１VISION 30- Go To The Next Stage -Rolling Plan
FY2023－FY2025

May 11, 2023
OKADA AIYON CORPORATION(TSE Prime Market 6294)©2023 Okada Aiyon Corporation

２VISION 30- Go To The Next Stage -Table of Contents

Review of FY2022 (Ended March, 2023) Consolidated Numbers Results_____ _ P3

Review of FY2022 (Ended March, 2023) Sales Results by Segment
Results Trends_ P4______

Medium-Term Management Plan Rolling Plan (FY2023-FY2025)
Market Strategy_ P5-6

_ P7-8______

Capital Expenditures: Results / Plan

_ P9-10_ P11

Cash Flow: Results / Plan_______P12

Shareholder Return and Dividend Policy_______P13

Productivity of Invested Capital: Results / Plan______ _P14

Business Portfolio_______P15

Reference 1: Framework of the Long-term Vision VISION30_______P16

Reference 2: Assumptions for Investment Capital Productivity Results and Planning P17©2023 Okada Aiyon Corporation

Review of FY2022 (Ended March, 2023) Consolidated Numbers Results

３・The Company responded to increased demand in Japan and overseas, and achieved record-high sales and profits for the second consecutive year. Forsales, it achieved the previous year's medium-term rolling plan one year ahead of schedule.
・Profits fell short of the revised forecast due to increased burden of the ongoing cost increases and a one-time increase in M&A expenses (¥130 million).
Due to a gain on the sale of real estate (¥114 million), net income fell only slightly short of the revised forecast.

(Millions of yen)
Vs initial
forecast(May 12,2022)

Achievement rate（%）

Vs revisedforecast(November11, 2022)

Achievement rate（%）

ResultsYear-onyear

23,575+3,268

16.1+2,075

109.7＋1,075

104.8

Operating profit

1,965+193

10.9(34)

98.3

(99)

95.2

Ordinary profit

1,961+152

8.4(38)

98.1

(166)

92.2

Profit attributable toowners of the parent

1,414+223

18.8+74

105.5

(10)

99.3

Net sales

Changerates（%）*Actual exchange rates (average): 1USD = 135JPY, 1EUR = 141JPY©2023 Okada Aiyon Corporation

Review of FY2022 (Ended March, 2023) Sales Results by Segment 4

Demolition environment
attachment

Forestry, large-scale
environment, cablecrane, etc.

Repair and replacement
materialsDomestic Segment

Overseas Segment

Results for
FY3/23Year-onyear(Millions of yen)

(Millions of yen)

11,804

4,094

2,875

18,774

4,801

1,096

737

279

2,112

1,155

Changerates

Comments

(%)

10.2

〇 Sales of mainstay crushers were strong, supported by robust demand for demolition
equipment.
〇 In-house production of crushers and other equipment was up 16% year-on-year.
△ The price of raw materials continues to rise, and efforts are being made to pass this onto the pricing.

22.0〇 Forestry machinery: Sales increased steadily due to the launch of high-performance
forestry machinery Okada Hybrid Bucket, among other factors.
× Large-scale environment machinery: Sales decreased due to prolonged delivery time
for imports.
〇 Cable cranes: Sales increased significantly due to demand for large dam construction
and hydroelectric power plant refurbishment.

10.8〇 Strengthening of the systems through renewal of the sales offices (and maintenanceshops) has been successful (see p. 9 ).
〇 In addition to our own sales offices, the Company has designated service
maintenance shops throughout Japan to complement its after-sales service system.

12.7〇 Demand is strong and backlogs are expanding. Production is being increased to copewith the situation.
△ The company is currently working on issues related to cost control, inventory control,and product price shift to further secure commercial materials, as well as in response
to increased raw material prices, and longer procurement and delivery times.

31.7〇 Sales increased in all three regions due to strong demand and system development.
〇 US: Sales reached an all-time high as the sales system was developed.
Going forward, the Company will focus on maximizing the M&A effects.
〇 Europe: Gained market share steadily thanks to the successful development ofdistributors.
〇 Asia: Gradually recovering thanks to the introduction of new products at affordableprices.

©2023 Okada Aiyon Corporation５Results Trends* "Arch 2020" was the medium- to long-term management plan from FY2015 (ended March, 2016) to FY2020 (ended March, 2021).
"VISION30" is the medium- to long-term management plan launched in FY2021 (ended March, 2022).

