COMPANY RESEARCH AND ANALYSIS REPORT

Fuji Die Co., Ltd.
6167
Tokyo Stock Exchange Prime Market

3-Sep.-2024
FISCO Ltd. Analyst

Hiroshi Okamoto

FISCO Ltd.
https://www.fisco.co.jp

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir■ Contents■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01■Company profile---------------------------------------------------------------------------------------------------------------------------------------------------------- 02
1. History and business overview.. ...................................................................................................................

02

2. Business description. . ..................................................................................................................................

03

3. Personnel trends and site network...............................................................................................................

04■Results trends--------------------------------------------------------------------------------------------------------------------------------------------------------------- 05
1. FY3/24 consolidated results overview.. .. ......................................................................................................

05

2. Conditions by customer industry category...................................................................................................

07

3. Financial condition and management indicators. .........................................................................................

08■Outlook-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 10• Outlook for FY3/25.. .....................................................................................................................................

10■Medium- to long-term growth strategy------------------------------------------------------------------------------------------------ 13
1. Transforming to the company structure to adapt business resilience...........................................................

13

2. Contributing to a zero-carbon and recycling-based society.........................................................................

15

3. Development of new business............... ......................................................................................................

17

4. Leaping forward in overseas business.........................................................................................................

17■Policy on shareholder returns------------------------------------------------------------------------------------------------------------------------ 18

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir■ Summary
Aiming to be one of the industry’s leading manufacturers withpowder metallurgy technology and high precision ultra-precision
processing technology
Fuji Die Co., Ltd. <6167> (hereinafter, “the Company”) was founded in 1949 when founder Takayoshi Shinjo launcheda business to take on the challenge of repairing wire-drawing dies. Since then, it has manufactured wear-resistanttools and molds, particularly cemented carbide products. The Company has maintained a long-term top market
share of at least 30% in the carbide wear-resistant tool industry, continued profitable operations since its founding,and had a high equity ratio of 79.0% at the end of FY3/24.
In FY3/24 consolidated results, net sales were ¥16,678mn, a decrease of 2.9% year on year (YoY), operating
profit decreased 29.7% to ¥809mn, ordinary profit declined 28.0% to ¥882mn and profit attributable to owners ofparent was down 45.1% to ¥709mn. Sales decreased due to stagnation in demand in China, delayed recovery inautomotive part-related molds amid inventory adjustments by automotive part manufacturers, and weaker demand
for rechargeable battery molds and drawn steel pipes, despite expanded demand for molds for motor cores andsemiconductor production equipment. There was a double-digit decrease in profits due to lower sales and one-time
expenses to expand the Kumamoto Manufacturing Plant, in spite of raised productivity, the results of operational
reform and the effects of price revisions. Profit attributable to owners of parent dropped sharply due in part to arebound decrease arising from having recorded gain on sale of non-current assets of ¥632mn in FY3/23.
For FY3/25 consolidated results, the Company forecasts net sales of ¥18,000mn (up 7.9% YoY), operating profitof ¥1,020mn (up 26.1%), ordinary profit of ¥1,150mn (up 30.4%), and profit attributable to owners of parent of¥830mn (up 17.0%). It forecasts higher sales and profits led by sales gains on recovery in automotive parts-related
molds and development of the Chinese market.
The Company formulated a new medium-term management plan with a central concept of “transforming thecompany structure to adapt business resilience” and aims to achieve net sales of ¥20,000mn. operating profitof ¥2,000mn, an ordinary profit margin of 10.5% and ROE of 7.0% in FY3/27. In priority measures, it aims tostrengthen the management foundation, increase productivity and improve business efficiency, leap forward inoverseas business, and develop new business. It also wants to be a company that contributes to a zero-carbon/
recycling-based society.
Key Points
In FY3/24, net sales dropped 2.9% and operating profit fell 29.7% due to delayed recovery in automotive
related molds through inventory adjustments by automotive part manufacturers and the impact of stagnation in
China’s economy• For FY3/25, forecasts increase in net sales of 7.9% and operating profit of 26.1% on recovery in automotive
part molds and cultivating the Chinese market• Formulated Medium-Term Management Plan 2026, aiming for net sales of ¥20,000mn and operating profit of¥2,000mn in FY3/27•

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01 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Summary

