Presentation for the Fiscal Year
Ended March 31, 2021
And New Mid-term Management Plan

May 26, 2021
This datum is based on the data as of March 31, 2021. The opinion
and forecast described here is based on our judgment at that timeand may possibly be changed without notice.

1. Operating results for FY2021
2. FY2022 earnings forecast
3. General Condition
4. New Mid-term Management Plan
5. SDGs（ESG） activity
6. Conclusion11. Summary of Consolidated Financial
Results for Fiscal Year Ended Mar 2021
（Million yen）

FY2020

FY2021

ChangeAmountChange Ratio

Net Sales

21,28019,539△1,740△8.2%

Operating
Income

260

176

△84

△32.4%(Margin)

1.2%

0.9%

-

-

Ordinary
Income

187

359

171

91.6%

△593

634

1,227

-

Net Income
Attribute to ownersof parent

FY2020： １US$＝109.1 JPY
FY2021： １US$＝106.2 JPY

21. Highlight-

Sales fell sharply year-on-year in April-June due to the impact of the new Corona Virus,
but sales have been recovering since July.
 Sales for automobiles declined sharply from April to June, declined slightly from the previous fiscal year from Julyto September, and increased substantially from the previous fiscal year from October to March.
 Sales for office appliance were sluggish until July-September due largely to a decline in demand for officeequipment as a result of the expansion of telecommuting, but sales for offices also picked up in October-March.
 In the medical market, the company has been certified as an essential product in Europe and the US and has
been able to continue production on an exceptional basis even if a general plant is suspended from operations. As
a result, the negative impact is small throughout the period.

-

In April-June, production losses were incurred due to a decrease in demand and adecrease in the operating rate due to transfer restrictions, but the operating rate
gradually recovered from July onward.

-

Recurring profit and net income were significantly higher than in the previous fiscal year.
 Operating income returned to profitability due to a recovery in sales and through cuts in fixed costs such as
personnel expenses.
 Ordinary income increased significantly due to the recovery in operating income and foreign exchange gains.
 Net income attributable to owners of the parent was largely raised due to the recording of a gain on the sale of
the California Plant, a U.S. subsidiary.

31. Quarterly Transition of Sales andIncome(Consolidated)（Million yen）

6,000

Net Sales(Left axis)
5,238

5,250

5,267

（Million yen）

Operationg Income(Right axis)
5,211

5,322

5,432
5,150

5,457

5,375

5,666

500

316
4,680

55

52
11

3,000

156 Note

146

122

3,736
32

27
-36

-52

0

-329

0

-500
1Q

2Q

3Q

FY19

4Q

1Q

2Q

3Q

FY20

4Q

1Q

2Q

3Q

4Q

FY21

Note：Earnings level is equivalent to 3Q in actual value excluding adjustment in settling accounts

41. Net Sales and Operating Income byGeographical Segment
Net Sales（Left axis）（Million yen）

Japan

Operating Income（Right axis）

Americas

Asia

Europe（Million yen）

10000

600
8,598

410

8,061
242

7500
94

179

115

300

7,915
286

7,352

5000

0

2500

2,562
△360

0
FY20

FY21

FY20

2,202

-300

1,936

2,188

△527
FY21

-600
FY20

FY21

FY20

FY21

＋ Increased sales to Automotive － Decreased sales to Automotive ＋ Restructuring of Factory in U.K.＋ Increased sale to precision－ Decreased sales to households － Decreased standardized
component＋ Reduced fixed cost andequipment＋ Reduced fixed cost and expense
expenseproducts－ Factory operation loss by covid － Decreased sales to Medical－ Decreased sales to Automotive－ Decreased sales to OA－ Factory operation loss by covid－ Factory operation loss by covid － Decreased sales to OA－ Factory operation loss
5

FY2020： １US$＝109.1 JPY
FY2021： １US$＝106.2 JPY

51.

