Aisin Corporation · TSE:7259
Aisin — Investor Day (September 2023)
39 slides from Aisin's investor day presentation, Sep 14, 2023
Slide 1: Mid/Long-term Business Strategy Briefing
Mid/Long-term Business Strategy Briefing AISIN CORPORATION Moritaka Yoshida President 2023.09.14 IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. /39
Slide 2: Vision of 2030; Strategies of Business Divisions; 2025 Mid-term Plan
1. Vision of 2030 2. Strategies of Business Divisions 3. 2025 Mid-term Plan for 2030 IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. 1 IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. /39
Slide 3: Biggest Revolution Period for Automotive Industry
Changes Biggest Revolution Period for Automotive Industry Carbon Electrification Intelligence Neutrality Drastic changes in industrial structure surround automotive industry IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. 3 /39
Slide 4: Electrification, BEV, Intelligence changes
Changes Electrification BEV Intelligence Diversification of Big change on vehicle value with vehicle structure structure changes Achieve continuous growth at unpredictable environment IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. 4 /39
Slide 5: Major Management Transformation for the Future
Management Foundation & Growing Domains Major Management Transformation for the Future ・Shift Business to Growing Domains ・Strengthen Corporate Foundation IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. 5 /39
Slide 6: Technological Innovation and Strengths of AISIN
Change as Growth Challenge Technological Innovation Value Added Products Unconventional For BEV as a whole User Experience Individual Advanced Products ＋ Systemize (Functional Integration, Integrated Control) Strengths of AISIN Various Products Manufacturing Practice 3 ・ Production Engineering ・Hard
Slide 7: Restructure Business Portfolio
Management Foundation & Growing Domains Restructure Business Portfolio Existing Entrust Domains Shift Resources Human Resources Growing With Partners Reform Physical Resources Cash Domains Partners Profitability/Stru cture Accelerate full model change of AISIN IR Presentation / Sep. 14th, 2023 / © A
Slide 8: Restructure Business Portfolio for 2030
Restructure Business Portfolio for 2030 2021 2030 ROIC Existing Domains Growing Domains Resources VC Labor/Assets/Capital AT+HEV New Safe/Comfort Business Entry BEV Products ・eAxle Brakes ・Battery Frame Existing ・Giga-cast Engine/Body Growth Resources CN Labor/Assets/Capital Entrust Business ※Size o
Slide 9: Drastic Expansion on growing domains for 2030
For 2030 5.5-6.0 5.0 Triple the sales on Sales 3.9 growing (Trillion JPY) domains Existing Domains Growing Domains 2021 2025 2030 Drastic Expansion on growing domains for 2030 IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. 9 /39
Slide 10: Employees as Revolution Engine
Employees as Revolution Engine Seek Improving Corporate Culture that Every Employee Challenges IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. 10 /39
Slide 11: Corporate Principles
Corporate Principles Inspiring “movement”, creating tomorrow IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. 11 /39
Slide 12: Strategies of Business Divisions
Strategies of Business Divisions 2025 Mid-term Plan for 2030 Battery Frame/Giga-cast eAxle Brakes Safe/Comfort Entry CESO・CTSO President: Body Company ADVICS R/D General Manager CAO Y. YAMAMOTO H. SAKAUE K. KONDO S. ITO IR Presentation /October 13,2023 Sep. 14th, 2023/ © AISIN CORPORATION All Rights
Slide 13: Vision of 2030; Strategies of Business Divisions; 2025 Mid-term Plan
1. Vision of 2030 2. Strategies of Business Divisions 3. 2025 Mid-term Plan for 2030 IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. 2 IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. /39
Slide 14: Initiatives for BEV and Intelligence
Safe Initiatives for BEV and Intelligence Comfort Brakes BEV Current Future Power Oil Pressure Transmit BEV Electrification Actuation train System eAxle(3in1) eAxle(2in1) Value added products of BEV for whole Heat Water Device vehicle Electric Heat Manag Actuation Management ement EWP Switch Cooler
