Aiphone (6718) investor relations material

Recent performance and prior plan

• FY2025 net sales were ¥62.98bn; operating profit was ¥2.82bn and margin was 4.5%.

• FY2025 operating profit fell as overseas sales, which carry relatively higher margins, made up a smaller share of sales, while expenses including R&D increased.

• The 8th MTP missed targets for operating profit (¥2.82bn vs. ¥5.6bn), margin (4.5% vs. 8.8%), net sales (¥62.98bn vs. ¥63.5bn) and ROE (3.6% vs. 6.4%).

• The 8th MTP CO2 reduction target was achieved: 28.8% vs. a 25% target, measured against FY2020 Scope 1 and 2 emissions.

• Prior-period challenges included yen depreciation, higher material costs and supplier component end-of-life changes; initiatives included cost pass-through, software development expansion and SaaS development.

Strategy and growth priorities

• The 9th MTP targets ROE of 5.2% by FY2028; the 2035 ambition is a high-profit structure with ROE of 10% or higher.

• Strategic priorities are market-specific resource allocation, more efficient development, prioritizing overseas business, building SaaS and other strategic businesses, and expanding into adjacent areas through M&A.

• Domestic priorities include growing share through stronger services and improving profitability; overseas priorities include market-led development and a three-region global structure.

• AI and digital adoption, operational reform, new technologies and businesses, human capital, and ESG are identified as growth-platform enablers.

• Market opportunities include intercom renewal, unattended delivery and AI; risks include yen-related and memory-price cost increases, European low-price competition and tariffs.

FY2028 targets

• FY2028 targets: net sales of ¥70.0bn, up ¥7.02bn vs. FY2025; consolidated operating profit of ¥5.0bn, up ¥2.18bn.

• Consolidated operating margin target is 7.1%, up 2.6 percentage points vs. FY2025; ROE target is 5.2%, up 1.6 points.

• Scope 1 and 2 CO2 reduction target is 35% vs. the FY2020 baseline, up 6.2 points vs. FY2025; plan assumptions include USD/¥158, THB/¥5.0 and EUR/¥184, with future material-price increases excluded.