Fiscal Year Ending March, 2023
Financial Results

May 16th, 2023

「エフテック」で検索
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F-TECH INC.
Copyright(c) 2023 F-TECH INC. All Right Reserved1Table of Contents

1 決算概要Financial Summary

2 業績予想Earnings Forecast

3 経営戦略Management Strategy

4 トピックス
Copyright(c) 2023 F-TECH INC. All Right Reserved

Topics2

Table of Contents

1 決算概要Financial Summary

2 業績予想Earnings Forecast

3 経営戦略Management Strategy

4 トピックス
Copyright(c) 2023 F-TECH INC. All Right Reserved

Topics3

Consolidated Financial Results Overview (Year on Year)(Unit: Millions of yen)
FY Mar. 2022 Actual

FY Mar. 2023 Forecast

191,892

100.0％

261,156

100.0％

69,263

36.1％

Operating profit

1,142

0.6％

2,038

0.8％

895

78.4％

Ordinary profit

1,292

0.7％

1,921

0.7％

628

48.6％

209

0.1％

1,734

0.7％

1,524

728.1％

11.27

－

93.30

－

82.03

－

Sales

Net income attributableto parent company
shareholders
Earnings per share (Yen)

ChangeFY Mar. 2022

FY Mar. 2023

Change１US$

113.03Yen

136.00Yen

22.97Yen

１CAN$

90.14Yen

102.49Yen

12.35Yen

１ Yuan (RMB)

17.12Yen

19.49Yen

2.36YenIncrease in sales and profit from the previous fiscal year.
Copyright(c) 2023 F-TECH INC. All Right Reserved4Consolidated Sales (Year on Year)（Unit：%）（Unit：Million）

Consolidated Sales by Segment（Amount）
300,000

191,892

Sales Share（%）
Japan,
10.6%

Japan, 8.9%

N.America,
58.1%

N.America,
65.0%

Asia,
68,149

Asia,
31.3%

Asia,
26.1%

FY Mar.2023
ActualFY Mar.2022
ActualFY Mar.2023
Actual261,156
Japan,
23,355200,000

100,000

0

Japan,
20,360N.America,
111,524
Asia,
60,007FY Mar.2022
ActualN.America,
169,650（Japan）▲1.7％（N. America）＋6.8％（Asia）▲5.2％

Change in Consolidated SalesFY Mar. 2022

FY Mar. 2023

ChangeChange(%)

FX ImpactJapan

20,36023,355

2,995

14.7％

ー

2,995

14.7％

N. America

111,524

169,650

58,12652.1％

25,21832,907

29.5％

Asia

60,007

68,149

8,141

13.6％

7,931

210

0.4％

Consolidated

191,892

261,156

69,26336.1％

33,14936,11318.8％

Real Difference

Change(%)

Despite the impact of semiconductor shortages,
North American production increased due to yen depreciation and the effect of new products order.
Copyright(c) 2023 F-TECH INC. All Right Reserved5Consolidated Operating Profit by Segment （Year on Year）（Unit：%）（Unit：Million）

Operating Profit
FY Mar.
2022

FY Mar.
2023

ActualActualShare(%)

Change(%)

FY Mar.

FY Mar.

2022

2023

ActualActualChange

(%)

1,202

417

▲785

▲65.3％

105.2％

20.5％▲84.7％▲2,802▲1,0401,761

ー▲245.2％▲51.1％

194.2％

Asia

3,292

2,340

▲952

▲28.9％

288.1％

114.8％▲173.3％

Total

1,691

1,716

24

1.5％

148.0％

84.2％▲63.8％

Adjust

▲548

321

870

ー

▲48.0％

15.8％

63.8％

Consolidated

1,142

2,038

895

78.4％

100.0％

100.0％

0.0％

Japan
N. America

Copyright(c) 2023 F-TECH INC. All Right Reserved

6Consolidated Operating Performance by Segment （Japan）
Sales
20,36023,355

Change2,995

Change %14.7％

FX ImpactーReal Change

2,995

Change %14.7％

1

New order from TOYOTA and rising selling price due to thematerial price hike

5,284

2

Machinery and tools sales decrease（Sales of die equipment for the group）

3

Technical services sales increase（Royalty, Development fee, etc）

409

4

Domestic subsidiaries sales increase

667

5Inter-company sales decrease▲1,757

Total

2,995

FY Mar.2022

FY Mar.2023

1,202

4,771

4,695

1Q

4,035

5,422

2Q

5,785

6,006

3Q

417

Change %▲65.3％FX Impactー▲785Real Change

FY Mar.2022

FY Mar.2023▲65.3％

Change %Reason of Change▲1,608FY Mar.2022▲785

ChangeReason of Change

Quarterly Change（Unit：Million Yen）

Operating Profit

1

Increase in profit due to sales growth（new order
325, influence of soaring prices ▲195）

2

Lower machinery and tools sales

▲166

3

Technical service sales increase393

4

Domestic subsidiaries profits decrease

▲246

5

Lower sales to the group

▲896

Total

FY Mar.2023

5,767

4Q

7,232

130

▲785

FY Mar.2022

Quarterly Change
509

184
▲ 327
1Q

▲ 336
2Q

462

288

FY Mar.2023

892
▲ 53

3Q

4Q

Sales increased due to new orders, but
Operating profit decreased due to soaring prices of electricity and other commodities.
Copyright(c) 2023 F-TECH INC. All Right Reserved

7

Consolidated Operating Performance by Segment （North America）
Sales
111,524

58,126

Change169,650FY Mar.2022（Unit：Million Yen）

Operating Profit

FY Mar.2023

Change %52.1％

FX Impact

25,218

Real Change

32,907

Change %

29.5％

1,761

Change▲2,802FY Mar.2022▲1,040FY Mar.2023

Change %ーFX Impact▲142

Real Change

1,904

Change %ー

2,364

Reason of Change

Reason of Change
1

Increase of product sales（HM +4,043,Others +19,383）

23,4261

Product sales increase(new order3,089, influenceof soaring prices▲725)

