1VISION 30- Go To The Next Stage -Rolling Plan
FY3/25 to FY3/27

May 10, 2024
OKADA AIYON CORPORATION(TSE Prime Market 6294)©2024 Okada Aiyon Corporation

2

VISION 30- Go To The Next Stage -Table of Contents

Review of FY3/24: Consolidated Numerical Results

P3

Review of FY3/24: Sales Results by Segment

P4

Results Trends______

Medium-Term Management Plan Rolling Plan (FY3/25 to FY3/27)
Market Strategy_ P5-6_ P7-11______

Capital Expenditures: Results/Plan_ P12-13_ P14

Shareholder Return and Dividend Policy_______P15

Cash Flow: Results/Plan_______P16

Productivity of Invested Capital: Results/Plan______ _P17

Business Portfolio_______P18

Reference 1: Framework of the Long-term Vision VISION 30_______P19

Reference 2: Assumptions for Investment Capital Productivity Results and Planning P20©2024 Okada Aiyon Corporation

Review of FY3/24: Consolidated Numerical Results

3

In Japan, the demand for demolition crushers and forestry machinery was healthy, and outside Japan, we
took advantage of the M&A in North America and the yen depreciation. As a result, sales and profit hit arecord high for the third consecutive fiscal year.

(Millions of yen)

Results

Year-on-year
Change rates(%)

Vs initial
forecast(May 11,2023)

Achievement
rate
(%)

Vs revised
forecast(November
10, 2023)

Achievement
rate
(%)

27,095

3,520

14.9

1,595

6.3

595

2.2

Operating profit

2,719

754

38.4

419

18.3

69

2.6

Ordinary profit

2,814

853

43.5

564

25.1

164

6.2

Profit attributable toowners of the parent

1,886

472

33.4

386

25.8

156

9.1

Net sales*Actual exchange rates (average): 1 USD = 145 JPY, 1 EUR = 157 JPY©2024 Okada Aiyon Corporation

4

Review of FY3/24: Sales Results by Segment
Results for
FY3/24
Demolition
environment
attachment

Forestry, largescale environment,
cable crane, etc.

Repair andreplacement
materials

Domestic
segment

Year-on-year

Changerates

Comments(Millions of yen)

(Millions of yen)(%)

12,754949

8.0

 The sales of crushers grew 8.6% thanks to the healthy demand and the increase inproduction output.
 The sales of hydraulic breakers were almost unchanged, but our market share improved.
 The sales of gripples increased 20.5%, because the problem of shortage of components
was resolved.

3.1

 The sales of forestry machinery increased 47.5%, thanks to the good performance of thehigh-performance forestry machinery “OHB*.” The sales of large-scale environment machinery rose 35.0%, as the turnaround time forimport improved to some extent.
 The sales of cable cranes dropped 30.2%, because there was no longer special demand
for them as in the previous year for constructing a large dam, but the demand for themfor hydroelectric power plants remained healthy.

13.9

 Development of the systems through renewal of the sales offices (and maintenanceshops) has been successful.
 In addition to our own sales offices, the Company has designated service maintenanceshops throughout Japan to complement its after-sales service system.

7.9

 Our manufacturing capacity is improving gradually, as the problem of shortage ofcomponents was resolved and we secured partner companies.
 The augmentation of manufacturing costs was offset by the increase of our prices, so
profit margin was maintained.
 We are addressing the problems with cost management, inventory, etc. to improve
productivity.

4,219

3,274

20,249

125

399

1,474

Overseassegment

6,846

2,045

42.6

 The sales in North America grew 63.0%, thanks to the enhancement of our marketingsystem and the effects of M&A.
 In Europe, sales increased 13.7%, as distributors increased although market sloweddown.
 In Asia, sales declined 3.0%, due to the market stagnation and the fierce price-cutting
war.

Total of domestic
and overseas
segments

27,095

3,520

14.9

 As we met the demand for demolition and forestry in Japan and took advantage of M&A
in North America, sales and profit hit a record high for the third consecutive fiscal year.

