ResearchServiceTechnology

Results Briefing
for the Year Ended March 31, 2024
May 31, 2024

Copyright ⒸAhresty Corporation. All Rights reserved.

Results of Year ended March 2024

1

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Key Results for the Fiscal Year Ended March 2024
(Million yen)

Year ended
March 2023

Year ended March 2024
YoY changes

Full year

1H

2H

Full year

4Q

140,938

77,75080,50439,443

158,254+17,316

Operating income

23

601

1,690

649

2,291

+2,268Recurring income

94

938

1,636

762

2,574

+2,480Net income

(84)

900

(8,599)(8,954)(7,699)(7,615)

Sales weight*

76

83

84

82

84

+8

Net sales* With the FY2018 average set as 100<Overview>➢ Sales:➢➢

Increased 12.3% year on year partly due to the steady recovery in the volume of orders received and the effect of exchange rates.
Sales weight increased 9.6%, reflecting the increase in production by car manufacturers.
Operating income: In addition to an increase in the volume of orders received by the Group as a whole, steady progress in price adjustments to compensate
for higher energy costs, etc. contributed to profit.
Although sales of Japanese car manufacturers in China remained sluggish, cost optimization progressed through reduction of fixed costs, etc.
Net income:Loss increased mainly due to the recording of impairment loss on the plants in China and reversal of deferred tax assets.

2

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Impairment Loss
Impairment loss recorded at the plants in China (Guangzhou and Hefei):
Approx. 9 billion yen

Earnings deteriorated due to the significant impact of production reduction by
Japanese automakers, our major customers, as competition intensified due to therapid shift to electrification in the Chinese market, resulting in the recording of an
impairment loss.
→ Ease of depreciation cost from FY2024(approx. 10 billion yen of reduction in fixed costs annually)→ Considering review of the business portfolio in China in the future3

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Changes in Sales Weight
Despite production reduction by some customers in 4Q, the full year result reached about the level of the Oct. 25 revised plan.
Decrease from the Oct. 25 released figures (revised plan)※ Changes in percentage of sales weight compared to the level of FY2018

Average

Average

Average

Average

Average

2018

2019

2020

2021

2022

Q1

Q2

Q3
2023

4

Q4

Full-year(average)2023

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Consolidated Results
Recovery in sales volume mainly in the North America segment
contributed to revenue significantly. Although manufacturing costs
were significantly impacted by rising labor costs, productivity
improved in some plants. By promoting further improvements, wewill shift to a system that can secure stable revenue.

We have established a profit-making structure by reducing
personnel growth through the optimization of personnel allocation,
implementation of lean production systems and streamlining work
even as sales weight recovers/increases.

■ Factors behind change in operating income■ Changes in number of employees* Sales weight is the semi-annual total; the number of employees is as of the last day of each period.

(Million yen)

(Persons)
6,500

787

Sales weight

Consolidated number of employees
80,00 0

2,728

472

80

2,291

6,144
6,000

Japan 548
North America
2,401Asia (222)

5,590
5,499

23
FY2022 full year

(1,799)Effect of labor costs:(1,672)
Sales volume

Depreciation

Manufacturing
costs

Aluminum andProprietary
Products
Businesses

5,500
Other

FY2023 full year

5,000

40,00 0

21 1H

5

21 2H

22 1H

22 2H

23 1H

23 2H

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Die Casting Business(Million yen)
Year ended
March 2023

W

Year ended March 2024
YoY changes

Full year

1H

Full year

2H
4Q

59,01931,28230,725

14,09762,007+2,988

250

181

414

(2)

595

+345

Net sales

36,99522,971

24,996

12,52147,967+10,972

Segment income(loss)

(676)

693

549

294

1,242

+1,918Net sales

33,676

16,302

18,796

10,18735,098+1,422

8

(988)

338

200

(650)

(658)

Net sales

Japan

North
America

Asia

Segment income(loss)

Segment income(loss)* The Mexico Plant in the North America segment and two plants in China in the Asia segment settle their accounts in December.

6

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Aluminum Business and Proprietary Products Business(Million yen)

Year ended
March 2023
Full year

Aluminum
Business
Proprietary
Products
BusinessYear ended March 2024
YoY changes
1H

2H

Full year

4Q

Net sales

7,975

3,509

3,548

1,641

7,057

(918)

Segment income(loss)

274

88

53

11

141

(133)

Net sales

3,271

3,684

2,439

999

6,123

+2,852

Segment income(loss)

285

487

404

150

891

+606

<Aluminum Business>➢ Sales: Decreased due to the impact of a decline in aluminum prices.
➢ Income: Decreased mainly due to the decline in sales.
<Proprietary Products Business>➢ Sales: Large orders, such as clean room projects from a semiconductor production company, our main customer, increased.
➢ Income: Marked record high profit due to the record high sales. Contributed significantly to overall income.

