1

Ｍedium-to Long-Term Management Plan

VISION 30- Go To The Next StageOKADA AIYON CORPORATION©2021 Okada Aiyon Corporation

Composition of the Mid-to Long-Term Management Plan

2

Page

Ⅰ

Long-term Vision VISION 30

3-17

Our vision toward 2030 and our long-term management planⅡ

Mid-term Management Plan

Rolling Plan FY2021-FY2023

18-39

Mid-term (3-year) management plan for realizing the long-term vision
We will review the 3-year rolling plan annually©2021 Okada Aiyon Corporation

3Long-Term Vision

Ⅰ

Long-term Vision

VISION 30

VISION 30- Go To The Next StageOKADA AIYON CORPORATION

１ Management Philosophy and Vision-System
２ VISION 30 Outline
３ VISION 30 Business Plan
４ VISION 30 Three Strategies
５ ESG Topics©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

Introduction

4

People create environments
We are surrounded by various environments.
In addition to the natural environment, which is now a global issue,"environment" also includes the working environment, relationships with
employees, customers, partner companies, suppliers, shareholders,financial institutions, local communities, and all other stakeholders.
All such environments are created by people.
-People who are not easily swayed by the current environment and aim tocreate a better environment.

We would like to develop such human resources and contribute to create
an environmentally friendly society through the development of ourbusiness.

©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

1. Management Philosophy and Vision -System

5Management philosophy
1. Valuable company for society
2. Valuable divisions for company
3. Valuable individuals for division
4. Steady progress toward improvement

Management
Philosophy

Long-term vision
VISION 30 - Go To The Next Stage
Contribute to create an "environmentally" friendly society throughbusiness activities by fostering human resources capable of creatingan "environment" without being diverted to the "environment"
Numerical Vision
Net sales of 30 billion yen, operating income of 3 billion yen, and amarket capitalization of 30 billion yen

Mid-term Management Plan
Rolling plan FY2021-FY2023
Human Resources Strategy
Market Strategy
Strengthening Management Base

Long-term vision(Long-term plan
toward 2030)

Mid-term
Management
Plan(Rolling 3-year plan)

Code of Conduct
Corporate Code of Conduct
10 Rules of Conduct for Employees

Code of Conduct(Group Code of Conduct)©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

2. Outline of VISION 30

6

VISION 30 Statement
Contribute to create an "environmentally" friendly society through businessactivities by fostering human resources capable of creating an "environment"
without being diverted to the "environment"

Slogan: People create an environment
Values: [Corporate Culture] Corporate culture that respects individuals and

Implementationof ESG
management

encourages freedom and unity[Business] Providing customer-oriented products and services[Social] Business expansion leading to the resolution of social issues suchas environmental issues

VISION 30

Key Performance Indicators (KPIs)
Triple 10

Triple 3
Net sales: 30 billion yen or more
Operating income: 3 billion yen or more
Market capitalization: 30 billion yen or
more

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

Go To The Next Stage
Number ONE by far in Japan

Global number ONE

ONLY ONEVISION30“ ONE ”ONE TEAM

ALL FOR ONE GOAL
©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

３-1． VISION 30

Business Plan

7

VISION 30 Business Plan (Targets to be achieved as early as possible by 2030)(100 million yen)

FY3/21ResultVISION30
Plan

FY3/21
Vs. Plan

OKADA

119

165

+46

Nansei

27

45

+18

Japan

146

210

+64

Overseas

28

90

+62

Net sales

175

300

+125

Operating income

13

30

+17

CAGR

-

10.0％ or over-

Operating income margin

7.8％

10.0％ or over

+2.2％ or over

ＲＯＥ

8.3％

10.0％ or over

+1.7％ or over©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

３-2． VISION 30
Businesssegment

Business Plan (Growth potential)
Business plan
VISION30
Plan

FY3/21ResultBillion yen

Billion yen

OKADA(Japan)Nansei(Japan)

16.5

11.9
+4.6
Billion yen

Billion yen

2.7

4.5
Billion yen+1.8

Billion yen

Billion yen

2.8

Overseas

Billion yen

9.0
Billion yen

+6.2

8

Growth potential〇 The domestic demolition market demand (buildings, factory plants, publicbuildings, etc.) is about to gain momentum due to the aging of urban
infrastructure.
〇 Targeting No.1 market share, as this situation is favorable for us, which
has strengths in maintenance support and highly operational efficientlarge-scale machineries.
〇 Capital investment in domestic factories, sales offices, and maintenancefactories is expected over the past 3 years. From FY2024 onward, we willenter a period of investment recovery and profit accumulation.