*OHB = Okada Hybrid Bucket (an attachment for a feller buncher for logging and gathering lumber)©2024 Okada Aiyon Corporation

Results Trends“VISION 30” is the medium- to long-term management plan launched in FY3/22.

(100 million yen)

Net sales120

178 179 175
153
131

5

*“Arch 2020” was the medium- to long-term management plan from FY3/16 to FY3/21.

203

235

Operating profit(100 million yen)

270

27.1

7.6

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

11.0 11.9

15.2 13.6 13.7

17.7 19.6

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

VISION 30

Arch 2020

Ordinary profit

Profit attributable to(100 million yen)(100 million yen)owners of the parent

18.8

28.1

7.2

10.9 12.7

15.6 13.4 14.3

18.0 19.6
4.3

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

6.9 6.6

10.0 8.8 9.1

11.9

14.1

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24©2024 Okada Aiyon Corporation

6

Results Trends
VISION 30
Targets:

Net sales growth rate

Operating profit to
net sales ratio

10% orover

10% orover(%)

17.4 16.0

15.4 16.1 14.9
6.3

8.9
0.8

VISION 30
Targets:

8.7 8.3
8.4 7.8 8.5
7.6 7.8

10.0(%)

0.5-2.0

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

VISION 30
Targets:

VISION 30
Targets:

ROE

over

25.3

(%)

9.8
6.5

10.2
7.9

8.5 8.3

10.0 10.7

12.6

(%)

20.4

19.2
16.0

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

30%

Overseas sales ratio

10% or

17.9 17.1

16.6 16.5

17.9

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24©2024 Okada Aiyon Corporation

7

Medium-Term Management Plan Rolling Plan (FY3/25 to FY3/27)
In the coming three years, we will respond to the healthy demand and concentrate on the expansion of our market share inside and outside

Japan to secure stable growth, and strengthen our marketing system further, increase the output and productivity of the manufacturing sector,
improve the engagement of employees, and take other measures, with the aim of achieving the stable growth and improving the quality ofour business. We plan to review and revise “VISION 30 Targets” after achieving the target sales of 30 billion yen.
(Millions of yen)

Numerical plan

(Reference)

FY3/24
Results

Year-on-year

FY3/25Plan

Year-on-year

FY3/26
Plan

Year-on-year

FY3/27
Plan

Year-on-year

VISION 30
Targets

Net sales

27,0953,520

28,5001,404

30,0001,500

32,0002,000

30,000Operating profit

2,719

754

2,900

180

3,100

200

3,400

300

3,000

Ordinary profit

2,814

853

2,900

85

3,100

200

3,400

300

3,000

Profit attributable toowners of the parent

1,886

472

1,980

93

2,110

130

2,320

210

2,000

10.0

1.7

10.2

0.2

10.3

0.1

10.6

0.3

10.0

12.6

1.9

11.8

(0.8)

11.6

(0.2)

11.8

0.2

10.0

Operating profit (%)
to net sales ratio
ROE

(%)

*Assumed exchange rates for planning purposes: 1 USD = 140 JPY, 1 EUR = 150 JPY©2024 Okada Aiyon Corporation

Medium-Term Management Plan Rolling Plan (FY3/24 to FY3/26): Priority Measures

VISION 30 Three Strategies(1) Human
resources
strategy

We aim to create “a comfortable, motivating, and rewarding
workplace,” by pursuing diversity, reforming workstyles, andrevising our personnel system.

We will strive to strengthen our value chain further, by revising
our marketing system, increasing production output, and(2) Market strategy

improving productivity in Japan, and by strategicallydispatching personnel and products to the U.S., Europe, andother Asian countries.

(3) Strengtheningof managementfoundation

We will strive to strengthen our management foundation thatwill support sustainable growth, by promoting ESG-oriented
business administration and reforming business processes,
including systematization and DX infrastructure.