7

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Capital Investment, Depreciation and Amortization➢ Amount of capital investment: Decreased in FY2023 compared to the plan, partly due to a reduction in investments at ourChinese site, but increased compared to the previous year due to a recovery in orders.
➢ Depreciation and amortization: About the same level as in the previous year.
Amount of capital investment (Billion yen)
15.0
150

Amount of depreciation and amortization (Billion yen)
15.0

(Plan 14.1)

Other than dies

Other than dies
12.9

Result
10.9
10.0
100

Dies
12.9

12.7

10.5

9.8

2.2

2.3

2.9

2021

2022

2023

11.9

10.0

7.5
6.0

9.4

6.8

9.7

5.0
50

5.0

3.5
0.0

0
2020

2021

2022

2020

2023

* Starting from FY2021, the capital investment amount excludes the amountfor dies due to a change in the method of asset recording for dies.

* Starting from FY2021, depreciation for some dies is not included due to achange in the method of asset recording for dies.
8

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Financial Performance➢➢

Cash flows:

In FY2023, operating cash flows increased as a result of an increase in revenue following a recovery in orders, etc. Free cash flow maintained theprevious year’s level thanks to an increase in investments for newly ordered products, among others.
Interest-bearing debt: Interest-bearing debt was reduced (net interest-bearing debt was ¥28 billion), while cash and deposits continued to maintain the same level as in
the previous year. The equity ratio decreased due to the recording of impairment losses.
We will work to improve our financial structure in FY2024 and beyond.
(Billion yen)(Billion yen)
25.0

(%)

Equity ratio

Operating cash flow
Free cash flow
18.3

20.0

16.4

50.0

45.9

50.0
42.9

43.5
40.3

40.0
33.6

15.0

7.9

45.0

3.91

40.0

30.0

10.7
10.0

Net interest-bearing debt (%)

Cash and deposits

35.0

8.2
20.0

5.0

30.0

4.3

10.0

0.0

25.0

0.0

-5.0
2019

2020

2021

2022

20.0
2019

2023

2020

2021

2022

2023

* Net interest-bearing debt = Interest-bearing debt − Cash and deposits* Free cash flow (FCF) = Operating CF − Investment CF

9Copyright ⒸAhresty Corporation. All Rights reserved.

Forecasts for FY2024

10

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Assumptions for FY2024 Full-year Plan
Automobile sales volume (consolidated) * Excerpts from the released figures of each company; figures for some customers are production volume.
FY’23 Initial plan

FY’23 Result

Comparison
with initial plan

FY’24 Plan

Year-on-YearToyota Motor
Corporation

9,600

9,443

(1.6%)

9,500

+0.6%

Nissan Motor

4,000

3,442

(14.0%)

3,700

+7.5%

1,130

793

(29.8%)

800

+0.9%

4,350

4,109

(5.5%)

4,120

+0.3%

1,915

1,651

(13.8%)

1,525(7.6%)SUBARU

1,010

970(4.0%)

960(1.0%)

Suzuki

3,263

3,265

+1.0%

3,325

+1.8%

Mitsubishi Motors

1,121

1,029

(8.2%)

1,001(2.7%)(Thousand units)

Portion of China
Honda Motor
Portion of Asia

■ The majority of our major customers, car manufacturers, plan a yearon-year increase in sales.
→ While car manufacturers have expressed their intentions to increase sales,
uncertainty about the future, as evidenced by the difficulties in the Chinese
market, has resulted in plans for FY2024 being only slightly higher than lastyear.

■ Aluminum prices
Similar to the previous fiscal year,
the impact of aluminum prices onrevenue is predicted to be limited.
■ Exchange rates
Exchange rate assumption: ¥140/$
Our exchange rate assumption isconservative given the possibility ofa narrowing of the interest rate
differential between Japan and the
U.S. based on recent market rates.

■ Reflecting in our plan
→ Our plan is based on the plans of car manufacturers as well as past
results.

11

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Full-year Plan for Year Ending March 2025
(Million yen)
Year ended March
2024
Full year

•
•
•

•

Year ending March 2025 (plan)YoY changes
1H

2H

Full year
ー

+746

4,000

(2.5%)+1,709

2,500

3,500

(2.2%)

+926

1,900

2,000

(1.3%)+9,699Net sales

158,254

77,00082,000159,000

Operating income

2,291

1,300

2,700

Recurring income

2,574

1,000

Net income(7,699)100

The volume of orders is expected to increase due to the launch of new products mainly in North America and India,
and other factors.
The severe market environment is likely to continue in China.
Enhance resistance to order fluctuations by streamlining production systems to reduce fixed costs and further
improve productivity.
Absorb the impact of cost increases by promoting negotiations to pass on energy and labor costs to selling prices.

