Toyota Boshoku Corp. · TSE:3116
Toyota Boshoku — H1 FY2019 Earnings Presentation
50 slides from Toyota Boshoku's earnings presentation, November 2018
Slide 1: FY2019 1st Half Financial Results
FOR LIMITED DISTRIBUTION 関係者外秘 FY2019 1st Half Financial Results Ended Sep 30, 2018
Slide 2: Financial Results: Aim for Sustainable Growth
Financial Results Aim for Sustainable Growth
Slide 3: Agenda: Highlights, 1st Half Results, Forecast
1. Financial Highlights 2. 1st Half FY2019 Financial Results 3. FY2019 Financial Forecast
Slide 4: Financial Highlights
FOR LIMITED DISTRIBUTION 1-1) Financial Highlights 関係者外秘 1st Half FY2019 Financial Results 1. Sales was higher than previous 1st Half due to model mix change and new models although seat volume decreased. 2. Operating Income was lower due to FX effect in South America, investment for the future gr
Slide 5: Agenda: 1st Half FY2019 Financial Results
1. Financial Highlights 2. 1st Half FY2019 Financial Results 3. FY2019 Financial Forecast
Slide 6: 1st Half FY2019 Financial Results
FOR LIMITED DISTRIBUTION 2-1) 1st Half FY2019 Financial Results 関係者外秘 [Overview of Consolidated Financial Results: Apr - Sep 2018] (100 million yen) FY2018 H1 FY2019 H1 YOY Change Net Sales 6,723 100% 6,862 100% 139 2.1% Operating Income 318 4.7% 278 4.1% -40 -12.8% Ordinary Income 331 4.9% 287 4.2%
Slide 7: Unit Production by Region
FOR LIMITED DISTRIBUTION 2-2) 1st Half FY2019 Financial Results Unit Production by Region 関係者外秘 Seat Assembly Production Total By Region (10,000 Units) (10,000 Units) -1 -0.3% YOY Change H1 H1 Pct Change FY18 FY19 365 364 -4 -2.9% +5 +4.5% 151 147 -1 -0.9% 112 117 -1 -2.8% 58 57 44 42 H1 FY2018 H1 F
Slide 8: Net Sales & Operating Income by Region: Japan, Americas
FOR LIMITED DISTRIBUTION 2-3) 1st Half FY2019 Financial Results Net Sales & Operating Income by Region 関係者外秘 Japan The Americas Income Variance ¥-62 (100M) Income Variance ¥+120(100M) • Higher Sales due to Model Mix Change • Lower Sales due to Volume decrease, • Lower Income due to Labor & Overhead
Slide 9: Net Sales & Operating Income by Region: Asia, Europe
FOR LIMITED DISTRIBUTION 2-4) 1st Half FY2019 Financial Results Net Sales & Operating Income by Region 関係者外秘 Asia & Oceania Europe & Africa Income Variance ¥-101(100M) Income Variance ¥+3(100M) • Higher Sales due to Volume increase in China, • Higher Sales due to Foreign exchange impact Forex Impact
Slide 10: Operating Income Variance Analysis
FOR LIMITED DISTRIBUTION 2-5) 1st Half FY2019 Financial Results Operating Income Variance Analysis 関係者外秘 (100 million yen) Operating Income -40(-12.8%) +31 -66 318 -1 -5 +77 -8 -68 +0 278 New decrease Models Model & Product Mix Volume Others Product Prices Changes in FOREX Increased Costs Overhead C
Slide 11: Agenda: FY2019 Financial Forecast
1. Financial Highlights 2. 1st Half FY2019 Financial Results 3. FY2019 Financial Forecast
Slide 12: FY2019 Financial Forecast
FOR LIMITED DISTRIBUTION 3-1) FY2019 Financial Forecast 関係者外秘 [Consolidated Financial Forecast: Apr 2018 - Mar 2019] (100 million yen) FY2019 FY2019 YOY Change (Announced on 7/31) (Revised) FY2018 (18 vs. 19 Revised) Net Sales 14,000 100% 14,000 100% 13,995 100% 4 0.0% Operating Income 620 4.4% 620
Slide 13: FY2019 Forecast: Unit Production by Region
FOR LIMITED DISTRIBUTION 3-2) FY2019 Financial Forecast Unit Production by Region 関係者外秘 Seat Assembly Production Total By Region (10,000 Units) (10,000 Units) +9 YOY Change +1.2% FY18 FY19 Pct Change 740 749 -1 -0.5% +16 +7.2% -4 315 314 -3.3% -1 219 235 -1.4% 116 112 89 88 Asia & Europe & FY2018 FY
Slide 14: FY2019 Forecast: Net Sales & Operating Income by Region
FOR LIMITED DISTRIBUTION 3-3) FY2019 Financial Forecast Net Sales & Operating Income by Region 関係者外秘 Japan The Americas Income Variance ¥-97(100M) Income Variance ¥+90 (100M) • Higher Sales due to Model Mix Change • Lower Sales due to Volume decrease, • Lower Income due to Higher Labor & Overhead •
