Financial Results for FY3/24

May 21, 2024

OKADA AIYON CORPORATION(TSE Prime 6294)

１

Table of Contents

1. Corporate Profile/History
2. FY3/24 Financial Results Summary
3. FY3/25 Forecasts andMedium-Term Management Plan
Rolling Plan
4. Appendix
2

Corporate Profile (As of March 31, 2024)
Business content
Manufacture, sale and repair of construction and forestry machinery fordismantling and crushing
FoundedCapital stock

Net sales

Business bases

July 1938

2,221
million yen

27,095
million yen

22 in Japan
6 overseas(Established in 1960)

Head Office (Minato-ku, Osaka)

Consolidated subsidiaries

Number of employees(consolidated)

・AIYON TECH. CO., LTD.
(Main assembly plant)
・Nansei Machine Co., Ltd.
(Manufacturing,development and sales offorestry machinery)・Okada America, Inc.
・Okada Europe B.V.

491
3

Our Major Products (Demolition Attachments)
Demolition specific attachments for hydraulicexcavators to demolish concrete buildings.
Domestic market share of
our major products

No.1

Hydraulicexcavators

Primary
Crushers

Pulverizers

Cutters

Breakers

44%

42%

48%

16%

(Prepared by company based on materials published by the Japan Construction Equipment Manufacturers Association (CEMA) April 2023 to March 2024)

４

Business Bases[Domestic][Overseas]
Okada America
Okada Europe

Okada Mid-west(newly established)

Okada Thailand

OKADA AIYON: 12 bases (13 bases from Apr. 1)

Okada America: 4 bases (headquarters/Oregon)

AIYON TECH: 1 baseOkada Europe: 1 base (headquarters/Netherlands)

Nansei Machine: 9 bases (5 bases from Apr. 1)

Okada Thailand: 1 base (headquarters/Ayutthaya)*On April 1, 2024, the machinery sales division of Nansei machine Co., Ltd. was integrated into OKADA AIYONCORPORATION and the OKADA AIYON Kumamoto Sales Office was newly opened. The five sales offices of Nansei machine(Osaka, Chubu, Hiroshima, Shikoku, and Kumamoto) have been integrated into the sales offices of OKADA AIYON.

5

Coprorate History
Around 1951
Appearance of
excavator method

1938
EstablishedAround 1960
Appearance oflarge air breaker

The latter half of the1970s
Appearance of thecrushing method

さくがんき

We have grown mainly through the development and sale of demolition attachments
to meet various demand from rock drills to urban demolition machineries.
(Million yen)2022
Acquisition ofThoesen Ltd.
(USA)

Changes in net sales
over the past 30 years

2011
Great East Japan
Earthquake

1995
Great Hanshin-Awaji
Earthquake
1992
Listed on the 2nd Sectionof the Osaka Stock Exchange

2017
Acquisition ofNansei machine Co., Ltd.
2016
Listed on
TSE1

2008
Financial Crisis

30,00025,00020,00015,00010,000

Since
1990s

5,000

FY
1990

FY
2000

FY
2010

FY
2020

0

6

Table of Contents

1. Corporate Profile/History
2. FY3/24 Financial Results Summary
3. FY3/25 Forecasts andMedium-Term Management Plan
Rolling Plan
4. Appendix
7

Results Summary (FY3/24)● Record high sales and profits for the third consecutive year.

27,095 million yen

Net sales(+14.9% YoY)

2,814 million yen

Ordinary
profit(+43.5% YoY)
(Million yen)

27,09520,306

FY3/22

23,575

FY3/23[Net sales]

FY3/24

3Q
3Q
1,771

1,965

FY3/22

FY3/232,719 million yen

Operatingprofit(+38.4% YoY)

1,886 million yen

Profit(+33.4% YoY)

(Million yen)

(Million yen)

(Million yen)

2,719
3Q

2,814

1,886

1,808

FY3/24[Operating profit]

FY3/22

1,414

1,961

FY3/23

1,190

FY3/24[Ordinary profit]

FY3/22

FY3/23[Profit]FY3/248

Business Results for FY3/24 and Forecasts for FY3/25● In FY3/24, in addition to increased sales in the domestic demolition and forestry machinery sectors, M&A in
North America steadily contributed to the performance.
● In FY3/25, we aim to achieve stable growth by expanding and further developing existing businesses both inJapan and overseas.
(Million yen)

