FY2020 Financial Results
Tsutomu Hiranaka, President & COO
Yorozu Corporation
This is an internal English translation of the YOROZU FY2020 Financial Report issued in the Japanese language and isprovided solely for the convenience of English speaking readers. In case of discrepancy the Japanese version prevails.

Contents
Ⅰ. FY2020 Results
Ⅱ. FY2021 Forecast

Ⅲ. New Mid-Term Business Plan (YSP2023)
Ⅳ. Shareholder Return(Explained in the New Mid-Term Business Plan)© YOROZU CORPORATION. 2021 All Rights Reserved.

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Ⅰ. FY2020 Results
Ⅱ. FY2021 Forecast
Ⅲ. New Mid-Term Business Plan (YSP2023)
Ⅳ. Shareholder Return(Explained in the New Mid-Term Business Plan)

2© YOROZU CORPORATION. 2021 All Rights Reserved.

FY2020 Consolidated Financial Summary
Million yen

1H FY2020

2H FY2020

FY2020 Full YearSales

43,93074,933

118,863

Operating Income- 4,160

4,537

377

Operating Income
Ratio- 9.5％

6.1%

0.3%

Factors that pushed up 2H results◆Effect of fixed costs reduction through swift optimization of production
capacity to align with production volume, in addition to profit increase
as a result of production recovery in the 2 nd half of FY2020◆Effect of cost reduction through our hard efforts in Emergency
Profit Kaizen activities, particularly “Won’t waste, won’t buy,” that we
had been working on since the 2 nd half of FY2019◆Rapid recovery of production at China sites contributed to the upturn© YOROZU CORPORATION. 2021 All Rights Reserved.

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FY2020 Consolidated Financial Summary(year-on-year)
Million yen

FY2019FY2020

FY2020Year-on-Year

Latestforecast*2

Againstlatestforecast

157,680

118,863- 24.6%

118,000+0.7％

Operating Income

2,206

377

- 82.9%200+88.6％

Ordinary Income

770

1,449

+88.1%

1,300+11.5％- 12,933- 6,195ー- 8,000

ーSales

Net Income *1*1 Net income attributable to parent company shareholders*2 Estimated figures as of March 25, 2021

FY2019A

FY2020B

Difference

Net Income per Share- 544.05 yen- 259.07 yen

284.98 yenーExchange Rate Applied

109.03 yen/$106.76 yen/$- 2.27 yen/$- 2.1%

B-A

Percentagechange Sales: Decline caused by production reduction on a global scale due to COVID-19 outbreak Operating income: While showing decline, profits increased due to recovery in production in the
2nd half, and profits were secured through fixed costs reduction efforts
 Ordinary income: Profit margin expanded thanks to exchange gain and employment
adjustment subsidies
 Net income: Loss from impairment accounting of tangible fixed assets in the U.S. and Thailand,and corporate tax burden due to reversal of deferred tax assets
4© YOROZU CORPORATION. 2021 All Rights Reserved.

Consolidated Sales by Customer（FY2019 vs. FY2020)
Million yen

Million yen

180,000

Customer

FY2019(%)

FY2020(%)

Nissan Gr *104,453

66.2%

75,994

63.9%

Honda Gr24,935

15.8%

20,07016.9%

Toyota Gr

8,185

5.2%

7,191

6.0%

Isuzu

4,917

3.1%

4,188

3.5%

Mazda

4,705

3.0%

2,855

2.4%

Kubota-4,865（-19.5％）

2,259

1.4%

2,027

1.7%

2,596

1.6%

1,576

1.3%

-28,459 Daimler（-27.2％）

667

0.4%

1,539

1.3%

Suzuki

1,851

1.2%

1,068

0.9%

Others

3,112

2.1%

2,355

2.1%

157,680
160,000

140,000

120,000

Toyota118,863-994（-12.1％）

Honda
Toyota100,000

Honda

VW

80,00060,000

NissanNissan40,000Total
20,000157,680 100.0%

118,863 100.0%* Includes sales to Renault and Mitsubishi

0
FY2019actual2019年度実績

FY2020 actual
2020年度実績© YOROZU CORPORATION. 2021 All Rights Reserved.

