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Securities Code : 6247 FY2026 - FY2028 Medium - term Business Plan -Challenge for Climate Change- Challenge 2028 > HISAKA WORKS , LTD . May 15 , 2026 with hopeful technology HISAKA "
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New Medium-term Business Plan "Challenge2028" PAGE 1/27 Contents 1. Review of Previous Medium-Term Business Plan "G-23" 2. New Management Policy ・ New Management Policy ・ Management Vision ・ New Materiality 3. New Medium-term Business Plan “Challenge2028” ・ New Medium-term Business Plan “Challenge2028” ・ Key Strategy ・ Growth Strategy ・ Strategy by Segment ・ Strengthening Foundation ・ Numerical Targets ・ Numerical Targets (By Segment)
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New Medium-term Business Plan "Challenge2028" PAGE 2/27 Review of Previous Medium-Term Business Plan "G-23"
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New Medium-term Business Plan "Challenge2028" PAGE 3/27 Review of Previous Medium-Term Business Plan "G-23" (Company-wide) ■Growth Strategy ■Strengthening Management Base ●Establishment of Ikoma Plant ●Started reconstruction of Konoike Plant ●Establishment of overseas bases ●Reorganization of group company ■Capital Management and Shareholder Returns ●Conducting management with awareness of cost of capital and stock price ●Raising dividend levels ●Purchase and retirement of treasury shares ■New Product Development ●Energy-saving heat sterilization equipment ●Environmentally-friendly jet dyeing machine Under the policy of "Through individual challenges, we will realize a dynamic employee group along with business development," we promoted growth strategy, new product development, strengthening of management base, and capital policy in an integrated manner, and worked on building a foundation for the next phase of growth. ●Next-generation general-purpose heat exchanger "ZEX" ●PFA-lined ball valve ●High-pressure floating ball valve, etc.
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New Medium-term Business Plan "Challenge2028" PAGE 4/27 Review of Previous Medium-Term Business Plan "G-23" (By Segment) Heat Exchanger Segment Key Activities ●Achievements in the carbon neutral market (CO2 capture, nuclear power-related projects, etc.) ●Strengthening overseas maintenance services ●Strengthening production base through reconstruction of Konoike Plant ●Capturing maintenance demand Results of operations ●Although profit margins declined due to the impact of cost increases,sales increased, achieving steady growth Process EngineeringSegment Key Activities ●Improved productivity through the opening of Ikoma Plant ●Progress in collaboration with Group companies including overseas, expanding business areas ●Completed multiple large plant projects Results of operations ●Achieved stable operation of the newly established Ikoma Plant with sales and profits increasing steadily Various initiatives were implemented in each business to achieve the medium-term business plan.
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New Medium-term Business Plan "Challenge2028" PAGE 5/27 Review of Previous Medium-Term Business Plan "G-23" (By Segment) Valve Segment Results of operations ●Orders and sales steadily increased,absorbing cost increases and securing profitability Key Activities ●Sales expansion through creation of new products ●Strengthened ability to handle large projects ●Strengthening sales in Southeast Asian markets Corporate Key Activities ●Conducting management with awareness of cost of capital and stock price ●Strengthening shareholder returns ●Promoting the penetration of corporate philosophy “HISAKA MIND” in HISAKA group ●Renewal of employee compensation system and implementation of well-being improvement measures ●Promoting measures to reduce greenhouse gas emissions at business sites ●Publication of Integrated Report ●Disclosure based on the TCFD recommendations ●Research and development of new businesses, transition to commercialization phase
