Dear participants, thank you very much for joining Archion's Capital Market Day today. Also to our online participants, we truly appreciate you taking the time to be with us. We have planned a 90-minute session in total. The first 45 minutes will be dedicated to a presentation, followed by 45 minutes of a Q&A session. My name is Takao Kenmochi, and I serve as the Head of Equity and IR at Archion. I will be moderating today's session. Back in March, we shared our story while remaining within regulatory requirements and promised to come back to you with more substance soon. Today is the day. After day one, that is April 1st, and yesterday's disclosure of the FY 2025 results and the 2026 outlook, we are excited to share more details with you at today's Capital Markets Day. For today, we have three participants, presenters rather, joining us on stage. Mr. Karl Deppen, CEO of Archion. Mr. Hetal Laligi, CFO of Archion. Mr. Satoshi Ogiso, CTO of Archion. With that, I would like to hand over the floor to Mr. Karl Deppen, CEO of Archion. The floor is yours. Thank you very much, Kenmochi-san. A warm welcome also from my side, and thank you very much for joining us here today. It is a real pleasure to be back with you today, only seven weeks after our Investor and Analyst Day on March 25th, and barely six weeks into life as Archion. These first weeks working with the Archion team have been truly energizing and have deepened my conviction in the company's potential. Before we dive into today's focus topics, let me briefly bring you back to the foundation we laid out in March. These are the seven strengths that set Archion apart and form the foundation of our future success. Our position as a Japanese champion with a truly global presence, our resilient business model, our integrated platform strategy, our proven capabilities and strong partnerships with Daimler, Toyota, and others. Our significant profit growth potential with the ambition to reach 10% plus return on sales. Our commitment to shareholder value and the governance and leadership team in place to drive the future success of our company. Today, we want to build on that foundation and show you specifically how we will translate this strong starting position into sustainable market-leading performance and lasting value for our shareholders. To do so, we have structured today's session around three focus topics. First, we will explain our path to market-leading financial performance of 10% plus return on sales. Second, we will take you through the cornerstones of our technology portfolio. Third, we will present our financial target framework. Together, these three topics give you a complete picture, what we are aiming for, how we will get there, and the financial discipline that underpins all of it. Let me start where we are today and where we will be 2032. Yesterday, we disclosed our FY 2025 pro forma return on sales of 3.2%. That is our starting point. From here, our long-term target is clear, 10% plus return on sales by FY 2032 by realizing the full strength of Fuso and Hino and capturing the synergies that only this combination can unlock. On the way to our target, we will develop the business in 3 phases. In year one, we will lay the foundation to set up Archion for success. By FY 2029, we will roughly double our profitability through disciplined operational improvements, early synergy capture, and targeted investment into growth with a clear target of 7% return on sales. By FY 2032, we will aim to reach 10% plus return on sales with synergies fully implemented, our integrated platforms rolled out, and a strong foundation in place to pursue attractive growth. This is a trajectory we will hold ourselves accountable to, and that we have translated into a comprehensive financial target framework. This is our financial target framework built around the following KPIs: revenue, return on sales, cash conversion rate, return on equity, dividend payout ratio, and debt to equity. Laliji-san will walk you through the details later. Our destination is clear. Now let me guide you through the levers on how we will get there. Our increase in profitability will be driven by a balanced mix of top-line growth and cost efficiency, addressing both variable and fixed costs. All of those are amplified by the synergies we aim to capture, the value that only Archion can unlock. Let's have a closer look. This bridge shows how we aim to achieve 10% plus return on sales by 2032. As you can see, all four levers contribute meaningfully. We expect about three percentage points will come from growth levers with new vehicle volume growth and parts and service business growth, each adding approximately 1.5 percentage points to the equation. We anticipate the other roughly 5.5 percentage points to come from cost initiatives and expect that new vehicle variable cost efficiencies will be the largest contributor with approximately four percentage points to that. Of this total uplift, we anticipate approximately four percentage points will come specifically from synergies, showing the potential of this combination. We are also realistic about counter effects, which we expect to be approximately accounting for 1.5 percentage points, resulting from inflation, holdco cost, and other factors. Let me now spend a moment on the synergies because they are the central part of our value creation potential. The integration of Fuso and Hino is not just about combining two companies. It is about creating real value that neither company could have achieved alone. By 2032, we are targeting approximately JPY 110 billion in annual savings. A return on sales uplift of approximately four percentage points compared to our 2025 pro forma results. As you can see, we expect synergies to build progressively over time, starting with quick wins