Slide 15: Initiatives for Development of BEV Vehicle
Safe Initiatives for Development of BEV Vehicle Comfort Brakes BEV Electric Unit (eAxle) Component Integrated Vehicle Control Pursue Efficiency/Size Brakes Electric Unit Navigation From parts to functional integration (eAxle) Integrated Vehicle Heat Management Control System Aerodynamic Downsize Xin
Slide 16: eAxle Lineup and Sales Expansion Strategy
eAxle Lineup and Sales Expansion Strategy BEV 2020 2025 2030 1st Generation 2nd Generation 3rd generation Full Lineup for Customer Needs Pursue World No.1 R/D for EV Expansion Short-Mid Mid-Long ・Provide multi-models ・Achieve drastic efficiency/small size Strategy ・Achieve efficient, small, low cost
Slide 17: Xin1 Using Strengths of AISIN
Xin1 Using Strengths of AISIN BEV Use of Space (inc. dead space) 100 ▲60% 40 Competitors (small vehicle) AISIN #of Major Parts (inc. body parts) 100 ▲30% 70 Function Technology 3in1 Downsizing Competitors AISIN (1/2 size) Achieve efficiency, Size Heat Management Packaging downsizing, and 100 ▲40% Te
Slide 18: Strategy and Target of eAxle
Strategy and Target of eAxle BEV Strategy BEV Market Volume (万台)Unit) (10K 2 4,250 Development times 4 〔Short-mid〕 Full lineup for customers times 2,000 〔Mid-long〕 Accelerate World No.1 R/D 450 ・Shift AT/HEV resource to BEV R/D ・Allies with external partners on 2021 '21 2025 '25 2030 '30 technology
Slide 19: Battery Frame/Giga-cast
Battery Frame/Giga-cast BEV Battery Frame ・Protect battery from shocks Battery ・Control temperature, efficiency, deterioration Cell Locker EA （protect from side shocks） Cross Frame （protect from side shocks） Battery Cooler （control temperature, efficiency, deterioration） Giga-cast（Aluminum BEV Frame
Slide 20: Strengths and Vision of Battery Frame and Giga-cast
Strengths and Vision of Battery Frame and Giga-cast BEV Strengths of AISIN Vision Battery Frame in 2025 Aluminum Raw Materials Shock Protection × Temperature control Extrusion Diecast Locker EA Battery Case Module Heatsink Collision Management Integrated Functional Body in 2027 Heat Management Colli
Slide 21: Strategy and Target of Battery Frame and Giga-cast
Strategy and Target of Battery Frame and Giga-cast BEV Strategy Sales Target (100M JPY) Synergy with OEM Absorb increased market needs 2,000 To be “partner” of OEM Synergize Engineering & production 10 times sales Conducting technology proposal & dispatch engineers to multiple OEM Utilize Alliance E
Slide 22: Brakes (Electrification, Intelligence)
Brakes (Electrification, Intelligence) Brakes Electrification Efficiency: Cooperative Regenerative Brake Efficiency: E-Parking Brakes World-Ever Top of market Front/rear independent ・light weight ・High regenerations ・low resistance (dragging brake) Improve 2% efficiency Improve 0.8% efficiency Intel
Slide 23: Brakes Market and Roadmap
Market and Roadmap Brakes BEV・HEV Market Prediction Roadmap BEV/FCEV 2015 2020 2025 2030 PHEV/HEV （10K Unit） Pick-ups F/R Independent 2,600 Accumulator Luxury F/R independent 4,500 On-demand 4.8 times Large 4 wheels (bZ4X, Crown,、 F/R independent Sienta） Increase in Accumulator On-demand ICE 6,250 B
Slide 24: Strengths of AISIN: Cooperative Regenerative Brake
Strengths of AISIN Brakes Electrification：Cooperative Regenerative Brake System Contributing to improve Efficiency*(Self Research) Gain regeneration with F/R independent control +2.0％ Improve 2％ Efficiency*（WTLP） ＋10.0％ Control by 4 wheels Control by F/R independently +5.0％ Fr/Rr Brake Balance Image
Slide 25: Integrated Vehicle Control
Efficiency*/Safety/Comfort/Drive: New Functions by Integrated Brakes Vehicle Control (Intelligence) Brakes Navigation Efficiency* Comfort Electric Unit (eAxle) Integrated Vehicle Control Heat Management System Safety Drive Aerodynamic Device ARS・AVS *Power Consumption Efficiency Increase vehicle val
Slide 26: Target and Strategy of Brakes
Target And Strategy of Brakes Brakes Strategy 【売上目標】 Sales Target Sales Expansion / Profitability Utilize strengths of having all brake products and （100M JPY） +4,300 10,800 software development technology 8,900 ●Controlled Brake System Compete with nest model of cooperative regenerative brake syste