FY3/23Results

FY3/24
Results

Net sales

23,575Gross profit

YoYchange(amount)

YoYchange(%)

Vs.
revisedforecasts
on Nov. 10,
2023

27,095

3,520

14.9

595

6,792

8,149

1,357

20.0

－

－

SG&A
expenses

4,827

5,429

602

12.5

－

Operatingprofit

1,965

2,719

754

38.4

Ordinary
profit

1,961

2,814

853

1,414

1,886

472

Profit(attributable toowners of parent)

FY3/25
Forecasts

YoYchange(amount)

YoYchange(%)

Vs. rollingplan
announced
on previous
year

28,500 1,404

5.2

1,000

－

－

－

－

－

－

－

69

2,900

180

6.6

300

43.5

164

2,900

85

3.0

350

33.4

156

1,980

93

4.9

270

*Exchange rates
Actual exchange rates for FY3/24 (average): 1 USD = 145 JPY, 1 EURO = 157 JPY
Assumed exchange rates in the preparation of the FY3/25 plan: 1 USD = 140 JPY, 1 EURO = 150 JPY

9FY3/24 Factors for Changes in Net Sales● In Japan, sales increased by 1,474 million yen, as the reactionary decline in cable crane sales from the special
demand in the previous fiscal year was offset by other model sales. Large-scale crushers contributed to crusher
sales, and the effect of new hybrid buckets remains in the forestry machinery category. Sales of grapples andlarge-scale environmental machinery began to increase from the previous year's decline, and sales ofsupplementary materials and repairs increased steadily.
● Overseas, the acquisition of North American company steadily contributed to the performance, with sales
increasing by 2,045 million yen.

Domestic

Overseas+1,474+2,045

Demolish environmental AT(attachments): 949

Overseas(M&A)

Forestry machinery, large
environmental machinery, etc.: 125

1,688

Large
environmental
machinery

ForestrymachineryHydraulic Grapples
breakers
Crushers

676
23,575
FY3/23

2

Other AT

48

268

(45)
Environmental
AT

617(Million yen)

Material/
repair

162
(535)
Cable
crane

Overseas(base)

357

399
(118)
Other
machinery*"Overseas (M&A)" is a factor of Okada Midwest, which wasconsolidated in December 2022 in the previous year.

27,095
FY3/2410

Sales by Segment and Business● The overseas sales ratio rose to 25% due to the contribution of M&A in North
America under the policy of expanding overseas business.
*See "Sales Trends by Model" on page 12 for details of each segment.

Net sales

Net sales

Net sales

20,306 million yen

23,575 million yen

27,095 million yen

FY3/22

FY3/23

FY3/24
Demolishenvironmental
attachment

Overseas

18%
13%

21%
52%

17%

12%

25%
47%

50%

17%

解体用ATT

解体用ATT

林業・大型環境機械

林業・大型環境機械

補材修理他

補材修理他

12%
Repair16%
Forestry machinery,large
解体環境ATT
environmental machinery, etc.
林業・大型環境他
修理

11

Sales Trends by Model(Million yen)
YoY

FY3/22

FY3/23

FY3/24

AmountYo2Y

Changes (%)

Changes (%)

6,877

7,833

8,509

676

8.6%

23.7%

Breakers

928

939

942

2

0.3%

1.6%

Grapples

1,362

1,305

1,573

268

20.5%

15.5%

Environmental
attachments

608

579

533

(45)

(7.9%)(12.3%)

Others

932

1,147

1,195

48

4.2%

28.2%

10,70811,804

12,754

949

8.0%

19.1%

Forestry machinery

852

1,298

1,915

617

47.5%

124.8%

Large environmental
machinery

842

463

625

162

35.0%

(25.8%)

1,064

1,775

1,239

(535)

(30.2%)

16.5%

598

557

438

(118)

(21.3%)(26.6%)

3,357

4,094

4,219

125

3.1%

25.7%

Material

1,730

1,887

2,114

227

12.0%

22.2%

Repair

865

987

1,159

172

17.4%

34.1%

Total

2,595

2,875

3,274

399

13.9%

26.2%

Domestic segment

16,661

18,774

20,249

1,474

7.9%

21.5%

2,158

2,955

4,817

1,862

63.0%

123.2%

Europe

717

1,017

1,156

138

13.7%

61.1%

Asia (excluding China)

552

601

583

(18)

(3.0%)

5.6%

Others

216

226

288

62

27.7%

33.7%

Overseas segment

3,645

4,801

6,846

2,045

42.6%

87.8%

Consolidated total

20,30623,57527,095

3,520

14.9%

33.4%

Demolishenvironmental
attachments

Crushers

Forestry machinery,large environmental
machinery, others

Domestic

Total

Cable crane
Others

Total
Aftersales
business

Overseas

U.S.

