Futaba Industrial Co., Ltd. · TSE:7241
Futaba Industrial — FY2024 Earnings Presentation
47 slides from Futaba Industrial's earnings presentation, May 2025
Slide 1: Earnings Results Presentation FY2024 (111th term)
Earnings Results Presentation FY2024 (111th term) May, 2025 Futaba Industrial Co., Ltd. （＃7241）
Slide 2: Contents
Contents １．FY2024 Financial Results ２．FY2025 Forecast ３．Appendix © FUTABA INDUSTRIAL CO.,LTD. All rights reserved 1
Slide 3: PL Summary
PL Summary Unit : 100 Mill JPY FY2024 FY2023 Diff Diff Ratio Sales [Incl.DS] 7,071 7,958 ▲886 ▲11.1% [Excl.DS] 4,422 4,496 ▲73 ▲1.6% Operating (2.1%) (2.4%) Profit 151 (3.4%) 192 (4.3%) ▲40 ▲21.0% Ordinary (1.9%) (2.3%) Profit 132 (3.0%) 184 (4.1%) ▲52 ▲28.2% Profit attributable (0.9%) (1.6%) to own
Slide 4: Consolidated PL summary: Sales detail, DS, Material, Exchange rate impact
〈Consolidated〉 PL summary Sales detail: DS & Material, Exchange rate Impact ◆ Sales Sales(Excl. DS) Unit：100 Mill JPY DS amount FY2023 FY2024 4Q Actual 4Q Actual 7,958 ▲886 7,071 3,462 ・Sales including DS parts : ▲886 2,649 〈+22.6%〉 ▲73 ・Sales excluding 〈+3.0DS %〉 parts : ▲73 4,496 4,422 ・Sales excl
Slide 5: Sales & Operating Profit by segments Excl.DS
Sales & Operating Profit by segments Excl.DS Unit:100 Mill JPY Diff FY2024 FY2023 Diff Ratio Sales Japan [Excl.DS] 2,167 2,255 ▲88 ▲3.9% Operating Profit 59 (2.7%) 98 (4.3%) ▲38 ▲39.7% Sales North [Excl.DS] 1,240 1,111 +128 +11.6% America Operating Profit 27 (2.2%) 34 (3.1%) ▲7 ▲21.9% Sales Europe [
Slide 6: Op Flux Analysis FY23 vs FY24
Op Flux Analysis FY23 vs FY24 Unit:100 Mill JPY Gap Total ▲40 ( 192 → 151 ) Favorable Unfavorable Parts Sales Vol FY2023 Bussines other than ▲68 Depreciation parts business Sales Price Price pass- +43 ▲16 FY2024 Revision Material･Labor through ▲13 ･Expence +48 ▲90 Kaizen Inflation･ 192 Recovery +56
Slide 7: Explanation of non-operating items
Explanation of non-operating items Unit:100 Mill JPY FY2024 FY2023 Diff Comments Operating Profit 151.7 192.1 ▲ 40.3 Non-Operating Profit 27.4 33.7 ▲ 6.3 Non-Operating Loss 46.4 41.0 +5.3 Ordinary Profit 132.8 184.8 ▲ 52.0 Extraordinary Profit 20.0 - +20.0 Extraordinary Loss 52.0 - +52.0 Costs for P
Slide 8: Contents
Contents １．FY2024 Financial Results ２．FY2025 Forecast ３．Appendix © FUTABA INDUSTRIAL CO.,LTD. All rights reserved 7
Slide 9: FY2025 Forecast
FY2025 Forecast Unit :100 Mill JPY FY2025 FY2024 Diff Forecast Actual Diff Ratio Sales [Incl.DS] 6,800 7,071 ▲271 ▲3.8% Sales [Excl.DS] 4,200 4,422 ▲222 ▲5.0% Operating (2.4%) (2.1%) Profit 160 (3.8%) 151 (3.4 ) % +8 +5.4% Ordinary (2.4%) (1.9%) Profit 160 (3.8%) 132 (3.0 ) % +27 +20.5% Profit (1.8%
Slide 10: Sales & Operating Profit by segments FY24 vs FY25 Forecast
Sales & Operating Profit by segments FY24 VS FY25 Forecast Sales Incl.DS Operation Profit Unit :100 Mill JPN Sales Excl.DS Operating profit/sales Excl.DS ratio Total JPN NA 5.2 3.8 3.4 3.2 2.7 2.2 7,071 6,800 3,290 3,220 2,063 2,110 4,422 151 4,200 160 66 2,167 59 2,110 67 1,240 27 1,280 FY2024 FY20
Slide 11: OP Flux Analysis FY24 vs FY25 Forecast
OP Flux Analysis FY24 vs FY25 Forecast GAP Total +8 ( 151 → 160 ) Unit :100 Mill JPY Favorable Unfavorable Bussiness other than parts Kaizen Depreciation business Parts sales +61 +12 ▲34 Other FY2025 FY2024 Vol Sales Price Price pass- ▲6 Forecast ▲21 Revision Material･Labor through ▲21 ･Expense +98
Slide 12: Contents
Contents １．FY2024 Financial Results ２．FY2025 Forecast ３．Appendix © FUTABA INDUSTRIAL CO.,LTD. All rights reserved 11
Slide 13: Sales by customer
Sales by customer The figure in （ ） shows profit /sales ratio Unit：100Mill JPY Incl.DS FY2024 FY2023 Diff Diff Ratio ※1Toyota Group 5,820 (82.3%) 6,484 (81.5%) ▲663 ▲10.2% Suzuki 556 (7.9%) 682 (8.6%) ▲125 ▲18.5% Mitsubishi Motors 195 (2.8%) 223 (2.8%) ▲28 ▲12.6% ※2 Nissan Group 97 (1.4%) 95 (1.2%)
