Financial Results for FY3/23

May 17, 2023

OKADA AIYON CORPORATION(TSE Prime 6294)

1

Table of Contents

1.

Corporate Profile/History

2. Business Results for FY3/23
3. Forecast for FY3/24 andMid-term Management Plan
"Rolling Plan“
4.

Appendix2

Corporate Profile (As of March 31, 2023)
Business content
Manufacture, sale and repair of construction and forestry machinery fordismantling and crushing

FoundedCapital stock

Net sales

Business bases

July 1938

2,221
million yen

23,575
million yen

22 in Japan
6 overseas(Established in 1960)

Head Office (Minato-ku, Osaka)

Consolidated subsidiaries

Number of employees(consolidated)

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

487

3

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

No.1

Hydraulicexcavators

Primary
Crushers

Pulverizers

Cutters

Breakers

46%

39%

49%

14%

(Prepared by company based on materials published by the Japan Construction Machinery Association (CEMA) April 2022 to March 2023)

４

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

Okada Mid-west(newly established)

Okada Thailand

OKADA AIYON: 12 bases

Okada America: 4 bases (headquarters/Oregon)

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

Nansei Machine: 9 bases

Okada Thailand: 1 base (headquarters/Ayutthaya)5

Coprorate History
Around 1951
Appearance of
excavator method

1938
EstablishedAround 1960
Appearance oflarge air breaker

The latter half of the1970s
Appearance of thecrushing method

さくがんき

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

30,0002022
Acquisition ofThoesen Ltd.
(USA)

Changes in net sales
over the past 30 years

2011
Great East Japan
Earthquake

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

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

2008
Financial Crisis

25,00020,00015,00010,000

Since
1990s

5,000

FY
1990

FY
2000

FY
2010

FY
2020

0

6

Table of Contents

1.

Corporate Profile/History

2. Business Results for FY3/23
3. Forecast for FY3/24 andMid-term Management Plan
"Rolling Plan"
4.

Appendix7

Results Summary (FY3/23)● Achieved record-high sales and profits, and net sales achieved the rolling plan target announced
in the previous fiscal year one year ahead of schedule.

23,575 million yen

Net sales
Ordinary
income(+16.1％ YoY)

Operatingincome1,961 million yen

Net income

23,575

FY3/21

20,306

FY3/22[Net sales](+10.9％ YoY)

1,414 million yen(+18.8％ YoY)(+8.4％ YoY)
(Million yen)

17,591

1,965 million yen

3Q
1,377

FY3/23

FY3/213Q
1,771(Million yen)

(Million yen)

3Q
1,965

1,961

1,808

FY3/23[Operating income]

1,414
1,190

919

1,433

FY3/22(Million yen)

FY3/21

FY3/22

FY3/23[Ordinary income]

FY3/21

FY3/22

FY3/23[Net income]8

Business Results for FY3/23● Profits fell short of the revised forecast due to higher costs and one-time M&A expenses (130
million yen). Due to the gain on sale of real estate (114 million yen), net income was only slightly
below the revised forecast.
(Million yen)Vs.
revisedforecasts
on Nov. 11,2022

FY3/22
Results

FY3/23Results

Net sales

20,30623,575

3,268

16.1

Gross profit

5,970

6,792

821

13.8

- Increase in steel materials and materials,

SG&A
expenses

4,198

4,827

628

15.0

- U.S. M&A expenses (130), absence ofOperatingincome

1,771

1,965

193

10.9

(99) See p.15

Ordinary
income

1,808

1,961

152

8.4

(166) Foreign exchange gain (loss) (-40)

Profit before
taxes

1,766

2,075

308

17.5

- of real estate in Sendai (114)

1,190

1,414

223

18.8

Net income(attributable to ourshareholders)

YoYchange(amount)

YoYchange(%)

Factors for YoY change

1,075 See p.10
Increase in sales

and marine freight rates

Cost increase: Personnel expenses (189),
U.S. PPP recorded in prior year (43)Non-operating profit (loss):

Extraordinary gain (loss): Gain on sale

(10)

-

9

FY3/23 Factors for Changes in Net Sales⚫ Domestic sales increased due to strong demand for crushers and large orders for cable cranes.
Forestry machinery sales increased due to the effect of new products. Sales of large-scale environmental
machinery for imported products declined due to the impact of long-term delivery times.