©2024 Okada Aiyon Corporation

8

Three-year Rolling Medium-Term Management Plan:
Priority Measures
VISION 30 Three Strategies

1. Recruitment,
training andutilization ofhuman
resources

Measures for FY3/22 to FY3/24
 Adoption of flexible recruitment models
Year-round recruitment of new graduates, recruitment ofworkers who will work in a limited area, referral-based
recruitment, and reemployment of former employees
 To increase the ratio of female employees fresh out ofcollege to improve the ratio of female employees(Ratio of female employees as a KPI: 13% → 25% by 2030)
Ratio of female employees fresh out of college: 40% for
employees who joined the Company in 2024
 Start of an in-company job posting system
Posting of job opportunities in the overseas section(1) Human
resources
strategy(Human capitalmanagement)

 To raise wages and improve the system for reemploying
seniors
To increase base salaries and the basic salaries for
employees fresh out of college
To make it possible to reemploy seniors until they turn 70
years old

2. Personnel
system To adopt a new evaluation system in group companies inJapan
Adopted in the subsidiary Nansei machine To identify problems with our personnel system while
consulting with external consultants
External consultants assessed our personnel system.

3. Workstylereform andengagement

9
Measures for FY3/25 to FY3/27
and Numerical Plan

 Recruitment of more non-Japanese people andexperienced personnel
Further diversification of recruitment methods
 To increase the ratio of female employees and promote
them to executive posts
To keep the ratio of female employees fresh out of college30%
 To assign personnel while considering their career paths
and goals
Adoption of a system for advancing career To improve the treatment of employees in the entire
corporate group, including subsidiaries
To unify personnel and salary systems in the domestic group
 To address problems with our grading and wage systems,
allowances, etc.
To work on the problems pointed out by external consultants
 To address problems with our personnel evaluation
system
To work on the problems pointed out by external consultants

 Start of a questionnaire survey regarding the level ofhappiness
Conducted every year since 2022.

 To improve the scores for the level of happiness in thequestionnaire survey
To improve the scores for the happiness level (our standards)
by 10 points or more Workstyle reform reflecting the results of a questionnairetargeted at employees
Extracted 30 problems from freely written opinions, and weare dealing with them.

 To continue measures for workstyle reform
To address the problems with the questionnaire targeted at
employees

 To upgrade whistleblowing and consultation desks
To establish a “consultation desk for any matters” outside thecompany

 To discuss and implement measures for improving ourcorporate culture
To deal with reports and inquiries and implement
improvement measures©2024 Okada Aiyon Corporation

10

Three-year Rolling Medium-Term Management Plan:
Priority Measures
VISION 30 Three Strategies

Measures for FY3/25 to FY3/27
and Numerical Plan

Measures for FY3/22 to FY3/24

 To upgrade the facilities of sales offices in response to
the enlargement of attachments

 To brush up our capability of attending to customers byreforming our marketing structure
To integrate the marketing sections of the Company andNanseikikai, to strengthen the forestry sector
We established new sales offices in Kumamoto in 2024 and plan toestablish in the northern Kanto region in 2025.

To establish 4 new sales offices in Hiroshima, the Chubu region,
Sendai, and Sapporo

1. Domestic
strategy

 To strengthen our structure for boosting the production
output of crushers

 To establish a structure for increasing the production
output of Aiyon Tech Asaka Plant (cast steel products)
To increase the production output of cast steel components incooperation with partner companies

To secure and increase suppliers and partner companies of cast steel
components

 To release new products
To develop and release a product (OHB), which is unprecedented inthis industry

 To enhance the productivity of Kumamoto Plant ofNanseikikai (forestry machinery)
To improve and systematize the management of costs andmanufacturing

 To enrich the lineup of new forestry machinery(2) Market
strategy

 To relocate and expand the headquarters in the U.S.
To adapt to the expansion of the U.S. market by increasing
warehouses and expanding repair functions

2. Overseas
strategy

 To cultivate markets after establishing subsidiaries in
EuropeTo expand our business by increasing distributors (80 distributors as ofnow) To establish a joint-venture company in Thailand

 To bring out the effects of cooperation between Okada
America and Okada Midwest
To maximize the effects of M&A

 To cultivate markets by increasing our footholds
To dispatch our personnel and products to the footholds in the U.S.,
Europe, and other Asian countries

 To secure overseas production bases

We are concentrating on the cultivation of the Thai market and thedevelopment of products targeted at emerging countries.