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New Medium-term Business Plan "Challenge2028" PAGE 6/27 Previous Medium-Term Business Plan "G-23" Performance Trends The three main businesses achieved steady growth, with sales reaching record highs, realizing sustainable growth. On the other hand, operating profit and ordinary profit fell short of the plan due to cost increases exceeding expectations, but due to the reduction of strategic-shareholdings Gains from the sale of shares were generated, and profit attributable to owners of parent exceeded the plan. G-20 2023 Years ended Year 2024 Years ended Year 2025 Years ended Actual results Actual results B-A A B A 34,621 37,999 42,269 42,591 41,000 23.0% 34,074 34,180 38,353 44,890 40,000 31.7% 1,912 2,457 2,930 3,303 3,600 72.8% 5.6% 7.2% 7.6% 7.4% 9.0% +1.8pt 2,392 2,896 3,391 3,620 3,800 51.4% 2,040 2,420 3,782 3,449 2,600 69.0% 3.5% 3.8% 4.1% 4.4% 4.9% +0.9pt 3.7% 4.2% 6.3% 5.6% 4.5% +1.9pt (Millions of yen) Orders received Net Sales Operating Profit Profit Ratio Actual results Initial target Year 2026 Years ended March 31 G-23 Profit Attributable to Owners of parent ROE Actual results Rate of change Ordinary Profit ROA
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New Medium-term Business Plan "Challenge2028" PAGE 7/27 Previous Medium-Term Business Plan "G-23" Results by Segment (Millions of yen) Results Composition ratio Results Composition ratio Change Rate of change Heat Exchanger Segment 14,059 40.6% 17,193 40.4% 3,134 22.3% Process Engineering Segment 15,536 44.9% 20,000 46.9% 4,464 28.7% Valve Segment 4,934 14.2% 5,324 12.5% 390 7.9% Other 90 0.3% 72 0.2% ▲ 18 ▲ 20.0% 34,621 100.0% 42,591 100.0% 7,970 23.0% Heat Exchanger Segment 13,418 39.4% 17,229 38.4% 3,811 28.4% Process Engineering Segment 15,869 46.6% 22,405 49.9% 6,536 41.2% Valve Segment 4,696 13.8% 5,183 11.5% 487 10.4% Other 90 0.2% 72 0.2% ▲ 18 ▲ 20.0% 34,074 100.0% 44,890 100.0% 10,816 31.7% Heat Exchanger Segment 814 39.6% 988 27.9% 174 21.4% Process Engineering Segment 833 40.6% 2,129 60.2% 1,296 155.6% Valve Segment 339 16.5% 366 10.4% 27 8.0% Other 66 3.3% 52 1.5% ▲ 14 ▲ 21.2% Subtotal 2,054 100.0% 3,537 100.0% 1,483 72.2% Adjustment amount ▲ 142 ― ▲ 234 ― ▲ 92 ― 1,912 ― 3,303 ― 1,391 72.8% FY2022 FY2025 Compared to FY2022 Results Orders received Net Sales Operating profit
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New Medium-term Business Plan "Challenge2028" PAGE 8/27 New Management Policy
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New Medium-term Business Plan "Challenge2028" PAGE 9/27 new management policy Corporate Philosophy: HISAKA MIND (Company Motto, Creed, Five Principles, Code of Conduct) Purpose: To be a manufacturer that can stably supply high-quality “machineries" and "services" that realize "energy savings" and "labor savings" capable of resolving social issues. Management Vision Challenge for Climate Change Medium-term Business Plan Challenge2028 ➤ Putting the Management Vision "Challenge to Climate Change" into Practice ➤ Achieving sustainable growth and enhancement of corporate value Materiality Responding to Climate Change Providing Responsible Products and Services Safe, Secure, and Rewarding Work Environment Strengthening Management Base ➤ Achieving operating profit of 5,000 million yen or more in FY2028 ➤ Achieving ROE of 8% or more in FY ending March 2031, aiming to achieve PBR of 1x or more at an early stage Based on our corporate philosophy and purpose, we formulated a new medium-term business plan based on the newly established management vision and the revised materiality (key issues), and adopted it as our new management policy.
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New Medium-term Business Plan "Challenge2028" PAGE 10/27 Management Vision 1) Contributing to customers' energy savings and CO2 reduction through products and service 2) Contributing to addressing various social issues caused by climate change 3) Promoting effective use of energy in business activities Challenge for Climate Change Approach We have newly established a "Management Vision" to contribute to solving climate change, which is the cause of all social issues. We will contribute to the realization of a sustainable society by providing products that help mitigate climate change (energy-saving, renewable energy, CO 2 capture products, etc.) and products and services that help to solve social issues.