in the near term and accelerating significantly as our integrated platform strategy fully materializes across different segments. We expect synergies across all four value creation levers with the majority on the cost side. Growth-related synergies and new vehicle sales and parts and service contribute as well, but to a lesser extent. This matters because cost synergies are the most controllable and the most directly tied to integration execution, and that gives us high confidence in delivery. Let me give you more details on our different levers, starting with the top line. Starting from a combined base of 218,000 units vehicle sales in 2025, we are targeting approximately 280,000 units sales by fiscal year 2032, a growth rate of 3.7%. On revenue, we are targeting approximately JPY 2.8 trillion by fiscal year 2032. Our core business, new vehicle sales and parts and services, is expected to grow at a rate of 4.1% from 2025. Now, how do we get to 280,000 units? In Japan, we focus on regaining market share. In Southeast Asia, we will further expand our leadership through increased localization and stronger product offerings. In the rest of world markets, we will capitalize on our presence in high-growth regions to further strengthen our position. Across all regions, growth will be reinforced by a stronger product base, closing remaining gaps, rolling out the integrated platform strategy, and scaling our ZEV leadership in Japan and beyond. All of this is built on a strong foundation that has earned customer trust over decades. Two trusted brands, more than 55 years of presence in all key markets, local assembly in 25 countries, and a leading sales and service network supporting our customers. Let me now take you through each region in more detail, starting with Japan. In Japan, we have experienced meaningful volume gaps in the past across key segments due to specific product availability issues over the past years. The good news is we have addressed those and the recovery is on the way. Three product launches are central to this recovery. In the light-duty segment, the updated Hino Dutro is already available in the market. In the heavy-duty segment, the Hino Profia 13-liter, with an updated 13-liter engine, is also now available again. In the medium-duty segment, we will close the gap left with a new Fighter built on our integrated medium-duty platform. This is the first step towards our integrated platform strategy. Together, these launches restore the full lineups for our customers across both brands, and we aim to increase sales by approximately 13,000 units with those products by fiscal year 2029. On top of that, we aim for approximately 8,000 units of additional growth from other products, including zero-emission vehicles. With a stronger product base, we aim to return to market share levels above 50% in Japan, a reflection of our ambition to lead the Japanese market. Turning now to Southeast Asia, where we are already leading in the market today. Southeast Asia is a key market for Archion. Our foundation here is hard to replicate. Number 1 market share, 75 years of presence in the region, five countries with local production, and more than 750 service locations supporting our customers every day. From this base, we target 20,000 units of additional growth by fiscal year 2032, driven by four structural levers. Introducing a next-generation LDT model in Indonesia to extend our leadership in the largest market in the region. Increasing local content share, sharing capacity across several plants, and expanding Southeast Asian export hubs to serve international markets more efficiently. These levers will keep us ahead of both incumbent and new entrants and deliver a superior value proposition to our customers. Let's take a look at the rest of world. As we shared in March, Archion operates with a balanced global presence. Roughly one half of our sales comes from stable markets like Japan, Europe, and others, and the other half comes from high-growth markets. With a stronger product portfolio we are jointly building under Archion, we are in an even better position to benefit from the strong momentum in high-growth markets. On top of that, we are strengthening our production and sales operations to provide best possible support for our customers. Together, by 2032, we aim to deliver approximately 20,000 additional units compared to 2025 volume. Let me turn to our second pillar of growth, our parts and service business. Parts and service business is sizable and the recurring revenue adds significantly to the resilience of Archion. Our foundation here is genuinely hard to replicate. 3.8 million units in operation at more than 3,700 service points globally. With that, we target parts and service revenue of approximately JPY 630 billion by 2032. Our parts business across all markets, as well as our service business in Japan, will remain core drivers of our future growth. Those main businesses are complemented by our solutions business, which ranges from connected services, new products such as charging and battery recycling. Let's look one level deeper how we will further develop our parts and service business in Japan and beyond. In Japan, we have a strong track record of consistent growth. We have steadily expanded our service and parts business, including increasing the number of mechanics, resulting in continuously growing revenue per unit in operation. Our dense service network and the deep trust we have built with our customers are key strengths that truly set us apart. Building on this foundation, we are continuing to grow across our three business areas. In parts, we will expand our portfolio and start to integrate Fuso and Hino Parts logistics. In service, we will increase capacity to capture unmet demand and expand our offering with