OKADA AIYON CORPORATION

Financial Results for FY3/21(TSE1/6294)

May 25, 2021

Table of Contents

1. Corporate Profile/History
2. Business Results for FY3/21
3. Long-term Vision "VISION 30"
4. Mid-term Management Plan
"Rolling Plan FY2021-FY2023"
5. Appendix (FY3/21)
１

Corporate Profile (As of March 31, 2021)
Business content

FoundedManufacture, sale and repair of construction and forestry
machinery
AIYON TECH. CO., LTD. (Main assembly plant)
Nansei Machine Co., Ltd. (Manufacturing, development
and sales of forestry machinery)
Okada America, Okada Europe
July 1938 (Established in 1960)

Capital stock

2,221 million JPY

Group companies(Group total)

23 in Japan and5 overseas

Net sales

17,591 million JPY

Number of
employees

451 (Consolidated)

Business bases

Head Office (Minato-ku, Osaka)

２

Corporate history
We have grown mainly through the development and sale of demolition attachments
to meet various demand from rock drills to urban demolition machineries.

1938
Established

Changes in net sales
over the past 30 years

1995(Million JPY)

(Great HanshinAwaji
Earthquake)

Around 1951

2017
M&A ofNansei machineCo., Ltd.

(excavator
method)20,0002011

2016(Great East Japan
Listed on TSE1
Earthquake)

Around 1960 (appearance oflarge air breaker)

1992
Listed on the 2nd
Section of the Osaka
Stock Exchange

15,0002008
Financial Crisis

10,0005,000
The latter half of the 1970s(The crusher demolition has
developped)

FY
1990

FY
2000

FY
2010

FY
2020

0

３

1. Corporate Profile/History
2. Business Results for FY3/21
3. Long-term Vision "VISION 30"
4. Mid-term Management Plan
"Rolling Plan FY2021-FY2023"
5. Appendix (FY3/21)
４

Status by segment under COVID-19【YoY (%)】
Feb. 2020Mar. 2021

Japan

250

Overseas

Nansei

Total
(YoY)

200

Japan
98.6
150

Overseas
96.6
100

Nansei103.5
50
Consolidated
total

98.9

0
2020.22020.32020.42020.52020.62020.72020.82020.9 2020.10 2020.11 2020.12 2021.1

2021.22021.3

５

Results summary (FY3/21)

17,591

Net sales

million JPY

Operatingincome1,377

Net income

919(+0.6％ YoY)(▲2.0％ YoY)

1,433

Ordinary
income17,957(Million JPY)

(Million JPY)

(Million JPY)

million JPY(+3.9％ YoY)(+6.4％ YoY)

(Million JPY)

17,866

million JPY

million JPY

1,560

1,524
17,591

1,433
1,368

1,377

1,000

1,347
919
884

FY2018 FY2019 FY2020

FY2018 FY2019 FY2020

FY2018 FY2019 FY2020

FY2018 FY2019 FY2020【Net sales】【Operating
income】【Ordinary
income】【Net income】

６

Factors for change in net sales
 In Japan, sales of crushers decreased reflecting the sluggish demand due to COVID-19, but recycling machineries and grapples remained strong.
 In overseas, sales in the U.S. declined due to the spread of COVID-19, but sales in Europe, where the company has been incorporated, and Asia,
where new products have launched, were rebounded.

 In Nansei Machine, the cable crane business performed well due to the steady demand of renovation of hydroelectric power plants. Other forestry
machines demand were weaken.

Overseas Nansei

Domestic(Million JPY)

17,957
Environmental
machinery▲62

90

Breaker

FY3/203,957

Grapple

89

165

▲342

▲ 157

Crusher

Parts /
repair▲ 62
Other17,591▲ 86

FY3/21７

Factors for change in operating income
 In Japan and overseas, gross profit decreased due to lower sales, but reduced SG&A expenses

especially travel and accommodation expense helped generating the income.
 In Nansei Machine, although sales increased, gross profit decreased due to changes in sales portfolio.
(Million JPY)

1,368

Decrease in
SG&A expenses

Domestic
Gross profit

221

1,377

Overseas
Gross profit▲
Nansei
Gross profit▲▲
FY3/20FY3/21８

Domestic market share of major products by class
Focus on sales of large-scale machines for the
excavator classes of 30 ton and larger
Share70.0（％）