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New Medium-term Business Plan "Challenge2028" PAGE 11/27 New Materiality Materiality 14 Issues to Be Addressed Applicable SDGs E Responding to Climate Change Reducing CO2 Emissions Contributing to the recycling of resources Promoting Energy Savings and Utilizing Renewable Energy Supply of Environmentally-friendly Products and Services S Providing Responsible Products and Services Providing Products and Services that Realize Labor Savings stable supply of the product Improving Customer Satisfaction and Quality Safe, Secure, and Rewarding Work Environment Improving Employee Engagement Providing Opportunities for Growth and Success for Diverse Human Resources Development of Fulfilling Work Environment Respecting human rights Workplace safety and hygiene G Strengthening Management Base Stabilizing Management Base through Strengthening Governance Strengthening compliance In line with the current business environment, we reviewed our materiality (key issues), identified four materialities from the perspective of "important social issues where our opportunities and risks exist," and established 14 action items.
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New Medium-term Business Plan "Challenge2028" PAGE 12/27 The new medium-term management plan "Challenge2028"
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New Medium-term Business Plan "Challenge2028" PAGE 13/27 New Medium-term Business Plan Challenge2028 We have formulated the new medium-term business plan "Challenge2028" to implement our management vision "Challenge for Climate Change." In this plan, we aim to achieve both social and economic value through the implementation of our vision. In addition, we will achieve sustainable growth and improvement of corporate value through "Growth Strategy" and "Strengthening Foundation," and aim to achieve operating profit and ROE targets, aim to achieve and improve PBR. ➤ Implementation of Management Vision "Challenge for Climate Change" ➤ Achieving sustainable growth and improvement of corporate value ➤ Achieving operating profit of 5 billion yen or more in FY2028 ➤ Achieving ROE of 8% or more in FY2030, aiming to achieve PBR of 1x or more at an early stage
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New Medium-term Business Plan "Challenge2028" PAGE 14/27 Growth Strategy Challenge2028 Key Strategy Strengthening Foundation ①Improvement and development of existing products, new product development (Energy-saving and labor-saving solutions aligned with customer needs) ②Strengthening long-term relationships with customers (Strengthening parts, maintenance, and software business) ③Price strategy and cost competitiveness strengthening ④Creating new businesses, developing new markets (Expansion of decarbonization and environment-related areas) ⑤Reallocation of management resources to priority areas Strengthening Profitability and Competitiveness of Existing Businesses Optimize the business portfolio ●Securing and developing human resources ●Penetration of philosophy and strengthening execution Strategic Strengthening of Human Capital ●Strengthening KPI management ●Improving operational efficiency through digitalization, etc. Productivity Improvement ●Measures to "realize management that is conscious of the cost of capital and stock price“ ●Strengthening governance Improving Capital Efficiency and Corporate Value In Challenge2028, we will proceed the implementation of our management vision "Challenge for Climate Change," sustainable growth, and improvement of corporate value through "Growth Strategy" for business expansion and profit improvement, and "Strengthening Foundation" including strengthening human capital, productivity, and capital efficiency.
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New Medium-term Business Plan "Challenge2028" PAGE 15/27 Challenge2028 Growth Strategy Major Focus Markets Ball Valve General-purpose Valve (Valve Business) Energy-saving and Labor-saving Solutions (Process Engineering Business) Overseas Operations Core Platform Businesses Growth Driver Area Growth Potential Area Plate Heat Exchanger Medium and Small General- purpose Products (Heat Exchanger Business) Food sterilization equipment, pharmaceutical sterilization equipment, culture tanks, dyeing and finishing equipment (Process Engineering Business) Expansion of Application- specific Valves (Valve Business) Developing New Markets/ Development of New Applications (Heat Exchanger Business)Parts and Maintenance Business Focused Investment in Growth Areas Creation of new businesses Strengthening Competitiveness of Platform Businesses New Business (Major Products) Market related to the business domains of our group among 17 strategic fields of the government ■AI/Semiconductors ■Digital/Cybersecurity ■Shipbuilding ■Drug Discovery/Advanced Medical Care ■Resources/Energy Security/GX ■FoodTech Other markets and demand emphasized by our group ■Energy savings (environmentally-friendly products, etc.) ■Labor savings (automation equipment, etc.) ■Aftermarket ■Chemical industry (Fine Chemicals) ■Overseas markets By improving the competitiveness of core businesses to enhance business stability, and through focused investment in growth areas , we will drive company growth and work on creating new businesses that will become new pillars of our business.