Results trends
Net sales (left)(¥mn)
20,00017,99018,356

Ordinary profit (right)

17,426

16,874(¥mn)
18,00017,17916,67814,247

15,000

2,000

1,500

1,473
1,348
1,202

10,000

1,225

1,150

1,000

1,008
882
5,000

500
300

0

0
FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24 FY3/25 E

Source: Prepared by FISCO from the Company’s financial results■ Company profile
Top specialty manufacturer of cemented carbide tools and molds(wear-resistant tools)
1. History and business overview
The Company primarily manufactures and sells high-precision wear-resistant tools and molds that use cemented
carbide, and has held the leading market share of over 30% for many years as a specialty supplier of carbide
wear-resistant tools. Wear-resistant tools are tools used in plastic deformation without chips or cutting scraps,
and this category includes dies, rolling tools, shearing tools, molds, press molds, and industrial nozzles. There aremany applications, such as molds for powder molding, rolls for wire and bar rolling, glass lens molding, water jet
nozzles, sand blast nozzles, tar sands nozzles, and kneader machine parts, crusher parts, machinery seals, andother wear-resistant parts. The entire industry weakened substantially in FY3/21 due to the impact of the COVID-19
pandemic, and while the Company rapidly recovered in FY3/22, earnings have subsequently been sluggish.
A defining feature of the Company is that it designs, based on customer requests in the manufacturing process, theoptimal tools and molds for each product material or application and has an integrated production system, frompulverizing, mixing using powder metallurgy technology, and granulating the raw material powders to sintering,machining, and product inspection to provide products. The Company emphasizes autonomy by avoiding skewed
sales reliance on even the largest customers, is strong in low-volume, high-mix production and secures profitability
from sales of high value-added products, which have high prices on average.

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02 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Company profile

2. Business description
The Company specializes in the manufacture of tools and molds (wear-resistant tools) centering on cemented carbide
products, and it mainly handles four types of products. Its sales mix in FY3/24 was 28.7% carbide tools, 23.5%
carbide molds, 24.0% other carbide products, and 23.8% non-carbide products.
Main products and specific application examples

Product categories

Main products

Specific application examples

Carbide tools

Dies, plugs

Wire and pipe production tools

Grooving plugs

Production tools for heat exchanged pipes

Hot rolling mills

Production tools for iron and steel materials

Cold-forming rolls

Production tools for building materials and pipes

Ultra high pressure generation tools

Production tools for synthetic diamonds and cBN

Kneading tools

Production tools for plastics and ceramics

Cutting items

Cutters for cutting steel sheets, films, and foils

Molds for automotive parts

Molds for production of engine, drive,
steering, and safety mechanism parts

Can manufacturing tools

Molds for production of beverage cans and food cans

Carbide molds

Mold parts for optical elements

Molds for production of battery cases andbattery parts, molds for automotive batteries
Molds for production of glass lenses

Powder compacting molds

Molds for production of magnets and sintered parts

Battery-related molds

Semiconductor and electronic component molds

Other carbide products Various parts
Non-carbide

Molds for production of sealing materials
Various equipment parts

Carbide blank materials

Various molds and tools, cutter materials

Steel products

Molds for production of beverage cans, engine parts, etc.

Ceramic products

Machinery tools and jigs

FHR products

Heat-resistant materials, casting materials

KF2 products

Tools and jigs for production of plastics, etc.

Copper-tungsten alloys

Electric discharge machining electrodes

Electroplated grindstone

Machining grindstone for hard materials

Self-lubricating composite alloy

Vacuum deposition equipment bearings, special environment bearings

Drawn steel pipes

Bearing and bicycle part materials

Source: The notice of the Annual General Meeting of Shareholders

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03 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Company profile

Examples of typical products

Source: The Company’s results briefing materials for individual investors

3. Personnel trends and site network
As of the end of FY3/24, the Company had 1,106 employees, including 869 on a non-consolidated basis. While
overseas employee numbers have been modestly rising in recent years, there is no significant change. The site
network consists of 12 domestic production sites and sales offices, and sites in 5 countries, including production
sites and sales offices in Thailand and Indonesia (Indian operations are currently dormant).

