FY2018 Financial Results
Ken Shido, President & COO
This is an internal English translation of the YOROZU 2018 Financial Report issued in theJapanese language and is provided solely for the convenience of English speaking
readers. In case of discrepancy the Japanese version prevails.

The first section of the Tokyo Stock Exchange (securities code: 7294)© YOROZU CORPORATION．2019 All Rights Reserved.

AgendaⅠ. FY2018 Financial Results
Ⅱ. FY2019 Annual Forecast
Ⅲ. Recent Activities
Ⅳ. Redistribution of Profits to Shareholders© YOROZU CORPORATION．2019 All Rights Reserved.

1Ⅰ. FY2018 Financial Results
Ⅱ. FY2019 Annual Forecast
Ⅲ. Recent Activities
Ⅳ. Redistribution of Profits to Shareholders© YOROZU CORPORATION．2019 All Rights Reserved.

FY2018 Consolidated Financial Statement Summary (Year on Year)
Millions of Yen

FY2017Sales

FY2018Year on Year

FY18 Forecast
Updated after 3Q
Results *2

Difference
from Forecast

171,536

169,111-1.4％

169,000+0.1％

Operating Income

6,029

5,290

-12.3％

5,600

-5.5％

Ordinary Income

5,648

5,222

-7.5％

5,400-3.3％

Net Profit *1

2,717

402-85.2%

2,800-85.6％

FY2017
ANet Profit per ShareRate Applied to Consolidated
Statement

FY2018B

Difference
B-A

Rate of Change

114.31 yen

16.94 yen

-97.37 yen-85.2％

112.16 yen/＄110.44 yen/ $-1.72 yen/ $-1.5％*1 Net profit attributed to shareholders of the parent company*2 Forecast disclosed on Feb. 8, 2019
Sales: Despite of China’s favorable outcome, the sales declined as main customers’ output dropped in Japan and US.
Operating income: Output falls in Japan and US and depreciation burdens in Mexico erased recovery in Tennessee.
Ordinary income: The profit fall was cushioned by Alabama setup fee savings and foreign currency benefits.
Net profit: Impairment of fixed assets attributed to significant output cuts of major Indian customers led to a net
profit decline.
© YOROZU CORPORATION．2019 All Rights Reserved.

2

Consolidated Sales by Customer (FY17 to FY18 Results)
Millions of Yen

171,536

180,000

Millions of Yen

169,111-156（-2.2％）

160,000

ToyotaToyota140,000

Honda-4,140（-13.8％）Honda

120,000-644（-0.5％）

100,000

80,000

Nissan60,000

Nissan40,000

Customer
Nissan Gr*
Honda Gr
Toyota GrIsuzu
Mazda
SuzukiKubota
VWGM Gr
OthersTotal

FY17(%)
FY18(%)
117,638 68.6% 116,994 69.2%
29,968 17.5% 25,828 15.3%
7,106
4.1%
6,950
4.1%
5,188
3.0%
5,322
3.1%
3,532
2.1%
3,524
2.1%
2,702
1.6%
2,892
1.7%
2,028
1.2%
2,163
1.3%
785
0.5%
2,400
1.4%
342
0.2%
119
0.0%
2,247
1.3%
2,919
1.8%
171,536 100.0% 169,111 100.0%*Sales to Renault included

20,000The sales slumped mainly on adecrease in sales to Honda

0FY17 Result

FY18 Result© YOROZU CORPORATION．2019 All Rights Reserved.

Analysis of Consolidated Operating Income (FY17 to FY18 Results)
Millions of Yen

14,00012,000

1,405

10,000

1,810
8,000
6,000

141119

Cost
reductionrequired bycustomers

Foreign Depreciation
currency
effects
Profit from
1,395
die equipment

Cost Saving

2,0000

FY17

Sales fall
Consolidated
Consolidation
adjustment
adjustments,etc.

941
387

4,000

6,029

Cost increase
due to newly
launchedproduction base

1,491-739 Profit Fall

5,290

FY18Despite cost saving effects including improvement in Tennessee and profits fromdies, the decrease in part sales and Alabama set up costs caused profit fall.
© YOROZU CORPORATION．2019 All Rights Reserved.