2

Increase of machinery and tools sales

2,244

2

Higher machinery and tools sales

406

3

Rising selling price reflecting prices hike

7,238

3

Decrease of government subsidy

▲867

4

FX Impact

25,218

4

FX impact

▲142

Total

FY Mar.2022
FY Mar.2023

Quarterly Change
27,307 37,012

1Q

24,80041,456

2Q

Total

58,12625,05642,5593Q

34,3601,761

Quarterly Change▲ 788 ▲ 1,013 ▲ 1,360

48,622

4Q

1,423

1,283

▲ 2,077▲ 118▲ 1,192

FY Mar.2022
FY Mar.2023

Despite the removal of government subsidies and price hikes,
sales and operating profit increased due to the effect of mass-production of new orders.
Copyright(c) 2023 F-TECH INC. All Right Reserved

8Consolidated Operating Performance by Segment （Asia）
60,007FY Mar.2022（Unit：Million Yen）

Operating Profit

Sales
68,149FY Mar.2023

Change

▲952

13.6％

Change %▲28.9％FX Impact

7,931

FX Impact

247

Real Change

210

Real Change▲1,199Change %0.4％

Change %▲36.4％

Change8,141

Change %

3,292

2,340

FY Mar.2022

Reason of Change

FY Mar.2023
Reason of Change

1（China）Sales decrease（Material cost
hike7,238,Sales decrease ▲12,136）

2▲4,898

1（China） Decrease in operating profit (OP) due tolower product sales▲2,222（Asia） Order increase

1,222

2

（Asia） Increase in OP due to higher product sales

809

3（Asia） Sales increase due to ISS acquisition

3,886

3

（Asia） Increase in OP due to ISS acquisition

214

4

FX impact

7,931

4

FX impact

247

Total

8,141

FY Mar.2022

Quarterly Change
14,478

18,103

20,16013,656 14,571

Total

13,896FY Mar.2022

FY Mar.2023

17,976

2Q

3Q

4Q

Quarterly Change

FY Mar.2023

15,316
662

693

1Q

▲952

1Q

1,148

692

327

1,579
482

48
2Q

3Q

4Q

China : Sales and operating profit decreased due to Zero corona policy ,Asia : Sales and operating profit increased due to production recovery and acquisition of ISS
Copyright(c) 2023 F-TECH INC. All Right Reserved

9Changes in Operating Profit by Segments (FY Mar. 2023 Actual)
633

1,074

1,142

870

2,038

Consolidated
Adjustment

FY Mar.
2023

105
▲920

▲867
FY Mar.
2022

Japan

1,202

N
America▲2,802

Asia

3,292

Adjust▲548

Consolidat
ed

1,142

Government

Subsidy▲867

Product
Sales
ImpactMachine andTools, andTechnical
services
Sales Impact

Inflation
Impact

▲817

227

▲195

3,090

406

▲725

FX
Impact

417

▲785

▲142

▲1,040

1,761

247

2,340

▲952

870

321

870

870

2,038

895

▲1,199

▲867

1,074

633

Change▲920

Copyright(c) 2023 F-TECH INC. All Right Reserved

105

10

Consolidated Financial Results Overview(Compared to revised announcement on Nov. 4, 2022)（Unit：Million Yen）

FY Mar. 2023 Forecast

FY Mar. 2023 Actual

270,000

100.0%

261,156

100.0％▲8,843▲3.3％

Operating profit

2,000

0.7%

2,038

0.8％

38

1.9％

Ordinary profit

2,400

0.9%

1,921

0.7％

▲478

▲20.0％Net income attributableto parent company
shareholders

1,500

0.6%

1,734

0.7％

234

15.6％

Earnings per share (Yen)

80.69

―

93.30

―

12.61

―

Sales

ChangeFY Mar. 2023 Forecast

FY Mar. 2023 Actual

Change1US$136.25Yen

136.00Yen▲0.25Yen

1CAN$

105.26Yen

102.49Yen▲2.77Yen

1 Yuan (RMB)

19.61Yen

19.49Yen▲0.12Yen

Despite semiconductor shortages and production cutbacks due to China's zero-corona policy, operating profit
kept up with earnings forecasts.
Copyright(c) 2023 F-TECH INC. All Right Reserved

11

Table of Contents

1 決算概要Financial Summary

2 業績予想Earnings Forecast

3 経営戦略Management Strategy

4 トピックス
Copyright(c) 2023 F-TECH INC. All Right Reserved

Topics12

Consolidated Earnings Forecast (FY Mar. 2024 forecast)(Unit: Millions of yen)

FY Mar. 2023 Actual

FY Mar. 2024 Forecast

261,156

100.0％

287,000

100.0％

25,843

9.9％

Operating profit

2,038

0.8％

5,600

2.0％

3,561

174.7％

Ordinary profit

1,921

0.7％

3,500

1.2％

1,578

82.2％

Net income attributableto parent company
shareholders

1,734

0.7％

1,500

0.5％

▲234

▲13.5％

Earnings per share (Yen)

93.30

ー

80.69

ー

▲12.61ー

Sales

ChangeFY Mar. 2023 Actual

FY Mar. 2024 Forecast

Change1US$136.00Yen

128.00Yen▲8.00Yen

1CAN$

102.49Yen

95.00Yen▲7.49Yen

1 Yuan (RMB)

19.49Yen

18.70Yen▲0.79Yen

Increased in sales and operating profit due to recovery of production of major customer andfull-scale mass production of newly ordered products.
Copyright(c) 2023 F-TECH INC. All Right Reserved

13Consolidated Sales (Year on Year)（Unit：%）（Unit：Million）

Consolidated sales by segment
400,000

261,156

300,000

Japan,
23,355200,000

287,000
Japan,
29,344

N. America,
169,650

N. America,
197,910

Asia,
68,149FY Mar. 2023 ActualAsia,
59,744FY Mar. 2024 Forecast

100,000
0

Sales Share（%）
Japan, 8.9%

Japan,
10.2%

N. America,
65.0%

N. America,
69.0%

Asia,
26.1%

Asia,
20.8%

FY Mar. 2023 Actual

FY Mar. 2024 Forecast（Japan）+1.3％（N. America）+4.0％（Asia）▲5.3％

Change in Consolidated SalesFY Mar. 2023

FY Mar. 2024

ChangeChange(%)

FX Impact

Real Difference

Change(%)

Japan

23,35529,344

5,988

25.6%

―

5,988

25.6%

North America

169,650

197,910

28,26016.7%▲12,250

40,511

23.9%

Asia

68,14959,744▲8,405▲12.3%▲2,323▲6,081▲8.9%

Consolidated

261,156

287,000

25,843

9.9%▲14,574

40,41815.5%

Although affected by exchange impact, mass production of newly ordered products is getting into full swing in North
America
Copyright(c) 2023 F-TECH INC. All Right Reserved

14Consolidated Operating Profit by Segment （Year on Year）（Unit：Million Yen）

（Unit：％）

Operating Profit
FY Mar.