 Significant decline in sales due to the global spread of COVID-19
 Percentage of sales to Nissan decreased as a result of sales
increase to Honda and Toyota

53Analysis of Impact on Consolidated Operating Income(FY2019 vs. FY2020)

Million yen

10,000Sales
decrease

8,000

192

966
6,000

COVID-19

related
1,493 extraordinary

Depreciation
cost

4,000

loss

2,769

2,000

2,206
0

171
Consolidation

Exchange adjustment
rate effect－6,968
Dies andequipment

Cost-saving
efforts

FY2019 results

－452

377

FY2020 results

Operating income (－1,829）

Despite loss due to the enormous impact of COVID-19 on the sales, we havemade untiring efforts to save costs and managed to secure profits
6© YOROZU CORPORATION. 2021 All Rights Reserved.

Before Consolidation Adjustment
FY2019 vs. FY2020

Sales and Operating Income by Region◆SalesMillion yen

100,000
50,000Asia-10,179-20.4％-22,742-33.7％-8,323-15.8％

67,571FY19◆Operating Income
5,000

Americas49,9770Million yen

Japan

FY20

-619
-35.3％

1,755

44,82939,798

FY19

FY20

-602
-31.7％

52,563FY19

44,240FY20-779-35.6％
2,186

1,136

Changes% of change

1,407

0
-5,000-1,900
FY19

FY20

FY19

-2,502
FY20

FY19

FY20

Sales and profits declined from the previous year level in all segments due to COVID-19 impact
 Japan: Despite drop in parts sales and royalty income, our cost-saving efforts helped restore profits The Americas: Massive production reduction due to long-term shutdown in the 1st half led to net loss
despite making recovery in the 2 nd half
 Asia: Recovery in the 2 nd half helped bring the bottom line back in black© YOROZU CORPORATION. 2021 All Rights Reserved.

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Financial Standing for the year ended March 31, 2021
(Million Yen)

Year on Year (B-A)

Mar. 31, 2020 A

Mar. 31, 2021 B

59,60853,383-6,225-10.4％

42.7％

39.6%

--

--

Net Worth
Equity Ratio
D/E Ratio

Interest-bearing Debt
Net D/E Ratio

Net Interest-bearing Debt

0.68

40,3890.84

44,769

4,380

10.8%

0.36

21,3700.29

15,509-5,861-27.4%

134,723-4,977-3.6%

Total Asset(Million Yen)

139,700
FY2019 A(Full Term)

FY2020 B(Full Term)

Year on Year (B-A)

Cash Flow fromOperating Activities

10,824

13,029

2,205

20.5%

Cash Flow from
Investing Activities-9,584-6,8592,725--

Cash Flow from
Financing Activities-7,7183,775

11,493--The net interest-bearing debt and the net D/E ratio decreased while cash on hand was secured.
FCF was positive due to suppressed capital investment during the covid-19 pandemic.
8© YOROZU CORPORATION. 2021 All Rights Reserved.

(Reference) Consolidated Balance Sheet Summary
for the year ended March 31, 2021
Cash & bank deposit

Million yen
Current Assets
Fixed Assets

Mar. 31,2020 A

58,386

Mar. 31,2021 B

Difference
B-A

63,721+5,33581,31371,001-10,312

139,700

134,723-4,977

Current Liabilities

37,55039,331+1,781

Fixed Liabilities

27,59829,653+2,055

Total Assets

Total Liabilities

65,14968,984+3,835

Shareholders’ Equity

67,677

61,295-6,382Other Accumulated
Comprehensive Income-8,068-7,912+156

Non-controlling
Interest, etc.

14,941

12,355-2,586

Total Net Assets

74,55065,738-8,812

Total Liabilities and Net
Assets139,700

134,723-4,977© YOROZU CORPORATION. 2021 All Rights Reserved.

