ResearchServiceTechnology

Results Briefing for the First Halfof the Year Ending March 31, 2024
November 30, 2023

Copyright ⒸAhresty Corporation. All Rights reserved.

Results for 1st Half of Year Ending
March 2024 and Future Outlook

1

Copyright ⒸAhresty Corporation. All Rights reserved.

Key Points of the Financial Results
for the First Half of the Year Ending March 2024
(Million yen)
Year ended
March 2023

Year ending March 2024
Year-on-Year

Full year
Oct. 25
Revised plan

1H

1H
1Q

2Q

Net sales

66,53637,99639,75477,750+11,214155,000

Operating income(1,198)

227

374

601

+1,7992,400

Recurring income

(820)

357

581

938

+1,7582,200

Net income

(830)

452

448

900

+1,730

1,400

Sales weight*

71

81

85

83

+12

83

* With the FY2018 average set as 100<Overview>➢ Net sales: Increased 16.9% year on year due mainly to the recovery in the volume of orders received and the weakening of the yen.
Sales weight increased 14.5%, reflecting the production increase by car manufacturers in line with the easing of the semiconductor
shortage.
➢ Operating income: Despite the impact of the sluggish sales of Japanese car manufacturers in the Chinese market, an increase in thevolume of orders received by the Group as a whole and the partial advancement in price negotiations with customers to compensate therise in energy costs contributed to profit.
➢ Net income: Increased mainly due to the recording of foreign currency exchange gains resulting from the weakening of the yen.
Exchange rate assumptions(Initial plan⇒Revised plan) USD ¥130.0 ⇒ ¥140.0 Chinese yuan ¥19.0 ⇒ ¥20.0 Indian rupee¥1.60 ⇒ ¥1.70
2

Copyright ⒸAhresty Corporation. All Rights reserved.

Changes in Sales Weight
Following 1Q, sales weight continued to increase due to stable increase in orders received.
The increase is expected to continue mainly in Japan and North America. But reflecting the decrease in China, the full-year forecast is about thesame level as the initial plan in May.
期初計画からの減少分
Decrease from plan at beginning of period

Results* Changes in percentage of sales weight compared to the level of FY2018

Average
平均

Average
平均

Average
平均

Average
平均

2018

2019

2020

2021

Q1

Q2

Q3
2022

3

Q4

Q1

Q2
2023

Oct. 25
Revised plan

Full year
通期(平均)(average)2023

Copyright ⒸAhresty Corporation. All Rights reserved.

Consolidated Results
Although optimal allocation of personnel advanced and the sales
weight is on a recovery/increasing trend, current staffing levels
were maintained and fixed costs were reduced by promoting lean
production systems and improving work efficiency to establish a
profit-making structure.

The recovery in sales volume mainly in the Japan and North
America segments contributed significantly to income.
Manufacturing costs mostly improved except in the Asia segment,
achieving a shift to a stage of securing stable profits.

■ Factors behind change in operating income■ Changes in the number of employees* Sales weight is for total of each half year and the number of
employees is as of the end of each period.

(Persons)
単位:人(Million yen)

392

6,500

2,373

Sales weight
売上重量

Asia
63

80,000Consolidated number of employees
連結従業員数

6,144
311
(947)

North
America
1,417

601
(101)

(230)

6,000

5,499

Worsening of productivity in the Asia segment: (297)
Income worsened due to a decrease in orders
received in China and the low productivity of the
Indian plant. Income has been improving lately.

Japan
893

5,530

5,500

(1,198)
22 1H
22上期

Sales
volume,
販売量、
price
価格是正
adjustment

Depreciation
減価償却

Energy costs, Manufacturing
エネルギー費、製造コスト
labor costs

労務費

costs

Aluminum
アルミニウム

Other
その他

23 1H
23上期

and
完成品事業
Proprietary
Products
Businesses

5,000

40,000

21 1H
21上期

4

21 2H
21下期

22 1H
22上期

22 2H
22下期

23 1H
23上期

Copyright ⒸAhresty Corporation. All Rights reserved.