Primary Crushers

Share 80.0
（％）

60.0

70.0

50.0

60.0

40.0

50.0

30.0

40.0

20.0

30.0

Share
（％）

70.0

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

Share
（％）

Cutters

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

30.0

Pulverizers

60.0

25.0

50.0

20.0

40.0

15.0

30.0

Hydraulic breakers

10.0
FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21
Overall share

30 ton or over

FY3/16 FY3/17 FY3/18 FY3/19 FY3/20 FY3/21
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)９Capital investments / R&D◆ An investment projected in the expansion of the main plant (AIYON TECH) to increase production capacity, and in thereconstruction of the sales office (and maintenance facility) to strengthen after market support for large machines and to
improve the work environment.
◆ In capital investment, the depreciation expense for building and facility equipment gradually increased as scheduled inlong term.
■Capital investments ■R&D Expenses ■Depreciation and Amortization(Million JPY)

1,400
1,200
1,000
800
600
400

1158
887
509

200
0

[Major Contents]

80

267

FY3/16・ AIYON TECH
Capital Investment(559 million JPY)

71

765

627
332

120

374

FY3/17

FY3/18・ Construction of
Hokuriku Sales Office(270 million JPY)

・ Reconstruction of
AIYON TECH
(220 million JPY)・ Nansei Groupʼsgoodwill(209 million JPY)

Expansion of main plant (AIYON TECH)

172

636
429

FY3/19

181

433

185

439

FY3/20FY3/21・ Land for relocation of
Shonan Sales Office(201 million JPY)

・ Newly built of Shikoku
Sales Office(267 million JPY)・ Land for relocation of
Shikoku Sales Office(105 million JPY)・ Rebuilding of Head Office
Maintenance Factory(94 million JPY)

・ Newly built of Shonan
Sales Office(444 million JPY)・ Land for relocation ofHiroshima Sales Office(161 million JPY)・ Land for relocation of
OKADA AMERICA(75 million JPY)

Reconstruction of sales office(Service shop and facility)10Cash flows(100 million JPY)

Changes in cash flows for 6 years

50

Cash balance

Operating CF

Investing CF

40
30
20
10
0
‐10

FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21‐20

Total cash flows for 6 years(100 million JPY)
Operating CF

Cash balance18

Beginning1848 of
FY3/16

Investing CF

+35

△36

Net income after taxes: 42
Depreciation and amortizationof goodwill: 22
Changes in working capital:△34

Purchase of property, plant andequipment: △31
Purchase of shares ofsubsidiary: △5

Financing CF+25
Capital increase: 15
Loan payables: 23
Shareholder returns: △12

Cash balance42
End of FY3/21

11

1. Corporate Profile/History
2. Business Results for FY3/21
3. Long-term Vision "VISION 30"
4. Mid-term Management Plan
"Rolling Plan FY2021-FY2023"
5. Appendix (FY3/21)
12

Long-term Vision VISION 30

Corporate Principle and Vision -System
Corporate Principle
1. Valuable company for society
2. Valuable divisions for the company
3. Valuable individuals for the division
4. Steady advancing as upward arrow.

Corporate
Principle

Long-term vision
VISION 30 - Go To The Next Stage
Help to materialize an "environmentally" friendly society throughbusiness activities by employees who are trained by quality HR
activity to create the “environment” and not to be influenced by the"environment"
Numerical Vision
Net sales of 30 billion JPY, operating income of 3 billion JPY, and amarket capitalization of 30 billion JPY

Long-term vision(Long-term strategy
toward year 2030)

Mid-term Management Plan
Rolling plan FY2021-FY2023
Human Resource Strategy
Marketing Strategy
Upgrading and re-organizing the stores andfacilities

Mid-term
Management Plan
(Rolling 3-year plan)

Code of Conduct
Corporate Code of Conduct
10 Rules of Conduct for Employees

Code of Conduct(Group Code of Conduct)

13

Long-term Vision VISION 30

Outline of VISION 30
VISION 30 Statement
Help to realize an "environmentally" friendly society through businessactivities by employees who are trained by quality HR activity tocreate the “environment” and not to be influenced by the "environment"

Implementation of ESG
management

Slogan: People create an environment
Values: [Corporate Culture] Corporate culture that respects individuals andencourages freedom and unity.
[Business] Providing customer-oriented products and services.
[Social] Business expansion leading to the solution of social andenvironmental problems.