+10,240+247-3,639-1,513

Notes & accounts receivable

Inventories
Other current assets
Tangible fixed assets
Investment securities

Deferred tax assets-11,383+2,241-1,381

Notes and accounts payable +1,372
Electronically recorded obligations -852

Short term debts-2,936Long term debts due within 1 year

Accrued expenses＋5,185-1,124

Long term debts
Lease debts+2,740-648

Net income (loss)
Dividend payment-6,195-309

Other securities
Valuation difference +1,389
Foreign currency translation
adjustment-1,18095

Ⅰ. FY2020 Results
Ⅱ. FY2021 Forecast
Ⅲ. New Mid-Term Business Plan (YSP2023)
Ⅳ. Shareholder Return(Explained in the New Mid-Term Business Plan)

10© YOROZU CORPORATION. 2021 All Rights Reserved.

Consolidated Financial Forecast Summary for FY2021
Million yen

FY2020
Actual
A

Sales
Ratio

FY2021
Forecast
B

130,000 100.0%

118,863100.0％

Operating Income

377

0.3％

3,900

Ordinary Income

1,449

1.2％

3,300

Net Income*1-6,195

ー

1,800

Sales

*1

FY2020 ActualA
Net Income per Share-259.07 yen

Exchange Rate Applied toConsolidated Statements

106.76 yen/$

Sales
Ratio

Difference

B-A

% of
Change+11,137

+9.4%

3.0%

+3,523+934.1%2.5%+1,851+127.7%1.4%＋7,995ーNet income attributable to the parent’s shareholders

FY2021 Forecast
B

Difference

75.19 yen＋334.26 yenー105.00 yen/$ -1.76 yen/$

-1.6%

B-A

% of
Change Sales are expected to increase supported by the market recovery while
semiconductor shortage impact is unforeseeable Operating income will soar approximately 10 times year on year, owing
to all segments’ profit rises© YOROZU CORPORATION. 2021 All Rights Reserved.

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Consolidated Sales by Customer（FY20 Results vs. FY21 Forecast）
Million yen

Million yen

Customer

FY20

(%)

FY21

(%)

75,99463.9%

80,392

61.8%

Honda Gr

20,07016.9%

20,512

15.8%

Toyota Gr

160,000

Nissan Gr

130,000

140,000

118,863
120,000

Toyota100,000

7,191

6.0%

8,483

6.5%

+1,292(+18.0%) Isuzu
Toyota

4,188

3.5%

5,664

4.4%

Mazda

2,855

2.4%

3,615

2.8%

Kubota

2,027

1.7%

2,561

2.0%

Daimler

1,539

1.3%

2,238

1.7%

1,576

1.3%

1,813

1.4%

Suzuki

1,068

0.9%

1,353

1.0%

Others

2,355

2.1%

3,369

2.6%

+442

Honda （+2.2％）

Honda

*

80,000+4,398VW（+5.8％）

60,000

Nissan40,000

Nissan20,000118,863 100.0%

Total

130,000 100.0%* Includes sales to Renault
0

FY20 actual

 Sales from Honda, Toyota and all other customers
have been increasing
 Nissan still contributes the majority but thecomposition ratio falls from FY20

FY21 actual© YOROZU CORPORATION. 2021 All Rights Reserved.

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Analysis of Impact on Consolidated Operating Income(FY2020 Results vs. FY2021 Forecast)Million yen
10,0008,000
Consolidation
Adjustment

6,000

1,253
4,000

1,732

2,000

2,032
377

0

201

Depreciation

Cost-saving
efforts-966

Transfer ofextraordinary
loss (COVID-19
related)Exchange
Dies andequipment rate effect

-714

-15

3,900

Sales
increase

FY2020 results

Operating income (＋3,523)

FY2021 forecast

A significant rise in profit is projected due to sales recovery, streamlining
effects, and reduced fixed costs that includes depreciation© YOROZU CORPORATION. 2021 All Rights Reserved.

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Before Consolidation Adjustment

Sales and Operating Income by Region FY20 Results vs. FY21 Forecast◆SalesJapan

Americas

Asia

Million yen+3,433+8.6％+3,169+7.1％+2,657+6.0％

100,000
50,000Changes% of Change

39,79843,231

44,82947,99844,24046,897

FY20

FY21

FY20

FY21

FY20

FY21

0
◆Operating Income+618+54.4％

Million yen

5,000
1,136

＋2,604
--

+49
+3.5％

1,754
102

0

1,407

1,456

FY20

FY21

-2,502-5,000

FY20

FY21

FY20

FY21

Increase in both income and sales across all segments
Japan: Expects a profit increase owing to royalty and domestic sites' recovery
The Americas: Aims to make a net profit from US recovery and reduced fixed costs
Asia: Expects a small but certain profit despite of new model startup costs in China
14© YOROZU CORPORATION. 2021 All Rights Reserved.

