Slide 1: Financial Results for the Fiscal Year Ended March, 2020
Financial Results for the Fiscal Year Ended March, 2020 May 12, 2020 F-TECH Inc. TSE 1st Section ：7212 https://www.ftech.co.jp Copyright(c) 2020 F-TECH INC. All Right Reserved 1
Slide 2: Regarding the impact of COVID-19
Regarding the impact of COVID-19 At this point in time, it is difficult to calculate the impact of COVID-19 rationally, and to foresee our financial situation in the future. Therefore, the detail of 14th Midterm business plan, which starts with this business term, and the forecast of March FY 2021 h
Slide 3: Table of Contents
Table of Contents 1. Financial Summary 2. Management Strategy 3. Topics Copyright(c) 2020 F-TECH INC. All Right Reserved 3
Slide 4: Financial Summary
Table of Contents 1. Financial Summary 2. Management Strategy 3. Topics Copyright(c) 2020 F-TECH INC. All Right Reserved 4
Slide 5: Consolidated Financial Results Overview (Year on Year)
Consolidated Financial Results Overview (Year on Year) （Unit ：Million Yen） FY ended Mar. 2019 Actual FY ended Mar. 2020 Actual Difference Sales 235,361 100.0% 218,712 100.0% ▲16,649 ▲7.1% Operating profit 6,580 2.8% 4,088 1.9% ▲2,492 ▲37.9% Ordinary profit 5,968 2.5% 2,764 1.3% ▲3,204 ▲53.7% Profit
Slide 6: Consolidated Sales (Year on Year)
Consolidated Sales （Year on Year） （Unit ：Million Yen） （Unit：%） Consolidated Sales by Segment Sales Share（%） （Japan） 235,361 218,712 Japan, Japan, ▲2.1% Japan, 33,001 Japan, 14.0% 11.9% decrease 200,000 26,126 N．America, （N. America） N.America, N．America, N.America, 3.0% 136,450 58.0% 61.0% decrease
Slide 7: 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 2019 2020 Difference 2019 2020 Difference Difference (%) Actual Actual Actual Actual Japan 921 ▲683 ▲1,604 ▲174.1% 14.0% ▲16.7% ▲30.7% N. America ▲54 367 422 ー ▲0.8% 9.0% 9.8% Asia 5,275
Slide 8: Operating Performance by Segment (Japan)
Operating Performance by Segment (Japan) （Unit：Million Yen） Sales Operating Profit Change ▲6,875 Change ▲1,604 Change % ▲20.8% ▲174.1% 33,001 26,126 921 ▲683 Change % FX Impact ― FX Impact ― Real Change ▲6,875 Real Change ▲1,604 Change% ▲20.8% Change % ▲174.1% FY 2019 FY 2020 FY 2019 FY 2020 Reason
Slide 9: Operating Performance by Segment (N. America)
Operating Performance by Segment (N. America) （Unit：Million Yen） Sales Operating Profit 136,450 133,454 Change ▲2,995 Change 422 Change % ▲2.2% Change% ▲773.8% FX Impact ▲3,322 ▲54 367 FX Impact ▲7 Real Change 325 Real Change 429 FY 2019 FY 2020 Change % 0.2% Change % ▲786.5% FY 2019 FY 2020 Reason
Slide 10: Operating Performance by Segment (Asia)
Operating Performance by Segment (Asia) （Unit：Million Yen） Sales Operating Profit Change ▲6,776 Change ▲909 5,275 4,365 65,909 59,132 Change % ▲10.3% Change % ▲17.2% FX Impact ▲2,054 FX Impact ▲217 Real Change ▲4,722 Real Change ▲691 Change % ▲7.2% Change % ▲13.1% FY 2019 FY 2020 FY 2019 FY 2020 Rea
Slide 11: Changes in Operating Profit
Changes in Operating Profit Japan N. America Asia Decrease Increase （Unit：Million Yen） 6,580 Sales other Increase 77 352 other 139 Sales Decreas other e ▲74 Sales 4,088 ▲1,531 Decrease Consoli. adjustment FX ▲831 ▲401 Impacts ▲224 FY 2019 FY 2020 Actual Actual Copyright(c) 2020 F-TECH INC. All Right
Slide 12: Sales changes by Customer
Sales changes by Customer 196,343 197,941 226,029 235,361 221,000 218,712 (Unit: Million) 100% Others 3.8% 3.5% 3.5% 3.4% 2.1% 2.9% FCA 90% 3.2% 2.9% 2.8% 2.7% 1.6% 4.5% 4.7% 2.7% Mitsubishi 10.9% 4.5% 4.7% 80% 12.0% 11.4% 12.9% Nissan 13.1% 12.7% Toyota 70% Tesla 77.6% 76.4% 75.2% 60% 72.0% 69.7% 7
