Slide 1: FY2021 Consolidated Financial Results
FY2021 Consolidated Financial Results April 28th, 2021 AISIN CORPORATION
Slide 2: Initiatives to Date
1 Initiatives to Date Group-wide efforts to drive the two key reforms • Transformation of corporate structure in response to CASE • Restructuring into a corporate entity with high profitability Exit from or rebuilding of uncompetitive existing businesses & introduction of lean organizational structu
Slide 3: Group Action Guidelines
2 Initiatives to Date Group Action Guidelines 1. Proactively read the future, and take swift positive action Formulation of new Corporate Principles 2. Exit from uncompetitive businesses without exception Exit from bed and sewing machine business 3. Collaboration is evolving from Separate Management
Slide 4: Business
3 2 Business
Slide 5: Today's Presentation
4 Today’s Presentation I. 2023 Targets: 1. Medium-Term Management Plan Progress of Management Targets for 2023 Medium-term 2. Powertrain unit sales forecast Management Plan Estimated sales of brake products 3. Progress in fixed cost reduction ・ What we want to be in 2030 ・ Revolution in business “A
Slide 6: Medium-Term Management Plan: Management Targets for 2023
I. 2023 Target: Progress of Medium-term Management Plan 5 1. Medium-Term Management Plan: Management Targets for 2023 IR Material (April 2019) Aiming to achieve an operating profit margin of at least 7% in FY2023, after bottoming out in FY2019. (Trillions of yen) Revenue from CASE Revenue from exist
Slide 7: Powertrain unit sales forecast
I. 2023 Target: Progress of Medium-term Management Plan 6 2. Powertrain unit sales forecast ・ Steadily capture ICE demand until 2023. 2500 ・ Steadily expand sales to the rapidly expanding electrification market after 2023. Ratio of electrification 23% 7% 9% 1200 990 270 Share of (10,000 units/year)
Slide 8: Estimated sales of brake products
I. 2023 Target: Progress of Medium-term Management Plan 7 Estimated sales of brake products ・ Leveraging our strong results in the HV market, we will strengthen the product lineup to expand sales of our cooperative regenerative brake systems. ・ Expanding the market for EPBs, which is expected to gro
Slide 9: Progress in fixed cost reduction
I. 2023 Target: Progress of Medium-term Management Plan 8 Progress in fixed cost reduction Promoting further efficiency improvement, including the effects of integration, by FY 2023 95 bn yen ・ Creation of synergy effects (System integration, business By FY2023 consolidation/elimination) Bringing fo
Slide 10: Case Study: Reorganization of Subsidiaries
I. 2023 Target: Progress of Medium-term Management Plan 9 [Case Study] Reorganization of Subsidiaries Promoting the consolidation and elimination of unnecessary functions of subsidiaries in the Group and globally. Target setting completed for 70% of the 51 themes covered. Efficiency of Consolidation
Slide 11: Summary: Management Targets for 2023
I. 2023 Target: Progress of Medium-term Management Plan 10 [Summary] Medium-Term Management Plan: Management Targets for 2023 Aiming to achieve operating profit margin of at least 7% in FY2023 as originally planned despite slowdown in revenue due to COVID-19. (Trillions of yen) 5 Revenue from CASE R
Slide 12: Today's Presentation
11 Today’s Presentation I. 2023 Targets: 1. Medium-Term Management Plan Progress of Management Targets for 2023 Medium-term 2. Power training unit sales forecast Management Plan Estimated sales of brake products 3. Progress in fixed cost reduction ・ What we want to be in 2030 ・ Revolution in busines
Slide 13: New Group Corporate Principles as New Aisin
II. Vision for 2030 12 Enhanced Vision: Formulated New Group Corporate Principles as New Aisin Initiatives to Date Focusing on the next 50 years with AW Merger (1) Transformation of corporate structure in response to CASE as “Aisin’s Compass” (2) Restructuring into a corporate entity with high New C
Slide 14: AISIN Group's Vision for 2030
II. Vision for 2030 13 AISIN Group’s Vision for 2030 Aiming to be a corporate group called a partner by our customers by providing solutions to social issues and innovating secure and comfortable “movement” to bring our philosophy: Inspiring “Movement,” Creating Tomorrow. A solutions company realizi
Slide 15: Target Items
