Fiscal Year Ending March, 2021
Financial Results
May 14th, 2021
F-TECH Inc.
TSE 1ST section : 7212
https://www.ftech.co.jp
Copyright(c) 2021 F-TECH INC. All Right Reserved1Table of Contents

1 Financial Summary

2 Management Strategy
3 Topics
Copyright(c) 2021 F-TECH INC. All Right Reserved

2

Table of Contents

1 Financial Summary

2 Management Strategy
3 Topics
Copyright(c) 2021 F-TECH INC. All Right Reserved3Consolidated Financial Results Overview (Year on Year)(Unit：Million Yen)FY Mar. 2020
ActualFY Mar. 2021
ActualDifference

218,712100.0%

183,647

100.0%▲35,065▲16.0%

Operating Profit

4,088

1.9%

3,072

1.7%

▲1,016▲24.9%

Ordinary Profit

2,764

1.3%

2,383

1.3%

▲381

▲13.8%

Profit Attributable to
Owners of Parent

328

0.2%

▲1,165▲0.6%▲1,493▲454.8%17.58―▲62.58―▲80.17▲455.9%Sales

Earnings per share (Yen)For the fiscal year ended March 2021, “Subsidy income” of 1.8 billion yen has been recorded under extraordinary income, and “Loss due to
COVID-19” of 2.8 billion yen under extraordinary loss.

FX Impacts

FY Mar. 2020

FY Mar. 2021

Difference

１US$

108.95yen

105.95yen▲3.00yen

１CAN$

81.67yen80.31yen▲1.36yen

1Yuan(RMB)

15.82yen

15.42yen▲0.40yen

Decrease in sales and profit (Decrease in the number of orders due to COVID-19 pandemic)
Copyright(c) 2021 F-TECH INC. All Right Reserved

44

Consolidated Sales (Year on Year)(Unit：Million Yen)

(Unit：%)

Consolidated Sales by Segment
218,712200,000

Japan,
26,126

100,000

N. America,
133,454

0

Sales Share (%)

183,647
Japan,
19,692

N. America,
110,405

Japan,
11.9%

Japan,
10.7%(Japan)▲1.2%

N. America,
61.0%

N. America,
60.1%(N. America)▲0.9%(Asia)
2.1%

Asia,
59,132

Asia,
53,549

Asia,
27.0%

Asia,
29.2%

FY Mar. 2020 Actual

FY Mar, 2021Actual

FY Mar. 2020 Actual

FY Mar. 2021 Actual

Change in Consolidated SalesFY Mar. 2020

FY Mar. 2021

Difference

Difference(%)

FX Impact

Net Difference

Difference(%)

Japan

26,126

19,692▲6,433▲24.6%－▲6,433▲24.6%

N. America

133,454

110,405▲23,049▲17.3%▲2,525▲20,524▲15.4%

Asia

59,13253,549▲5,582▲9.4%▲1,392▲4,191▲7.1%

Consolidated

218,712

183,647▲35,065▲16.0%▲3,917▲31,149▲14.2%

89.3% of consolidated sales are from overseas plants. The sales in Asia increased due toChina’squick
recoveryfrom
COVID-19.
Copyright(c)2021
F-TECH INC.
All Right
Reserved

55Operating Profit by Segment (Year on Year)(Unit：Million Yen)(％)

Operating Profit
FY Mar.
2020

FY Mar.
2021

ActualActualShare

Difference

Difference(%)

FY Mar.
2020

FY Mar.
2021

ActualActualDifference

Japan

▲683

299

982

-

▲16.7%

9.8%

26.5%

N.
America

367▲686▲1,054▲286.7%9.0%▲22.4%▲31.4%

Asia

4,365

3,993

▲372

▲8.5%

106.8%

130.0%

23.2%

Total

4,050

3,606

▲444

▲11.0%

99.1%

117.4%

18.3%

Adjust

37

▲534

▲572

-

0.9%

▲17.4%▲18.3%

Consolidated

4,088

3,072

▲1,016▲24.9%

100.0%

100.0%-

Copyright(c) 2021 F-TECH INC. All Right Reserved

66Operating Performance by Segment (Japan)
Sales
Change (%)

19,692

Change▲24.6%

Change (%)―

FX Impact―

Net Change

982

FY Mar. 2021

Change (%)

―

▲683

Net Change▲6,433

Change (%)▲24.6%FY Mar. 2020

▲5,536

1 Product sales to main customers decrease
2 Machine and Tools sales increase (to group companies)
Technical services income decrease
3 (Royalty, development cost, etc.)