Die Casting Business(Million yen)
Year ended
March 2023

1H

Japan

North
America

Asia

Year ending March 2024
1Q

2Q

Year-on-Year

Full year
Oct. 25
Revised plan

1H

Net sales

28,10915,45915,82331,282+3,17363,500

Segment
income (loss)

(423)

42

139

181

+604

1,000

Net sales

17,016

11,307

11,66422,971+5,95545,000

Segment
income (loss)

(713)

405

288

693

+1,406

1,400

Net sales

15,695

7,707

8,595

16,302+607

33,600

Segment
income (loss)

(250)

(617)

(371)

(988)

(738)

(1,200)* The Mexico Plant in the North America segment and two plants in China in the Asia segment settle their accounts in December.
5

Copyright ⒸAhresty Corporation. All Rights reserved.

Aluminum Business and Proprietary Products Business(Million yen)
Year ended
March 2023

1H

Aluminum
Business

Proprietary
Products
BusinessYear ending March 2024
1Q

Year-on-Year

Full year
Oct. 25
Revised plan

1H

2Q

Net sales

3,920

1,842

1,667

3,509

(411)

7,000

Segment
income (loss)

152

55

33

88

(64)

200

Net sales

1,794

1,679

2,005

3,684

+1,8905,900

Segment
income (loss)

111

174

313

487

+376

800

<Aluminum Business>➢ Sales: Decreased due to the impact of a decrease in sales weight and a decline in aluminum prices.
➢ Income: Decreased mainly due to the decline in sales.
<Proprietary Products Business>➢ Sales: Increased due to an increase in orders for clean room projects from a semiconductor production company, our main customer,
and the recording of sales of a major project that had been postponed from the previous period.
➢ Income: Increased mainly due to an increase in net sales. Maintained profitability.
6

Copyright ⒸAhresty Corporation. All Rights reserved.

Trends in Capital Investment, Depreciation, and Amortization
Year ending March 2024 forecasts➢ Amount of capital investment: Likely to settle at ¥14.1 billion in comparison to ¥18.2 billion in the plan. While
investments were reduced in line with the decrease in orders received in China, growth investments for newly ordered
products expanded from this fiscal year. Further increase is planned for next fiscal year.
増築建屋イメージ➢ Depreciation and amortization: About the same level as in the previous year
Amount of depreciation and amortization (billion yen)Amount of capital investment (billion yen)
200
20

200
20

18.2

Other than dies

Other than dies
Dies

150
15

13.8

150
15

14.3

12.9
11.9

14.1
10
100

7.5
6.0

Investment in
new products
and capacity
enhancement
9.7 billion
yen

6.8

550

10
100

9.4

2019

2020

2021

2022

9.7

10.5

2.2

2.3

2021

2022

50
5

4.7
2019

* Starting from FY2021, due to a change in the method of asset recording for dies,
the amount of capital investment excludes the amount for dies.

13.2

9.6

3.5

0
0

12.9

2020

2023…

2023
(Forecast)* Starting from FY2021, due to a change in the method of asset
recording for dies, amortization of some dies is not included.

(Forecast)

7

Copyright ⒸAhresty Corporation. All Rights reserved.

Financial Performance• Operating cash flows continued to increase. Free cash flow remained positive, absorbing an increase in investment cash flows.
• Cash and deposits on hand continued to remain at a high level while interest-bearing debt was reduced (net interest-bearing debt was ¥30.3
billion).
• The equity ratio was on an increasing trend partly due to the weakening yen.
Cash and deposits
Net interest-bearing debt
Equuity ratio

Operating cash flow
(Billion yen)
200
200
16.4

(Billion yen)
500
50

Free cash flow

45.9

42.9

43.5

(%)
50.0
40.7

40
400

15
150

33.6
7.9

4.21

40.0

10.7
100
10

300
30

8.2
7.4

35.0

4.2

50
5

200
20
30.0

1.3

0

100
10

(50)

0
2019

2020

2021

2022

45.0

25.0
20.0
2019

2022(1H)
2022(上) 2023(1H)
2023(上)* Free5cash flow (FCF) = operating CF - investment CF

2020

2021

2022

2023(1H)
2023(上)* Net interest-bearing debt = interest-bearing debt - cash and deposits

8

Copyright ⒸAhresty Corporation. All Rights reserved.

