Okuma (6103) Investor presentation summary

Review of mid-term management plan 2025

• Investments in growth and business foundation were executed, including Dream Site Engineered Solutions and Global Innovation Center.

• Sales reached a record high of 235.9 billion yen in FY2025, but fell short of the 250 billion yen target due to reduced capital investment from small and medium-sized customers.

• Overseas sales accounted for 73.3% in FY2025, meeting the Global 70 goal.

• Profitability was impacted by US tariffs, inflation, and increased expenses, with operating income margin at 6.6%.

• Focus remains on accelerating ROI and adapting to market and customer needs.

Mid-term management plan 2028 policy and targets

• Aims to strengthen the foundation for revenue growth toward 2030, focusing on customer-centric value creation and business foundation reform.

• FY2028 targets: sales of 270 billion yen, operating income margin of 11% or higher, and ROE of 8% or higher.

• FY2030 vision targets: sales of 300 billion yen, operating income margin of 15%+, and ROE of 13–15%.

• Plans to achieve carbon neutrality in Scope 1 and 2 emissions by 2030.

Customer-centric value creation

• Focus on market-driven management, providing AI and automation solutions, and expanding 5-axis machining centers and multitasking machines.

• Global machine tool market expected to grow moderately, driven by automation and reshoring, especially in the US.

• Demand growth anticipated in aerospace, defense, power generation, and semiconductor sectors.

• Regional strategies include expanding production and service capacity, strengthening sales networks, and targeting growth industries.

• AI and autonomous solutions aim to improve productivity, reduce downtime, and enable unmanned factories.