F-tech Inc. · TSE:7212

F-tech — Q2 FY2015 Earnings Presentation

37 slides from F-tech's earnings presentation, Nov 5, 2014

  1. Slide 1: FY15 2nd Quarter Financial Results Meeting

    FY15 2nd Quarter Financial Results Meeting November 5, 2014 F.Tech Inc. TSE 1st Section: 7212 http://www.ftech.co.jp/ Copyright(c) 2014 F.tech Inc.All Right Reserved 1

  2. Slide 2: Table of Contents

    Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Features of the Company 4. Business Strategy 5. Topics Yuichi Fukuda Director & Executive Vice President Copyright(c) 2014 F.tech Inc.All Right Reserved 2

  3. Slide 3: Table of Contents

    Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Features of the Company 4. Business Strategy 5. Topics Yuichi Fukuda Director & Executive Vice President Copyright(c) 2014 F.tech Inc.All Right Reserved 3

  4. Slide 4: Consolidated Financial Results Overview (Year on Year)

    Consolidated Financial Results Overview (Year on Year) (Unit: Rounded down to the nearest million yen) Actual Q2 FY Ended Mar 2014 Actual Q2 FY Ending Mar 2015 Difference Amount of Amount Ratio to Sales Amount Ratio to Sales Ratio of Change Difference Sales 82,969 100.0% 84,450 100.0% 1,481 1.8% Ope

  5. Slide 5: Consolidated Sales (Year on Year)

    Consolidated Sales (Year on Year) 100,000 Consolidated Sales by Segment (Million yen) セグメント別連結売上高（金額） 売上高シェア（%） Share of Sales (%) 82,969 84,450 (Japan) 日本, 日本, 1. 1% 80,000 日本, 日本, Japan Japan Japan Decrease Japan 16.8% 15.7% 13,938 13,288 60,000 (North North America 北米, 北米, North America America)

  6. Slide 6: Operating Income by Segment (Year on Year)

    Operating Income by Segment (Year on Year) Actual Q2 Actual Q2 FY Mar 2014 FY Mar 2015 Rate of FX Difference Operating Share by Operating Share by Difference Impact Income Region Income Region Japan 419 13.1% 37 1.7% -381 -91.0% - North America 1,846 57.6% 1,711 76.6% -135 -7.4% 15 Asia 520 16.2% 19

  7. Slide 7: Factors in Changes in Operating Income (Year on Year)

    Factors in Changes in Operating Income (Year on Year) (Unit: Rounded down to the nearest million yen) Income Down Income Up -430 520 -390 -219 -153 -131 226 -973 Drop in mass Drop in new -73 model event production parts Drop in new Rise in mass sales Increase in R&D -243 sales model event production

  8. Slide 8: Table of Contents

    Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Features of the Company 4. Business Strategy 5. Topics Yuichi Fukuda Director & Executive Vice President Copyright(c) 2014 F.tech Inc.All Right Reserved 8

  9. Slide 9: Consolidated Results Forecast Overview (vs. Old Plan)

    Consolidated Results Forecast Overview (vs. Old Plan) (Unit: Rounded down to the nearest million yen) FY Mar 2015 FY Mar 2015 Change (Announced on Aug 4) (Announced on Nov 4) Amount of (Unit: Million yen) Amount Ratio to Sales Amount Ratio to Sales Change Rate of Change Sales 167,000 100.0% 171,000

  10. Slide 10: Change in Sales by Customer

    Change in Sales by Customer (Million yen) 200,000 150,000 100,000 他Other スズキ Suzuki 50,000 三菱 Mitsubishi トヨタ Toyota Nissan 日産 GM GM Honda ホンダ 0 FY Mar 2010 FY Mar 2011 FY Mar 2012 FY Mar 2013 FY Mar 2014 FY Mar 2015 (E) Honda 105,497 86.4% 111,300 80.8% 103,340 79.1% 116,046 80.5% 137,708 79.9% 136,

  11. Slide 11: Consolidated Sales Forecast (vs. Old Plan)

    Consolidated Sales Forecast (vs. Old Plan) 200,000 Consolidated Consolidated Sales Sales by Segment by Segment (Amount) (Million yen) ShareShare Sales of Sales (%) 167,000 171,000 Japan Japan Japan Japan (Japan) 150,000 27,754 26,384 16.6% 15.4% 1.2% Decrease 100,000 N. America N.America N. America

