Fiscal Year Ending March, 2021
2nd Quarter Financial Results
Nov 6th, 2020
F-TECH Inc.
President & CEO
Yuichi Fukuda
Copyright(c) 2020 F-TECH INC. All Right Reserved1Table of Contents

1 Financial Summary
2 Earnings Forecast
3 Management Strategy

4 Topics
Copyright(c) 2020 F-TECH INC. All Right Reserved

2

Table of Contents

1 Financial Summary
2 Earnings Forecast
3 Management Strategy

4 Topics
Copyright(c) 2020 F-TECH INC. All Right Reserved3Consolidated Financial Results Overview (Year on Year)（Unit ：Million Yen）

FY Mar. 2020
Q2 ActualFY Mar. 2021
Q2 Actual

112,355

100.0%

73,605100.0%▲38,749▲34.5%

Operating Profit

2,129

1.9%

▲1,655▲2.3%▲3,794▲178.2%

Ordinary Profit

1,515

1.3%

▲2,296▲3.1%▲3,812▲251.6%

Profit Attributable to
Owners of Parent

▲127

▲0.1%

▲3,345▲4.5%▲3,218-

Earnings per share (Yen)

▲6.82

―

▲179.38―▲172.56-

Sales

Difference

FX Impacts
FY Mar. 2020 Q2FY Mar. 2021 Q2

Difference

１US$

108.68yen

106.32yen▲2.36yen

１CAN$

81.72yen

78.53yen▲3.19yen

1Yuan(RMB)

16.23yen15.32yen▲0.91yen

Decrease in sales and profit （Mainly due to COVID-19 impact）
Copyright(c) 2020 F-TECH INC. All Right Reserved4Consolidated Sales (Year on Year)(Unit：Million Yen)

Consolidated Sales by Segment
140,000
120,000

112,355

100,000

Japan, 14,194

80,000N.
America,
68,99260,00040,00020,000Asia, 29,167

0
FY Mar. 2020
Q2 Actual

Sales Share (%)(Japan)-%Japan, 12.6%

Japan, 12.6%

N.
America,
61.4%

N.
America,
61.4%(N. America)
-%

Asia,
26.0%

(Asia)-%

Asia, 19,099

Asia,
26.0%

FY. Mar. 2021
Q2 ActualFY Mar. 2020
Q2 ActualFY Mar. 2021
Q2 Actual

73,605

Japan, 9,306

N.
America,
45,200Change in Consolidated SalesFY Mar. 2020 Q2FY Mar. 2021 Q2

Difference

Difference(%)

Net Difference

Difference(%)

Japan

14,1949,306▲4,888▲34.4%－▲4,888▲34.4%

N. America

68,99245,200▲23,792▲34.5%▲1,354▲22,438▲32.5%

Asia

29,16719.099▲10,068▲34.5%▲1,072▲8,996▲30.8%

Consolidated

112,355

73,605▲38,749▲34.5%▲2,427▲36,322▲32.3%FX Impact

Significant decrease in sales in all segments due to COVID-19 impact
Copyright(c) 2020 F-TECH INC. All Right Reserved

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

Operating Profit
FY Mar.
2020

FY Mar.
2021

Q2 Actual

Q2 Actual

Japan

▲432

▲1,184▲751

N. America

395▲1,315

Asia

1,928

Total

Share
FY Mar.
2020

FY Mar.
2021

Q2 Actual

Q2 Actual-▲20.3%

71.1%

91.4%

▲1,710▲432.8％

18.6%

79.0%

60.4%

723

▲1,205▲62.5%

90.6%▲43.4%▲134.0%1,890▲1,776▲3,667▲194.0%88.8%

106.7%

17.9%

Adjust

238

111

▲127

▲53.4%

11.2%

▲6.7%

▲17.9%

Consolidated

2,129▲1,665▲3,794▲178.2%100.0%

100.0%-

Difference

Difference(%)

Copyright(c) 2020 F-TECH INC. All Right Reserved

Difference

6

Operating Performance by Segment (Japan)
Operating Profit

Sales
14,194

9,306

Change▲4,888Change (%)▲34.4%

Last term

Current term

Real Change▲4,888Change (%)▲34.4%▲4,531

Product sales to main customers decrease2

Machine and Tools sales increase238

3

Technical services income decrease

▲363

4

Domestic subsidiaries sales decrease▲1,513

5

Elimination of Intercompany sales(to Gr. Companies)

FX Impact―

Change (%)―

1

Product, machine and tools and technical services
income impact▲1,035

2

Cost reduction impact

3

Domestic subsidiaries sales decrease

4

Fixed costs incurred due to COVID-19 transferred to
extraordinary loss

100

Total

▲751

Current term

▲4,888

Quarterly Change
5,545

FY2020
FY2021
6,385

Q3

569
▲385

FY2020
FY2021

Quarterly Change6270▲ 1,012

Q1
Q2

―

▲751

1,281

Total

Q1

Change (%)

Reason of change

16,680 4,919▲1,184

Real Change

Last term

Reason of change

7,514 4,386▲751

Change▲432―

FX Impact(Unit：Million Yen)

▲ 495

▲ 171

Q2

▲ 320
Q3

Q4

Q4

Decrease in sales and profit (COVID-19 is the main factor. Cost reduction contributed to the profit significantly and activities will continue.)

