F-tech Inc. · TSE:7212
F-tech — FY2021 Earnings Presentation
48 slides from F-tech's earnings presentation, May 14, 2021
Slide 1: Fiscal Year Ending March 2021 Financial Results
Fiscal Year Ending March, 2021 Financial Results May 14th, 2021 F-TECH Inc. TSE 1ST section : 7212 https://www.ftech.co.jp Copyright(c) 2021 F-TECH INC. All Right Reserved 1
Slide 2: Table of Contents
Table of Contents 1 Financial Summary 2 Management Strategy 3 Topics Copyright(c) 2021 F-TECH INC. All Right Reserved 2
Slide 3: Table of Contents
Table of Contents 1 Financial Summary 2 Management Strategy 3 Topics Copyright(c) 2021 F-TECH INC. All Right Reserved 3
Slide 4: Consolidated Financial Results Overview (Year on Year)
Consolidated Financial Results Overview (Year on Year) (Unit：Million Yen) FY Mar. 2020 FY Mar. 2021 Difference Actual Actual Sales 218,712 100.0% 183,647 100.0% ▲35,065 ▲16.0% Operating Profit 4,088 1.9% 3,072 1.7% ▲1,016 ▲24.9% Ordinary Profit 2,764 1.3% 2,383 1.3% ▲381 ▲13.8% Profit Attributable t
Slide 5: Consolidated Sales (Year on Year)
Consolidated Sales (Year on Year) (Unit：Million Yen) (Unit：%) Consolidated Sales by Segment Sales Share (%) 218,712 183,647 Japan, Japan, (Japan) Japan, 11.9% 10.7% ▲1.2% 200,000 26,126 Japan, 19,692 N. America, N. America, (N. America) N. America, N. America, 61.0% 60.1% ▲0.9% 100,000 133,454 110,4
Slide 6: Operating Profit by Segment (Year on Year)
Operating Profit by Segment (Year on Year) (Unit：Million Yen) (％) Operating Profit Share FY Mar. FY Mar. FY Mar. FY Mar. 2020 2021 Difference 2020 2021 Difference Difference (%) Actual Actual Actual Actual Japan ▲683 299 982 - ▲16.7% 9.8% 26.5% N. America 367 ▲686 ▲1,054 ▲286.7% 9.0% ▲22.4% ▲31.4% A
Slide 7: Operating Performance by Segment (Japan)
Operating Performance by Segment (Japan) （Unit：Million Yen） Sales Operating Profit Change ▲6,433 Change 982 Change (%) ▲24.6% Change (%) ― 26,126 19,692 ▲683 299 FX Impact ― FX Impact ― Net Change ▲6,433 Net Change 982 FY Mar. 2020 FY Mar. 2021 FY Mar. 2020 FY Mar. 2021 Change (%) ▲24.6% Change (%)
Slide 8: Operating Performance by Segment (N. America)
Operating Performance by Segment (N. America) （Unit：Million Yen） Sales Operating Profit 133,454 110,405 Change ▲23,049 Change ▲1,054 Change (%) ▲17.3% 367 ▲686 Change (%) ▲286.7% FX Impact ▲2,525 FX Impact 31 Real Change ▲20,524 FY Mar. 2020 FY Mar. 2021 Real Change ▲1,086 FY Mar. 2020 FY Mar. 2021
Slide 9: Operating Performance by Segment (Asia)
Operating Performance by Segment (Asia) Sales Operating Profit (Unit：Million Yen) Change ▲5,582 4,365 3,993 Change ▲372 59,132 53,549 Change (%) ▲9.4% Change (%) ▲8.5% FX Impact ▲1,392 FX Impact ▲91 Real Change ▲4,191 Real Change ▲282 FY Mar. 2020 FY Mar. 2021 FY Mar. 2020 FY Mar. 2021 Change (%) ▲7
Slide 10: Changes in Operating Profit by Segments (FY Mar. 2021 Actual)
Changes in Operating Profit by Segments (FY Mar. 2021 Actual) 4,088 ▲6,319 2,830 ▲60 ▲572 3,072 2,577 527 (Unit：Million Yen) FY Product Machine Expense Transfer to FX Consolidated FY Difference Mar. Sales and Tools reduction Extraordinary Impact adjustment Mar. 2020 Impact Sales Rationalization Due
Slide 11: Financial Summary: Changes from the last forecast
Table of Contents １．Financial Summary -Changes from the last forecast- Copyright(c) 2021 F-TECH INC. All Right Reserved 11
Slide 12: Consolidated Financial Results Overview (Difference to the last forecast)
Consolidated Financial Results Overview (Difference to the last forecast) （Unit: Million Yen） FY Mar. 2021 FY Mar. 2021 Difference (Forecast) (Actual) Due to incomplete elimination of intercompany transaction, Sales 193,000 100.0% 183,647 100.0% ▲9,353 ▲4.8% and timing difference when to record inte
Slide 13: Sales Changes by Customer
Sales Changes by Customer 100.0% 3.8% 3.5% 3.5% 3.4% 1.5% 90.0% 3.2% 2.9% 2.9% 3.4% 2.8% 2.7% 3.0% 1.6% 2.7% 5.6% 4.7% 80.0% 10.9% 12.0% 11.4% 12.9% 12.7% 10.9% 70.0% 77.6% 76.4% 75.2% 72.0% 70.0% 71.9% 60.0% 50.0% Others S Mitsubishi Nissan TOYOTA T GM HONDA 40.0% FY Mar. 2016 FY Mar. 2017 FY Mar.