To jointly build a plant for hydraulic breakers in Vietnam with an OEM

 To continue the integration process after the acquisitionof Okada Midwest

3. Newbusinesses
and M&A

To enhance our marketing capability to achieve a CAGR of 10%
To strengthen our management foundation, including personnel,
accounting, and systems

 M&A in Chicago, the U.S. (Okada Midwest)
To attract end users around Chicago and acquire the maintenancefunction

 To discuss the next M&A, which would help improve ourcorporate value©2024 Okada Aiyon Corporation

11

Three-year Rolling Medium-Term Management Plan:
Priority Measures
VISION 30 Three Strategies

1. CG system
and ESGoriented
business
administration

Measures for FY3/22 to FY3/24
 To respond to the reform of the markets of theTokyo Stock Exchange
Satisfied the criteria for remaining listed on the Prime
Market at the end of FY3/24.
PBR at the end of FY3/24: 1.58
Started disclosing the results and targets of indicators ofcapital costs and capital productivity

 Disclosure of more information on sustainability
Opened a website focused on sustainability, identified
material issues, followed the recommendations of
TCFD, calculated Scope 3 CO2 emissions, andanswered the CDP climate change questionnaire.

Measures for FY3/25 to FY3/27
and Numerical plan To improve capital productivity
To keep ROE 11.5% or higher
To keep ROIC 7.5% or higher

 To improve the CDP score (environment)
To improve the CDP score (climate change) from B- in 2023
to B or higher
 To improve the ratio of female outside directors
14% as of now → 25% or higher

 To develop sales offices in Japan(3)
Strengtheningof managementfoundation

2. Hardware(capital
expenditures) Development of sales offices in Japan
Relocated or established Hiroshima, Sendai, andSapporo Offices, and rebuilt Chubu Office Enlargement of the U.S. headquarters (Portland,
Oregon)Acquired real estate and relocated the U.S.
headquarters, building a new office while doubling its
size.

To relocate and establish Kansai Branch, and establish
Kitakanto Sales Office (provisional name) To rebuild the headquarters, and establish a
training center
To improve the environment and enhance training

 To enlarge the plant of Aiyon Tech
To establish a system for increasing production output andimprove productivity

 To develop and install a new mission-criticalsystem

3. Software(system andDX)

 To improve system infrastructure
 To reinforce system security

To stabilize the system and rationalize/streamline business
operations

 To reform/install business operation systems
Systems for managing parts and costs

 To put O-ATTA (GPS-based operation management
system) into practice©2024 Okada Aiyon Corporation

23

12

Market Strategy: Renewal of Domestic Bases
The plant (Aiyon Tech) and sales office facilities are being systematically expanded to increase production and enhancemaintenance.

We plan to upgrade equipment in a planned manner, to grow further in the coming three years.

2016
Aiyon
Tech

2016
Hokuriku
Sales
Office2019
Shikoku
Sales
Office2020
Shonan
Sales
Office2021
Hiroshima
Sales
Office

2022
Chubu
Sales
Office2022
Sendai
Sales
Office2023
SapporoSales
OfficeFY3/25 to FY3/27
Plan
2025
Kansai
Branchto berelocated

2025(Provisional
name)Kitakanto
Sales Office
to beestablished

2026
Headquarters
to be partly
rebuilt

2026
Aiyon Tech
to beexpanded©2024 Okada Aiyon Corporation

13

Market Strategy: Global Expansion

We are strengthening our three-region system (the U.S., Europe, and Asia) and focusing on acquiring a share on the global market.

