Toyota Boshoku Corp. · TSE:3116
Toyota Boshoku — Investor Presentation (November 2020)
32 slides from Toyota Boshoku's investor presentation, Nov 11, 2020
Slide 1: Briefing on 2025 Mid-term Business Plan
TSE 1st Section Securities Code 3116 FY2021 (Year ending March 2021) Briefing on 2025 Mid-term Business Plan Date: November 11, 2020
Slide 2: Management structure we aim to achieve
1. Overview and Review of 2020 Mid-term Business Plan 1) The management structure we aims to achieve We meet the expectations of our stakeholders through contributing to social values and properly distributing economic value as a good corporate citizen. Enhance economic value Enhance corporate value
Slide 3: Framework of 2020 Mid-term Business Plan
1. Overview and Review of 2020 Mid-term Business Plan 2) Framework of 2020 Mid-term Business Plan Social value 1 Contribute to enhance social value through activities that meet the expectations of every stakeholder Scenarios to enhance corporate value Business strategies Establish a corporate struct
Slide 4: Review and issues of 2020 Mid-term Business Implementation Plan
1. Overview and Review of 2020 Mid-term Business Plan 3) Review and issues of 2020 Mid-term Business Implementation Plan 2020 Mid-term Business Implementation Plan Major achievements Issues 1 Corporate growth while fulfilling our responsibility in harmony with society ・Examined a shift to CSV Formul
Slide 5: Review and issues of 2020 Mid-term Business Implementation Plan (continued)
1. Overview and Review of 2020 Mid-term Business Plan 3) Review and issues of 2020 Mid-term Business Implementation Plan 2020 Mid-term Business Implementation Plan Major achievements Issues 3 Strengthen competitive advantage Develop new technologies and • MOOX, tide-generating force Plan commerciali
Slide 6: Financial forecasts for FY2021
1. Overview and Review of 2020 Mid-term Business Plan 4) Financial forecasts for FY2021 Though the 2020 management targets were not achieved, preparations for the next step have been almost completed. (100 million yen) Target Forecast Forecast (Without impact of COVID-19) Revenue 14,000 12,400 13,90
Slide 7: Concepts in formulating 2025 Mid-term Business Plan
2. Concepts in formulating 2025 Mid-term Business Plan Shift to CSV management. Make company-wide efforts to fulfill the aspects of materiality identified from the current issues and future social needs. [Management thought] 1) Toyota Boshoku’s Vision Looking into the future, we will create tomorrow
Slide 8: Toyota Boshoku's Materiality
2. Concepts in formulating 2025 Mid-term Business Plan Toyota Boshoku’s Materiality As an Interior Space Creator we will contribute to people's quality of life, creating comfort, safety, Issues Relating to Safety, Environment, and Comfort and reassurance through innovation Comfortable space Promotin
Slide 9: Framework of 2025 Mid-term Business Plan
3. Framework of 2025 Mid-term Business Plan Scenario to enhance corporate value Achieve both sales expansion and improved profitability with world top-level proposal capabilities (1) Strengthen corporate structure (with the break-even point lowered to below 70%) by reinforcing existing core business
Slide 10: Business strategies
3. Framework of 2025 Mid-term Business Plan Business strategies (1) Reinforce core businesses and expand sales to new customers Existing (i) Accelerate restructuring in Japan, the Americas, and China businesses (ii) Expand business fields for interior products (iii)Ensure obtaining orders in Chinese
Slide 11: Four priority actions in 2025 Mid-term Business Plan
4. Actions in 2025 Mid-term Business Plan To fulfill matters of materiality and enhance corporate value, we set four priority actions below. [Issues from the 2020 Mid-term Business Implementation Plan] [Materiality] [2025 priority actions] Corporate We will continue to be a company of integrity trus
Slide 12: Sales targets by region and product
4. Actions in 2025 Mid-term Business Plan 100 million yen Sales targets Priority action (1) Strategic OEM • Expand sales in regions where market is significantly growing (China, Asia) (for our main OEM and strategic OEMs) Main OEM Priority action (2) Priority action (3) • For regions with earning po
Slide 13: Priority action (1): Pursue safety, environment and comfort
4. Actions in 2025 Mid-term Business Plan Priority action (1) Pursue safety, environment and comfort, and increase customers, thereby evolving into a trusted supplier capable of offering optimal proposals to customers. Action target Revenue 1,600 billion yen + α Implementation 1) Promote advanceme
Slide 14: Advancement of front seat frames
4. Actions in 2025 Mid-term Business Plan Implementation items 1) Promote advancement of front seat frames that are constantly surpassing competitors and pursue innovation for next-generation seat devices 1st round 2nd round Next new frames Materiality No.3 2015 onward 2022 Around 2027 onward onward
Slide 15: Advancement of rear seat frames
4. Actions in 2025 Mid-term Business Plan 1) Promote advancement of rear seat frames that are surpassing Implementation items competitors TNGA Next new frames up to 2015 around 2027 2015 onward onward Materiality No.3 Sedan Panel frame Multi-materials Hatchback Resin frame Newly Pipe frame Aluminum
Slide 16: Establish a business model as interior space creator
4. Actions in 2025 Mid-term Business Plan 5) As an interior space creator, establish a business model Implementation items leading to further growth of Toyota Boshoku Lv5 <Step 3> Interior space creator (in response to MaaS) Transformable space free from driving Offering solutions for realizing auto
Slide 17: NV and heat management technologies