FY Mar.

2022

2023

ActualActualChangeShare(%)(%)

FY Mar.

FY Mar.

2022

2023

ActualActualChange
(%)

417

627

210

50.5％

20.5％

11.2％

▲9.3％

▲1,040

3,875

4,916

―

▲51.1％

69.2％

120.3％

Asia

2,340

931

▲1,408▲60.2％

114.8％

16.6％▲98.2％

Total

1,716

5,435

3,718

216.6％

84.2％

97.1％

12.8％

Adjust

321

164

▲157

▲48.8％

15.8％

2.9％

▲12.8％

2,038

5,600

3,561

174.7％

100.0％

100.0％―

Japan
N. America

Consolidated

Copyright(c) 2023 F-TECH INC. All Right Reserved

15

15

Sales Changes by Customer
Othersその他

100.0%

Mitsubishi
三菱

90.0%
80.0%

2.7%

3.0%

12.9%

12.7%

2.7%
70.0%

3.4%

10.9%

10.9%

7.5%

71.9%

40.0%
Honda
Te
30.0%
GM
TOYOTA
20.0%
S
10.0%
YAMAHA
Mitsubishi
0.0%

Others

FY 2021

FY 2022

ホンダ
Honda

55.8%

50.0%

FY 2020

Te社
Te

11.0%

60.4%
FY 2019

GM
GM

9.4%

66.8%

60.0%

S
S社

TOYOTA
トヨタ

11.4%

5.6%

70.0%

3.5%
5.9%

5.4%

9.3%

4.7%

72.0%

YAMAHA
YAMAHA2.8%

4.5%

FY 2023

FY 2024

169, 512

153,004

132,123

128,269

157,846

160,1446,443

10,211

10,374

14,317

24,54931,45030,25827,71920,051

17,791

29,90031,372

6,300

6,471

6,178

8,563

14,033

16,849

2,913

1,686

2,066

4,002

7,369

10,099

9

5

2

18

1,607

2,512

3,051

2,597

1,541

2,505

2,628

2,361

16,87519/3期

235,361

17,01920/3期

218,72121/3期

11,310183,647

16,427

22/3期

191,892

Copyright(c) 2023 F-TECH INC. All Right Reserved

23,22423/3期計画261,156

32,21324/3期予算

287,000
16

Financial Position（Unit：Million Yen）

Total Asset

200,000

Capital Investment

Depreciation

Interest-Bearing Debt

Interest-Bearing Debt Ratio

50.0%

180,000
160,000

40.0%

140,000
120,000

30.0%

100,000
80,00020.0%

60,00040,000

10.0%

20,0000Total Asset
Capital Investment
Depreciation
Interest-Bearing Debt
Interest-Bearing Debt Ratio

FY2019FY2020

FY2021

FY2022

FY2023137,010
8,056
11,72046,22033.7%

134,038
12,238
10,89051,342
38.3%

136,714
10,01010,032
49,56536.3%

160,931
16,651
10,58164,86740.3%

176,137
16,907
13,11273,92542.0%

Copyright(c) 2023 F-TECH INC. All Right Reserved

FY2024
Forcast178,253
10,75813,44673,783
41.4%

0.0%

17

Status of Dividend
End of Q1

End of Q2

End ofQ3

End of the
Term

Total

Payout Ratio

FY Mar. 2022 Actual (Last term)

0yen

10yen

10yen

88.7％

FY Mar. 2023 Plan (Current term)

10yen

10yen

20yen

21.4％

Change

10yen

0yen

10yen

ー

FY Mar. 2024 Forecast (Next term)

-

10yen

-

10yen

20yen

37.4％

Change

-

0yen

-

0yen

0yen

―

Dividend
PolicyF.tech’s basic policy regarding the profit distribution is based on the business performance.
We place importance on returning profits to our shareholders, and will strive to return profits based on along term perspective, including the profit situation and future business development, while strengthening
our financial structure.
Copyright(c) 2023 F-TECH INC. All Right Reserved

18

Table of Contents

1 決算概要Financial Summary

2 業績予想Earnings Forecast

3 経営戦略Management Strategy

4 トピックス
Copyright(c) 2023 F-TECH INC. All Right Reserved

Topics19

Review of the 14th (previous) medium-term business plan

Fiscal Year 2020-2022

Copyright(c) 2023 F-TECH INC. All Right Reserved

20Basic policy
Company policy：”Break the Limit! Best one for Customers all over the Word.”
Our Vision ：We aim to become “ the world’s leading manufacturer in the area of undercarriage functions.”

Goal

Basic Business Strategy
Back to Basics ～ Master what you are supposed to do◇Achieve profit at all sites◇Evolution of the simulation◇Revival of domestic sites
Challenge for New～challenge to create new value◇Acquire new customers◇Challenge in new regions◇Create new business opportunities
Maximize efficiency in our group

Profitability in all sites
Domestic Revival

・Strengthen manufacturing characteristics of sites with issues(improve quality and productivity)
・Investment control, thorough reduction of indirect costs, etc.

Evolution of Simulation

・Development of automation technology, NPD※Evolution of technology※Non Prototype Development

Establish new customers
Challenge for new region

・TOYOTA, GM and American manufacturers, EV manufacturers
・New stage in India, new business in Mexico, etc.

