F-tech Inc. · TSE:7212

F-tech — Q2 FY2021 Earnings Presentation

49 slides from F-tech's earnings presentation, Nov 6, 2020

  1. Slide 1: Fiscal Year Ending March 2021 2nd Quarter Financial Results

    Fiscal Year Ending March, 2021 2nd Quarter Financial Results Nov 6th, 2020 F-TECH Inc. President & CEO Yuichi Fukuda Copyright(c) 2020 F-TECH INC. All Right Reserved 1

  2. Slide 2: Table of Contents

    Table of Contents 1 Financial Summary 2 Earnings Forecast 3 Management Strategy 4 Topics Copyright(c) 2020 F-TECH INC. All Right Reserved 2

  3. Slide 3: Table of Contents

    Table of Contents 1 Financial Summary 2 Earnings Forecast 3 Management Strategy 4 Topics Copyright(c) 2020 F-TECH INC. All Right Reserved 3

  4. Slide 4: Consolidated Financial Results Overview (Year on Year)

    Consolidated Financial Results Overview (Year on Year) （Unit ：Million Yen） FY Mar. 2020 FY Mar. 2021 Difference Q2 Actual Q2 Actual Sales 112,355 100.0% 73,605 100.0% ▲38,749 ▲34.5% Operating Profit 2,129 1.9% ▲1,655 ▲2.3% ▲3,794 ▲178.2% Ordinary Profit 1,515 1.3% ▲2,296 ▲3.1% ▲3,812 ▲251.6% Profit

  5. Slide 5: Consolidated Sales (Year on Year)

    Consolidated Sales (Year on Year) (Unit：Million Yen) Consolidated Sales by Segment Sales Share (%) (Japan) 140,000 Japan, 12.6% Japan, 12.6% -% 112,355 73,605 120,000 Japan, 14,194 100,000 N. N. (N. America) 80,000 N. America, America, -% Japan, 9,306 60,000 America, 61.4% 61.4% N. 68,992 40,000 Ame

  6. Slide 6: Operating Profit by Segment (Year on Year)

    Operating Profit by Segment (Year on Year) (Unit：Million Yen) Operating Profit Share FY Mar. FY Mar. FY Mar. FY Mar. 2020 2021 Difference 2020 2021 Difference Difference (%) Q2 Actual Q2 Actual Q2 Actual Q2 Actual Japan ▲432 ▲1,184 ▲751 - ▲20.3% 71.1% 91.4% N. America 395 ▲1,315 ▲1,710 ▲432.8％ 18.6%

  7. Slide 7: Operating Performance by Segment (Japan)

    Operating Performance by Segment (Japan) (Unit：Million Yen) Sales Operating Profit Change ▲751 Change ▲4,888 ▲432 ▲1,184 14,194 9,306 Change (%) ― Change (%) ▲34.4% FX Impact ― FX Impact ― Real Change ▲751 Real Change ▲4,888 Last term Current term Change (%) ― Last term Current term Change (%) ▲34.4

  8. Slide 8: Operating Performance by Segment (N. America)

    Operating Performance by Segment (N. America) (Unit：Million Yen) Sales Operating Profit 68,992 45,200 Change ▲23,792 Change ▲1,710 395 ▲1,315 Change (%) ▲34.5% Change (%) ▲432.8％ FX Impact ▲1,354 FX Impact 38 Real Change ▲22,438 Last term Current term Real Change ▲1,749 Change (%) ▲32.5% Change (%)

  9. Slide 9: Operating Performance by Segment (Asia)

    Operating Performance by Segment (Asia) (Unit：Million Yen) Sales Operating Profit 29,167 19,099 Change ▲10,068 1,928 723 Change ▲1,205 Change (%) ▲34.5% Change (%) ▲62.5% FX Impact ▲1,072 FX Impact ▲31 Real Change ▲8,996 Real Change ▲1,175 Change (%) ▲30.8% Last term Current Actual Change (%) ▲60.9%

  10. Slide 10: Changes in Operating Profit

    Changes in Operating Profit Product and Machine and Tools sales Improvement COVID-19 Decrease Increase 2,129 (Unit：Million Yen) Japan ▲1,665 ▲1,420 Japan FX Consolidated 100 Impacts adjustment N. America 7 ▲127 1,714 Asia Asia N. America 406 691 N. America Japan 464 Extraordinary ▲3,927 569 loss tra