EuropeAsia and otherregions

The U.S.

Establishment of the subsidiary Okada Europe in2020
We will strive to secure our share in the largest market
by dispatching personnel to major countries andproducts targeted at Europe.

Establishment of Okada Thailand with a joint-venture
partner in 2021
We will strive to secure our share in the growing
market, by distributing products targeted at emerging
countries, which were developed in Thailand.

Acquisition of Thoesen (present: Okada Midwest) in
2022
We will strive to enhance the effects of cooperation
through M&A, increase the sales of Okada Midwest,
and promote the sale of crushers of Okada America.

Sales results and plan

Sales results and plan

2,000

1,700

1,500
1,017
1,000
500
0

Millions of yen

1,156

1,500

718
362

479

500
0

FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

FY3/27

6,000

6,000

1,300
872
768 828

1,000
469

Sales results and plan Millions of yen

Millions of yen

4,000

580

2,000

FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

4,817

0

FY3/27

2,955
2,153 1,839 2,158

FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

FY3/27

Overseas segments: Sales and operating profit results/plan
Millions of yen

Millions of yen

10,000

Sales

Operating profit
6,846

7,240

9,000

2,000

1,200

1,000

8,000

4,801

5,000

2,985

2,899

337
308
020/3 21/3 22/3 23/3 24/3
FY3/20 (results)

FY3/21 (results)

3,645
907
418

910

32621/3 22/3 23/3 24/3
20/3

FY3/22 (results)

FY3/23 (results)

FY3/24 (results)

1,050

20/3 21/3 22/3 23/3 24/3
0
FY3/25 (plan)©2024 Okada Aiyon Corporation

FY3/26 (plan)

FY3/27 (plan)14

Capital Expenditures: Results/Plan

We have expanded facilities at our sales offices and maintenance shops in Japan to accommodate larger attachments to some extent.
In the coming three years, we plan to improve sales offices in Kanto and Kansai regions, where demand is healthy, and upgrade theequipment at factories, the headquarters, and a training center.

(Millions of yen)

Results
FY3/22
Capitalexpenditures
Main facilities

FY3/24

2,295

1,229

954

Hiroshima Sales Office
Chubu Sales OfficeSendai Sales Office
Sapporo Sales Office

Aiyon Tech LandUS Headquarters
Sapporo Sales Office
Okada Midwest Real
EstateAiyon Tech LandUS Headquarters
Sapporo Sales Office
Okada Midwest Real
Estate

482

518

634

Depreciation andamortization

2,500

FY3/23

Rolling Plan FY3/25 to FY3/27■Capital expenditures(Millions of yen)

FY3/251,700

FY3/261,500

FY3/27
1,500

Relocation and establishment of Kansai Branch
Establishment of Kitakanto Sales Office (provisional name)
Rebuilding and expansion of the headquarters and training center
Expansion of Aiyon Tech plant

660

690

710

■Depreciation and amortization

2,000

1,500
1,000

2,295
1,700
1,229

500
482

0

FY3/22(Results)

954
518

FY3/23(Results)

660

634

FY3/24(Results)

1,500

FY3/25(Plan)©2024 Okada Aiyon Corporation

1500

690
FY3/26(Plan)

710
FY3/27(Plan)

15

Shareholder Return and Dividend Policy

Under the dividend policy aimed at a dividend payout ratio of 30%, we plan to pay an annual dividend of ¥70 per share, up ¥32 per share year on year
(up ¥14 per share from the initial forecast announced in May 2023 and up ¥5 per share from the revised forecast announced in November 2023), for
FY3/24. The annual dividend for FY3/25 is expected to be ¥74 per share, up ¥4 per share year on year.
The company will continue to increase dividends under its progressive dividend policy based on stable business growth (dividends have increased for 15
consecutive years as of this fiscal year).
(Dividend: yen)