  12. Slide 12: Operating Income Forecast by Segment (vs. Old Plan)

    Operating Income Forecast by Segment (vs. Old Plan) FY Mar 2015 FY Mar 2015 Announced on Aug 4 Announced on Nov 4 Rate of FX Change Operating Share by Operating Share by Change Impact Income Region Income Region Japan 1,211 19.9% 1,342 24.2% 131 10.8% - N. America 3,814 62.5% 3,854 69.4% 39 1. 0% 14

  13. Slide 13: Factors in Operating Income Change (vs. Old Plan)

    Factors in Operating Income Change (vs. Old Plan) (Unit: Rounded down to the nearest million yen) Income down Income up -651 173 -173 327 -46 116 -65 -107 215 -273 -550 Increase in Rise in R&D Increase in -66 Rise in new start-up cost cost R&D cost Drop in mass model event allocation (Japan) Increas

  14. Slide 14: Financial Situation

    Financial Situation 140,000 60.0% 55.8% 120,000 49.1% 50.0% 43.6% 41.3% 39.6% 40.2% 40.0% 100,000 40.0% 80,000 30.0% 60,000 20.0% 40,000 10.0% 20,000 0 0.0% 09/3期 FY Mar 2009 FY10/3期 Mar 2010 FY11/3期 Mar 2011 FY12/3期 Mar 2012 FY13/3期 Mar 2013 14/3期 FY Mar 2014 15/3期(E) FY Mar 2015 (E) 総資産 Total Asse

  15. Slide 15: Dividend Situation

    Dividend Situation FY Mar 2015 Forecast Dividend End End End Q2 End Q4 Total Payout Q1 Q3 Ratio Dividend Forecast ー 10.00 yen ー 10.00 yen 20.00 yen 17.1% (Ref.) Actual Result of Previous Term ー 10.00 yen ー 10.00 yen 20.00 yen 7.8% FY Mar 2014 Change from ー ー ー ー ー 9.3% Previous Term Copyright(c) 201

  16. Slide 16: Table of Contents

    Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Features of the Company 4. Business Strategy 5. Topics Yuichi Fukuda Director & Executive Vice President Copyright(c) 2014 F.tech Inc.All Right Reserved 16

  17. Slide 17: Corporate Philosophy: Four Key Strengths

    1. Corporate Philosophy: Four Key Strengths Mission Statement From global perspective, we strive to contribute to our society and to improve the quality of life through manufacturing of highest quality products with ambition and sincerity. F-Tech Basic Principles Four Key Strengths Research & Develo

  18. Slide 18: Company Overview

    2. Company Overview Foundation July 1947 19 Showanuma, Shobu-cho, Kuki City, Head Office Saitama Prefecture Capital 4,790.37 million yen Sales 172,456 million yen (FY ended Mar 2014) No. of Associates 5,788 (As of end of March 2014) Listed TSE 1st Section [Security Code: Exchange 7212] Major Custome

  19. Slide 19: Business Contents (Overview of Products)

    3. Business Contents (Overview of Products) Business Contents: Underbody suspension arm, subframe, brake pedal, torsion beam for the automotive industry Rear Axle Beam Front Suspension Module Rear Suspension Module Front Lower Arm Trailing Arm Rear Subframe Front Subframe Accelerator Pedal Brake Ped

  20. Slide 20: Overview of Bases (1) - Bases in Japan

    4. Overview of Bases (1) - Bases in Japan Head Office/Kuki Factory Fukuda Engineering Kameyama Factory Haga T/C (Completed in Nov 2013) Kyushu F.tech Head Office Factory in Japan Reterra Subsidiary in Japan Copyright(c) 2014 F.tech Inc.All Right Reserved 20

  21. Slide 21: Overview of Bases (2) - Overseas Bases

    4. Overview of Bases (2) - Overseas Bases European Branch of F.Tech R&D N. America Production Bases (Est. Aug 2014) N. America ６ F.tech R&D (Guangzhou) (Canada, US, Mexico) (Est. Dec 2011) China ２ (Zhongshan, Wuhan) Asia ３ (Thailand, Philippines, Indonesia) Michigan Office of F.Tech R&D Centers R&D

  22. Slide 22: Table of Contents

    Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Features of the Company 4. Business Strategy 5. Topics Yuichi Fukuda Director & Executive Vice President Copyright(c) 2014 F.tech Inc.All Right Reserved 22

  23. Slide 23: Overview of 12th Mid-Term Three-Year Plan

    1. Overview of 12th Mid-Term Three-Year Plan Corporate Policy: To become a chassis system manufacturer with overwhelming competitiveness Basic Business Strategy Target 1. Change to Chassis System Structure Net sales 200 billion yen ・ Create a structure capable of developing a Performance chassis sys