〇 Forestry machinery is expected to grow steadily from the promotion of
the use of domestically produced timber.
〇 Building a competitive sales system based on a sales and maintenancestructure through collaboration and integration with Okada.
〇 As an in-house manufacturer, there is sufficient room for improving
productivity and profitability through following efforts: improving
production efficiency, strengthening development capabilities, improving
product quality, and strengthening sales and maintenance capabilities.
〇 With its solid sales base, strive to increase share in the large U.S.
market.
〇 Focusing on capturing market share in Europe and Asia by expanding
sales bases and investing personnel and merchandise.
〇 Aiming to join the global Tier 1 group of Demolition attachment
manufacturers by improving technological capabilities in hydraulicbreakers and establishing a brand of crushers by launching models foroverseas markets.
©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

３-3． VISION 30

Business Plan (Potential for Domestic Demolition Market)

9

Building age and area of non-wooden buildings (concrete buildings)◆ Looking at demolition targets for buildings 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

60,00050,000715 million ㎡

Equivalent to about
15,000 Tokyo Domes

40,00030,00020,00010,000
0

～1950

～1960

Apartment house

～1970

～1980

Offices and stores◆Converted to the floor area of the Tokyo Dome as 46,000 m2.

～1990

～2000

～2010

Factories and warehouses

Other

～2017

Prepared by company from "Building Stock Materials" by the Ministry of Land, Infrastructure, Transport and Tourism©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

３-4． VISION 30

Business Plan (Potential for Domestic Forestry Market)

10

Trends in Timber Supply and Timber Self-Sufficiency Ratio◆ During the period of high economic growth, imports of timber increased to compensate for the shortage of domestic timber, and have continued to
outstrip domestic timber for a long period of time, but now that the planted forests of 40 to 50 years ago are reaching the optimum age for harvesting,the government is promoting the use of domestic timber from the perspective of environmental conservation, including thinning issues.
◆ Consequently, the timber self-sufficiency rate rose for the ninth consecutive year (18.8% → 37.8%), and the place of activity for forestry machinery,
which is improving work-efficiency, is expanding further.
Timberself-sufficiency
Rate

1973
Total demandat its peak

1996
Import volume
at its peak

Imported logs

Imported products
Imported burning wood

Present (2019)
37.8%
Domestic wood
2002 18.8%
Timber self-sufficiency rate Lowest

Forestry Agency, "Announcement of Timber Supply and Demand Announcement 2019" (announced on September 30, 2020)©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

３-5． VISION 30

VISION 30 Business Plan (Overseas Market Potential)

11

Demolition attachment market◆ Overseas market is expanding, and the market share in the U.S., Europe, and Asia (excluding China and Japan), which isthe focus market, is just under 2% and there is enough room for development.
5,000

Outlook(Million US$)

8.7%

9.9%

9.9%

4,500

2.6%

1.9%

3,871
3,613

3,500
3,000
2,500

9.0%

-3.4%

4,000

2,818

1,500

3,120

367

363

2,563

345

294

311

113

108

441

96

100

425

385

329
187

345
193

210

228

238

2,498

2,000

3,063

513

529

1,000
470

470

583
534

649
582

102

693
581

3,315
380

112

340

105

545

96

487

271

235

764
490

555

588

628

636

580

435
119

284

830

563
632

911

997

6.3%

4,390
4,131 Other 486
462 Africa

Middle East 133

126

647

596

251

500
550

410

3,015

446

6.7%

7.1%

South
America

700

Asia

10.0%
0.0%
-10.0%-20.0%(Other)299 Japan

1,080 China

319

1,165

-30.0%-40.0%-50.0%

620

653

721
North
689 America

672

712

747 Europe 781

0-60.0%-70.0%-80.0%

2015
Europe2016
North America

2017

2018

China

Japan

Overseas Focus
Markets

2019

2020

2021

Asia (excluding Japan and China)

2022
South America

2023

2024

Middle East

2025
AfricaOther

YoY"Prepared by company based on research materials from private research companies"©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

４-1． VISION 30

Three Strategies

12

VISION 30: We aim to realize ESG-based management by formulating and promoting
three strategies.