Creating new business・Development of automated equipment, co-creationin the pedal area
・Join the next-generation urban development plan of Kuki city

Sales 215 Billion yen
performance

Manpower efficiency, automation, reduction of scrap anddisposal costs
Copyright(c) 2023 F-TECH INC. All Right Reserved

Operating profit 7.5 Billion yen(Operating profit ratio over 3.5％）
21

Back to Basics Measures taken
Profitability inall sites

Evolution of
Simulation

・Improvement of quality and productivity
・Investment Control, Reduction of indirect costs
・Strengthening the structure of sites with issues

・Establishment of design technology that enables tocomplete product manufacturing without prototypes※NPD（Non Prototype Development)

Domestic
revivalProfitability in all sites was not achieved due tocustomers’ production cuts caused by semiconductors
shortages

・Development time saving and cost cut▲5％ expected

・Activation of domestic sites

・Start business with new customers

・Review of business operations
in Corporate Section

・Start project for business integration

・Environment management

・Achievement of environmental targets（Comparedto FY2017）

Copyright(c) 2023 F-TECH INC. All Right Reserved

22Challenge for New

Measures taken

Acquirenew
customers

・Expand business with major customers
・Expand sales to new customers

Challengein new
regions・Active expansion into the Mexican market
・Establishment of business in India

・Steady increase in transactions
with 4 major companies (other than Honda)
・Steady expansion of transactions with new customers

・Expanded capacity and started production of new models in Mexico
・Acquired coil, die and press business company in India.
・Started deliveries of products from Indian joint venture to customers

Expanded business in India and Mexico steadily

・Restructuring of group sales business
Create・Review of corporate department
new business
opportunities ・Joint development of pedals

・Launching new business

operations

・Development of "Automation of cart loading" equipment for the press
process

・Consolidate operations, Promoting efficiency
・Designing Pedals in Philippines/Start co-creating Manufacturing
・Joined in EV production(sub-frame) project (Kuki City)
Pursued possibilities through a multifaceted approach

Copyright(c) 2023 F-TECH INC. All Right Reserved

23

（Reference）Business in Mexico
F&P MFG DE MEXICO, S.A. DE C.V.
Invested approximately $100 million along with orders for 4 vehicle models (3 EVs) from 3 automakers.

※ Investment Details：10M Expansion of Building, 21M Expansion of press/painting capacity, 67M Welding lines for new models, etc. ）Additional introduction
Press3500t ・1000ｔ

8 new welding lines to be installed

Equivalent to existing coating line newly installed◆FY2023（ estimate ）Sales: Approx. 40 billion yen◆FY2022
Sales: Approx. 27 billion yen※Currency exchange rate FY2022：132yen / dollar

FY2023and thereafter：128yen / dollar

Growing into a Group Pillar in the 15th Mid-Term Management Plan
Copyright(c) 2023 F-TECH INC. All Right Reserved24Targets and Results
Count TargetsofPrevious Mid-term
Business Plan

FY2020216 Billion yen
5 Billion yen
2.3％

Sales
Operating Profit
Operating Profit Ratio

FY2021
222 Billion yen
7 Billion yen
3.2％

FY2022215 Billion yen
7.5 Billion yen

3.5％

US$=JPY105.0

Results

Sales
Operating Profit

183.6 Billion yen

191.8 Billion yen

261.1 Billion yen

3 Billion yen
1.7％

1.1 Billion yen
0.6％

2 Billion yen
0.8％

US$=JPY105.9

US$=JPY113.0

US$=JPY136.0

Interest-bearing debt balance

49.5 Billion yen

64.8 Billion yen

73.9 Billion yen

Interest-bearing debt dependence

36.3％

40.3％

42.0％

Operating Profit Ratio

Results

Covid-19, semiconductor supply shortages, and various cost increases have dramatically changed the business environment.
Especially, production cuts by automakers have had a major impact.
Copyright(c) 2023 F-TECH INC. All Right Reserved25Difference between operating profit targets and results for the final year (FY2022)

Operating Profit
Operating Profit Ratio

Business Plan for 2022

Results for 2022

7.5 Billion yen
3.5％

2 Billion yen
0.8％

7.5 Billion yen
North America▲4.87 Billion yen▲5.5 Billion yen＜Negative factors of NA＞
・ Reduction in OEM production due tosemiconductor shortages
・ Increase in material and transportation costs
・ Tight labor market in North America＜Positive factors of Japan＞
・ Increase in royalties 0.7 billion yen (FX, new orders)・ Increase in equipment sales profit 0.8 billion yen (Te, GM)

China ▲2.39 Billion yen
Other 1.06 Billion yen

Japan 1.22 Billion yen

2 Billion yen

FX 0.13 Billion yen

Asia ▲0.62 Billion yen

Copyright(c) 2023 F-TECH INC. All Right Reserved

26

15th (New) Medium-Term Business Plan
Fiscal Year 2023-2025

Copyright(c) 2023 F-TECH INC. All Right Reserved27Challenges and Strategic Direction
F-tech’s 14th Mid-Term Business Plan Summary
Environmentchange・ Unachieved of high quality and high efficiency production ⇒ Profitability in all sites was not achieved・ Large investments increased the financial burden ⇒ Financial strength declined
・ Engineer training is underway ⇒ Mandatory to maintain competitive advantage

Recovery of Profitability
challenges

External Environment

Return of large investments of 14th midterm business plan

Securing investment capitalfor sustainable growth・Decrease in sales due to automakers' production cut
・Increased emphasis on EV shift and carbon neutrality
・Shift to focus on sustainability

Expansion of sales promotion
Expansion of EV commercial rights

Improving businesssustainability

Optimization of resources①Enhancing earning power
Improve the manufacturing chracteristic, which has declined dueto the external environment change, into a strength again andcontribute to profits.

③Strategically pursue growing business opportunities
Utilize our strengths to capture the needs of the EV shift andstrategically establish commercial rights in addition to Honda.

