VISION 30
Rolling Plan FY2022 to FY2024

May 12, 2022
OKADA AIYON CORPORATION©2022 Okada Aiyon CorporationVISION 30~Go To The Next Stage~

Table ofContents

Consolidated Financial Results for FY3/22

P1

Sales of Each Segment in FY3/22

P2

Performance Trends

P3~4

3-Year Plan (FY2022 to FY2024)

P5~6

Capital Expenditures: Results and Plans

P7

Cash Flow: Results and Plans

P8

Productivity of Invested Capital: Results and Plans

P9

Business Portfolio

P10

Initiatives for Sustainability

P11~12

Reference 1: Outline of Long term Vision "VISION 30"

P13

Reference 2: Assumptions for Formulating Results and Plans of Productivity of Invested Capital

P14

The forward looking statements contained in this report are based on management's assumptions and beliefs in light ofthe material currently available to the Company and other reasonable assumptions, and involve risks and uncertainties.
Therefore, we do not promise or guarantee the realization of the future plans and measures presented.

(Inquiries) Corporate Planning Office, OKADA AIYON CORPORATIONTEL: 06-6576-1271

FAX: 06-6576-1270

URL: http://www.aiyon.co.jp/©2022 Okada Aiyon Corporation

１

Consolidated Financial Results for FY3/22

In response to the recovery in domestic and overseas demand, our company achieved record-high sales and profit. Sales reached 20 billion yen.
Both sales and profit exceeded the initial forecast (announced on May 13, 2021). In comparison with the forecast announced on February 10,2022, sales exceeded the forecast, but profit fell short due to the impact of price hikes in raw materials and ocean freight rates in the second halfof the fiscal year.

(Million yen)

Results

Year-on-Year

Rate ofchange(%)

Comparison withthe forecastannounced on
May 13, 2021

Rate ofachievement(%)

Comparison withthe forecast
announced on
February 10, 2022

Rate ofachievement(%)

Net sales

20,306+2,715

15.4+1,806

109.8＋306

101.5

Operating income

1,771+394

28.7+171

110.7

-81

95.7

Ordinary income

1,808+374

26.2+208

113.0

-48

97.4

Net income
attributable toowners of parent

1,190+271

29.5＋130112.3-1099.2*Actual exchange rate (average): 1 dollar = 112 yen, 1 euro = 131 yen©2022 Okada Aiyon Corporation２

Sales of Each Segment in FY3/22Results for
FY3/22(Million yen)

Demolition
environmental
attachment

Forestry machinery,large environmental
machinery, cable cranes,etc.

Repair and material

Domestic segment

Overseas segment

10,708

3,357

2,595

16,661

3,645

Year-onYear(Million yen)

+1,663+83+221+1,969+746

Rate ofchange(%)

Comments

18.4○Strong overall sales due to the sales promotion effect of the Okada GrandExhibition.
○The backlog of orders for mainly the flagship crushers has risen to a record
high due to rising demand for demolition.
△Future challenges include production output increase in response to demandand price revisions.

2.6○Forestry machinery: Improvement in the number of orders due to the launchof the high-performance forestry machinery “Okada Hybrid Bucket,” etc.
Large environmental machinery: Decrease due to the impact of the weaker
yen on import and longer turnaround time.
○Cable cranes: Maintained strong performance due to the demand for theextension of the lifespans of hydroelectric power plants.

9.3〇Renovation of the sales offices (and maintenance plants) and reinforcementof repair facilities.
〇In addition to its own sales offices, our company has designated service
maintenance factories nationwide to supplement our after-sales service system.

13.4○Strengthening the sales cooperation system of Okada and Nanseikikai Co.,
Ltd. in conjunction with the renovation of sales offices.
△Issues to be dealt with include securing products, cost management inresponse to increased raw material prices and longer procurement times,
inventory management, and the reflection of the augmentation of costs in
product prices.

25.7○U.S.: Recovery to pre-COVID-19 level and infrastructure demand expected.
○Europe: Expansion is progressing steadily with the establishment of 81agents in 31 countries after the establishment of a local subsidiary in January
2020.
△Asia: Recovery trend due to the release of new products that match prices.
○Other: Our company is continuing to expand to the Middle East, Australia andSouth America.