2,439
▲31

4 Domestic subsidiaries sales decrease▲1,227

5 Elimination of Intercompany sales (to group companies)▲2,079Quarterly Change
6,680 4,919

5,545 5,515

FY 2020
FY 2021

2 Machine and Tools sales increase (to group companies)
Technical services income
3 (Royalty, development cost, etc.)

2Q

3Q

38
1,112
156

Total

FY 2020
FY 202162

6,385 4,870
4Q452

4 Cost improvement, SG&A reduction, etc.
Fixed costs incurred due to COVID-19 transferred to
5 extraordinary loss

1Q
1Q

▲776

1 Product sales decrease▲6,433

Total

4,386

FY Mar. 2021
Reason of Change

Reason of change

7,514

299

―

FX Impact

FY Mar. 2020

982

▲6,433

Change26,126（Unit：Million Yen）

Operating Profit

982

Quarterly Change 1,078▲ 495 ▲ 171
2Q▲ 1,012

405

71
▲ 321

3Q

4Q

Decrease in sales and increase in profit (Decreased sales: decrease in orders from main customers, Increased profit: effect ofexpense reduction and increased machine and tool sales)
7
Copyright(c) 2021 F-TECH INC. All Right Reserved

7

Operating Performance by Segment (N. America)
Sales
133,454

FY Mar. 2020

Operating Profit

110,405

FY Mar. 2021

Change▲23,049

Change (%)▲17.3%FX Impact▲2,525

Real Change▲20,524

Change (%)▲15.4%▲1,054

Change367▲286.7%

Change (%)

▲686

31

FX Impact

FY Mar. 2020

FY Mar. 2021

Reason of change

Real Change▲1,086

Change (%)▲295.9%Reason of change

Product sales to main customers decrease (HM)▲15,3072

Product sales to main customers decrease (GM)3

1

（Unit：Million Yen）

▲3,8761

Product sales decrease▲5,517

2

Machine and Tools sales increase

150

Product sales to main customers decrease (Other)

▲914

3

664

4

Machine and Tools sales decrease

1,213

4

Cost improvement, SG&A reduction, etc.
Fixed costs incurred due to COVID-19 transferred to
extraordinary loss

5

FX impact

5

FX impact▲2,52536,14632,846 30,183

32,098 34,873

15,016

1Q

3Q

FY 2020
FY 2021

Quarterly Change

▲ 254

649
4Q

▲1,054

Total

32,362 30,331

FY 2020
FY 20212Q

31▲23,049

Total

1,977

▲ 524

▲ 80

282

346
53

▲ 791

Decrease in sales and profit (Decreased sales: sales increased to new customer despite overall declining, Decreased profit:
turned into profitable in the second half when the sales increased despite the impact of sales decrease)8
Copyright(c) 2021 F-TECH INC. All Right Reserved

8Operating Performance by Segment (Asia)
Sales
59,132

Operating Profit

53,549FY Mar. 2020

FY Mar. 2021

4,365

3,993

(Unit：Million Yen)

Change

▲372

▲9.4%

Change (%)▲8.5%

FX Impact▲1,392

FX Impact▲91

Real Change▲4,191

Real Change▲282

Change (%)▲7.1%

Change (%)▲6.4%

Change▲5,582

Change (%)

FY Mar. 2020

FY Mar. 2021
Reason of change

Reason of change
1(China) Product sales to main customers increase(HM)

4,270

1

Product sales to main customers decrease▲1,7052(China) Product sales to main customers decrease(Other)▲2,8192

Cost improvement / SG&A reduction, etc.

8013(Asia) Product sales to main customers decrease(HM)▲4,102

3▲75

4(Asia) Product sales to main customers decrease(Other)▲1,5404

Machine and Tools sales decrease
Fixed costs incurred due to COVID-19 transferred to
extraordinary loss

5

FX impact▲1,392

5

FX impact▲91▲5,582Total
FY 2020
FY 2021

14,686 16,706

15,278 17,743

5,738
1Q

▲372

Total

Quarterly Change
14,764 13,360

14,403697

FY 2020
FY 2021

Quarterly Change
1,028

899

718

1,978

1,191

1,245 1,291

5
2Q

3Q

4Q

1Q

2Q

3Q

4Q

Decrease in sales and profit (Decreased sales: decrease in orders from main customers, Decreased profit: Impact of sales
decrease)
9
Copyright(c) 2021 F-TECH INC. All Right Reserved

9Changes in Operating Profit by Segments (FY Mar. 2021 Actual)
4,088▲6,319

2,830

▲572

▲60

3,072

2,577

527
(Unit：Million Yen)Japan

N. America
Asia

FY
Mar.
2020

Product
Sales
ImpactMachineand Tools
Sales
ImpactExpensereduction
Rationalization

Transfer toExtraordinary
Due to COVID19

▲683

▲738

452

1,112

156

367

▲3,876

150

664

1,977

4,365

▲1,705

▲75

801

697

Adjustment

37

Consolidated

4,088

FX
ImpactConsolidated
adjustment

FY
Mar.
2021

Difference

299

982

31

▲686

▲1,054

▲91

3,993

▲372

▲534

▲572

3,072

▲1,016▲572▲6,319

527

2,577

2,830

▲60

Copyright(c) 2021 F-TECH INC. All Right Reserved

▲572

10

Table of Contents

１．Financial Summary-Changes from the last forecast-

Copyright(c) 2021 F-TECH INC. All Right Reserved

11Consolidated Financial Results Overview (Difference to the last forecast)（Unit: Million Yen）

