Toyota Boshoku Corp. · TSE:3116
Toyota Boshoku — FY2019 Earnings Presentation
63 slides from Toyota Boshoku's earnings presentation, May 2019
Slide 1: FY2019 Financial Results ended March 31, 2019
FOR LIMITED DISTRIBUTION 関係者外秘 FY2019 Financial Results ended March 31, 2019
Slide 2: Financial Results: Aim for Sustainable Growth
Financial Results Aim for Sustainable Growth
Slide 3: Table of contents
Table of contents [Year-on-year] 1. Financial Highlights 2. FY2019 Financial Results 3. FY2020 Financial Forecasts
Slide 4: Table of contents
Table of contents [Year-on-year] 1. Financial Highlights 2. FY2019 Financial Results 3. FY2020 Financial Forecasts
Slide 5: 1-1) Financial Highlights
1-1) Financial Highlights FY2019 Financial Results 1. Operating Income was lower due to Depreciation Costs increase in Japan, Start-up Costs in North America, and Forex impact in South America in spite of Volume increase in China and Model Mix Change in Japan. FY2020 Financial Forecasts 2. Opera
Slide 6: Table of contents
Table of contents [Year-on-year] 1. Financial Highlights 2. FY2019 Financial Results 3. FY2020 Financial Forecasts
Slide 7: 2-1) FY2019 Financial Results: Overview of Consolidated Financial Results
2-1) FY2019 Financial Results Overview of Consolidated Financial Results (100 million yen) (JGAAP) (JGAAP) FY2018 FY2019 YOY Change Net Sales 13,995 100.0% 14,064 100.0% 69 0.5% Operating Income 711 5.1% 580 4.1% -131 -18.4% Ordinary Income 728 5.2% 577 4.1% -150 -20.7% Profit* 427 3.1% 215 1.5% -21
Slide 8: 2-2) FY2019 Seat Assembly Production
2-2) FY2019 Financial Results Seat Assembly Production Total By Region (10,000 units) (10,000 units) +11 +1.5% YOY Change 751 Pct Change FY2018 FY2019 740 +0 +0.1% +16 +7.2% 315 316 -5 -4.2 % -0 235 -0.2 % 219 116 111 89 89 FY2018 FY2019 The Asia & Europe Japan Americas Oceania & Africa 3
Slide 9: 2-3) Net Sales & Operating Income by Region
2-3) FY2019 Financial Results Net Sales & Operating Income by Region Japan The Americas Income Variance ¥-160 (100M) Income Variance ¥+95 (100M) • Higher Sales due to Model Mix Change • Lower Sales due to Volume decrease in North • Lower Income due to Labor & Overhead Costs and Forex impact in South
Slide 10: 2-3) Net Sales & Operating Income by Region
2-3) FY2019 Financial Results Net Sales & Operating Income by Region Asia & Oceania Europe & Africa Income Variance ¥-64 (100M) Income Variance ¥-1 (100M) • Higher Sales due to Volume increase in China • Lower Sales due to production end of some models • Lower Income due to Impact of APA in spite of
Slide 11: 2-4) Operating Income Variance Analysis
2-4) FY2019 Financial Results Operating Income Variance Analysis (100 million yen) Operating Income -131(-18.4%) +52 -72 711 +38 -146 Volume Increase Model & New +165 -25 580 Product Mix Models -143 +0 (Value enhancement) Changes in FOREX Others Product Prices Increased Cost Overhead Reduction Costs
Slide 12: Table of contents
Table of contents [Year-on-year] 1. Financial Highlights 2. FY2019 Financial Results 3. FY2020 Financial Forecast
Slide 13: 3-1) FY2020 Consolidated Financial Forecasts
3-1) FY2020 Financial Forecasts TOYOTA BOSHOKU CORPORATION adopts IFRS to the group consolidated financial statement from FY2020. FY2020 Consolidated Financial Forecasts (100 million yen) (JGAAP) (IFRS) FY2019 FY2020 YOY Change Net Sales 14,064 100.0% 13,900 100.0% -164 -1.2% Operating Income 580 4.