Human Resources Strategy
Human
Resource
Development

Personnel
SystemMarket Strategy

Work Style
ReformESG

Strengthening
Management Base
CG

Japan

OverseasNewbusiness

Hardware

SoftwareDX©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

４-2． VISION 30

Three Strategies

13① Human Resource Development:
Recruitment, development, and utilization of human resources

Human
Resources
Strategy② Personnel System:
Fair valuation and compensation system reflecting results and contributions③ Work Style Reform:
Creating a pleasant and rewarding working environment① Domestic Strategy:
Strengthening the integrated value chain in response to growing demandMarketStrategy② Overseas Strategy:
Market development by investing products and staffs in three bases in the U.S., Europe, and Asia
③ New Business:
Application of new technologies (new demolition methods, DX, etc.) and promotion of strategic M&A① Corporate Governance Structure:
Building a governance system to support sustainable growth

Strengthening
Management
Base② Hardware:
Maintenance of domestic and overseas factories and sales bases (expansion and new construction)③ Software:
Development of system infrastructure and business reform and evolution of customer
responsiveness through DX©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

５-1. ESG Topics (Environment)

14

Carbon neutral
Our Group is actively striving to achieve carbon neutral operation with biomass power.
Forest trees absorb carbon dioxide in the atmosphere through photosynthesis, releasing oxygen.
When wood is burned for energy, carbon dioxide is produced, but this carbon dioxide is absorbed by the trees again as the forest isrenewed after the trees are cut down and as the trees grow.
Thus, the energy use of wood has a carbon-neutral property that it does not affect carbon dioxide in the atmosphere.

Solar energy

O2① Forestry machinery④ Recycled energy use:
100%

Photosynthetic

All domestic sites of our group use
electricity derived from biomass

Forest maintenance by thinning
Use of timber by logging and collecting timber ①

ForestCO2

Timberresources④

Biomass recycling cycle

Energy use

Use of treethinnings② Demolition attachment

Biomass power plant③ Environment related
equipment③

Demolishing wooden houses
Sorting for reuse of wastematerials

Woodchips
Use of demolition
waste②
Demolition
waste

Conversion of lumber from thinningand demolition into wood chips(Fuel for biomass power generation)③©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

５-2. ESG Topics (Environment)

15

SDGs
We contribute to achieve SDGs through our products and after-sales services.
◆ Demolishing and metal recycling machineries that support recycling systems in urban cities

Crushers for demolition ofbuildings (steel frame cutters)

Clean cutters for soft
waste processing

Scrap grapples forhandling scrap iron

Large-scale woodcrushers for rubble
process◆ Forestry machinery and cable cranes that contribute to the effective utilization of domestic
mountain and forest resources

High-performance forestry
machineries for logging,branching, and cutting

Winches for lumber handling Wood chippers for making
chips from thinned woods

Cable cranes for transport
equipment for renovation of
hydraulic power generation©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

５-3.

ESG

Topics (Social)

16

Our Group is focusing on achieving work style reforms for employees and diversity management under thepolicy of "Putting People First"◆ Work Style Reform -Aiming to be a company that is pleasant and rewarding working environment① Appropriate management of working
hours
Compliance with 36 Agreements.
Appropriate time management by minute.
(Time)

Conversion to full-time employees in principle.
In principle, salary levels will be maintained evenafter reaching the mandatory retirement age.

Percentage of fulltime employees

Changes in overtime hours

30
Non-regular
employees:
2%

25
20

2016

2017

2018

2019

③ Securing stable and secure employment② Equal pay for equal work

Securing employment until age 70.
Improvement of salary and other employee
treatment.

(Thousand yen)

(As of March 31,
2021)

Full-time
employees:
98%

2020

Average salary of employees

6,500
6,000
5,500

2015

2016

2017

2018

2019

◆ Diversity: Diversity of human resources and the right person in the right place (As of the end of March 2021)
Percentage of female employees andfemale full-time employees

Percentage of female employees in officeSales
staff:
27%

Male:
87%

Female:13%

Full-time
employees:89%

Maintenance,
manufacturing,
etc.: 39%

Office staff:
34%

Male:
61%
Female:39%*Office staff:
Sales admin staff, design staff, management staff, etc.

Ratio of foreigners inoverseas segment

Japanese:
25%<Overseas Segment>
Foreigners:
Okada America
Okada Europe
75%
Thailand Office
OKADA AIYON Overseas Office©2021 Okada Aiyon Corporation

Ⅰ Long-term Vision VISION 30

５-4.