FY Mar. 2021
(Forecast)

Sales

Operating Profit

FY Mar. 2021
(Actual)Difference
Due to incomplete eliminationof intercompany transaction,▲4.8%
and timing difference when torecord intercompany sales

193,000

100.0%

183,647

100.0%▲9,353

3,600

1.9%

3,072

1.7%

▲527

▲14.7%FX impact (weaker yen)
▲8.3% FX loss
552(Q3)→264(end of term)

Ordinary Profit

2,600

1.4%

2,383

1.3%

▲216

Profit Attributable to
Owners of Parent

▲900

▲0.5%

▲1,165

▲0.6%

▲265

-

Earnings per share(Yen)▲48.28-▲62.58-▲14.30-1US$Due to timing difference whento record sales（Unit：Yen）

FY Mar. 2021(Forecast)FY Mar. 2021(Actual)

Difference

105.58 yen

105.95 yen

0.37 yen

Decrease in sales and profit (Incomplete elimination of intercompany transaction and timing difference whento record
12
Copyright(c)2021intercompany
F-TECH INC. Allsales)
Right Reserved

Sales Changes by Customer
100.0%

90.0%
80.0%
70.0%

3.8%
3.2%

3.5%
2.9%

3.5%
2.8%
1.6%

10.9%

12.0%

11.4%
75.2%

77.6%

76.4%

2.9%
3.0%
4.7%

1.5%
3.4%
5.6%

12.9%

12.7%

10.9%

72.0%

70.0%

71.9%

3.4%
2.7%
2.7%

60.0%

Others

50.0%
40.0%

FY Mar. 2016

S

Mitsubishi

FY Mar. 2017

NissanFY Mar. 2018

TOYOTAFY Mar. 2019TGM

FY Mar. 2020

HONDA
FY Mar. 2021

HONDA

152,435

151,282

170,089

169,512

153,004

132,123GM

21,34523,68325,78230,25827,71920,051

-

247

3,661

6,443

10,211

10,374

TOYOTA

6,204

5,658

6,428

6,300

6,471

6,178

10.0%
Nissan

7,435

6,985

7,957

7,977

6,275

2,825

Mitsubishi

1,803

2,036

2,648

3,051

2,597

1,541

71

18/3期 1,010

19/3期 2,913

20/3期計画1,686

21/3期実績2,066

7,121

7,979

8,485

8,907

10,7498,488

196,343

197,941

226,060

235,361

218,712

183,647

T

S
Other

30.0%
20.0%

0.0%

16/3期

-

17/3期

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13

13Financial Position
Total Asset（Unit：Million Yen）

Capital Investment

Depreciation

Interest-Bearing Debt

Interest-Bearing Debt Ratio

160,000

50.0%

140,000
40.0%

120,000
100,000

30.0%

80,00020.0%

60,00040,000

10.0%

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

FY 2016
137,980
20,57810,081
58,68642.5%

FY 2017
144,420
14,094
10,33559,12940.9%

FY 2018
150,525
12,435
11,66659,51039.5%

FY 2019
137,010
8,056
11,72046,22033.7%

Copyright(c) 2021 F-TECH INC. All Right Reserved

FY 2020
134,038
12,238
10,89051,34238.3%

FY 2021
136,714
10,01010,032
49,565
36.3%
14

0.0%

14

Status of Dividend（Unit： Yen）

End of
Q1

End of Q2

End ofQ3

End of the
Term

Total

Payout Ratio

FY Mar. 2020 Actual(Last term)-

10 yen-

10 yen20 yen113.7%FY Mar. 2021 Plan
(Current term)

-

0 yen

-

8 yen

8 yen

-

Difference-▲ 10 yen-▲ 2 yen▲ 12 yen-

FY Mar. 2022 Forecast(Next term)

-

TBD

-

TBD

TBD

-

Difference

-

-

-

-

-

Dividend Policy
F.tech’s basic policy regarding the profit distribution is based on the business performance. Along with reinforcing our financial
characteristics, we will review profit situation and future business opportunities from a long-term perspective, and distribute profit backto shareholders. Our payout ratio target is 10% or greater of the “Net profit attributable to parent company shareholders”, and it is paidout twice a year – middle and end of the year. (Year-end dividend is resolved at the shareholders meeting.)