VISION 30

Key Performance Indicators (KPIs)
Triple 10

Triple 3
Net sales: 30 billion JPY and more
Operating income: 3 billion JPY andmore
Market capitalization: 30 billion JPY andmore

Net sales growth rate: 10% and larger
Operating income to net sales: 10%
ROE:10% and larger

Go To The Next Stage
Number ONE by far in Japan

Global number ONE

ONLY ONEVISION30“ ONE ”ONE TEAM

ALL FOR ONE GOAL

14

Long-term Vision VISION 30

VISION 30 Business Plan (Potential of Domestic Demolition Market)
Building age and area of non-wooden buildings (concrete buildings)◆ Looking at demolition targets for buildings 40 years old and older, demolition demand will continue growing (an area
equivalent to about 1,500 Tokyo baseball Domes will be demolished each year).
(Million square meters)

80,000Area of buildings to be
demolished in the future

70,000
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

〜1970

〜1980

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

〜1990

〜2000

〜2010

〜2017

Offices and stores

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

15

Long-term Vision VISION 30

VISION 30 Business Plan (Potential of Domestic Forestry Market)
Trends in Timber Supply and Timber Self-Sufficiency Ratio◆ During the period of high economic growth, imports of timber increased to compensate for the shortage of domestic timber supply, andhave continued to replace with the domestic timber for a long period of time, but now that the planted forests of 40 to 50 years ago arereaching the optimum age for harvesting, the government is promoting the use of domestic timber from the perspective of environmental
conservation, including thinning project.
◆ Consequently, the timber self-sufficiency rate rose for the ninth consecutive year (18.8% → 37.8%), and the sales activity for forestry
machinery, which is improving work-efficiency, is growing further.

Forestry Agency, "Announcement of Timber Supply and Demand Announcement 2019" (announced on September 30, 2020)16

Long-term Vision VISION 30

VISION 30 VISION 30 Business Plan (Overseas Market Potential)
Demolition attachment market◆ Overseas market is expanding, and the market share in the U.S., Europe, and Asia (excluding China and Japan), which isthe focus market, is yet under 2% and there is enough room for development.
5,000

Outlook(Million US$)

8.7%

9.9%

9.9%

4,500

2.6%

1.9%

3,871
3,613

3,500
3,000
2,500

9.0%

‐3.4%

4,000

2,818

1,500

3,120

367

363

2,563

345

294

311

113

108

441

96

100

425

385

329
187

345
193

228

238

2,498

2,000

3,063

513

529

1,000
470

470

210

583
534

649
582

102

693
581

3,315

410

3,015

380

112

340

105

545

96

487

446

271

490

435
119

284

830

911

997

6.3%

4,390
4,131 Other 486
462 Africa

Middle East 133

126

South
America

647

Asia

596

251

235

764

6.7%

7.1%

700

299 Japan

1,080 China

319

1,165

563

721
North
689 America

712

747 Europe 781

2023

2024

550

555

588

628

636

580

632

2015

2016

2017

2018

2019

2020

2021

2022

China

Japan

‐10.0%‐20.0%‐30.0%‐40.0%‐50.0%

653

672

0.0%

(Other)

620

500

10.0%

0

‐60.0%‐70.0%‐80.0%

EuropeNorth America

Overseas key
Markets

Asia (excluding Japan and China)

South America

Middle East

2025
AfricaOther

YoY"Prepared by company based on research materials from private research companies"

17

Long-term Vision VISION 30

VISION 30 3 Strategies

Human
Resources
Strategy① Human Resource Development: Recruitment, development and utilization ofhuman resources② Personnel System: Fair evaluation and compensation system reflecting the results
and contributions③ Work Style Reform: Creating a workplace that is easy to work in, people want towork in, and rewarding to work inMarketStrategy① Domestic Strategy: Strengthening integrated value chain in response to increased
demand② Overseas Strategy: Market development through the introduction of products andmanpower to three bases in the U.S., Europe and Asia
③ New Businesses: Use of new technologies (new demolition methods, DX, etc.) andpromotion of strategic M&A