12

Orders, Manufacturing, and Sales Trends for
Major Products (Crushers)● Sales of mainstay crushers continue to increase, rising 8.6% YoY and 23.7% Yo2Y thanks to the larger sizes andproduction volumes. The order backlog has stabilized toward normalization.
● Orders for cast steel products, such as primary crushers and cutters, have been declining due to the prolonged delivery

period, as the procurement of casting steel materials has been unable to keep pace. However, the procurement
environment has been improving, and delivery times are expected to be shortened in the future.
● Orders for "canning products", such as pulverizers and grapples, have normalized as delivery times have shortened andpre-orders have decreased.
Orders received (left scale)
Order backlog (left scale)%

300

Production (left scale)
Crushers sales (right scale)(Million yen)

5000
Order backlog

250

4000

200
Production
Orders received

150

3000

2000

100
1000

50

0

0
H1 FY3/20

H2 FY3/20

H1 FY3/21

H2 FY3/21

H1 FY3/22

H2 FY3/22

H1 FY3/23

H2 FY3/23

H1 FY3/24*Orders received, production, and order backlog are set at 100 for the H1 of FY3/20.

H2 FY3/24

13

Sales Breakdown by Region (FY3/24)● The overseas sales ratio increased by 4.9% to 25.3% thanks to the growth in the North American business.
(Sales proportion)

North
America

EuropeOverseas

25.3%

17％

70％

Asia

9％
Others4％

Domestic

74.7%[Performance by region/Unit: Million yen][Europe][Asia/Others]

1,500
1,017

1,000

1,156

500

4,000
768

828

872

FY3/22

FY3/23

FY3/24

0

3,000

2,955

2,158

2,000

500

0

4,817

5,000

1500
1000

717

[North America]

1,000
FY3/22

FY3/23

FY3/240

FY3/22

FY3/23

FY3/2414

Factors for Changes in Operating Income● In Japan, lower profits in the cable crane business were offset by sales of demolish environmental attachments,
grapples, forestry machinery and large environmental machinery. Profit increased since higher costs were offset
by price increases.
● Overseas, operating profit increased due to growth in the North American business as a result of M&A and otherfactors, as well as a reduction in marine freight rates.
● In SG&A expenses, operating expenses increased as both domestic and overseas sales increased. Overseas, theprevious year's M&A costs in North America (130 million yen) have been eliminated, but amortization of M&A
goodwill (43 million yen) and personnel costs have increased.
*"Overseas (M&A)" is a factor of Okada Midwest, which wasconsolidated in December 2022 in the previous year.

Domestic
gross profit

Domestic
SG&A
expenses

Overseas(base)
Gross profit

Overseas(M&A)
Gross profit

Overseas(M&A)
SG&A
expenses(Million yen)

Adjustments

Overseas(base)
SG&A
expenses

871

FY3/2317(55)
Domestic: 1,817
Overseas: 907
Adjustments: (5)1,965
Domestic: 1,661
Overseas: 326
Adjustments: (22)2,719

Domestic operating profit+155

Overseas (base) operating Overseas (M&A) operating
profitprofit+267+313
Overseas operating profit+581

FY3/2415

Capital Expenditures and Depreciation Plan
● Construction of the new headquarters in the U.S. and the Sapporo sales office were completed in FY3/24. Partial
purchase costs for the relocation site of the Kansai branch (changed from a warehouse site) were paid in
advance.
● Amortization of goodwill from M&A in North America and depreciation of buildings and facilities at U.S.
headquarters were added to depreciation.