ESG

Topics (Governance)

17

The Group aims to have a corporate governance system capable of making integrity,
open, and active management decisions.
① Composition of the Board (As of March 31, 2021)
Ratio of independent outside directors

Internal director:
58

Ratio of female director

Independent
outside director:
3 (37.5%)② Evaluation of the effectiveness of the Board of Directors
by external organizations(Matters to reflect opinions on effectiveness evaluation)
・Establish voluntary advisory bodies on nominative
remuneration
・Review agenda items and items to be reported, andemphasize the consideration of important items.
・Establish a forum for information sharing between
outside directors and auditors
・Strengthen IR structure③ Measures implemented in FY2020 to strengthen governance・Established Nomination and Compensation
Committee
・Appointed the first female outside director
・Introduced electronic voting system
・Established a IR team to strengthen the IR system

Female director: 1(12.5%)

8

Ratio of independent outside
director (Including auditors)

Internal director:
6
11

Independent
outside director:
5 (45.4%)④ Governance Structure in FY2021
株主総会
Shareholders
meeting

監査役会
Boardof Corporate
Auditors（社内1
社外2）(Internal: 1, External:
2)

取締役会
Board
of Directors(Internal: 5, External: 3)

Accounting
auditor
会計監査人

Nomination and
指名報酬委員会
Compensation

President and代表取締役社長
Representative Director

Internal
Auditing Office
内部監査室

Executive

Compliance
Committee（社内5 社外3）

Committee（社内2社外3）(Internal: 2, External: 3)

経営会議
Committee

委員会

Further strengthening the system by establishing a voluntary Nomination andCompensation Committee©2021 Okada Aiyon Corporation

18

Medium-Term Management PlanⅡ

Mid-term Management Plan
Rolling Plan

FY2021-FY2023

VISION 30- Go To The Next Stage -OKADA AIYON CORPORATION

1 Review of Arch 2020 Results
2 Changes in Business Segment
3 Performance Plan
4 Investment plan
5 Dividend Policy
6 Market Strategy©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

１-1. Review of Mid-to Long-Term Management Plan ARCH 2020 (FY2015-FY2020)

19

Initial plan carried over in FY3/21 due in part to the impact of COVID-19 both domestically and overseas
100 million yen

Net sales

178 179
120

131

Operating income

200

175

153

Million yen

2,000

1,524

Initialplan

1,106 1,195

1,368 1,377

Initialplan

760

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

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

Ordinary income
1,560
1,092

1,270

Million yen

Net income attributable to

2,000

owners of parent

1,000

1,347 1,433 Initial
696

plan

884

Million yen

1,250

919

666

721

438

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

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

Initialplan©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

１-2. Review of Mid-to Long-Term Management Plan ARCH 2020 (FY2015-FY2020)

CAGR
17.4

Initial
plan

10.0

16.0

8.9
0.5

FY3/17

10.0
8.4

7.8

8.5

FY3/17

FY3/18

FY3/19FY3/18

FY3/19FY3/20

ROE

10.0

8.5

7.9

FY3/20FY3/21

Overseas sales ratio
16.0

8.3（％）

FY3/18

FY3/19FY3/20FY3/21

FY3/16

Initial
plan

20.0

19.2

23

FY3/177.8 （％）

FY3/21

Initial
plan

10.2

9.8

FY3/167.6-2.0（％）

FY3/16

6.5

Initial
plan

6.3

0.8

FY3/16

Operating income margin

20

17.9

27

17.1

16.6

16.5（％）

30

29

28

FY3/19FY3/20FY3/21

20

FY3/17

FY3/18Sales(100
millionyen)©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

１-3. Review of Mid-to Long-Term Management Plan ARCH 2020 (FY2015-FY2020)
Domestic share ofmajor products

21

Maintain high market shares in crushers,
particularly in the Tokyo metropolitan area

Nationwide

Tokyo
metropolitan area

Primary
Crushers

Cutters

Hydraulicbreakers

Pulverizers

Tokyo metropolitan area:
Tokyo, Kanagawa,
Saitama, Chiba

12%

FY3/16

FY3/21

47%39%

51% 45%

49%

47%

47%

46%

41% 39%

44%

11%

14%
38%

14%

Prepared by company based on data presented by the Japan Construction
Machinery Manufacturers Association (share of unit sales)©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

１-4. Review of Mid-to Long-Term Management Plan ARCH 2020 (FY2015-FY2020)
Domestic share of our major products by class
Share 70.0
（％）

Share
（％）

Primary Crushers

Making the most of our strengths in large-scale machines withinstallation excavator classes of 30 tons or more

Share 80.0
（％）

60.0

70.0

50.0

60.0

40.0

50.0

30.0

40.0

20.0

30.0
FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21

70.0

Pulverizers

Cutters

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21
Share
（％）

30.0

60.0

25.0

50.0

20.0

40.0

15.0

30.0

22

Hydraulic breakers

10.0
FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21
Overall share

30 ton or over

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21
20 to less than 30 ton

Prepared by company based on data presented by the Japan Construction Machinery Manufacturers Association (share of unit sales)

less than 20 ton©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

１-5. Review of Mid-to Long-Term Management Plan ARCH 2020 (FY2015-FY2020)
Attachments: Production and Orders Received