©2022 Okada Aiyon Corporation

３

Performance Trends(100 million yen)

Net sales(100 million yen)

179 175 203
178
153
120 131
FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22

Operating income

7.6

15.2 13.6 13.7
11.9
11.0

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22(100 million yen)

Ordinary income

7.2

10.9 12.7

15.6

13.4 14.3(100 million yen)
Net income attributable to owners of parent

18.0

10.0
4.3

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22

17.7

6.9

6.6

8.8

9.1

11.9

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22©2022 Okada Aiyon Corporation

４Performance Trends
VISION 30
targetNet sales growth rate

VISION 30
targetOperating income
to net sales

10% or over

10% or over(%)

17.4 16.0

8.4

15.47.86.3

8.98.5

7.67.8(%)

8.70.50.8-2.0
FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22

VISION 30
target

ROE

Overseas sales ratio

10% or over

VISION 30
target30% or over(%)

(%)

10.2

9.8
6.5

7.9

8.5

10.0
8.3

19.2

17.9
16.0

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22

17.1 16.6 16.5

17.9

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22©2022 Okada Aiyon Corporation

５3-Year Plan (FY2022 to FY2024)
Basic Policy: While responding to the recent increase in demand with existing resources, the three-yearplan will focus on strengthening production systems to increase production and reduce costs in order torespond to the continuous increase in demand in Japan and overseas.

Numerical plan(Million yen)
FY2021Results(FY3/22)

Difference
from Rolling
Plan createdin FY2021

FY2022Plan(FY3/23)

Difference
from Rolling
Plan createdin FY2021

FY2023
Plan(FY3/24)

Difference
from Rolling
Plan createdin FY2021

FY2024Plan(FY3/25)

Net sales

20,306+1,806

21,500+1,50023,000+1,00025,000Operating income

1,771+171

2,000+200

2,200+100

2,500

Ordinary income

1,808+208

2,000+200

2,200+1002,500

Net income attributableto owners of parent

1,190+130

1,340+140

1,470+70

1,670

Operating income
to net sales (%)

8.7+0.1

9.3+0.3

9.6+0.1

10.0(%)

10.0+1.0

10.3

+0.8

10.4

+0.2

10.9

ROE

*Assumed exchange rates for the plan: 1 dollar = 120 yen, 1 euro = 130 yen©2022 Okada Aiyon Corporation

3-Year Plan (FY2022 to FY2024): Policies to be Implemented by Each Division

６Our company will focus on expanding production capacity and supply that will contribute to marketing.
★ represents measures related to the expansion of production capacity and supply.
Division

Production

Domestic sales
and services

Overseas

Measures

Details★Strengthening ties with cooperating
suppliers

Stable procurement of products, parts and materials★Strengthening production capacity atAIYON TECH Asaka Plant

Securing human resources, increasing the number of partnercompanies, and expanding production facilities★Improving productivity and reviewing
cost management at Okada andNanseikikai

Pursuing higher production capacity and lower costs★Shift to mass production at the hydraulicbreaker plant in Vietnam

Strengthening the lineup of the global models of hydraulic breakers★Renovation of the sales offices andmaintenance plants

Sendai Sales Office (April 2022) and Sapporo Sales Office (scheduledfor May 2023) aim to respond to increase in size of construction
machinery

Spread of sales price revisions

Responding to cost increases due to a rise in raw material andtransportation costs

Continuation of the attachment
insurance system

Improving the user's peace of mind by compensating for damage andrepair costs for the first two years after the sale of the “TS Series”
demolition attachments

Strengthening the cooperative structurewith Okada and NanseikikaiStrengthening in-group collaboration in sales and maintenanceservices★Relocation and expansion of Okada
America Head Office

Expanding the functions of warehouses and repair factories in themajor North America region

Enriching products for overseas markets

Development and release of models with overseas specificationsEnhancement of base functions

Deploying personnel and products at overseas bases©2022 Okada Aiyon Corporation

７

Capital Expenditures: Results and Plans

To a certain extent, our company has increased the capacity of its domestic sales offices and maintenanceplants to accommodate larger attachments.
Our company will continue to consider the expansion of production facilities and main bases.
(Million yen)
Results
FY3/20Capital expenditures

Major equipment

Rolling Plan FY2022 to FY2024

FY3/21636

FY3/22

FY3/23

FY3/24

FY3/25

1,158

2,295

1,000800Shonan Sales Office
Shikoku Sales
OfficeHead Office Repair
Factory

Shonan Sales Office
Hiroshima Sales
OfficeHiroshima Sales
OfficeChubu Sales OfficeSendai Sales Office
Sapporo Sales
OfficeAIYON TECH Plant
Sapporo Sales
OfficeAmerica Head Office
Plant

AIYON TECH Plant
Sapporo Sales
Office

433

439

482

530

550

Depreciation andamortization(Million yen)

■ Capital Expenditures

2,500

800

Undecided570■Depreciation and Amortization

2,000
1,500
2,295

1,000

500
0

1,158
636 433
FY3/20(results)

1,000439

FY3/21(results)

530

482
FY3/22(results)

FY3/23(plan)©2022 Okada Aiyon Corporation800

550

FY3/24(plan)

800570FY3/25(plan)

８Cash Flow: Results and Plans(100 million yen)