Copyright(c) 2021 F-TECH INC. All Right Reserved

15

15

Table of Contents

1 Financial Summary

2 Management Strategy
3 Topics
Copyright(c) 2021 F-TECH INC. All Right Reserved

16

14th Midterm Business Plan ～Basic Policy～
14th Midterm Business Plan
Company Policy: Let’s exceed out limits!
We will, without compromise, produce the “Best One” for all our customers.
66th term (FY2021)

67th term (FY2022)

68th term (FY2023)

Back to Basics ◇Achieve profit ◇Evolution of the ◇Revival of～Master what you suppose to do～at all facilities

simulation

domestic facilities

Challenge for New ◇Acquire new ◇Challenge in ◇Create new～Challenge to create new value～customers

new regions

business
opportunities

Maximize group
efficiency
Target【Productivity】
・Improving manpower
efficiency【Efficiency】
・Automatedinspection device【Profitability】
・Reducing scrap cost
・Turning FCF in theblack

Our Vision : Aim to become the world’s leading supplier specializing in the area of underbody functions
Copyright(c) 2021 F-TECH INC. All Right Reserved

1714th Midterm Business Plan ～Ｏｕｒ Ｖｉｓｉｏｎ～
Aim to become the world’s leading supplier specializing in the area of
underbody functions
Area of underbody functions …..“3 core areas of Subframe, Suspension, and Pedal”
World’s leading…..”Pursue the essential nature of manufacturing”

We pursue the following 5 items to become world’ leading supplier
1. Garner high acclaim from
customers

4. Establish a network

In all areas of Quality, Cost, Delivery, and Management

Share knowledge with other expert suppliers, and put
new proposals into practice

2. Provide new value

5. Strengthen profitability

Provide one and only value

Make existing business robust, and invest in new growth
opportunities

3. Development of new technologies
Roll out unique technologies born from new ideas and new
approach

Copyright(c) 2021 F-TECH INC. All Right Reserved

18

14th Midterm Business Plan ～Strategy target～＜Back to Basics ～Master what you suppose to do～＞◇ Achieve profit at all facilities◇ Evolution of the simulation◇ Revival of domestic facilities＜Challenge for New ～Challenge to create new value～＞◇ Acquire new customers◇ Challenge in new regions◇ Create new business opportunities
Copyright(c) 2021 F-TECH INC. All Right Reserved

19

Achieving profits at all facilities ～Back to Basics～
FY 2021 Operating profit by segment
Operatingprofit

Japan

299

North
America

▲686

Asia

3,993

Activities in FY2022

Current status
・Turned into black→Machine and tool sales to overseas
facilities have been expanded,
Expenses have been reduced
・Polarized performance→Promoting support improvement
activities at the facilities facing
challenges

・China maintains strong performance→Focusing to other Asian facilities

In FY2021, we promoted business activities withthe primary goal of surviving in COVID-19 disaster

Situation/Activities

North
America・Sales continue to decline in Japan→Machine and tool sales to overseas
facilities and expense reduction continue→Review the structure in Japan・Complete improvement activities
・Start projects for new business
opportunities

Asia

・Address particular issues in each facility

Japan

In FY2022, COVID-19 and semiconductor supply
shortage impact remain, however, we will achieve
profitability at all facilities regardless of changes weare facing

Copyright(c) 2021 F-TECH INC. All Right Reserved20Evolution of the Simulation ～Back to Basics～
Achieve the Non Prototype Development (Design, Analysis only) ⇒ Save Time and Cost

Improve the accuracy of product analysis
performance evaluation
Making a prototype → Improve the accuracyof results in the test implementation process

Achieve the optimal design by simulation using the latest CAE analysis
DesignOptimal Design
・Weight reduction proposals with optimal
specifications
・Achieve overwhelming competitiveness

AnalysisADAMS (CAE Analysis)
・Figure out the impact of each component
on the product・Best balanced product development

Copyright(c) 2021 F-TECH INC. All Right Reserved

21

Revival of domestic facilities ～Back to Basics～
Establish a domestic structure capable of withstanding decrease in production

K社国内生産台数
主要3社国内生産台数
3 majorcustomers’
production volume in
主要3社国内生産台数
7,000

日産

6,000

Japan
■TOYOTA■NISSAN 日産■HONDA
ホンダ トヨタ
ホンダ

トヨタ

日産

Ensure sales

ホンダ

Domestic Facilities

5,000
4,000

3,000
2,000

Countermeasure <Further efficiency improvement and space utilization at plants>
・Evolution of production lines: Single model to multi-modeltoproduction
production
・Simplify logistics: Consolidate shipping areas
decrease・Newly awarded parts: Bring all processes in house0<Outsourcing costs/Inspection costs>
・Outside warehouse: Utilize internal space・Outsourcing: Promote in-house production
・Destructive inspection: Minimize loss

Downward in production volume
Export decreasing ⇒ Potential
further volume reduction<Business reform/Make human resources available>
・Consolidation: Improve the efficiency of administrative
work that each department does, promote centralization
・Human resources: Make human resources available
through business reformation activities, and reassign to⇒ Overseas, New business areas

1,000

Cost reduction2016 2017 2018 2019 2020
15 12
1611
19
10
12 14
1318
14 15
17 18 19 20
11
1317
15
1616 20
17
Year 18 19 20