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04 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Company profile

Offices (As of March 31, 2024)

Source: The Company’s results briefing materials■ Results trends
In FY3/24, sales down 2.9% on delayed recovery in automotive partrelated molds amid inventory adjustments by part manufacturers
and impact of stagnation in the Chinese economy; operating profit
decreased 29.7% through higher one-off expenses
1. FY3/24 consolidated results overview
In FY3/24 consolidated results, net sales were ¥16,678mn, a decrease of 2.9% YoY, operating profit decreased 29.7%
to ¥809mn, ordinary profit declined 28.0% to ¥882mn and profit attributable to owners of parent was down 45.1%
to ¥709mn. Sales decreased due to stagnation in demand in China, delayed recovery in automotive part-related
molds amid inventory adjustments by automotive part manufacturers, and weaker demand for rechargeable battery
molds and drawn steel pipes, despite expanded demand for molds for motor cores and semiconductor production
equipment. There was a double-digit decrease in profits despite improved productivity, business reform results, andprice revision effect, because of pressure due to lower sales and a one-off increase in costs one-time expenses toexpand the Kumamoto Manufacturing Plant, in spite of raised productivity, the results of operational reform and theeffects of price revisions. Profit attributable to owners of parent dropped sharply due in part to a rebound decreasearising from having recorded gain on sale of non-current assets of ¥632mn in FY3/23.

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05 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Results trends

FY3/24 results(¥mn)
FY3/23

FY3/24

ResultSales ratio

ResultSales ratio

Net sales

17,179100.0%

YoY
1.8%

16,678100.0%

YoY-2.9%

Cost of sales

12,717

74.0%

1.5%

12,440

74.6%

-2.2%

SG&A expenses

3,310

19.3%

2.6%

3,429

20.6%

3.6%

Operating profit

1,150

6.7%

3.3%

809

4.9%

-29.7%

Ordinary profit

1,225

7.1%

1.9%

882

5.3%

-28.0%

Profit attributable toowners of parent

1,292

7.5%

63.5%

709

4.3%

-45.1%

Source: Prepared by FISCO from the Company’s financial results

Looking at trends in net sales by product category, in carbide tools, grooving rolls for overseas customers andsome drawing tools for steel pipes sold strongly as net sales increased 4.8% to ¥4,788mn. In carbide molds, motor
core molds sold briskly, but rechargeable battery mold sales dropped substantially due to a customer’s changeof production site, and automotive-related mold sales were sluggish due to prolonged inventory adjustments at
automotive part manufacturers as net sales decreased 7.1% to ¥3,920mn. In other carbide products, material sales
for China were sluggish due to the impact of uncertainty in the Chinese market, though demand for semiconductor
production equipment was solid, and net sales decreased 6.0% to ¥4,004mn. In non-carbide products, sales ofdrawn steel pipes were sluggish, though some tools and molds for steel automotive parts were firm, and net sales
decreased 3.9% to ¥3,964mn.

Net sales trends by product category
Carbide tools
Other carbide products（¥mn）
20,00017,99018,35618,00016,000

4,939

4,596

3,970

4,245

Carbide molds
Non-carbide products

17,426
4,044

14,247

14,00012,00010,000
8,000

6,000

3,854

16,874

17,17916,678

4,228

4,127

3,964

4,256

4,261

4,004

3,984

4,218

3,920

3,447
3,468

4,199

4,280

4,514
3,404

4,000
2,000

4,881

5,234

5,012

3,926

4,344

4,571

4,788

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/240

Source: Prepared by FISCO from the Company’s financial results and results briefing materials

Operating income was affected by a ¥501mn decrease in sales, a ¥68mn decrease due to the high cost of carbide materials, and a one-time cost of ¥179mn associated with the construction of a new metallurgy building inKumamoto, which was not offset by the ¥184mn in productivity improvements resulting from reduced outsourcing
expenses, etc., resulting in a significant decrease in profit. The Company fell ¥361mn short of its initial plan of¥1,170mn. This was due to the significant impact of ¥1,168mn in reduced sales, which was not covered by otherfactors.