(Dividend payout ratio: %)Dividend
payout ratio

80

Dividend70

Dividend payout ratio

Dividend
payout ratio 30.0%

35.0%

29.8%

60

30.0%

50

25.0%
20.0%

40
70

74
15.0%

30
20
10
8.5

10

12

18

22

24

23

27

28

29

32

10.0%

38

5.0%

0

0.0%
FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21©2024 Okada Aiyon Corporation

FY3/22

FY3/23

FY3/24(plan)

FY3/25(forecast)

16

Cash Flow: Results/Plan
In the previous three years, the Company aggressively invested in facilities and M&A in preparation for business expansion. In the three

years from fiscal year ending March, 2025, the Company will continue to invest in growth while securing cash flow to recover the investment.

Operating CF

Investment CF

Financial CF

Free CF(100 million yen)

40
27.7

29.8

27.2

25.6

30

20.0

8.6

7.1

9.7

(6.5)

14.8

12.2

10

3.8

0

(1.1)
(6.6)
(16.2)(5.5)(12.9)(25.7)(17.0)(8.2)(15.0)(15.0)(9.3)

FY3/23(Results)

-10
-20

-30

(32.3)
FY3/22(Results)

20

FY3/24(Results)

3-year Results
Cumulative Total

FY3/25(Plan)

FY3/26(Plan)

FY3/27(Plan)

Medium-Term Rolling Plan FY3/25 to FY3/27: Cumulative

Investment CF
Operating CF

Operating CF

+83

+23
Investment CF

Financial CF

(54)

+30

©2024 Okada Aiyon Corporation(47)

Financial CF

(23)

-40

17

Productivity of Invested Capital: Results/Plan*Based on our calculations
Figures are calculated based on simplified calculations for the purpose of understanding trends. Please refer toReference 2 on page 20 for the assumptions used in calculating the figures.

Rolling Plan FY3/25 to FY3/27(100 million yen)

FY3/22 (Results)

FY3/24 (Results)

FY3/25 (Plan)

FY3/26 (Plan)

FY3/27 (Plan)

277

290

187

262

303

232

103

102

61
125

102

100

92
139

159

174

188

202

Invested CapitalInterest-bearing debt

Capital stock

FY3/23 (Results)(100 million yen)

NOPAT(Net operating profit
after tax)

ROIC

12.2

6.77

(Return on invested capital)

WACC

4.36

13.6

18.8

20.0

21.4

23.5

7.58

7.41

7.53

7.90 (%)

4.70

4.97

5.03

5.13

6.47
(%)

3.67

(Weighted average cost ofcapital)ROIC - WACC

(%)

2.41

2.80

2.88

2.44

2.49

2.77
(100 million yen)

Economic added value(Invested capital x[ROIC - WACC])

4.4

5.9

7.1

6.6

©2024 Okada Aiyon Corporation

7.1

8.2

18

Business Portfolio
Image of Business Portfolio Growth Through Execution of VISION 30

Demolition environment attachments and repair and replacement materials expanded while maintaining current business positions.
We will strengthen competitiveness in overseas and in the forestry and large-scale environment machinery sectors.

FY3/21

FY3/24

FY3/31

High

High

High

Repair andreplacement materials

The U.S.

Demolition
environment attachment

EuropeEuropeThe U.S. replacement materials

Demolition
environment attachment

EuropeLarge-scale
environment

Low

Asia

Share

High

Asia

Cable craneCable crane
Asia

Low

Repair andRepair and

The U.S. replacement materials

Large-scale
environment

Share

ForestryHigh

Demolition
environment attachment
Cable craneLarge-scale environment

Forestry

Low

Share

High

Forestry

Profitability
LowWe have the largest share in the Japanese market of
demolition environment attachment, which areprofitable.
Regarding overseas business, the business in the
U.S. is profitable, but it is necessary to develop
products, personnel, and after-sales service systems.
Our share and profitability in the market of forestry
machinery need to be improved. The market of cablecranes is occupied by two competitors.
In this industry, only the Company has the after-sales
maintenance section for repair and replacement
materials, and this business is profitable.