FY3/24(Million yen)

■Capital expenditures ■Depreciation and Amortization(Million yen)Vs. full-year
plan
106.0%

2,500

Vs. full-year
plan

107.5%

2,000
900

954

1,500

2,295

Plan

1,000

Results

Capitalexpenditure

1,229
500

954

482

518

FY3/22(Results)

FY3/23(Results)

634

0
FY3/24(Results)

590

634

Plan

Results

Depreciation<Major capital expenditure>
Branch in Sapporo
U.S. headquarters (plants and warehouses)
Land for Kansai Branch (partial)<Major Factors for Increase in Depreciation>
Depreciation of buildings and facilities at Sapporo
Sales Office
Amortization of buildings and equipment at the
U.S. headquarters (From leasing to company
properties)Amortization of goodwill of M&A in
North America
Amortization of system software

16

Table of Contents

1. Corporate Profile/History
2. FY3/24 Financial Results Summary
3. FY3/25 Forecasts andMedium-Term Management Plan
Rolling Plan
4. Appendix
17

Long-term Vision VISION 30 (Formulated on May 13, 2021)
Framework of VISION 30
VISION 30 Statement

SloganVISION 30 Performance Indicators (KPI)

People create an environment[Corporate culture] Respect for the individual, free-spiritedness, and a sense of unity

ValuesTriple3

Net sales¥30 billion or over

Operating profit¥3 billion or overMarket capitalization ¥30 billion or over[Business] Provision of user-friendly products and services[Social] Expansion of business that leads to solutions to social issues such as environmental problems

To develop human resources capable of creating the environment without
being carried away by the environment, and to contribute to therealization of an environmentally friendly society through our businesses.

Triple10

Net sales growth rate

10% or over

Operating profit to net sales ratio 10% or overROE

10% or over

VISION 30 Three Strategies
Human resources
strategyMarket strategy(1) Human resource development

Recruitment, training and utilization of human resources(2) Personnel system

Fair evaluation and compensation system that reflects performance and contributions(3) Workstyle reform

Creating a comfortable, motivating, and rewarding workplace(1) Domestic strategy

Strengthening the integrated value chain to meet growing demandMarket development by introducing products and capabilities to three bases in the U.S.,
Europe, and Asia
Promoting new technology applications (new demolition methods, DX, etc.) and strategic M&A(2) Overseas strategy(3) New businesses

Strengthening ofmanagementfoundation(1) CG System(2) Hardware(3) Software

Establish a governance system that supports sustainable growth
Development of domestic and overseas plants, sales offices, etc. (expansion and new construction)
Improvement of system infrastructure and DX to reform operations and enhance customer
responsiveness18

Medium-Term Management Plan Rolling Plan (FY3/25 to FY3/27)
In the coming three years, we will respond to the healthy demand and concentrate on the expansion of our market share inside andoutside Japan to secure stable growth, and strengthen our marketing system further, increase the output and productivity of the
manufacturing sector, improve the engagement of employees, and take other measures, with the aim of achieving the stable growthand improving the quality of our business. We plan to review and revise “VISION 30 Targets” after achieving the target sales of 30
billion yen.
(Millions of yen)

Numerical plan

(Reference)

FY3/24
Results

Year-on-year

FY3/25Plan

Year-on-year

FY3/26
Plan

Year-on-year

FY3/27
Plan

Year-on-year

VISION 30
Targets

Net sales

27,0953,520

28,5001,404

30,0001,500

32,0002,000

30,000Operating profit

2,719

754

2,900

180

3,100

200

3,400

300

3,000

Ordinary profit

2,814

853

2,900

85

3,100

200

3,400

300

3,000

Profit attributable toowners of the parent

1,886

472

1,980

93

2,110

130

2,320

210

2,000

10.0

1.7

10.2

0.2

10.3

0.1

10.6

0.3

10.0

12.6

1.9

11.8

(0.8)

11.6

(0.2)

11.8

0.2

10.0

Operating profit (%)
to net sales ratio
ROE

(%)

*Assumed exchange rates for planning purposes: 1 USD = 140 JPY, 1 EUR = 150 JPY

19

Three-year Rolling Medium-Term Management Plan:
Priority Measures

VISION 30 Three Strategies(1) Human
resources
strategy

We aim to create “a comfortable, motivating, and rewarding
workplace,” by pursuing diversity, reforming workstyles, andrevising our personnel system.

We will strive to strengthen our value chain further, by revising
our marketing system, increasing production output, and(2) Market strategy

improving productivity in Japan, and by strategicallydispatching personnel and products to the U.S., Europe, andother Asian countries.

(3) Strengthening ofmanagementfoundation

We will strive to strengthen our management foundation thatwill support sustainable growth, by promoting ESG-oriented
business administration and reforming business processes,
including systematization and DX infrastructure.