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06 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Results trends

Factors of increase/decrease in consolidated operating profit (YoY)

Source: The Company’s results briefing materials

Looking at long-term trends perspective, factors behind the decrease included ¥132mn in one-off expenses andnet sales shortfall on the unexpected decrease in sales of battery molds, but the gross profit margin only decreased
0.6ppt YoY to 25.4%, which was not a significant decline. If the Company did not have the one-off expenses or
unexpected decrease in net sales, it could have secured profits on par with the previous fiscal year.
2. Conditions by customer industry category
In customer industry category on a non-consolidated basis trends in FY3/24 there was an impact from thesteep decline in electrical and electronic components sales. Electrical and electronic components net sales were
¥1,440mn, ¥670mn below the initial plan and down 23.1% YoY, which made up just over half of the ¥1,122mn
shortfall in consolidated net sales, which had an impact. The significant factor was a major user of the Company’s
EV cylindrical lithium ion battery molds relocated production to the U.S. due to the enactment of the U.S. Inflation
Reduction Act (IRA), which requires new EV to procure at least 50% of parts from North America to be eligible toreceive tax breaks. In other areas, results were mixed versus plan targets. For transportation machinery, motor
core molds and related mold materials, the largest demand source, were strong, with net sales of ¥2,790mn, a
4.5% increase and ¥50mn more than the target. Iron and steel benefited from special demand for rolls overseas
markets and net sales were ¥2,830mn, ¥180mn more than the plan and an increase of 10.1%). In non-ferrous andmetallic products, grooving rolls for overseas sold briskly, but it still did not reach the plan, with sales of ¥2,340mn,
which was an increase of 3.5%, but ¥40mn short of the plan. Production and commercial machinery sales were
¥2,040mn, ¥50mn below the plan and a decrease of 0.5%, due to stagnant capital investments, despite strong
sales of optical elements for semiconductor electron beam mask writers, mirrorless camera aspherical glass lens,and vehicle applications. Materials for mold parts and tools had net sales of ¥2,290mn, which exceeded the planby ¥250mn, though a decreased of 0.7%, due to strong sales of mold materials for motor cores that exceeded theplan, but other areas stalled.

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07 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.

3-Sep.-2024

6167 Tokyo Stock Exchange Prime Market

https://www.fujidie.co.jp/en/ir

Results trends

Net sdales trends by customer industry area (non -consolidated basis)（¥mn）
18,00016,00014,000Transportation machinery
Materials for mold parts and tools
Electrical and electronic components
Others
1,052

1,095

1,950

2,000

12,000

1,770

1,670

10,000

2,500

2,480

2,550

2,590

8,000

1,257

2,270

1,034
1,430
1,330

2,290

2,100

1,460

2,000

3,080

2,830

2,050

1,710

1,830

1,210

1,079

2,090

2,040

2,110

1,440
2,340

2,150

2,260

2,380

2,480

2,310

2,540

2,290

2,310

2,630

2,570

2,650

2,830

2,060

2,990

1,178

1,195
1,740

2,140

6,000
4,000

Iron and steel
Non-ferrous & metallic products
Production and commercial machinery

3,310

3,400

3,400

2,500

2,810

2,670

2,740

2,790

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

Beginningof FY3/24

FY3/240

Source: Prepared by FISCO from the Company’s results briefing materials

3. Financial condition and management indicators
The Company has continued profitable operations since its founding and maintains a high equity ratio. It also
possesses robust surplus funds and has almost no loans. It sustains a strong financial position.
Consolidated balance sheet and key management indicators(¥mn)
End-FY3/22

End-FY3/23

End-FY3/24

ChangeCurrent assets

15,331

15,72415,024-700

Non-current assets

10,048

10,528

11,114586

Total assets

25,38026,253

26,138-115

Current liabilities

4,383

4,197

3,871

-326

Non-current liabilities

1,692

1,662

1,619

-43

Total liabilities

6,076

5,860

5,491

-369

Net assets

19,303

20,392

20,647255

Current ratio

349.8%

374.6%

388.1%

Equity ratio

76.1%

77.7%

79.0%

(Safety)

Source: Prepared by FISCO from the Company’s financial results

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08 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.