service contracts to drive traffic at our service locations. Finally, we will combine the strong capabilities of Fuso and Hino in connectivity, predictive maintenance, zero emission vehicle solutions, and others. For international markets, we aim to increase parts and service sales employing similar levers, focusing on strengthening our parts and sales, providing superior uptime and value to our customers. With that, let me hand over to Egiso-san to give you another perspective on our value creation levers. Back to Egiso-san. Thank you, Deppen-san. Let me turn to how we will become more efficient and more competitive to evolve as the new company. The integrated platform strategy is at the heart of our Archion integration. It is what unlocks better products for customers, cost efficiencies across the value chain, and stronger returns for shareholders. In each segment, we will develop the optimal platform, drawing on best components and technologies from Fuso, Hino, and partners as the basis for our future trucks. While doing so, a smart approach to differentiation will preserve the distinct Fuso and Hino brands. This approach creates four unique benefits for Archion, as you can see on the right-hand side. First is broad access to world-class technologies deployed at scale. Secondly, scale across all segments, driving cost competitiveness even further. The possibility to smartly utilize in-house and outsourced components. Fourthly and finally, clear benefits for our customers, meaning better products at a competitive price. In short, the integrated platform strategy is the engine that powers Archion, and we are already putting it in motion. We will launch the ELDT and the new MDT in Japan within FY 2026, our first steps toward the integrated platform strategy. Overseas MDT, LDT, and HDT will follow in sequence. By FY 2032, we aim for more than 85% of our total volume to run on integrated platforms. The integrated platform strategy is powerful because it doesn't just drive one area of improvement. It unlocks benefits across all four value creation levers. Importantly, these levers reinforce each other. The efficiency gains we capture in variable and fixed costs are partially reinvested into stronger products, better technology, and a broader portfolio. This virtuous cycle is what will allow us to accelerate growth through product competitiveness while delivering on our profitability targets. Archion will transition its production footprint in Japan to three focused plants, as you already know, Koga, Ōta, and Kawasaki, each with a clear role. The result is a step change in efficiency, with plant utilization targeted to be significantly higher versus today. Together with a higher share of overseas production, this will meaningfully improve our cost competitiveness. The integrated platform strategy will generate benefits across our business. The most significant impact is expected in variable costs, with an improvement of approximately 4 percentage points targeted by FY 2032. The largest is material costs. We will bring together our procurement and R&D teams, leverage our increased scale at max and redesign for cost competitiveness. On production costs, we will start sharing our world-class know-how and our talent base across Fuso and Hino. Similarly, in logistics, we will combine our logistics operations. We can expect quick synergies from this. All combined, we aim for 8%-10% in variable cost savings per vehicle over the seven years. This equals roughly 1%-2% of annual savings. Furthermore, we are also targeting approximately 1.5 percentage points of ROS uplift from fixed costs. First, through structural measures. Building on the plant consolidation, as we just discussed, complemented by global optimization of our component production. Second, through SG&A optimization. We can resolve duplication across central functions, align on a joint IT strategy, and leverage our combined scale in indirect procurement. We're still in the sixth week after our foundation, and we see further potential beyond what is already identified and consider 1.5 percentage points a conservative baseline. Turning to the second focus topic of today, the cornerstones of our technology portfolio, the foundation powering Archion's future. Archion follows three principles: focus on customers, right technology per market, and future readiness. Our customers span a vast range of applications and operate across markets with differing emission standards, safety regulations, and decarbonization timelines. Archion's broad technology portfolio and global scale become a competitive advantage for this complexity. Let me now show you how this translates into our technology portfolio. Across these three pillars, our portfolio addresses the pain points customers face every day. Powertrain, advanced vehicle technologies, and our service and solution ecosystem. Our approach to powertrain is based on a multi-pathway strategy. Our ICE and ZEV lineup stands for a credible path to carbon-neutral transportation. Our advanced safety features, connectivity, and intelligence systems address driver shortages and fleet efficiency, and also safety issues. Our service and solution system support customers throughout the entire life cycle of their vehicles. This portfolio not only solves real challenges our customers face today, but also supports them for the road ahead. Let us now take a closer look at our ZEV. As an ARCHION Corporation, we hold the number one ZEV market share in the Japanese truck market. With the broadest lineup, as you can see here, we are well-positioned to capture more of it. That puts us in a competitive position. With three leading products in the market already as of now, we will further expand our portfolio with a new Hino electric LDT coming within FY 2026. Looking ahead, we