23

Establishment of a system to expand production by
expanding the main factory (FY3/16)

Production value of AIYON TECH's main factory(Million yen)

Production capacity increased due to factory
expansion, contributing to shorter delivery times

3,500
Production
cuts due to
COVID-19

3,000
2,500
2,000
1,500
1,000

500

Feb. 2016: Expansion of AIYON TECH
factory0
FY3/16(Units)1,200

FY3/17

FY3/18

FY3/19FY3/20FY3/21

Number of units assembled at AIYON TECH's
main factory
Shipments increased steadily, and orders arerecovering due to the impact of COVID-19(Units)
400
350

1,000

300
800
600

3,000

Shipments increased steadily, and orders arerecovering due to the impact of COVID-19

2,000

200

1,500

50

0

Ordersandshipments0
FY3/16

FY3/17

FY3/18

Number of orders received
Year-end order backlog

FY3/19FY3/20FY3/21

Number of shipments

Orderbacklog

400
300

1,000

200

500

100

0

Ordersandshipments

700

500

100
200

(Units)

600

2,500

250
150

400

(Units)Number of attachments assembled, including
subcontracted production

0
FY3/16
FY3/17
FY3/18
Number of orders received

FY3/19FY3/20FY3/21
Number of shipments

OrderbacklogYear-end order backlog©2021 Okada Aiyon Corporation

Ⅱ
Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

１-6. Review of Mid-to Long-Term Management Plan ARCH 2020 (FY2015-FY2020)

24

Overseas Development
Expand overseas bases from North America (2 bases) to 3 bases in North America, Europe, and Asia.
Okada Europe

Okada America

Opened a representative office in the
Netherlands in August 2017 to cultivate
Europe, the world's largest market. Made a
local subsidiary in January 2020.

Opened a store in Texas, the largest market
in North America, expanding the company's
network to three bases in North America.

Thailand
Representative OfficeOregon Headquarters

Opened a representative office in Thailand in June2019 to cultivate emerging markets in Asia.
Plan to form a joint venture with local capitalenterprise in May 2021.

Ohio Branch
Texas Branch
Opened in January 2016

North America

Asia

Europe欧州
Million yen

478

Million yen

アジア

1,630

502

508

FY3/16

FY3/21Million yen

1,839

北米

135
FY3/16

FY3/21

FY3/16

FY3/21©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

１-7. Review of Mid-to Long-Term Management Plan ARCH 2020 (FY2015-FY2020)

25

Capital investments/R&D◆ Planned investment in the expansion of the main plant (AIYON TECH) to increase production, and in the reconstruction of thesales office (and maintenance plant) to strengthen maintenance support for large machines and improve the work environment.
◆ In capital investment, the depreciation burden only gradually increased as many of those have the long depreciation period such as
plant buildings, cranes, and other equipment.

■Capital investments ■R&D Expenses ■Depreciation and Amortization(Million yen)

1,400
1,200
1,000
800
600
400

1158
887
509

200
0

80

267

FY3/16[Major Contents]

・ AIYON TECH
Capital Investment(559 million yen)

71

765

627
332

120

374

FY3/17

FY3/18・ Construction of
Hokuriku Sales Office(270 million yen)・ Reconstruction of
AIYON TECH
(220 million yen)
・ Nansei Group’s
goodwill(209 million yen)

Expansion of main plant (AIYON TECH)

172

636
429

FY3/19

181

433

185

439

FY3/20FY3/21・ Land for relocation of
Shonan Sales Office(201 million yen)・ Newly built of Shikoku
Sales Office(267 million yen)・ Land for relocation of
Shikoku Sales Office(105 million yen)・ Rebuilding of Head Office
Maintenance Factory(94 million yen)・ Newly built of Shonan
Sales Office(444 million yen)・ Land for relocation ofHiroshima Sales Office(161 million yen)・ Land for relocation of
OKADA AMERICA(75 million yen)

Reconstruction of sales office(maintenance factory)©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

１-8. Review of Mid-to Long-Term Management Plan ARCH 2020 (FY2015-FY2020)
Cash flows
Cash balance