3-Sep.-2024

6167 Tokyo Stock Exchange Prime Market

https://www.fujidie.co.jp/en/ir

Results trends

Trends in net assets and equity ratio（¥mn）

Net assets

Equity ratio (right)

25,00020,000100.0%

70.1%

72.8%

79.4%

76.4%

79.0%

77.7%

76.1%

80.0%

15,00010,00060.0%

18,397

18,74918,96920,647

20,392

19,303

18,840

40.0%

5,000

20.0%

0

0.0%

FY3/18

FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

Source: Prepared by FISCO from the Company’s financial results and results briefing materials

Operating cash flow, free cash flow and capital investments
Cash flow from operating activities（¥mn）

Free cash flow

Capital investments

3,000
2,548
2,500

2,234

2,050

2,009
2,000

1,500

1,483
1,200

1,436
1,237
925

1,000

1,039

1,718

775

695

569

1,637

1,541

321

500

454

394
63

0
-500
FY3/18-302
FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

Source: Prepared by FISCO from the Company’s financial results and results briefing materials

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09 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir■ Outlook
Targeting YoY gains of 7.9% in sales and 26.1% in operating profit
in FY3/25, expects double-digit profit increase on temporary costdecline, sales expansion and sales price revisions, and improved
production efficiency• Outlook for FY3/25
For FY3/25 consolidated results, the Company forecasts net sales of ¥18,000mn, a YoY increase of 7.9%, operating
profit of ¥1,020mn, an increase of 26.1%, ordinary profit of ¥1,150mn, an increase of 30.4%, and profit attributableto owners of parent of ¥830mn, an increase of 17.0%. The Company forecasts lingering impact of high prices forparts and materials and continuation of the lull in battery-related business in 1H before a full-fledged recovery on arebound in automotive part-related molds and development of the Chinese market in 2H. As a result, for FY3/25 1H,
the Company forecasts net sales of ¥8,800mn, a 7.2% increase YoY, and operating profit of ¥470mn, an increase of
6.6%, but a full-scale recovery in 2H, with the FY3/25 2H forecast for net sales of ¥9,200mn, an increase of 8.6%,
and operating profit of ¥550mn, an increase of 49.5%.
The increase and decrease factors behind the forecast increase of ¥211mn in operating income is the significant
effect of ¥1,322mn in increased sales and the reduction of one-off expenses recorded in the previous fiscal year.
The Company expects to secure a double-digit increase to offset various cost pressures.
Projected change in consolidated operating profit (YoY)

Source: The Company’s results briefing materials

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10 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Outlook

The FY3/25 forecasts by major industry categories on a non-consolidated basis is for net sales to increase 11.1%
YoY to ¥3,100mn (up 11.1% YoY) in transportation machinery, its greatest source of demand, on a strong performance by EV-related motor core products and materials. In iron and steel, the Company projects a 2.1% decreaseto ¥2,770mn as recovery in automobile production and advances by dies for steel pipes (plugs) related to gas fielddevelopment largely offsets the impact the end of special demand for rolls in overseas markets. In non-ferrous &metallic products, the outlook is for net sales to decrease, by 1.7%, to ¥2,300mn, due to rebound decline in grooving
rolls for overseas. In production and commercial machinery, the forecast is for an increase of 7.8% to ¥2,200mn,
as semiconductor production equipment continued to expand, and molds for optical elements were applied in
production for molding formation of interchangeable lenses used in mirrorless and other interchangeable lens SLR
cameras, rather than for molding infrared lenses (which transmit infrared rays and identify objects by heat source)
as originally intended. In electrical and electronic components, which dropped steeply in FY3/24, is forecast to
increase 25% to ¥1,800mn on expectations that the slump in EV cylindrical lithium ion batteries has run its course
and a significant recovery in demand is due for rectangular lithium ion batteries and other areas and semiconductor
products. Materials for mold parts and tools is forecast to net sales by 6.1% to ¥2,430mn, with motor core moldmaterials contributing to the expansion.

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11 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Outlook