Strategic
direction②Improving financial structure④Establish sustainable management

Recover the fruit of investments made in the 14th mid-term business term andwe will strengthen the control of investments by monitoring the plan and result.

Enhance business sustainability by considering the influence to environmental, social,and economy.

Copyright(c) 2023 F-TECH INC. All Right Reserved28

OverviewGrowthCompany
policyWe contribute to society by improving earning power and achieving sustainable growth.

The 16th mid-term business plan
(FY26-FY28)
Targets to achieve :Operating profit ratio 5%

Challenge for New● Strategically pursue growing business opportunities

Establishment of sustainability Management-Expand Added Value through Strategic Sales Activities-Expand EV commercial rights- Maximize development efficiency-Establish new technology-Strengthen ESG management initiatives-Promote the realization of carbon neutrality-Improve evaluations by stakeholders

Earning profit

Back to Basics●Enhancing earning power

Reducing Debt

Investment for growthPursuing
the EssenceofMonozukuri(Manufacturing)●Improving financial structure-Develop F-Tech's integrated support to sites with issues-Increase profits by strengthening competitive advantage-Improve staff engagement-Develop human resources who can take an active rolein the F-Tech family-Recovering return on invest of 14 mid-term term-Control of Investment amount-Reinforce of the monitoring system for the profit
situation of each site

Earning power
Copyright(c) 2023 F-TECH INC. All Right Reserved

29

Back to Basics - Strengthening earning power
Group-wide support
for sites with issues

Improvement of profitability
by strengthening competitive
advantage

Improve employee
engagement

Develop human resources
who can play an active rolein the Group

Develop integrated Group support tailored with the weak points of each site.
N. America: production characteristics,
China: strengthening production and manpower efficiency,
Asia: profit structure
Contribution to profitability by pursuing the essence of manufacturing.
・Improve profitability through quality, cost, delivery and safety measures.

Implementing a multi-layered system that makes work worthwhile
・Revise the personnel system, promote diversity and develop a work lively movement.

Implement talent management.
・Implement overseas trainees and expatriates, optimize allocation of local human resources.

Copyright(c) 2023 F-TECH INC. All Right Reserved30

Back to Basics - Strengthening of the financial structure
Generate outcomes frominvestments during the
medium-term
management plan period

Controlling the amountof investment

Strengthen the profit
monitoring system

Management of return on investment for large investment projects,

e.g. in Mexico
Check investment performance of other individual projects against plans.

Controlling investment within the scope of the Group's depreciation
・Conduct a multifaceted evaluation of each general investment andnew model investment project to ensure thorough management.

Thoroughly manage profits and investments by focusing on sites with issues.
・Implement regular management of profit, investment and cash flow.

Copyright(c) 2023 F-TECH INC. All Right Reserved31Challenge for New -Pursue strategic business opportunities
Expand added value
through strategic sales
activities

Strategic sales expansion and negotiation development throughcollaboration between Japanese and North American sales companies.

Expand EV commercial
rightsDevelop sales activities in response to the accelerating trend towards EVs.
・Develop sales and development activities in an integrated manner byutilizing the EV development know-how accumulated to date.

Maximize development
efficiency

Improve development efficiency through cooperation between global
development bases.
Improve optimization development technology and train skilled
development engineers.

Establishment of newtechnologies

Establishment and operation of new technology in the engineering field
Challenges in new fields

Copyright(c) 2023 F-TECH INC. All Right Reserved32

(Reference) Strategic sales activities - North American sales company

North American sales company

Company profile:

Company name

F-TECH NORTH AMERICA INC.

Location

1050 Wilshire Drive, Suite 240 Troy, Michigan 48084 U.S.A.

Business activities

Sales activities for automobile manufacturers in North America

Date of commencement

April 2023

Capital

US$ 300,000

Investment ratio

F-Tech Inc. 100%

Net assets

US$ 362,000 （Estimated for FY Mar. 2023）

Total assets

US$ 2,274,000（Estimated for FY Mar. 2023）

Increase sales and added value through strategic sales activities,
and expand EV commercial rights
Copyright(c) 2023 F-TECH INC. All Right Reserved33

(Reference) Maximizing development efficiency - Evolution of simulation technology

Development system capable of responding flexibly and precisely to OEM requirements,
even if the vehicle's power source changes
DesignAnalysis

Prototype/Test

Optimization design

Analysis of performance impact when the
product is installed in a real vehicle

・Prototype production

・Product performance: strength, durability, composite,
noise, vibration, crash, and driving stability

・Performance requirements

Proposals can be made tomeet OEM requirements with
optimized specifications.

Analysis assuming a series of production processes.
・Manufacturing area : design for taking into accountof stamping, welding and painting process.

evaluation materials, strength,
durability, corrosion
resistance, suspension
characteristics

Aim to reproduce the complete product development and manufacturing process on simulation"Reduce development costs and time“ “Stable launch of new models”

Aiming for 15% higher rate of improvement compared to the previous
model in the final year of 15th mid-term plan
Copyright(c) 2023 F-TECH INC. All Right Reserved34

(Reference) Establishment of new technology-Expansion of introduction of automatic inspection lines

Inspection by skilled inspectors
Automatic inspection lines From skilled "human eyes"...
19 lines operation at North American sites
Existing technology＋new technology＝”Machine eyes” infused with F-Tech’s originals automatic

inspection technology know-how

Reduction of manpower

Eliminates variations in judgment
depending on the level of skill.