20Three-year Rolling Medium-Term Management Plan:
Priority Measures
VISION 30 Three Strategies

1. Recruitment,
training andutilization ofhuman
resources

Measures for FY3/22 to FY3/24
 Adoption of flexible recruitment models
Year-round recruitment of new graduates, recruitment ofworkers who will work in a limited area, referral-based
recruitment, and reemployment of former employees
 To increase the ratio of female employees fresh out ofcollege to improve the ratio of female employees(Ratio of female employees as a KPI: 13% → 25% by 2030)
Ratio of female employees fresh out of college: 40% for
employees who joined the Company in 2024
 Start of an in-company job posting system
Posting of job opportunities in the overseas section(1) Human
resources
strategy(Human capitalmanagement)

 To raise wages and improve the system for reemploying
seniors
To increase base salaries and the basic salaries for
employees fresh out of college
To make it possible to reemploy seniors until they turn 70
years old

2. Personnel
system To adopt a new evaluation system in group companies inJapan
Adopted in the subsidiary Nansei machine To identify problems with our personnel system while
consulting with external consultants
External consultants assessed our personnel system.

3. Workstylereform andengagement

Measures for FY3/25 to FY3/27
and Numerical Plan
 Recruitment of more non-Japanese people andexperienced personnel
Further diversification of recruitment methods
 To increase the ratio of female employees and promote
them to executive posts
To keep the ratio of female employees fresh out of college30%
 To assign personnel while considering their career paths
and goals
Adoption of a system for advancing career To improve the treatment of employees in the entire
corporate group, including subsidiaries
To unify personnel and salary systems in the domestic group
 To address problems with our grading and wage systems,
allowances, etc.
To work on the problems pointed out by external consultants
 To address problems with our personnel evaluation
system
To work on the problems pointed out by external consultants

 Start of a questionnaire survey regarding the level ofhappiness
Conducted every year since 2022.

 To improve the scores for the level of happiness in thequestionnaire survey
To improve the scores for the happiness level (our standards)
by 10 points or more Workstyle reform reflecting the results of a questionnairetargeted at employees
Extracted 30 problems from freely written opinions, and weare dealing with them.

 To continue measures for workstyle reform
To address the problems with the questionnaire targeted at
employees

 To upgrade whistleblowing and consultation desks
To establish a “consultation desk for any matters” outside thecompany

 To discuss and implement measures for improving ourcorporate culture
To deal with reports and inquiries and implement
improvement measures21

Three-year Rolling Medium-Term Management Plan:
Priority Measures
VISION 30 Three Strategies

Measures for FY3/22 to FY3/24

 To upgrade the facilities of sales offices in response to
the enlargement of attachments
To establish 4 new sales offices in Hiroshima, the Chubu region,
Sendai, and Sapporo

1. Domestic
strategy

 To strengthen our structure for boosting the production
output of crushers
To secure and increase suppliers and partner companies of cast steel
components

 To release new products
To develop and release a product (OHB), which is unprecedented inthis industry

Measures for FY3/25 to FY3/27
and Numerical Plan
 To brush up our capability of attending to customers byreforming our marketing structure
To integrate the marketing sections of the Company andNanseikikai, to strengthen the forestry sector
We established new sales offices in Kumamoto in 2024 and plan toestablish in the northern Kanto region in 2025.

 To establish a structure for increasing the production
output of Aiyon Tech Asaka Plant (cast steel products)
To increase the production output of cast steel components incooperation with partner companies

 To enhance the productivity of Kumamoto Plant ofNanseikikai (forestry machinery)
To improve and systematize the management of costs andmanufacturing

 To enrich the lineup of new forestry machinery(2) Market
strategy

 To relocate and expand the headquarters in the U.S.
To adapt to the expansion of the U.S. market by increasing
warehouses and expanding repair functions

2. Overseas
strategy

 To cultivate markets after establishing subsidiaries in
EuropeTo expand our business by increasing distributors (80 distributors as ofnow) To establish a joint-venture company in Thailand
We are concentrating on the cultivation of the Thai market and thedevelopment of products targeted at emerging countries.

