Medium-term Management Plan

Please see the material here for more information.

Performance Targets(FY3/26)

Sales down due to IT-related inventory adjustment that continued throughout the year, despite recovery in automotive-related business
Profit down due to ongoing slump in non-ferrous metals market and rising labor and energy costs

	FY3/23	FY3/24		FY3/24
(Unit: billion yen)	Results	Results	Change	Initial plan	Diff.
Net sales	178.3	174.9	-1.9%	186.0	-11.1
Operating profit	8.3	5.4	-35.1%	8.4	-3
Ordinary profit	8.1	5.4	-33.6%	8.2	-2.8
EBITDA	13.2	10.2	-22.7%	12.8	-2.6
ROE	10.5%	2.9	-7.5%	9.8%	-6.9%
ROIC	4.6%	2.8%	-1.8%	4.5%	-1.7%
DOE	3.0%	3.0%	+0.0%	2.9%	+0.1%

	FY3/24 Quarterly Results
(Unit: billion yen)	1Q	2Q	3Q	4Q	Full year
Net sales	42.3	41.3	47.0	44.3	174.9
Ordinary profit	1.5	1.5	1.4	1.0	5.4
Foreign exchange (¥/US＄)	137.37	144.63	147.89	148.61	144.63
Copper （US＄/MT）	8,495	8,491	8,255	8,543	8,421
Aluminum （US＄/MT）	2,286	2,200	2,223	2,241	2,238
Nickel （US＄/MT）	22,399	20,325	17,207	16,610	19,135

Factors underlying change in ordinary profit

Some figures do not match due to increase/decrease or rounding

Sluggish non-ferrous metals market conditions, especially weak nickel prices, led to lower profit margins
Impact of weak shipments of IT terminal devices, soaring raw material prices, and increases in labor costs, etc.
Impact of rising labor and energy-related costs

Ordinary profit fell short of both initial and revised forecasts ROE (net income) affected by extraordinary losses due to the following:

Allowance for doubtful accounts at joint venture in China
Group company restructuring costs

Targets

FY3/27: Net sales of JPY 220 billion or more, ordinary profit of JPY 12 billion or more, EBITDA of JPY 16.0 billion or more, ROE of 12% or higher, ROIC of 6% or higher

(Unit: billion yen)	Results	Results	Forecast	YoY change	Plan	Change vs. FY3/25
	FY3/23	FY3/24	FY3/25		FY3/27
Net sales	178.3	174.9	185.0	+10.1	220.0	+35.0
Operating profit	8.3	5.4	7.2	+1.8	12.0	+4.8
Ordinary profit	8.1	5.4	7.2	+1.8	12.0	+4.8
EBITDA	13.2	10.2	11.7	+1.5	16.4	+4.7
ROE^※1	10.5%	2.9%	8.1%	+5.2pp	12.1%	+4.0pp
ROIC^※2	4.6%	2.8%	4.3%	+1.5pp	6.7%	+2.4pp
DOE^※3	3.0%	3.0%	3.1%	+0.1pp	3.0%	-0.1pp
					（※ ALCONIX target figures)）

ROE: Return on equity (Profit attributable to owners of parent / Shareholders’ equity x 100)
ROIC: Return on invested capital (Operating profit after tax / (Interest-bearing debt + Shareholders’ equity) x 100)
DOE︓Dividend on equity ratio (Annual dividend per share / Shareholders’ equity per share x 100)
(Definition of “shareholders’ equity”: Capital + Capital surplus + Retained earnings on the Consolidated Balance Sheet)

Estimated capital cost at end of FY3/24 is about 5% ^(※)

Ordinary profit plan by segment

The weighted average cost of capital (WACC) estimated by ALCONIX.

Dividend Policy / Dividend History

Basic Policies and Key Issues

Build the Group’s resilience to improve profitability and chart a new growth curve
Pursue management with awareness of capital cost and stock price, and create a virtuous cycle of products, capital, and people

See below to learn more

ALCONIX at a Glance Our Business Financial Highlights Sustainability

This material has been created for a better understanding of the company and is not intended for investment solicitation.
This material has been created carefully for accuracy purposes; however, this does not ensure integrity.
The company shall not be held responsible in any way for loss or damage caused by information within this material.
Earnings forecasts and future predictions within this material have been determined by the company based on available information at the time of creation and include potential risks and uncertainty. Please be advised that, due to changes in the business environment and other various factors, actual results may differ from the future prospects mentioned or described.