14
10

SGA
departments••<Developing new customers>
・Acquire new customers and expand further businessBusinessreformCopyright(c) 2021 F-TECH INC. All Right Reserved22Acquiring new core customers ～Challenge for New～TOYOTA

HONDA ・ GM AllianceAgreed on strategic alliance in North America

Chassis parts
Development/Producti
on awarded

Japan

Alliance of Autonomous
driving & EV
We have business with both companies, it will be an
opportunity to expand business

North●Chassis parts Development/Production awarded America●Chassis parts Production awarded●Chassis parts Production awarded

Electric Vehicles
Chassis production has
been awarded by
•
•

Asia
Chassis Development/production awarded（Localization trend）

Top manufacturer in USA
Emerging manufacturer inUSA

GM also made major shift
to EV

EuropeanOEM
Chassis production
awarded in
Canada and Mexico

We have successfully expanded customers and have more business with diversified customers
We will aim at further expansion by ensuring stable mass production and providing reliable quality
Copyright(c) 2021 F-TECH INC. All Right Reserved

23Challenging in new regions ～Challenge for New～
Companyname

VEE GEE Auto Components Private Limited

Investment

342,940,000 INR(Indian Rupee) (Approximately 488 million yen*)

Investment
ratio

VEE GEE INDUSTRIAL ENTERPRISES PVT.LTD.
Ftech Inc

Main
customer

Suzuki Motor Gujarat Pvt. Ltd (SMG)

2 experts
dispatched in April
2021
JV Corporation
established in Gujarat
Supply of product to
SMG began2020 - 2021

Produce high quality
chassis products withhigh efficiency⇒ supply to SMG(400,000pcs/year)

Challenge for the potential
growth in India
74%
26%

Complete capacity
expansion
Expand supply to SMG
Develop new customers

Achieve “Integrated
solution proposals”
from R&D throughReinforce sales activity mass production
and Establish
Develop new market
R&D capabilities
from India

2030

2028
2025

2023
SMG: Suzuki Motor Gujarat

We will begin business with a new partner in India where bigger growth is expected
Copyright(c) 2021 F-TECH INC. All Right Reserved24Challenging in new regions ～Challenge for New～
F&P MFG DE MEXICO, S.A. DE C.V.

Automobile production/Export/Sales in Mexico
1,000 units

Production

4,500

Exports

Sales
3,933 3,919

4,000
3,399 3,466

3,500

3,220

2,558
2,500 2,261
2,000

3,451 3,388
3,040

2,885 2,933

3,000

3,254

2,643

2,759 2,768

2,682

2,356 2,423

2,144

1,860
1,607 1,535
1,354

1,500
1,000

3,811

820

906

988

1,427

Investment objective

Expansion of the production
capacity

Time of investment

In 2019

Investment amount

US$ 20 million

Construction period

Construction started in Oct. 2019and completed in Nov.2020

1,318

1,065 1,137

949

500
0
2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

As a neighboring country of the U.S., production and exports are
steadily increasing.

We are in the preparation for the further production capacity in Mexico,
where the sales to other customers are making more profit.
Copyright(c) 2021 F-TECH INC. All Right Reserved25Creating new business opportunities ～Challenge for New～In the past year, we explored every potential business possibility without constraints

Presentation only

We narrow down the promising project, taking advantage of the experienceand information network we acquired through these activities
Copyright(c) 2021 F-TECH INC. All Right Reserved

26

Objectives
The 14th Mid-term Three-Year Plan
(Unit: Billion Yen)FY Mar.2021
Actual
Sales

183.6

Operating Profit

3.07

Operating Profit ratio

1.7％

FY Mar.2022
Forecast
Not disclosed dueto the impact of
COVID-19 andsemi-conductor
shortage

FY Mar.2023
Plan
215.0
7.5
3.5％

The targets for FY 2021 and FY2022 were not able to be established due tothe impact of COVID-19 and semi-conductor shortage
Copyright(c) 2021 F-TECH INC. All Right Reserved27

Table of Contents

1 Financial Summary

2 Management Strategy
3 Topics
Copyright(c) 2021 F-TECH INC. All Right Reserved28

New Model Activities ～FY2021～
HONDA

GM

China

NISSAN※Excerpted

CR-V
CIVIC

UR-V
CRIDERHEV

XR-V base
EV

CITY

K226
BUICK(HEV)

FIT

Note/RVR

North America
TLX

Japan
FIT

Asia
CR-V HEVACCORDIn FY 2021, we achieved stable start ups of a number of new models and started mass
production
Copyright(c) 2021 F-TECH INC. All Right Reserved

29Initiatives for Sustainable Growth ～CSR/ESG Overview～Environmental

・Reduction of CO2 emissions
・Environmental conservation of air, water,soil, etc.
・Saving resources and reduction ofwater and waste
・Management of chemical substances
・Development of products withenvironmental consideration
・Preservation of biodiversity

Social・Creating comfortable work environment
・Quality initiatives
・Relations with shareholders, investors
and society