Exchange rate assumptions in plan: USD: ¥140.00; Chinese yuan: ¥20.0; Indian rupee: ¥1.70

12

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Sales Weight and Capital Investment Forecasts
20.0

Sales weightAmount of capital investment(Billion yen)

15.0

Changes in percentage of sales weight compared to the level of FY2018

17.5

10.9
10.0

Growthinvestment,e.g., newproducts¥10.8 billion

6.8

5.0

0.0
2022
20.0
15.0

Other than dies

12.9

2023

Dies

2024

Amount of depreciation
and amortization (Billion yen)

12.7

12.7

10.5

9.8

9.3

2.3

2.9

3.3

2022

2023

2024

10.0
5.0
Average Average Average Average Average Average Average Average Average

2018

2019

2020

2021

2022

2023

2024

2025

2026

From FY2024 onward, sales are expected to increase and exceed the level
before COVID (FY2018) in FY2026 mainly due to recovery in the volume oforders received and the start of mass production of new products.

0.0

Expected to increase due to growth investments for newly ordered products. We
will improve investment efficiency and strive to achieve a sound financial
structure and increase profitability. Although capital investment will increase,depreciation will be at the same level as last year partly due to the mitigating
effects of impairment losses.

13

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Return to Shareholders
Dividends: Increase in annual dividend to 28 yen in FY2024 isplanned.

Purchase of treasury stock: Steadily progressing

A net loss was recorded for FY2023 due to impairment losses, etc., regrettably
resulting in reduction of the year-end dividend to 5 yen from the 10 yen forecast
at the beginning of the fiscal year. In FY2024, continue to return profits toshareholders based on consolidated financial results in accordance with thefinancial strategy.

Item

Annual dividendInterimYear ended
March 2022

10
5Year ended
March 2023

10
5Year ended
March 2024

15
10

Year
endingMarch 2025
Forecast

28
10

5

5

5

18

Net income pershare(201.23)(3.26)(300.55)

81.27

Dividend payout
ratio

ー

ー

ー

34.5%

Year-end

Similar to dividend payments, flexibly implementing the acquisition of our own sharesas part of the capital policy in line with our financial strategy, taking into consideration
our business environment, financial status, etc.

Item

Number of sharesacquired
Total amount(million yen)
Purchase period

Acquisition
limit

As of Apr. 30

Progression rate

679,200

600,000

233,200

38.9%

499.9

500

183.5

36.7%

Previous

May 19, 2023
to December
31, 2023

February 19, 2024 to August 31, 2024

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

14

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Actions to Improve Revenue

15

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A Look Back at the Last Five Periods[Summary of Financial Information]
Net sales: Gradually recovered after a significant drop in orders due to the pandemic and the semiconductor shortage, andreached record levels in FY2023, partly due to the weaker yen.
Operating income : Broke even after two consecutive periods of losses. Increased in FY2023, but operating margin is still recovering.
Net income: Posted losses for five consecutive periods due to the posting of impairment losses each time.
[Achievements]
In the midst of the pandemic and the semiconductor shortage, fixed costs were reducedby taking into account the break-even point. We established a lean production systemthat ensures profitability even when orders fluctuate sharply by implementing laborsaving measures that reduce personnel increases even after orders recover.

120

Number of personnel

6,780

Added value per hour (yield)

7,000* FY2019 set as 100

Segment sales weights
and profit margins

3.0%

2.0%

Japan
Asia
North America

North America
Japan
Asia

90000

2.6%
80000

6,500

1.0%

1.0%

110
6,000

100

[Challenges]• Although on a recovery trend, profitability varies from segment to segment.
• Sudden deterioration in revenue due to unstable production during the
production of new products and an increase in production.
→ A factor that drags down overall revenue

5,499

5,590

0.0%

60000

-1.0%

50000

-1.9%

5,500

-2.0%
5,000

90

70000

40000

-3.0%

30000

-4.0%

20000

-5.0%

10000

4,500

80
FY2019FY2020
FY2021
FY2022
FY2023* Added value per hour (yield) = Net sales less direct costs, e.g., raw material costs ÷
Total working hours of plant workers

4,000

-6.0%

0

FY2019FY2020

FY2021

FY2022

FY2023* Bar chart: Sales weight; Line chart: Profit margin16

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Actions to Improve Revenue (1)Optimal personnel structure, switching of revenue structure

Voluntary retirement offers at two major plants in Japan* Timely disclosure made on May 28, 2024, for up to around 160 individuals••

Switch to a revenue structure resilient to fluctuations in orders
Shift to high value-added work by putting the right person in the rightplace[Expected effects]
Launch of a revenue reform project••

Draft improvement items by a joint team of production, sales, andcontrol
Promote effective measures focusing on revenue improvement

Revenue contribution of
approx. ¥200 million/month

Cost control by product and price correction• Subdivide expense items for each product and identify anomalies→ Raise cost awareness among frontline workers and promote
improvement• Improve product revenue through price correction

17

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Actions to Improve Profitability (2)Effective use of production capacity on a global basis[Expected effects]

Global complementing of production••

Optimal use of products and equipment among the sites
Improve revenue with an optimal production system, while taking into accounttariff and other costs

Production leveling, capital
investment and personnel
reduction

Example: Complementing production for our U.S. plant
Effect: Reduction of new investment in casting machines (¥450 million)

Strengthening global production preparation activities[Expected effects]

Launch of Production Preparation Management Office••

Improve/standardize mechanisms of production preparation activities
Supervise/improve target achievement status before & after the start ofmass production→ Quality, productivity, cost, delivery date, etc.