Return to Shareholders
In line with the good performance in 1H, increased
interim dividend from ¥5 to ¥10

Purchase of treasury stock steadily progressing

Returning profits to shareholders based on consolidated businessresults within a range that will not affect the soundness of thefinancial structure while making growth investment forelectrification

Similar to dividend payments, flexibly implementing the acquisition aspart of the strategic capital policy in line with our financial strategy,
taking into consideration business envirnment, the financial status, etc.

FY2023
Initialprojection

FY2023
Revisedprojection

10

15

20

Number ofshares acquired

Interim5

5

10

Total amount(million yen)

Year-end

5

10

10

Purchase period

Net income pershare(3.26)

42.43

54,16

Dividend payout
ratio

ー

35.4%

36.0%

Dividend per
share

Annual dividend

FY2022
Results

Treasury stock

9

Maximum
acquisition

As of Oct. 31

Progression
rate

900,000

541,800

60.2%

500

392.8

78.6%

May 19, 2023 to December 31, 2023

Copyright ⒸAhresty Corporation. All Rights reserved.

Ahresty’s Business Strategies

10

Copyright ⒸAhresty Corporation. All Rights reserved.

Forecast of Global Demand for Die-cast Products
Million tons

10

• Overall die-cast demand forautomobiles

9➢ Will continuously increase until 2040
by 26.1% (compared to 2023)

8
7

6• Growth strategies according to
growth and changes in the market

54➢ Shift to parts for electric vehicles

3➢ ICEs are decreasing while BEVs will
increase significantly

2➢ Expanding business fields to vehicle bodycomponents

102019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

ICE

MHEV

FHEV

PHEV

Series HEV

BEV

FCV

Body,Chassis* Prepared by Ahresty based on data of S&P Global

11➢ Shortening development lead time inresponse to rapid electrification

Copyright ⒸAhresty Corporation. All Rights reserved.

Expand Business Fields to Vehicle Body Components
Use of existing large DC
machines

Multi-material bodies

Gigacasting

Production of body parts using
existing die casting machines

Proposal of bodies that contain bothpressed steel and die-cast parts

Integrated underbody forming using
an ultra-large die casting machine

E.g.: Shock tower, chassis, etc.

✓ Joint development with G-TECKTCorporation is under way to achieve thebest layout of die-cast and pressed parts

Major issues concerning the introduction(by car manufacturers)

Front shock towerPro.

✓ Weight reduction thanks to use ofaluminum✓ Reduction in number of underbody
parts✓ Simplification of production lines→ Reduction in welding processes

Con.

✓ Limited production locations✓ Lower maintainability and higher repair
costs✓ Increase in material costs due to useof aluminum

Around rear wheel house

Die-cast

Die-cast

Pressedsteel

Pressed steel

Source: G-TECKT Corporation

12

Copyright ⒸAhresty Corporation. All Rights reserved.

Ahresty’s Approach to Gigacasting
Needs• Following Tesla and Chinese-owned emerging EV manufacturers, Toyota Motor
Corporation announced its entry.
• Possibility of spreading to other car manufacturers?
• The key point is whether demand for specialized manufacturers like Ahresty will
increase.

Production technologies• Ahresty has technologies based on its manufacturing know-how for large
products.
→ Technology to carry liquid metal to all corners of a die, technology for
manufacturing dies, equipment maintenance and management technology, etc.

Long-term business viability• As a specialized manufacturer, it is necessary to make a huge amount of capital
investment and secure sites.
• Cooperation with car manufacturers, our customers, is necessary from theperspectives of profitability and fund procurement.

Ahresty will develop business opportunities that satisfy the above requirements.
13

Copyright ⒸAhresty Corporation. All Rights reserved.

Our Growth Strategies - 22-24 Medium-Term Management Plan -Ratio of parts for electric vehicles in net sales: Target

55% (FY2030)
Main target(E-Axle components, etc.)