→Optimum allocation of manpower

Data on the workmanship of individual products

Reduction of production costs

Double the number of operations at North American sites in the
final year of the 15 th Mid-term Business paln
Copyright(c) 2023 F-TECH INC. All Right Reserved

35Challenge for New -Establishment of sustainability management
Establishment of the
Sustainability Promotion OfficePlanning and promotion of measures to promote sustainability
Strengthening ability to communicate

Promotion of carbon neutrality

Develop activities based on the carbon neutrality plan

Improvement of evaluation
among stakeholders

Proactive IR Activities, disclosure and resumption of dialogue with investors
Emphasizing on return to shareholders

Improve EPS

Aim for EPS of ¥175 or more by strengthening earning power

Copyright(c) 2023 F-TECH INC. All Right Reserved36

(Reference) Initiatives to achieve carbon neutrality
Externalorganization

Phase

DesignDevelopment

EG

Area

Energy saving & higher efficiency/Approach to product

Strengthening cooperation
with other industries / Supply chain
Responding toContribution to a mobility society
customer needs

・Study of low-CO2 specifications
・Development of environment friendly processes
・Proposal of high quality, high performance ,low・Improvement of fuelefficiency of products(weight reduction)

cost,, light weight and low CO2 emission specifications

De-carbonization of business area

Area

challenge

CN in the materials &logistics area

Develop environment friendly products

Past Initiatives

Development and production
collaboration in an integrated
in-house processing system

Manufacturing

De-carbonization

Past Initiatives
・Energy saving initiatives
・Utilize of ISO 50001
・Partial introduction of lowCO2 electricity

Minimize of CO2 emissions in
manufacturing process

・Visualization of energy (product LCA)
・Planned shift to large scale general purpose

Expansion into the supply chain area
Minimize CO2 emissions of
subcontractors ( Tier 2 and below)

・Energy saving/technical support
・Request for introduction of renewable energy/ low
Co2 emission electricity

Electrification of gas combustion facilities /shift to alternative fuels
Scope 1 (direct combustion) CO2 emissions minimization
・Electrification of gas-using equipment in the painting process.

Request
Periodical
evaluation

Climatechangeresearchorganization

・Use of synthetic fuels in processes

and high efficiency equipment

Expansion of renewable energy usage

CO2 emission electricity

Active use of renewable energy

・Systematic shift of renewable energy and low

Realization of Carbon neutrality

Towards "F-tech 2050 Carbon Neutral"

2040～

2023

Assessment
in 2022

B

Carbon Neutral Strategy Committee ( Chair : President, Member : each member )Copyright(c) 2023 F-TECH INC. All Right Reserved37

（Reference）Overall picture of the measures
Strategy

View
point

The map of Management Strategy
Company Policy : We contribute to society by improving earning power and achieving sustainable growth.

StakeholderTargetFinance

Net Debt/EBITDA

Operating Profit Margin①

Increase in

Enhancing earning power income and profit

OEM

Employee

Growthinvestment

Customer

Financial Institution

Shareholder③

Increase added value
by strategic sales

ProcessMeans

Max development efficiency

Pursuing the essenceof Monozukuri
・Supply with high-quality andefficiency production
・Improving own strengths

Humancapital

Wisdom

Improving
the engagement rate
Improving
the working environment

Expansion of EV business
Establishment of
new technology

Social Community④

Pursuing Strategic Growth Business Opportunities
Strengthening
competitive advantage
revenue enhancement

Fundraising
Ability②

Improving financial structure

Building Sustainable Business Management
Strengthen
monitoring system

Restraint on
investment
Create investment
results

Human Resources
・adopting～training
・increase motivation / ability
・promotion of reskilling
Copyright(c) 2023 F-TECH INC. All Right Reserved

Active
ESG management

High evaluationfrom stakeholders

Promoting the realizationof Carbon Neutrality
・Visualization of process energy with the LCA・Promoting Carbon Neutrality
・Environmental management

Compatible with prime market

Developing
an active workforce
Transforming
the organizational culture38

Target AmountFY 2023

FY 2025

Sales

287
Billion Yen

300
Billion Yen

Operating Profit

5.6 Billion
Yen

8.0
Billion Yen

Net Income attributable to Parent
Company’s Shareholders

1.5
Billion Yen

3.3
Billion Yen

Operating Profit Margin

2.0%

2.7%

Net Debt/EBITDA

Less than
3.6 times

Less than
3.1 times

EPS

80 Yenand more

175 andmore

Copyright(c) 2023 F-TECH INC. All Right Reserved*Conversion exchange rate:
128 Yen to US Dollar.
39

Table of Contents

1 決算概要Financial Summary

2 業績予想Earnings Forecast

3 経営戦略Management Strategy

4 トピックス
Copyright(c) 2023 F-TECH INC. All Right Reserved

Topics40

Efforts for Production -New models started in FY 2022
HONDA

Other OEM
*Not all models
are shown

China
CR-V

CIVIC

ZR-V

e:NP1

North America

Japan
ZR-V

SEDAN

PRIUS

Asia
CIVIC

TOYOTA

CR-V
HR-V

Te
EV-SUVYARISGRCOROLLA

Production and Delivery of Multiple Models Started
Copyright(c) 2023 F-TECH INC. All Right Reserved

41Initiatives to support Sustainable Growth◆Food Drive activity was held again this year!
We donated 3,600 meals and200 cases of drinking waterto Food Bank Saitama.

◆Global Initiatives -example.

◆The Supreme adviser Akihide Fukuda
awarded the 21st Shibusawa Eiichi Award.
The Shibusawa Eiichi Award, organized by Saitama Prefecture andother organizations, is awarded to business executives from all overJapan who carry on the spirit of Shibusawa Eiichi to the present day,with the aim of recognizing the life and achievements of Shibusawa
Eiichi, who was involved in the establishment and development ofmany companies, as well as in social work such as welfare andeducation, and laid the foundations of modern Japan and showing what
an entrepreneur should be today.
The award was given in recognition of ‘Excellent Management‘ and‘Contribution to Society’.