II. Vision for 2030 14 Target Items Setting goals for each stakeholder Our Reduction rate of CO2 emissions Our SDGs: Priority Issue KPIs Colleagues Society Revenue ratio of Customers during manufacturing (vs. 2013) solution-oriented products Example: Job satisfaction index [％] [％] [points] +50 100 5
Slide 16: AISIN Group's Growth Trend for Vision 2030
II. Vision for 2030 15 AISIN Group's Growth Trend for Vision 2030 We have positioned the next 10 years as “A Decade of Self-Transformation” in order to solve increasingly serious social issues. As such we will continue to boldly take on the challenges of the future, setting ambitious goals while ant
Slide 17: Enhancing solution-based products
II. Vision for 2030 16 Enhancing solution-based products that contribute to the resolution of social issues Mobility platform Business Creation Shared shuttle bus service Logistics support Entry systems that contribute to that contributes to solving problems free movement by providing services Provi
Slide 18: Composition Ratio of Solution-oriented Products in each Business Territory
II. Vision for 2030 17 Composition Ratio of Solution-oriented Products in each Business Territory Integrated Control and Vehicle Dynamics Entry systems that contribute to safe and comfortable transportation that contribute to free movement 50％ [Powertrain] Electrification products [Body] 24％ 9％ 60％
Slide 19: Revolution in Aisin's Business Structure
II. Vision for 2030 18 Revolution in Aisin’s Business Structure Aiming for growth that exceeds the market evolution, “A decade of changing what’s inside” for sustainable growth ¥5 trillion 3,525.7 bn Solution-oriented 17％ products More than 60% Existing products 83％ 40％ FY2020 FY2030 % (Comp.)
Slide 20: Electrification Strategy: Lineup of electrified products
II. Vision for 2030 ~ Electrification Strategy 19 Lineup of electrified products Expanding sales of products in related fields where the market is growing along with electrification Regenerative Forecasting the growth rate of the brakes electrification market Cooperative 6 times regenerative in 10 y
Slide 21: Unit Sales of Powertrains
II. Vision for 2030 ~ Electrification Strategy 20 Unit Sales of Powertrains ・ While steadily responding to ICE until around 2023, prepare for the rapidly expanding electrification market. 2500 ・ The ratio of electrified vehicles will increase to 60% or more in 2030. 80% More than 60% Ratio of electr
Slide 22: eAxle Market Trends and Targets
II. Vision for 2030 ~ Electrification Strategy 21 eAxle Market Trends and Targets Customers’ needs for modules will expand in the compact car and high output markets 250 (10,000 units/year) 《Compact Car Market》 《High Output Market》 Miniaturization technology High efficiency and high added value 200
Slide 23: How to Market Compact Cars
II. Vision for 2030 ~ Electrification Strategy 22 How to Market Compact Cars (mini and A-segment) Development of a unit for mini and A-segment cars by utilizing the miniaturization design technology cultivated in AT (1) [Ultra-compact EV] • High output secured by permanent magnet synchronous motor •
Slide 24: Targeting the D/E-Segments and Commercial Vehicle Markets
II. Vision for 2030 ~ Electrification Strategy 23 Targeting the D/E-Segments and Commercial Vehicle Markets ~ Product Lineup Supporting High Efficiency and High Driving Force Developing and expanding sales of high-efficiency, high-performance units for SUVs, luxury, and commercial vehicles Rear eAxl
Slide 25: Addressing HVs
II. Vision for 2030 ~ Electrification Strategy 24 Addressing HVs Steadily capturing the growing HV market for the time being until full-scale EV market penetration by refining existing technologies System output (kW) FF 1-Motor 300 200 2-Motor eAxle 100 0 Vehicle weight 2000 (kg) 1000 With China Roa
Slide 26: Thermal Management System
II. Vision for 2030 ~ Electrification Strategy 25 Thermal Management System Proposing a cooling system for EV/HEV with electric pumps at its core for higher efficiency Pump Chiller A/C Battery H/P Valve eAxle/ Electric heater Inverter Motor Valve Valve Inverter Cooling Modules Valve Electric water p
Slide 27: Body and Vehicle Safety Business
II. Vision for 2030 26 Body and Vehicle Safety Business [Body] Shifting to high value-added system products Exit from unprofitable products System products Resource intensive System products High growth potential ・Power sliding door OP margin ・Power back door システム System ・Sunroof ・Entry systems 商品 p
Slide 28: Integrated Control and Vehicle Dynamics