Slide 14: FY24 Percentage of sales by Product Category
FY24 Percentage of sales by Product Category Other Other Suspension 4.7% 7.3% 5.7% Suspension Exhaust/fuel Exhaust/fuel 8.3% JPN system JPN system 14.4% 28.6% CHN 23.0% 4.5% 49.6% NA EUR CHN 5.8% 4.5% 5.9% EUR Sales Incl.DS EUR Sales Excl.DS CHN 2.8% 1.9% NA 7,071 5.5% 4,422 Asia 15.5% NA 3.6% Unit:
Slide 15: Medium-Term Management Plan 2025-2027
TSE Prime Market NSE Premier Market Securities Code: 7241 Futaba Industrial Co., Ltd. Medium-Term Management Plan 2025―2027 May 14, 2025
Slide 16: Agenda
Agenda Review of the Previous Medium-Term I Management Plan (2022-2024) New Medium-Term Management Plan II (2025-2027) (i) Current Perception of the Business Environment (ii) FUTABA's Vision (iii) Business Strategy (iv) Financial and Capital Strategy 15
Slide 17: Review of the Previous Medium-Term Management Plan (2022-2024)
I. Review of the Previous Medium-Term Management Plan (2022-2024) Review Theme of the previous Medium-Term Management Plan Strengthening earnings capacity and working to increase free cash flow (FCF) The targets for management indicators were met and this helped improve the financial situation. Indi
Slide 18: Review of the Previous Medium-Term Management Plan: Debt repayment
I. Review of the Previous Medium-Term Management Plan (2022-2024) Review Theme of the previous Medium-Term Management Plan Strengthening earnings capacity and working to increase free cash flow (FCF) Repayment of interest-bearing debt improved the financial situation. 100 Mill JPY Interest-bearing d
Slide 19: Review of Previous Plan: Future issues
I. Review of the Previous Medium-Term Management Plan (2022-2024) Future issues Item Issue • Body parts business: Enhance development and capacity with a view to expanding sales • Exhaust system parts business: Develop new systems geared to needs for electrification Growth strategy • New businesses:
Slide 20: Agenda
Agenda Review of the Previous Medium-Term I Management Plan (2022-2024) New Medium-Term Management Plan II (2025-2027) (i) Current Perception of the Business Environment (ii) FUTABA's Vision (iii) Business Strategy (iv) Financial and Capital Strategy 19
Slide 21: Current Perception of the Business Environment
II. - (i) Current Perception of the Business Environment Forecast share of BEVs Forecast Forecastshare of BEVs of impact on in global new in global new vehicle sales Futaba sales vehicle consolidated sales * Excluding PHEVs * Excluding automobile-related parts and supplied items Popularization of BE
Slide 22: FUTABA's Vision: Growth investment
II. - (ii) FUTABA's Vision Position of Medium-Term Management Plan 2025-2027 2030 Objective Medium-Term Management Plan 2025 - 2027 Stable growth Previous Medium-Term on a global scale Management Plan Growth 2022 - 2024 investment Improve financial condition • Improve the return on • Grow existing •
Slide 23: Business Strategy
II. - (iii) Business Strategy Growth of existing businesses (products) / Launch of new businesses <Three strategies for expanding sales> Body parts business: Enhance development and capacity with a view to expanding sales Exhaust system parts business: Develop new systems geared to needs for electri
Slide 24: Body Parts Business
II. - (iii) Business Strategy: Body Parts Business Vision A team with capabilities in manufacturing and structural proposals to enable body design and analysis operations for automobile manufacturers FUTABA's strengths Initiatives for the future Improvement in computer-aided engineering Develop ligh
Slide 25: Body Parts Business: Larger and more integrated parts
II. - (iii) Business Strategy: Body Parts Business TOPIC Initiatives for larger and more integrated parts Before Present Future Zone development for larger parts Further expansion Improvement of profit Components for small- Components for medium-scale assembly Proposals of integrated structures scal
