Futaba Industrial Co., Ltd. · TSE:7241
Futaba Industrial — FY2024 Earnings Presentation
38 slides from Futaba Industrial's earnings presentation, May 15, 2024
Slide 1: Earnings Results Presentation for the Fiscal Year Ending March 31, 2024
Earnings Results Presentation for the Fiscal Year Ending March 31, 2024 (110th term) May 15, 2024 Futaba Industrial Co., Ltd. （＃7241）
Slide 2: Contents
Contents 2 1. Overview of the Fiscal Year Ended March 31, 2024 2. Full-Year Earnings Forecasts for the Fiscal Year Ending March 31, 2025 3. Reference 4. Progress on Medium-Term Management Plan, etc. © FUTABA INDUSTRIAL CO.,LTD. All rights reserved
Slide 3: Earning Results Summary
Earning Results Summary 3 (Million yen) FY3/2024 FY3/2023 Change Change (%) Results Results Sales [including parts * 795,802 708,072 +87,730 +12.4% supplied by customers] [excluding parts supplied by customers] * 449,664 397,225 +52,438 +13.2% * (2.4%) (1.1%) Operating profit 19,213 7,681 +11,531 +1
Slide 4: Earning Results Summary: Breakdown of Sales
Earning Results Summary Breakdown of Sales: Impacts of parts supplied by customers/materials price/exchange rate fluctuations 4 ◆ Sales Sales (excluding parts supplied by customers) Billion yen Amount of parts supplied by customers FY3/2023 FY3/2024 Results Results 708.0 795.8 • Sales including part
Slide 5: Analysis of Change in Operating Profit
Analysis of Change in Operating Profit 5 Billion yen Factors for profit increase Change in operating profit: Up 11.5 billion yen (from 7.6 billion yen to 19.2 billion yen) Factors for profit decrease Changes in Impact of product mix, etc. inflation +2.3 -2.4 Sales price Decrease in Kaizen revision I
Slide 6: Contents
Contents 6 1. Overview of the Fiscal Year Ended March 31, 2024 2. Full-Year Earnings Forecasts for the Fiscal Year Ending March 31, 2025 3. Reference 4. Progress on Medium-Term Management Plan, etc. © FUTABA INDUSTRIAL CO.,LTD. All rights reserved
Slide 7: Full-year Earnings Forecast
Full-year Earnings Forecast 7 Billion yen FY3/2025 FY3/2024 Change Change (%) Forecasts Results Sales [including parts 740.0 795.8 -55.8 -7.0% supplied by customers] [excluding parts supplied by customers] 435.0 449.6 -14.6 -3.3% (2.2%) (2.4%) Operating profit 16.0 19.2 -3.2 -16.7% (3.7%) (4.3%) (2.
Slide 8: Analysis of Change in Operating Profit
Analysis of Change in Operating Profit 8 Change in operating profit: Down 3.2 billion yen (from 19.2 billion yen to 16.0 billion yen) Billion yen Decrease in profit due to lower sales in Factors for profit increase Decrease in the Automotive Factors for profit decrease depreciation Parts Business +5
Slide 9: Contents
Contents 9 1. Overview of the Fiscal Year Ended March 31, 2024 2. Full-Year Earnings Forecasts for the Fiscal Year Ending March 31, 2025 3. Reference 4. Progress on Medium-Term Management Plan, etc. © FUTABA INDUSTRIAL CO.,LTD. All rights reserved
Slide 10: Sales and Operating Profit by Business Segment
Sales and Operating Profit by Business Segment (including parts supplied by customers) 10 (Million yen) FY3/2024 FY3/2023 Change Change (%) Results Results Sales 365,859 305,348 +60,511 +19.8% Japan Operating profit 9,800 (2.7%) 3,056 (1.0%) +6,743 +220.6% Sales 222,877 172,532 +50,344 +29.2% North
Slide 11: Sales and Operating Profit by Business Segment
Sales and Operating Profit by Business Segment (excluding parts supplied by customers) 11 (Million yen) FY3/2024 FY3/2023 Change Change (%) Results Results Sales Japan [excluding parts supplied by customers] 225,558 191,772 +33,786 +17.6% Operating profit 9,800 (4.3%) 3,056 (1.6%) +6,743 +220.6% Sal
Slide 12: Sales by Customer
Sales by Customer 12 The figure in parentheses ( ) indicates the ratio to sales (Billion yen) Including parts FY3/2024 FY3/2023 Change Change (%) supplied by customers Results Results *1 Toyota Group 645.8 (81.2%) 544.8 (76.9%) +101.0 +18.5% Suzuki 68.2 (8.6%) 73.8 (10.4%) -5.6 -7.6% Mitsubishi Moto
Slide 13: Sales Breakdown by Product Category for FY3/2024
Sales Breakdown by Product Category for FY3/2024 13 Other Suspension 7.7% Other parts 9.3% Suspension 4.8% Exhaust and fuel parts system parts Exhaust and fuel 7.6% system parts 50.4% 29.7% Sales (excluding parts Sales supplied by 795.8 billion yen customers) 449.6 billion yen Body and interior part
Slide 14: Contents
Contents 14 1. Overview of the Fiscal Year Ended March 31, 2024 2. Full-Year Earnings Forecasts for the Fiscal Year Ending March 31, 2025 3. Reference 4. Progress on Medium-Term Management Plan, etc. © FUTABA INDUSTRIAL CO.,LTD. All rights reserved
Slide 15: Progress on Medium-Term Management Plan, etc.