Slide 14: Financial Position
Financial Position Total Asset Capital Investment Depreciation Interest-Bearing Debt Interest-Bearing Debt Ratio 160,000 50.0% （Unit：Million Yen） 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 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Total Asset 137,980 144
Slide 15: Status of Dividend
Status of Dividend （Unit： Yen） End of End of End of the End of Q2 Total Payout Ratio Q1 Q3 Term FY Mar. 2020 Actual - 10 yen - 10 yen 20 yen 113.7% (Last term) FY Mar. 2021 Plan - 0 yen - 8 yen 8 yen - (Current term) Difference - ▲ 10 yen - ▲ 2 yen ▲ 12 yen - FY Mar. 2022 Forecast - TBD - TBD TBD -
Slide 16: Table of Contents
Table of Contents 1 Financial Summary 2 Management Strategy 3 Topics Copyright(c) 2021 F-TECH INC. All Right Reserved 16
Slide 17: 14th Midterm Business Plan: Basic Policy
14th Midterm Business Plan ～Basic Policy～ 14th Midterm Business Plan Company Policy: Let’s exceed out limits! We will, without compromise, produce the “Best One” for all our customers. 66th term (FY2021) 67th term (FY2022) 68th term (FY2023) Maximize group Back to Basics ◇Achieve profit ◇Evolution o
Slide 18: 14th Midterm Business Plan: Our Vision
14th Midterm Business Plan ～Ｏｕｒ Ｖｉｓｉｏｎ～ Aim to become the world’s leading supplier specializing in the area of underbody functions Area of underbody functions …..“3 core areas of Subframe, Suspension, and Pedal” World’s leading…..”Pursue the essential nature of manufacturing” We pursue the following
Slide 19: 14th Midterm Business Plan: Strategy target
14th Midterm Business Plan ～Strategy target～ ＜Back to Basics ～Master what you suppose to do～＞ ◇ Achieve profit at all facilities ◇ Evolution of the simulation ◇ Revival of domestic facilities ＜Challenge for New ～Challenge to create new value～＞ ◇ Acquire new customers ◇ Challenge in new regions ◇ Cre
Slide 20: Achieving profits at all facilities
Achieving profits at all facilities ～Back to Basics～ FY 2021 Operating profit by segment Activities in FY2022 Operating profit Current status Situation/Activities ・Turned into black ・Sales continue to decline in Japan →Machine and tool sales to overseas →Machine and tool sales to overseas Japan 299
Slide 21: Evolution of the Simulation
Evolution of the Simulation ～Back to Basics～ Achieve the Non Prototype Development (Design, Analysis only) ⇒ Save Time and Cost Improve the accuracy of product analysis performance evaluation Making a prototype → Improve the accuracy of results in the test implementation process Achieve the optimal
Slide 22: Revival of domestic facilities
Revival of domestic facilities ～Back to Basics～ Establish a domestic structure capable of withstanding decrease in production 社国内生産台数 K 主要3社国内生産台数 3 major 主要3社国内生産台数 customers’ production volume in 7,000 Japan <Developing new customers> 日産 ホンダ トヨタ ■TOYOTA トヨタ ■ 日産 ■HONDA NISSAN 日産 ホンダ ホンダ Ensure sal
Slide 23: Acquiring new core customers