 To bring out the effects of cooperation between Okada
America and Okada Midwest
To maximize the effects of M&A

 To cultivate markets by increasing our footholds
To dispatch our personnel and products to the footholds in the U.S.,
Europe, and other Asian countries

 To secure overseas production bases
To jointly build a plant for hydraulic breakers in Vietnam with an OEM

 To continue the integration process after the acquisitionof Okada Midwest

3. Newbusinesses
and M&A

 M&A in Chicago, the U.S. (Okada Midwest)
To attract end users around Chicago and acquire the maintenancefunction

To enhance our marketing capability to achieve a CAGR of 10%
To strengthen our management foundation, including personnel,
accounting, and systems

 To discuss the next M&A, which would help improve ourcorporate value

22Three-year Rolling Medium-Term Management Plan:
Priority Measures
VISION 30 Three Strategies

1. CG system
and ESGoriented
business
administration

Measures for FY3/22 to FY3/24
 To respond to the reform of the markets of theTokyo Stock Exchange
Satisfied the criteria for remaining listed on the Prime
Market at the end of FY3/24.
PBR at the end of FY3/24: 1.58
Started disclosing the results and targets of indicators ofcapital costs and capital productivity

 Disclosure of more information on sustainability
Opened a website focused on sustainability, identified
material issues, followed the recommendations of
TCFD, calculated Scope 3 CO2 emissions, andanswered the CDP climate change questionnaire.

Measures for FY3/25 to FY3/27
and Numerical plan To improve capital productivity
To keep ROE 11.5% or higher
To keep ROIC 7.5% or higher

 To improve the CDP score (environment)
To improve the CDP score (climate change) from B- in 2023
to B or higher
 To improve the ratio of female outside directors
14% as of now → 25% or higher

 To develop sales offices in Japan(3)
Strengtheningof managementfoundation

2. Hardware(capital
expenditures) Development of sales offices in Japan
Relocated or established Hiroshima, Sendai, andSapporo Offices, and rebuilt Chubu Office Enlargement of the U.S. headquarters (Portland,
Oregon)Acquired real estate and relocated the U.S.
headquarters, building a new office while doubling its
size.

To relocate and establish Kansai Branch, and establish
Kitakanto Sales Office (provisional name) To rebuild the headquarters, and establish a
training center
To improve the environment and enhance training

 To enlarge the plant of Aiyon Tech
To establish a system for increasing production output andimprove productivity

 To develop and install a new mission-criticalsystem

3. Software(system andDX)

 To improve system infrastructure
 To reinforce system security

To stabilize the system and rationalize/streamline business
operations

 To reform/install business operation systems
Systems for managing parts and costs

 To put O-ATTA (GPS-based operation management
system) into practice23

Market Strategy: Renewal of Domestic Bases
The plant (Aiyon Tech) and sales office facilities are being systematically expanded to increase production and enhancemaintenance.

We plan to upgrade equipment in a planned manner, to grow further in the coming three years.

2016
Aiyon
Tech

2016
Hokuriku
Sales
Office2019
Shikoku
Sales
Office2020
Shonan
Sales
Office2021
Hiroshima
Sales
Office

2022
Chubu
Sales
Office2022
Sendai
Sales
Office2023
SapporoSales
OfficeFY3/25 to FY3/27
Plan

2025
Kansai
Branchto berelocated

2025(Provisional
name)Kitakanto
Sales Office
to beestablished

2026
Headquarters
to be partly
rebuilt

2026
Aiyon Tech
to beexpanded24

１３Market Strategy: Global Expansion

We are strengthening our three-region system (the U.S., Europe, and Asia) and focusing on acquiring a share on the global market.

EuropeAsia and otherregions

The U.S.

Establishment of the subsidiary Okada Europe in2020
We will strive to secure our share in the largest market
by dispatching personnel to major countries andproducts targeted at Europe.

Establishment of Okada Thailand with a joint-venture
partner in 2021
We will strive to secure our share in the growing
market, by distributing products targeted at emerging
countries, which were developed in Thailand.

Acquisition of Thoesen (present: Okada Midwest) in
2022
We will strive to enhance the effects of cooperation
through M&A, increase the sales of Okada Midwest,
and promote the sale of crushers of Okada America.

