August 9, 2024
For immediate release
Company name:Ahresty Corporation

Representative:

Shinichi Takahashi, President& CEO(Code number:5852 Tokyo Stock ExchangePrime)

Contact forinquiries:

Atsushi Shimizu, Executive
Officer and General Manager,
Management Planning
Department(TEL:+81-3-6369-8664)

For Realizing Management that Is Conscious of the Cost of Capital and Stock Price
After announcing its financial strategy toward 2030 in May 2023, Ahresty Corporation (“the Company”), at
the Board of Directors’ meeting held on August 9, 2024, analyzed the Company’s current situation and issues
for realizing the financial strategy and updated its financial operation policy and specific measures for thefuture as “initiatives for realizing management that is conscious of the cost of capital and stock price.”
For details, please refer to the attached document.

ResearchServiceTechnology

Action to Implement
Management that is Conscious ofCost of Capital and Stock Price
August 9, 2024

Copyright Ⓒ Ahresty Corporation. All Rights reserved.

Analysis of Current Situation(million yen)

(yen)

Trends in operating income, net income, and ROE(times)Trends in stock price and PBRPBR x1

Year ended Year ended Year ended
March 2020 March 2021 March 2022

Year ended Year ended Year ending
March 2023 March 2024 March 2025

(Plan)

OperatingincomeYear ended
March 2020

Net
incomeYear ended
March 2021

Year ended
March 2022
Stock price(March 31)

Year ended
March 2023

Year ended
March 2024

Analysis of current situation regarding return on capital and stock priceProfitability deteriorated mainly due to the COVID-19 pandemic and a decline in the volume of orders received resulting from the shortage of semiconductors. Although operating
income has been recovering, net loss has been continuously posted due to the recording of impairment losses and other factors, resulting in a negative ROE for five consecutive
fiscal years.
Although PBR has recently been on a recovery trend, it is still well below 1. We recognize that this is mainly due to uncertainty and pessimism about the Company’s profitability.
Also, the lack of understanding regarding the Company’s sustainable growth, enhanced shareholder returns, etc. is another factor, and it is therefore necessary to strengthen IR
activities.

1

Copyright Ⓒ Ahresty Corporation. All Rights reserved.

Policy for Improving PBRBusiness strategyShifting the business portfolio to predominantly parts for electricvehicles

Promote the “10year BusinessPlan” toward 2030

Establishing low-cost, highly productive MONOZUKURI

Improving
ROE

Financial strategy
ROE

Capital policy

Capital investment

Return to shareholders

Performance management

IR activities

Stabilizing revenue

Expanding disclosure

Enhancing dialogue with shareholders and investors

Set KPIs toachieve the 10year Business
PlanThe details weredisclosed in“Status ofDialogue with
Shareholders andInvestors” dated
May 28, 2024.

2Improving
PBR

Reducing
cost ofcapitalCopyright Ⓒ Ahresty Corporation. All Rights reserved.

Four Pillar Financial Strategies (FY2023 to FY2030)
ROE (Long-term target)

9%• 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

Capital policy• Maintain an equity ratio that ensures resilience against fluid market trends, such as regional differences in speed ofelectrification and 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
Approx. ¥140 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, andimprove 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
3

Copyright Ⓒ Ahresty Corporation. All Rights reserved.

Approach to Improving PBR
ROAROE =Profit margin on net sales

Total assets turnover

Financial leverage

Net income

Net sales

Total assets
Net sales

Profitability

Total assets

Asset efficiency

EquityCapital efficiency

Approach based on financial strategy using ROE asa management indicator4

Copyright Ⓒ Ahresty Corporation. All Rights reserved.

Specific Details of Initiatives
Ahresty’s cost of capitaland ROE target

NetsalesShifting the business portfolio to predominantly parts for electric vehicles

Expanding customer portfolio, expanding components

8.8%

ROEtarget

Net income
Total assets

Expense control (cost reduction efforts)

Strengthening
profitability ofordered projects

Inventory turnover, fixed asset turnover

Assetefficiency

Financialleverage* Based on our estimates (as of May 2023)* Calculated based on CAPM theory

Profitability

Selling price control (price negotiations)Improving productivity, manpower saving and automation

9%TotalAssets
Equitycapital

Net profit
to sales

3% or more

Operating income margin, cost and SG&A ratio

ROA

Cost ofcapital

2030 target level

Actions to improve ROE

Returnpolicy

Improving capital investment efficiency

Improving equipment operating cycles

Shortening development lead timeInventory reduction

Purchase/cancellation oftreasury shares

Maintaining dividend payout
ratio

Controlling financial leverage

5

Management ofinterest-bearing debt

×
Totalassets
turnover1.20 ormore×

Financialleverage

2.50 times
or less

Copyright Ⓒ Ahresty Corporation. All Rights reserved.