pursue a multi-pathway decarbonization strategy covering both BEV and hydrogen fuel cell to serve the full range of applications, meeting the customers' demands. We are well-positioned to grow alongside customer demand for carbon-neutral solutions. Finally, as CTO, I would like to highlight an area where I feel great pride in the progress we are making. Since April 1st, we're into the sixth week. Our product, R&D, and procurement teams have come together and worked towards the same goal with speed and energy. The results are already visible. Although they are not yet made public, we have established a joint product management team within Archion. The first two joint models are in the pipeline for FY 2026, and we have already launched joint supplier communication. I have been attending both of the meetings. This is just the beginning, and we are confident that there is much more to come. With that, let me hand over to Laligie-san. The contents that I have described and the finance overlap, and they are closely mixed together for us to set forth the business plan. Laligie-san, please. Thank you, Ogiso-san. Now let me put it all together in financial terms. As Karl introduced earlier, our financial target framework is built around four dimensions: growth, profitability, cash, and capital efficiency, complemented by a clear policy on capital structure and shareholder returns. On growth, the path from approximately JPY 2.2 trillion in FY 2025 pro forma to around JPY 2.8 trillion in 2032 is built on our regional growth and parts and service strategy. On profitability, more than tripling return on sales from 3.2% to more than 10% reflects the value creation potential of this unique integration. On cash and capital efficiency, our targets of 0.8-1 cash conversion and 15% return on equity reflect the discipline we are applying to working capital, asset utilization, and capital deployment as the business grows. On capital structure and returns, the midterm target of a dividend payout ratio of 40% and a debt-to-equity ratio at or below 0.5 reflect our commitment to a strong financial footing and attractive returns to our shareholders. This framework gives us and you a clear, transparent way to measure Archion's progress in the years ahead. Let me briefly explain how we think about each of these milestones. 2026 is our first year as Archion, the year we bring the company to life, and we are already aiming to improve profitability to 4.5% versus our baseline pro forma 2025, as explained yesterday. 2029 is our midterm target as a clearly measurable milestone on our path, with return on sales roughly doubling to 7%. 2032 is our long-term target, where we aim to achieve our full ambition of 10% or more return on sales. Let me now go deeper on synergies in terms of levers and timing. First, platform-independent synergies, many of these being quick wins we aim to capture early, like joint procurement, shared logistics, and first structural measures across Fuso and Hino. There are also growth measures by product initiatives such as the eLDT and the MDT we already announced. The second comes from our integrated platform strategy: superior products, leaner parts supply, and scaling procurement and production. These scale over time as we will roll out more platforms. We expect the largest contribution to our 4 percentage points of synergy-related return on sales uplift coming from cost efficiencies of approximately 3.5 percentage points. Synergy effects on the growth levers account for at least 0.5% uplift. Together, this is equivalent roughly to JPY 110 billion in operating profit impact in FY 2032. On R&D, synergies are deliberately reinvested to strengthen our product portfolio and accelerate CASE technologies. This is a strategic choice to build the foundation to win. As you can see, synergies ramp up over time. Early wins from platform-independent actions and the larger contribution coming as the integrated platform strategy fully materializes towards 2032. Now let's quickly turn to the bridge. Here we see our return on sales journey from 2025 pro forma starting point of 3.2% to our midterm target of 7% by FY 2029, and from there to our long-term target. In the near term, the focus is on recovery-related growth in vehicle sales in Japan and overseas, and on early cost savings, the most controllable and most immediate levers we have. We will capture quick wins on the cost side and roll out our first integrated platforms. Most of the counter effects, including the buildup of holdco and integration costs, also fall into these early years. The net result is a clear path to around 7% return on sales target by 2029. Towards 2032, as mentioned, significant synergies increasingly drive the uplift, both from the integrated platform strategy and from the structural integration of Fuso and Hino, bringing us to our 10% or more ROS target. This slide brings together our financial framework across 2029 and 2032. What is important here is that we are not just committing to a long-term ambition. We have clear targets for the midterm 2029 across every dimension. Additionally, our ambitious and constant targets on cash conversion and debt to equity reflect the financial discipline we apply consistently from day one. This phased approach gives you transparent milestones to measure our progress. To deliver on these targets consistently, we rely on a framework you have already seen at our Investor Day in March, and it remains the foundation of how we drive sustainable value creation at Archion. It rests on two pillars: disciplined capital allocation and active portfolio management, where we systematically assess the attractiveness of every business and take decisive action. Let's first focus on our capital allocation framework, which is designed to deliver a sound