Ltd.

Hitachi Astemo, Ltd.

Mexico, S.A. de C.V.

Nissan Motor Co., Ltd.

Sankosha Corporation

Corporation

Shanghai Volkswagen Co., Ltd.

Toyota Motor Corporation

Shimizu Corporation

Univance Corporation

Subaru Corporation

Yamada Manufacturing Co.,

Sumitomo Riko Co., Ltd.
Suzuki Motor Corporation
Taikisha Ltd.
Taisei Corporation

Ltd.
Yamaha Motor Co., Ltd.
Yamazen Corporation
Yanmar Global Expert Co.,Ltd.

Sites Information
Head Office and Technical Center
Product Design, Research andDevelopment
ISO 14001 / ISO 9001 (Die Casting
Products·Raised Floor)
Tokyo Head Office
ISO 14001 / ISO 9001 (Die Casting
Products·Raised Floor)
Tokai Plant
Die Casting, Machining, Part Assembling
ISO 14001 / IATF 16949
Kumagaya Plant
Aluminum Alloy Ingots Production
ISO 14001 / ISO 9001

66

Ahresty Die Mold Hamamatsu Corporation
Die Casting Dies
ISO 14001 / ISO 9001
Ahresty Techno Service Corporation
Manufacture and Sales of Peripheral Equipment for
Die Cast Production
ISO 14001 / ISO 9001
Ahresty Inclusive Service Corporation
Personnel and labor related office work

Hefei Ahresty Casting Co., Ltd.
Die Casting, Machining, Part Assembling, Raised
Floor Production
ISO 14001 / ISO 45001 / IATF 16949
Ahresty Precision Die Mold (Guangzhou) Co., Ltd.
Die Casting Dies ISO 9001
Guangzhou Ahresty Casting Co., Ltd.
Die Casting, Machining, Part Assembling
ISO 14001 / ISO 45001 / IATF 16949
Thai Ahresty Die Co.,Ltd.
Die Casting Dies ISO 9001
Thai Ahresty Engineering Co., Ltd.
Design of Die Castings, Die Casting Dies and 3D
Modeling

Ahresty Tochigi Corporation
Die Casting, Machining, Part Assembling
ISO 14001 / IATF 16949

Ahresty India Private Limited
Die Casting, Machining, Part Assembling
ISO 14001 / ISO 45001 / IATF 16949

Ahresty Kumamoto Corporation
Die Casting, Machining, Part Assembling
ISO 14001 / IATF 16949

Ahresty Wilmington Corporation
Die Casting, Machining, Part Assembling
ISO 14001 / IATF 16949

Ahresty Yamagata Corporation
Die Casting, Machining, Part Assembling
ISO 14001 / IATF 16949

Ahresty Mexicana,S.A. de C.V.
Die Casting, Machining, Part Assembling, Die
Casting Dies
ISO 14001 / ISO 45001 / IATF 16949
AHRESTY REPORT 2024

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T h e Ta g li n e “ C a s ti n g O u r E y e s o n t h e
Future” embodies our business attitude ofalways moving forward by taking the initiative
in Research and Development, Service andTechnology and by keeping all of our attention
here at Ahresty focused on our customers, theglobal environment and the future of Ahresty
itself, to realize the corporate philosophy
represented in our name.
The word “Casting” in the Tag line combines
the meaning of “to throw one’s gaze” with its
other meaning of “to shape molten metal in amold” which is our main line of business, diecasting.

Ahresty Corporation
Tokyo Head OfficeNakanosakaue Sunbright Twin 5F, 2-46-1 Honcho,
Nakano-ku, Tokyo, 164-0012, Japan
TEL. +81-3-6369-8660 FAX. +81-3-5358-5331
Issue: September, 2024