Acquiring new core customers ～Challenge for New～ TOYOTA HONDA ・ GM Alliance Agreed on strategic alliance in North America Chassis parts Alliance of Autonomous Development/Producti driving & EV on awarded Japan We have business with both companies, it will be an North opportunity to expand business ●
Slide 24: Challenging in new regions (India)
Challenging in new regions ～Challenge for New～ Company VEE GEE Auto Components Private Limited name Challenge for the potential Investment 342,940,000 INR(Indian Rupee) (Approximately 488 million yen*) growth in India Investment VEE GEE INDUSTRIAL ENTERPRISES PVT.LTD. 74% ratio Ftech Inc 26% Main Ac
Slide 25: Challenging in new regions (Mexico)
Challenging in new regions ～Challenge for New～ Automobile production/Export/Sales in Mexico F&P MFG DE MEXICO, S.A. DE C.V. 1,000 units 4,500 Production Exports Sales 3,933 3,919 4,000 3,811 3,399 3,466 3,451 3,388 3,500 3,220 3,254 3,040 3,000 2,885 2,933 2,759 2,768 2,682 2,558 2,643 2,500 2,261 2
Slide 26: Creating new business opportunities
Creating new business opportunities ～Challenge for New～ In the past year, we explored every potential business possibility without constraints Presentation only We narrow down the promising project, taking advantage of the experience and information network we acquired through these activities Copyr
Slide 27: Objectives: The 14th Mid-term Three-Year Plan
Objectives The 14th Mid-term Three-Year Plan (Unit: Billion Yen) FY Mar.2021 FY Mar.2022 FY Mar.2023 Actual Forecast Plan Sales 183.6 Not disclosed due 215.0 to the impact of Operating Profit 3.07 COVID-19 and 7.5 semi-conductor Operating Profit ratio 1.7％ shortage 3.5％ The targets for FY 2021 and F
Slide 28: Table of Contents
Table of Contents 1 Financial Summary 2 Management Strategy 3 Topics Copyright(c) 2021 F-TECH INC. All Right Reserved 28
Slide 29: New Model Activities FY2021
New Model Activities ～FY2021～ HONDA GM NISSAN China ※Excerpted CR-V CIVIC UR-V CRIDER XR-V base North America HEV EV K226 TLX CITY BUICK(HEV) Japan FIT Note/RVR FIT Asia CR-V HEV ACCORD In FY 2021, we achieved stable start ups of a number of new models and started mass production Copyright(c) 2021 F
Slide 30: CSR/ESG Overview
Initiatives for Sustainable Growth ～CSR/ESG Overview～ Topics and Concerns Our Approach Ｇｏａｌ ・Reduction of CO2 emissions 【New global environmental target for 2030】 Environmental ・Environmental conservation of air, water, soil, etc. ・CO2 emission: ▲ 18％ improvement ・Saving resources and reduction of w
Slide 31: Corporate Governance
Initiatives for Sustainable Growth ～Corporate Governance～ Revision of the corporate governance code Principle 78 Principles +5 Principles 83 items Principle 12 items revised Supplementary Ensure the diversity of core human resources ・The exercise of voting right platform (P) 2-4-1 Newly established
Slide 32: Quality and Delivery
Initiatives for Sustainable Growth ～Quality and Delivery～ Initiatives for quality and delivery Received Quality Excellence Award Received Quality Partnership Award F&P MFG DE MEXICO, S.A. DE F-Tech Zhongshan Inc. Quality C.V. ◆Awarded by General Motors de Mexico ◆Awarded by GAC Toyota Motor S. de R.