Slide 27: Safe/Comfort Entry
Safe Safe/Comfort Entry Comfort Stress-Free Entry（universal design/safe for everyone） Connect people and vehicle by monitoring technology and door systems Confirm OPEN Detect Judge User Door Confirm Safety No Operating Check-in Predict Functions Easy to Get-on Comfortable Space Sonar & Camera Digita
Slide 28: Business Target and Strengths of AISIN
Safe Business Target and Strengths of AISIN Comfort Single Function Increase Added Values Safety Prediction Best Support Assist Solution Sun Roof Power Back Door Camera ＋ Door Handle Milli- meter Wave ACT Power Slide Door Pneumatic Electric Door Lock Add sensing function to various products gains us
Slide 29: Strategy and Target of Safe/Comfort Entry
Safe Strategy and Target of Safe/Comfort Entry Comfort Strategy Sales Target (100M JPY) Function R/D Among Domains 5,300 Enhance high value-added products ・Blend chassis domain and safety technologies triple the sales ・Utilize sensing data to 2,900 Enhance function Alliance Reinforcement 1,700 ・Deve
Slide 30: Vision of 2030; Strategies of Business Divisions; 2025 Mid-term Plan
1. Vision of 2030 2. Strategies of Business Divisions 3. 2025 Mid-term Plan for 2030 IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. 3 IR Presentation / Sep. 14th, 2023 / © AISIN CORPORATION All Rights Reserved. /39
Slide 31: Position of 2025 Aiming 2030
Position of 2025 Aiming 2030 2025 Plan to Secure Resource for 2030 Management Integration Jumping Show Result Organization Change Stepping “Growing” Stage Change “Inside” 5.5-6.0 Hopping Gain “Strength” Form “shape” 5.0 3.9 Sales Existing (Trillion JPY) Domains Growing Domains 2021 2025 2030 Proceed
Slide 32: Target and Actions of 2025
Target and Actions of 2025 4.6T 4.6 JPY 5.0TJPY 4.4 4.4T 兆円JPY 兆円 3.9T 3.9兆円 Complete Functional Changes JPY Sales 6.0% ①Restructure Business Portfolio 4.6% Operating 4.1% Over ②Increase Profitability on Income Existing Products like AT Ratio 300BJPY 1.3% ③Shift Resource to Growing 190BJPY Domains 1
Slide 33: Restructure Business Portfolio
①Restructure Business Portfolio 2021 2030 ROIC Existing Domains Growing Domains Resources VC With Labor/Assets/Capital Partners AT+HEV Safe/ New Comfort Business Entry BEV Products Brakes ・eAxle ・Battery Frame Existing ・Giga-cast Engine/Body Growth Resources CN Entrust Labor/Assets/Capital Entrust B
Slide 34: Improve Profitability on Existing Products (AT・HEV)
②Improve Profitability on Existing Products（AT・HEV） AT・HEV戦 ICE・HEV Market Prediction Key Strategy Automobile Market Prediction 9,700 ① Conventional demand 9,000 at South America, India, etc. （10K Unit） BEV 2,000 4,250 HEV 2,500 Minimize investment and enhance sales since strong demand of convention
Slide 35: Input Resource to Growing Domains
③Input Resource to Growing Domains CAPEX R&D Human Capital ・Total investment based on depreciation ・Strategical R&D to growing domains ・Accelerate human capital ・Use flexible-line and existing ・Utilize MBD・DX for Optimization shift to growing domains equipment to reduce investing amount ・Re-skilling
Slide 36: Generate Capital by Balance Sheet Reformation
④Generate Capital by Balance Sheet Reformation Business Assets Cross-Shareholdings Global Inventories Compress over 100BJPY Sell over 100BJPY Compress over 100BJPY Transfer “entrust” business Compress to and depreciate existing Aim for zero Pre-COVID19 Level business assets By 2025 Entrust Partners
Slide 37: Capital Allocation for 2025
Capital Allocation for 2025 FY23～FY25 Prediction (3yr cumulative) (100M JPY) 23,000 23,000 ●Financial Control balance on financial health and investment efficiency Loan Repayment (Capitalization ratio 25%～30%) BS Reform etc. Health 4,000 3,000 Dividend ●Return to 1,500 Stable dividend (payout ratio
Slide 38: Aim for 2030
Aim for 2030 5.5-6.0 5.0 Triple Sales the sales (Trillion JPY) 3.9 at growing domains Existing Domains Growing Domains 2021 2025 2030 Operating Income Ratio 4.6％ Over 6％ 8％ ROIC 6.6％ Over 10％ 13％ Enhance growing domains for 2030 and target over 13% on ROIC IR Presentation / Sep. 14th, 2023 / © AISIN
Slide 39: Note on future predictions
【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 judgments m