Slide 13: Financial Position
Financial Position Total Asset Capital Investment 160,000 Depreciation Interest-Bearing Debt Interest-Bearing Debt Ratio 50.0% 140,000 40.9% （Unit: Million Yen） 38.3% 40.0% 120,000 100,000 59,129 51,342 30.0% Million Yen Million 80,000 Yen 60,000 20.0% 40,000 10.0% 20,000 0 0.0% FY 2020 FY 2020 FY 2
Slide 14: Dividend
Dividend FY Mar 2020 Forecast End End Payout End of Q2 End of Q4 Total of Q1 of Q3 Ratio FY Mar 2020 ー 10 Yen ー 10 Yen 20 Yen 113.7% Dividend Forecast (FYI) ー 10 Yen ー 10 Yen 20 Yen 13.1% FY Mar 2019 Actual Difference ー ー ー ー ー 100.6% (Year on Year) Dividend Policy F.tech’s basic policy regarding th
Slide 15: Management Strategy
Table of Contents 1. Financial Summary 2. Management Strategy 3. Topics Copyright(c) 2020 F-TECH INC. All Right Reserved 15
Slide 16: Previous Midterm Three-Year Plan - Basic policy -
Previous Midterm Three-Year Plan - Basic policy - Corporate Policy Mar 2017 Mar 2018 Mar 2019 Mar 2020 Achieve strong financial positions and high profitability Actuals Consolidated Sales Target Operating 197.9 B Yen Consolidate profit ratio d Sales 212.0 B Yen Interest bearing Operating debt ratio
Slide 17: Previous Midterm Three-Year Plan: Actual ～Management Objectives～
Previous Midterm Three-Year Plan: Actual ～Management Objectives～ Sales Operating Profit Operating Plofit(Plan) Operating Profit(Actual) Sales(Plan) Sales(Actual) Billion Yen Operating Profit Ratio(Plan) Operating Profit Ratio(Actual) Billion Yen 235.3 12.0 10.5 10.0% 220.0 209.0 226.0 212.0 218.7 19
Slide 18: Previous Midterm Three-Year Plan: Actual ～Plan vs. Actual～
Previous Midterm Three-Year Plan: Actual ～Plan vs. Actual～ Midterm Three-Year Plan: the 3rd Year Plan vs. Actual （Unit: Billion Yen） Midterm 3rd Year Plan FY 2020 Actual Evaluation Sales 212.0 218.7 〇 Operating Profit 10.5 4.0 × Investment Plan 11.0 12.2 △ Interest-bearing Debt 49.0 51.3 △ Investmen
Slide 19: Previous Midterm Three-Year Plan: Actual ～Sales changes by Customer～
Previous Midterm Three-Year Plan: Actual ～Sales changes by Customer～ FY Mar 2017 FY Mar 2020 （Unit：Million Yen） FY Mar 2017 ⇒ FY Mar 2020 100% 197,941 218,712 Others Sales （Million Yen） 3.5% 2.9% 90% 2.9% FCA 4.7% 4.7% Mitsubishi Honda 151,282 153,004 12.0% 80% Nissan 12.7% Other 70% Toyota 46,659 6
Slide 20: Previous Midterm Three-Year Plan: Actual ～Gap to Operating Target～
Previous Midterm Three-Year Plan: Actual ～Gap to Operating Target～ Change factors to Operating profit by segment External Environmental Changes Internal Environmental Changes FY 2020 ・Automobile market change, ・Productivity decrease in Sluggish growth North American plants FY 2020 Operating profit ・
Slide 21: Previous Midterm Three-Year Plan: Actual ～Financial position～
Previous Midterm Three-Year Plan: Actual ～Financial position～ Total Asset Capital Investment Depreciation Interst-Bearing Debt Interst-Bearing Debt ratio Capital Investment 160,000 50.0% （Unit：Million） ・Investment for the order of new models 140,000 40.0% ・Expansion of capacity for the increased 120
Slide 22: Previous Midterm Three-Year Plan: Actual ～Status of subsidiaries in N. America～
Previous Midterm Three-Year Plan: Actual ～Status of subsidiaries in N. America～ Issues Challenges Countermeasures Completed activities Consolidate warehouses, Line layout change Cost increased Logistics improvement ⇒to improve internal flow of the plant Cost Labor, Outsourcing Bring back to in hou
Slide 23: Previous Midterm Three-Year Plan: Actual ～Status of subsidiaries in Japan and Asia～