Slide 33: Manufacturing technologies and Efficiencies
Initiatives for Sustainable Growth ～Manufacturing technologies and Efficiencies～ Initiatives for manufacturing technologies and efficiencies 33 Kuki plant Kameyama plant F-Tech Wuhan Inc. Copyright(c) 2021 F-TECH INC. All Right Reserved 33
Slide 34: Initiatives for social contribution
Initiatives for Sustainable Growth～Initiatives for social contribution～ Social contribution Social contribution 【F-tech made mask donation activity】 【F-tech’s reforestation program】 * Photograph of 2019 event Saitama prefectural office Kuki city office (8,000 masks) (10,000 masks) Total 33,000 masks
Slide 35: Work Style Reform
Initiatives for Sustainable Growth ～Work Style Reform～ Work Style Reform General issues Our initiatives 【Various awards】 Received “Work-life balance Reduce long working Adopt flexible work style promotion award” from Kameyama city 【Evaluation items】 *Excerpted hours How many paid time offs were us
Slide 36: Benefit for shareholders changed
Shareholder benefit Program QUO cards distribution rules have been revised Before After Reference date: Effective for shareholders as of March 31st, 2021 March 31st depending on the number of share 1 year or 3 years or Benefit for shareholders changed Less than 1 more and more and 5 years or Number
Slide 37: 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
Slide 38: Copyright(c) 2021 F-TECH INC. All Right Reserved
Copyright(c) 2021 F-TECH INC. All Right Reserved
Slide 39: Consolidated Balance Sheet (FY Mar 2021 results)
Appendix ～Consolidated Balance Sheet (FY Mar 2021 results)～ (Unit：Million Yen) FY Mar 2020 FY Mar 2021 Changes FY Mar 2020 FY Mar 2021 Changes Actual Actual Actual Actual Cash and Deposits 8,879 3,708 ▲ 5,171 Notes and AP 17,427 19,772 2,345 Notes and AR 27,955 31,578 3,623 Short-term loans 20,395 2
Slide 40: Consolidated cash flow statement (FY Mar 2021 Results)
Appendix ～Consolidated cash flow statement (FY Mar 2021 Results)～ (Unit：Million Yen) FY Mar 2020 FY Mar 2021 Changes 15,000 Operating ＣＦ Investment ＣＦ Actual Actual 10,539 9,956 Free ＣＦ 10,000 Cash flow from operating activities 10,539 9,956 ▲ 583 5,000 Cash flow from investment activities ▲ 11,961
Slide 41: Corporate Overview
Appendix ～Corporate Overview～ Company Name F-TECH INC. The first section of the Tokyo Stock Market Segment Exchange （7212） Capital 6.79 Billion JPY President and CEO Yuichi Fukuda Consolidated Sales 183.6 Billion JPY (March 2021) Number of Group total 9,400 (F-tech only: 962) *F-tech only does not i
Slide 42: F-tech's History
Appendix ～F-tech’s History～ Establishment 4 wheel business Business expansion Global expansion （1947‐1964） （1965‐1987） （1988‐1999） （2000‐ current） 2018 1987 F-TACH AUTOMOBILE 2014 COMPONENTS 1999 PRIVATE LIMITED 1997 Daihatsu business starts R&D NA Europe established 1964 F&P Mfg (Canada) 2013 Branc
Slide 43: Vehicle Components
Appendix ～Vehicle Components～ Suspension Parts Control parts RR FR Mounted Module Assy Components Our products are critical safety auto parts which perform fundamental functions, “Drive”, “Turn” and “Stop”. We aim at the optimal specifications considering the higher operation stability, riding comfo
Slide 44: Our Business Outline (Chassis Parts Development and Production)
Appendix ～Our Business Outline（Chassis Parts Development and Production）～ Product Development Forming Welding Painting Assembly All processes, from product planning and development to mass-production, are carried out through F-tech’s proprietary integrated processing system, which enables F-tech to
Slide 45: F-tech Group Companies in Japan
Appendix ～F-tech Group Companies in Japan～ 【Facilities】 【Group Companies】 【Affiliated Companies】 Head Office・Kuki Plant Fukuda Engineering Co., Ltd. Johnan Manufacturing Inc. Kameyama Plant Kyushu F.tech. Inc. Johnan-Kyushu Manufacturing Inc. Haga Technical Center Reterra Inc. Equipment Center Reter
Slide 46: F-tech Group Overseas Companies
Appendix ～F-tech Group Overseas Companies～ F.tech Inc. Office UK F.tech R&D North America Inc. Dyna-Mig, A division of European Branch YANTAI FUYAN MOULD F&P Mfg.,Inc. CO.,LTD F&P MFG.,INC. F-Tech WUHAN Inc. F&P AMERICA MFG.,INC. F-Tech Zhongshan F&P Gerorgia, A division of F.TECH R&D Inc. F&P Ameri
Slide 47: Affiliates and Alliances
Appendix ～Affiliates and Alliances～ JOHNAN UK Ltd. Johnan Wuhan Inc. Gestanp Tallent Ltd. Shanghai Huizhong JOHNAN AMERICA INC. YPS Ltd. PROGRESSIVE TOOLS & SMC Co.,Ltd. JOHNAN DE MEXICO, COMPONENTS(P) Ltd. CHEN IEU INDUSTRY CO.,LTD. S.A.DE C.V. VEEGEE Industrial JOHNAN F.TECH Enterprises PVT. LTD (
Slide 48: Technological Alliance in India
Appendix Technological Alliance in India Company name VEEGEE INDUSTRIAL ENTERPRISES Pvt. Ltd. Established In 1990 Number of employees Approx. 1,400 Main products Stamping, Sub-assembly, Tube/Pipe Welding, etc Honda, Suzuki, General Motors, Tata Motors, Autoliv, Main customers Schneider,etc Manufactu