Strengthening
Management
Base① CG System: Establishment of governance structure to support sustainable growth② Hardware: Maintenance (expansion and new construction) of plants and sales
bases in Japan and overseas③ Software: Development of system infrastructure and business reform and evolutionof customer support through DX

18

1. Corporate Profile/History
2. Business Results for FY3/21
3. Long-term Vision "VISION 30"
4. Mid-term Management Plan
"Rolling Plan FY2021-FY2023"
5. Appendix (FY3/21)
19

Mid-term Management Plan

Rolling Plan

FY2021-FY2023

Performance Plan
(Million JPY)

Results

Plan

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

Net sales

17,866

17,957

17,591

18,50020,00022,000Gross profit

5,259

5,264

5,051

5,580

6,010

6,670

Margin

（％）

29.4

29.3

28.7

30.2

30.1

30.3

SG&A expenses

3,735

3,895

3,674

3,980

4,210

4,570

20.9

21.7

20.9

21.5

21.1

20.8

1,524

1,368

1,377

1,600

1,800

2,100

（％）

8.5

7.6

7.8

8.6

9.0

9.5

Ordinary income

1,560

1,347

1,433

1,600

1,800

2,100

Profit before tax

1,521

1,347

1,357

1,600

1,800

2,100

1,000

884

919

1.060

1.200

1.400

CAGR

16.0

0.5

△2.0

5.2

8.1

10.0

Operating income to net
sales

8.5

7.6

7.8

8.6

9.0

9.5

ROE

10.2

8.5

8.3

9.0

9.5

10.2

Margin（％）

Operating income
MarginNet income attributable to owners ofparent20

Mid-term Management Plan

Rolling Plan

FY2021-FY2023

Changes in Business Segment
Segmentation was changed as follows in line with the review of domestic sales status and businessadministration system.
Formersegment

Domestic

Category

FY3/21
Sales

ChangeNew segment

Category① CrusherOverseas

FY3/21
Sales

Crusher

5,713

Change to ① (nochange)Environmentalrelated equipment

1,640

Change to ④,⑦Hydraulic breaker

807

Change to ② (nochange)④ Environmental
attachment

585

Grapple980

Change to ③,⑥⑤ Other

825

Material

1,250

Change to ⑨

Repair756

Change to ⑩

Other

827

Change to ⑤,⑪⑧ Cable crane

Forestry machinery

702

Change to ⑥,⑨,⑩⑨ Material

Metal scrap
machinery

369

Change to ③,⑨,⑩

Cable crane

1,010

Change to ⑧,⑨,⑩⑪ Other

Change to ⑤,⑨,⑩, ⑪

U.S.

1,839

Europe

478

Asia

508

② Hydraulic breaker
Demolition
environmental
attachment

Domestic③ Grapple⑥ Forestry machinery⑦ Large environmental machinery

Nansei(Million JPY)

Other

638

U.S.

1,839

Europe

478

Asia

508

Other regions72⑩ RepairOverseas
No change

5,713
807
1,113

662
1,054
990
1,591
782
566

Other regions

72

21

Rolling Plan

Mid-term Management Plan

Changes in Business Segment

FY2021-FY2023-Past performance of the Domestic (New) segment(Million JPY)

1H

2H

FY3/191H

2H

FY3/201H

2H

FY3/21

3,060

3,248

6,309

3,123

2,932

6,055

2,539

3,173

5,713

② Hydraulic breaker

396

442

838

459

410

870

381

426

807

③ Grapple

310

417

728

461

624

1,085

489

624

1,113

④ Environmental
attachment

294

271

565

291

279

570

325

260

585

⑤ Other

393

441

835

469

418

887

405

420

825

4,456

4,821

9,277

4,805

4,665

9,470

4,140

4,905

9,045

⑥ Forestry machinery

319

464

784

311

351

662

305

356

662

⑦ Large environmental
machinery

366

470

836

445

532

978

612

442

1,054

⑧ Cable crane

363

279

642

427

235

662

591

399

990

⑨ Material

769

856

1,625

902

850

1,752

786

805

1,591

⑩ Repair

394

490

885

400

458

859

401

380

782

⑪ Other

376

376

752

327

258

586

252

313

566

7,044

7,759

14,804

7,620

7,352

14,972

7,089

7,603

14,692① Crusher

Demolition environmental
attachment

Net sales(Domestic segment)