Sales results and plan

Sales results and plan

Sales results and plan

2,000

1,700

1,500
1,017
1,000
500
0

Millions of yen

1,156

1,500

479

500
0

FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

872
768 828

FY3/27

469

4,817

4,000

580

2,000

FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

Millions of yen

6,000

6,000

1,300

1,000

718
362

Millions of yen

0

FY3/27

2,955
2,153 1,839 2,158

FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

FY3/27

Overseas segments: Sales and operating profit results/plan
Millions of yen

Millions of yen

10,000

Sales

Operating profit
6,846

7,240

9,000

2,000

1,200

1,000

8,000

4,801

5,000

2,985

2,899

337
308
020/3 21/3 22/3 23/3 24/3
FY3/20 (results)

FY3/21 (results)

3,645
907
418
FY3/22 (results)

910

32621/3 22/3 23/3 24/3
20/3
FY3/23 (results)

FY3/24 (results)

1,050

20/3 21/3 22/3 23/3 24/3
0
FY3/25 (plan)

FY3/26 (plan)

FY3/27 (plan)25

Capital Expenditures: Results/Plan
We have expanded facilities at our sales offices and maintenance shops in Japan to accommodate larger attachments to some extent.
In the coming three years, we plan to improve sales offices in Kanto and Kansai regions, where demand is healthy, and upgrade theequipment at factories, the headquarters, and a training center.

(Millions of yen)

Results
FY3/22
Capitalexpenditures
Main facilities

FY3/24

2,295

1,229

954

Hiroshima Sales Office
Chubu Sales OfficeSendai Sales Office
Sapporo Sales Office

Aiyon Tech LandUS Headquarters
Sapporo Sales Office
Okada Midwest Real
EstateAiyon Tech LandUS Headquarters
Sapporo Sales Office
Okada Midwest Real
Estate

482

518

634

Depreciation andamortization

2,500

FY3/23

Rolling Plan FY3/25 to FY3/27■Capital expenditures(Millions of yen)

FY3/251,700

FY3/261,500

FY3/27
1,500

Relocation and establishment of Kansai Branch
Establishment of Kitakanto Sales Office (provisional name)
Rebuilding and expansion of the headquarters and training center
Expansion of Aiyon Tech plant

660

690

710

■Depreciation and amortization

2,000

1,500
1,000

2,295
1,700
1,229

500
482

0

FY3/22(Results)

954
518

FY3/23(Results)

634

FY3/24(Results)

1,500
660

FY3/25(Plan)

1500

690
FY3/26(Plan)

710
FY3/27(Plan)

26

１５

Shareholder Return and Dividend Policy Under its dividend policy, which aims for a payout ratio of 30%, we plan to pay an annual dividend of 70 yen for FY3/24, an increase of 32 yen YoY, andexpects to pay an annual dividend of 74 yen for FY3/25, a further increase of 4 yen.
 We will continue to increase dividends under its progressive dividend policy based on stable business growth (dividends have increased for 15
consecutive years as of this fiscal year).

(Dividend: yen)

(Dividend payout ratio: %)80
Dividend70

Dividend
payout ratio

Dividend payout ratio

Dividend
payout ratio

30.0%

29.8%

35.0%

60

30.0%

50

25.0%
20.0%

40
70

74
15.0%

30
20
10
8.5

10

12

18

22

23

24

27

28

29

32

10.0%

38

5.0%

0

0.0%
FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24(plan)

FY3/25(forecast)27

Cash Flow: Results/Plan
In the previous three years, the Company aggressively invested in facilities and M&A in preparation for business expansion. In the three
years from fiscal year ending March, 2025, the Company will continue to invest in growth while securing cash flow to recover the investment.

Operating CF

Investment CF

Financial CF(100 million yen)Free CF

40
27.7

29.8

27.2

25.6

30

20.0

(6.5)

14.8

12.2

8.6

7.1

9.7

10

3.8

0

(1.1)
(6.6)
(16.2)(5.5)(12.9)(25.7)(17.0)(8.2)(15.0)(15.0)(9.3)

FY3/23(Results)

-10

-20
-30

(32.3)
FY3/22(Results)

20

FY3/24(Results)

3-year Results
Cumulative

FY3/25(Plan)

FY3/26(Plan)

FY3/27(Plan)-40

Medium-Term Rolling Plan FY3/25 to FY3/27: Cumulative

Investment CF
Operating CF

Operating CF

+83

+23
Investment CF

Financial CF

(54)

+30

(47)

Financial CF

(23)

28

Productivity of Invested Capital: Results/Plan*Based on our calculations
Figures are calculated based on simplified calculations for the purpose of understanding trends.