Slide 15: FY2019 Forecast: Asia & Europe
FOR LIMITED DISTRIBUTION 3-4) FY2019 Financial Forecast Net Sales & Operating Income by Region 関係者外秘 Asia & Oceania Europe & Africa Income Variance ¥-69(100M) Income Variance ¥-15(100M) • Higher Sales due to Volume increase in China • Lower Sales and Income due to One-time • Lower Income due to Infl
Slide 16: FY2019 Forecast Operating Income Variance Analysis
FOR LIMITED DISTRIBUTION 3-5) FY2019 Financial Forecast Operating Income Variance Analysis関係者外秘 (100 million yen) Operating Income -91(-12.9%) ＋43 -105 711 ＋36 -145 Volume ＋211 -6 -7 620 Increase Model & New -118 Product Mix Models FOREX Others Changes in Product Prices Increased Cost Overhead Reduc
Slide 17: FY2019 Forecast By Half Year
FOR LIMITED DISTRIBUTION 3-6) FY2019 Financial Forecast By Half Year 関係者外秘 Net Sales ※[ ]Announced on 7/31 (100 million yen) FY2019 Forecast: Apr 2018 – Mar 2019 H1: Apr - Sep H2: Oct - Mar Full Year Japan [3,800] 3,824 [4,000] 4,025 [7,800] 7,850 The Americas [1,300] 1,353 [1,250] 1,246 [2,550] 2,6
Slide 18: Returning to Shareholders
FOR LIMITED DISTRIBUTION 3-7) FY2019 Financial Forecast Returning to Shareholders 関係者外秘 • In FY2019, our annual per-share dividends payout plan is ¥56, which is ¥2 higher than in FY2018. • We keep long-term sustainable dividends comprehensively taking our consolidated financial results into account.
Slide 19: Financial Performance: Aim for Sustainable Growth
Financial Performance Aim for Sustainable Growth
Slide 20: Progress with the 2020 Mid-term Business Implementation Plan
1. Progress with the 2020 Mid-term Business Implementation Plan 1) Overview 2) Progress
Slide 21: Progress with the 2020 Mid-term Business Implementation Plan
1. Progress with the 2020 Mid-term Business Implementation Plan 1) Overview 2) Progress
Slide 22: Overview of 2020 Mid-term Business Implementation Plan: Vision
Overview of 2020 Mid-term Business Implementation Plan FOR LIMITED DISTRIBUTION 関係者外秘 Vision The Company We Aim to Become Looking into the future, we will create tomorrow’s automobile interior spaces that will inspire our customers the world over (1) Our desired status in Business A company that per
Slide 23: Management structure we aim to achieve
Overview of 2020 Mid-term Business Implementation Plan FOR LIMITED DISTRIBUTION 関係者外秘 The management structure we aim to achieve (1)We contribute towards social value by pursuing the corporate growth while fulfilling our responsibility in harmony with society. (2) We pursue sustainable growth by foc
Slide 24: Management System
Overview of 2020 Mid-term Business Implementation Plan FOR LIMITED DISTRIBUTION 関係者外秘 Management System 1) Management System Chart Management Plan is formulated, decided, and operated based on Principles of Toyoda, Corporate Philosophy, and VISION. Action perspective Action guidelines Principles of
Slide 25: Building up the Management Structure
Overview of 2020 Mid-term Business Implementation Plan FOR LIMITED DISTRIBUTION 関係者外秘 Building up the Management Structure Developing a KPI tree of Management Structure of management processes to create economic value Management of drivers to create economic value Economic value Enhancing relationsh
Slide 26: Progress with the 2020 Mid-term Business Implementation Plan
1. Progress with the 2020 Mid-term Business Implementation Plan 1) Overview 2) Progress
Slide 27: Progress of 2020 Mid-term Business Implementation Plan
Progress of 2020 Mid-term Business Implementation Plan FOR LIMITED DISTRIBUTION 関係者外秘 We are progressing in line with plans and steadily improving our management fundamentals. 1 Strengthen competitive advantage For “Develop new technologies and new products toward 2030,” clarified steps toward rea
Slide 28: Items to be explained today