Revenue improvement
through stable production

Example in India plant: Stabilize production upon future new production increases

18

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Addressing Changes in the Market
Environment (Sales Strategy)

19

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Basic Strategy on Changes in the Automotive Market
and on Orders
Car production will grow robustly.
Electrification of automobile powertrains will continue (centered around BEVs).
The rate of vehicle conversion to BEVs by 2030 is slowing.
We will maintain our basic sales strategy of “receiving orders mainly for electric vehicle* parts.”* Electric vehicle (EV) is a generic term for BEVs, FCV, PHEVs, and HEVs.

[Global demand forecast for automotive die casting as of Apr. 2024][Changes in car production forecasts for the two major BEV markets](Million ton)

* Created by Ahresty based on S&P Global’s Apr. 2024 data.

Nov. 2023
forecast

20

Apr. 2024
forecast

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Market Changes and Sales Strategy by Region
Growth driver region: Invest management resources to expand sales and income ⇒ Mexico, India
Stabilization region: Maintain/strengthen business foundation to secure stable sales and income ⇒ Japan,
U.S.

Recovery region: Restructure business with high productivity and quality to restore income ⇒ China(Million ton)
(Million ton)

Demand forecast for die casting in North America, Gigacadt parts excluded (May 2024 S&P pace)

Demand forecast for die casting in China, Gigacast parts excluded (May 2024 S&P pace)

Slight decline inmarket.
Increase in EV
ratio.

Japan
China

Ratio of EV exports from China

BEV production
forecast to increase but
domestic demand isslowing. Outlook is
uncertain.

India(Million ton)

Exports (10,000 units)

Domestic sales (10,000 units)(Million ton)

Demand forecast for die casting in Japan, Gigacadt parts excluded (May 2024 S&P pace)

U.S.
MexicoGreater
opportunities
through local
sourcing within theregion.
Status of inquiries for electric system parts

Greater
opportunities
Marketexpansion.
throughlocal
Highsourcing
expectationsof growth.
withintheregion.

* Percentage of2024 net sales in
MexicoDemand forecast for die casting in India, Gigacadt parts excluded (May 2024 S&P pace)

Export ratio

21

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Sales Strategies in Growth Driver Regions (Progress)
Mexico has an advantage as an investment location for“nearshoring” for the U.S. market, where EVs will
increase.
(10,000 units)

India is the world’s third-largest automotive market
and will continue to grow mainly in EVs.
Car production by power source in India

Car production by power source in North America(10,000 units)

Parts forpriorityorder intake

FY2022–2024
E-Axle-relatedparts
FY2025–2027
Vehicle bodyparts

➢ Received orders for E-Axle cases from a Tier 1
European supplier.
Mass production to begin in 2025.
➢ Demand for the Mexico plant’s parts for EVs is
increasing ⇒ Capacity expansion will be considered.

➢ Received orders for E-Axle cases from a Tier 1
Japanese supplier.
Mass production to begin in 2025.
➢ The plant will be expanded in anticipation ofincreased orders and the future outlook: To becompleted in Dec. 2024.

* Created by Ahresty based on S&P Global’s data.

22

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Sales Strategies in China
The recovery of production at Japanese OEMs, our core customers, is uncertain.
The high quality of our products has also won the trust of Chinese-owned OEM/Tier 1 customers.
⇒ We have received orders for blocks for PHEVs from several customers.
The market for PHEVs is promising. We will avoid price competition for E-Axle parts for which we havereceived orders in other regions, and in areas where quality becomes a competitive advantage due tothe difficulty in manufacturing of the product.
Car production (units)

Car production and market share of Japanese OEMs in China (Apr. 2024 S&P)

Forecast of Japanese OEMs’ car
production in China

PHEV share of the Chinese market (from Apr. 2024 S&P data)

Market share of Japanese OEMs

23

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Initiatives in Vehicle Body Parts (Joint Developmentwith GTEKT)A concept model has been completed and presented to OEMs.
Consolidated press components from 36 to 2
Achieved significant parts reduction.

Proposing to be as competitive or more competitive than Gigacast
Shifting to an advance development phase with OEMs with a view to mass
production after 2028
Competing productBase
Fe press

Gigacast

DC parts
Buckling
technology ②
Thin-wall die-castmolding

Concept
Multi-material

Press
components

Buckling
technology ①
SPR joint
Partial heat
treatment

Weight100%

Approx. 100%

94%

Cost

100%

Up approx. 30%

97%

CO2

100%

Up approx. 10%81%24Buckling technology③
Performance-based
structure

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Strengthening of Proprietary Products BusinessJapanese market
Orders for clean room floor panels are increasing due to booming demand for semiconductor plant construction.
We will strive to increase sales of floor panels for computer rooms* of infrastructure-related facilities.
* Computer rooms refer to control/monitoring rooms of water treatment
facilities and railroad communication device/signal rooms.