22Mid-term Management Plan

Rolling Plan

FY2021-FY2023

Investment Plan
Expansion of domestic sales office and maintenance plant facilities to accommodate larger attachments will
be completed by FY3/24(Million JPY)

Results

FY3/19FY3/20Plan
FY3/21

FY3/22

FY3/23

FY3/24R&D Expenses

172

181

185

200

220

240

CapitalExpenditures

765

636

1,158

1,750

1,000

800

Major Equipment

Shonan Sales
OfficeShikoku Sales
OfficeHead Office
Repair Factory

Depreciation andamortization

Shonan Sales
OfficeShikoku Sales
OfficeHead Office
Repair Factory

429

Shonan Sales
OfficeHiroshima Sales
Office433

Hiroshima Sales
OfficeChubu Sales
OfficeSendai Sales
Office439

Sapporo Sales
OfficeAmerica Head
Office Plant

470

AIYON TECH
Plant
Morioka Sales
Office500

530■Capital Expenditures ■R&D Expenses ■Depreciation and Amortization(Million JPY)

2,000
1,500
1,750

1,000
1,158

500

765

0

172

1,000

800

636
429

FY3/19181433

FY3/20185439

FY3/21

200

470

FY3/22(Forecast)

220

500

FY3/23(Forecast)

240

530

FY3/24(Forecast)23

Mid-term Management Plan

Rolling Plan

FY2021-FY2023

Cash Flow Plan
Cash flow plan FY3/22-Y3/24
Period-end cash and deposits balance
Investment CF
Increase in cash

Operating CF
Finance CF
FCF(100 million JPY)

40
30
20
10
0
‐10

FY3/22

FY3/23‐20

FY3/24

Cash flow plan 3-year cumulative

Cash and depositsbalance42
1848 of
Beginning
FY3/22

Operating CF

Investment CF

+43

△36

(100 million
JPY)
Finance CF△14

Cash and depositsbalance35
End of
FY3/2424

Mid-term Management Plan

Rolling Plan

FY2021-FY2023

Dividend Policy
Aiming for sustainable dividend increases with a dividend payout ratio of 30% through medium-to longterm stable growth⇒ Plan to increase dividends for 12 consecutive years in FY3/22
(JPY)

（％）

35

40

30

Dividend

34.6

Payout ratio

35
30

25

22.8

25.3

21.9

25.6

25.2

22.6

20

25
20

15
10
5

22

23

24

27

28

29

30

15
10
5

0

0
FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21

FY3/22
Forecast

25

Mid-term Management Plan

Rolling Plan

FY2021-FY2023

Market Strategy
Further strengthening the integrated value chain① Renovation of domestic sales office (strengthening sales and repair services)② Integration and cooperation between Okada NANSEI (Nansei Machine) and OKADA AIYON
Domestic③ Strengthen lineups of hydraulic breakers④ Strengthen the Purchasing, Sales, and Repair for Large-Scale Environmental machinery⑤ Launch of attachment insurance (industry's first compensation system in partnership with a non-life
insurance company)

Develop markets by investing products and capabilities in 3 basesin the U.S., Europe, and Asia
Overseas① Incorporation of Thailand base as a local subsidiary -Further development of the Asian market② Expansion of Okada America head office③ Further expansion of products and after-sales services for Overseas

NewbusinessesApplication of new technologies (new demolition methods, DX, etc.)
and promotion of strategic M&A① New product development and new construction methods [Waku Waku Monozukuri Promotion Team]② Promote strategic M&A

26

Mid-term Management Plan

Rolling Plan

(1) Domestic initiatives by segment

FY2021-FY2023-Further strengthening the integrated value chain① Renovation of domestic sales office (strengthening of sales and repair services)

Development

Contributed to the expansion of repair plant facilities in response to the growing size of attachments andimprovements in the workplace environment and safety