・DYNA-MIG（Canada）-Food drive activities.
・F.E.G. DE QUERETARO（Mexico）-Reservoir Cleaning Activity
・R&D Philippines（Philippines）-Infection Care Support for Employees& Fundraising for Typhoon Damage

We are contributing to society and local communities through various activities
Copyright(c) 2023 F-TECH INC. All Right Reserved

42

High recognition acquired from customers and government
Haga

Japan

Kuki

Kameyama

development

 March 2023 Yachiyo Industry Co., Ltd.
「Development Category Award」
 April 2022

Production Awarded by Minister of Education, Culture , Sport, Science and Technology – Prize for creativity
Engineering Kuki 「The Specifications Improving of Ultra-precision Forming for Automotive Components」

Kameyama 「Conveyance using product weight」

North America
Asia

Quality  March 2023 TOYOTA AUTO BODY CO.,LTD.
Delivery 「Quality Excellence Award」
Awarded for the March 2023 General Motors
F-TECH
Total
2ndyear in a row「31st annual Supplier of the Year Award」
F&P
Quality  April 2023 Honda（Canada） Delivery 「Service Parts Award」 「Delivery & Quality Award」
 March 2023 General Motors
DYNA-MIG
Support（Canada）「Customer Care and Aftersales On-Time Shipping Award」

FPMX
July 2022 General Motors
Quality（Mexico）「Supplier Quality Excellent Award 2021」
 March 2023 Toyota Motor Philippines Corporation
Quality「2022 SUPERIOR QUALITY PERFORMANCE AWARD」
FPMI（Philippines） Quality  May 2022
Yamaha Motor Philippines Inc.
Delivery 「2021 Supplier Award Best in Quality」 「2021 Supplier Award Best in Delivery」
 July 2022 Nissan Motor Thailand
FMTL
Quality（Thailand）「Regional Quality Award」
 July 2022 Denso Haryana Pvt. Ltd.
ISS
Quality（India）「The Certification of Appreciation - in the category of Quality for 2021-22 」
Copyright(c) 2023 F-TECH INC. All Right Reserved

43

ご清聴ありがとうございました
Thank you for your attention

本資料で記述している将来予測及び業績予想は、現時点で入手可能な情報に基づき当社が判断した予想であり、潜在的なリスクや不確実性が含まれています。
そのため、様々な要因の変化により実際の業績と記述としている将来見通しは 、大きく異なる
可能性があることを御承知おき下さい。
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 fromthe stated future forecasts due to changes in various factors.

「エフテック」で検索
https://www.ftech.co.jp

IR情報のお問い合わせ、取材申し込みは
For inquiries on IR information, please contact:

株式会社エフテック 管理本部 総務部/経理部
F-TECH INC.

代表TELManagement Planning Division General Affairs Department/Finance and Accounting Department0480-85-5211

Mailwebmaster@ftech.co.jp*If there is a difference between the Japanese version and the English version,please consider the Japanese as the correct one.
Copyright(c) 2023 F-TECH INC. All Right Reserved

Copyright(c) 2023 F-TECH INC. All Right Reserved

Appendix -Consolidated Balance Sheet (FY Mar 2023 results)
Fiscal Year Ending March, 2023 Financial Results( Unit :Million Yen )FY Mar. 2023 Actual FY Mar. 2024 Forecast

Cash and Deposits
Notes and AR
Inventories
OthersCurrent Assets(Property,plant andIntangible assets
Investment and others
Non-current Assets
Total Assets

FY Mar. 2023 Actual FY Mar. 2024 Forecast

Changes

5,492

6,371

880

37,17840,231

3,053

25,632

26,503

871

4,302

4,302

0

72,60377,407

4,804

92,28489,596▲ 2,688

285

285

0

10,965

10,965

0103,534

100,846▲ 2,688

176,137

178,254

2,116

Notes and AP
short-term loans
Current portion of Longterm loan
OthersCurrent Liabilities
Long-term loan
OthersNon-current Liabilities
Total Liabilities
Total Shareholders' Equity
Accumulated Other
Comprehensive Income
Non-controlling Interests

Interst-bearing debt
Interest-bearing debt ratio

73,92573,783

▲ 142

42.0%

41.4%

-0.6%

Total Net Assets
Total Liabilities and Net Assets

Copyright(c) 2023 F-TECH INC. All Right Reserved

Changes

24,58826,826

2,237

27,83338,935

11,102

12,995

11,800▲ 1,195

10,128

9,657

▲ 471

75,54587,218

11,67329,908

21,108▲ 8,800

5,928

5,150

▲ 778

35,836

26,258▲ 9,578

111,381

113,476

2,095

41,44342,569

1,126

8,596

7,273

▲ 1,322

14,71814,935217

64,75764,77821

176,137

178,254

2,116

Appendix -Consolidated cash flow statement (FY Mar 2023 Results)( Unit :Million Yen )FY Mar.2023 FY Mar.2024
Actual営業活動キャッシュフロー
Cash flow fm operating activities

Change20,000OperatingＣＦ
InvestmentＣF
FreeＣＦ

17,433

Forecast
15,00017,433

12,174

12,174▲ 5,259
10,000

投資活動キャッシュフロー
Cash flow fm investment activities▲ 16,343▲ 10,758

5,585
5,000

財務活動キャッシュフロー
Cash flow fm financial activities

2,341

▲ 403

▲ 2,743

1,090

1,416

0

現金及び現金同等物に係わる為替差額
FX adjustments associated with Cashand cash equuivalent

80

▲ 133

▲ 213

現金及び現金同等物の増減額
Net change of cash &cash equivalent

3,510

880

▲ 2,631

現金及び現金同等物の期首残高
Beginning balance of cash&cash
equivalent

1,981

5,492

3,510 ▲ 15,000

現金及び現金同等物の期末残高
Ending balance of cash&cash
equivalen

5,492

6,371

880 ▲ 20,000

FY Mar.2023

FY Mar.2024▲ 5,000▲ 10,000

Copyright(c) 2023 F-TECH INC. All Right Reserved▲ 10,758▲ 16,343

Appendix-Corporate Overview

Company Name

F-TECH INC.

Market Segment

Prime Market (7212)

Capital6.79 Billion Yen

President and CEO

Yuichi Fukuda

Consolidated Sales

261.1 Billion (year ending Mar 2023)

Number of
Employees(Consolidated)

9,763 (Non-consolidated: 926)
*The number of F-TECH (926 employees) does not include those of subsidiaries and expats.

Established

July 1, 1947

Address

19, Showanuma, Shobucho, Kuki, Saitama 346-0194, JAPANMain Customers

Honda, General Motors, Nissan, Toyota, etc.

