Slide 1: Financial Results for FY 2019 Second Quarter
Financial Results for FY 2019 Second Quarter 11/8/2018 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 2018 Q2 Actual FY 2019 Q2 Actual Difference Sales 107,511 ― 115,393 ― 7,882 7.3% Operating Income 3,902 3.6% 2,995 2.6% ▲907 ▲23.3% Income before tax 3,248 3.0% 2,567 2.2% ▲680 ▲20.9% Profit Attributable to owners of parent 1,96
Slide 5: Consolidated Sales by Segment (Year on Year)
Consolidated sales by Segment (Year on Year) (Unit ：M yen) Consolidated sales by segment Share of Sales (%) 120,000 107,511 115,393 (Japan) Japan 15,108 Japan 12.5% Japan 13.1% 0.6% 100,000 Japan 13,393 Increase 80,000 N. America N. America N. America (N. America) N. America 59.8% 57.9% ▲1.9% 60,000
Slide 6: Operating Income by Segment (Year on Year)
Operating Income by Segment (Year on Year) (Unit ：M Yen) Operating Income Share FY 2018 FY 2019 FY 2018 FY 2019 Difference Difference Q2 Q2 Difference Q2 Q2 (%) (%) Actual Actual Actual Actual Japan 935 232 ▲703 ▲75.2% 24.0% 7.8% ▲16.2% N. America 727 ▲319 ▲1,046 ▲143.9% 18.6% ▲10.7% ▲29.3% Asia 2,2
Slide 7: 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 7
Slide 8: Consolidated Results Forecast Overview (FY 2019 Full Year)
Consolidated Results Forecast Overview (FY 2019 for the Full Year) (Unit ：M Yen) FY 2019 FY 2019 Difference Previous Forecast Current Forecast Sales 226,000 ― 233,000 ― 7,000 3.1% Operating profit 7,500 3.3% 6,500 2.8% ▲1,000 ▲13.3% Profit before tax 6,600 2.9% 5,600 2.4% ▲1,000 ▲15.2% Profit attrib
Slide 9: Consolidated Sales by Segment (FY 2019 Forecast)
Consolidated Sales by Segment (FY 2019 Forecast for the Full Year) (Unit ：M Yen) Consolidated Sales by Segment Share of Sales (%) 226,000 233,000 (Japan) Japan 14.4% ▲0.4% Japan 33,606 Japan 14.8% Decrease Japan 33,331 200,000 150,000 (North America) N. America N. America N. America N. America 1.0%
Slide 10: Operating Profit by Segment (FY 2019 Forecast)
Operating Profit by Segment (FY 2019 Forecast for the Full Year) (Unit ：M Yen) Operating Income Share FY 2019 FY 2019 FY 2019 FY 2019 Difference Difference Previous Current Difference Previous Current (%) (%) forecast forecast forecast forecast Japan 332 482 150 45.1% 4.4% 7.4% 3.0% North 1,723 669
Slide 11: Changes in Sales by Customer
Changes in Sales by Customer 172,456 175,579 196,343 197,941 226,060 233,000 100% 3.9% 3.9% 3.5% 3.9% 3.4% 3.4% 4.2% Other 90% 4.4% 4.0% 3.8% 3.5% 3.5% 3.1% FTC Suzuki 8.6% 9.5% 10.9% 12.0% 11.4% Mitsubishi 80% 12.7% Toyota Nissan 70% GM Honda 79.9% 79.0% 77.6% 76.4% 75.2% 72.7% 60% 50% FY 2014 FY 2
Slide 12: 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 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Total Asset 111,062 1
Slide 13: 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 13
Slide 14: Midterm Three-Year Plan - Basic policy -
Midterm Three-Year Plan - Basic policy - Corporate Policy FY 2017 FY 2018 FY 2019 FY 2020 Achieving strong financial positions and high profitability Actuals Target Consolidated Consolidated Sales Sales Operating 197.9 B Yen Operating 212 B Yen profit ratio profit ratio Interest bearing debt interes
Slide 15: 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 16: 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 17: Midterm Three-Year Plan - 2nd year plan vs actual -
Midterm Three-Year Plan - 2nd year plan vs actual - Midterm Plan – 2nd year plan vs actual (Billion yen) Midterm plan FY 2019 Rate of 2nd year 2Q actual progression Sales 207 115.3 55.7% Operating profit 9 2.99 33.2% Investment plan 13 2.94 22.6% Interest-bearing 54.6 52.7 Achieved debts Interest-be
Slide 18: Challenges and Activities in North America
Challenges and Activities in North America Challenges in NA region Activities to improve situation in NA Cost increase Cost reduction Labor, Outsourcing and In-house production, warehouse cost associated cost reduction, manpower reduction, etc. Loss increase Loss reduction Scrap/Additional Improve a