II. Vision for 2030 27 Integrated Control and Vehicle Dynamics Becoming a partner for vehicle dynamics systems that support Driving, Turning, Stopping, and Comfort Mobility MaaS, Sharing, etc. Explained on the next page Companies Location-based services (LBS) Car manufacturer Vehicle / Electronics P
Slide 29: Initiatives for Mobility Service Platform
II. Vision for 2030 ~ CSS Business 28 Initiatives for Mobility Service Platform Building a platform based on advanced location information technology cultivated through car navigation system. Developing and providing services to solve various social issues in collaboration with external parties. Col
Slide 30: New Business: Expansion to multiple areas
II. Vision for 2030 ~ New Business 29 Began using ultra-fine water particles from our proprietary special polymer membrane cartridges in various fields, including beauty care. [The world’s smallest*1 ultra-fine water particles] Special polymer *1 membrane cartridges Steam particles Water molecules W
Slide 31: Application of Core Technologies to Industrial Equipment
II. Vision for 2030 ~ New Business 30 Application of Core Technologies to Industrial Equipment Applying core technologies cultivated in automotive parts to equipment at manufacturing sites Sales start Small Precision Gear Pump (ESC) in FY2021 without change ESC module Componentry (Gear Pump) High Pr
Slide 32: R&D and Investment Orientation
II. Vision for 2030 31 R&D and Investment Orientation Development expenses and investments shifted to solution-based products Investment efficiency is followed by ROIC Development expense Solution-oriented product ratio 55％ FY2020 FY2030 24％ Investment FY2020 FY2030
Slide 33: Appropriate Level of Investment in DC Business
II. Vision for 2030 32 Appropriate Level of Investment in DC Business Reforming the Die-casting business, which has long been unprofitable. Changing business structure to pursue quality with an awareness of ROIC 30% reduction in the number of lines, mainly low- profit small DCs Productivity improvem
Slide 34: Initiatives for DX
II. Vision for 2030 33 Initiatives for DX Promoting DX to create new businesses and to improve the efficiency of existing operations [Image of the Digital Management Platform] Social issues to be resolved Data-driven management Location-based information Preparing 3D virtual products for production
Slide 35: Improving Business Efficiency through DX
II. Vision for 2030 34 Improving Business Efficiency through DX Use of DX to fundamentally change operations and to improve efficiency Cyber Factory 3D Model ■Priority Measures Processing By FY2025 verification (1) Management Resources Protection Standardization and streamlining of Operations analys
Slide 36: Target Items
II. Vision for 2030 35 Target Items Our Reduction rate of CO2 emissions Our Colleagues Society Revenue ratio of Customers SDGs: Priority Issue KPIs during manufacturing (vs. 2013) solution-oriented products [％] [％] Example: Job satisfaction +50 100 [points] index 5 *Employee awareness survey Reducti
Slide 37: Today's Presentation
36 Today’s Presentation 1. Medium-Term Management Plan I． 2023 Targets: Management Targets for 2023 Progress of Medium- term Management 2. Power training unit sales forecast Plan Estimated sales of brake products 3. Progress in fixed cost reduction ・ What we want to be in 2030 ・ Revolution in busine
Slide 38: CO2 Reduction Targets for Production and Products
III. Carbon neutral by 2050 37 CO2 Reduction Targets for Production and Products (announced in October 2020) Goals (milestones) for FY2030 ■Reducing CO2 emissions from product manufacturing through use and disposal toward a low-carbon society FY2019 FY2020 FY2030 KPI Results Targets Targets Manufact
Slide 39: Toward a 35% Reduction in Production CO2 by 2030
III. Carbon neutral by 2050 38 Toward a 35% Reduction in Production CO2 by 2030 ・ Promoting the reduction of production CO2 emissions, and make all electrified products “Production CO2-free Products” by 2030. ・ By promoting sales of clean energy-related products, the contribution amount to CO2 reduc
Slide 40: Note on future predictions
39 【Note on future predictions 】 Excluding matters related to past and current facts, the business results forecasts and forward- looking estimates, strategies and targets disclosed by the Company are estimates regarding the future. These estimates are formulated from plans, expectations and judgmen