Main Products

Underbody parts for automobile - suspension arm, sub-frame, axle beam,
pedal control, etc.
As of April 1st, 2023
Copyright(c) 2023 F-TECH INC. All Right Reserved

Appendix
Establishment-F-tech’s History

4 wheel businessBusiness expansion

Global expansion（1947‐1964） （1965‐1987）（1988‐1999）（2000‐ current）

1986
2014

1999
1964

F&P Mfg (Canada)
operation begins

Renamed to Fukuda
Press Kogyo

1978

2012 F&P MFG.DE MEXICO established1967

Fukuda Seisakusho
Established andmetal toy
1965
production begins

2008
Ftech R&D Philippines established

1993
Kameyama plant mass
production begins

1988

2023

F&P America operation begins

1991
Mitsubishi business starts

Renamed to F-tech2022

Acquire shares of India Steel
Summit and consolidate as a
subsidiary.
2006
Transition to New “Prime Market”
F-TECH MFG（THAILAND) operation begins
Listed on the first section of the Tokyo Stock Exchange Of theTokyo Stock Exchange

2004 F-tech WUHAN Inc. operation begins

4 wheel parts
production begins

F-TECH NORTH AMERICA
INC. establishedF.tech R&D (Guangzhou) INC established

Ftech Philippine operation begins

1947

YANTAI FUYAN MOULD CO., LTD established

2011

1994
HQs transferred to Kuki

Motorcycle parts
production begins

PT.F.TECH INDNESIA established
Michigan/R&D NA Office established

Listed on over-the-counter market
Nissan Shatai business starts

Honda business starts

2013

1996
1995

1959

R&D NA Europe Branch established1997 Daihatsu business starts
Dyna-Mig operation begins

2003 R&D North America established

2021

TOYOTA MOTORCORPORATION business starts

2020
2002 F-tech Zhongshan Inc operation begins. Joint investment in VEE GEE
Auto Components Pvt Ltd.
2001 TOYOTA North America
business starts Suzuki business starts
Listed on the second section of theTokyo Stock Exchange
2000 Nissan Motors business starts
F&P Georgia Mfg.,Inc established

Copyright(c) 2023 F-TECH INC. All Right Reserved

2018
F-TECH AUTOMOTIVECOMPONENTS PRIVATE LIMITED
establishedAppendix-Our Vehicle Components

Suspension Parts

Control parts
RR

FR

Module Assy

MountedComponents

Our products are critical safety auto parts which perform fundamental functions,“Drive”, “Turn” and “Stop”. We aim at the optimal specifications considering thehigher operation stability, riding comfort, and safety at the time of the collision.
Copyright(c) 2023 F-TECH INC. All Right Reserved

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 carriedout through F-TECH’s proprietary integrated processing system, which enables F-TECH
to supply products that own competitiveness, even in short time frame.
Copyright(c) 2023 F-TECH INC. All Right Reserved

Appendix -F-tech Group Companies in Japan【Facilities】
Head Office・Kuki Plant
Kameyama Plant
Haga Technical Center
Equipment Center【Group Companies】
Fukuda Engineering
Kyushu F.tech Inc.
Reterra Inc.
JohnanManufacturing Inc

Johnan Kyushu
Manufacturing Inc.

【Affiliated Companies】
Johnan Manufacturing Inc.
Johnan Kyushu
Manufacturing Inc.

Reterra Inc.
(Chichibu)

Haga Technical Center

Kyushu F.tech Inc.

Equipment Center (Kazo)
Head Office・Kuki Plant

Kameyama
Plant
Copyright(c) 2023 F-TECH INC. All Right Reserved

Fukuda Engineering Co., Ltd(Kazo)

Appendix -F-tech Group Overseas Subsidiaries （As of April 1st, 2023)
Dyna-Mig,Adivision of
YANTAI FUYAN MOULD
F&P Mfg.,Inc.
CO.,LTDF-Tech WUHAN Inc.

F&P AMERICA MFG.,INC.

F-Tech Zhongshan Inc.

F&P Georgia, Adivision of
F&P America Mfg.,Inc.

F-TECH AUTOMOTIVECOMPONENTS Pvt. Ltd.
India Steel Summit
Private Limited
F-TECH MFG.
(THAILAND)LTD.

F.techR&D(Guangzhou)inc.
F.TECH PHILIPPINES, MFG.,INC.
F.tech R&D Philippines Inc.
PT.F.TECHINDONESIAF&P MFG.,INC.
Michigan/R&D NA Office
F-TECH NORTHAMERICA INC.
F.TECH R&D
NORTH AMERICA INC.

F&P MFG DE MEXICO,S.A. DE CV.
F.E.G. DE QUERETARO
S.A. DE C.V.

Production plants

R&D, Sales facilities

North America (6)China (2)Asia (4)North America (3)China(2)Asia (2)F-tech has 12 production plants and 7 R&D, Sales facilities in 8 countries.
Copyright(c) 2023 F-TECH INC. All Right Reserved

Appendix -Affiliates and Alliances（As of April 1st, 2023)

Johnan Wuhan Inc.

Shanghai Huizhong
JV OZAUTO-AUSTEM L.L.C.

POS-AUSTEM Yantai
Automotive Co. Ltd.

JOHNAN AMERICA INC.

SMC Co.,Ltd.
PROGRESSIVE TOOLS &COMPONENTS(P) Ltd.
VEE GEE Auto Components
Private Limited.
VEEGEE Industrial
Enterprises PVT. LTD
ERECT ENGINEERINGPRESSWORKS SDN.BHD.
DELLOYD Industries(M) Sdn Bhd

CHEN IEU INDUSTRY CO., LTD.
POS-AUSTEM Wuhan
Automotive Co. Ltd.
JOHNAN F.TECH(THAILAND)LTD.
PT.JFD INDONESIA

JOHNAN DE MEXICO,
S.A.DE C.V.

COSMA DO BRAZIL

Affiliates

Alliances

North America (2)Asia (3)China (1)South America (2)Asia (6)China (3)GESTAMP BRAZIL

We have established optimal business partnerships in 6 countries and 1 region in order tosupply our products globally.
Copyright(c) 2023 F-TECH INC. All Right Reserved