Slide 19: Current Status in North America
Current Status in North America External factors that deteriorate improvement outcome US trade policies : Tariff on imported materials from Canada and Mexico. Major customers : Changes in model mix Down Labor cost : Expense increase due to production increase in Canada Profit Profit Activities are m
Slide 20: 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 20
Slide 21: 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 Foreign OEMs Japanese OEMs GM: Suspension/mount parts are supplied Nissan: Control parts are suppli
Slide 22: Business Status - New model startups in the 1st half of FY 2019
Business Status – New model startups in the 1st half of FY 2019 Area Customer April May June July August September CR-V VEZEL HONDA Kuki Kuki Japan ⇒Japan ⇒Japan (EU) 【Legend】 Model Name OTHER Production location ⇒Where to ship RDX INSIGHT HONDA America North FPA ⇒USA OTHER CDX CRIDER SPIRIOR HONDA
Slide 23: Business Status - New model startups in the 1st half of FY 2019
Business Status – New model startups in the 1st half of FY 2019 CR-V CRIDER , SPIRIOR SOP : June 2018 SOP : Sep. 2018 Location : Japan (Kuki) Location : China (FTZ) Products : Suspension parts China (FTW) Mount parts Products : Suspension parts Pedal control parts Mount parts Mount parts Suspension
Slide 24: Research & Development Capability
Research & Development Capability < Ftech's unique development technology > Achieving optimum design by integrating existing know-hows and simulation technologies Improving Further Improving design accuracy weight reduction development speed Achieving the design Space beam analysis ・Minimize prototy
Slide 25: Collaboration
Collaboration Collaboration with Body frame parts ◆Material material manufacturers ・Steel : Mainly High Tensilie Strength Steel -Material evolution- (780～980Mpa class) Expanding the grades(Ultra high ◆Welding tensile steel) ・Mainly Resistance welding (Spot/Projection Weld) 590/780 ⇒ 980/1180 Product
Slide 26: Production Technologies
Production Technologies Ultra precision plastic processing technology Dissimilar material welding - steel and aluminum - by applying FSW technology Thickness increased area The world’s first 4 new technologies Thickness reduced area ・Dissimilar metal welding Material thickness technology 『Increased
Slide 27: IR Activities - For Investors -
IR Activities – For Investors - - Nikkei IR Fair - Booth Exhibit Date : Aug 31 – Sep 1, 2018 Location ： Tokyo Big Sight Company presentation - Individual Investors Meeting - Date ：Oct 24, 2018 Location ： Soka City Cultural Hall - Plant Tour for Institutional Investors - Date : Sep 28, 2018 Date : Oc
Slide 28: IR Activities - Engineering Exhibition -
IR Activities - Engineering Exhibition - - Automotive Engineering Expo - Date: July 11-13, 2018 Location: Portmesse Nagoya # of visitors：41,306 Booth exhibit, CFRTP application technology, FSW dissimilar material welding, Inverse torsion, Differential thickness crash torsion, etc. - 9th Light weight
Slide 29: CSR - Environment -
CSR - Environment - Octover 11, 2018： Invited to speak at "Energy Efficiency Nation Pertnership awards 2018" hosted by Ministry of Environment and Water resources, Singapore <Reference> June 2016: Energy Management Insight Award January 2017: Energy Conservation Grand Prize Chairman Prize of the Ene
Slide 30: 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. 44 students from 32 colleges in Tokyo Saitama area have received. Workshop for Kids Students
Slide 31: CSR - Social contribution - Rain storm hit western Japan
CSR - Social contribution - We would like to express our heartfelt sympathy to Supply relief goods everyone who has been affected by this disaster Rain storm hit western Japan in July 2018 Haga Technical Center Sent to: Disaster management HQ, Soja city, Okayama prefecture. Item: Canned bread Quanti
Slide 32: 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