Operating CF

Investment CFFinance CF

FCF
25

21.7

18.7

17.3

20

14.0

15

9.8

10

5.6

3.0

5

0.6

0

-1.1
-6.1
-9.3

-11.2-5-4.4-7.7-7.6-7.8-6.9-15-16.2
FY3/20(results)

FY3/21(results)

FY3/22(results)

3-year cumulative

FY3/23(plan)

FY3/24(plan)

FY3/25(plan)

Rolling Plan FY2022 to FY2024 cumulative
Investment
OperatingOperating
CF: +34Investment
CF: -33Finance

CF: +50

CF: +5©2022 Okada Aiyon Corporation-10

CF: -24
Finance
CF: -18-20

Productivity of Invested Capital: Results and Plans

９*Based on our company's estimates
The figures are calculated simply to study trends. Please see Reference 2 on page 14 for the assumptions forcalculating the values.

Rolling Plan FY2022 to FY2024
FY3/20(results)

FY3/21(results)

164

Interest-bearing
liabilities
Shareholders'equityInvested capital

NOPAT(Net Operating Profit after Tax)

ROIC(Return On Invested Capital)

WACC

FY3/22(results)

FY3/23(plan)

FY3/24(plan)

FY3/25(plan)

174

187

197

203

213 (100 million yen)

62

61

56

53

57

60

107

114

125

136

147

160

8.9

9.0

11.5

13.0

14.3

16.3

6.78

7.15

6.37

5.68

5.30

5.02

4.68

(Weighted Average Cost ofCapital)

2.02

ROIC-WACC
0.66
Economic value added 1.0(Invested capital ×[ROIC－WACC])

4.36

4.47
2.31

4.64

4.85

2.51

2.94

0.61

1.0

7.80 (%)(%)(%)(100 million yen)

3.6

4.4

©2022 Okada Aiyon Corporation

5.0

6.1

１０

Business Portfolio

Envisioned growth of the business portfolio through the implementation of VISION 30
Expansion of demolition environmental attachment and repair and material while maintaining the current business position.
Strengthening competitiveness in overseas, forestry machinery and large environmental machinery fields.

FY2022

VISION 30 Achieved
HighHigh
Overseas

Repair and material

Repair and material

Overseas

Demolition
environmental
attachment

Demolition
environmental
attachment
Cable cranes

Share
Low

Large environmental
machinery

High

Share
Low

Forestry machinery, large
environmental machinery, etc.

Forestry machinery

Forestry machinery, large
environmental machinery, etc.

Low

Low

Profitability

Profitability©2022 Okada Aiyon CorporationHigh

１１

Initiatives for Sustainability
Materiality (Key Issues) and KPIs
Materiality

Achieving carbon
neutrality

Supporting recycling
systems in society

Conservation and effective
use of mountain and forest
resources

Realization of work stylereform and diversity

SDGs

Commitment

KPI◼ Aiming to realize a decarbonized society, our company will makeefforts to minimize energy consumption and utilize nextgeneration renewable energy.
◼ Recognizing that CO2 emissions from the use of our company’s
products at demolition, forestry and large-scale civil engineeringsites are of high significance, our company will promote efforts todevelop and improve products for achieving electrification andhigher energy efficiency.
◼ Our company will reduce CO2 emissions from indirect
departments and production processes.

◼ Reducing CO2 emissions within the group (Scopes I and II)[Excluding overseas sales companies]
Net 0 by 2050
70% reduction by 2030 (compared to 2018)◼ Efforts to reduce scope III CO2 emissions(Establishment of mechanisms and target selection)◼ Effective use and recycling of resources are important issues inresource-poor countries and contribute to efficient scrap and build.
◼ Our company aims to create a recycling-oriented society bycontributing to the improvement of the efficiency of demolition
sites and by recycling waste materials.

◼ Increasing productivity of attachment demolition operations
by 10% by 2030 (compared to our company's existingproducts in 2020)◼ Contributing to maintaining a recycling rate of 98% or more
for construction waste such as concrete◼ Our company will contribute to the efficiency of forestry.
◼ Our company will contribute to effective utilization of lumberresources.
◼ Our company aims to make effective use of land by providing
equipment for moving and transporting materials in difficult
construction areas.

◼ Increasing productivity of forestry equipment by 10% by2030(compared to our company's existing products in 2020)◼ Contributing to the maintenance of hydropower capacity at
250 million kwh/year (by 2030)◼ In response to the decline in the Japanese productive population,
our company will work on productivity improvement andautomation using DX.
◼ Our company will provide a place where everyone can work bycreating a mechanism and environment for recruitment, humanresource development and promotion.
◼ Labor and human rights are also taken into consideration at thegroup's partner companies.
◼ Our company will strengthen the corporate governance system torealize work style reform and diversity.

