Aisin (7259) Investor presentation summary

Medium-term plan progress and financial targets

• Revised FYE2026 operating profit target to 205B JPY from 300B JPY due to lower customer demand and tariff impacts, but internal reforms exceeded expectations.

• Strengthened investments in electrification, intelligence, and human capital for long-term growth.

• Generated 400B JPY through balance sheet reformation, including asset sales and inventory reduction.

• Targeting ROE over 12% and ROIC over 13% by FYE2026, with a focus on improving capital efficiency and profitability.

• Enhanced shareholder returns through treasury share repurchases and increased dividends.

Business portfolio transformation and market strategy

• Accelerating business portfolio restructuring to expand revenue from AT and PHEV/HEV, while developing new products like eAxle and battery frames.

• Responding to a slowdown in BEV adoption by leveraging a full lineup strategy, including ICE, PHEV, and HEV.

• Expanding production and sales of HEV/PHEV units globally, with new facilities in Thailand and North America.

• Targeting high profitability in AT and PHEV/HEV segments, aiming for over 80B JPY operating profit in each by FYE2031.

• Pursuing growth in emerging markets, especially India and South America, and collaborating with global OEMs.

Growth investment, sustainability, and governance

• Allocating over 300B JPY for growth investments, focusing on electrification, intelligence, and new business domains.

• Promoting sustainability through new materiality, aiming for 5.5–6.0T JPY revenue and over 8% operating profit by FYE2031.

• Advancing governance reforms with new independent outside directors specializing in business strategy and sustainability.

• Enhancing non-financial value through advanced sustainability management and active capital market engagement.

• Investing in human capital, digital transformation, and workplace innovation to support long-term growth.