26

Changes in cash flows for 6 years
Operating CF

Investing CF

Financing CF

50
Increase in cash

FCF

40
30
20
10
0

-10
FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21-20

Total cash flows for 6 years(100 million yen)
Operating CF

Cash balance18
Beginning1848 of
FY3/16

Investing CF

+35

△36

Net income after taxes: 42
Depreciation and amortizationof goodwill: 22
Changes in working capital:△34

Purchases of property, plant andequipment: △31
Purchases of shares ofsubsidiary: △5

Financing CF+25
Capital increase: 15
Loan payables: 23
Shareholder returns: △12

Cash balance42
End of FY3/21©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

２-1. Changes in Business Segment

27

We changed our reportable segments through reviewing domestic sales status and administration system.
(Million yen)
Formersegment

Category

FY3/21
Sales

ChangeNew segment

FY3/21
Sales

Category

5,713

Change to ① (nochange)Environmentalrelated equipment

1,640

Change to ④,⑦Hydraulic breaker

807

Change to ② (nochange)④ Environmental
attachment

585

Grapple980

Change to ③,⑥⑤ Other

825

Material

1,250

Change to ⑨

Repair756

Change to ⑩

Other

827

Change to ⑤,⑪⑧ Cable crane

Forestry machinery

702

Change to ⑥,⑨,⑩⑨ Material

1,591

Metal scrap
machinery

369

Change to ③,⑨,⑩⑩ Repair

782

Cable crane

1,010

Change to ⑧,⑨,⑩⑪ Other

566

Change to ⑤,⑨,⑩, ⑪

U.S.

1,839

Europe

478

Asia

508

Other regions

72

Crusher① Crusher② Hydraulic breaker

Domestic

Nansei

Other

638

U.S.

1,839

Europe478

Overseas

Demolition
environmental
attachment

Domestic③ Grapple⑥ Forestry machinery

807
1,113

662

⑦ Large environmental machinery

Overseas

5,713

1,054
990

No change
Asia

508

Other regions

72©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

２-2. Changes in Business Segment

28- Past performance of the domestic (new) segment(Million yen)

1H

2H

FY3/191H

2H

FY3/201H

2H

FY3/21

3,060

3,248

6,309

3,123

2,932

6,055

2,539

3,173

5,713

② Hydraulic breaker

396

442

838

459

410

870

381

426

807

③ Grapple

310

417

728

461

624

1,085

489

624

1,113

④ Environmental
attachment

294

271

565

291

279

570

325

260

585

⑤ Other

393

441

835

469

418

887

405

420

825

4,456

4,821

9,277

4,805

4,665

9,470

4,140

4,905

9,045

⑥ Forestry machinery

319

464

784

311

351

662

305

356

662

⑦ Large environmental
machinery

366

470

836

445

532

978

612

442

1,054

⑧ Cable crane

363

279

642

427

235

662

591

399

990

⑨ Material

769

856

1,625

902

850

1,752

786

805

1,591

⑩ Repair

394

490

885

400

458

859

401

380

782

⑪ Other

376

376

752

327

258

586

252

313

566

7,044

7,759

14,804

7,620

7,352

14,972

7,089

7,603

14,692① Crusher

Demolition environmental
attachment

Net sales(Domestic segment)©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

２-3. Change in Reportable Segment
Core product categories(New) Domestic Segment Classification -Overview of Major Products

Major machines

Demolishenvironmental
attachment
Crushers

Hydraulic breakers

Winch

HarvesterLarge
environmental
machinery
Wood crusher (medium and low speed)

Domestic
estimated share

Domestic
Sales composition¥9.04
billion

62%

35%

¥660
million

5%

20%

¥1.05
billion

7%

20%

¥990
million

7%

50%

¥2.37
billion16%

Wood crusher (high-speed)

Cable
crane
Large cable crane

FY3/21
Net sales

29

GrapplesForestryequipment
GrappleFY2021-FY2023

Large winch

Material/Repair

Domestic segment sales¥14.69billion

OthersRepairs and 4%
material 16%

Major products

80%

30%

©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

３-1．Performance Plan

30

Plan to achieve record-high sales and profits for the current fiscal year (FY3/22)

Result(Million yen)

Plan

VISION30

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

Net sales

17,866

17,957

17,591

18,50020,00022,00030,000Japan

14,804

14,972

14,692

15,50016,50017,80021,000Overseas

3,061

2,985

2,899

3,000

3,500

4,200

9,000

Operating income

1,524

1,368

1,377

1,600

1,800

2,100

3,000

1,128

1,060

1,039

1,290

1,380

1,560

2,000

395

308

337

310

420

540

1,000

Japan
Overseas

（％）

CAGR

16.0

0.5

△2.0

5.2

8.1

10.0

Over 10.0

Operating income
margin

8.5

7.6

7.8

8.6

9.0

9.5

Over 10.0

10.2

8.5

8.3

9.0

9.5

10.2

Over 10.0

ROE©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

３-2．Performance Plan

31
(Million yen)