Governance

Topics and Concerns

・Evolution of corporate governance・Global expansion of CSR activity
・Global expansion of risk management

Our Approach

Ｇｏａｌ【New global environmental target for 2030】
・CO2 emission: ▲ 18％ improvement
・Water consumption: ▲ 14％ improvement
・Waste discharge: ▲ 13％ improvement(Base year: FY2018, Indicator: Sales)
・Initiatives on Diversity and Work-Life Balance
・Implementation of comprehensive evaluation
regarding quality on each product・Development of IR and disclosure appropriately andin a timely manner
・Reinforce CG preparation and execution corresponding
to CG codes
・Make CSR action guidelines well known globally andfacilitate PDCA
・Continue to improve BCP, increase IT security

We are proactively addressing the issues related to environment, society, and corporate governance
Copyright(c) 2021 F-TECH INC. All Right Reserved30Initiatives for Sustainable Growth ～Corporate Governance～
Revision of the corporate governance code
78 Principles+5 Principles

83 items

Newly established 5 principles

Supplementary
2-4-1

Ensure the diversity of core human resources

Supplementary
3-1-3Disclose the initiative of sustainability (P)Supplementary
4-2-2

Establish basic sustainability policies
Effective supervision by Board of Directors

Supplementary
4-11-1

Independent outside directors: including
those who have management experience

Supplementary
5-2-1

Formulation and disclosure of management
strategy should include business portfolio
policies

Principle

12 items revised

Major revisionPrinciple

・The exercise of voting right platform (P)・Addressing issues relating to sustainability (P)・Disclosure of the necessary information in English (P)・Supervision on the risk management system of theentire group・Independent outside directors: one-third or more, ormore than half (P)・Establishment of the advisory board(Outside director: more than half) (P)・Skill matrix of directors
・”Diversity” including work experience and age
・Change of relationship with internal auditing department
・Meeting with outside directors and shareholders*Text in blue indicates requirements for the prime market

F-tech is preparing for the transition to the prime market
Copyright(c) 2021 F-TECH INC. All Right Reserved

31Initiatives for Sustainable Growth～Quality and Delivery～

Initiatives for quality and delivery
Received Quality Excellence Award

Quality

F&P MFG DE MEXICO, S.A. DE
C.V.

◆Awarded by General Motors de Mexico
S. de R.L. de C.V

Received Supplier Effort Award

DeliveryF-Tech Wuhan Inc.

◆Awarded by SAIC General Motors
Corp. Ltd.

Received Quality Partnership Award
F-Tech Zhongshan Inc.

◆Awarded by GAC Toyota MotorCo., Ltd.

Received Excellence Supplier Award 32
F-Tech Zhongshan Inc.

◆Awarded by Guangqi Honda
Automobile Co., Ltd.

Copyright(c) 2021 F-TECH INC. All Right Reserved

32Initiatives for Sustainable Growth ～Manufacturing technologies and Efficiencies～

Initiatives for manufacturing technologies and efficiencies
33

Kuki plant

Kameyama plant
Copyright(c) 2021 F-TECH INC. All Right Reserved

F-Tech Wuhan Inc.
33

Initiatives for Sustainable Growth～Initiatives for social contribution～
Social contribution

Social contribution【F-tech made mask donation activity】【F-tech’s reforestation program】* Photograph of 2019 event

Saitama prefectural office(8,000 masks)

Kuki city office(10,000 masks)

Total 33,000 masks were donated(Letter of application)
From Mie prefecture andKameyama city

From HONDA

Contract signed with Saitama prefecture forforest development
Second period of agreement (2020～2024)

We will continue to actively engage in activities for social contribution
Copyright(c) 2021 F-TECH INC. All Right Reserved

34

Initiatives for Sustainable Growth ～Work Style Reform～
Work Style Reform
General issues

Our initiatives

Reduce long working
hours

Adopt flexible work style

Put diverse and flexible
work style into practice【Various awards】
Received “Work-life balancepromotion award” from Kameyama city

・Reduce overtime
・Balance work and life

Ensure fair compensation
5% reduction of SGA
package for all types of
expenses
employment
Suddenly became widely used due to COVID-19

Flextime

WEB meeting

Remote work

Set working hours
flexibly with the
exception of core
working hours【Evaluation items】 *Excerpted
 How many paid time offs wereused (use rate)
How many associates used childcare leaves / nursing leave(userate)
 Activities to reduce long working
hours
 Activities to create work
environment where both men andwomen can comfortably work, etc.