balance between investing for growth, financial resilience, and shareholder returns. We aim for sustainable cash generation driven by the value creation levers and synergies, supported by a continuous focus on working capital efficiency and reviewing our asset structure. We plan to allocate free cash flow before R&D and CapEx across four priorities. First, we plan 25%-30% to investment in future products and growth. Second, we plan 20%-25% to investment in our business backbone. Third, we plan 20%-25% to financial resilience, preserving balance sheet strength and giving us capacity for strategic and value-creating M&A. This also includes 7%-8% of free cash flow earmarked for the resolution of Hino's engine certification issue, which is in line with the provision already reflected in the balance sheet of Archion. Fourth, 20%-25% to shareholder returns, anchored by a 40% dividend payout ratio with a focus on steady growth. Let me elaborate now further on how we plan to invest into our business. Over 2026 to 2032, we expect to invest approximately JPY 1.15 trillion in future growth and maintaining our business backbone. Around JPY 650 billion investment into products and future growth. New products and the platform strategy, CASE technologies and services, as well as our dealership and service network. Around JPY 500 billion goes into sustaining and upgrading our business backbone, such as manufacturing plants, R&D for maintaining our current products, and our sales and IT infrastructure. This includes roughly JPY 50 billion dedicated to enabling the production network for our integrated platform strategy. Importantly, Archion has unique benefits when it comes to investment efficiency and effectiveness. By avoiding duplicate development, we free up capacity that we intend to reinvest for an even better product and service portfolio, as well as new technologies. Plant consolidation. As already shown today, we are already on the way to come to a more efficient footprint. Access to leading technologies from Daimler Truck and Toyota offers opportunities in several fields with efficient investments. The different vertical integration profiles of Fuso and Hino create further optimization opportunities. In short, this is a disciplined investment program enabled by the unique benefits of the Archion combination. Active portfolio management is guiding our thinking on where to play and where to invest. We will evaluate every opportunity based on two criteria, strategic attractiveness and financial attractiveness, and take clear action accordingly. Concrete examples of portfolio decisions are already underway, including the new Fuso MDT supplied by Hino and the bus joint venture with Foxconn. Going forward, we will apply this framework systematically across five core focus areas: new products and markets, make versus buy, core versus non-core, partnerships, and vertical integration. All decisions will be governed by a clear return on invested capital threshold, ensuring consistent, disciplined and transparent capital deployment. Let me close my part with five key takeaways on Archion's financial framework. First, we have a clear path to benchmark profitability of our 10+ return on sales target by 2032. Second, we will work on ensuring financial discipline in order to preserve balance sheet strength and generate sustainable cash flows. Third, we will employ stringent capital allocation, balancing investment into growth, shareholder returns, and financial resilience. Fourth, we have a clear focus on sustainable value creation, ensured through active portfolio management. Fifth, we aim for attractive shareholder returns anchored by a 40% dividend payout ratio with a focus on steady growth. Together, these are reflected in a clear and transparent financial framework that guides us and gives you, as investors, the visibility to track our progress. With that, let me hand back to Deb and San to summarize. Thank you. Thank you very much, Peter. I think the numbers speak for themselves. Before we close, I would like to leave with you what I want you to carry away from today. First of all, what brings us together at Archion? Bringing together two companies who have served as competitors in the past. We were very clear from the very beginning. Our mission is clearly defined where we want to take the company. Together, we will deliver transportation that connects people and goods for a brighter tomorrow. Our vision is to be the trusted partner for our stakeholders for all roads that lie ahead. These are not just words to us. We shared them in March with you, every day since day one, I've seen the Fuso and Hino, the Archion teams bringing these aspirations to life. This is what will guide every decision we make as Archion. Delivering on this vision and mission requires to create real measurable value. To do so, we have given ourselves clear targets that we will hold ourselves accountable to. For the midterm plan, we are aiming to roughly double the profitability by 2029, reaching 7% return on sales, and we want to triple it by 2032, reaching our 10%+ target. Beyond financial commitment, everything we share today comes back to three priorities: our customers, our contribution to society, and our ability to deliver. We deliver to this as one team. The picture shows our launch event, our leadership team, mechanics, drivers, customers, the people deeply involved in everything we presented today. This is Archion. We are now six weeks in, the Archion team is moving forward with great energy, determination, and conviction. That is what gives me confidence in the plan we've laid out today. Thank you very much for your time, your attention, and your trust. We look forward to receiving your questions. Thank you very much
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