Slide 26: Body Parts Business: Roadmap
II. - (iii) Business Strategy: Body Parts Business Roadmap Participate in the vehicle planning and concept phase to collaboratively create designs with automobile manufacturers and to supply high value-added parts 評価 Production 生産 Evaluation 解析 Analysis Small 小規模組立assembly Medium 中規模組立 assembly Cons
Slide 27: Exhaust System Parts Business
II. - (iii) Business Strategy: Exhaust System Parts Business Vision Develop new exhaust systems suited to needs for electrification (Develop full modular mufflers / Increase production efficiency) FUTABA's strengths Initiatives for the future Holding of the largest market share in Develop new exhaus
Slide 28: Exhaust System Parts Business: Roadmap
II. - (iii) Business Strategy: Exhaust System Parts Business Roadmap Evolve from modular devices into full modular mufflers Present Addition of modular devices Future Full modular mufflers Before Sales promotion activities for Combination of small and PHEVs and HEVs standardized mufflers Battery Bat
Slide 29: New Businesses: Core technologies
II. - (iii) Business Strategy: New Businesses Correlations between core technologies and new businesses CO2 systems Exhaust pipe Purifying Energy circulation Absorption systems Canister Exhaust heat Thermal Laser mowing recovery devices management robots Laser welding Laser Battery cell cases Batter
Slide 30: New Businesses: Agricultural business (agleaf)
II. - (iii) Business Strategy: New Businesses Agricultural business (agleaf) Commercially available ® agleaf CO2 system Continuous improvement Decrease in exhaust gas Nighttime Daytime • Increase in CO2 recovery efficiency → Feeding of CO2 at high Local feeding of CO2 concentrations for a long time
Slide 31: New Businesses: Battery products and others
II. - (iii) Business Strategy: New Businesses Battery products Develop new products with the use of core technologies [Battery cell case] [Battery] [Battery cooling plate] Other businesses Advertise an environmental, reassuring and fulfilling life through new businesses to society [Ultra-small solid
Slide 32: India Business
II. - (iii) Business Strategy: India Business Vision Expand business and achieve growth in line with growth of automobile manufacturers (OEM) * A location with dotted lines is under consideration. FTB OEM OEM FTB FTB OEM FTB OEM FTB FTB OEM OEM OEM Present Future FUTABA's strengths Implement Japanes
Slide 33: India Business: Sales target and investment
II. - (iii) Business Strategy: India Business Initiatives for the future vision Capitalize on strengths to gain more orders Make efficient investments (collaboration with local suppliers and reduce the investment unit cost) Hire and train local personnel Turn the equipment business into a local busi
Slide 34: Strengthen the Management Base
II. - (iii) Business Strategy: Strengthen the Management Base Vision Building a strong management base to increase the operating profit ratio and return on equity (ROE) Business strategies Earnings capacity Strategies that are strengthened Increase earnings • Shorten the lead time / Reduce investmen
Slide 35: Shorten the lead time / Reduce investments
II. - (iii) Business Strategy: Strengthen the Management Base TOPIC (i) Shorten the lead time / Reduce investments Preparation for 3D measurement Introduce a Improve consideration precision and achieve production through catalog line 3D processes earlier implementation Second process First process L
Slide 36: Improve quality and yield
II. - (iii) Business Strategy: Strengthen the Management Base TOPIC (ii) Improve quality and yield <Digital Transformation> Prevention of cracks in the pressing process (to reduce defective products to be discarded) Check meeting for transition Meeting for transition to start of work T0 check meetin