3

Sales and Operating Income by Region(Before Consolidation Adjustment, FY17 to FY18 Results)◆Sales-4,431-5.9％-3,584-6.0％

Millions of Yen

100,000

75,08560,14756,563FY17FY18

Difference＋3,083＋5.5％

70,654Rate ofchange

56,30959,392FY17FY1850,0000Japan◆Operating Income+106＋2.8％Millions of Yen

5,0003,804

3,910

FY17FY18FY17FY18Americas

Asia＋17+0.8％＋360＋10.9％
3,308

3,668

0- 5,000- 2,105 - 2,088
FY17

FY17FY18

FY18Asia
JapanAmericas
Japan: Decreases in part and die sales eroded the earning while profitable die sales boosted the profit.
Americas: The sales declined due to sedan and small-typed cars’ output fall in the US. A great recovery
at Tennessee eased the operating loss attributed to Alabama startup and Mexico’s depreciation.
Asia: SUV sales in China rising significantly and improvement in Thailand increased the profit.
© YOROZU CORPORATION．2019 All Rights Reserved.

Summary of Consolidated Balance Sheet for the Year Ended March 31, 2019
Millions of Yen

Mar. 31, 2018
A

Mar. 31, 2019B

Difference
B-A

Current Assets

69,59067,422-2,168Fixed Assets

105,493

100,675-4,818175,083

168,097-6,986

Current Liabilities

45,63240,273-5,359Fixed Liabilities

32,43535,513+3,078

Total Assets

78,06875,787-2,281

Shareholders’ Equity

82,84581,888-957

Accumulated Other
Comprehensive Income-2,992-6,235-3,243

Non-controlling Interest, etc.

17,162

16,657-505

97,01592,310-4,705

175,083

168,097-6,986

Total Liabilities

Net Assets
Total Liabilities and Net Assets

Current deposit+4,087
Notes/trade accounts receivable- 2,445
Inventory asset-2,331Others-1,708Fixed tangible assets-4,213
Investment securities-1,747
Deferred tax assets+1,267
Notes/accounts payable -4,864
Short term debts-2,251Long term debts planned to be
repaid in a year+762
Income taxes payable+986
Long term debts
Lease debt

+1,146+2,158

Net profit
Dividend payment+402-1,354

Valuation difference on availablefor-sale securities-1,213
Foreign currency translation
adjustment-2,156Strong yen effects and impairment in India led to a significant decrease in the fixed assets.
© YOROZU CORPORATION．2019 All Rights Reserved.

4

Ⅰ. FY2018 Financial Results
Ⅱ. FY2019 Annual Forecast
Ⅲ. Recent Activities
Ⅳ. Redistribution of Profits to Shareholders© YOROZU CORPORATION．2019 All Rights Reserved.

Summary of Consolidated Financial Forecast for FY2019◆Profit and Loss (Year on Year)

Millions of Yen

FY2018Result A

Sales Ratio

FY2019Forecast B

Sales Ratio

Difference
B-A

Rate ofChange

100.0%-4,111-2.4%

169,111100.0％

165,000

Operating Income

5,290

3.1％

3,500

2.1%

-1,790-33.8%

Ordinary Income

5,222

3.1％

2,950

1.8%

-2,272-43.5%

402

0.2％

1,650

1.0%

＋1,248+309.7%

Sales

Net Profit *1

FY2018 ResultANet Profit per Share
Exchange Rate Applied
to Consolidated
Statements

16.94 yen

FY2019 Forecast
B

Difference
B-A

Rate of Change

69.42 yen

＋52.48 yen＋309.7％110.44 yen/＄ 108.00 yen / $2.44 yen/＄-2.2%*1 Net profit attributed to shareholders of the parent company

Sales: A sales drop is expected due to output fall of major customers in US and China.
Operating income: Further drop is expected as improvement in US is not enough tocover China and US’s output fall.
© YOROZU CORPORATION．2019 All Rights Reserved.

5

Consolidated Sales by Customer(FY18 Result to FY19 Forecast)Millions of Yen

Millions of Yen

169,111

180,000

Customer

165,000

Nissan Gr
Honda Gr
Toyota -1,604 Toyota Gr（-6.2％）
Isuzu
Honda
Mazda
-6,654（-5.7％） Suzuki
KubotaＶＷ
NissanDaimler
GM Gr
OthersTotal+2,407（+34.6%)160,000

Toyota140,000

Honda
120,000100,000
80,00060,000

Nissan40,00020,000*FY19Forecast

FY18 Result

(%)

(%)

116,994
25,828
6,950
5,322
3,524
2,892
2,163
2,40076
119
2,843
169,11169.2% 110,340 66.9%
15.3% 24,224 14.7%
4.1% 9,357 5.7%
3.1% 5,437 3.3%
2.1% 4,369 2.6%
1.7% 1,714 1.0%
1.3% 2,296 1.4%
1.4% 2,629 1.6%
0.0% 1,260 0.8%
0.1%
97 0.1%
1.7% 3,277 2.0%
100.0% 165,000 100.0%*Sales to Renault included

0FY18 Result

Sales to Toyota Group and Daimler areexpected to rise despite a drop in net revenue

FY19 Forecast© YOROZU CORPORATION．2019 All Rights Reserved.