Results

Plan

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

Net sales

17,866

17,957

17,591

18,50020,00022,000Gross profit

5,259

5,264

5,051

5,580

6,010

6,670

（％）

29.4

29.3

28.7

30.2

30.1

30.3

SG&A expenses

3,735

3,895

3,674

3,980

4,210

4,570

（％）

20.9

21.7

20.9

21.5

21.1

20.8

1,524

1,368

1,377

1,600

1,800

2,100

（％）

8.5

7.6

7.8

8.6

9.0

9.5

Ordinary income

1,560

1,347

1,433

1,600

1,800

2,100

Profit before tax

1,521

1,347

1,357

1,600

1,800

2,100

1,000

884

919

1.060

1.200

1.400

MarginMarginOperating income
MarginNet income attributable to owners ofparent©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

５． Dividend Policy

33

Aiming for sustainable dividend increases with a dividend payout ratio of 30% through medium-to longterm stable growth⇒ Plan to increase dividends for 12 consecutive years in FY3/22
（％）

(Yen)

35
30

Dividend

40

Payout ratio

34.6

35
30

25

22.8

25.3

21.9

25.6

25.2

22.6

25

20
20
15
10
5

22

23

24

27

28

29

30

15
10
5

0

0
FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22
Forecast©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

６-1．Market Strategy

34
Further strengthening the integrated value chain① Renovation of domestic sales office (strengthening sales and repair services)② Integration and cooperation between Okada NANSEI (Nansei Machine) and OKADA AIYON
Domestic③ Strengthen lineups of hydraulic breakers through manufacturing in Vietnam④ Strengthen the Purchasing, Sales, and Repair for Large-Scale Environmental machinery⑤ Launch of attachment insurance (industry's first compensation system in partnership with a non-life
insurance company)
Develop markets by investing products and capabilities in 3 basesin the U.S., Europe, and Asia

Overseas① Incorporation of Thailand base as a local subsidiary -Further development of the Asian market② Expansion of Okada America head office③ Further expansion of products and after-sales services for Overseas

Application of new technologies (new demolition methods, DX, etc.)
and promotion of strategic M&A
Newbusinesses① New product development and new construction methods [Waku Waku Monozukuri Promotion Team]② Promote strategic M&A©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan
６-2．(1) Domestic initiatives by segment

Rolling Plan

FY2021-FY2023-Further strengthening the integrated value chain① Renovation of domestic sales office (strengthening of sales and repair services)

Development

Contributed to the expansion of repair plant facilities in response to the growing size of attachments andimprovements in the workplace environment and safety

2019

2016

2020

Sales
officeHokuriku(sales office)Relocated andnewly
established

Head Office
MaintenanceFactory
Expanded

Shikoku(sales office)Relocated andnewly
established

Shonan(sales office)Relocated andnewly
established

Kyushu (sales
office)Second Plant
newly
established

Investment
amount

270

161

372

707

Lease

Total
investment

1,510

Sale

RepairSale

Repair

35(Million yen)

Hiroshima(sales office)Relocated andnewly
establishedChubu(sales office)ReconstructionSendai(sales office)Relocated andnewly
establishedMorioka(sales office)Expansion

Sapporo(sales office)Relocated andnewly
established

450

450

750

100

450

Total
investment

2,200【Historical results】[Transfer and newly established in Oct. 2016]
Increase the maximum crane size from 2.8t
to10t

Manufacturing

Renovation plan for 2021-2023 (investment amount is estimation)

FY

Hokuriku Sales Office

Manufacturing

Development

Shikoku Sales Office[Transfer and newly established in Nov. 2019]
Increase the maximum crane size from 2.8t to
15t

Shonan (formerly Yokohama)Sales Office[Transfer and newly established in Oct. 2020]
Increase the maximum crane size from 5t toto 15t（New）（Former）

35©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

６-3．(1) Domestic initiatives by segment

FY2021-FY2023-Further strengthening the integrated value chain

Develop
ment

Manufact
uring

Sale

Repair36② Integration and collaboration between Okada NANSEI(Nansei Machine) and Okada◆ Integration and collaboration between sales offices

Develop
ment

Manufacturing

Sale

RepairStrengthen group response in forestry machinery and environmental attachment sales through integration andcollaboration between sales offices

Nagano(Transferred)

Morioka(Integration)

Osaka

Tokyo
(Transferred)

Hiroshima(Remain)Western Japan Region
Promoting Collaboration

Sapporo(Transferred)

Nigata (Transferred)

OKADA NANSEI Bases

Kuma
moto

Eastern Japan Promoting Transfer andIntegration

Nagoya (Remain)
Shikoku(Remain)◆ Cooperation in development and manufacturing

Develop
ment

Manufacturing

Sale

RepairOptimize use of development and manufacturing resources within the Group through shared manufacturing development, parts
standardization, joint development, etc.