Previous Midterm Three-Year Plan: Actual ～Status of subsidiaries in Japan and Asia～ Issues Impact to P&L Challenges and activities Respond to localization ⇒Expand sales with existing Sales volume Sales customers Develop new customers not growing leveled off Diversified income sources ⇒Create n
Slide 24: 14th Midterm Business Plan ～Basic policy～
14th Midterm Business Plan ～Basic policy～ 13th Midterm business plan 14th Midterm Business Plan Achieve strong financial positions Corporate policy：Let’s exceed out limits! We will, without compromise, produce the “Best One” for all our customers Reinforce the free cash flow operation 66th term (FY2
Slide 25: Current status due to COVID-19 impact: Japan
Current status due to COVID-19 impact As of May 11th Japan Main customer status Production status Employment status Plant Employment Production Restart plan Shipping/Operation (Direct/SGA) ・Shipping being made based on customers’ situation. ・SGA associates are either Kuki ・Restart planned after × ・O
Slide 26: Current status due to COVID-19 impact: North America
Current status due to COVID-19 impact North America As of May 11th Main customer status Production status Employment status Plant Production Restart plan Shipping/Operation Employment (Direct/SGA) ・Production has been ・Operation has been suspended Canada ・Basically furlough suspended since end of Ma
Slide 27: Current status due to COVID-19 impact: China and Asia
Current status due to COVID-19 impact China and Asia As of May 11th Main customer status Production status Employment status Plant Production Restart plan Shipping/Operation Employment (Direct/SGA) ・All SGA associates returning to ・Already resumed. work including expats at China ・Production has been
Slide 28: Topics
Table of Contents 1. Financial Summary 2. Management Strategy 3. Topics Copyright(c) 2020 F-TECH INC. All Right Reserved 28
Slide 29: Business Status - New model startups planned in 2020 -
Business Status - New model startups planned in 2020 - ※Abstract HONDA GM TOYOTA NISSAN MITSUBISHI SUZUKI HONDA 1Q 2Q 3Q 4Q Japan FREED FIT series HONDA e(EV) RDX, North America INSIGHT XR-V CR-V China CIVIC XR-V ELYSION Carry over Rebadge AVANCIER CRIDER Asia Accord CITY General Motors Cadillacc CT
Slide 30: Underbody Parts for TOYOTA
Underbody Parts for TOYOTA North America Japan Asia TOYOTA TOYOTA TOYOTA Chassis Production Chassis Production Chassis Production awarded awarded awarded Underbody parts have been awarded in North America, Japan, and Asia! We will reinforce the relationship with Toyota, and strive to expand business
Slide 31: Research & Development Capability
Research & Development Capability < F-tech's unique development technology > Achieving optimum design by integrating existing know-hows and simulation technologies Improving Further Improving design accuracy weight reduction development speed Achieving the design including Space beam analysis ・Minim
Slide 32: Collaboration
Collaboration Collaboration with material Body frame parts ◆Material manufacturers ・Steel : Mainly High Tensile -Material evolution- Strength Steel (780～980Mpa class) Expanding the grades (Ultra high tensile steel) ◆Welding 590/780 ⇒ 980/1180 ・Mainly Resistance welding (Spot/Projection Weld) Product
Slide 33: Initiative for sustainable growth ～CSR, ESG～
Initiative for sustainable growth ～CSR, ESG～ 【Initiative for quality】 【Initiative for improvements of manufacturing technology】 F-Tech Zhongshan F&P Mfg Inc. Quality, Delivery, Quality Environment Awards Excellence Award “Super”monozukuri parts grand prize F&P Mfg(Dyna-Mig) Mobility related parts pr