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New Medium-term Business Plan "Challenge2028" PAGE 16/27 Challenge2028 Strategy by Segment Heat Exchanger Business ●Proposing heat utilization solutions based on plate heat exchangers ●Providing products with prices and specifications tailored to customer needs Value provided FY2028 Plan ●Clarifying the business model for standalone heat exchangers and reshaping the earnings base ●Realizing stable business operations by strengthening competitiveness in priority markets Business Policy FY2025 (Actual) FY2028 (Plan) Orders received 17.19 billion yen 22.27 billion yen Net Sales 17.22 billion yen 23.47 billion yen Operating Profit 0.98 billion yen 2.55 billion yen Profit Ratio 5.7% 10.9%
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New Medium-term Business Plan "Challenge2028" PAGE 17/27 Challenge2028 Segment-by-Segment Strategy Priority Markets Key Activities ●Contributing to a Carbon-Neutral Society by Providing Heat Exchangers for CO2 and Waste Heat Recovery ●Development and market establishment of next- generation general-purpose models ●Strengthening maintenance services business ●Productivity improvement, CCC improvement ●Promoting collaboration with other companies CO2 Capture Securing orders for ultra-large CO2 capture projects for domestic and overseas markets LNG Plants Securing orders for LNG-related projects until decarbonized fuels become widespread Shipping and marine Improving supply capabilities in China and South Korea, strengthening maintenance services for domestic shipowners and shipyards Power plants Supplying products to high-efficiency thermal power plants and responding to nuclear power plant restarts and innovative next-generation light water reactors Data Center Sales of cooling heat exchangers to the rapidly expanding data center market For CO2 capture equipment heat exchanger maintenance services
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New Medium-term Business Plan "Challenge2028" PAGE 18/27 Challenge2028 Strategy by Segment Process Engineering Business ●Providing energy-saving and environmental products that contribute to SDGs and ESG management ●Provision of automated and efficient facilities and services that contribute to improved productivity and reduced costs Value provided ●Expanding business areas by enhancing proposal and response capabilities based on customer value ●Establishing a stable earnings base through addressing challenges for business growth Business Policy FY2028 Plan FY2025 (Actual) FY2028 (Plan) Orders received 20.00 billion yen 25.00 billion yen Net Sales 22.40 billion yen 25.00 billion yen Operating Profit 2.12 billion yen 1.94 billion yen Profit Ratio 9.5% 7.8%
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New Medium-term Business Plan "Challenge2028" PAGE 19/27 Challenge2028 Strategy by Segment Priority Markets Key Activities ●Contribute to solving social issues by providing products and services that contribute to energy conservation and labor saving ●Expanding after-sales services and stimulating after- sales demand ●Efficiency improvement and manufacturing cost reduction through standardization of base models ●Productivity improvement, CCC improvement ●Promoting collaboration with Group companies Energy and labor savings Developing environmentally friendly products and FA (factory automation) products, and enhancing our ability to meet customers' energy- and labor-saving needs Liquid Plant Expanding market share in the beverage market through collaboration with a Group company (HISAKA Products) Drug substance (Cultivation) Strengthening capabilities for large-scale cultivation plants through collaboration with a Group company (Komatsugawa Chemical Engineering) Overseas markets Strengthening sales of food sterilization equipment and pharmaceutical sterilization equipment, developing new markets for dyeing and finishing equipment After-sales service Strengthening after-sales service provision systems, strengthening sales of peripheral equipment and services for main units Fully automatic continuous sterilization and cooling equipment Milk beverages plant Cultivation plant
