Aichi : Business Report (April 1, 2021 - March 31, 2022) was published.

AICHI CORPORATION

Business Report

(English Translation)

March 31, 2022

1 Current Status of the Corporate Group

1. Business Conditions for the Consolidated Fiscal Year under Review
2. 1. Business progress and results

   During the consolidated fiscal year under review, the Japanese economy recovered modestly due

to vaccinations, a larger supply of therapeutic drugs, and lifting of priority measures such as the declaration of a state of emergency and quasi-state of emergency amid the prolonged impact of COVID-19.

However, the outlook for both domestic and foreign economies remains uncertain due to the reduction or suspension of plant operations caused by global supply chain disruptions such as the prolonged supply shortage of semiconductors and delay in supply of parts, the increase in costs resulting from the rise in crude oil and raw material prices, geopolitical risks including the situation in Ukraine, etc.

Domestic sales of specially equipped vehicles, our company's core business, increased from the previous consolidated fiscal year in the electric power industry due to a recovery in replacement demand. Meanwhile, they fell from the previous fiscal year in the rental industry due to a decline in sales in the first half of the previous fiscal year that was not covered by sales in the second half of the previous fiscal year, affected by a cautious stance in investment for construction demand. Overseas sales, on the other hand, increased from the previous consolidated fiscal year due to steady sales in China, South Korea, etc.

As a result, net sales for the consolidated fiscal year under review fell ¥2,739 million (5%) to ¥56,591 million. The breakdown of major net sales shows that sales of specially equipped vehicles fell ¥2,940 million (6%) to ¥44,070 million, and sales of parts and repairs rose ¥171 million (2%) to ¥11,779 million.

1

Net sales by business segment are as follows.

				Previous consolidated fiscal		Consolidated fiscal year		Increase/decrease from the
		Category		year			under review		previous fiscal year
			Amount			Percentage		Amount	Percentage		Amount		Ratio
Speciallyequipped				Million yen			%		Million yen	%		Million yen		%
vehicles	Digger derricks		1,653			2.8		2,757	4.9		1,104		66.8
Aerial work platforms		42,274			71.2		39,158	69.2		(3,116)		(7.4)
		Other		3,083			5.2		2,154	3.8		(929)		(30.1)
		Subtotal		47,011			79.2		44,070	77.9		(2,940)		(6.3)
		Parts and repairs		11,608			19.6		11,779	20.8		171		1.5
		Other		711			1.2		741	1.3		30		4.2
		Total		59,330			100.0		56,591	100.0		(2,739)		(4.6)

As for profit, operating profit was ¥6,861 million, which is ¥189 million (3%) lower than the previous consolidated fiscal year, and ordinary profit was ¥7,736 million, which is the same level as in the previous consolidated fiscal year. Profit attributable to owners of parent was ¥5,644 million, decreasing ¥261 million (4%) from the previous consolidated fiscal year.

(ii) Capital expenditures

The total amount of capital investment during the consolidated fiscal year under review was ¥598 million, as detailed below.

Category	Details		Amount
			Million yen
Machinery and	Machinery and equipment at Niiharu Plant and Isesaki Plant, and		294
equipment	demonstration cars, etc.
Buildings and structures	Buildings, etc. of Niiharu Plant and Isesaki Plant		143
Other	Models, jigs, etc., used at Niiharu Plant and Isesaki Plant		160
	Total		598

2

(iii) Financing status

In the consolidated fiscal year under review, capital investment funds were covered by the company's own funds in addition to ordinary working funds, and no funds were procured through capital increase, corporate bonds, etc.

1. Business transfer, absorption-type company split or incorporation-type company split There are no applicable items.
2. Acquisition of businesses of other companies There are no applicable items.
3. Succession of rights and obligations regarding businesses of other corporations, etc. through an absorption-type merger or absorption-type company split
   There are no applicable items.
4. Acquisition or disposal of shares or other equity interests, stock options, etc. of other companies There are no applicable items.

3

1. Assets and Profit/Loss
2. 1. The corporate group's assets and profit/loss

								Fiscal year ended
Category			Fiscal year ended		Fiscal year ended	Fiscal year ended		March 2022 (the
		March 2019		March 2020	March 2021		consolidated fiscal
								year under review)
Net sales	(Million yen)		61,838		58,336	59,330		56,591
Ordinary profit	(Million yen)		7,393		6,219	7,708		7,736
Profit attributable to	(Million yen)		5,525		4,923	5,906		5,644
owners of parent
Profit per share	(Yen)		71.18		63.42	76.84		74.09
Total assets	(Million yen)		84,562		82,763	90,869		90,559
Net assets	(Million yen)		65,254		67,944	73,321		76,043
Net assets per share	(Yen)		840.64		875.30	959.76		1,006.05

1. The company's assets and profit/loss

								Fiscal year ended
Category			Fiscal year ended		Fiscal year ended	Fiscal year ended		March 2022 (the
		March 2019		March 2020	March 2021		fiscal year under
								review)
Net sales	(Million yen)		61,030		57,961	59,129		56,099
Ordinary profit	(Million yen)		7,000		5,805	7,247		7,095
Profit	(Million yen)		5,190		4,645	5,536		5,068
Profit per share	(Yen)		66.86		59.84	72.02		66.52
Total assets	(Million yen)		82,894		81,069	88,256		86,578
Net assets	(Million yen)		63,632		66,015	70,078		71,620
Net assets per share	(Yen)		819.74		850.44	917.30		947.53

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