Slide 37: Smart factory
II. - (iii) Business Strategy: Strengthen the Management Base TOPIC (iii) Smart factory Automated Automated Automated transportation Automated loading of palletization palletizationand and pressed products depalletization depalletization H2 AI and software Use sunlight and hydrogen to create plants
Slide 38: Investment in Personnel
II. - (iii) Business Strategy: Strengthen the Management Base (Investment in Personnel) Vision Support job satisfaction and the growth of individuals to build the foundations for independent behaviors to facilitate reforms To boost job satisfaction, the reforms have been conducted immediately to cha
Slide 39: Investment in Personnel: Workplace metrics
II. - (iii) Business Strategy: Strengthen the Management Base (Investment in Personnel) 80% Workplace questionnaires Technical skilled workers 180 Number of clerical and skilled workers transferred (people) Clerical and skilled workers 167 74% 161 75%Good 160 155 71% 71% 144 70% 68% 69% 70% Targets
Slide 40: Investment in Personnel: Future initiatives
II. - (iii) Business Strategy: Strengthen the Management Base (Investment in Personnel) Future initiatives Execute priority measures to increase employees' job satisfaction — Helping as many employees as possible achieve personal growth through their work Every employee plays an active role Increase
Slide 41: Carbon Neutrality
II. - (iii) Business Strategy: Strengthen the Management Base (Carbon Neutrality) Vision Global: 50% or more (4.6% per year*) in FY2030 (from the FY2019 level) Japan: Efforts to achieve carbon neutrality in 2030 * The pace of reduction was increased from 3% per year to 4.6% per year in October 2
Slide 42: Carbon Neutrality: Activities to meet targets
II. - (iii) Business Strategy: Strengthen the Management Base (Carbon Neutrality) Step up activities to meet challenging targets Seek body structure with low weight and Best practice activities high tensile strength Consolidation of operations on Advance processing technologies for production lines
Slide 43: Financial and Capital Strategy: PBR and ROE
II. - (iv) Financial and Capital Strategy Theme of New Medium-Term Management Plan Improve profitability with a view to attaining a PBR of 1 swiftly Indicators ROE Operating profit ratio Targets 10% or higher 5.0% (FY2027) PBR and ROE PBR (= Stock price at end of period/BPS) ROE (return on equity) *
Slide 44: Initiatives to raise ROE
II. - (iv) Financial and Capital Strategy Initiatives to raise ROE ◼ Carry out development and increase capacity for expanding net sales Improvement Net profit ratio in the body parts business of ROE Improvement of profitability ◼ Develop new systems geared to needs for electrification ◼ Accelerate
Slide 45: Cash allocation
II. - (iv) Financial and Capital Strategy Cash allocation Allocation: Repayment of interest-bearing debt Investment in future growth and shareholder return Previous Medium-Term Management Plan New Medium-Term Management Plan 前中期経営計画 2022-2024 2022-2024 新中期経営計画 2025-2027 2025-2027 [Cash inflows] 【キャッ
Slide 46: Shareholder returns
II. - (iv) Financial and Capital Strategy Shareholder returns Progressive dividends with a minimum dividend on equity (DOE) of 3.5% 1株当たり年間配当額（円） Annual dividend per share (yen) 38 40 35 15 10 10 10 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 Previous Medium-Term New Medium-Term 前中期経営計画 Manage
Slide 47: Futaba Industrial Co., Ltd. Precautions
Futaba Industrial Co., Ltd. https://www.futabasangyo.com/ [ Precautions ] The outlook regarding our company (including consolidated subsidiaries) disclosed in this document is based on information currently available to our management and is subject to risks and uncertainties. Therefore, we kindly a