China and Southeast Asia markets

As in Japan, we will strive to increase sales of floor panels for clean rooms.

We will expand our product lineup with a focus on high-strength products to meet the demand for a wide
range of floor panel specifications.
Forecast of sales of Japan-made devices* “Sales of Japan-made devices” are sales made by Japanese companies (incl. overseas bases) in Japan and abroad.
Sales volume (Billion yen)
5,000.0

ResultGrowth rate (%)

Expansion of high-strength product lineup for clean rooms

Forecast

4,500.0
4,000.03,500.0

Prescribedload
20000N

3,000.02,500.0
2,000.0

Prescribedload
30000N1,500.0

1,000.0

C60N
model

500.0
0
(FY)

Semiconductor
manufacturing device

Growth rate

(CAGR: FY2022–2025)

25

C60X
model
Strongest
in Japan

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Evolution of a Lean Production System(MONOZUKURI Improvement)

26

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Evolution of a Lean Production System◎ Expanding our lean production system to further evolve MONOZUKURI◼ Automation and labor saving➢ Automation and labor saving in in-process logistics: AGV/AGF➢ Automatic visual inspection device: Big Data/AI◼ One Print Multi Location➢ Same quality, same productivity: Business standard/technology
standard◼ Global complementing of production and equipment➢ Response to order fluctuations: Optimal use of production capacity

27

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Automation and Labor Saving
Conventional tactics
Focus on automation and labor saving within production processes

Melting

Casting

Burring

Machineprocessing

Leak tester
assembly

Visualinspection

Delivery

Expand to automation and labor saving between production processes

Future tactics

28

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Automation and Labor Saving
Evolution of automated inspections
We are developing our own AI judgment software.
Coexistence with rule-based systems will cover eachother’s strengths and weaknesses and improve inspection
accuracy.

A special task force will be organized to promote theintroduction of automated inspection in the Group.

Automatic visual inspection device

Utilization of AGVs and AGFs
In addition to the use of Automated Guided Forklifts (AGVs)
in inter-process transfers, AGFs will be introduced for
product storage and receipt/shipment to further reducelabor and improve safety and work efficiency at distribution
sites.
Inter-process transfer AGV
29

Automated guided forklift

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One Print Multi Location

Same quality and productivity at all sites with one drawing(Standardization technology)

One Print

3DｰModel➢ Key benefits
1. Centralized contact point
for development
2. Simultaneous global
launch
3. Same quality, same
productivity

2D

Globalmanagement

AS

AES

PDM

Business
standard

Technology
standard

Centralized drawing
management system

Global RST
Learning
Training program

30

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Global Complementing of Production and Equipment
One Print Multi Location technology complements production and equipment globally.

Complementation flow

U.S.
Japan

Complementing dies

China

Complementing
equipment

Complementing
products

MexicoIndia

Complementing equipment

Effective global utilization of production
capacity and equipment

A lean production system that can
respond flexibly to order fluctuations
31

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ESG

32

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Actions Toward Carbon Neutrality
Using Scope 1 and 2 CO2 emissions as metrics, we are working to reduce CO2 emissions across the Group.
Taking on the challenge of

29%

301

50%

achieving carbon
neutrality

CO2 emissions[Thousand t-CO2]

Unregulated
CO2 emissions

207

213

203
213
150

FY2013(Base year)

Three-pillar
approach

FY2022

1.
2.
3.

FY2023

FY2024FY2030Stop CO2 emissions
Convert to energy with less CO2 emissions
Reduce consumption of CO2-emitting energy

Scope of aggregation: All domestic manufacturing bases (8 locations) + Head Office/Technical Center, Tokyo Head Office, all overseas manufacturing bases (7 locations)
Reference source:
Scope 1:
We used the factors according to each energy type specified in the List of Calculation Methods and Emission Factors in the Calculation, Reporting and Publication System, published by the
Ministry of the Environment.
Scope 2:Market-based method: We used the factors published by electric power companies. Since the market-based method has become the mainstream in recent years and is more accurate, wehave changed to market-based disclosure from FY2024.
Location-based method: We used the factors according to the results of each country and each fiscal year specified in the IEA Emission Factors released by the IEA.

33

FY2050* Scope 1, 2

After continuing energy
conservation activities and utilizing
innovative technologies, introduce
more effective improvement items.
Copyright ⒸAhresty Corporation. All Rights reserved.

Examples of Three Pillar Actions
Introduction of solar power
generation

Conversion to energy with less CO2
emissions

Energy conservation activities

Introduction in all installable plants inJapan to be completed by the end of
FY2024.

Switch energy for melting from heavy
oil to city gas (LNG).

Set targets and implement measures at
each plant.

To be introduced in the Head
Office/Technical Center and Ahresty
Techno Service from mid-January 2024

(Approx. 29% reduction per
generated power)

Example: Application of a small amountof mold-release agent
Cut electricity consumption by reducing
the time for application and air blowing

Tokai Plant Furnace No. 2 converted inAug. 2023

FY2023 1H Ahresty Kumamoto:
Natural gas is a methane-based gas that
produces almost no sulfur oxides or sootdust, and is a clean energy with low nitrogenoxide and CO2 emissions compared to fossil
fuels such as coal and oil.