Net Sales by Market（Million Yen）

FY2019Net Sales%

FY2020Net Sales%

AmountChangeRatio
ChangeAutomotive

10,784

50.7%

9,835

50.3%

△949

△8.8%

OA equipment

2,966

13.9%

2,400

12.3%

△566

△19.1%

Medical and
Healthcare

1,859

8.7%

1,775

9.1%

△84

△4.5%

Precision
component

924

4.3%

1,069

5.5%

145

15.7%

Aviation

914

4.3%

712

3.6%

△202

△22.1%

Information andcommunication

548

2.6%

661

3.4%

113

20.6%

AV and Home
appliance

579

2.7%

586

3.0%

16

2.8%

Infrastructureand Household
equipment

747

3.5%

575

3.0%

△172

△23.0%

Other

1,968

9.2%

1,926

9.9%

△42

△2.1%

Total

21,280100.0%

19,539100.0%△1,740△8.2%
6

1. Capital Investment・Depreciation Expense・Interest-bearing Debt
Capital investment

4,144

Interest-bearing Debt（include lease debts）（Million12,000
Yen）

D/E ratio

Depreciation expense（Million Yen）

11,192
10,83910,079

2.9

8,361

8,177
7,480
7,057

2,350

2.2

6,629

2,191

2,084

2,080
(Plan)

1.8

5,096
1,239
1,110

939
808

1.7

1.5

1,568
1,189 1,211 1242
1073
987

1.7

1,008

1215
1,118

1.3

3,977
1,215

1.1

(Plan)
0.8

799
0.6

0
FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY220
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY217

1. Operating results for FY2021
2. FY2022 earnings forecast
3. General Condition
4. New Mid-term Management Plan
5. SDGs（ESG） activity
6. Conclusion

82. FY2022 earnings forecast（Million yen）

FY2021(Result)

FY2022（Forecast）

ChangeAmountChange Ratio

Net Sales

19,53920,500961

4.9%Operating
Income

176

300

124

70.5%

(Margin)

0.9%

1.5%

-

-

Ordinary
Income

359

200

△159

△44.3%

634

100

△534

△84.2%Net Income
Attribute to owners ofparent（Yen）

Dividend1010

Note: the premise of exchange rate is set at ¥105 by 1US$.

-

-

9

1. Operating results for FY2021
2. FY2022 earnings forecast
3. General Condition
4. New Mid-term Management Plan
5. SDGs（ESG） activity
6. Conclusion

10

3. General Condition：Changes in Total Factory Area

Sifted from expansion to improvement

Expanded Mexico factory
Closed America 2nd factory(㎡)

130,000

Expanded Saitama factory

Closed U.K. 2nd factory

New factory

Czech factory

M&A
America factory

120,000(Relocation from CA to TN)

India factory

Vietnam factory（moved from old factory）

110,000

America 2nd factory
Niigata technical center
Expanded Mexico factory

100,000

Closed Miyagi factory

Indonesia Factory

Mexico factory

90,00080,000Saitama factory

Closed Fukushima Factory
Changzhou, China factory
Thai 2nd Factory

Chiba & Miyagi factory

70,000
Expansion period

Improvement period

60,000
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY2311

3. General condition : Transition of Operating profit

Realized V shape recovery.
(Million yen)

600

Operation profit transition by half year

Images of burden from starting investment
500

473
400

391
366
306

Reduce upfront
investment burden
and recovery sales.

301

300

200

100
Ideally, we want to invest and hire at the start of sales,
but in order to win orders from customers, it isnecessary to establish a system first. The new factory is
destined to have a heavy upfront investment burden.
0

162
137
121

150
110

84

63
Expanding2

Improvement▲296

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23

12

3.General condition：Compare to last year
Earnings deteriorated due to covid-19 damage in the first half, but
improvements will progress in the second half.

－Comparison of operation profit

FY2021
FY2020＋Establish

Years

2002

～18

Dongguan(China)

1988

～32

U.K.

2011

～ 9

Thai

1976

～44

Niigata(Japan)

2006

～14

Vietnam

2003～17

Dalian(China)

2013

～ 7

Changzhou(China)

2001

～19

Shanghai(China)

1978

～42

Singapore

2018

～ 2

India

2015

～ 5

Chiba(Japan)〃：under planning, Switch to technical center

2018

～ 2

Czech

〃

：FY2025, Delay due to Corona

2016

～ 4

Indonesia〃：FY2022 2nd half, implement improved activity

2016

～ 4

Saitama(Japan)〃：FY2024, for EV will start

2016

～ 4

Mexixo〃：FY2022 2nd half, Big project will start

1983

～37

America〃：FY2023, Relocate from CA to TN

The surplus driven
by profitable factories

1.4 bn.
JPY*Dongguan included Hongkong’s profit*Not included headquarters service cost that pay by subsidiaries.