Slide 14: 3-2) FY2020 Seat Assembly Production
3-2) FY2020 Financial Forecasts Seat Assembly Production Total By Region (10,000 Units) (10,000 Units) +24 YOY Change +3.2% Pct Change FY2019 FY2020 775 751 +5 +1.5% +4 +1.5% 320 +21 316 +19.1% -5 238 -6.0% 235 133 111 89 84 The Asia & Europe FY2019 FY2020 Japan Americas Oceania & Africa 8
Slide 15: 3-3) FY2020 Net Sales & Operating Income by Region
3-3) FY2020 Financial Forecasts Net Sales & Operating Income by Region Japan The Americas Income Variance ¥+77(100M) Income Variance ¥-169 (100M) • Lower Sales due to Model Mix Change • Higher Sales due to Volume increase in North • Higher Income due to Impact of APA * in spite of America Overhead C
Slide 16: 3-3) FY2020 Net Sales & Operating Income by Region
3-3) FY2020 Financial Forecasts Net Sales & Operating Income by Region Asia & Oceania Europe & Africa Income Variance ¥+70(100M) Income Variance ¥-29 (100M) • Lower Sales due to Volume decrease in Thailand and • Lower Sales due to Volume decrease Model Mix Change in spite of Volume increase in China
Slide 17: 3-4) FY2020 Operating Income Variance Analysis
3-4) FY2020 Financial Forecasts Operating Income Variance Analysis (100 million yen) Operating Income -50 (-8.7%) Change of Depreciation (fixed-rate method →straight-line method) etc. +56 -27 +9 -166 580 (JGAAP) (IFRS) New Volume Model & Product Mix Models +180 -1 520 +10 530 Increase (Value enhance
Slide 18: 3-5) FY2020 Financial Forecasts by Half Year
3-5) FY2020 Financial Forecasts by Half Year Net Sales (100 million yen) FY2020 1st Half 2nd Half Full Year Japan 3,850 3,550 7,400 The Americas 1,500 1,500 3,000 Asia & Oceania 1,750 1,750 3,500 Europe & Africa 450 450 900 Consolidation 7,100 6,800 13,900 Operating Income (100 million yen) FY2020 1
Slide 19: 3-6) Returning to Shareholders
3-6) FY2020 Financial Forecasts Returning to Shareholders ・In FY2019, we plan to pay an annual per-share dividend of ¥56, which is ¥2 higher than in FY2018. ・In FY2020, our annual per-share dividend payout plan is ¥56 as well as in FY2019. Dividend, Operating Income, & Profit Attributable to Owners
Slide 20: Financial Performance: Aim for Sustainable Growth
Financial Performance Aim for Sustainable Growth
Slide 21: Table of contents
Table of contents 1. Review of 2020 Management Plan 2. Initiatives toward Sustainable Growth
Slide 22: 1. Review of 2020 Management Plan
1. Review of 2020 Management Plan
Slide 23: Review of 2020 Management Plan
Review of 2020 Management Plan FOR LIMITED DISTRIBUTION 関係者外秘 Improve profitability of existing businesses and implement investments for future growth Predict changes in social needs, accelerate measures to create new value, and secure growth opportunities Reinforce existing core Actions in Mid-
Slide 24: Review of 2020 Management Plan
Review of 2020 Management Plan FOR LIMITED DISTRIBUTION 関係者外秘 Net sales, equity ratio, ROE, and dividend payout ratio have improved according to the Plan while operating income has not reached the target. 2020 management targets FY2019 FY2020 Item vision Actual Forecast FY2020 FY2021 Net Sales 1,406
Slide 25: Review of 2020 Management Plan (environmental changes and new tasks)
Review of 2020 Management Plan (environmental changes and new tasks) Gap between FY2020 management target and forecast (100 million yen) GAP -130 660 -60 600 -80 ±0 520 +10 530 Environmental changes Model mix change Decrease in cost IFRS Rise in raw materials reduction & Others prices increase in ov
Slide 26: Measures to reduce raw materials costs
Environmental Changes and New Tasks Interior & exterior and unit components関係者外秘 FOR LIMITED DISTRIBUTION businesses A-a) Measures to reduce raw materials costs (a) Soaring nylon raw materials prices Based on 2016 figure as 100 (case of 66 nylon) Soaring materials prices due to 195 123 shortage in s
Slide 27: Measures to reduce raw materials costs: low-cost materials, local procurement
Environmental Changes and New Tasks Interior & exterior and unit components関係者外秘 FOR LIMITED DISTRIBUTION businesses A-a) Measures to reduce raw materials costs (1) Switch to low-cost, proper-grade materials (unit components) Cylinder head cover Intake manifold (2) Promote local procurement includin