  24. Slide 24: Activities under Mid-Term Plan: Change to Chassis System Structure

    2. Activities under Mid-Term Plan Change to Chassis System Structure System Development Activities for Chassis System Development Reduced number of parts  Developed as a system by adding dynamic composite →Contributed to cost reduction and weight reduction parts Previous Chassis Development  Devel

  25. Slide 25: Activities under Mid-Term Plan

    2. Activities under Mid-Term Plan  Four Bases and Europe: Conducting efficient development by assessing, before making a prototype, the strength, durability and development cost by using highly sophisticated simulation technology – the best in the industry ⇒ Sales expansion  Compete in the world m

  26. Slide 26: Activities under Mid-Term Plan: Simulation Technology

    2. Activities under Mid-Term Plan Best simulation technology and development process in the industry 1 Designing 2 CAE Simulation  Conceive products with the latest CAD system  Advance the optimal designing technology with the latest CAE analysis  Strengthen proposals as a chassis system  Realiz

  27. Slide 27: Activities under Mid-Term Plan: Evolution to Global Operations

    2. Activities under Mid-Term Plan Evolution to Global Operations Future Direction to Head In China N. America S.E.D.B S.E.D.B Simultaneous global development Japan S.E.D.B Creation of locally optimized specifications Competitive local parts production Asia Maximum utilization of local resources S.E.

  28. Slide 28: Activities under Mid-Term Plan: Sales/Distribution System

    2. Activities under Mid-Term Plan: Sales/Distribution System Establishment of Supply System for European/US OEM Manufacturers  Requested to supply globally, we need to develop a supply system for Europe, part of China, and other areas where we have no base. We will establish an optimal supply syste

  29. Slide 29: Strengthening of Environmentally Friendly Technology

    2. Activities under Mid-Term Plan Strengthening of Environmentally Friendly Technology Weight-reduction Technology Processing Technology  Further weight-reduction design for the chassis system (Optimization analysis) FSW=Friction Stir Welding  Evolution of core technologies (FSW, Hydroform, Pipe F

  30. Slide 30: Case of Weight-reduction Technology

    2. Activities under Mid-Term Plan Strengthening of Environmentally Friendly Technology Case of Weight-reduction Technology • Steel/Aluminum FSW Dissimilar Material Welding Hybrid Subframe = First technology of its kind in the world • Won the 60th Annual Okochi Memorial Technology Prize (which is awa

  31. Slide 31: Case of Lightweight Product

    2. Activities under Mid-Term Plan Strengthening Environmentally Friendly Technology Case of Lightweight Product  Development of locally optimized products (Ultralight, high stiffness, high strength, super- inexpensive)  Creation of in-house value-added (FIT WHEEL PLATE) Supplied by Customer Outsou

  32. Slide 32: FUT (F.tech Ultimate Technologies System)

    3. FUT (F.tech Ultimate Technologies System) Super-Precision Plastic Processing Technology “FUT-01” Started Operation in November! Previous FUT-01 Fine Blanking Super-Precision Plastic Processing Flat plate Step 1 Step 2 Step 3 is pressed Minimize Scraps Weight-reduction by Forming Scrap Utilization

  33. Slide 33: Growth Image Going Forward

    4. Growth Image Going Forward  Achieve the target earnings by implementing specific measures based on the mid-term business plan Chassis System  While firmly protecting the existing markets, introduce new technologies, Manufacturer and expand new customers and new business areas With Overwhelming

  34. Slide 34: Table of Contents

    Table of Contents 1. Financial Results Overview 2. Earnings Forecast 3. Features of the Company 4. Business Strategy 5. Topics Yuichi Fukuda Director & Executive Vice President Copyright(c) 2014 F.tech Inc.All Right Reserved 34

  35. Slide 35: Efforts for Environment and Society

    Efforts for Environment and Society Philosophy for Environment In order to become the top runner in the area of the environment in the automotive industry, we will make the utmost effort to establish a future with rich nature and low carbon. We will do this by having each of our associate’s extendin

  36. Slide 36: Participation in AluMag Symposium

    Participation in AluMag Symposium  In recognition of our weight-reduction technology, we were invited to and participated in the AluMag symposium Participants in Germany, which was highly recognized in Europe.  We made a presentation on our weight-reduction technology including FSW and others in f

  37. Slide 37: Contact and cautionary note on forecasts

    We disclose information in a timely and appropriate way on our website. http://www.ftech.co.jp/index.html http://www.ftech.co.jp/investors/investors_01. html The future outlooks and earnings forecasts in this document are made based on the information available at the moment, and they include potent

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