Progress on Medium-Term Management Plan, etc. 15 Improve financial condition Strengthen corporate competitiveness and strength Risks and opportunities © FUTABA INDUSTRIAL CO.,LTD. All rights reserved
Slide 16: Improve financial condition
Improve financial condition 16 <Use> (1) Shareholder returns Strengthening earnings capacity and working to (2) Repayment of increase free cash flow (FCF) interest-bearing debt (3) Investment in growth FY2022-FY2024 Target Medium-Term Management Plan 5% 50.0 Operating profit ratio (net sales excludi
Slide 17: Improve financial condition
Improve financial condition 17 Operating profit ratio Capital expenditures Operating profit Profit margin Billion yen Billion yen % 25.0 Target in operating profit ratio: 2.6% ‐ 5.0% 5 40.0 4.3 20.0 3.7 4 30.0 15.0 3 2.6 2.4 2.2 2.2 2.2 20.0 1.9 34.4 10.0 1.7 2 31.9 31.2 19.2 1.5 29.0 27.2 16.0 25.8
Slide 18: Improve financial condition: Free cash flows
Improve financial condition 18 Free cash flows Billion yen Target in FCF: 6.0 − 15.0 billion yen 60.0 +41.1 40.0 +25.4 20.0 +7.5 +5.2 -2.1 0.0 +0.0 -1.8 -5.5 -20.0 -40.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 (FY) Forecast Operating CF Investing CF FCF Seek to improve free cash flows． Allocate
Slide 19: Improve financial condition: Shareholder returns
Improve financial condition 19 (1) Shareholder returns (2) Repayment of interest-bearing debt Dividend per share Dividend Billion yen Equity ratio yen payout ratio (%) (%) 50 40 140.0 50 37.2 27.1 29.4 40 45 25.5 24.4 30 21.9 120.0 25.8 26.4 26.6 26.8 27.2 30 22.4 40 20 20 98.1 35 35 35 10 100.0 10
Slide 20: Improve financial condition: Investments in growth
Improve financial condition 20 (3) Investments in growth (research and development expenses) Billion yen 6.0 5.0 5.0 4.4 4.2 4.0 3.4 3.4 3.2 3.3 3.2 3.0 2.0 1.0 0.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 (FY) Forecast Existing development fields Advanced development fields Increase the ratio o
Slide 21: Improve financial condition: Share price and PBR
Improve financial condition 21 Carry out management with attention to capital cost and share price with a view to quickly reaching a price-to-book-value ratio of 1 ➢ Set the ROE target at 10% or higher to boost capital profitability ➢ Promote objectives-oriented activities on a region-by-region basi
Slide 22: Improvement in breakeven point (Japan)
Improve financial condition 22 Improvement in breakeven point (Japan) <Daily activities> • Improved productivity • Quality improvement (improvement 100% of defect rates) • Yield improvement <Special activities> Best practice activities • Improve productivity in pressing • Integrate and suspend produ
Slide 23: Best practice activities
Improve financial condition 23 Best practice activities <Improve productivity in pressing> <Integrate and suspend production lines> Two-shift operation ratio Improve productivity in transfer pressing 100% Okazaki: 2,000 t / Mutsumi: 2,000 t, 1,500 t, 800 t Number of production line 90% 600 Okazaki N
Slide 24: Improvement in breakeven point (North America)
Improve financial condition 24 (North America) Special project driven by the local top management Improvement in breakeven point (North America) 100% [Purpose] • Improvement of breakeven points through earnings structure reforms [Strategy] • Thorough earnings structure analysis • Setting of targets
Slide 25: Improvement in breakeven point (China)
Improve financial condition 25 (China) Survival strategies with an eye on new phases Improvement in breakeven point (China) [Background] 100% • Struggling sales of Japanese brand OEMs due to the rise of Chinese brand OEMs Decline in the number of vehicles produced and further intensification of co
Slide 26: Progress against Medium-Term Management Plan, etc.