4. Actions in 2025 Mid-term Business Plan 5) As an interior space creator, establish a business model leading to further Implementation items growth of Toyota Boshoku NV and heat management technologies which become increasingly important with the popularity of EVs Materiality No.1 JV formed by Auto
Slide 18: Priority action (2): Productivity and business strategies
4. Actions in 2025 Mid-term Business Plan Priority action (2) Thoroughly improve productivity and implement business strategies, while enhancing cooperation among Product business segments and Regions Action target Operating profit 100 million yen + α Implementation 1) Promote completely local proc
Slide 19: Completely local procurement in Asia and China
4. Actions in 2025 Mid-term Business Plan Implementation １) Promote completely local procurement in Asia, including China, to improve marginal profit items “Completely local procurement” means to achieve local procurement of raw materials and difficult-to-produce parts. <Asia region> Promoting local
Slide 20: Improve production systems in China
4. Actions in 2025 Mid-term Business Plan ２) Improve production systems in China and the Americas ready to 2) Implementation items respond to production increase at main customer <China> Improve production systems in the Guangzhou and Tianjin regions Response to production increase at Toyota Increas
Slide 21: Improve production systems in the Americas
4. Actions in 2025 Mid-term Business Plan 2) Improve production systems in China and the Americas ready to respond to 2) Implementation items production increase at our main customer <The Americas> Improve production systems in the Indiana region Change production location <Concept> Optimize personn
Slide 22: Priority action (3): MONOZUKURI innovation and environment
4. Actions in 2025 Mid-term Business Plan Improve competitiveness through MONOZUKURI innovation and promote Priority action (3) environmental initiatives • MONOZUKURI foundation that makes us a reliable company of choice has Action target been established globally. • We have MONOZUKURI competitivene
Slide 23: Procurement base for global competitive advantage
4. Actions in 2025 Mid-term Business Plan Implementation items 3) Establish a procurement base to strengthen Materiality No.3 global competitive advantage Reforming supply chains :Restructuring supply chains by evaluation and classifying (higher-level SQCD) Robust procurement base Globally unified a
Slide 24: Strengthen MONOZUKURI competitiveness using DX
4. Actions in 2025 Mid-term Business Plan Implementation items 4) Strengthen MONOZUKURI competitiveness by utilizing DX Further boost MONOZUKURI MONOZUKURI information sharing via IoT competitiveness via process innovations Achieve same quality/productivity globally Address drop in the sewing labor
Slide 25: Minimize environmental stress through MONOZUKURI innovation
4. Actions in 2025 Mid-term Business Plan Implementation items 5) Minimize environmental stress by promoting Application of innovative technology MONOZUKURI innovation Boost productivity with innovative Materiality No.3 technology Introduce transport robots that use Toyota 1 Toyota Boshoku Group’s c
Slide 26: Priority action (4): Global management foundation and human resources
4. Actions in 2025 Mid-term Business Plan Priority action (4) Establish an optimal management foundation on a global scale to support sustainable growth, and human resources development Integrate and utilize management information to monitor progress in Activity goal achieving the Mid-term Business
Slide 27: Integrate management information and expedite decision making
4. Actions in 2025 Mid-term Business Plan Implementation item① Materiality No.5 1) Integrate each information on sales, development, investment, production, personnel, and profits plan, and follow up with the implementation 2) Expedite decision making (early identification of issues and implementati
Slide 28: Develop global human resources
4. Actions in 2025 Mid-term Business Plan Implementation items ② 3) Develop global human resources capable of contributing to enhancing corporate value Materiality No.4 Implement personnel training and proper organizational development Proper Global personnel Marginal profit guidelines to personnel
Slide 29: 2025 Mid-term Business Plan Targets
5. 2025 Mid-term Business Plan Targets Economic value • Revenue 1,600 billion yen + α by sales expansion of existing core products and obtaining new OEMs • Aim at operating profit of 100 billion yen + α while securing budgets for future growth by further improving efficiency in fixed costs and promo
Slide 30: Capital management
5. 2025 Mid-term Business Plan Targets Capital management Materiality No.5 Strategic use and optimal allocation of the generated cash flow ＜Resources＞ ＜Use＞ *1 Hike per-share dividend and Operating cash Shareholder Shareholder returns flow returns *1 from various perspectives *2 Investments for alli
Slide 31: Social value targets and major KPIs
5. 2025 Mid-term Business Plan Targets Social value targets ：Set new indicators to measure social value for CSV management Targets related to people/organizations organized from ESG perspectives (Perspectives) E: Target figures for 2025 environmental action plan S: Items related to human resources d
Slide 32: Open the door, it's a big world outside
"Open the door, it's a big world outside." Let’s Open the door Tackle the challenges together to a new century <Notes> Forecasts for the future described in this material are available at this time. It is an expected value judged by the Company based on this, and includes uncertainty and risk. There
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