⚫ Overseas, sales increased in North America, partly due to the weak yen. Sales also increased in Europe andAsia, where market development is progressing.
(Million yen)Domestic 2,112

Overseas 1,155
Asia and
Other
North
America

Demolition environment AT(attachments) 1,096

Material/
repair/other

Cable crane

Forestrymachinery
Other AT

BreakerCrush

955

20,306
FY3/22

214

11
(56)

(28)

446

(379)

711

Europe

59

299

797

279
(40)

Other
machineryLargeenvironmental
machinery

Grapple EnvironmentAT

23,575
FY3/2310

Sales by Segment and Business● Net sales increased in all 4 segments. Owing to the overseas expansion, overseas

sales ratio gradually increased.
*For details of each segment, please refer to P12 "Sales Trends by Model".

Net sales

Net sales

Net sales

17,591 million yen

20,306 million yen

23,575 million yen

FY3/21

FY3/22

FY3/23
Demolishenvironmental
attachment

Overseas

16%
14%

18%
51%

19%

13%

Repair53%

16%

解体用ATT

解体用ATT

林業・大型環境機械

林業・大型環境機械

補材修理他

補材修理他

20%
50%

12%
18%

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

11

Sales Trends by Model(Million yen)
YoY
FY3/21

FY3/22

Yo2Y

FY3/23

AmountChanges(%)

Changes(%)

Demolishenvironmental
attachment

Crushers

5,713

6,877

7,833

955

13.9

37.1

Breakers

807

928

939

11

1.2

16.4

Grapples

1,362

1,305

(56)

(4.2)

17.2

585

608

579

(28)

(4.8)

(1.1)

Others

825

932

1,147

214

23.0

39.0

Total

9,045

10,70811,804

1,096

10.2

30.5

Forestry machinery

662

852

1,298

446

52.4

96.0

Large environmental
machinery

1,054

842

463

(379)

(45.0)(56.1)

Cable crane

990

1,064

1,775

711

66.8

79.3

Others

566

598

557

(40)

(6.8)

(1.5)

3,273

3,357

4,094

737

22.0

25.1

Material

1,591

1,730

1,887

156

9.1

18.6

Repair

782

865

987

122

14.2

26.3

2,373

2,595

2,875

279

10.8

21.1

14,692

16,661

18,774

2,112

12.7

27.8

1,839

2,158

2,955

797

36.9

60.7

Europe

478

717

1,017

299

41.7

112.4

Asia (excluding China)

508

552

601

49

8.9

18.4

Others

72

216

226

10

4.7

212.4

Overseas segment

2,899

3,645

4,801

1,155

31.7

65.6

Consolidated total

17,591

20,30623,575

3,268

16.1

34.0

Forestry machinery,large environmental
machinery, others

Domestic

1,113

Environmental
attachment

Total
Aftersales
business

Total

Domestic segment

Overseas

U.S.

12

Orders, Manufacturing, and Sales Trends for
Major Products (Crushers)● Sales of crushers, our mainstay product, continue to increase on the back of steady orders as a result of growth

in production volume.
Crushers sales increased by 13.9% YoY and 37.1% Yo2Y.
● Growth in orders settled due to long-term delivery times for crushers, but the order backlog remained at a highlevel.
Investment in equipment at the Asaka Plant of AIYON TECH and improvement of productivity at manufacturingsubcontractors are being addressed.
Million yen
300

Orders received (left scale)

Production (left scale)

Order backlog (Left)

Crushers sales (right scale)

4,500

4,000
Order backlog

250

200

3,000

Production

Ordersreceived

150

3,500

2,500

2,000

100

1,500

1,000
50
500

0

0
H1 FY3/20

H2 FY3/20

H1 FY3/21

H2 FY3/21

H1 FY3/22

H2 FY3/22

H1 FY3/23

H2 FY3/23*Orders received, production, and order backlog are set at 100 for the H1 of FY3/20.

13

Sales Breakdown by Region (FY3/23)(Sales Composition)

Overseas
20.4％

EuropeNorth
America

21％

62％

Asia

12％

Others5％

Domestic
79.6％[ Unit: Millions of yen][Europe]
1,200

1,017

1,000
717

800

600

478

400
200
0

FY3/21

FY3/22[North America][Asia]

FY3/23

700
600
500
400
300
200
100
0

508

552

601

2,955

3,000
2,500
2,000

2,158
1,839

1,500
1,000
500
FY3/21

FY3/22

FY3/230

FY3/21

FY3/22

FY3/2314

FY3/23 Factors for Changes in Operating Income⚫ Domestic profit increased due to strong sales of crusher, cable cranes, etc.
⚫ Overseas, gross profit increased due to steady sales growth in the 3 regions of North America,
Europe, and Asia. However, in addition to the one-time M&A expenses in North America (130
million yen), profits declined due to the absence of support from the previous year's U.S. PPP(Paycheck Protection Program) (43 million yen).
(Million yen)Domestic
gross profit

