In FY2024, the Achilles Group recorded net sales of 79,093 million yen (100.6% year-on-year), an operating loss of 436 million yen (up 521 million yen from the previous year), an ordinary loss of 220 million yen (down 48 million yen from the previous year), and net income of 427 million yen (up 8,638 million yen from the previous year). In response to factors such as rising and persistently high raw material prices and energy costs, as well as higher procurement costs due to the weak yen, we pursued initiatives to improve productivity, reduce expenses, revise prices, and create new value, but still recorded an operating loss of 436 million yen. The operating income on a non-consolidated basis was 554 million yen (up 1,855 million yen from the previous year).
Amid an uncertain business environment ahead, the Achilles Group is positioning “Strengthen and business foundations and promote growth” as a materiality (key management issue), and we have formulated this medium-term management plan to transform into a company that continuously generates high profits.

This plan prioritizes the reconstruction and strengthening of earn-ing power through three company-wide strategies, advancement of the business foundation, and promotion of sustainability management.
The three company-wide strategies are “Thorough Selection and Concentration,” “Creation of New Value” and “Promotion of Global Strategy,” and by moving ahead with these, we will maximize our operating profit. Specifically, we have identified “Electronics,” “Mobility,” “Medical & Healthcare,” “Construction & Infrastructure,” and “Safety & Activity” as focus areas where we can leverage the Achilles Group's strengths, and within those, we will be identifying market segments with growth potential and profitability, and concentrating management resources to drive growth. At the same time, we will reevaluate the positioning of low-profit items and categories, and make management decisions accordingly.

As indicators to restructure and strengthen earning power, we have also set the following management targets.

Our sales target for FY2027 is an increase of 9 billion yen over the FY2024 results, with more than half of the growth planned to be from overseas markets. While the outlook for U.S. tariff policy remains uncertain, we will be making company-wide efforts to achieve these targets.

To execute company-wide strategies in a steady manner, we will be advancing the following initiatives.

• Enhance human resource capabilities (strengthen the human resource base and talent development, create an environment where employees feel engaged in their work, and promote human capital management)
• Improve productivity (raise productivity and business value company-wide through the active use of digital technology, etc.)
• Enhance technological capabilities (strengthen competitiveness of factories by restructuring the production system and promote production innovations)
• Improve value creation and development capabilities (develop of new products by each BU; promote R&D related to a circular society, climate change measures, and digitalization)

In addition, to more effectively conducting business activities in focus areas, including cross-divisional initiatives, we reorganized divisions to consolidate operations (see P. 19 for the structure after reorganization). Furthermore, in the Production Div., we established the “Production Solutions Division,” “Innovation Technology Division” and “Office Center,” independent of the command structure of the business divisions, to boost productivity at manufacturing sites through a multifaceted approach and to create a system that allows these initiatives to be implemented across the company.

Above all, improving profitability and ensuring the premise of a going concern are the highest priorities of sustainability management for the Achilles Group, but we also position “people-centric management” as the foundation for our various activities.
We are focusing on human capital management, including the utilization of diverse talent, and are reviewing our systems to create an environment where employees are able to work with peace of mind and fully demonstrate their abilities. We have also redefined our corporate philosophy as “Living with Society” and “Customer First” are core values that guide us. We contribute to a sustainable society and strive to improve the well-being of all, enhancing the quality of life for future generations, and we believe that coexistence and co-prosperity with society are essential for the survival of the company. Therefore, as a member of society, we will not only comply with laws and regulations but also respond to various social demands, including those for which rules are still being developed, such as environmental responses.
The Achilles Group announced its agreement with the TCFD recommendations in April 2023, and began disclosing information on the risks that climate change presents to its business. Our greenhouse gas emissions reduction target assumes a 1.5°C scenario and is targeting a 50% reduction in the total of Scope 1 and Scope 2 emissions by the end of 2030 compared to FY2018. In response to human rights risks, the Achilles Group has established a human rights policy and regularly conducts surveys of its employees, while for the supply chain, we conduct an annual human rights risk assessment of our key business partners and on-site contractors—if any issues are identified, we deal with them in a prompt and appropriate manner.
Given the ongoing consideration of mandatory disclosure for listed companies in accordance with unified rules regarding the response by companies regarding sustainability issues as outlined above, we will respond accordingly in a timely manner.
Meanwhile, geopolitical risks are on the rise throughout the international community, and division is deepening due to factors such as the Trump administration's tariff policy for the U.S., which is increasing uncertainty further. The environment surrounding companies is shifting from the VUCA era—marked by rising uncertainty due to external changes—to a chaotic era (BANI*) characterized by changes in human emotions and values as well. Further diversification of needs, shortening of product life cycles, and tightening of environmental regulations are expected in the BANI era. To respond in a swift and flexible manner to these changes and achieve sustainable growth, we believe that developing and securing diverse management talent with the necessary skills will also be important for our group.

• ※BANI: Coined from the initials of Brittle, Anxious, Non-linear, and Incomprehensible. It is used to describe an even more disorderly, chaotic and unpredictable situation than the era of VUCA.

The Achilles Group positions the “Medium-term Management Plan FY25–FY27” as a crucial step toward 2030, with the aim of achieving the vision below. On the global stage, creating and delivering new value unique to Achilles will hopefully bring smiles to our customers. And as that joy spreads to our employees, those smiles will grow naturally—this is the company group we are aspiring to continue being. This is a strong wish of eveyrone on the management team.

• Achilles Group values each employee’s curiosity, diverse abilities, unique ideas, and inspiration, contributing to society through solutions that combine various technologies
• We are aiming to become a “Global Solution Provider” that delivers surprise, joy, and inspiration to the world, enriching people’s lives

September 2025

Refer to the following for details on Achilles Group’s medium-term management plan.