Slide 34: Initiative for sustainable growth ～CSR, ESG～
Initiative for sustainable growth ～CSR, ESG～ 【Initiative for environments】 Sai-no-Kuni Saitama Environment grand th Oct 11 , 2018： Invited to speak at prix 2020 awarded Business person "Energy Efficiency Nation Partnership (EENP) category “Incentive Award” awards 2018" hosted by Ministry of “Sai-no-
Slide 35: Initiative for sustainable growth ～CSR, ESG～
Initiative for sustainable growth ～CSR, ESG～ 【Participation of technology exhibitions】 Automotive Engineering Automotive Engineering Interaction with companies in Expo. In Nagoya Expo. In Yokoyama other fields May 22nd to 24th July 17th to 19th Venue : PACIFICO Yokohama Venue : Portmesse Nagoya
Slide 36: Initiative for sustainable growth ～CSR, ESG～
Initiative for sustainable growth ～CSR, ESG～ 【Relationship with local society】 Mexico Kameyama Kuki ・Received a courtesy visit from Mie ・Distribute school supplies to children ・Celebrated its 40th anniversary prefectural governor. ・Plant trees as part of environmental ・Recognized as a “Company who p
Slide 37: Initiative for sustainable growth ～CSR, ESG～
Initiative for sustainable growth ～CSR, ESG～ Initiative for human rights Social contribution 【Opportunities for senior citizens to be active, 【Manufacturing technology providing support for nursing care and child rearing】 education】 ・Plant tour for elementary school students ・Work experience for hig
Slide 38: The COVID-19 impact
The COVID-19 impact～ Due to the outbreak of the COVID-19 in 2020 January, travel restrictions have been taken place around the world to prevent the spread. In the automobile industry, production has been suspended and there has been a mood for voluntary restraint, which possibly triggers to lower
Slide 39: F-TECH INC. Management Planning Division
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 stated future forecasts due to
Slide 40: Copyright(c) 2020 F-TECH INC. All Right Reserved
Copyright(c) 2020 F-TECH INC. All Right Reserved
Slide 41: Appendix ～Consolidated Balance Sheet (FY Mar. 2020 results)～
Appendix ～Consolidated Balance Sheet (FY Mar. 2020 results)～ Mar. 2019 Mar. 2020 Changes Mar. 2019 Mar. 2020 Changes Actual Actual Actual Actual Cash and Deposits 7,192 8,879 1,687 Notes and AP 22,838 17,427 ▲ 5,411 Notes and AR 33,667 27,955 ▲ 5,712 Short-term loans 12,650 20,395 7,745 Current port
Slide 42: Appendix ～Consolidated cash flow statement (FY Mar. 2020 results)～
Appendix ～Consolidated cash flow statement (FY Mar. 2020 results)～ Mar. 2019 Mar. 2020 Changes 30,000 Actual Actual Operating CF Cash flows from operating 25,000 23,141 23,141 10,539 ▲12,602 Investing CF activities 20,000 Free CF Cash flows from investment 16,321 ▲6,820 ▲11,961 ▲5,141 activities 15,
Slide 43: Appendix ～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 218.7 Billion JPY (March 2020) Number of Group total 8,754 (F-tech only: 805) ※F-tech only does not i
Slide 44: Appendix ～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） 1987 2014 1999 R&D NA Europe Daihatsu business starts 2013 Branch established 1997 F&P Mfg (Canada) PT.F.TECH INDNESIA Dyna-Mig operation begins establis
Slide 45: Appendix ～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 46: Appendix ～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 47: Appendix ～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 48: Appendix ～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 49: Appendix ～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 (