14

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Increasing the Ratio of Parts for Electric Vehicles in Net Sales
FY2023 activities (Orders
received for FY2026)

Target: 38%
1st half result: 36%■ The ratio of parts for electric vehicles in net sales has been increasing asplanned.
■ Net sales of parts for electric vehicles have been steadily growing.
Ahresty’s business for electric vehicles and market growth

Ratio of parts for electric vehicles in net sales

Status of orders received for parts for electric vehicles* For FY2026, results as of FY2023 1st half

22-24 Medium-Term Management Plan
Activity results
TargetFY2023 1H activity result (36%)
FY2023 target

ResultAhresty’s parts for electric vehicles
sales(Billion yen)

15

Global number of electric vehicles
produced(100,000 units)

Copyright ⒸAhresty Corporation. All Rights reserved.

Sales Strategies toward Achieving Targets

16

Copyright ⒸAhresty Corporation. All Rights reserved.

Our Regional Strategies
Growth driver regions: Invest in management resources to expand sales and income⇒ North America, India
Stabilization regions: Maintain/enhance business foundations to secure stable sales and income ⇒ Japan
Recovery regions: Receive orders from Chinese-owned
manufacturers for *NEV parts to recover sales and*income ⇒ China* NEV (New Energy Vehicle)…BEV, PHEV, FCV

China

Japan

U.S.

U.S.

Japan
China

Mexico

India
India

17

Copyright ⒸAhresty Corporation. All Rights reserved.

Sales Strategies for Growth Driver Regions
Mexico has an advantage as an investment location for“near-shoring” in the North America market, where
electric vehicles will increase.
(10,000 units)

India is the third largest automotive market
in the world, which will continue to growmainly for electric vehicles.

Volume of car production by energy source in North America

Volume of car production by energy source in India(10,000 units)

Priority orders
received

FY22 - 24
E-Axle-relatedparts＋
FY25 - 27
Vehicle bodycomponents

Measuresforreceivingorders➢ Stable supply of high-quality products under the Ahresty Production Way➢ Developing human resources that underpin our MONOZUKURI (Global RST Learning)➢ Shortening development lead time through DX➢ Utilizing achievements from joint development of vehicle body components* Prepared by Ahresty based on data of S&P Global

18

Copyright ⒸAhresty Corporation. All Rights reserved.

Sales Strategies for China Region
Future sales strategies for China

Sales trends in China region③ Receive orders for body parts

Receive orders
for body parts② Enhance the MOVAFLOR business

Enhance the
MOVAFLOR business① Receive orders from Chinese-owned
manufacturers for NEV parts
Basic die-casting sales
・日系OEMシェア減少による基盤売上の減少

Basic die-casting sales(reflecting results of FY2022
sales activities)

Examples of NEV parts ordered for Chinese-owned manufacturers, T1+
Receive orders from
Chinese-owned
manufacturers for NEV parts

Orders for mass production

Orders fordevelopment* No photos because
the products areunder development

Engine block for
PHEV

19

Battery structuralcomponent for BEV

Motor housing for
BEV

Copyright ⒸAhresty Corporation. All Rights reserved.

Shortening Development Lead Time throughUse of Digital Technologies

20

Copyright ⒸAhresty Corporation. All Rights reserved.

Shortening Development Lead Time through Use of Digital
Technologies
Shorten development lead time by 40% for newly ordered parts by 2024
Continue efforts to shorten the vehicle development period for the timely launch of new model vehicles in
response to diversifying needs
By using digital technologies, reduce work hours and streamline human work to shorten the development
lead time

Development lead time
Became longer
12%

Not changed
19%

FY21

Development
periodbecameshorter48%
FY24

Not sure
21%

40%
reduction* Based on survey data on changes in development methods in theautomotive industry by Hitachi Solutions, Ltd.

21

Copyright ⒸAhresty Corporation. All Rights reserved.