FOR LIMITED DISTRIBUTION 関係者外秘 Items to be explained today Desired status Key measures Corporate growth while CSR Contribute to enhance social value through activities that meet fulfilling our responsibility in harmony with society Environment the expectations of every stakeholders Comfort Safety De
Slide 29: Sustainable growth
Desired status Key measures Corporate growth while CSR Contribute to enhance social value through activities that meet fulfilling our responsibility in harmony with society Environment the expectations of every stakeholders Comfort Safety Develop new technologies and new products Strengthen toward 2
Slide 30: Develop new technologies and new products toward 2030
Develop new technologies and new products toward 2030 FOR LIMITED DISTRIBUTION 関係者外秘 What we have achieved and what we aim at 2018 2020 2025 2030 Change in market environment Lv2 Lv3 Lv4 Lv5 Expansion of CASE Owner Car Shared Car Ride Share MaaS Growth strategy <Step 3> System supplier that manages
Slide 31: Five senses + air quality control system development
Develop new technologies and new products toward 2030 Comfort 関係者外秘 FOR LIMITED DISTRIBUTION Safety Five senses + air quality control system development As technology to realize proposed value, development under way according to the action plan Light Light Smell Smell Air- Air- conditioning conditio
Slide 32: Sustainable growth
Desired status Key measures Corporate growth while CSR Contribute to enhance social value through activities that meet fulfilling our responsibility in harmony with society Environment the expectations of every stakeholders Comfort Safety Develop new technologies and new products Strengthen toward 2
Slide 33: Manufacturing innovations toward 2030
Manufacturing innovations toward 2030 FOR LIMITED DISTRIBUTION 関係者外秘 Taking future predictions into account, planning to steadily realize connected plants (IoT). Progressing as planned (FY) (FY) 2018 2019 2020 2021 2022 Accumulate Big Data / Try to accumulate data on Model line Create infrastructure
Slide 34: Manufacturing innovations toward 2030: next-generation lines
Manufacturing innovations toward 2030 FOR LIMITED DISTRIBUTION 関係者外秘 Promotion to build of next-generation lines to secure competitive advantage in manufacturing for the future 175 development themes registered and promoted 2018 2019 2020 2021 2026 (FY) Start deployment in Japan and Establish global
Slide 35: Setting up a MONOZUKURI Innovation Center
Manufacturing innovations toward 2030 FOR LIMITED DISTRIBUTION 関係者外秘 Setting up a MONOZUKURI Completion scheduled: Innovation Center November 2019 Accelerate process innovation for the Develop innovative items and evolve standard lines, future promote global deployment Establish development struct
Slide 36: Sustainable growth
Desired status Key measures Corporate growth while CSR Contribute to enhance social value through activities that meet fulfilling our responsibility in harmony with society Environment the expectations of every stakeholders Comfort Safety Develop new technologies and new products Strengthen toward 2
Slide 37: Strengthen development capabilities
Strengthen development Further enhance our fundamental capabilities in manufacturing FOR LIMITED DISTRIBUTION capabilities 関係者外秘 Launch various types of high-quality seats and interior items, making full use of the capabilities accumulated through improvement of development efficiency 2019 2020 2021
Slide 38: Strengthen production capabilities: Standardization
Strengthen production Further enhance our fundamental capabilities in manufacturing FOR LIMITED DISTRIBUTION 関係者外秘 and capabilities Steadily build a standardized line to improve quality and productivity (FY) Shop activity 2019 2020 2021 Promote process Establish global Standardization Improvement Im
Slide 39: Improvement independence of plants
Strengthen production Further enhance our fundamental capabilities in manufacturing FOR LIMITED DISTRIBUTION 関係者外秘 and capabilities Promote independence of plants by strengthening frontline capabilities (FY) PMR Activity 2019 2020 2021 Promote independence of independence of Grasp weaknesses Improve