Capital Investment and Depreciation
Capital Investment by Region

Depreciation by Region

Million yen
25,00020,000Japan

Americas

Asia

Japan

AmericasAsia

20,013

15,451
15,00011,915

11,216

12,075

12,522
10,246

9,270

10,000

9,644

7,219
5,000

0
FY17

FY18

FY19

© YOROZU CORPORATION. 2021 All Rights Reserved.

FY20

FY21

FY17

FY18

FY19

FY20

FY21
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Ⅰ. FY2020 Results
Ⅱ. FY2021 Forecast
Ⅲ. New Mid-Term Business Plan (YSP2023)
Ⅳ. Shareholder Return(Explained in the New Mid-Term Business Plan)© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan

16

Yorozu Sustainability Plan 2023

Ⅲ. New Mid-Term Business Plan (YSP2023)

 Corporate Philosophy and Vision
 Mid-Term Business Plan (YSP2020) –review
Yorozu Spiral-up Plan 2020

 New Mid-Term Business Plan(YSP2023)
Yorozu Sustainability Plan 2023

© YOROZU CORPORATION. 2021 All Rights Reserved.

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Corporate Philosophy and VisionCorporate Philosophy
Our Purpose

Our primary mission is to contribute to society by continually striving
to deliver technological innovation and create products that are beneficial
to people.

Management StanceOur basic business creed is to conduct reliable management.

Behavioral Guidelines

1. Work is the foundation of life.
2. Trust is the basis of work.
3. Creativity in thought and action is the key to human progress.
4. Safety, quality and productivity are fundamental to corporate
activities.
5. Risky endeavors are to be avoided while genuine endeavors are to beembraced.

Corporate Vision
With the one and only technologies and developmental capabilities insuspensions, we deliver solutions to customers’ needs and aim tobecome a 100-year sustainable and evolving company.
© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan

18

Yorozu Sustainability Plan 2023

Ⅲ. New Mid-Term Business Plan (YSP2023)

 Corporate Philosophy and Vision
 Mid-Term Business Plan (YSP2020) –review
Yorozu Spiral-up Plan 2020

 New Mid-Term Business Plan(YSP2023)
Yorozu Sustainability Plan 2023

© YOROZU CORPORATION. 2021 All Rights Reserved.

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YSP2020 review

Consolidated Sales/Operating Income Ratio
Consolidated sales

連結売上高(billion yen) （億円）
171.5
1,715

169.1
1,691

Operating income
ratio (%)
（％）
営業利益率

1,800
180.0
1,576
157.6
1,188
118.8

3.5

3.1

5.0

1.4
0.3

2017
actual2017実績

2018 actual
2018実績

2019
actual2019実績

2020
actual2020実績

YSP2020目標
YSP2020 target
20© YOROZU CORPORATION. 2021 All Rights Reserved.

YSP2020 review

Mid-Term Business Plan (YSP2020) – Key Initiatives
Key initiatives to strengthen profitability and lead to future growth(1) Enhance profitability• Strengthen free cash flow
management(2) Improve product competitiveness anddevelopment capabilities(3) Enhance corporate
capabilities• Human resources
development• Innovate monozukuri
operation• Improve competitiveness of
suspension parts• Approach new products utilizing
our unique technologies• Engage in proactive sales
expansion in 3 axes (customers,
products, regions) Strengthen project-wise
profit and costmanagement

 Use high tensile strength
materials in mass production to
reduce weight

Eruboshi certification

2021 Certified Health &Productivity Management
Outstanding Organization

 Reduce capital investment

 Strengthen sales channels to
Toyota and MitsubishiProject Control Dept.,
Research & Development
Dept., Production Equipment
Sales Dept. (new departments)

Addition of outside directors



Release of Integrated Report• Strengthen project revenue
management

Tack welding and complete
final welding method© YOROZU CORPORATION．2021 All Rights Reserved.