Shortening Development Lead Time◎MONOZUKURI in digital space
Shortening time for shop floor operations
by employing simulations
By simulating robot operation programs in advance,
reduce time for preparatory work for trial production
by 85%
Simulation of the process of applying
mold-release agent

Establishing good production conditions
by CAE analysis

Analysis

By comparing the analysis results at the design
Designstage with the actual casting results, improveanalysis accuracy and reduce the number of times oftrial production and evaluation man-hours

Actualcasting* Through feedback of findings for design,achieve a shift to development in digital space
22

Copyright ⒸAhresty Corporation. All Rights reserved.

Shortening Development Lead Time◎Streamlining man-hours
Visualization of the status ofequipment use
Visualize the status of use of equipment held globally⇒ Reduce man-hours relating to decisions on
specifications
Visualization of equipment held

Development of an automatic
appearance inspection device
Reduce human errors and variation in judgment
Reduce time for finding and training inspection
personnel⇒ Deploy the automatic appearance inspection
device globally

Optimizing judgment method23

Copyright ⒸAhresty Corporation. All Rights reserved.

10-year Business Plan
【FY2030 target values】
Net sales

180 billion
yen*

Operating income

10.8 billion
yen*

Operating margin

6%

Sales ratio of electricvehicles components

55%

Sales of vehicle bodycomponents

4.0 billion
yen

Reduction of CO2
Emissions (Scope1,2)-50%(vs. FY 2013)* Figures adjusted to the exchange rates and aluminum prices of FY 2022
at the time of formulating the full-year FY 2024 business plan24

Copyright ⒸAhresty Corporation. All Rights reserved.

Contact for inquiries regarding this document and the Company’s IR:
Management Planning Section, Management Planning Department, Ahresty Corporation
Phone: +81-3-6369-8664
Email: ahresty_MP0_IR@ahresty.com
URL: https://www.ahresty.co.jp
This document and what is said in the results briefing include forecasts that the Company made based on data available when the document was prepared. Actual results could be different from theforecasts for a range of reasons.

Copyright ⒸAhresty Corporation. All Rights reserved.

Appendix

26

Copyright ⒸAhresty Corporation. All Rights reserved.

Die Casting in Japan
Changes in sales and segment income (million yen)
DC Japan sales
Segment income/loss

15,00015,093

15,877

15,033 15,459

15,823

Changes in sales weight
1,500* Changes in percentage compared to the average level of FY2018

Results

Oct. 25
Revised plan

1,000
586
87

131

10,000

42

＋139

500

0
(500)
5,000
(1,000)

0

21Q2

21Q3

21Q4

22Q1

22Q2

22Q3

22Q4

23Q1

23Q2

Average
平均

Average
平均

Average
平均

Average
平均

2018

2019

2020

2021

Q1

Q2

Q3

Q4

Q1

Q2

Full year
通期(平均)(average)

2022

2023

2023

(1,500)

Factors behind change in segment income (million yen)

1st half
Sales: ¥31,200 million Up ¥3,100 million (11.3%) year on year
Income: ¥180 million Up ¥600 million year on year (returned to theblack)
2Q
Sales: ¥15,800 million Up ¥800 million (4.8%) year on year
Income: ¥130 million Up ¥0 million (0.6%) year on year
➢ Despite an increase in production costs due to rises in energy and laborcosts, etc., income increased in line with the recovery in the volume oforders received and the progress in energy price negotiations.

146
893
181
(369)

Labor costs (159)
Energy costs (130)

(423)
22上期
22 1H

27

(65)

販売量
Sales
volume

減価償却
Depreciation

Manufacturing
製造コスト
costs

その他
Other

23上期
23 1H

Copyright ⒸAhresty Corporation. All Rights reserved.

Die Casting in North America
Changes in sales and segment income (million yen)
12,00010,00011,664

DC North America sales

Changes in sales weight
2,000

11,307
9,793

Segment income/loss

10,186* Changes in percentage compared to the average level of FY2018

Results

Oct. 25
Revised plan

1,500

8,659

1,000

8,000
250

405

+288

500

6,000
0
4,000
(272)

(500)

(441)

2,000
0

(1,000)
21Q2

21Q3

21Q4

22Q1

22Q2

22Q3

22Q4

23Q1

23Q2

(1,500)