(100 millionyen)

Net sales

120131

FY3/16

FY3/17153

178179175

FY3/18

FY3/19FY3/20FY3/21

FY3/2210.9 12.7

15.6

FY3/23

FY3/16

FY3/18

FY3/19FY3/17

FY3/1815.2 13.6 13.7

FY3/19FY3/20FY3/21

FY3/22

FY3/2313.4 14.3

Profit attributable to owners of the parent(100 millionyen)(100 millionyen)

18.0 19.6

10.04.3

FY3/1711.0 11.9

17.7 19.6

VISION30

Ordinary profit

FY3/16235203

7.6

Arch 2020

7.2

millionOperating profit (100yen)

FY3/20FY3/21

FY3/22

FY3/23

FY3/166.96.6

FY3/17

FY3/18©2023 Okada Aiyon Corporation

FY3/1911.98.89.1

FY3/20FY3/21

FY3/2214.1

FY3/23

６Results Trends
VISION30
Targets

Net sales growth rate

VISION30
Operating profit to net sales ratio Targets

10%+
17.410%+(%)(%)

15.4 16.1

16.0

8.4

7.8

6.3

8.9

8.5

7.6

7.8

8.7

8.3

0.5

0.8

-2.0
FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22

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

VISION30
Targets

ROE

Overseas sales ratio

10%+

VISION30
Targets30％(%)

6.5

10.0 10.7

10.2

9.8
7.98.5(%)
20.4

19.2
17.98.3
16.0

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

17.1 16.6 16.5

17.9

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21 FY3/22 FY3/23©2023 Okada Aiyon Corporation

Medium-Term Management Plan Rolling Plan (FY2023-FY2025)

７

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

(Millions of yen)

FY2022
Results(endedMarch,2023)

Previous year
(FY2022)

FY2023
Planplan(endingMarch,2024)

vs rolling

FY2024
Plan

Previous year
(FY2022)plan(endingMarch,2025)

vs rolling

Previous year
(FY2022)

FY2025
Planplan(endingMarch,2026)

vs rolling

VISION30
Targets

Net sales

23,575+2,075

25,500+2,50027,500+2,50030,000

30,000Operatingprofit

1,965(34)2,300+100

2,600+100

3,000

3,000

Ordinary profit

1,961(38)

2,250

+50

2,550+50

3,000

3,000

Profit attributable to1,414+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

owners of the parent

Operating profit to net
sales ratio (%)

ROE

(%)

*Assumed exchange rates for planning purposes: 1USD = 130JPY, 1EUR = 140JPY©2023 Okada Aiyon CorporationMedium-Term Management Plan Rolling Plan (FY2023-FY2025): Priority Measures ８
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 ofsuppliers 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

Overseassales

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

other bases◇ Expansion of warehousing and repair functions with the completion ofthe new US headquarters◇ Expansion in Asia with the Thai subsidiary at the core

Newbusinesses& M&A

Maximizing M&A synergies in the US◇ Customer acquisition in the Chicago area, USStrengthening 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 June2023)◇ 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©2023 Okada Aiyon CorporationMarket Strategy: Renewal of Domestic Sales Offices
The plant (Aiyon Tech) and sales office facilities are being systematically expanded to accommodate
increased production and enhanced maintenance.
2022

Sendai
2021

Sales
OfficeHiroshima
Sales
Office2019

Shikoku
Sales
Office2016
AiyonTech

2022

Chubu
2020

Shonan
2016

Sales
OfficeHokuriku
Sales
Office©2023 Okada Aiyon Corporation

Sales
Office2023
SapporoSales
Office(Scheduled forMay)

９１０

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 largestmarket(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©2023 Okada Aiyon Corporation

１１Capital 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
Office439482

Depreciation andamortization

FY3/24

1,229
Aiyon Tech LandUS Headquarters
Sapporo SalesOfficeOkada Midwest RealEstate

FY3/25600
US Headquarters
Sapporo SalesOffice518

FY3/26

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

610630■ 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 endingMarch, 2024 (Plan)©2023 Okada Aiyon Corporation

1,200610

Fiscal yearending March,2025 (Plan)