• Organization review• ESG management

21

11New Mid-Term Business Plan

Yorozu Sustainability Plan 2023

Ⅲ. New Mid-Term Business Plan (YSP2023)

 Corporate Philosophy and Vision
 Mid-Term Business Plan (YSP2020) –review
Yorozu Spiral-up Plan 2020

 New Mid-Term Business Plan(YSP2023)
Yorozu Sustainability Plan 2023

22

© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan Yorozu Sustainability Plan 2023
Consolidated Performance Goals (FY2023)
Sales
150.0 billion yen

Operating Income
Ratio 5.0%

(FY2020 actual 118.8 B yen)

(FY2020 actual 0.3%)

ROE 8.0%(FY2020 actual –11.0%)

Management Policy
Engage in sound management that is resilient to changes(1) ESG Management(2) Stable Profit(3) New Technologies/Methods

Medium- to long-term sustainablegrowthPromotion of DX (digital transformation) aimed
at changing the corporate culture• Shift to optimum production
capacity• Develop products with high added
value through weight reduction• Recreate a strong gemba• Propose products for EVs• Strengthen cash flow
management• Engage in proactive sales
expansion in 3 axes (customers,
products, regions)• Ｅ: Engage in earth-friendly monozukuri• Ｓ: Create a healthy and engaging
workplace• Ｇ: Realize highly transparent
governance© YOROZU CORPORATION. 2021 All Rights Reserved.

• Build a robust corporate
structure that is less affectedby production volume• Expand external sales of
production equipment such as diesand tooling23

12New Mid-Term Business Plan

Yorozu Sustainability Plan 2023

Consolidated Sales/Operating Income Ratio
Consolidated（億円）
sales

連結売上高

(billion yen)（％）
Operating income
ratio (%)
営業利益率

157.6
118.8

130.0

140.0
4.0

1.4

2019 actual
2019実績

150.0
5.0

3.0
0.3
2020
actual2020実績

2021
forecast
2021予想2022 target
2022目標2023 target
2023目標YSP2023© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan

24

Yorozu Sustainability Plan 2023

Management Policy
The three pillars for realization of sound managementthat is resilient to changes(1) ESG Management(2) Stable Profit(3) New Technologies/Methods© YOROZU CORPORATION. 2021 All Rights Reserved.

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New Mid-Term Business Plan

Yorozu Sustainability Plan 2023

Management Policy
The three pillars for realization of sound managementthat is resilient to changes(1) ESG Management(2) Stable Profit(3) New Technologies/Methods

26© YOROZU CORPORATION. 2021 All Rights Reserved.

What is carbon neutrality?
Greenhouse gases

Emit

CO2, methane, Freon, etc.

Carbon neutrality is when there
is a balance between emission
and absorption of CO2

AbsorbReduce greenhouse gas emissions through use ofrenewables such as solar and wind power generation
森林
Woods

工場
Factories

Thermalpower
火力発電所
stations© YOROZU CORPORATION. 2021 All Rights Reserved.

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Impact of Global Warming<Europe>
Alpineglacier
retreat<Mediterranean>
Decreasing
precipitation<Arctic Ocean>
Decrease of
sea ice<Siberia>
Disappearance of
permafrost<North America>
Increase of
wildfires<Asia>
Extremeprecipitation events,
reduced freshwater
availability<Island Countries>
Coastal erosion<South Africa>
Longer dry spells<Australia>
Severe drought<SouthAmerica>Longer dry
spells<Antarctica>
Decrease of sea ice,widespread plantcolonization

28© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan

Yorozu Sustainability Plan 2023

E: Environment Earth-friendly
monozukuri(1) ESG Management

Reduction of CO2 emissions in the process
CO2 emissions without kaizen
Zero CO2 emissions in the process

Improved energy
efficiency

Renewables such as solar power

CO2 emissions reduction line●

CO2 emissions from electricity use

Purchasing zero-carbon power

Fuel conversion

CO2 emissions from fuel use（ CO2 -50％）

2013

2030

（ CO2 -100％）2040

 Carbon Neutral Challenge 2040
 Milestone: Reduce 50% CO2 emissions (from the 2013 level) by 2030
© YOROZU CORPORATION. 2021 All Rights Reserved.