Received “Good practice award” as a company
who promotes work style reform in Mie

No business trip
Work fromhome

We will continue to proactively promote work style reform.
Copyright(c) 2021 F-TECH INC. All Right Reserved

35
35

Shareholder benefit Program
QUO cards distribution rules have been revised
BeforeAfter

Reference date:
March 31st

Effective for shareholders as of March 31st, 2021

Gift forshareholders:
Uniform
amount of
1,000 yen

Benefit for shareholders changed
depending on the number of shareheld and holding period

Number ofshares held:
100 or more

Less than 1year

1 year or
more andless than 3years

3 years ormore andless than 5years

5 years or
more

100 or more andless than 300
shares01,000 yen

1,000 yen

1,000 yen

300 or more andless than 500
shares01,000 yen

2,000 yen

2,000 yen

500 or more

01,000 yen

2,000 yen

3,000 yen

Copyright(c) 2021 F-TECH INC. All Right Reserved36Thank you for your attention!

The future outlook and earnings forecasts in this document are made based on the information available at the
moment, and they include potential risks and uncertainties.
As a result, please bear in mind that actual business performance may substantially differ from the stated futureforecasts due to changes in various factors.

For inquiries on IR information, please contact:
F-TECH INC. Management Planning Division
General Affairs Department/Finance and Accounting Department

TEL

0480-85-5211

Mailwebmaster@ftech.co.jp

Copyright(c) 2021 F-TECH INC. All Right Reserved

Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix～Consolidated Balance Sheet (FY Mar 2021 results)～(Unit：Million Yen)FY Mar 2020 FY Mar 2021
ActualChanges

FY Mar 2020 FY Mar 2021

ActualActualChanges

ActualCash and Deposits

8,879

3,708

▲ 5,171

Notes and AP

17,427

19,772

2,345

Notes and AR

27,95531,578

3,623

Short-term loans

20,39520,872477

Inventories

19,093

19,642

549

Current portion of Long-term loan

9,740

9,884

144

Others

3,027

2,744

▲ 283

Others

7,849

8,872

1,023

Current Assets

58,956

57,673▲ 1,283

Current Liabilities

55,412

59,401

3,989

66,71470,012

3,298

Long-term loan

19,146

16,943▲ 2,203

363

320

▲ 43

Others

5,186

5,337

151

8,004

8,708

704

24,33322,280▲ 2,053

Non-current Assets

75,081

79,041

3,960

79,745

81,682

1,937

Total Assets

134,038

136,714

2,676

41,91440,019▲ 1,895

Accumulated Other Comprehensive Income▲ 1,778

286

2,064

14,156

14,726570

Total Net Assets

54,29255,032740

Total Liabilities and Net Assets

134,038

136,714

2,676

Property,plant and equipment
Intangible assets
Investment and others

Non-current Liabilities
Total Liabilities
Total Shareholders' Equity

Non-controlling Interests
Interst-bearing debt

51,342

49,565▲ 1,777

Interest-bearing debt ratio

38.3%

36.3%

-2.0%

Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix～Consolidated cash flow statement (FY Mar 2021 Results)～(Unit：Million Yen)FY Mar 2020

FY Mar 2021

ActualActualChanges

Operating ＣＦ

15,000Investment ＣＦ

10,539

9,956

10,000Cash flow from operating activities

10,539

9,956

▲ 583

Cash flow from investment activities▲ 11,961▲ 10,726

1,235

3,345

▲ 4,363▲ 7,708

Cash flow from financial activities

5,000

0
FY Mar 2020

Translation adjustments associated with
Cash and cash equivalents▲ 236

Net change of Cash and cash equivqlents

1,688▲ 5,170▲ 6,858

Beginning balance of Cash and cash
equivalents

7,191

8,879

1,688

Ending balance of Cash and cash
equivalents

▲ 37

199
▲ 5,000

8,879

3,708

▲ 5,171

Free ＣＦ▲ 1,422FY Mar 2021

▲ 770

▲ 10,000▲ 15,000

Copyright(c) 2021 F-TECH INC. All Right Reserved▲ 11,961▲ 10,726

Appendix ～Corporate Overview～
Company Name

F-TECH INC.

Market Segment

The first section of the Tokyo Stock
Exchange （7212）

Capital6.79 Billion JPY

President and CEO

Yuichi Fukuda

Consolidated Sales

183.6 Billion JPY (March 2021)

Number of
Employees

Group total 9,400 (F-tech only: 962)

Established

July 1st, 1947

Address

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

Honda, General Motors, Nissan, Toyota, etc.

Main Products

Underbody for automobile - suspension arm, subframe, axle beam, pedal
control, etc.