Breakeven：FY2022 2nd half, Delay due to Corona13

1. Operating results for FY2021
2. FY2022 earnings forecast
3. General Condition
4. New Mid-term Management Plan
5. SDGs（ESG） activity
6. Conclusion

144. New Mid-term Management Plan：Slogan“3 years to build up power for a leap”
New Med-term Management Plan ThemeStrengthen governance system
Strengthen profit structure
Strengthen financial structure15

4. New Mid-term Management Plan：Whole image

Governance-

Renewal subsidiaries management
Effective use of group asset
Advanex brand

Filling leaping
Profit structure power Financial structure-“Products, Sales, Customer”
Total optimization, Reorganization
High added value-

Reduce liabilities with interest
improve consolidated financial
results accuracy

16

4. New Mid-term Management Plan：Governance- Renewed management structure ofoverseas subsidiaries-

Dispatch directors from HQReview capital structure- Effective utilization and sharing ofgroup assets-

Manpower, Goods, Capital
Information System(Account, Production control etc.)
Build Advanex Standard

17

4. New Mid-term Management Plan：Governance
Strengthen the involvement of the head office, and enhance the “linkage” ofmanagement
Past
Main Market
Management
Finance

Sales Strategy

Production
Strategy

Technical
Strategy
Subsidiaries
Board

Current, Future-

Office automation, Electric
devices-

Automotive, Medical, Infrastructure-Managed by local members-

Enhance HQ control
HQ evaluate subsidiaries management-

Managed by subsidiaries
individually-

HQ controls subsidiaries finance(Ideally,
cash is allocated from HQ to subsidiaries)-

Own sales strategy by eachsubsidiaries.

-

Global Sales Department will play acentral role in strengthening cooperative
relationships-

Effective use of idle equipment andsurplus capacity
Utilize human resources organically
across the globe

-

-

-

Local production for local
consumption

Leave it to Local

No resident Japanese director-

Strengthen support capability
Develop core-technology and expand it tosubsidiaries
Establish technical center-

Dispatch Japanese directors
18

4. New Mid-term Management Plan：Governance
Respond to changing customer needs by raising the level with a unified theme
for the headquarters and functional axes
Japan

U.K.

Czech

India

Indo
nesia

Thai

Singa Vietnam Dong Chang Dalian Shang America Mexico
pore
Guan Zhou (China) Hai(China) (China)(China)Sales - Approaching R&D bases and acquiring high value-added products
division - Propose best practices globally
Production - Accelerate the improvement of production efficiency including automation
division - Share processing methods and ideas with groups

EnhanceDR(design
review)
activity
Technical - -Sharedeveloped
production
methodand idea to Advanex groupdivision- Set a technical benchmark for wire/flat spring and Insert mold
QA
division- Develop a plan to reduce the in-process defect rate
- Improve the “quality of contracts” with customers

Admin.
19division- Strengthen both group governance and organization- Introduce a integrated system for the group19

4. New Mid-term Management Plan：GovernanceInsert Collar- Brand strategy-

Standard & Original Products
Penetration of our trademark. Selection of a trademark
suitable for the site.
-

Tangless🄬, InstantLock🄬、Heatnex🄬, Coilthread, Lockone🄬--

Patent / trademark registration strategy
Standard products lineup of Insert collar
Promotion of exhibitions globally
Improvement brand image and royalty
Web marketing, SNS, Digital strategy
Compliance for logo rules204. New Mid-term Management Plan：Profit structure- Sales strategy-

Expand global sales activity-

Promote the added value(1st section of the Tokyo stock exchange,a global company)
Sales mix(%)

FY2024FY2021

Other

Other

Standard
Standard
MedicalOA

AutoMedical

Auto

OA

21

4. New Mid-term Management Plan：Profit structure
Focus on Long life cycle, High profitability, low volatility

13,000

CAGR

12,00011,000（million）

9,479

5,000

Auto

Auto
MedicalStandard

Auto

10,000

11%
17%
10%

4,208
3,650

FY2023ＯＡ

Other

FY20223,000 2,950
2,300
1,750
Standard

2,300
2,100
1,450

2,700 2,900
2,300
1,600

MedicalFY2021Other

0Standard

Ｏ
Ａ

Medical

2,417
1,869
1,312

FY202422

4. New Mid-term Management Plan：Profit structure AutomarketWe will leverage our strengths to build a collaborative system with Tier 1 thatcan be adapted to next-generation vehicles.
Automaker