  11. Slide 11: The Second Quarter Consolidated Closing – by Quarter

    The Second Quarter Consolidated Closing – by Quarter FY Mar. 2021 FY Mar. 2021 Q1 Q2 Total (unit: million yen) Q1 Q2 Total (unit: million yen) Consolidated operating Consolidated sales 25,141 48,464 73,605 -1,372 -293 -1,665 profit （Unit： Billion Yen） （Unit： Billion Yen） Sales (by segment, by quarte

  12. Slide 12: Table of Contents

    Table of Contents 1 Financial Summary 2 Earnings Forecast 3 Management Strategy 4 Topics Copyright(c) 2020 F-TECH INC. All Right Reserved 12

  13. Slide 13: Consolidated Earnings Forecast (FY Mar 2021 Forecast)

    Consolidated Earnings Forecast (FY Mar 2021 Forecast) (Unit：Million Yen) FY Mar 2020 FY Mar 2021 Full year (Aug 6th) Difference Actual Sales 218,712 100.0% 184,000 100.0% ▲34,712 ▲15.9% Operating profit 4,088 1.9% 2,400 1.3% ▲1,688 ▲41.3% Ordinary profit 2,764 1.3% 1,900 1.0% ▲864 ▲31.3% Profit Attr

  14. Slide 14: Consolidated Sales (FY Mar 2021 Forecast)

    Consolidated Sales (FY Mar 2021 Forecast) (Unit：Million Yen) Consolidated Sales by Segment Sales Share (%) 218,712 184,000 Japan, 12.0% Japan, 10.6% (Japan) ▲1.4% 200,000 Japan, 26,126 Japan, 19,631 N. N. 150,000 N. Anerica, N. Anerica, (N. America) America, 61.0% 100,000 America, 61.0% ±0.0% 133,45

  15. Slide 15: Operating Profit by Segment (FY Mar 2021 Forecast)

    Operating profit by Segment (FY Mar 2021 Forecast) (Unit：Million Yen) Operating Profit Share FY Mar FY Mar FY Mar FY Mar Difference 2020 2021 Difference 2020 2021 Difference (%) Actual Q2 Actual Q2 Japan ▲683 116 799 -％ ▲16.7％ 4.9％ 21.6％ N. America 367 ▲1,310 ▲1,677 ▲456.1％ 9.0％ ▲54.6％ ▲63.6％ Asia 4

  16. Slide 16: Transition of Operating Profit (Q2 Actual to Full Year Forecast)

    Transition of Operating Profit (Q2 Actual → Full year forecast) (Unit : Million Yen) Consolidated Asia Adjustment Machine and 25 Tools Sales 379 Asia 2,400 Domestic Subsidiaries Product 170 N. America N. America 2,355 FTC ▲1,665 Product, Product Machine and Tools Sales Machine and ▲602 607 Tools Sal

  17. Slide 17: Sales Changes by Customer

    Sales Changes by Customer 100% Others 3.8% 3.5% 3.5% 3.4% 2.9% 1.4% FCA 90% 3.2% 2.9% 2.8 2.7% 3.0% 3.3% 0.1% 1.6% 2.7% 4.7% Mitsubishi 10.9% 6.0% 12.0% 11.4% 80% Nissan 12.9% 12.7% 10.5 TOYOTA 70% Tesla 77.6% 76.4% 75.2% GM 60% 72.0% 70.0% 71.1% Honda 50% FY Mar. 2020 FY Mar. 2021 FY Mar. 2016 FY M

  18. Slide 18: Financial Position

    Financial Position (Unit: Million Yen) Total Asset Capital Investment Depreciation Interest-Bearing Debt Interest-Bearing Debt Ratio 160,000 50.0% 140,000 40.0% 120,000 100,000 30.0% 80,000 60,000 20.0% 40,000 10.0% 20,000 0 FY2020 FY2021 0.0% FY2016 FY2017 FY2018 FY2019 (Actual) (Forecast) Total As