1st half
Sales: ¥22,900 million Up ¥5,900 million (34.9%) year on year
Income: ¥690 million Up ¥1,400 million year on year (returned to the black)
2Q
Sales: ¥11,600 million Up ¥3,000 million (34.7%) year on year
Income: ¥280 million Up ¥500 million year on year (returned to the black)➢ Sales increased due to an increase in the volume of orders received and theweakening of the yen. Although the rise in labor costs continued to affectrevenue, the U.S. plant continued to record a surplus due to theadvancement in price negotiations and the effect of cost reduction,
contributing to the increase in income.
Fiscal year end: March in U.S.; December in Mexico
28
Exchange rate (22Q2 ⇒ 23Q2): U.S. dollar: ¥133.47 ⇒ 141.31; Mexican peso: ¥123.18 ⇒ 135.99

Average

平均

Average

平均

Average

平均

Average

平均

2018

2019

2020

2021

Q1

Q2

Q3

Q4

Q1

2022

Q2
2023

Full year

通期(平均)(average)
2023

Factors behind change in segment income (million yen)
314

693

1,417

(252)

(73)

Effect of laborcosts: (472)

(713)
22上期
22 1H

Sales販売量
volume

減価償却
Depreciation

Manufacturing
製造コスト
costs

その他
Other

23上期
23
1H

Copyright ⒸAhresty Corporation. All Rights reserved.

Die Casting in Asia
Changes in sales and segment income (million yen)
10,0009,286

DC Asia sales

1,500
8,695

Segment income/loss

8,000

Changes in sales weight

8,595
7,707

Decrease from plan at beginning of period
期初計画からの減少分* Changes in percentage compared to the average level of FY2018

Results

Oct. 25
Revised plan

1,000

7,222

273

500

6,000
0
(15)

4,000

(371)

0

(617)

(590)

2,000

21Q2

21Q3

21Q4

22Q1

22Q2

(500)
(1,000)

22Q3

22Q4

23Q1

23Q2

(1,500)

1st half
Sales: ¥16,300 million Up ¥600 million (3.8%) year on year
Income: Loss of ¥980 million Down ¥700 million year on year (loss increased)
2Q
Sales: ¥8,500 million Up ¥1,300 million (19.0%) year on year
Income: Loss of ¥370 million Up ¥200 million (loss decreased)➢ Despite the ongoing sluggish sales of our major customers in China, production
increase in India and the weak yen contributed to the increase in sales. Whileefforts were made to reduce fixed costs through optimal allocation of personnel,
income worsened due to a decrease in orders received in China and the low
productivity of the Indian plant. Income has been improving lately.
Fiscal year end: December in China; March in India
Exchange rate (22Q2 ⇒ 23Q2): Chinese yuan: ¥18.9 ⇒ 19.47; Indian rupee: ¥1.70 ⇒ 1.72 29

Average
平均

Average
平均

Average
平均

Average
平均

2018

2019

2020

2021

Q1

Q2

Q3

Q4

Q1

Q2

Full year
通期(平均)(average)

2022

2023

2023

Factors behind change in segment income (million yen)
63
(65)

(250)

Effect of labor costs: (137)Worsening of productivity: (297)
22上期
22 1H

販売量
Sales
volume

減価償却
Depreciation(527)

Manufacturing
製造コスト
costs

(209)

(988)

その他
Other

23上期
23
1H

Copyright ⒸAhresty Corporation. All Rights reserved.

What is Gigacasting?
Definition
The method of integrated forming of car body parts (front and rear underbody) by aluminum casting, using an
ultra-large die casting machine
A gigacast generally refers to a large die-casting machine that has a mold clamping force of 6,000 tons or more.
✓For conventional aluminum casting parts for automobiles, die-casting machines of a 3,500 ton to 4,000 ton
class are the largest.
✓Our largest die cast machine is held at the Tochigi Plant, with a capacity of 4,000 tons.
Tesla applied Gigacasting for mass production for the first time in the world → Model Y, (new) Model 3
Conventional

Gigacasting

Front
underbody

Welding and forming over 100 steel and aluminum parts

CenterunderbodyRearunderbody

Separate underbody into three parts and perform casting of
the front and rear parts with a large casting machine

30

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