Domestic
SG&A
expenses(201)

Overseas
Gross profit

Overseas
SG&A
expenses

355

(447)

476

Adjustments

+11
1,965

1,771
Domestic
1,386
Overseas
418
Adjustments(33)

FY3/22

Domestic operating
income: +275

Overseas operating
income: (92)

Domestic
1,661
Overseas
326
Adjustments(22)

FY3/2315

Capital Expenditures and Depreciation Plan
⚫ Domestically, the Sapporo Sales Office was relocated to a new location and the expansion of the AIYON TECH Asaka Plant isunder way to increase production.

⚫ The new U.S. Portland headquarters (factory and warehouse) is scheduled to be completed this summer. Prepare for the
expansion of the North American business.
⚫ Purchased business property in Chicago/Okada Midwest (formerly Thoesen), USA, which was consolidated through M&A.

■ Capital expenditures ■Depreciation and Amortization(Million yen)

FY3/23 Results(Million yen)

2,500

Vs. full-year
plan: 122.9%

2,000
Vs. full-year
plan: 95.8%

1,229

1,500

1,000

2,295

530

508

1,000
Plan Results Plan Results

500

1,229

1,158
439

482

Capitalexpenditures

508

0
FY3/21(Result)

FY3/22(Result)

FY3/23(Result)

Depreciation andAmortization<Major Capital Expenditures>
Sapporo Sales Office
AIYON TECH Plant site
U.S. Head Office Plant andWarehouse

Okada Midwest Real Estate16

Table of Contents

1.

Corporate Profile/History

2. Business Results for FY3/23
3. Forecast for FY3/24 andMid-term Management Plan
"Rolling Plan"
4.

Appendix17

Long term Vision "VISION 30“ (Formulated on May 13, 2021)
Framework of VISION30
VISION30 Statement

SloganVISION30 Performance Indicators (KPI)

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

ValuesTriple3

Net sales
Operating profit¥30 billion+¥3 billion+

Market capitalization ¥30 billion+[Business] Provision of user-friendly products and services[Social] Expansion of business that leads to solutions to social issues such as environmental problems

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

Triple10

Net sales growth rate
10%+
Operating profit to net sales 10%+
ROE
10%+

VISION30 Three Strategies
Human resources
strategyMarket strategy(1) Human resource development

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

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

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

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

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

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

Medium-Term Management Plan Rolling Plan (FY2023-FY2025)
Basic policy: In Japan, we will further strengthen the value chain centered on productivity improvement, while overseas, we will steadily
bring M&A (Chicago) and facility expansion (Portland) in the US to fruition and take on the challenge of early achievementof the medium- to long-term management plan VISION30 in the final year of this three-year plan.

Numerical plan

(Million yen)
FY2022
Results(endedMarch, 2023)

Previousyear(FY2022)vs rollingplan

FY2023Plan(ending
March,
2024)

FY2024
Plan

Previousyear(FY2022)vs rollingplan(ending
March,
2025)

Previousyear(FY2022)vs rollingplan

FY2025Plan(ending
March,
2026)

VISION30
Targets

Net sales

23,575+2,07525,500+2,50027,500+2,50030,00030,000Operatingincome

1,965

(34)

2,300

+100

2,600

+100

3,000

3,000

Ordinary income

1,961

(38)

2,250

+50

2,550

+50

3,000

3,000

1,414

+74

1,500

+30

1,710

+40

2,000

2,000

8.3

(1.0)

9.0

(0.6)

9.5

(0.5)

10.0

10.0

10.7

＋0.4

10.4

0

11.0

+0.1

11.8

10.0

Net income(attributable to ourshareholders)Operating profit to net
sales ratio (%)

ROE (%)*Assumed exchange rates for planning purposes: 1USD = 130JPY, 1EUR = 140JPY

19

Medium-Term Management Plan Rolling Plan (FY2023-FY2025):
Priority Measures
VISION30 Three Strategies

Human resources strategy(Human capitalmanagement)

Measures

Content◇ Diversification of human resources and human resource development

Engagement measures to create a comfortable,
motivating, and rewarding workplace◇ Work-life balance and health support◇ Improvement of the work environment and operational environment◇ Fostering an open corporate culture◇ Renewal of domestic sales offices and maintenance shops

Domestic
sales andproduction

Strengthening the value chain centered on
productivity improvement◇ Establishment of increased production system through expansion of

suppliers and plant expansion◇ Vietnam: Breaker plant begins mass production◇ Expand productivity and improve profitability in the forestry sector◇ Deployment of manpower and commercial products to Europe andMarket strategy

Overseas
sales

Global expansion through a three-region system(US, Europe, Asia)

other bases◇ Expansion of warehousing and repair functions with the completion of
the new US headquarters◇ Expansion in Asia with the Thai subsidiary at the coreNewbusinesses& M&A

Maximizing M&A synergies in the US◇ Customer acquisition in the Chicago area, US

Strengthening governance system to support
sustainable growth

Strengthening ofmanagement foundation◇ Establishment of repair and maintenance systems in the US

Development of domestic and overseas plants,
sales offices, etc.