Slide 28: Raw materials cost reduction with suppliers
Environmental Changes and New Tasks Procurement area FOR LIMITED DISTRIBUTION 関係者外秘 A-a) Measures to reduce raw materials costs Promote activities in cooperation with suppliers <Reviewing appearance quality standards> <Cost reduction by bulk order of resin materials> Review appearance quality standa
Slide 29: Accelerate creation of a global management foundation
Environmental Changes and New Tasks FOR LIMITED DISTRIBUTION 関係者外秘 A-b) Accelerate the creation of a global management foundation Enhance business management capability by expediting decision making and increasing operation efficiency Advance management control (integrate corporate functions) (a) St
Slide 30: Transformation from CSR to CSV management
Environmental Changes and New Tasks FOR LIMITED DISTRIBUTION 関係者外秘 A-b) Accelerate the creation of a global management foundation (4) Transformation from CSR to CSV management <Actions> Review KPI control items from ESG/SDGs perspectives Incorporate strategies to overcome challenges into next manage
Slide 31: Innovation of vibrant work style
Environmental Changes and New Tasks FOR LIMITED DISTRIBUTION 関係者外秘 A-b) Accelerate the creation of a global management foundation (b) Innovation of vibrant work style <Overview of activities (birds-eye view)> <Actions> Productivity improvement Establish [From FY2018] IT tools environment Paperless T
Slide 32: Promote TQM activities
Environmental Changes and New Tasks FOR LIMITED DISTRIBUTION 関係者外秘 A-b) Accelerate the development of a global management foundation (c) Promote TQM* activities *Total Quality Management To acquire capabilities of Realize Vision “Organization” “Process” “People” Looking into the future, we will crea
Slide 33: Review of 2020 Management Plan (environmental changes and new tasks)
Review of 2020 Management Plan (environmental changes and new tasks) Gap between FY2020 management target and forecast (100 million yen) GAP -130 660 -60 600 -80 ±0 520 +10 530 Environmental changes Decrease in cost reduction & Others IFRS Model mix change Rise in materials increase in Exchange adju
Slide 34: Seat business strategy: Reinforce existing core businesses
Environmental Changes and New Tasks Seat business FOR LIMITED DISTRIBUTION 関係者外秘 Seat business strategy: Reinforce existing core businesses Aim Rebuilding the optimal production system to realize global product business strategies Reforming production style 1) Response to customer demand fluctuation
Slide 35: Separate concentrated production and JIT production
Environmental Changes and New Tasks Seat business FOR LIMITED DISTRIBUTION 関係者外秘 Separate concentrated production and JIT production to improve efficiency Integrate development after merger of businesses of Aisin Seiki and Shiroki Corporation Integrated seat development (1) Standardization of front
Slide 36: Rebuilding optimal seat production and supply
Environmental Changes and New Tasks Seat business FOR LIMITED DISTRIBUTION 関係者外秘 Rebuilding optimal seat production and supply FY2020 [current situation] From FY2021 Device Cover JIT Seat assembly JIT Cover Frame Seat assembly Device Frame Device Cover Device Pad Pad Device Device Cover JIT JIT JIT
Slide 37: Production technology innovation: Embody IoT
Environmental Changes and New Tasks Seat business FOR LIMITED DISTRIBUTION 関係者外秘 Production technology innovation to support optimal production Embody IoT Case: Seat assembly process From FY2021 FY2020 [current situation] Deploy at plants in Japan Deploy at model plants On-site information: Analysis
Slide 38: Production technology innovation: process innovation
Environmental Changes and New Tasks Seat business FOR LIMITED DISTRIBUTION 関係者外秘 Promote process Production technology innovation to support optimal production innovation Case: Seat assembly process FY2020 [current situation] From FY2021 Full automation of welding processes ((1) through (4)) Full au