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New Medium-term Business Plan "Challenge2028" PAGE 20/27 Challenge2028 Segment-by-Segment Strategy Valve Business ●Achieve optimal production lines through the provision of highly functional products related to fluid control and proposal and response to optimization by use Value provided ●Reviewing business development based on changes in the business environment and market structure ●Enhancing development processes and organizational collaboration to accelerate new product creation Business Policy FY2028 Plan FY2025 (Actual) FY2028 (Plan) Orders received 5.32 billion yen 6.70 billion yen Net Sales 5.18 billion yen 6.50 billion yen Operating Profit 0.36 billion yen 0.70 billion yen Profit Ratio 7.1% 10.8%
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New Medium-term Business Plan "Challenge2028" PAGE 21/27 Challenge2028 Strategy by Segment Priority Markets Key Activities ●Development and provision of new products related to new energy ●New product development for priority markets ●Cost reduction through improvement and development of existing products ●Productivity improvement, CCC improvement ●Promoting collaboration with Group companies Industrial gas Strengthening lineup for industrial gas including new energy Water supply and sewerage Strengthening sales network for water supply and sewerage Fine chemicals Expanding sales in the materials market centered on high-performance resins Pharmaceuticals Collaboration with Process Engineering Business, new product development Food products Metal Touch Ball Valve PFA lining Diaphragm valve PFA lining Ball Valve
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New Medium-term Business Plan "Challenge2028" PAGE 22/27 Challenge2028 Strengthening Foundation Strengthening Foundation ●Securing and developing human resources ●Penetration of philosophy and strengthening execution Strategic Strengthening of Human Capital ●Strengthening KPI management ●Improving operational efficiency through digitalization, etc. Productivity Improvement ●Measures to "realize management that is conscious of the cost of capital and stock price“ ●Strengthening governance Capital efficiency and Improvement of corporate value We will strengthen the company's foundation through strengthening human capital, improving productivity, and enhancing capital efficiency. ➤ See press release entitled "Responses to Realize Management with an Awareness of Capital Costs and Stock Prices (Progress Report)" (disclosed on May 15, 2026) ➤ Promote autonomous management of Group companies by strengthening governance and management systems ➤ Securing and training of human resources through the new employee treatment system renewed in the previous medium-term plan ➤ Develop "human resources who take on challenges and grow" by instilling HISAKA MIND (corporate motto, creed, five principles, and action guidelines) ➤ Strengthen the implementation of various measures through enhanced KPI management → See P23 ➤ Strengthening core systems and enhancing design and development capabilities through AI utilization
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New Medium-term Business Plan "Challenge2028" PAGE 23/27 Challenge2028 Strengthening Foundation ROE improving ROIC improving Capital strategy To boost operating income margin To enhance capital efficiency Sales increase Improvement of profitability Cost reduction Improvement in working capital turnover Improvement of fixed asset turnover ●New product development, improvement and development of existing products ●Developing new markets ●Strengthening parts, maintenance, and software business ●Creation of new businesses ●Improving cost strength ●Reallocation of management resources ●Optimization of invested capital ●CCC (Cash Conversion Cycle) improvement ●Shortening lead time ●Utilization and disposal of idle assets ●Boost shareholders returns ●Reduction of policy shareholdings To improve ROE, we will strive to achieve management indicators by setting KPIs for each business division and Group company using the ROIC tree as a common language within the company. *For capital strategy, please refer to "Measures for Managing with the Cost of Capital and Stock Price in Mind (Progress Report)" disclosed on May 15, 2026.