  19. Slide 19: Table of Contents

    Table of Contents 1 Financial Summary 2 Earnings Forecast 3 Management Strategy 4 Topics Copyright(c) 2020 F-TECH INC. All Right Reserved 19

  20. Slide 20: Previous Mid-Term Plan ～Basic Policy～

    Previous Mid-Term Plan ～Basic Policy～ Corporate Policy Mar 2017 Mar 2018 Mar 2019 Mar 2020 Achieve strong financial positions and high profitability Actuals Target Consolidated sales Consolidated 1 9 7 . 9 B Yen sales 2 1 2 . 0 B Yen Operating profit ratio Operating profit ratio Interest bearing deb

  21. Slide 21: Previous Mid-Term Plan: Actual ～Management Objectives～

    Previous Mid-Term Plan: Actual ～Management Objectives～ Sales Operating Profit Operating Profit(Plan) Operating Profit(Actual) Sales(Plan) Sales(Actual) Billion Yen Operating Profit Ratio(Plan) Operating Profit Ratio(Actual) Billion Yen 12.0 10.5 10.0% 220.0 209.0 226.0 207.0 235.3 212.0 218.7 197.9

  22. Slide 22: Previous Mid-Term Plan: Actual ～Plan vs. Actual for Year 3～

    Previous Mid-Term Plan : Actual ～Plan vs. Actual for Year 3 The 13th Mid-Term Plan : The 3rd Year Plan vs. Actual （Unit: Billion Yen） Mid-Term Plan Mar 2020 Actual Evaluation Sales 212.0 218.7 〇 Operating Profit 10.5 4.0 × Investment Plan 11.0 3year Ave. 10.86 〇 Interest-bearing Debt （Excluding Spec

  23. Slide 23: Previous Mid-Term Plan: Challenges ～Status of subsidiaries～

    Previous Mid-Term Plan: Challenges ～Status of subsidiaries in Japan・Asia・NA～ Japan and Asia North America Issues Challenges Countermeasures Issues Challenges Countermeasures Respond to localization Improve logistics Sales volume Cost increased Sales leveled Develop new customers Cost Change to in ho

  24. Slide 24: The 14th Mid-Term Business Plan ～Basic Policy～

    The 14th Mid-Term Business Plan ～Basic Policy～ The 13th Mid-Term The 14th Mid-Term Business Plan Business Plan Achieve strong financial Corporate Policy ： Let’s exceed out limits! We will, without positions compromise, produce the “Best One” for all our customers Reinforce the free cash flow 66th Te

  25. Slide 25: 14th Mid-Term Major Activities (Sales area)

    The 14th Mid-Term Major Activities to Achieve “Better than Ever” (Sales area) Expanding the business globally with Sales Honda/GM/Toyota/Suzuki, and Unit：Million Yen 300,000 emerging EV manufacturers COVID-19 impact 250,000 200,000 150,000 100,000 50,000 0 17/3 18/3 19/3 20/3 21/3E Sales 197,941 226

  26. Slide 26: 14th Mid-Term Major Activities (R&D, Engineering, Sales, Production)

    The 14th Mid-Term Major Activities to Achieve “Better than Ever” (R&D, Engineering, Sales, Production) 【Responding to the diverse needs of automobile manufacturers】 “Non Prototype Development(NPD)” Strong sales “Excellent analysis capabilities” activities taking advantage of each “Ability to support

  27. Slide 27: 14th Mid-Term Major Activities (Administration)

    The 14th Mid-Term Major Activities to Achieve “Better than Ever” (Administration) ○Evolving to new governance structures that lead to enhancing corporate value CG ・Achieving optimal and speedy control and decision making Internal control ○Optimization of risk management, compliance, and CSR Finance

  28. Slide 28: Each Area’s 14th Mid-Term Plans in COVID-19 Pandemic

    Each Area’s 14th Mid-Term Plans in COVID-19 Pandemic The 14th Mid-Term Plan Impact of COVID-19 F-tech direction Evolution of unique ＜Automobile manufacturers＞ ・Downward revision of Focus on what needs to development technology Achieving optimum designing by production be done now based on ・New model

