ACSL (6232) Investor presentation summary

Business model and core competency

• Manufactures and sells industrial drones, focusing on aerial imaging, inspection, and delivery, with operations in Japan, the U.S., and India.

• Revenue streams include drone sales, demonstration services, and support, with a value chain spanning design, production, commercialization, and operations support.

• Competitive advantages include proprietary control technologies, compliance with economic security requirements, and a strong customer base in defense and public sectors.

• Maintains a distributor network of over 15 partners in Japan and 20 in the U.S.

• Emphasizes customer-centric values, innovation, collaboration, and quality execution.

Market overview

• The drone hardware market is projected to surpass 1 trillion JPY by 2028, with strong growth in both Japan and the U.S.

• Geopolitical risks and economic security concerns are driving demand for domestically produced, reliable drones, especially in defense.

• Regulatory changes in the U.S. and Canada are restricting Chinese-made drones, creating opportunities for compliant alternatives.

• Drones are increasingly used to address workforce shortages, defense needs, and disaster response.

Business plan and strategic initiatives

• Six strategic initiatives: drone evolution with advanced technologies, resilient supply chain, U.S. business expansion, defense sector growth, domestic infrastructure maintenance, and financial base strengthening.

• Selected for large-scale national projects, including the NEDO K Program and SBIR, with up to JPY 2.9 bn in subsidies.

• U.S. and Canadian market expansion targets JPY 2.5 bn in U.S. sales by FY28, leveraging regulatory changes and a growing dealer network.

• Defense sector focus includes mass production of SOTEN drones, partnerships with Japan’s Self-Defense Forces, and disaster response agreements.

• Infrastructure maintenance initiatives include mass production of PF4 drones for logistics and inspection, with strong partnerships and operational performance in disaster response.