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New Medium-term Business Plan "Challenge2028" PAGE 24/27 Challenge2028 Financial Targets 42.5 billion yen → 54.0 billion yen Orders received 44.8 billion yen → 55.0 billion yen sales 3.3 billion yen → 5.0 billion yen n → 5,000 million yen Income from Operations 7.4% → 9.1% Operating Profitability 3.4% → 5.5% ROIC 5.6% → 7.0% ROE FY2025 → FY2028
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New Medium-term Business Plan "Challenge2028" PAGE 25/27 Challenge2028 Financial Targets Ｇ-20 Ｇ-23 Challenge2028 The final year of the plan The final year of the plan The final year of the plan FY2022 Autual FY2025 Actual(Ａ) FY2028 Plan(Ｂ) 34,621 42,591 54,000 26.8% 34,074 44,890 55,000 22.5% 1,912 3,303 5,000 51.3% 5.6% 7.4% 9.1% + 1.7pt 2,392 3,620 5,300 46.4% 2,040 3,449 4,200 21.7% 3.5% 4.4% 6.8% + 2.4pt 3.7% 5.6% 7.0% + 1.4pt 2.4% 3.4% 5.5% + 2.1pt Ordinary profit Profit attributable to owners of parent ＲＯA ＲＯＥ ＲＯＩＣ Profit Margin （Millions of yen） Rate of Change ( B-A / A ) Orders received Net sales Operating profit
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New Medium-term Business Plan "Challenge2028" PAGE 26/27 Challenge2028 Financial Targets (by Segment) (Millions of yen) Results Composition ratio Plan Composition ratio Change Rate of change Heat Exchanger Segment 17,193 40.4% 22,270 41.2% 5,077 29.5% Process Engineering Segment 20,000 46.9% 25,000 46.3% 5,000 25.0% Valve Segment 5,324 12.5% 6,700 12.4% 1,376 25.8% Other 72 0.2% 30 0.1% ▲ 42 ▲ 58.3% 42,591 100.0% 54,000 100.0% 11,409 26.8% Heat Exchanger Segment 17,229 38.4% 23,470 42.7% 6,241 36.2% Process Engineering Segment 22,405 49.9% 25,000 45.4% 2,595 11.6% Valve Segment 5,183 11.5% 6,500 11.8% 1,317 25.4% Other 72 0.2% 30 0.1% ▲ 42 ▲ 58.3% 44,890 100.0% 55,000 100.0% 10,110 22.5% Heat Exchanger Segment 988 27.9% 2,550 49.0% 1,562 158.1% Process Engineering Segment 2,129 60.2% 1,940 37.3% ▲ 189 ▲ 8.9% Valve Segment 366 10.4% 700 13.5% 334 91.3% Other 52 1.5% 10 0.2% ▲ 42 ▲ 80.8% Subtotal 3,537 100.0% 5,200 100.0% 1,663 47.0% Adjustment amount ▲ 234 ― ▲ 200 ― 34 ― 3,303 ― 5,000 ― 1,697 51.4% FY2025 FY2028 Compared to FY2025 Results Orders received Net Sales Operating profit
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New Medium-term Business Plan "Challenge2028" PAGE 27/27 Origin of the company name The name HISAKA derives from “日 (HI)” from Japan and “阪(SAKA)” from Osaka , incorporating the desire to be a vibrant company like Osaka , a city synonymous with commerce in Japan (NOTE)The data and future forecasts disclosed in this document are based on judgments made as of the date of publication of this document and available information and are subject to change due to various factors. Accordingly, there is no guarantee that these targets and forecasts will be achieved or that future performance will be achieved. These information is subject to change without notice. Accordingly, the reader is urged to check this information and materials against information obtained by other means and to make decisions as to whether to use it. We assume no responsibility for any damages resulting from the use of this document. Origin of logo mark The design is a combination of the Japanese character “日” which stands for Japan, and “S” for stainless steel. The circular design signifies maturity, reflecting our aspiration from both our employees and products to grow and evolve with rich human qualities. ＜Contact Us＞ HISAKA WORKS , LTD. CORPORATE MANAGEMENT DIV. IR & PR SECT WEB ： https://www.hisaka.co.jp e-mail ： ir@hisaka.co.jp TEL ： 06-6363-0015 〒530-0057 2-12-7 SONEZAKI KITA-KU OSAKA CITY