Japanese・European・American existing automaker,
Tesla, Apple, Chinese EV

Tier 1- Power control unit
- Inverter, converter- Sift by wire
EV, Autonomous- Sensor- Actuator- Americas
Global supply- Euro- China- South-east Asia, India

Mega supplier- Denso, Hitachi Astemo- Panasonic, Nidec- Bosch, Continental- EV startup, Chinese

Module- TNGA：Toyota
Commonalization - CMF：Nissan

Tier 2

Advanex- MQB：VW

Strong point・Strategy- Global supply system centered on Japan- Collaborative development and design proposal
from upstream- Promoting quality, supply and business
continuity

23

4. New Mid-term Management Plan：Profit structure Medical market

Focus on Global Mega-Pharma and expect market expanding

Number of Springs for syringe from Advanex

Global population（million pcs）

Images of syringe product and springs

Resource: Diamond

Global medical expense

Number of Springs for Inhaler from Advanex（million pcs）

Resource: Care net

24
Images of inhaler products and springs

24

4. New Mid-term Management Plan：Profit structure Standard products

Sharing information and know-how for new entry into unentered markets

Marketing teamTangless Insert

EuropeEngineering team

New entry
New Introduction

Aviation Maintenance Railway

Aviation

Industrial
Infrastructure
equipment

Production Development

Americas

Aviation

Aviation
Maintenance

Railway

Industrial
Infrastructure
equipment

Production Development

Asia/China

Aviation

Aviation
Maintenance

Railway

Industrial
Infrastructure
equipment

Production Development

Japan

Aviation

Aviation
Maintenance

Railway

Industrial
Infrastructure
equipment

Production Development25

4. New Mid-term Management Plan：Profit structure- Development/ Technology strategy-

New product development
Automation, IOT, RPA, VA/CD
Construction and penetration of AQS（Advanex Quality
Standard）- Purchasing strategy-

Establishment of global purchasing department,
consideration of utilization of overseas materials
Change commercial distribution, build relationships thatmatch the appropriateness of mutual prosperity
companies.

26

4. New Mid-term Management Plan：Profit structure- Overall optimization-

Review production allocation
Review unprofitable businesses- Reorganization-

Japan：Improve profitability at deficit factories
Americas：Relocation of factory and transfer to Mexico
China：Strengthen cooperation 4 factories（Dongguan, Dalian, Shanghai, Changzhou）
Southeast Asia：Verification of functions and roles for bothproduction and sales.
Improve profitability at Indonesia factory27

4. New Mid-term Management Plan：Profit structure③China reorganization

April, 2021～- Strengthen cooperation
4 factories②Japan reorganization

U.K.
Czech

⑤Europe reorganization
Oct, 2021～- Reinforce Czech

Jan, 2021～

DalianShanghai
Changzhou
Dongguan- Improve profitability
at Aomori and Chiba

Singapore
Thailand(Ayutthaya, Chonburi)
VietnamIndonesia④Southeast Asia reorganization
April, 2021～

America
Mexico（Queretaro, Nogales）①Americas reorganization
Dec, 2020~- Relocation to Tennessee- Transfer to Mexico- Verification of functions and roles for bothproduction and sales.
- Improve profitability at Indonesia

28

4. New Mid-term Management Plan：Profit structure
Aim to eradicate deficit companies.

ー

Establish

Years

1988

～33

U.K.

2016

～ 5

Mexico2011～ 9

Thailand

2002

～19

Dongguan

1946

～75

Japan

2006

～15

Vietnam

1983～38

America

2018

～ 3

India

2013

～ 8

Changzhou

2003

～18

Dalian2001～20

Shanghai

2016

～ 5

Indonesia

1978

～43

Singapore

2018

～ 3

Czech

operation profit＋

FY2024FY202129

4. New Mid-term Management Plan：Financial structure- Reduce debt, improve capital adequacy
ratio-

Investment restraint, effective use of group cash
Formulation of repayment plan, follow up（million yen）