630
Fiscal year ending
March, 2026 (Plan)

１２Cash 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 CFFCF(100 million yen)

40
27.7
21.7

17.3
0.6

30

21.7

21.2

20

9.6100(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)

Fiscal year ending
March, 2024 (Plan)

Fiscal year ending
March, 2025 (Plan)

Fiscal year ending
March, 2026 (Plan)

Medium-Term Rolling Plan FY2023-FY2025: Cumulative

3-year Results Cumulative Total

Investment CF(29)Operating CF

Operating CF＋24＋60
Investment CF(53)-20-30(25.6)
Fiscal year ended
March, 2021 (Results)-10

Financial CF＋27©2023 Okada Aiyon CorporationFinancial CF(13)-40１３Shareholder 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%

605035.0%
30.0%

Dividend
payout ratio

21.6%

25.0%

4020.0%
56

30

15.0%

2038

10188.5102223

FY3/16

FY3/1724272829

10.0%

32

5.0%

1200.0%FY3/12

FY3/13

FY3/14

FY3/15

FY3/18

FY3/19FY3/20©2023 Okada Aiyon Corporation

FY3/21

FY3/22

FY3/23(Results)

FY3/24(Forecast)１４

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 17 for the assumptions used in calculating the figures.

Rolling Plan FY2023-FY2025(100 million yen)

FY3/21 (Results)

Invested CapitalInterest-bearing debt

Capital stock

FY3/22 (Results)

174

187

60

61

113

125

FY3/23 (Results)

FY3/24 (Plan)

FY3/25 (Plan)

FY3/26 (Plan)

232

245

259

273

92

95

97

98

139

149

161

175
(100 million yen)

NOPAT(Operating profit after tax)

ROIC(Return on invested capital)

9.0

11.5
6.37

(Weighted average cost ofcapital)

15.016.9
6.69

6.09

6.26

3.67

3.60

3.65

2.66

3.04

4.68

2.02

ROIC－WACC

2.42

0.61

7.32 (%)

1.0

3.80(%)
3.52 (%)(100 million yen)

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

19.5

5.30
4.36

WACC

12.8

3.6

5.1

6.3

©2023 Okada Aiyon Corporation

7.7

9.4

１５

Business Portfolio
Image of Business Portfolio Growth Through Execution of VISION30
Demolition environment attachments and repair and replacement materials expanded while maintaining current businesspositions.
We will strengthen competitiveness in overseas and in the forestry and large-scale environment machinery sectors.

FY2022

FY2030

HighHigh
Overseas

Repair and replacement materials

Repair and replacement materials

Overseas
Demolition environment
attachment

Demolition environment
attachment

Cable craneLowLarge-scale
environment

Share
High

Share
Low

Forestry

Forestry, large-scale
environment, etc.

Forestry, large-scale
environment, etc.

Low
Profitability

Low
Profitability©2023 Okada Aiyon CorporationHighReference 1: Framework of the Long-term Vision VISION30

１６Framework of VISION30
VISION30 Statement

SloganVISION30 Performance Indicators (KPI)

TriplePeople create an environment

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

Values

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

Market capitalization ¥30 billion+[Business] Provision of user-friendly products and services

Triple[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.

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

VISION30 Three Strategies
Human resourcesstrategy

Market 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
responsiveness©2023 Okada Aiyon Corporation

Reference 2: Assumptions for Investment Capital Productivity Results andPlanning

１７(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 thepast 2 years]
FY3/21

FY3/2

FY3/23

FY3/24
(*)

7.5%

6.4%

5.5%

5.5％

Risk-free rate

0.04％

0.04％

0.14％

－

Risk premium

6.10%

6.20%

6.08%

－β (beta)

1.22

1.03

0.88

－

Cost of shareholders'equity(2) NOPAT (Net Operating Profit After Tax)(*) For fiscal year ending March 2024 and onwards, cost of capital as of the endof fiscal year ended March 2023 will be used.

NOPAT = operating profit x (1 - effective tax rate) [effective tax rate = fixed at 35%]

(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 fiscal year ending March, 2024 onwards is estimated basedon the forecasted PER = 10.1 at the end of fiscal year ended March, 2023]©2023 Okada Aiyon Corporation

１８The 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/©2023 Okada Aiyon Corporation