  29. Slide 29: Each Region’s Current Status in COVID-19 Pandemic

    Each Region’s Current Status in COVID-19 Pandemic COVID-19 Impact Term Recovery Status After Region Operation Suspension Operation Restart Status *1 Q3 *2 Zhongshan: Beg of February China End of January *3 Wuhan：Beg of March Over 100% Over 100% Canada: Beg of May North Approx.70% Approx. End of Marc

  30. Slide 30: Each Area’s 14th Mid-Term Plans in COVID-19 Pandemic

    Each Area’s 14th Mid-Term Plans in COVID-19 Pandemic Due to the impact of COVID-19, production volumes have dropped significantly compared to last year. We are currently working diligently to achieve the plan of 2020. We will target to disclose numerical objectives of the 14th Mid-term plans at the

  31. Slide 31: Table of Contents

    Table of Contents 1 Financial Summary 2 Earning Forecast 3 Management Strategy 4 Topics Copyright(c) 2020 F-TECH INC. All Right Reserved 31

  32. Slide 32: Business Status ～New Model Startups Planned in the First Half of 2020～

    Business Status ～New Model Startups Planned in the First Half of 2020～ HONDA GM NISSAN China *Excerpted CR-V CIVIC UR-V CRIDER XR-V North America HEV EV K226 TLX CITY BUICK(HEV) Japan FIT Note/RVR FIT series Asia CR-V HEV ACCORD Copyright(c) 2020 F-TECH INC. All Right Reserved 32

  33. Slide 33: Underbody Parts for TOYOTA

    Underbody Parts for TOYOTA North America Japan Asia TOYOTA TOYOTA TOYOTA Underbody parts Underbody parts Underbody parts awarded awarded awarded *Press release in November 2019 On the top of above, we have received additional new model parts business from Toyota! We will enhance the sales activities

  34. Slide 34: India Business as the 3rd Pillar (VEEGEE Equity Stake)

    Executing 14th Mid-Term Plans (Acquires Equity stake in VEEGEE of India) Company Name VEEGEE Auto Components Private Limited Location Ahmedabad, Gujarat, India Amount of 342,940,000 INR （Approx. 488Million Yen※） Investment At Head office on October 29, 2020 VEE GEE INDUSTRIAL ENTERPRISES PVT.LTD. 74

  35. Slide 35: Initiative for Sustainable Growth ～CSR, ESG～

    Initiative for Sustainable Growth ～CSR, ESG～ 【Initiative for quality】 【Initiative for improvements of manufacturing technology】 Kuki plant Awarded 2 years in a row “Prize for creativety” Awareded by the Minister of Education, Cultuer, Sports, Quality Excellence Award Science and Technology F&P MFG D

  36. Slide 36: Initiative for Sustainable Growth ～CSR, ESG～

    Initiative for Sustainable Growth ～CSR, ESG～ Social contribution Work-life balance 【Mask donation activity】 We received “Work-life balance promotion award 2020” from Kameyama city Thoughtful return gift 【Evaluation items】 from FTW  How many paid time offs were used (use rate) Saitama prefectural of

  37. Slide 37: COVID-19 Impact

    COVID-19 Impact  Due to the outbreak of the COVID-19 in January 2020, travel restrictions have been taken place around the world to prevent the spread. In the automobile industry, production was suspended and there was a mood for voluntary restraint, which possibly trigged to lower automotive deman

  38. Slide 38: Thank you for your attention!

    Thank you for your attention! The future outlook and earnings forecasts in this document are made based on the information available at the moment, and they include potential risks and uncertainties. As a result, please bear in mind that actual business performance may substantially differ from the

  39. Slide 39: Copyright(c) 2020 F-TECH INC. All Right Reserved

    Copyright(c) 2020 F-TECH INC. All Right Reserved

  40. Slide 40: Appendix ～Consolidated Balance Sheet～

    Appendix ～Consolidated Balance Sheet(FY Mar 2020 results)～ Mar. 2020 Mar. 2021 Changes Mar. 2020 Mar. 2021 Changes Actual Forcast Actual Forecast Cash and Deposits 8,880 7,571 ▲ 1,309 Notes and AP 17,427 17,250 ▲ 177 Notes and AR 27,955 28,955 1,000 Short-term loans 20,396 21,971 1,575 Current porti