Outlook for FY3/25 status (non-consolidated basis, net sales) by major industry

Source: The Company’s results briefing materials

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12 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir■ Medium- to long-term growth strategy
Increase operational efficiency, develop new products in growthfields, and promote global expansion
1. Transforming to the company structure to adapt business resilience
The Company formulated Medium-Term Management Plan 2026 under its new president with a central concept of“transforming the company structure to adapt business resilience,” taking into account that it did not reach targets
in the final fiscal year of its previous medium-term management plan due to higher resource prices, Chinese market
stagnation, and delayed recovery in the automotive parts industry. Specifically, it stipulated priority measures ofstrengthening the management foundation, increasing productivity and improving business efficiency, leaping forwardin overseas business that did not deliver anticipated results during the previous medium-term management plan,and solidifying new business. It also wants to be a company that contributes to a zero-carbon and recycling-basedsociety.
Under Medium-Term Management Plan 2026, specific consolidated numerical targets for the final fiscal year of theplan in FY3/27 are net sales of ¥20.0bn, operating profit of ¥2.0bn, ordinary profit margin of 10.5% and ROE of
7.0%. While the second phase of the previous medium-term management plan had targeted ¥20.0bn in net sales,¥2.5bn in operating profit, and 12.5% operating profit margin in FY3/27, the Company reduced the operating profit
target by ¥0.5bn, taking into account the details of FY3/24 performance. Just as the Company lowered its profit
assumption in the second phase of its previous medium-term management plan, it has shown an intention to placeeven greater emphasis on achieving profits than before, even more so than on expanding sales.
The new medium-term management plan shows a cautious approach by the new president and the numericaltargets are seen as minimums, taking into account that the Company failed to achieve goals in the final fiscal yearof its previous medium-term management plan amid worsening earnings in FY3/24. Actually, regarding profits,considering that the factors in not reaching targets were one-time expenses for the Kumamoto Manufacturing Plant
and the unexpected situation with molds for lithium ion batteries, and as the Company is essentially a businesswith high profit margins, its corporate structure is such that if net sales get back on track, it is possible that profit
ratios will improve. Assuming an absence of irregular decreases in net sales in FY3/25, gross profit margin can be
expected to return to the levels of 3/23, and profit expected to increase if net sales can meet their target. A key
point is whether the Company can achieve ¥1,500mn in operating profit in FY3/26 and thereby set a new all-timehigh that exceeds the ¥1,465mn from FY3/18. This level is sufficiently within reach considering such factors as theeffect of new products.

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13 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Medium- to long-term growth strategy

Concept for Medium-Term Management Plan 2026

Source: The Company’s results briefing materials

Medium-Term Management Plan 2026 consolidated numerical targets

Source: The Company’s results briefing materials

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14 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Medium- to long-term growth strategy

The following section reviews the direction of core themes from the medium-term management plan with emphasis
on strategic areas.
2. Contributing to a zero-carbon and recycling-based society(1) Next-generation automobiles
The Company plans to actively develop and launch products that contribute to formation of a zero-carbon
and recycling-based society among its core policies, and it is extremely important to accommodate the auto
industry, which is its largest customer. For this, the Company will focus on rechargeable batteries, motor coresand magnets.
In molds for formation of rechargeable battery cases, demand has been recovering after bottoming out with recent
support from strong HEV performance. While the Company was already pursuing rectangular battery-related
products, it incurred a setback in the cylindrical battery business from the U.S. Inflation Reduction Act. In response,
it intends to ramp up rectangular lithium-ion battery-related activity that utilizes precision mold processing technology. The rectangular lithium-ion battery for vehicle use market is expanding with Prime Planet Energy & Solutions, ajoint venture established by Toyota Motor Corporation <7203> with a 51% stake and Panasonic Holdings <6752>
with a 49% stake as a leader that aims in 2024 to increase output to a pace of roughly 7GWh/year, raising further
expectations of expansion going forward.
The Company is expanding sales of punching molds for motor cores to Japanese motor core manufacturers. There
are many domestic and overseas rivals in this market. While many applications are currently in hybrid vehicles,
the Company launched new material-type VG48 aimed at anticipated growth in EV-related demand. EVs needthinner electromagnetic steel sheets to increase the number of layers to meet requirements for higher output frommotors, and currently, the sheets being used are 0.2mm to 0.3mm. The Company is developing new materials in
anticipation of market trends. At motor core manufacturers, a shift is occurring in the layering method from fixed
dowel lamination to an adhesion format or exterior dowel format. It is also necessary to utilize a larger diameterand make other revisions to handle electromagnetic steel sheets with a high level of hardness, which means thatmold materials must be more wear resistant as impact makes it easy to chip because of substantial brittleness, andrequires high pitch resistance. Adhesion resistance is needed, too, as it can easily stick to the mold. VG48, which
the Company added to its product catalog in August 2022, is a new material that extends product lifespan throughbetter fracture toughness and wear resistance than existing products. It also offers excellent electric dischargemachinability that retains material strength even after electric discharge machining in molds for complicatedproducts. Demand for this material is likely to expand considerably after it obtains manufacturer certifications.
The Company seeks to increase customer options and boost its market share by reinforcing the line-up of
carbide materials for motor core molds. Production expertise for electromagnetic steel sheets has risen recently
at non-Japanese iron and steel manufacturers, too. For example, Toyota has started using electromagnetic steel
sheets from Baosteel Group Corporation and others. The Company intends to strengthen sales of mold materials
to Chinese manufacturers as well.