Scope 2 CO2 emissions in the casting process26%

of target products were reduced bycompared to before the improvement.
(Expected reduction of approx. 7.7 t-Co2/year)

Achievement of carbon neutrality at the Head Office and an affiliate
In addition to carrying out the above reduction measures, CO2 emissions from the use of fuel and electricity at the Head Office and an affiliate werevirtually reduced by purchasing J-Credits and Non-Fossil Certificates.
34

Copyright ⒸAhresty Corporation. All Rights reserved.

Calculation of Scope 3 Emissions
Scope 3: Emissions in FY2022 were 1,109 thousand t-CO2• Among Scope 3, categories 1 (Purchased Goods and Services) and 11 (Use of Sold Products) accounted for 80% of total
emissions.
• In category 11, we will improve the energy efficiency of vehicles by increasing the supply of aluminum die-cast products, which
are lighter than steel, to help reduce CO2 emissions.
Category 11
Use of Sold Products

category1

category11

35%

49%

Purchased
Goods andServices

Use of Sold
Products

Scope 1
5%

Scope 2

Scope 32

vehiclesHEVs: Approx. 54%; PHEVs: Approx. 60%;
BEVs: Approx. 70%
A 10% increase in the weight ratio of partsfor EVs results in a reduction of approx.
31,500 t-CO2.
(Equivalent to 2.8% of entire Scope 3)(1,109 thousand t-CO2 )11%

FY2022CO2 emissions(1,317 thousand
t-CO2)

35% CO reduction per weight against gasoline (ICE)* Calculated based on the percentage of sales weightof each power source in FY2022.

Scope 3

(Reference)Calculation method: Aggregate (Sales weight) x (CO2 emission factor
per kilogram (lifetime)) of each power source

84%
Reference source:
Scope 3: Calculation based on the “Basic Guidelines on Accounting for Greenhouse Gas Emissions Throughout the Supply Chain” by the Ministry of the Environment and METI

35

Copyright ⒸAhresty Corporation. All Rights reserved.

Overview of our Human Resources Strategy
Management Targets

Three Pillars of Human Resources Strategy⚫ Train human resources systematically and strategically according to a human resources
Humanroadmap
resources⚫ Actively train female management personnel
development ⚫ Develop an education system (same quality globally; strengthen MONOZUKURI foundation)⚫ Achieve work-life balance and health management

Engagement ⚫ Enhance the career support system
reforms⚫ Implement ergonomics, eliminate work-related injuries/deaths

D&I reforms⚫ Promote management diversity⚫ Expand female new graduate recruitment and work fields where women can play active roles⚫ Provide a place for disabled persons to play active roles (operation of a special-purpose
subsidiary)

Evaluationindex

Corporate
Philosophy
2040 Vision

Ensure yoursatisfaction with
Ahresty

Engagement index rating of more than 80% by 2030
(Our own index that extracts key items from employee surveys)

36

Copyright ⒸAhresty Corporation. All Rights reserved.

D&I Reforms ーMeasures for Women’s Advancementー
Increase the female employee ratio (new graduate
recruitment) and work fields for womenDevelop female
leaders

Creating gender-free workplaces
Improving the working environment andsystems

Increase the ratioof female
employees

March 2023
Acquired three-star
Eruboshi certification

Highly competent womenStrengthening communication for behavior change
Train (business knowledge, experience)

Women with high motivation to work

Expand workplaces
and work fields
Work that only men are engaged in
Ergonomics analysis
Improve the work environment
Provide gender-free education

Actively hire talented humanresources
Actively allocate them to the
expanded workplaces where
women can play active roles

More female leaders

Culture & awareness reformMore women play active roles in
the workplace

Formulation of recruitment andcareer paths

2040 Vision

Ensure your satisfaction with Ahresty
A company system that enables
work-life balance

Work is carried out regardless ofgender of employee
37

Expansion of gender-freeworkplaces where everyone
can play an active role

Copyright ⒸAhresty Corporation. All Rights reserved.

策

Examples of Initiatives
Establishment of D&I Community

Improvement in the Work Environment

Promoting understanding of diversity

Improving the work environment based on ergonomics

A place for interactive communication
between female employees and the company

Promoting automation and measures to reduce high-load tasks to create aworkplace environment that does not require heavy lifting

重量物対策

防音壁の導入楽楽ハンド（吊り上げリフター）の導入

A conference was held with the participation of
12 female employees from each site in Japan.
Through discussions, participants explored
career development challenges and solutions in
the company from a female perspective.

[Countermeasures against heavy loads]

Introduction of hoisting lifters

38

Hand cranes (being tested for introduction)

Copyright ⒸAhresty Corporation. All Rights reserved.