Analysis of Consolidated Operating Income (FY18 Result to FY19 Forecast)Millions of Yen

14,00012,00010,0001,141

8,000877

Cost reduction
required bycustomers

Depreciation

6,000
Consolidation
Cost saving adjustments,
etc.

4,000
2,000

Increase in workforce number,development cost, etc.

Sales
decrease

1,394
1,085

5,290

632561

Profit fromdieequipment

126

Foreigncurrency
effects

103,500-1,790 Profit Fall0FY19 Forecast
FY18 ResultA profit fall is expected in the current reading because of strategic
investment based on long-term vision (depreciation, labor anddevelopment costs, etc.) and a decrease in sales from main customers.
© YOROZU CORPORATION．2019 All Rights Reserved.

6

Sales and Operating Income by Region(Before Consolidation Adjustment, FY18 Result to FY19 Forecast)◆SalesDifference
Rate ofchange+1,547+2.7％-2,736-3.9％-4,251-7.2％

56,563 58,110

70,654 67,918

59,392 55,141

Millions of Yen

100,000

50,0000FY18FY19◆Operating Income-1,642-42.0％

Millions of Yen

5,000

FY18Japan

3,910

FY18FY19FY19Americas

Asia＋979＋46.9％-1,521-41.5％
3,668

2,268

2,1470-2,088- 5,000

FY18-1,109

FY18

FY19FY18

FY19FY19Asia

Americas

Japan

Japan: The increase in administrative expenses at HQ (depreciation, labor and other costs) and fixed costs ofOita base renovation will erode profits.
Americas: The bottom line will be improved significantly thanks to US recovery while a sales drop is expected.
Asia: A significant drop in sales to main customers in China will decrease sales and erode profits.
© YOROZU CORPORATION．2019 All Rights Reserved.

Capital Investment and Depreciation
Capital Investment

Millions of Yen

30,00030,000Asia
25,000AmericasAsia

24,64325,000

Japan
5,106

20,000Depreciation

Millions of Yen

Japan

19,50020,013

Americas20,00015,50015,451
6,936

15,000
5,511

15,00010,870

6,670

8,138

12,075
10,87011,915
10,592

8,373

4,780

14,301

10,00012,900
6,640

6,632

10,000

5,262

6,910
5,000

0

8,220

5,000
5,236

4,939

FY16

FY171,769
FY153,761

6,190

0
FY18

FY19 (Forecast)FY15FY16FY17FY18

FY19 (Forecast)© YOROZU CORPORATION．2019 All Rights Reserved.

7

Ⅰ. FY2018 Financial Results
Ⅱ. FY2019 Annual Forecast
Ⅲ. Recent Activities
Ⅳ. Redistribution of Profits to Shareholders© YOROZU CORPORATION．2019 All Rights Reserved.

(1) Improvement in Profitability・Company management based on free cash flow
・More effective project profit control
・Innovative Monozukuri(2) Further Progress in Product Competitiveness andDevelopment Capability
・More competitive suspension parts

・Taking advantage of specific technologies to develop new products
・ Effective sales promotion along three axes (Customer, Product and Area)(3) Enhancement of Corporate Capabilities
・Human resources development
・Organizational review
・ESG management© YOROZU CORPORATION．2019 All Rights Reserved.

8

Make an all-out effort insimultaneous engineering

Assembly line process reduction image

Component parts reduction,parts integration, etc.
Better yieldwith Arc-tailored blanks
BeforeAfter 9 processes

15 processes

Reduce capital investment
Capital investment index▲５０％ challenge

100Actual Step up efforts toward simultaneousengineering in drawings
 Introduce new technologies / newmanufacturing methods Introduce new concept lines Design waste-free facilities

50Target© YOROZU CORPORATION．2019 All Rights Reserved.

© YOROZU CORPORATION．2019 All Rights Reserved.

9© YOROZU CORPORATION．2019 All Rights Reserved.

© YOROZU CORPORATION．2019 All Rights Reserved.

10Rear Suspension Beam
Proposal of lightweight andcost cut
Battery Case
Proposal of methods forless number of parts
Front Suspension
Member
Proposal oflightweight and costcut
Rear Suspension
Member
New Proposal

YOROZU welcomed over 600 visitors within three days from January 16.
21© YOROZU CORPORATION．2019 All Rights Reserved.

Further Progress in Product Competitiveness and Development Capability

RADIUS ROD
Length changeability
from single die

UPPER LINK
Burring helps reduce
number of parts for
B/J assembly

LINK
Link made bysheet metal curling

Exhibited our products at Toyota HQ© YOROZU CORPORATION．2019 All Rights Reserved.