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15 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Medium- to long-term growth strategy

Regarding magnets for next-generation automobiles, the Company expects ongoing expansion of demand forneodymium magnets because of adoption of permanent magnet synchronous motors that use neodymium
magnets, mainly for automobiles amid the full-fledged expansion of the EV market. The Company supplies powder
compacting molds and molds and mold materials to overseas customers. There has been interest in integrated
molding technology for motor cores and neodymium magnets recently, and adoption of this format is increasing.
By eliminating space between the motor core and neodymium, it is possible to minimize leakage of magnetic
field lines, providing various benefits, including significant reduction of vibration and noise. This is why demand isforecast to expand together with the EV market. The Company expects overall growth of at least 20% annuallyas the spread of EVs accelerates and sales are expected to accelerate, too.
Regarding automated driving in next-generation automobiles, the Company aims to bolster sales in the Chinese
market of hard alloy with high thermal expansion and low specific gravity (TR alloy). This product is expected tobe applied as a mold base material for chalcogenide glass*, a material for far infrared ray lenses, as a moldable
base material was sought that had a higher thermal expansion coefficient than conventional glass and withmolding materials sensitive to temperature changes . Specifically, TR alloy has 8MK-1, which is not attainable withconventional binderless cemented carbide, and approximates the thermal expansion coefficient of glass, which
inhibits glass from sticking upon removal from the mold after formation. The Company expects growing adoptionin LiDAR for advanced driver-assistance systems (ADAS) likely to be used extensively in automated driving. BYD
Auto Co., Ltd., the global leader in EV/PHEV sales volume, installs six LiDAR in its luxury EV HanEVwith three
in the front and three in the rear. In China, level-4 fully automated driving taxis started service in 2023, and it ispreparing to start operations in ordinary vehicles, too. Other countries are conducting real-world tests as well,and this activity is generating expectations for full-fledged expansion of production. TR alloy is likely to be utilized
in land-based detection in addition to its use in vehicles, and the Company has solidified large-diameter productsupport because of its use in items such as molds for surveillance camera infrared lenses. Sales began in 2024
and robust growth in overall demand is expected.
*	Glass that allows far infrared light to pass through so an object’s heat source can be identified. Instead of oxygen, it includes
sulfur, selenium, tellurium, and other chalcogens.

Contributing to a zero-carbon / recycling-based society

Source: The Company’s results briefing materials

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16 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.
6167 Tokyo Stock Exchange Prime Market

