Aisin Corporation · TSE:7259
Aisin — Aisin Seiki — Corporate Update (April 2019)
16 slides from Aisin's corporate update, Apr 26, 2019
Slide 1: Midterm Strategy and Target towards Sustainable Growth
Midterm Strategy and Target towards Sustainable Growth April 26, 2019 Kiyotaka Ise, President of Aisin Seiki Co., Ltd.
Slide 2: Midterm Target for FY2024
１. Midterm Target for FY2024 FY2020 at the bottom, We will target for 7% and more Operating Profit Rate on FY2024 （100Million Yen） 50,000 売上 12.0% 営業利益率 11.0% 40,000 10.0% 30,000 9.0% 8.0% 20,000 7.0% 6.0% 10,000 5.0% 0 4.0% 2016 2017 2018 2019 2020 2021 2022 2023 (FY） 1 2017 2018 2019 2020 2021 202
Slide 3: Strategy ①Powertrain: Forecast of Powertrain Global Market
２．Strategy ①Powertrain 【1】 Forecast of Powertrain Global market Although the growth of Powertrain global market is expected to delay 2 to 3 years from forecast of last year, It shall reach 13Million Units on FY2024. (1)Forecast of Global market (2)Forecast of Aisin Group（AT, HV Transmission, eAxle）
Slide 4: Strategy ①Powertrain: Production Plan of Each Region
2. Strategy ①Powertrain 【2】 Production Plan of each region Production plan of each region is revised following the change in market trend. Production Vol. by region (10K Units/Year ） （ Forecast of FY2020 on Mar 2018） (10K Units/Year） 1,150 China North America （240） 1,100 1,020 180 220 200 200 （60） 9
Slide 5: Strategy ①Powertrain: Change of Electrification Products Composition
2. Strategy ①Powertrain 【3】 Change of Electrification Products composition Electrification Products (i.e HV Transmission, eAxle)will be launched assertively, in order to meet the growing demand. Ratio of Electrification Products 20.0% Vs FY2019 +15％ 9.0% 5.0% 6.0% (10K Units/Year） 1,300 1,150 999 1,
Slide 6: Strategy ②Product Lineup to meet CASE demand
2. Strategy ②Product Lineup to meet CASE demand For further development, Product Lineup responding for CASE will be expanded. Connected Electrification Automated Driving Sharing & Service ・1 Motor ＨＶ Transmission ・Vehicle Dynamics Control ・Body components for MaaS ・2 Motor ＨＶ Transmission ・Electroni
Slide 7: Strategy ③Resource shift onto CASE Products and increase of sales
2. Strategy ③Resource shift onto CASE Products and increase of sales For further sales increase, We will shift our resource on CASE Products CASE Ratio R 27％ & D 2019 2024 2031 (FY） CASE Ratio S 11％ a l e s 2019 2024 2031 (FY） 6
Slide 8: Scrap & build work with no exceptions
3. Strengthening Company Structure Achievement of Shifting our Resource for CASE is Sustainable necessary Growth Strategy Scrap＆build Concentrate the group’s resources on growth products and change the work with no profit structure by scrapping exceptions unprofitable products Establish a lean manag
Slide 9: Major Scrap of Business
3. Strengthening Company Structure ①Scrap & build work with no exceptions Major Scrap of Business □Sewing Machine Business which contributed to our profit during the foundation period □Bed Business started as TOYOTA Bed on 1966 □Deficit Automotive parts Business Scrap with no exceptions Shift the re
Slide 10: Saving up Fixed Cost
3. Strengthening Company Structure ②Saving up Fixed Cost Fixed cost increase due to sales inc. will be under control, and level of fixed cost will below FY2019 Fixed cost Establish a lean management structure （Except R&D, Depreciation） Save up More than 10% Fixed cost inc. Due to Sales inc. 【From fe
Slide 11: Integration of subsidiaries and management
3. Strengthening Company Structure ②Saving up Fixed Cost Establish a lean management structure - From federal management to integrated group management- Integration of management factors Integration of subsidiaries between subsidiaries Integration of AW and AI-A Image of Business integration Kyushu
Slide 12: Accelerate Integration of Subsidiaries at All Regions
3. Strengthening Company Structure ②Saving up Fixed Cost Establish a lean management structure - From federal management to integrated group management- Accelerate Integration of subsidiaries and management at all regions 218 Companies of Aisin Group （134 Overseas, 84 Domestic） Europe Japan North Am
Slide 13: Strengthening Company Structure
3. Strengthening Company Structure ②Saving up Fixed Cost Establish a lean management structure - From federal management to integrated group management- By aggregating the function to Group Headquarter, enhancement of management and saving up of fixed cost will be achieved. 12
Slide 14: Improving Productivity in Indirect Division: Workstyle Reform
3. Strengthening Company Structure ②Saving up Fixed Cost Improving productivity in Indirect division -Workstyle Reform- Workstyle Reform Kaizen overcoming Scrap of time Digitalize ＋ the precedent ＝ consuming work Introducing Scrap of unimportant paper work IoT, MBD, RPA・・・ Reduce of meeting hours… I
Slide 15: Midterm Target for FY2024
Midterm Target for FY2024 FY2020 at the bottom, We will target for 7% and more Operating Profit Rate on FY2024 （100Million Yen） 50,000 売上 Sales Operating Profit Rate 営業利益率 12.0% ROE 11.0% 40,000 10.0% 30,000 9.0% 8.0% 20,000 7.0% 6.0% 10,000 Sales of CASE 5.0% 0 4.0% 2016 2017 2017 2018 2018 2019 20
Slide 16: For a Better Tomorrow
For a Better Tomorrow /_\ AISIN croup 15