◇ Strengthening sustainability initiatives(Disclosure regarding TCFD recommendations is expected in June
2023)
◇ Expansion of Aiyon Tech Asaka Plant◇ Expansion of facilities in the Tokyo and Kansai areas◇ Development of technical training facilities

Development of system infrastructure and DX
initiatives◇ Review of operational systems and enhancement of security◇ Practical application of GPS attachment monitoring system

20Market Strategy: Renewal of Domestic Sales Offices
Expand factories (AIYON TECH) and sales office facilities in a structured way to increase
production and enhance maintenance function.
2022

Sendai
2021

Sales
OfficeHiroshima
Sales
Office2019

Shikoku
Sales
Office

2016
Aiyon
Tech

2022

Chubu
2020

2023
SapporoSales
Office(Scheduled for
May)

Sales
OfficeShonan
2016

Sales
OfficeHokuriku
Sales
Office21

Market Strategy: Global Expansion
We are strengthening our three-region system (US, Europe, and Asia) and focusing on acquiring ashare of the global market.

EuropeAsia

US
Okada Midwest (formerly Thoesen)2022 Made into a group company through M&A[Aim] (1) Strengthen repair and maintenance system in the US(2) Customer acquisition in the Chicago area

Createch Vina (OEM plant in Vietnam)2024 Mass production of hydraulic breakers scheduled to start[Aim] (1) Produce products of Japanese quality at reasonable prices(2) Sold to Japan, US and Europe under the common global
model
Okada Europe (Netherlands)
2020 Establishment as a sales subsidiary[Aim] (1) Develop the European market, the world's largest
market(2) Set up distributors in 31 countries in Europe

Okada America Headquarters
2023 Relocated and built new headquarters in suburban Portland[Aim] (1) Strengthen warehouse and repair and maintenancefunctions(2) Expansion of hub functionality to meet growing demand

Okada Thailand (equity method affiliate)2021 Establishment of sales company jointly with local capital[Aim] (1) Strengthening of domestic business development in Thailand(2) Roll out products sold in Thailand to Asia and the Middle
East

22

Capital Expenditures Results / Plan
We are on track to expand facilities at our sales offices and maintenance shops in Japan to accommodate larger attachments.
The Company will focus on expanding its manufacturing plants and facilities in Tokyo and Kansai, where demand is growing.

(Millions of yen)
Results
FY3/21

CapitalInvestment

Main Facilities

Rolling Plan FY2023-FY2025

FY3/22

FY3/23

1,158

2,295

Shonan Sales Office
Hiroshima Sales
OfficeHiroshima Sales
OfficeChubu Sales OfficeSendai Sales Office
Sapporo Sales
Office439

482

Depreciation andamortization

FY3/24

1,229
Aiyon Tech LandUS Headquarters
Sapporo Sales
OfficeOkada Midwest Real
Estate518

FY3/25600
US Headquarters
Sapporo Sales
OfficeFY3/26

1,200

1,200

Plans to focus on facility expansion at Aiyon
Tech's Asaka Plant, Tokyo Head Office,Headquarters, Kansai Branch, and technicaltraining facilities.

590

610

630

■ Capital expenditures ■Depreciation and amortization(Millions of yen)
2,500
2,000
1,500
2,295

1,000
500
0

1,229

1,158

1,200

439

482

518

Fiscal year ended
March, 2021
(Results)

Fiscal year ended
March, 2022
(Results)

Fiscal year ended
March, 2023
(Results)

600 590
Fiscal year ending
March, 2024 (Plan)

1,200
610

Fiscal year
ending March,2025 (Plan)

630
Fiscal year ending
March, 2026 (Plan)

23

Shareholder Returns and Dividend Policy
・The company plans to pay an annual dividend of ¥56 per share (+¥18 YoY) in fiscal year ending March, 2024, which would
result in a dividend payout ratio of 30%, three years ahead of the schedule of dividend increases announced last year.
・The company will continue to increase dividends under its progressive dividend policy based on stable business growth(dividends have increased for 14 consecutive years as of this fiscal year).