Slide 39: Line adjustment according to production volume and automation
Environmental Changes and New Tasks Seat business FOR LIMITED DISTRIBUTION 関係者外秘 Line adjustment according to production volume and introduction of automation by area <Develop standard production processes resistant to quantity fluctuations> Response to quantity Process 50,000 units/year 200,000 uni
Slide 40: Case: Restructuring production/distribution in Japan region
Environmental Changes and New Tasks Businesses in関係者外秘 Japan FOR LIMITED DISTRIBUTION Case: Restructuring Profit issues production/distribution in Japan region <Actions> ◆ Production restructuring 1) Response to diversifying demand fluctuations ◆ Distribution restructuring 2) Response to social issu
Slide 41: 2. Initiatives toward Sustainable Growth
2. Initiatives toward Sustainable Growth
Slide 42: Review of 2020 Management Plan
Review of 2020 Management Plan FOR LIMITED DISTRIBUTION 関係者外秘 Improve profitability of existing businesses and implement investments for future growth Predict changes in social needs, accelerate measures to create new value, and secure growth opportunities Reinforce existing core Actions in Mid-
Slide 43: Review of 2020 Management Plan
Review of 2020 Management Plan FOR LIMITED DISTRIBUTION 関係者外秘 Improve profitability of existing businesses and implement investments for future growth Predict changes in social needs, accelerate measures to create new value, and secure growth opportunities Reinforce existing core Actions in Mid-
Slide 44: III-1. Commercialize new products in unit components business
Initiatives toward Sustainable Growth Unit components business III-1. Commercialize new products in unit components business Lithium-ion secondary batteries New business sales expansion •For FC (separators, etc.: orders New businesses received) • Sample shipment started for supercar •For electric (m
Slide 45: III-2. Compact car business for emerging markets
Initiatives toward Sustainable Growth Promoting new businesses III-2. Compact car business for emerging markets Development of products for compact vehicles in emerging markets almost completed (seat frames, devices, interior decorations, light-weight unit compoents, etc.) 1. Target of products for
Slide 46: III-2. Compact car business for emerging markets
Initiatives toward Sustainable Growth Promoting new businesses III-2. Compact car business for emerging markets 4. Establishing sales expansion structure in emerging countries By using TB bases operating in emerging countries and enhancing sales bases, expansion of sales to various car manufacturers
Slide 47: IV-1. Manufacturing evolution
Initiatives toward Sustainable Growth Production engineering field FOR LIMITED DISTRIBUTION 関係者外秘 IV-1. Manufacturing evolution Ongoing activities Planned activities Car manufacturer Production optimization High technical capability Offer the joy of creation Production Trend forecast optimization Im
Slide 48: V-1. Develop time and space, including control
Initiatives toward Sustainable Growth FOR LIMITED DISTRIBUTION 関係者外秘 V-1. Develop time and space, including control Aiming to become an interior space creator leading new space value creation 2018 2020 2025 2030 Expansion of CASE Lv2 Lv3 Lv4 Lv5 Fiercer competition Owner Car Shared Car Ride Share Ma
Slide 49: Offering an interior space in view of autonomous driving (CES2019)
Initiatives toward Sustainable Growth FOR LIMITED DISTRIBUTION 関係者外秘 V-1. Develop time and space, including control Offering an interior space in view of autonomous driving (CES2019) Space concept: Space that makes moving fun while constantly watching Value offered: Optimal safety and comfort approp
Slide 50: In-vehicle verification of Active Driver Engagement System
Initiatives toward Sustainable Growth FOR LIMITED DISTRIBUTION 関係者外秘 V-1. Develop time and space, including control In-vehicle verification of the Active Driver Engagement System under way Drowsiness estimation accuracy improved with information from eyelids, the world’s first comfortable keep-awake
Slide 51: Continuing to promote human-centered development