D&I Reforms ーManagement Diversityー
Diversification of executive managers

Phase

01

02

Phase

Phase

(2022–2024)(2025–2027)

Localization of overseas
base managers

Diversification of Head Office
functional departments

03(2028–2030)

Diversification ofmanagement execution

Julio Cesar Doctoriarena Torres assumes
presidency of Ahresty Mexicana.

1) Strengthening governance and management system
Develop a system for sharing corporate philosophy, Group targets and Group strategies
without going through expatriates.
Re-inspect governance of affiliates.

2) Developing a system for keeping track of candidate personnel at all times3) A system for developing candidate personnel (shifting awareness from a local
to a global perspective)4) Strengthening English language training in Head Office divisions* To assume office on June 1, 2024.

39

Copyright ⒸAhresty Corporation. All Rights reserved.

IR & SR Activities
We actively create opportunities for dialogue with shareholders and institutional investors with the aim of enhancing
our corporate value.
Opportunity for dialogue

No. of times

Results press
conference(quarterly)

4

Financial results briefing

2

Plant tour

1

Individual
meetings/interviews

60

Main topic

Respondent
General Manager, Management
Planning Department
President, Directors
Managing Executive Officers andChiefs of Command
President, Managing Executive
Officers and Chiefs of Command,
General Manager of Management
Planning Department
President, General Manager ofManagement Planning Department
Person in charge of IR

Overview of financial results

Business strategies andbusiness overview

Financial strategies

Details
•
•
•
•
•
•
•
•
•
•
•

Governance

Sustainability and others

•
•
•
•

Factors behind changes in net sales, operating income, etc.
Income status by segment
Financial soundness and balance sheet status
Relationship between changes in the market environmentand growth strategies
Characteristics and strengths of the Company
Status of MONOZUKURI improvement
Measures to improve PBR and the cost of capital
Our approach to shareholder return
Criteria for determining orders and investment projects
Selection process for the skill matrix
Measures for active discussions at meetings of the Board of
Directors and the Nomination and Compensation
Committee
Evaluation of the effectiveness of the Board of Directors
Actions to address climate change
Status of diversity promotion
Initiatives concerning respect for human rights

Internal feedback on the content of dialogue is provided in a timely manner through the Board of Directors’ meetingsand by other means.
Suggestions and requests received through the dialogues are incorporated into our actions and acted upon.
* The details of our initiatives were disclosed in “Status of Dialogue with Shareholders and Investors” dated May 28, 2024.

40

Copyright ⒸAhresty Corporation. All Rights reserved.

Strengthening GovernanceAppointment of a new Outside Director (who is not an Audit and Supervisory Committee
member) (scheduled in June 2024)* To be appointed upon approval at the 103rd General Meeting of Shareholders to be held on June 28.

•

Experience as a corporate manager in the same industry as ours: the automotive industry•

Years of experience at MONOZUKURI sites and on the global stage→ Will contribute extensively to increasing our corporate value.
Required knowledge, ability
and experience
Manufacturing/Quality/
Technology development

Expectation
Respond to the rapid progress ofelectrification
Contribute to world-class MONOZUKURI

Global (international
experience)

Business management that accommodates
overseas business expansion

Human resources/ESG

Respond to sustainability management* Extracted from our skill matrix[Candidate’s career summary]
Name:

Takamitsu Sakamaki

April 1980

Joined Nissan Diesel Motor Co., Ltd. (now UD Trucks Corporation)

April 2008

General Manager in charge of Volvo Powertrain Japan Production PT Technology, Nissan
Diesel Motor Co., Ltd.

January 2011

Managing Executive Officer, Volvo Powertrain Operations Japan, UD Trucks Corporation

July 2016

Senior Managing Executive Officer in charge of Production, UD Trucks Corporation

October 2018

President and Senior Managing Executive Officer in charge of Production, UD Trucks
Corporation

April 2022

Advisor, UD Trucks Corporation (retired in March 2023)

41

Copyright ⒸAhresty Corporation. All Rights reserved.

Contact for inquiries regarding this document and the Company’s IR:
Management Planning Section, Management Planning Department, Ahresty Corporation
Phone: +81-3-6369-8664
E-mail: ahresty_MP0_IR@ahresty.com
URL: https://www.ahresty.co.jp/en/
This document and what is said in the results briefing include forecasts that the Company made based on data available when the document was prepared. Actual results could be different from the forecasts for a range of reasons.

Copyright ⒸAhresty Corporation. All Rights reserved.

Appendix

43

Copyright ⒸAhresty Corporation. All Rights reserved.

Die Casting in Japan
Changes in sales and segment income (million yen)
Net sales
Segment income (loss)

15,00015,033 15,459

15,823

Changes in sales weight
Changes in percentage compared to the average level of FY2018
Decrease from Oct. 25 revised plan

1,500

16,62814,097

ResultForecast

1,000

416
500

139
87

10,000

42

(2)

0
(500)
5,000
(1,000)

0

21Q4

22Q1

22Q2

22Q3

22Q4

23Q1

23Q2

23Q3

23Q4

(1,500)<Full year total>
Sales: ¥62,000 million Up ¥2,900 million (5.1%) year on year
Income: ¥590 million Up ¥340 million year on year (surplus expanded)<4Q>
Sales: ¥14,000 million Down ¥930 million (6.2%) year on year
Income: Loss of ¥2 million Down ¥90 million year on year (loss)➢ Despite sudden production adjustments due to customer circumstancesat several major customers in 4Q, the overall volume of orders recovered,resulting in increases in both sales and profit on a full-year basis.