Profitability
Low

Profitability
LowWe brushed up our capability of attending tocustomers by renovating sales offices.

We improved our positions in the U.S. and Europe,
through the M&A of the maintenance business in the
U.S. and the expansion of sales in Europe.
We improved our position in forestry, by releasing thehighly-functional forestry machinery OHB.
We enhanced our services for large-size attachmentsby renovating sales offices.

For demolition environment attachment, we will strive togrow sales by increasing production output andstrengthening our marketing structure, while maintaining
our strengths.
We will dispatch our products and personnel while
maintaining or improving the profitability of the overseas
section, to expand our market share.
We will strive to integrate the marketing operations of theforestry sector, improve productivity, and enhance thecompetitiveness of our large-scale environment machinery.
We will maintain the system for repair and replacement
materials, and strive to expand our business while entering
the forestry field.

©2024 Okada Aiyon Corporation

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Reference 1: Framework of the Long-term Vision VISION 30
Framework of VISION 30
VISION 30 Statement

SloganVISION 30 Performance Indicators (KPI)

TriplePeople create an environment

3[Corporate culture] Respect for the individual, free-spiritedness, and a sense of unity

Values

Net sales¥30 billion or over

Operating profit¥3 billion or overMarket capitalization ¥30 billion or over[Business] Provision of user-friendly products and services

Triple[Social] Expansion of business that leads to solutions to social issues such as environmental problems

Net sales growth rate

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.

10

10% or over

Operating profit to net sales ratio 10% or overROE

10% or over

VISION 30 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) Workstyle 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 U.S.,
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
responsiveness©2024 Okada Aiyon Corporation

Reference 2: Assumptions for Investment Capital Productivity Results and Planning20(1) Cost of Shareholders’ Equity
Cost of shareholders’ equity = Risk-free rate + Risk premium x β (beta) [Collection period = Risk premium: since 1960, β: weekly for the
past 2 years]
End of FY3/22

End of FY3/23

End of FY3/24

After FY3/25

6.4%

5.5%

6.4%

6.4%

Risk-free rate*

0.04%

0.14%

0.73%

-

Risk premium

6.20%

6.08%

6.40%

-

β (beta)

1.03

0.88

0.89

-

Cost of shareholders' equity*(*) Cost of shareholders’ equity: Capital cost as of the end of FY3/24 will be used for FY3/25 and thereafter.
Risk-free rate: For the values in the end of FY3/24, 10-year government bond rate is used while referring to themonthly average of FY3/24.

(2) NOPAT (Net Operating Profit After Tax)NOPAT = Operating profit x (1 - effective tax rate) [Effective tax rate = fixed at 31%]
(Effective tax rate has been revised from the rate in the previous year, considering the recent results.)(3) ROIC (Return on Invested Capital)
ROIC = NOPAT/Invested capital (debt + equity) [Debt = book value basis, equity = book value basis](4) WACC (Weighted Average Cost of Capital)
WACC = Cost of debt x (1 - effective tax rate) x Debt/(debt + equity) + Cost of shareholders’ equity x Equity/(debt + equity)[Debt = book value basis, equity = market value basis; share price from FY3/25 onwards is estimated based on the forecasted PER(14.6) at the end of FY3/24]©2024 Okada Aiyon Corporation

21

The plans and forecasts contained in this report are based on information currently
available to the Company and certain assumptions deemed reasonable by theCompany, and are subject to risks and uncertainties.

As such, the Company does not promise or guarantee the realization of any future
plan figures or measures shown in this report.

For inquiries, please contact:
Okada Aiyon Corporation
Corporate Planning Office
TEL: 06-6576-1271
FAX: 06-6576-1270
URL: http://www.okada-aiyon.com/©2024 Okada Aiyon Corporation