*F-tech only does not include subsidiaries and expats atoverseas facilities

As of March 31, 2021

Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～F-tech’s History～
Establishment（1947‐1964）

4 wheel business（1965‐1987）

Business expansion（1988‐1999）

1987

Global expansion（2000‐ current）
2018
F-TACHAUTOMOBILECOMPONENTSPRIVATE LIMITED
established

2014
1999
R&D NA Europe
Daihatsu business starts
1997
2013
1964
Branch establishedF&P Mfg (Canada)
Dyna-Mig operation begins
PT.F.TECH INDNESIA
Renamed tooperation
begins1996
1978
2012 established
Fukuda Press
Listed on over-the-counter market
F&P MFG.DE MEXICO established
Kogyo
1995
2011
Nissan Shatai business starts
F.tech R&D (Guangzhou) INC established.
1959
1994
2008
HQs transferred to Kuki
Honda business starts
1967
Ftech R&D Philippines established
FUTIAN MOULD TECHNOLOGY(YANTAI) CO., LTD established2006
Ftech Philippine operating begins
Motorcycle parts
F-TECH MFG（THAILAND) operation begins
1993
Kameyama
plant
mass
production
beginsproduction begins
Listed on the first section of the Tokyo Stock1965
2004Exchange
1947
F-tech WUHAN Inc. operation begins
Fukuda Seisakusho
2003
Established
R&D North America establishedF&P America operation begins
metal toy production begins
2002
4 wheel1991
F-tech Zhongshan Inc operation begins.
parts production begins
Mitsubishi, Suzuki business starts
2001
1989
TOYOTA North America business starts
General Motors business starts
2000 Listed on the second section of the Tokyo Stock Exchange
Nissan Motors business starts
Renamed to F-tech
F&P Georgia operation begins

Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～Vehicle Components～

Suspension Parts

Control parts
RR

FR

MountedComponents

Module Assy

Our products are critical safety auto parts which perform fundamental functions, “Drive”,“Turn” and “Stop”. We aim at the optimal specifications considering the higher operation
stability, riding comfort, and safety at the time of the collision.
Copyright(c) 2021 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 tosupply products that own competitiveness, even in short time frame.
Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～F-tech Group Companies in Japan～【Facilities】【Group Companies】【Affiliated Companies】

Head Office・Kuki Plant
Kameyama Plant
Haga Technical Center
Equipment Center

Fukuda Engineering Co., Ltd.
Kyushu F.tech. Inc.
Reterra Inc.

Johnan Manufacturing Inc.
Johnan-Kyushu Manufacturing Inc.

JohnanManufacturing Inc.

Reterra Inc.
(Chichibu)

Johnan Kyushu
Manufacturing Inc.
Haga Technical Center

Equipment Center (Kazo)

Kyushu F.tech Inc.

Head Office・Kuki Plant

Kameyama
Plant
Copyright(c) 2021 F-TECH INC. All Right Reserved

Fukuda Engineering Co., Ltd(Kazo)

Appendix ～F-tech Group Overseas Companies～
F.tech Inc. Office UK
F.tech R&D North America Inc.
European Branch
F-Tech WUHAN Inc.
F-Tech Zhongshan
Inc.
F-TECH AUTOMOBILECOMPONENTS Pvt.Ltd.

F-TECH MFG.
(THAILAND)LTD.

Dyna-Mig, A division of
YANTAI FUYAN MOULD F&P Mfg.,Inc.
CO.,LTDF&P AMERICA MFG.,INC.
F&P Gerorgia, A division of
F&P America Mfg.,Inc.
F.techR&D(Guangzhou)inc.
F.TECH PHILIPPINES, MFG.,INC.
F.tech R&D Philippines Inc.

PT.F.TECHINDONESIAF&P MFG.,INC.
F.TECH R&D
NORTH AMERICA
INC.
Michigan/
R&D NA Office

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

Production plants

R&D,Sales facilities

N. America （6）China （2）Asia （3）

N. America （2） China （2）Europe （2）Asia （2）F-tech has 11 production plants and 8 R&D, Sales facilities in 10 countries.
Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix ～Affiliates and Alliances～
JOHNAN UK Ltd.

Gestanp Tallent Ltd.

Johnan Wuhan Inc.

Shanghai Huizhong

JOHNAN AMERICA INC.
YPS Ltd.
PROGRESSIVE TOOLS &COMPONENTS(P) Ltd.

SMC Co.,Ltd.
CHEN IEU INDUSTRY CO.,LTD.
JOHNAN F.TECH(THAILAND)LTD.
Benteler Componentes
Automotivos Ltda.

VEEGEE Industrial
Enterprises PVT. LTD

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

COSMA DO BRAZILERECT ENGINEERING
PT.JFDPRESSWORKS SDN.BHD. INDONESIAGESTAMP BRAZIL
Affiliates

Alliances

N. America （2） China（1）Asia （3）Europe （1）S. America （3） China （1）Asia （4）Europe （2）We have established optimal business partnerships in 7 countries and 1 region in order to supply our
products globally
Copyright(c) 2021 F-TECH INC. All Right Reserved

Appendix Technological Alliance in India

Company name

Established
Number of
employees

VEEGEE INDUSTRIAL ENTERPRISES Pvt. Ltd.
In 1990
Approx. 1,400

Main products

Stamping, Sub-assembly, Tube/Pipe Welding, etc

Main customers

Honda, Suzuki, General Motors, Tata Motors, Autoliv,
Schneider,etc

Business lineup

Manufacture and Sales of Auto Parts（Body parts, Pedal parts, Chassis parts）
Copyright(c) 2021 F-TECH INC. All Right Reserved