Progress against Medium-Term Management Plan, etc. 26 Improve financial condition Strengthen corporate competitiveness and strength Risks and opportunities © FUTABA INDUSTRIAL CO.,LTD. All rights reserved
Slide 27: Strengthen corporate competitiveness - Progress in DX
Strengthen corporate competitiveness and strength - Progress in DX 27 [Implementation of development process transformation] Facilitated transformation to create a process in which development is made in a digital space by utilizing 3D data of products, equipment and plants, and implemented activiti
Slide 28: Progress in DX: Production process reforms
Strengthen corporate competitiveness and strength - Progress in DX 28 [Implementation of production process reforms] Advance activities to reduce production management man-hours by half through the creation of a virtual one factory Production Logistics Remote and intensive factory management Intensi
Slide 29: Progress against Medium-Term Management Plan, etc.
Progress against Medium-Term Management Plan, etc. 29 Improve financial condition Strengthen corporate competitiveness and strength Risks and opportunities © FUTABA INDUSTRIAL CO.,LTD. All rights reserved
Slide 30: Risks and Opportunities: Impact of BEV Conversion
Risks and Opportunities: Impact of BEV Conversion 30 <Worldwide New Vehicle Sales Forecast> ・・・ BEV ・・・ Engine-equipped vehicles Forecast of impact on Futaba consolidated sales 6% (Excluding automobile-related parts and supplied items) Approx. 40% Sales Slightly more decrease Projection than 10% Exh
Slide 31: Response to the Adoption of GigaCast
Risks and Opportunities - Response to the Adoption of GigaCast 31 Consider providing larger and more integrated components Future Zone development Present Past Tesla Model Y Components for GigaCast medium-scale assembly Indicates half of the product Components for small-scale assembly Source: A2MAC1
Slide 32: Sales Expansion - Body Parts and Added Value
Risks and Opportunities: Sales Expansion - Expanding Sales of Body Parts and Increasing Added Value 32 (1) Zone development (2) Responding to shift to ultra-high tensile strength steel (Contributes to weight reduction of cars) We will continue to proactively propose structures Proposals based that b
Slide 33: Sales Expansion - Share of Exhaust System Products
Risks and Opportunities: Sales Expansion - Increasing Share of Exhaust System Products 33 (1) India: Expand sales by expanding (2) Newly developed product: Modular muffler OEM business Million Forecast for OEM in India Conventional muffler Module muffler vehicles 4 Reduced size Reduced Battery Batte
Slide 34: Product Development for BEV and HV
Risks and Opportunities: Sales Expansion - Product Development for BEV and HV 34 (1) Development of products for BEV (2) Development of hydrogen utilization technology for HVs Under development with Chiba University and IHI Aim to reduce CO2 emissions by 30% by Battery realizing ultra lean combustio
Slide 35: Sales Expansion - New Businesses
Risks and Opportunities: Sales Expansion - New Businesses 35 (1) CO2 collection business for logistics trucks <Business Proposition Value> Contribute to the achievement of decarbonization in the logistics industry, aiming to balance global environmental sustainability and quality of life. <Business
Slide 36: New Businesses: Laser weeding and biomass system
Risks and Opportunities: Sales Expansion - New Businesses 36 (2) Laser weeding machine (3) Woody biomass combustion type “Green Food System Strategy” (formulated by the photosynthesis promotion system Ministry of Agriculture, Forestry and Fisheries) Develop a carbon-neutral CO2 application machine t
Slide 37: Conclusion
Conclusion 37 We will continue to provide many stakeholders with products and services that offer value to society from three perspectives. Clean & Green represents exhaust system parts that reduce negative impacts on the natural environment. Peace of mind represents body/interior parts that protect
Slide 38: Futaba Industrial Co., Ltd.
Futaba Industrial Co., Ltd. https://www.futabasangyo.com/ [Important Notes] Forecasts and other forward-looking statements about the Company (including its consolidated subsidiaries) contained in this document are management's forecasts based on the information currently available to the Company and