Slide 1: Financial Results for the Fiscal Year Ended March, 2018
Financial Results for the Fiscal Year Ended March, 2018 5/10/2018 F-TECH Inc. TSE 1st Section ：7212 http://www.ftech.co.jp Copyright(c) 2018 F-TECH INC. All Right Reserved 1
Slide 2: Table of Contents
Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Business Strategy 4. Topics Yuichi Fukuda President & CEO Copyright(c) 2018 F-TECH INC. All Right Reserved 2
Slide 3: Table of Contents
Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Business Strategy 4. Topics Yuichi Fukuda President & CEO Copyright(c) 2018 F-TECH INC. All Right Reserved 3
Slide 4: Consolidated Financial Results Overview (Year on Year)
Consolidated Financial Results Overview (Year on Year) (Unit ：M Yen) FY Ended Mar 2017 Actual FY Ended Mar 2018 Actual Difference Sales 197,941 100.0% 226,060 100.0% 28,118 14.2% Operating Income 8,035 4.1% 6,856 3.0% ▲1,179 ▲14.7% Income before tax 7,214 3.6% 5,924 2.6% ▲1,289 ▲17.9% Profit Attribu
Slide 5: Consolidated Sales (Year on Year)
Consolidated Sales (Year on Year) (Unit ：M Yen) Consolidated Sales by Segment Share of Sales (%) (Japan) ▲0.1% Japan, 28,795 Japan, 12.8% Japan, 12.7% Decrease 200,000 Japan, 25,229 (North America) N. America N. America, ▲ 3.3% N.America 60.8% 57.5% Decrease N. America 100,000 120,433 129,904 (Asia)
Slide 6: Operating Income by Segment (Year on Year)
Operating Income by Segment (Year on Year) (Unit ：M Yen) Operating Income Share FY Mar FY Mar FY Mar FY Mar Difference Difference 2017 2018 Difference 2017 2018 (%) (%) Actual Actual Actual Actual Japan 958 1,744 786 82.0% 11.9% 25.4% 13.5% N. America 2,928 ▲1,878 ▲4,806 ▲164.2% 36.4% ▲27.4% ▲63.8%
Slide 7: Changing Factors in Operating Income
Changing Factors in Operating Income （Unit ：M Yen） Japan N. America Asia Increase Decrease 8,035 Sales Other decrease Sales 278 Forex ▲ 285 Consolidated increase Impact Sales Adjustment 508 133 6,856 Other increase 25 ▲4,497 2,369 Other 289 FY 2017 FY 2018 Operating Operating Profit Actual Profit Ac
Slide 8: Table of Contents
Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Business Strategy 4. Topics Yuichi Fukuda President & CEO Copyright(c) 2018 F-TECH INC. All Right Reserved 8
Slide 9: Consolidated Results Forecast Overview (FY Mar 2019)
Consolidated Results Forecast Overview (FY Mar 2019) (Million yen) FY Mar 2018 Actual FY Mar 2018 Forecast Difference Sales 226,060 100.0% 226,000 100.0% ▲60 ▲0.0% Operating profit 6,856 3.0% 7,500 3.3% 643 9.4% Profit before tax 5,924 2.6% 6,600 2.9% 675 11.4% Profit attributable to owners of paren
Slide 10: Consolidated Sales Forecast (FY Mar 2019)
Consolidated Sales Forecast (FY Mar 2019) (Unit ：M Yen) Consolidated Sales by Segment Share of Sales (%) (Japan) 226,060 226,000 Japan, 14.8% 2.1% Japan, 12.7% Japan, 28,795 Japan, 33,331 Increase 200,000 150,000 N. America, (North America) N. America, N. America, N. America, ▲1.6% 57.5% 55.8% 129,9
Slide 11: Operating Profit by Segment (FY Mar 2019 Forecast)
Operating Profit by Segment (FY Mar 2019 Forecast) (Unit ：M Yen) Operating Income Share FY Mar FY Mar FY Mar FY Mar Difference Difference 2018 2019 Difference 2018 2019 (%) (%) Actual Forecast Actual Forecast Japan 1,744 332 ▲1,411 ▲80.9% 25.4% 4.4% ▲21.0% N. America ▲1,878 1,723 3,602 - ▲27.4% 23.0
Slide 12: Changing Factors in Operating Income
Changing Factors in Operating Income (Unit ：M Yen) Increase Decrease Japan N. America Asia (Canada) Customer going on strike Customer's production plan delay Sales New model startup cost increase (USA) increase Increase in outsourcing cost, material cost, Recovered 183 Other Cost for logistic improv
Slide 13: Changes in Sales by Customer