2019

2016

2020

Sales
officeHokuriku (sales
office)Relocated andnewly
established

Head Office
MaintenanceFactory
Expansion

Shikoku (sales
office)Relocated andnewly
established

Shonan (sales
office)Relocated andnewly
established

Kyushu Second
Plant newly
established

Investment
amount

270

161

372

707

Lease

Total
investment

1,510

Repair(Million JPY)

Hiroshima(sales office)Relocated andnewly
established

Chubu (sales
office)ReconstructionSendai (sales
officeRelocated andnewly
establishedMorioka (sales
office)Expansion

Sapporo (sales
office)Relocated andnewly
established

450

450

750

100

450

Total
investment

2,200【Historical results】[Transfer and newly established in Oct. 2016]
Increase the maximum crane size from 2.8t
to10t

Sale

Renovation plan for 2021-2023 (investment amount is estimation)

FY

Hokuriku Sales Office

Manufacturing

Shikoku Sales Office[Transfer and newly established in Nov. 2019]
Increase the maximum crane size from 2.8t to
15t

Shonan (formerly Yokohama)Sales Office[Transfer and newly established in Oct. 2020]
Increase the maximum crane size from 5t toto 15t（New）（Former）
28

27

Mid-term Management Plan

Rolling Plan

(1) Domestic initiatives by segment

FY2021-FY2023-Further strengthening the integrated value chain② Integration and collaboration between Okada NANSEI(Nansei Machine) and Okada◆ Integration and collaboration between sales offices

Develop
ment

Manufacturing

Sale

RepairStrengthen group response in forestry machinery and environmental attachment sales through integration andcollaboration between sales offices

Western Japan Region
Promoting Collaboration

Sapporo(Transferred)

Nigata (Transferred)

OKADA NANSEI Bases

Nagano(Transferred)

Morioka(Integration)

Osaka

Tokyo
(Transferred)

Hiroshima(Remain)Kuma
moto

Eastern Japan Promoting Transfer andIntegration

Nagoya (Remain)
Shikoku(Remain)◆ Cooperation in development and manufacturing

Develop
ment

Manufacturing

Sale

RepairOptimize use of development and manufacturing resources within the Group through shared manufacturing development, parts
standardization, joint development, etc.

<In-house production system><Outsourcing of all parts and parts of assembly>

Design and development

Joint
development

Manufacture of partsand materials

Standardizationof parts

Assembly

Manufacturing
cooperation

Design and development

In-house design anddevelopment

Manufacture of parts andmaterials

100% outsourcing ofparts and materials

Assembly

Assembly

Assembly is conducted in
combination with in-house andoutsourcing.

28Mid-term Management Plan

Rolling Plan

(1) Domestic initiatives by segment

FY2021-FY2023-Further strengthening the integrated value chain③ Strengthen hydraulic breakers business throughfactory in Vietnam

Development

Manufacturing

Sale

RepairOverseas・Launch a manufacturing plant specializing in
Hydraulic breakers with supply partner.
・Planning mass production system in 2021
・. Sales in developing country and adding a breakerlineup.

④ Strengthen the purchasing, sales, andrepair divisions for large-scale
environmental machinery・Strengthen purchasing, sales, and repair
systems through the formation of a specialist
team at Ohata Environmental Machinery・Strengthen the training of repair personnel
through the 2-year Training Special Program⑤ Launch of attachment insurance(industry's first compensation system inpartnership with a non-life insurancecompany)
・Coverage for the demolition attachment "TSseries" to cover damage repair costs for two years
after sale.
・In commemoration of the "Okada Grand Exhibition(to be held in June)," we will cover the insurance
premiums until March 2022.

Development

Purchase

Sale

RepairDevelop
ment

Manufacturing

Sale

Repair29

Mid-term Management Plan Rolling Plan
(2) Overseas initiatives by segment

FY2021-FY2023

Develop markets by investing products and capabilities in 3 bases in the U.S., Europe, and Asia

① Making the Thailand base a local subsidiary America-Further development of the Asian market

EuropeAsia・Establish a joint venture with a local partners and focus on developing
the Thailand market, which is expected to develop in the future, anddeveloping new products for Asia (scheduled to be established in May
2021)② Expansion of Head Office in Okada America

America

EuropeAsia

・Relocate and expand head office in the suburbs ofPortland, Oregon
・Expand office, factory, and warehouse functions to
support customers and further gain market share in
the most focused U.S. market③ Further enhancement of products and after-sales
services for overseas