2211

© YOROZU CORPORATION．2019 All Rights Reserved.

Further Progress in Product Competitiveness & Development Capability
ALTIMA (old model)【SOP】
US: June, 2012

Development with light-weight technology
New ALTIMA【SOP】
US: August, 2018

Front SUSPENSION MEMBER for ALTIMA in North AmericaItemOld Model
New ModelMain
Material

540MPa class

540MPa class

GeneralPlateThickness

1.8mm

1.6mm

Numberof MajorParts

2917Weight

32.1kg25.6kg-20.2%

Offering simplified structure and thinner sheets cuts off the weightsignificantly in North American specifications© YOROZU CORPORATION．2019 All Rights Reserved.

12

Finalist to Quality Award from
Nissan North America (Mexico)

Quality Award from
Nissan Mexico (Mexico)

Quality and Delivery
Excellence Award from
Honda Brasil (Brasil)

Appreciation Award for Quality Activities
from Toyota Motor East Japan (Japan)

Finalist to Thai Regional Quality Awardfrom Nissan Motor (Thailand)(Thailand)

Excellence in Quality Award
from Hino Motors USA (US)

Certificate of Achievement forQuality from Isuzu Motors (Japan)© YOROZU CORPORATION．2019 All Rights Reserved.

AmericasNissan ALTIMAFR SUSP MEMBER

Daimler A-class Sedan
RR CRADLERR SUSP MEMBERRR SUSP LWR LINK RR
RR SUSP LWR LINK FR

Daimler GLE
RR CAMBER ARM RH/LH

BRAKE PEDAL

Asia
Daimler A-class Sedan
RR CRADLE

Japan
Nissan DAYZ

Mitsubishi eK Wagon

FR SUSP MEMBERRR SUSP BEAM

© YOROZU CORPORATION．2019 All Rights Reserved.

13Enhance Corporate Capabilities
Recognized as “Eruboshi*” Employer
under the Act on Promotion of Women’s Participation and Advancement in the Workplace

On December 3, 2018,
Yorozu received the highest-level Eruboshi* Certification.
*Eruboshi implies “L Star” (“L” stands for Lady, Labour and Laudable.)
Certificate of Recognition
Eruboshi Certification Mark© YOROZU CORPORATION．2019 All Rights Reserved.

Outside Directors

Nominating
Committee

Compensation
Committee

Supervise management
Management© YOROZU CORPORATION．2019 All Rights Reserved.

2814Ⅰ. FY2018 Financial Results
Ⅱ. FY2019 Annual Forecast
Ⅲ. Recent Activities
Ⅳ. Redistribution of Profits to Shareholders© YOROZU CORPORATION．2019 All Rights Reserved.

Financial Strategy: Extension of Shareholders Benefit Program
271.5%(Yen/Share)
100

51.6%

80

53yen

58yen

59yen

Memorial dividend
included

50%

36%

40%

35.5% 35.4%
51yen

60

40
16yen

17yen

18yen

19yen

26yen

20.1%

1940

40
1025yen
16

23

89925

23

88991010112008

2009

2010

2011

2012

2013

2014

Interim dividend
Memorial dividend

20%

1334

111030%

46yen

520

020yen

18

1810%

120%

2015

2016

2017Final dividend
Dividend payout ratio

2018

2019Forecast

Dividend payout ratio will remain above 35% from FY2019 onwards.
© YOROZU CORPORATION．2019 All Rights Reserved.

15

FY2018
Financial Results
Thank you for your attention

Yorozu Website

http://www.yorozu-corp.co.jp© YOROZU CORPORATION．2019 All Rights Reserved.

Disclaimer and Copyright
Please note that this document contains the forward-looking statements. We
ensure that our business forecast, estimation and future strategies are based on
the information we reasonably obtained as of the date of this document and thejudgment from normally-anticipated assumptions and beliefs. However, suchforward-looking statements do not provide any guarantees for the future
performance, and may involve risks, uncertainties and other factors which causematerial differences in any future results or performance expressed or implied inthis document.
We aim to proactively provide fair disclosure of accurate and necessary
information to investors and other related individuals, but we ask you not to place
undue reliance on such forward-looking statements to make any decisions.
In light of the copyright policy, please be advised that unauthorized reproduction
or distribution of this document for any purpose is strictly prohibited.
Thank you very much for your understanding and cooperation.
Contact UsYorozu Corporation
Person responsible: Akira SASO, Vice President (CEVP&CFO), General Manager of Finance Dept.
Contact personnel: Yoshitake TAKAHASHI, Manager, Finance Dept.
TEL 045-543-6802

FAX 045-543-4915© YOROZU CORPORATION．2019 All Rights Reserved.

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