3-Sep.-2024
https://www.fujidie.co.jp/en/ir

Medium- to long-term growth strategy(2) Resource savings
At a time when resource savings and reduction of the environmental load are attracting attention, the Company
developed ST60, a tungsten- and cobalt-saving alloy that substantially reduces use of the rare metals tungsten
and cobalt while being lighter than steel and hard and tough like cemented carbide, and listed it in its productcatalog in November 2022. Specifically, ST60 has expansion potential in the rotary tools field (rotary crushers,
hammers) where cemented carbide has been difficult to apply because of its higher specific gravity. As it isforecast to reduce power use by lightening the motor load and raise productivity by increasing revolutions, andits use in kneading machine screws and other applications that require high hardness and durability while being
light were commended, the Company conducted tests with customers and started sales in FY3/24. This alloy
won the Encouragement Award at the 2023 ‘CHO’ MONODZUKURI Innovative Parts and Components Awards
sponsored by the Monozukuri Nihon Conference and the Nikkan Kogyo Shimbun. As a future initiative, theCompany is considering an increase of the line-up to address market needs. ST60 also has the potential to ensure
the Company’s business continuity due to the supply risk for tungsten, cobalt, and other rare metals because of
U.S.-China friction and problems with Russia.
(3) Next-generation energy businessIn the next-generation energy field, the Company develops catalysts for water electrolysis. These catalysts use
metal that is inexpensive and readily available, in contrast to conventional precision-metal catalysts, and they are
expected to be used in hydrogen generation equipment. In parallel, the Company is also developing CO2 reduction
catalysts and rechargeable battery catalysts. Various companies and research institutes are also engaged indevelopment efforts in this field. The Company’s powder metallurgy and high-pressure synthesis technologies
are likely to be key factors.
3. Development of new businessWith a goal of becoming a 100-year corporation, the Company launched a dedicated organization for new businesses in July 2024 and is promoting commercialization of new business seeds. While the Company previously
considered new business opportunities through project teams with the aim of fostering a longer-term growth
foundation, the new organization inherits the existing activities and will build a system to continuously seek new
business seeds and assess commercialization potential. The Company explains that it pursues realization of new
businesses that can provide new business pillars and a shorter business creation cycle, and also actively reviews
acquisitions and business alliances toward the early creation of new businesses.
4. Leaping forward in overseas business
The Company also cited strengthening of overseas business as a priority measure in its previous medium-term
management plan. However, its efforts did not proceed as planned, and the overseas sales ratio of 18.7% in FY3/24
missed the plan’s goal of over 20%. In formulation of the new medium-term management plan, the Company
positions overseas business as a growth driver and sets a goal of at least 25% as the overseas sales ratio in FY3/27.
It aims to expand subsidiary and export sales to increase overseas sales, mainly in Asia. The Company formed theOverseas Business Division in July 2023 to support the responsible director and strengthen overseas business, andin February 2024 opened a sales office in Dongguan, China. The Company intends to relaunch its Indian office, too,and is considering establishment of a site for battery and motor core mold initiatives in the U.S.

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17 18

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Fuji Die Co., Ltd.

3-Sep.-2024

6167 Tokyo Stock Exchange Prime Market

https://www.fujidie.co.jp/en/ir■ Policy on shareholder returns
In FY3/24, maintained a ¥32 annual dividend, including a 75th-year
commemorative dividend of ¥10, changed the dividend standard to
DOE under the new medium-term management plan, and forecastsa ¥40.0 ordinary dividend in FY3/25
The Company has conducted appropriate profit allocation targeting a consolidated dividend payout ratio of 50% as
its shareholder return policy. In FY3/23, it actually paid an annual dividend of ¥32, adding ¥10 based on the 50%
dividend payout ratio target because EPS reached ¥65.19 due to booking extraordinary income from the sale of theformer Osaka Plant, an idle asset, compared to the initially forecast ¥41.41. In FY3/24, it initially forecast a dividendof ¥22 per share, unchanged from FY3/23, as this extraordinary income would not arise in FY3/24, the initial forecast
was for a decrease of ¥10 and an annual dividend of ¥22, based on EPS of ¥44.87. When announcing results for 3Q
FY3/24, though the Company lowered the EPS forecast to ¥33.73, it retained the initially forecast ¥22 dividend fromthe point of view of having a stable dividend. Ultimately, even though EPS was ¥35.72 in FY3/24, the Company paida ¥10 commemorative dividend to mark the 75th anniversary and retained the ordinary dividend at ¥22 to maintaina stable dividend, resulting in an annual dividend of ¥32, the same as FY3/23.
In the new medium-term management plan, the Company changes the dividend standard for its dividend policy
from a 50% dividend payout ratio to DOE (dividend on equity), and adopts a 4.0% DOE goal. Therefore, it intends
to pay a ¥40 ordinary dividend in FY3/25, an increase of ¥8 per share, and when taking into consideration that PRB
is less than 1x, has significantly strengthened shareholder returns.

Dividend per share and dividend payout ratio（¥）

Dividend per share (left)

40.0

93.6%
76.8%

32.0
24.0

Dividend payout ratio (right)
95.7%
89.6%

100.0%
80.0%

55.1%

50.5%

60.0%

49.1%

40.0
16.0

32.0
24.0

24.0

22.0

40.0%

32.0

22.0

8.0

20.0%

0.0

0.0%
FY3/19FY3/20FY3/21

FY3/22

FY3/23

FY3/24

FY3/25 E

Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

18 18

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