America

EuropeAsia・Enhance our ability to develop products for overseas markets.
Adding of lineups of hydraulic breakers and crushers throughincreasing the engineering team staffs and growing supply chain
worldwide.
・Enhance after-sales service for customers
Developing an online support tool which gives the customers
24hours support worldwide

Pulverizers exclusively for overseas

30Mid-term Management Plan Rolling Plan
(3) New business development

FY2021-FY2023

Promotion of new technology applications (new demolition method, DX, etc.) and strategic M&A① New product development and new construction methods[Waku Waku Monozukuri Promotion Team]

Develop
ment

ManufacturingSale

RepairContinue research and development of new products and services through [Waku-Waku
Monozukuri Promotion Team] from a medium-to long-term perspective◆ Projects under development"Attachment operation management system with GPS (O-ATTA)"O-ATTA ＝ Okada−Attachment Trace Time Action
O-ATTA（GPS）

Enlarged view of O-ATTA (GPS)◆ Future development themes・ "Environmentally friendly attachments" for human resource shortages, safety, and the environment.
(maintenance-free, silent breaker, IT-based, unmanned)
・ High strength concrete demolition method② Promoting strategic M&A

Develop
ment

Manufacturing

Sale

Repair

Proactively consider M&As, capital and business alliances to expand business domains that leverage
the Group's strengths.

31

1. Corporate Profile/History
2. Business Results for FY3/21
3. Long-term Vision "VISION 30"
4. Mid-term Management Plan
"Rolling Plan FY2021-FY2023"
5. Appendix (FY3/21)
32

Business bases【Domestic】【Overseas】

Okada America

Okada Europe

Thai Representative Office

OKADA AIYON: 12 bases
AIYON TECH: 1 baseNansei Machinery Group: 10 bases

Okada America: 3 bases (headquarters/Oregon)
Okada Europe: 1 base (headquarters/Netherlands)
Thailand Representative Office (Ayutthaya)*Thailand Representative Office became a local subsidiaryin May 2021.

33

Product application(Demolition attachments)- To mounted on excavators of all domestic and overseas brands【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】【Breakers】

・Versatile equipment for demolition ofwooden houses, scrap lumber collection,and disaster rescue work.

・Major equipment in overseas,with outstanding crushing power
・However, the noise is loud.

34

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

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

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

35

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

36Mid-term Management Plan Rolling Plan

FY2021-FY2023

Change in Reportable Segment(New) Domestic Segment Classification -Overview of Major ProductsCore product categories
Demolishenvironmental
attachment
Crushers

Major machines

Hydraulic breakers

GrapplesForestryequipment
GrappleLargeenvironmental
machinery

Winch

Wood crusher (medium and low speed)

HarvesterMaterial/Repair

Domestic segment
sales

Domestic
Sales composition

Domestic
estimated share¥9.04
billion

62%

35%

¥660
million

5%

20%

¥1.05
billion

7%

20%

¥990
million

7%

50%

¥2.37
billion16%

Wood crusher (high-speed)

Cable
crane
Large cable crane

FY3/21
Net sales

Large winch¥14.69billion

OthersRepairs and 4%
material 16%

Major products

80%

30%
37

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 ｐｒｏｆｅｓｉｏｎａｌ

RepairDesign/Develop
ment

Sale
Sales

Manufacture

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.

38

Product sales destination (Domestic)
Dismantler
About

10％
Rentalcompanies
About

20％

Excavator manufacturer
and sales company
About

70％

(Other regional rental
companies)*Each image is quoted from each company's website as an example.

39

Overseas Sales
Oversea (Million JPY)
North Americas
16.5％'FY3/19'FY3/20'FY3/21YoY

YoY (％)

Asia
EuropeOthersTotal overseas sales

2,072
635
294
60
3,061

2,153
411
361
60
2,985

1,839
508
478
74
2,899

▲314
97
117
14
▲86

▲14.5
23.7
32.4
23.3
▲2.9

Overseas ratio (%)

17.1

16.6

16.5

▲0.1

－

Europe16％* Others: 3%

Asia
18％

North
America
63％

40

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 involves 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.aiyon.co.jp/

41