Average

Average

Average

Average

Average

2018

2019

2020

2021

2022

Q1

Q2

Q3

Q4

2023

Full-year Average(average)
2023

2024

Average

Average

2025

2026

Factors behind change in segment income (million yen)313
548
Effect of laborcosts: (386)250

FY2022 full year

44

595

Sales volume

Depreciation(444)

Manufacturing
costs

(73)

Other

FY2023 full year

Copyright ⒸAhresty Corporation. All Rights reserved.

Die Casting in North America
Changes in sales and segment income (million yen)
15,000Changes in sales weight
1,500

Net sales

12,475 12,521
11,664

Segment income (loss)

11,307

ResultChanges in percentage compared to the average level of FY2018

Forecast

1,000

10,186250

10,000

405

288

255

294

500

0
5,000

(500)
(1,000)

0

21Q4

22Q1

22Q2

22Q3

22Q4

23Q1

23Q2

23Q3

23Q4

Average

Average

Average

Average

Average

2018

2019

2020

2021

2022

(1,500)

Q1

Q2

Q3

Q4

2023

Full-year Average(average)
2023

2024

Average

Average

2025

2026

Factors behind change in segment income (million yen)
<Full year total>
Sales: ¥47,900 million Up ¥10,900 million (29.7%) year on year
Income: ¥1,200 million Up ¥1,900 million year on year (returned to theblack)<4Q>
Sales: ¥12,500 million Up ¥2,300 million (22.9%) year on year
Income: ¥290 million Up ¥40 million (17.6%) year on year
➢ The volume of orders received steadily recovered, contributing to increases
in sales and income. Although labor costs continued to rise significantly,
profit was stably secured.

Fiscal year end: March in U.S.; December in Mexico
Exchange rate (22Q4 ⇒ 23Q4): U.S. dollar: ¥134.95 ⇒ 144.41; Mexican peso: ¥130.78 ⇒ 140.55

635
2,401

1,242

(953)
Effect of laborcosts: (1,005)

(164)

(676)
FY2022 full year

45

Sales volume

Depreciation

Manufacturing
costs

Other

FY2023 full year

Copyright ⒸAhresty Corporation. All Rights reserved.

Die Casting in Asia
Changes in sales and segment income (million yen)
Net sales

10,000

10,187

Segment income (loss)

8,695

8,595

8,609

7,707

Changes in sales weight
Changes in percentage compared to the average level of FY2018

1,500

ResultForecast

Full-year(average)

Average

Average

Average

2023

2024

2025

2026

1,000

8,000
138

6,000

200

500
0

4,000

(15)

(500)

(371)
(617)

2,000

0

21Q4

22Q1

22Q2

22Q3

22Q4

23Q1

(1,000)

23Q2

23Q3

23Q4

(1,500)

Average

Average

Average

Average

Average

2018

2019

2020

2021

2022

Q1

Q2

Q3

Q4

2023

Factors behind change in segment income (million yen)
<Full year total>
Sales: ¥35,000 million Up ¥1,400 million (4.2%) year on year
Income: Loss of ¥650 million Down ¥650 million year on year (loss)<4Q>
Sales: ¥10,100 million Up ¥1,400 million (17.2%) year on year
Income: ¥200 million Up ¥210 million year on year (returned to the black)➢ Despite the ongoing sluggish sales of our major customers in China, sales
returned to the black on a quarterly basis due to the temporary increase in
the volume of orders received in 4Q. The Indian plant is improving
productivity and expected to increase earnings in the next fiscal year andbeyond.
Fiscal year end: December in China; March in India
Exchange rate (22Q4 ⇒ 23Q4): Chinese yuan: ¥19.39 ⇒ 19.81; Indian rupee: ¥1.68 ⇒ 1.75

8Effect of laborcosts: (281)

(222)
(154)

59
(343)
FY2022 full year

46

Sales volume

Depreciation

Manufacturing
costs

Other

(650)
FY2023 full year

Copyright ⒸAhresty Corporation. All Rights reserved.

10-year Business Plan
Medium-Term
Management Plan

【FY2030 target values】
Net sales

180 billion
yen*

Operating income

10.8 billion
yen*

Operating margin

6%

Sales ratio of electricvehicles components

55%

Sales of vehicle bodycomponents

4.0 billion
yen

Reduction of CO2
Emissions (Scope1,2)-50%(vs. FY 2013)* Figures adjusted to the exchange rates and aluminum prices of FY 2022
at the time of formulating the full-year FY 2024 business plan

47

Copyright ⒸAhresty Corporation. All Rights reserved.