Initiatives toward Sustainable Growth FOR LIMITED DISTRIBUTION 関係者外秘 V-1. Develop time and space, including control Continuing to promote “human-centered” development FY2018 FY2019 What’s next ? Coming soon! Evolution of Aces + MOOX? 41
Slide 52: Becoming an interior space creator
Initiatives toward Sustainable Growth FOR LIMITED DISTRIBUTION 関係者外秘 V-1. Develop time and space, including control To realize a space that provides new values, accelerate collaboration with companies having necessary technologies Becoming an interior space creator Area requiring enhancement of Area
Slide 53: Finally
Finally Enhance earning power Promote creation of new through all-out cost reduction value efforts, to strengthen for future growth business structure Reorganize production structure in Japan Lead creation of comfort value in mobile Rebuild optimal global production/supply spaces structures
Slide 54: Disclaimer
Disclaimer The forecasts relating to future business performance provided in this report are estimates made by the Company based on the information available at the time of reporting, and therefore involve risks and uncertainties. Accordingly, actual results may differ from the forecasts due to vari
Slide 55: Key Indicators (FY2020 is based on IFRS)
Key Indicators (FY2020 is based on IFRS)
Slide 56: Key Indicators: Seat Assembly Production & Net Sales
1) Key Indicators Seat Assembly Production & Net Sales(FY2020 is based on IFRS) (1) Seat Assembly Production (10,000 units) 1,000 740 751 775 800 726 690 707 712 709 586 596 600 400 200 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2026 (Forecast) (Forecast) (Forec
Slide 57: Key Indicators: Operating Income & Profit
2) Key Indicators Operating Income & Profit (FY2020 and subsequent years are based on IFRS) (1) Operating profit (100 million yen) 1,000 Recovery in sales in Efforts to strengthen 10.0% Restructuring of the Americas competitive Europe businesses advantage 800 719 711 7.5% 594 580 600 530 5.0% 5.3% 5
Slide 58: Key Indicators: Balance Sheet
3) Key Indicators Balance Sheet (100 million yen) (1) Total assets 12,000 7,196 7,258 7,445 7,522 6,590 6,919 5,976 5,839 6,000 5,044 0 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2026 (Forecast) (Forecast) (Forecast) (2) Liabilities and Net assets (100 million yen
Slide 59: Key Indicators: Capital expenditures, depreciation, R&D expenses
4) Key Indicators Capital expenditures, depreciation costs, R&D expenses (100 million yen) (1) Capital expenditures, depreciation costs 800 その他 Other 646 610 成長投資 Growth investments 600 新製品 New products 520 148 511 501 212 368 401 410 120 96 382 360 412 375 194 363 163 362 400 323 315 368 355 347 32
Slide 60: Key Indicators: Free cash flow and financial cash flow
5) Key Indicators Free cash flow and financial cash flow (100 million yen) (1) Free cash flow 800 953 58 789 861 Operating CF 502 655 464 400 469 495 444 344 641 606 309 202 139 24 0 (23) Free CF FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 (Forecast) IInvesting CF (2
Slide 61: Key Indicators: Cash and Cash Equivalents, Cash Flow Statement
6) Key Indicators Cash and Cash Equivalents, Cash Flow Statement Cash and Cash Equivalents (100 million yen) 2,000 1,783 1,609 1,581 1,434 1,448 1,500 1,293 1,266 1,139 1,139 1,000 500 0 10年度 FY2011 11年度 FY2012 12年度 FY2013 13年度 FY2014 14年度 FY2015 15年度 FY2016 16年度 FY2017 17年度 FY2018 18年度 FY2019 (2) T
Slide 62: Key Indicators (FY2020 is based on IFRS)
7) Key Indicators (FY2020 is based on IFRS) FY2020 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 (Forecast) Earnings Per 244.28 230.27 115.79 156.16 61.82 yen 17.45 yen 85.23 yen 68.05 yen 28.08 yen 21.02 yen Share yen yen yen yen Dividend Per 16 yen 16 yen 18 yen 18 yen 18 yen 30 y
Slide 63: Disclaimer
Disclaimer The forecasts relating to future business performance provided in this report are estimates made by the Company based on the information available at the time of reporting, and therefore involve risks and uncertainties. Accordingly, actual results may differ from the forecasts due to vari