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New Mid-Term Business Plan

Yorozu Sustainability Plan 2023

(1) ESG Management

Healthy andengaging workplace

S: SocialSecure human resources
Promote work style reform and diversity
Build a culture that respects diversity

For a healthy and engaging workplace
Increased motivation

Work
style
reformActive活躍roles

 Health
健康経営and productivity managementwith respect for diversity
 Assignment
ダイバーシティを尊重した登用

iversity

Development of general/specialized skills
Training
育成  共通・専門能力開発に基づいた教育と育成
Cultivation of local and global talents

 現地化とグローバル人財の育成

Diversity

Hiring  ダイバーシティを尊重した登用
Assignment with respect for diversity
採用

Corporate Philosophy

Corporate Culture30© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan

Yorozu Sustainability Plan 2023

(1) ESG Management
Timing

S: Social

Promotion of diversity

Accomplishments

2013 - 2015

Internal women’s conference (once/month)

September 2014

Received Kanagawa Labor Bureau Chief award
for excellence in promotion of equality

May 2018

Established HR Diversity Promotion Group

December 2018

FY2020Received Eruboshi certification
Women account for 22.2% of directors.
10.9% of managerial positions are
No. 1 in theautomotive industry
held by women. (10% target achieved)
Recognized as 2021 Excellent Enterprise of Health &Productivity Management

Future commitment to diversity
 Qualify for Kurumin certification
 Install a barrier-free WC (accessible restroom) Become a White 500 company under the Certified Health & Productivity
Management Outstanding Organizations Certification Program© YOROZU CORPORATION. 2021 All Rights Reserved.

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New Mid-Term Business Plan

Yorozu Sustainability Plan 2023

(1) ESG Management

G: Governance

Highly transparent governanceCo-workers
Suppliers

Customers

Shareholders

Strengthensupervisory
functions

Community

Promote higher
compliance

Encourage
shareholder
communication
32© YOROZU CORPORATION．2021 All Rights Reserved.

New Mid-Term Business Plan

Yorozu Sustainability Plan 2023

(1) ESG Management

Ｅ
Environment

Ｓ
SocialＧ

Contribute to achieving SDGs through ESG activities

Engage in earth-friendly monozukuri
Reduce CO2 in the production process⇒ carbon neutralPrevent global warming with lightweight products

Create a healthy and engaging workplace
Secure human resources
Promote work style reform and diversity
Foster a culture that respects diversity

Realize a highly transparent governance structure

Strengthen supervisory functions
Promote higher complianceCorporate
Governance Encourage shareholder communication
Groundwork to achieve the goals

Promotion of DX (digital transformation)
Transformation of the corporate culture to stay ahead of the competition(Review our ways of working and the processes)© YOROZU CORPORATION. 2021 All Rights Reserved.

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New Mid-Term Business Plan

Yorozu Sustainability Plan 2023

Management Policy
The three pillars for realization of sound managementthat is resilient to changes(1) ESG Management(2) Stable Profit(3) New Technologies/Methods

34© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(2) Stable Profit

Shift to optimum production capacity

External environmentWorldwide car sales: Recovery to the 2019 level* remains uncertain
・ Unforeseeable challenges – the coronavirus pandemic impact
and semiconductor shortage, etc.

*92.18M units before the new-coronavirus outbreak Major customer’s plan
・ Reduction of global production capacity from 7.2M to 5.4M units(NISSAN NEXT, FY20-23 Transformation Plan)

Optimization of production capacity
Optimize production capacity on a global basis
・ Reexamination of the production capacity from three perspectives,“Customer, Product, and Site,” and rebuilding of the production
system© YOROZU CORPORATION. 2021 All Rights Reserved.

