April 23, 2024
For immediate release
Company name:
Representative:(Code number:Contact for inquiries:(Phone:Ahresty Corporation
Shinichi Takahashi, President &COO
5852 Tokyo Stock Exchange Prime)
Atsushi Shimizu, Executive Officerand General Manager, Management
Planning Department+81-3-6369-8664)

Notice on Recording of Extraordinary Losses (consolidated and nonconsolidated), Reversal ofDeferred Tax Assets (consolidated), and Revisions to Consolidated Full-year Results Forecasts
and Dividend Projection
Ahresty Corporation (“the Company”) hereby announces that, upon settlement of its consolidated andnonconsolidated full-year results for the fiscal year ended March 2024 (April 1, 2023 to March 31, 2024), it
expects to record extraordinary losses and reversal of deferred tax assets as described below.
Also, in view of recent trends in business performance, the Company has decided to revise its consolidated
full-year results forecasts and dividend projection for the fiscal year ended March 2024 released on October 25,2023, as follows.

1.

Recording of impairment losses, reversal of deferred tax assets (consolidated), and recording of a loss onvaluation of shares of affiliates (nonconsolidated), etc.
(1) Recording of impairment losses on fixed assets and reversal of deferred tax assets (consolidated)
The Ahresty Group’s Die Casting Business in China has been significantly affected by the reduction in
production due to the intensifying competition between Japanese automobile manufacturers, theCompany’s major customers, and Chinese EV (electric vehicle) manufacturers in line with the rapidchanges in the structure of the automobile market. In order to put the business back on a growth trackas early as possible, we have started considering review of the business portfolio and strategic
investments in growth areas, as well as the optimization of our production capacity.
Under these circumstances, regarding the business assets owned by Guangzhou Ahresty CastingCo., Ltd. and Hefei Ahresty Casting Co., Ltd., our consolidated subsidiaries, as a result of careful
examination of their collectability in the future, we have decided to write down their book value to therecoverable amount and record an impairment loss of approximately 9.0 billion yen. In addition, as aresult of careful examination of the collectability of deferred tax assets, taking into comprehensive
consideration the outlook for future business performance in China, the Company expects to reverse
approximately 700 million yen of said assets.
Furthermore, regarding the business assets owned by the Company and other consolidated
subsidiaries, as a result of careful examination of their collectability in the future in view of recent
trends in business performance, we expect to write down their book value to the recoverable amountand record an impairment loss of approximately 2.3 billion yen.
Although the fiscal year ended March 2024 records a net loss, we will further stabilize ourbusiness operations by optimizing the balance sheet in line with the business environment in the next
fiscal year and beyond.
(2) Loss on valuation of shares of affiliates (nonconsolidated)
The Company expects to record approximately 1.3 billion yen of loss on valuation of shares ofaffiliates with respect to overseas sites owned by the Company as an extraordinary loss in thenonconsolidated accounts.
Since this loss on valuation of shares of affiliates will be eliminated in consolidated accounting, ithas no impact on our consolidated results.

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2.

Revisions to business forecasts(1) Revisions to consolidated full-year results forecasts (from April 1, 2023 to March 31, 2024)

Previous forecasts (A)Revised forecasts (B)Difference (B-A)
Percentage change (%)(Ref.) Results ofprevious year
(Year ended March2023)

Net sales

Operatingincome

Recurringincomemillion yen
155,000
158,000
3,000
1.9

million yen
2,400
2,200(200)(8.3)

million yen
2,200
2,500300
13.6

Net income
attributable toowners of parent
million yen
1,400(9,000)(10,400)－140,938

2394

(84)

Net income
per shareyen
54.16(351.26)(3.26)(2) Reasons for revisions
The consolidated full-year results forecasts for net sales, operating income, and recurring income forthe fiscal year ended March 2024 are expected to be at about the same level as previously forecast.
Net income attributable to owners of parent is expected to be lower than the level of the previous
forecast due to the recording of impairment losses and reversal of deferred tax assets described in 1.
above as extraordinary losses and deferred income taxes.
3.

Revisions to dividend projection(1) Revisions to dividend projection
Record datePrevious forecasts
Revised forecasts
Results of year ended
March 2024
Results of year ended
March 2023

End of second quarter

Dividend per share
End of year
10.00 yen
5.00 yen

Total
20.00 yen
15.00 yen

5.00 yen

10.00 yen

10.00 yen
5.00 yen(2) Reasons for revisions
The Company’s basic policy on dividends is to provide appropriate returns while bolstering thefinancial structure and the management base for business development in the medium and long terms.
We pay dividends taking into consideration the amount of investment necessary for medium- andlong-term growth, the payout ratio, and consolidated results.
In line with the above revisions to full-year business forecasts, we deeply regret that we havedecided to revise the year-end dividend downward by 5 yen per share from the previous projection of
10 yen per share to 5 yen per share. Consequently, the annual dividend per share for the fiscal year
ended March 2024 is expected to be 15 yen per share.
We express our heartfelt apology to our shareholders, and we will make our utmost efforts toimprove profitability through the early recovery of our business performance and business growth. We
sincerely ask for your understanding and continued support.
(Note) The forecasts presented herein are based on information currently available and certain assumptions
deemed reasonable by the Company, and actual results may differ significantly from these forecasts
due to various factors.

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