◼ Introducing a mechanism to measure employee satisfaction
and improve employee satisfaction◼ Female employee ratio: 13% (2021) → 25% (2030)◼ Percentage of female directors: 12.5% (2021) → 25% (2030)◼ Considering labor and human rights when selecting partnercompanies©2022 Okada Aiyon Corporation

１２Initiatives for Sustainability(Reference) Achieving carbon neutrality: Trends in CO2 emissions
KPI (Target Value)
Reducing CO2 emissions within the domestic group (Scopes I and II)
70% reduction by 2030 (compared to 2018)
Net 0 by 2050
January 2020

CO2 (ton)

Switch electricity at all domestic group sites to renewableenergy (*derived from wood biomass power plants)

1,800

Trends in CO2 Emissions(Scope I and II: Domestic Group)

1,600
1,400

Results for FY2020 (ended March 2021)
1,200

46.6% reduction (compared to FY 2018)-46.6%

1,000*The company has signed power supply contracts withMorinodenryoku K.K. and Nadeshikodenryoku K.K., and is receiving
electricity from wood biomass power plants such as Green Power
Generation Oita (Hita City, Oita Prefecture) and Utthi kawai Inc.’sKuzakai power station (Miyako City, Iwate Prefecture).

800-70.0%

600
400(Reference)"Switching to Electricity Generated from Wood Biomass Power Plants," dated December 24, 2019https://www.aiyon.co.jp/wp-content/uploads/2019/12/670c55fc378fb8dd05a91c18f8d6927a.pdf-100.0%2000(FY18 results)©2022 Okada Aiyon Corporation(FY19 results)(FY20 results)(FY30 target)(FY50 target)Reference 1: Outline of Long term Vision "VISION 30"

１３Outline of VISION 30
VISION 30 Statement
Slogan:VISION 30 Key Performance Indicators (KPIs)

Triple 3People create an environment

Net sales: 30 billion yen or more
Operating income: 3 billion yenor more

Values:[Corporate Culture] Corporate culture that respects individuals and encourages freedom and unity

Market capitalization: 30 billion[Business] Providing customer oriented products and services

yen or more[Social] Business expansion leading to the resolution of social issues such as environmental issues

Triple 10
Contribute to create an "environmentally" friendly society through businessactivities by fostering human resources capable of creating an "environment"
without being diverted to the "environment.”

Net sales growth rate: 10% ormore
Operating income to net sales:
10% or more
ROE: 10% or more

VISION 30 3 Strategies
HumanResources
Strategy(1)Human Resource
Development(2)Personnel System(3)Work Style Reform(1) Domestic Strategy

Market Strategy(2) Overseas Strategy(3) New Businesses

Strengthening
ManagementBase

Recruitment, development and utilization of human resources
Fair valuation and compensation system reflecting results and contributions
Creating a workplace that is easy to work in, makes people want to work in, and is rewarding to work in(1) CG System(2) Hardware(3) Software

Strengthening integrated value chain in response to increased demandMarket development through the introduction of products and manpower to three bases in the U.S.,
Europe and Asia
Application of new technologies (new demolition methods, DX, etc.) and promotion of strategic M&A
Establishment of governance structure to support sustainable growth
Maintenance (expansion and new construction) of plants and sales bases in Japan and overseas
Development of system infrastructure and business reform and evolution of customer responsivenessthrough DX©2022 Okada Aiyon CorporationReference 2: Assumptions for Formulating Resultsand Plans of Productivity of Invested Capital

１４

Cost of Equity
Cost of equity = Risk-free rate + Risk premium x β [Sampling period = Risk premium: from 1960, β: 2 years]
End of FY3/18

End of FY3/19

End of FY3/20

End of FY3/21

End of FY3/22

From FY 3/23(*)

6.1%

7.3%

7.7%

7.5%

6.4%

6.4%

Risk-free rate

0.09%

0.07%

0.04%

0.04%0.04%－Risk premium

6.25%

5.87%

6.08%

6.10%

6.20%

－β

0.97

1.24

1.26

1.22

1.03

－

Cost of equity(*)For the fiscal year ending March 2023 and onward, the capital
cost at the end of the fiscal year ended March 2022 is used.

NOPAT (Net Operating Profit after Tax)NOPAT = Operating income × (1 - Effective tax rate) [Effective tax rate is fixed at 35%]ROIC (Return On Invested Capital)
ROIC = NOPAT/Invested capital (debt + equity) [Debt = Book value base; Equity = Book value base]

WACC (Weighted Average Cost of Capital)
WACC = Cost of debt x (1 - Effective tax rate) x Debt/(debt + equity) + Cost of equity x Equity/(debt + equity)[Debt = Book value base, Equity = Market capitalization base, Stock prices after the fiscal year ending March 2023 are
estimated based on forecast PER average of 9.7 for January to March 2022.]©2022 Okada Aiyon Corporation