  41. Slide 41: Appendix ～Consolidated Cash Flow Statement～

    Appendix ～Consolidated cash flow statement (FY Mar 2020 Results)～ FY Mar 2020 FY Mar 2021 Changes 20,000 Operating ＣＦ Actual Forecast Investment ＣＦ 15,000 Cash flow from 10,540 8,085 ▲ 2,455 10,540 Free ＣＦ operating activities 10,000 8,085 Cash flow from ▲ 11,961 ▲ 9,355 2,606 investment activities

  42. Slide 42: Appendix ～Corporate Overview～

    Appendix ～Corporate Overview～ Company Name F-TECH INC. The first section of the Tokyo Stock Market Segment Exchange （7212） Capital 6.79 Billion JPY President and CEO Yuichi Fukuda Consolidated Sales 218.7 Billion JPY (March 2020) Number of Group total 8,750 (F-tech only: 1077) ※F-tech only does not

  43. Slide 43: Appendix ～F-tech’s History～

    Appendix ～F-tech’s History～ Establishment 4 wheel business Business expansion Global expansion （1947‐1964） （1965‐1987） （1988‐1999） （2000‐ current） 2018 1987 F-TACH AUTOMOBILE 2014 COMPONENTS 1999 PRIVATE LIMITED 1997 Daihatsu business starts R&D NA Europe established F&P Mfg (Canada) 2013 Branch est

  44. Slide 44: Appendix ～Vehicle Components～

    Appendix ～Vehicle Components～ Suspension Parts Control parts RR FR Mounted Module Assy Components Our products are critical safety auto parts which perform fundamental functions, “Drive”, “Turn” and “Stop”. We aim at the optimal specifications considering the higher operation stability, riding comfo

  45. Slide 45: Appendix ～Our Business Outline (Chassis Parts Development and Production)～

    Appendix ～Our Business Outline（Chassis Parts Development and Production）～ Product Development Forming Welding Painting Assembly All processes, from product planning and development to mass-production, are carried out through F-tech’s proprietary integrated processing system, which enables F-tech to

  46. Slide 46: Appendix ～F-tech Group Companies in Japan～

    Appendix ～F-tech Group Companies in Japan～ 【Facilities】 【Group Companies】 【Affiliated Companies】 Head Office・Kuki Plant Fukuda Engineering Co., Ltd. Johnan Manufacturing Inc. Kameyama Plant Kyushu F.tech. Inc. Johnan-Kyushu Manufacturing Inc. Haga Technical Center Reterra Inc. Equipment Center Reter

  47. Slide 47: Appendix ～F-tech Group Overseas Companies～

    Appendix ～F-tech Group Overseas Companies～ F.tech Inc. Office UK F.tech R&D North America Inc. Dyna-Mig, A division of European Branch YANTAI FUYAN MOULD F&P Mfg.,Inc. CO.,LTD F&P MFG.,INC. F-Tech WUHAN Inc. F&P AMERICA MFG.,INC. F-Tech Zhongshan F&P Gerorgia, A division of F.TECH R&D Inc. F&P Ameri

  48. Slide 48: Appendix ～Affiliates and Alliances～

    Appendix ～Affiliates and Alliances～ JOHNAN UK Ltd. Johnan Wuhan Inc. Gestanp Tallent Ltd. Shanghai Huizhong JOHNAN AMERICA INC. YPS Ltd. PROGRESSIVE TOOLS & SMC Co.,Ltd. JOHNAN DE MEXICO, COMPONENTS(P) Ltd. CHEN IEU INDUSTRY CO.,LTD. S.A.DE C.V. VEEGEE Industrial JOHNAN F.TECH Enterprises PVT. LTD (

  49. Slide 49: Technological Alliance in India

    Technological Alliance in India Company Name VEEGEE INDUSTRIAL ENTERPRISES Pvt. Ltd. Established In 1990 Number of Approx. 1,400 employees Main products Stamping, Sub-assembly, Tube/Pipe Welding, etc Honda, Suzuki, General Motors, Tata Motors, Autoliv, Main customers Schneider,etc Manufacture and Sa

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