Rolling Plan FY3/25 to FY3/27(100 million yen)

FY3/22 (Results)

Invested CapitalInterest-bearing debt

Capital stock

187
61
125

FY3/23 (Results)

FY3/24 (Results)

FY3/25 (Plan)

FY3/26 (Plan)

FY3/27 (Plan)

262

277

290

303

232

103

102

100

92

102

139

159

174

188

202
(100 million yen)

NOPAT(Net operating profit
after tax)

ROIC

12.2
6.77

(Return on invested capital)

WACC

4.36

13.6

18.8

20.0

21.4

23.5

7.58

7.41

7.53

7.90 (%)

4.70

4.97

5.03

5.13

6.47
(%)

3.67

(Weighted average cost ofcapital)ROIC - WACC

(%)

2.41

2.80

2.88

2.44

2.49

2.77
(100 million yen)

Economic added value(Invested capital x[ROIC - WACC])

4.4

5.9

7.1

6.6

7.1

8.2

29

Table of Contents

1. Corporate Profile/History
2. FY3/24 Financial Results Summary
3. FY3/25 Forecasts andMedium-Term Management Plan
Rolling Plan

4. Appendix
30

Our Strengths
One-stop circulation model
Utilize user’s needs obtained throughrepair service and direct sales indevelopment work.

Every products require service
and maintenance work.
→ We are the only company
having "in-house“
repair service professional

Design/Repair Develop
ment

Manuf
Sales acture
Sales to excavator
manufacturers and distributors

Manufacturing by groupcompanies and subcontractors

Direct sales to end users

Manufacturing-ability does
not constrain novel ideas

We listen to customer’s needs at first hand.

31

Product Characteristics
Our commitment
Cast steel products are used for the primarycrushers and cutters, which are especially required
for strength in dismantling.

Cast steel products*Cast steel products: made by melting special steel
and pouring it into molds. There are no linkages, andthe strength is higher than that of canned sheet metal
products.
It can be freely formed and has strength in designing.

Canning products: made by melting steel plates andwelding it
Canning products

Cylinder is equipped with a speed increasing valve to achieve both
power and speed

Use of wedge arms realizes outstanding crushing powerArms do not protrude as they close, and they can be
operated in densely populated residential areas.

32

Product Application(Demolish environmental attachments)- Able to install in excavators of all domestic and overseas manufacturers[Crushers] (Pulverizers)[Crushers](Primary Crushers)・ Demolition of the main partof the building・ Crushing theconcrete after
primary crusher[Crushers](Cutters)
・ Used for cutting rebar andsteel frames[Environmental Attachments(Trommel Screening Bucket)]・Select/screen various mixtures
without straining the excavator[Grapples]
・Versatile equipment for demolition ofwooden houses, scrap lumber collection,and disaster relief breakers[Breakers]
・Major equipment in overseas,with outstanding crushing power
・However, the noise is loud.

33

Product Application(Large environmental machinery)[Middle and low speed
rotary machine]••

Processes large logs
Played active role in disposing of debris
after the Great East Japan Earthquake[High-speed rotary machine]••

Cutting wood into wood chips
Chips are used in biomass
power generation, etc.

34

Product Application(Forestry machines and cable cranes)[Forestry machinery]・ Logging timber in the forest
・ Lumering, pruning and transporting[Cable crane for dam construction
and power plants and dams]

・ Conveying concrete, materials, etc.
on roadless mountain slopes
・ For pipe replacement work at aging
hydroelectric power plants

35

Potential for Domestic Demolition Market
Building age and area of non-wooden buildings (concrete buildings)◆ Looking at demolition targets for buildings with 40 years old or older, demolition demand will begin in earnest in the coming
years (an area equivalent to about 1,500 Tokyo Domes will be targeted each year).
(Million square
meters)Area of buildings targeted to
be demolished in the future

80,00070,000

Building area that is more than
40 years old at this time

60,00050,000Equivalent to about
715 million ㎡ 15,000 Tokyo Domes

40,00030,00020,00010,000
0

-1950

-1960
Apartment house◆Converted to the floor area of the Tokyo Dome as
46,000 m2.

-1970

-1980

Offices and stores

-1990

-2000

Factories and warehouses-2010
Others

Prepared by company from "Building Stock Materials" by the Ministry of Land,
Infrastructure, Transport and Tourism

36

21

The plans and forecasts contained in this report are based on information currently
available to the Company and certain assumptions deemed reasonable by theCompany, and are subject to risks and uncertainties.

As such, the Company does not promise or guarantee the realization of any future
plan figures or measures shown in this report.

For inquiries, please contact:
Okada Aiyon Corporation
Corporate Planning Office
TEL: 06-6576-1271
FAX: 06-6576-1270
URL: http://www.okada-aiyon.com/