<In-house production system><Outsourcing of all parts and parts of assembly>

Design and development

Joint
development

Design and development

Manufacture of partsand materials

Standardizationof parts

Manufacture of parts andmaterials

Assembly

Manufacturing
cooperation

Assembly

Assembly

In-house design anddevelopment
100% outsourcing of partsand materials
Assembly is conducted in combination
with in-house and outsourcing.

©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

６-4．(1) Domestic initiatives by segment

FY2021-FY2023-Further strengthening the integrated value chain③ Strengthen lineups of hydraulic breakers throughmanufacturing in Vietnam

Development

Manufacturing

Sale

Development

・Coverage for the demolition attachment "TS series" tocover damage repair costs for two years after sale.
・In commemoration of the "Okada Grand Exhibition (tobe held in June)," we will cover the insurance
premiums until March 2022.

Repair37Bình Dương
Province④ Strengthen the purchasing, sales, and repair
divisions for large-scale environmental
machinery⑤ Launch of attachment insurance (industry's firstcompensation system in partnership with a nonlife insurance company)

Sale

Overseas

Repair・Launch a manufacturing plant specializing in Hydraulicbreakers (Createch Vina) in collaboration with TEISAKU
Corporation, a partner company
・Planning mass production system in 2021
・Sales in Japan and other countries by creating a lineup of
universal models.

・Strengthen purchasing, sales, and repair systems
through the formation of a specialist team at Ohata
Environmental Machinery・Strengthen the training of repair personnel throughthe 2-year Training Special Program

ManufacturingCreatech Vina
Development

Purchase

Sale

Repair

クレアテック・ビナ社

Develop
ment

Manufacturing

Sale

Repair©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

６-5．(2) Overseas initiatives by segment

38

Develop markets by investing products and capabilities in 3 bases in the U.S., Europe, and Asia

① Making the Thailand base a local subsidiary America-Further development of the Asian market

EuropeAsia・Establish a joint venture with a local partners and focus on developing the Thailand
market, which is expected to develop in the future, and developing new products
for Asia (scheduled to be established in May 2021)② Expansion of Head Office in Okada America

America

EuropeAsia・Transfer and expand head office in the suburbs of Portland,
Oregon・Expand office, factory, and warehouse functions to further gain
market share in the most focused U.S. market③ Further enhancement of products and after-sales
services for overseas

America

EuropeAsia・Enhance our ability to develop products for overseas
Expansion of lineup of hydraulic breakers and crushers through assigning
development personnel to overseas bases and cultivating partner suppliers
outside Japan・Enhance after-sales service for customers
Strengthening the after-sales services system by responding to parts andenhancing information content
Pulverizers exclusively for overseas©2021 Okada Aiyon Corporation

Ⅱ Mid-term Management Plan

Rolling Plan

FY2021-FY2023

６-6． (3) New business development

39

Promotion of new technology applications (new demolition method, DX, etc.) and strategic M&A① New product development and new construction methods[Waku Waku Monozukuri Promotion Team]

Develop
ment

ManufacturingSale

RepairContinue research and development of new products and services through [Waku-Waku
Monozukuri Promotion Team] from a medium-to long-term perspective◆ Projects under development"Attachment operation management system with GPS (O-ATTA)"O-ATTA ＝ Okada－Attachment Trace Time Action
O-ATTA（GPS）

Enlarged view of O-ATTA (GPS)◆ Future development themes・ "Environmentally friendly attachments" for human resource shortages, safety, and the environment.
(maintenance-free, silent breaker, IT-based, unmanned)
・ High strength concrete demolition method② Promoting strategic M&A

Develop
ment

Manufacturing

Sale

Repair

Proactively consider M&As, capital and business alliances to expand business domains that leverage theGroup's strengths.
©2021 Okada Aiyon Corporation

40

The forward-looking statements contained in this report are basedon management's assumptions and beliefs in light of the material
currently available to the Company and other reasonableassumptions, and involves 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/©2021 Okada Aiyon Corporation