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New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(2) Stable Profit

Recreate a strong gemba (shop floor)

Boost the collaboration strength between “Manufacturing Gemba” and “Monozukuri
Support Function” by going back where it all began: YPW (Yorozu Production Way)AI RobotTechnic & Skills

Robotapplication
Unattended
facility
Automatedequipment

Composite
process

Further evolution of
the skills built on
tradition

Systematize knowledge and set up a cuttingedge education system in response to highertensile materials & higher tooling performance

Operator with the skills to manage new technology,
unmanned facilities
Tool & Die maintenance skills; Meister System

Train engineers tohandle multiple
processes

Basic welding skills

Shop floor control (gemba kaizen) skills
YSP2017

YSP2020 and YSP2023
36© YOROZU CORPORATION．2021 All Rights Reserved.

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(2) Stable Profit

Strengthen cash flow management

Life-cycle profit management of each projectPre-product
R&D

Developmentof products

Production
preparation

Start to end of mass
production

Monozukuri Function
Management Function

Project profit control period

Production Sites

Schedule
acceleration

Life-cycle control<Planning and development phase> <Transition to mass production phase> Advance feasibility study tofurther upstream process- Secure profits at the start ofmass production by investment
planning in the upstream
process and target costing© YOROZU CORPORATION. 2021 All Rights Reserved.

 Life-cycle control until end of
production- Life-cycle management ofproject profits by utilizing costconsolidation system- Continue cost kaizen activity
37

19

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(2) Stable Profit
FY15 to FY17

FY18 to FY20

FY21 to FY23

(actual)(actual)(plan)

46.4
CASH
IN

CASH
OUT

Strengthen cash flow management*An impairment loss not involved in cashing out is correctedin the net income.
単位：億円
Billionyen

34.7

Net income*＋Depreciation

0.8
-13.7

ＦＣＦ

Investment
amount

-60.1

-33.9
Investment amount
設備投資額

Improve cash flow by

FCF (Net value)
FCF（NET値）

while making necessary
capital investment

securing profit stability
Net income*+ Depreciation
当期利益※ ＋減価償却費

38© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(2) Stable Profit

Robust corporate structure not affected by sales units
連結売上高
Consolidated sales

Consolidated fixed costs compared with sales

Fixed cost ratio
売上高固定費率

1,691





1,576

Fixed cost ratio kept
rising

1,188

1,300

FY18

FY20

FY21

FY19

1,400

1,500

Fixed cost ratio starts
falling

FY22

FY23

Slim down fixed costs by rationalization
Thoroughly conduct analysis and monitoring of investment payoff
Reduce additional capital investment by taking advantage of newtechnologies and methods© YOROZU CORPORATION. 2021 All Rights Reserved.

39

20

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

Management Policy
The three pillars for realization of sound managementthat is resilient to changes(1) ESG Management(2) Stable Profit(3) New Technologies/Methods

40© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(3) New Technologies/Methods

Ｅ
Environment

Ｓ
SocialＧ

Corporate
GovernanceBusiness environment anddevelopment issues

E

C
Connected

CASE

A

Autonomous
driving
Autonomous

Electric
vehicleElectricS

Shared &Services

Environment (E):
Achievement of net-zero CO2emissions

Autonomous car (A) & Electric vehicle (E):
Absorption of the increase in vehicle weightby lightweight suspension parts<Kaizen of vehicle energy consumption
is required><Batteries and motors make vehicles heavier>Develop lightweight products and bring to the market
with utmost urgency© YOROZU CORPORATION. 2021 All Rights Reserved.

41

21

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(3) New Technologies/Methods

Develop products with high added
value through weight reduction

Lightweighting target for suspension parts<2018～2020><2021～2023>

YSP2020

YSP2023

Design of lightweightand high-tensile
suspension structure
Steel sheet with a tensileof 780MPa grade

Reduction of 15％
achieved

Design of ultra-light and ultrahigh-tensile
suspension structure① Steel sheet with a tensile of 980MPa grade② All aluminum stamping & welding structure③ New multi materials & hybrid structure(steel sheet + aluminum/steel sheet + plastic)

Reduction of 15% or above
YSP2023

YSP2020
2018

2019

2020

2021

2022

2023

Reduce weight by 30%
42© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(3) New Technologies/Methods

Boost stamping innovation

Shift towards autonomous/electric vehicles
Growing demand for lightweight suspension parts
Wider adoption of ultrahigh-tensile materials (780MPa, 980MPa)

Advancement of our exceptional stamping technology
by upgrading underlying technologies
Underlying development

Stamping
technology for
ultrahigh-tensilematerials

Forming analysis
Die structure
Die material
Die surface
treatment© YOROZU CORPORATION. 2021 All Rights Reserved.