Slide 40: Sustainable growth
Desired status Key measures Corporate growth while CSR Contribute to enhance social value through activities that meet fulfilling our responsibility in harmony with society Environment the expectations of every stakeholders Comfort Safety Develop new technologies and new products Strengthen toward 2
Slide 41: Strengthen profit structure: seat frame integration
Strengthen profit structure (Complete business integration for seat 関係者外秘 frame) FOR LIMITED DISTRIBUTION Integrate frame businesses (businesses assigned from Aisin Seiki and Shiroki Corporation in 2015) (1) Develop an integrated system for development and production of frame mechanism components Ai
Slide 42: Sustainable growth
Desired status Key measures Corporate growth while CSR Contribute to enhance social value through activities that meet fulfilling our responsibility in harmony with society Environment the expectations of every stakeholders Comfort Safety Develop new technologies and new products Strengthen toward 2
Slide 43: Strengthen profit structure: Rebuild business in Japan
Strengthen profit structure (Rebuild business structure in Japan) FOR LIMITED DISTRIBUTION 関係者外秘 1) Rebuild business structure in Japan FY2019 FY2020 and beyond (1) Formulate a production strategy that will flexibly (2) Integrate production and streamline plants offset demand fluctuations and minimi
Slide 44: Sustainable growth
Desired status Key measures Corporate growth while CSR Contribute to enhance social value through activities that meet fulfilling our responsibility in harmony with society Environment the expectations of every stakeholders Comfort Safety Develop new technologies and new products Strengthen toward 2
Slide 45: Active commitment to growing markets
Strengthen profit structure FOR LIMITED DISTRIBUTION 関係者外秘 Active commitment to growing markets Expedite response to customer needs (Sales, R&D) Enhance plant production capacity in view of future Set up branch offices at Tianjin and Guangzhou (opened July 2018) Production Quality R&D engineerin
Slide 46: Sustainable growth
Desired status Key measures Corporate growth while CSR Contribute to enhance social value through activities that meet fulfilling our responsibility in harmony with society Environment the expectations of every stakeholders Comfort Safety Develop new technologies and new products Strengthen toward 2
Slide 47: Strengthen global headquarters functions
Create a global management foundation FOR LIMITED DISTRIBUTION 関係者外秘 Strengthen global headquarters functions Completion scheduled: May 2020 Advance management control Integrate corporate functions Enhance regional, product business, Renew office spaces, set up collaboration areas and external ties
Slide 48: Presenting technologies useful to society
Topics FOR LIMITED DISTRIBUTION 関係者外秘 Presenting technologies useful to society Diversity and open discussion Discussion with external specialists on new values: Setting up Technical Advisory Board Board members Shoji Takeuchi, Professor (Institute of Industrial Science, The University of Tokyo) Ken
Slide 49: Finally: Value Creation Process to Realize Our Vision
Finally FOR LIMITED DISTRIBUTION 関係者外秘 Value Creation Process to Realize Our Vision Vision Resources supporting value creation *1 Business activities Result *1 Deploying business based on an awareness of B to B to C Sound financial foundation Improved capital efficiency Seat business • Consolidated
Slide 50: Disclaimer
Disclaimer This report contains forecasts and expectations that relate to future plans and strategies in addition to the expected financial results of the Toyota Boshoku Corporation and the Toyota Boshoku group. Within are estimates based on assumptions and opinions that have been formed by the comp