70

(Yen)

40.0%

Dividend

Dividend payout ratio

Dividend
payoutratio 30%

60
50

35.0%
30.0%

Dividend
payout ratio

21.6%

25.0%

40
20.0%
56

30

15.0%

20

38

10

18
8.5

10

22

23

FY3/16

FY3/17

24

27

28

29

10.0%

32

5.0%

12

0

0.0%
FY3/12

FY3/13

FY3/14

FY3/15

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23(Results)

FY3/24(Forecast)24

Cash Flow: Results / Plan
In the previous three years, the Company aggressively invested in facilities and M&A in preparation for business expansion. In thethree years from fiscal year ending March, 2024, the Company will continue to invest in growth while securing cash flow to recover
the investment.

Operating CF

Investment CF

Financial CF

FCF(100 million yen)

40
27.7
21.7

17.3
0.6

30

21.7

21.2

20

9.6

10

0
(1.1)
(11.2)

(6.5)

(5.9)

(2.6)

(4.4)
(11.8)(16.2)(11.5)(6.2)

Fiscal year ended
March, 2022 (Results)

Fiscal year ended
March, 2023 (Results)

3-year Results Cumulative Total

-20
-30

(25.7)
Fiscal year ended
March, 2021 (Results)-10

Fiscal year ending
March, 2024 (Plan)

Fiscal year ending
March, 2025 (Plan)

Fiscal year ending
March, 2026 (Plan)-40

Medium-Term Rolling Plan FY2023-FY2025: Cumulative
Investment CF(29)
Operating CF

Operating CF

＋24

＋60
Investment CF(53)

Financial CF(13)

Financial CF

＋27

25

Table of Contents

1.

Corporate Profile/History

2. Business Results for FY3/23
3. Forecast for FY3/24 andMid-term Management Plan
"Rolling Plan"
4.

Appendix26

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

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

Design/Repair Develop
ment

Manuf
Sales acture
Sales to excavator
manufacturers and distributors

Manufacturing by groupcompanies and subcontractors

Direct sales to end users

Manufacturing-ability does
not constrain novel ideas

We listen to customer’s needs at first hand.

27

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

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

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

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

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

28

Product Application(Demolish environment attachment)- Able to install in excavators of all domestic and overseas manufacturers[Crushers]（Pulverizers）[Crushers]（Primary Crushers）

・ Demolition of the main partof the building・ Crushing theconcrete after
primary crusher[Crushers]（Cutters）
・ Used for cutting rebar andsteel frames[Environmental Attachment (Amidas)]・Select/screen various mixtures
without straining the excavator[Grapples]
・Versatile equipment for demolition ofwooden houses, scrap lumber collection,and disaster relief breakers[Breakers]
・Major equipment in overseas,with outstanding crushing power
・However, the noise is loud.

29

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

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

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

30

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

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

31

Domestic Share of Our Major Products by Class

70.0

Primary Crushers

Share(%) 60.0

50.0

70.0

40.0

60.0

30.0

50.0

20.0

40.0
FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23

Share
(%)

70.0

30.0
FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23

Share
(%)

Pulverizers

30.0

60.0

25.0

50.0

20.0

40.0

15.0

30.0
FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23

Overall share

30 ton or overCutters

Share
80.0
(%)

Breakers

10.0
FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23

20 to less than 30 ton

Less than 20 ton

Prepared by company based on data presented by the Japan Construction Machinery Manufacturers Association (share of unit sales), as of March 31, 2023

32

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

80,00070,000

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

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

40,00030,00020,00010,000
0

-1950

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

-1970

-1980

Offices and stores

-1990

-2000

Factories and warehouses-2010

Others

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

33

Outlook for Global Market Growth
Demolition attachment market◆ CAGR (CAGR) for 2021/2025 in the key markets of the U.S., Europe, and Asia was approximately 7.0%
◆ CAGR of Japan in 2021/2025 (CAGR) was also about 6.2%.
5,000 (Million US$)EuropeNorth America

Asia (excluding China)

Japan

OthersOutlook
4,000
1,869

1,749
1,626

3,000

1,505
1,200

1,224

1,101
2,000

1,000

962
187
329

1,382
3…

1,264

1,000
193
345

210
385

228

238

425

441
581

235
446

251
487

271
545

284

299
647

700

596
653

689

490

620

721

563

470

470

534

582

550

555

588

628

636

580

632

672

712

747

781

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

0

Prepared by company based on research materials from private research companies

34

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 involve 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.okada-aiyon.com/

35