4,000

Cash and deposit balance transition
Consolidated
non-consolidated

2,000

0

30

4. New Mid-term Management Plan：Financial structure- Improvement of consolidated
settlement accuracy--

Strengthen budget management system, improving
budget accuracy
Review accounting system, integrated financial data
Several companies system

Account system A

Account system C

ERP system B

ERP system B

Account system B
ERP system C

New account system

HQ

Conversion

Consolidated
financialstatement

Account system A
ERP system A

Introduce a new accounting system to increase the speed and accuracy of
consolidation of 14 overseas subsidiaries314. New Mid-term Management Plan：KPI- FY2024-

TargetNet sales
OP profit
Debt with interest：２３ bn. JPY： １ bn. JPY： less than６ bn. yen
Capital adequacy ratio ： more than ３０%32

4. New Mid-term Management Plan：Net sales & OP margin（Net sales: million yen）

30,00020,000（OP profit: million yen）

Net sales
20,294

OP profit

20,967

21,28017,85819,53920,50021,50023,000
2,000

1,000

10,000

1,000

600
247

259

FY17

FY18

0

66
FY19

260

176

FY20

FY21

300
FY22

FY23

FY24
33

4. New Mid-term Management Plan：Debt with interest &capital adequacy ratio

Capital adequacy ratio

Debt with interest
9,621

30%

（Capital adequacy ratio：%）（Debt: million）

10,000Capital adequacy ratio
Debt with interest

Debt with interest

6,000

Capital adequacy ratio
26.5%

5,000

25%
FY2021

FY2022

FY2023

FY202434

1. Operating results for FY2021
2. FY2022 earnings forecast
3. General Condition
4. New Mid-term Management Plan
5. SDGs（ESG） activity
6. Conclusion35

5. SDGs(ESG)：Automotive
Contributes to decarbonization of automobile(electric and lightweight) andsafety for accidents.

Electric

Lightweight

100%

100%

- Power control unit

- Insert collar- Invertor, Convertor- Battery(Compression limiter, Bush)

30%

50%

- Motor- Sift by wire

50%

15%

25%

5%
0%
（Sales ratio for electric drive）

Safety

0%

FY21

FY27

（for lightweight）

Other

100%

FY21

FY27

100%

(Autonomous)

75%- Ultrasonic Sensor- LiDAR- Camera- Air bag50%

- Operation assist(Power steering)

20%

50%

25%

5%
0%

（for safety drive）

0%

FY21

FY27

FY21

FY27

36

5. SDGs(ESG)：Medical
Contribute for healthcare and quality of life of people around theworld
Asthma inhaler kit- 334 million asthma patients worldwide- The number of deaths is 250 thousand per year
- Increased number of patients due to increased
pollen due to global warming‐ In the future, it will spread to poor areas withhigh mortality rates
Springs for inhaler

Resource: Global burden of Asthma

Insulin Injection kit- 382 million diabetes patients worldwide- The number of deaths is 1.5 million per year
- Rapid increase in China and India. Due toeconomic development‐ In the future, it will spread to poor areas withhigh mortality rates.
Springs for syringe

Resource: Associates of Northwest Arkansas

37

5. SDGs(ESG)：Standard products
Contribute to the spread of new energy infrastructure
and people’s safety

Wind power generation

Solar panel

Ceiling board that fell due to the earthquake

Tangless insert

LockOneInstant Lock

- For wind power generation- Locking bolt-nut for solar- Locking for ceiling board- For aviation

panel

etc.

- For railway- For any other infrastructure38

1. Operating results for FY2021
2. FY2022 earnings forecast
3. General Condition
4. New Mid-term Management Plan
5. SDGs（ESG） activity
6. Conclusion

39

6. Conclusion- By strengthening both governance and cooperation with groupcompanies, we will efficiently allocate the management
resources(people, goods, money, knowledge) of the entire group andestablish a system that can effectively demonstrate the power of thegroup.
- Formulated a reorganization plan the entire group and a “startup
deficit” elimination plan for each companies.
Steadily follow the progress by embodying the content of efforts,
deadlines, and target figures.
- RFQ for EV-related and mega-pharma are increasing.
SDGs(ESG) projects will become our growth driver.

40

（Contact）
Advanex Inc.
General Affairs Department.
Corporate Communication Section
TEL: 03 - 3822 – 5865
Email : tsutomu_kumaki@advanex.co.jp
URL: http//www.advanex.co.jp