43

22

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(3) New Technologies/Methods Proactively expand sales on the 3 axes
Enormous change in the automotive industry
Even faster adoption of self-driving and EVs ⇒ Large-scale investment
Automakers rush to form strategic alliance to survive

Further big change in the supply chain
Auto part suppliers also rush to form strategic alliance to survive

Customer Axis
• Renault, Nissan,
Mitsubishi• Toyota, Honda• Daimler, VW, etc.

Region Axis

Product Axis
• Focus on suspension parts• Launch new lightweight EV
products to expand the sales
・ Expand the sales of
production equipment• Focus on key
markets –Japan, US and
China

Keep the existing commercial rights secured andaggressively expand award winning
activities
44
44© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

(3) New Technologies/Methods

Sales of production equipment

Background Fostering innovation in tooling and equipment directly leads to acompetitive advantage in the part business We are uncertain about the external environment as we have focused oninternal-use tooling and equipment
 Fading demand in the domestic car market increases the risk that toolingand equipment output would fall

Objectives of new external sales
 Improve competitiveness and technology of production
equipment
・Learning from the outside and strengthening our in-house total
production system Grow production equipment business・New business that supports the part business Maintain employment and pass down skills in terms of HR
・Avoidance of skill fade in tooling© YOROZU CORPORATION. 2021 All Rights Reserved.

45

23

Ⅰ. FY2020 Results
Ⅱ. FY2021 Forecast
Ⅲ. New Mid-Term Business Plan (YSP2023)
Ⅳ. Shareholder Return46© YOROZU CORPORATION. 2021 All Rights Reserved.

New Mid-Term Business Plan Yorozu Sustainability Plan 2023

Ⅳ. Shareholder Return271.5% Dividends paid as announced although
the profit fell on an impairment loss
60%

（Yen/Share）
100

75

53yen

58yen

51yen 35.5% 35.4%
20.1%

50
26yen

40

18
19

40

20yen 10.2%

25

0

7.6%

59yen

45%

51.6%

16

Dividend payout
ratio “-”46yen due to net loss
23

5

10

11

10

10

11

2012

2013

2014

18

25

23

30%

27yen

25yen
13yen

14

12

13

13

2019

2020

2021

13

34

35.9% 35.0%
35.0%

15%

0%
2015

Interim dividend
Memorial dividend

2016

2017

2018

Final dividend
Dividend payout ratio

2022

2023

Forecast Forecast Forecast

Our basic policy is the shareholder return that is based on dividends. The target isthe sustainable dividend payment with the dividend payout ratio of 35% or above.
© YOROZU CORPORATION. 2021 All Rights Reserved.

47

24

End

48

Financial Results
FY2020Thank you for your attention

Yorozu Website

http://www.yorozu-corp.co.jp© YOROZU CORPORATION. 2021 All Rights Reserved.

49

25

Disclaimer and Copyright
The financial forecasts, future forecasts, strategies and other statements in thismaterial are established based on judgments made within reasonable forecasts,
according to the information available to the company at the time this material was
prepared. However, there are risks and uncertainties in these forecasts, which could
be caused by any special circumstances and situations that cannot be foreseen.
Therefore, actual results may differ substantially from these forecasts.
Our company is fully committed to disclosing all information that we believe
important to investors. However, investors are requested to refrain from making
decisions based solely on these forecasts and statements contained within thismaterial.
It is strictly prohibited to reproduce any part of this material in any form, including
photocopying or forwarding, for any purpose without the prior consent of thecompany.
Contact Us
Yorozu Corporation
Person responsible: Akira SASO, Member of the Board (CEVP & CFO)
Contact personnel: Yoshitake TAKAHASHI, Manager, Accounting Group, Finance Dept.
TEL 045-543-6802© YOROZU CORPORATION. 2021 All Rights Reserved.

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