Changes in Sales by Customer (Unit ：M Yen) 100% 144,089 172,456 175,579 196,343 226,060 226,000 Others 90% 4.4% 4.0% 3.8% 3.5% 3.5% 2.9% Suzuki 8.6% 9.5% 10.9% 12.0% 11.4% 11.6% Mitsubishi 80% Toyota Nissan 70% GM 79.9% 79.0% 77.6% 76.4% 75.2% 76.0% Honda 60% 50% FYFY Mar FY Mar 2019 Mar2013 2014 FY
Slide 14: Financial Position
Financial Position (Unit ：M Yen) Total Asset Capital Investment Depreciation Interest-Bearing Debt Dependence on Interst-Bearing Debt 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 0.0% FY Mar 2014 FY Mar 2015 FY Mar 2016 FY Mar 2017 FY Mar 2018 FY Mar 20
Slide 15: Dividend
Dividend FY Mar 2019 Forecast End End Payout End of Q2 End of Q4 Total of Q1 of Q3 Ratio FY Mar 2019 - 10 yen - 10 yen 20 yen 9.3% Dividend Forecast (FYI) - 10 yen - 10 yen 20 yen 7.6% FY Mar 2018 Actual Difference - - - - - 1.3% (Year on Year) Dividend Policy F.tech’s basic policy regarding the pro
Slide 16: Table of Contents
Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Business Strategy 4. Topics Yuichi Fukuda President & CEO Copyright(c) 2018 F-TECH INC. All Right Reserved 16
Slide 17: Midterm Three-Year Plan - Basic policy -
Midterm Three-Year Plan - Basic policy - Corporate Policy Mar 2017 Mar 2018 Mar 2019 Mar 2020 Achieve strong financial positions and high profitability Actuals Target Consolidated Consolidated Sales Sales 197.9 B Yen 212.0 B Yen Operating Operating profit ratio profit ratio Interest bearing debt int
Slide 18: Midterm Three-Year Plan - Overview -
Midterm Three-Year Plan - Overview - Enhance communication from Japan Provide production plants with value Japan N. America China Asia Sales Maintain current business, acquire new business R&D Efficient development with minimum cost and time Manufacturing Support stable new model startups, share the
Slide 19: Midterm Three-Year Plan - Targets -
Midterm Three-Year Plan - Targets - Sales Operating profit Operating profit Operationg profit ratio Billion yen Billion yen 220.0 209.0 207.0 212.0 12.0 10.0% 10.5 197.9 200.0 10.0 9.0 8.0% 8.0 8.0 180.0 8.0 6.0% 160.0 6.0 4.0% 140.0 4.0 5.0% 4.1% 4.3% 3.8% 120.0 2.0 2.0% 100.0 0.0 0.0% Mar 2017 Mar
Slide 20: Midterm Three-Year Plan - 1st year plan vs actual -
Midterm Three-Year Plan - 1st year plan vs actual - Midterm Plan – 1st year plan vs actual (Billion yen) Midterm plan Mar 2018 actual Difference Sales 209.0 226.0 +17 Operating profit 8.0 6.8 ▲1.2 Investment plan 13.7 12.4 ▲1.3 Interest-bearing 58.0 59.5 +1.5 debts Interest-bearing debt 39.5% 39.5%
Slide 21: Midterm Three-Year Plan - 1st year plan vs actual -
Midterm Three-Year Plan - 1st year plan vs actual - Midterm Plan – 1st year plan vs actual (Billion yen) Midterm plan Mar 2018 actual Difference Operating profit 8.0 6.8 ▲1.2 It mainly stems from operating profit loss of There is an urgent need to 1.8 Billion yen in NA. rebuild financial position •
Slide 22: Current Status in North America - Issues -
Current Status in North America - Issues - Business Environment Outcome Problems in NA plants Business increased Outsourcing Cost increase significantly increased Labor, Outsourcing and associated cost Multiple new Work hours Loss increase increased Scrap/Rework required model startups Turnover incr
Slide 23: Current Status in North America - Activities for improvement -
Current Status in North America - Activities for improvement - Scrap cost Cost reduction Achieve cost reduction and profit Improvement by improving productivity Warehouse, associated cost and accuracy with F-tech support Labor cost Cost Improve productivity/accuracy Outsourcing cost Profit improveme
Slide 24: Table of Contents
Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Business Strategy 4. Topics Yuichi Fukuda President & CEO Copyright(c) 2018 F-TECH INC. All Right Reserved 24
Slide 25: Business Status
Business Status Honda F-tech supplies the parts to 100% of global models We acquire high confidence from customers by achieving weight reduction while strength and rigidity requirements are maintained Overseas OEMs Japanese OEMs GM: Suspension/mount parts are supplied Nissan: Control parts are suppl
Slide 26: Business Status - New model startups planned in 2018 -
Business Status - New model startups planned in 2018 - Area Customer Q1 Q2 Q3 Q4 N-BOX CIVIC HONDA Kameyama Kuki Japan ⇒Japan ⇒Japan 【Legend】 LEAF Model Name OTHER Kyushu Ftech ⇒Japan Production location ⇒Where to ship Odyssey Accord HONDA FPG FPA America North ⇒ North America ⇒North America Equinox
Slide 27: Business Status - New business from main customer -
Business Status - New business from main customer - Odyssey ACCORD SOP：Apr 2017 SOP Sep 2017 Location: USA (F&P Georgia) Location: USA (F&P America) Products: Suspension parts Products: Suspension parts Mount parts Mount parts Pedal control parts Pedal control parts N-BOX CIVIC SOP: July 2017 SOP: S
Slide 28: Business Status - New business from other customers -
Business Status - New business from other customers - New Customer GM SOP: Apr 2017 SOP: Apr, May 2017 Location: Thailand (FMTL) Location: Mexico (F&P Mexico) Products: Suspension parts Canada (Dynamig) Mount parts Products: Suspension parts Mount parts New Customer New Customer SOP: Jul 2017 SOP: F
Slide 29: Activities for Weight Reduction - Dissimilar welding technologies -
Activities for Weight Reduction - Dissimilar welding technologies - Activities for new welding FSW technologies Steel + Aluminum Aluminum + Aluminum Carbon/Aluminum/Plastic Steel World's first mass prodcution FSW is used to weld Aluminum plate ・Plastic with FSW technology to weld (expanded material)
Slide 30: Capital Update
Capital Update Convertible bonds (CB) that we issued in yen that will be matured in 2020 had been fully converted into shares as of September 12, 2017. *8/17/2017 Call option was exercised Item End of March 2017 End of September Difference 2017 CB Balance 2,350 M Yen 0 ▲2,350 M Yen # of issued share
Slide 31: IR Activities - Engineering Exhibitions -
IR Activities - Engineering Exhibitions - - Automotive Engineering Expo - Date: June 28-30, 2017 Location: Portmesse Nagoya # of visitors：39,810 Booth exhibition Light weight pedals, Aluminum technology F-tech booth was introduced on “The Motor Fan” magazine The largest light weight - 8th Light weig
Slide 32: IR Activities - Individual Investors -
IR Activities - Individual Investors - Nikkei IR Fair Individual investors meetings 2017 2017 2018 August 25, 26 July 6, December 5 January 26 Location: Tokyo Bigsight Location: Omiya-shi, Kuki cultural Location: F-tech head quarter, # of visitors ： 17,346 hall Kuki plant Presentation, Boo
Slide 33: CSR - Environment -
CSR - Environment - ■Events after receiving multiple awards last year From Kameyama EnMS articles were published on newspapers to the world News Featured on customer's website papers Received many requests to give presentations or to visit our facilities due to Energy Conservation Grand Prize
Slide 34: CSR - Social contribution -
CSR - Social contribution - Forest fostering Scholarship fundation Environment education for employees In April 2017, F-Tech Scholarship to improve environment conservation awareness started to provide fund. 41 students from 32 colleges in Tokyo Saitama area have received. Workshop for Kids Students
Slide 35: 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 s