Copyright(c) 2020 F-TECH INC. All Right Reserved

7

Operating Performance by Segment (N. America)
Operating Profit

Sales
68,992

Last term

45,200Current term

Change▲23,792

Change (%)▲34.5%FX Impact▲1,354

Real Change▲22,438

Change (%)▲32.5%▲1,315

Last term

Current term

Product sales to main customers decrease (HM)▲14,033

2

Product sales to main customers decrease (GM)

▲4,604

3

Product sales to main customers decrease (Other)▲3,063

4

Machine and Tools sales decrease5

FX impact▲738▲1,354

Quarterly Change▲1,749Change (%)▲442.7％

FY2020
FY2021▲3,733

Product sales decrease2

Machine and Tools sales decrease3

Cost improvement

4

Fixed costs incurred due to COVID-19 transferred to
extraordinary loss

5

FX impact

▲194
464
1,714
38
▲1,710

Total

649

FY2020
FY2021

Quarterly Change

32,36230,183 32,098

Q2Real Change

1

▲ 524
Q1

38

FX Impact▲23,792

Total

32,846▲432.8％Change (%)

Reason of change

115,016▲1,710Change395

Reason of change

36,146(Unit：Million Yen)

Q3

4Q

Q1

▲ 254

▲ 80
▲ 791

Q2

Q3

53
4Q

Decrease in sales and profit (COVID-19 is the main factor. Similar impact in Mexico in the second quarter, where closing is in December.)

Copyright(c) 2020 F-TECH INC. All Right Reserved

8Operating Performance by Segment (Asia)
Operating Profit

Sales
29,167

Last term

19,099Current term

(Unit：Million Yen)

Change▲1,205▲34.5%

Change (%)▲62.5%FX Impact▲1,072

FX Impact

Real Change▲8,996

Real Change▲1,175

Change (%)▲30.8%

Change (%)▲60.9%

Change▲10,068

Change (%)

1,928

723

Last term

Reason of change

Current Actual▲31

Reason of change

1(China) Product sales to main customers decrease▲3,501

1(China) Product sales to main customers decrease▲1,5482(Asia) Product sales to main customers decrease▲4,0822(Asia) Product sales to main customers decrease

▲723

3

(China) Wind regulator business separation impact▲1,4133

Cost improvement

406

4

FX impact▲1,072

4

Fixed costs incurred due to COVID-19 transferred to
extraordinary loss

691

5

FX impact▲31

5▲10,068

Total▲1,205

Total

Quarterly Change
14,403
5,738

14,764 13,360

FY2020
FY2021

15,278

14,686

Quarterly Change
1,028

899

718

1,191

FY2020
FY2021

1,245

5
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Decrease in sales and profit (COVID-19 is the main factor. Production in China started to recover in the second quarter. The impact in Asia
still continues.)

Copyright(c) 2020 F-TECH INC. All Right Reserved

9Changes in Operating Profit
Product and Machine andTools sales

Improvement

COVID-19

2,129

Decrease Increase(Unit：Million Yen)

▲1,665

Japan▲1,420

Japan
100

Japan
569

N. America▲3,927FY Mar. 2020
Q2 Actual

Asia
N. America 406
464

N. America
1,714

FX
Consolidated
Impacts adjustment
7
▲127

Asia
691

Extraordinary
loss transfer

2,505
Asia
▲2,271
Copyright(c) 2020 F-TECH INC. All Right Reserved

FY Mar. 2021
Q2 Actual10The Second Quarter Consolidated Closing – by Quarter
FY Mar. 2021
(unit: million yen)
Consolidated sales

Q1

Q2

25,141

48,464(unit: million yen)
Consolidated operating
profitTotal
73,605Q1FY Mar. 2021
Q2

-1,372

Sales (by segment, by quarter)

15

13.4
5.7

4.9

Japan

N. America

Q1-1,665

Operating Profit (by segment, by quarter)

30.2

4.4

-293

（Unit： Billion Yen）

（Unit： Billion Yen）

35
30
25
20
15
10
5
0

Total

Asia

1.0
0.5
0.0
-0.5
-1.0
-1.5
-2.0
-2.5

0.7

▲ 0.1
▲ 1.1

▲ 1.0
▲ 2.0

Japan

N. America

Q1

Q2

▲ 0.7
Asia

Q2

※In N. American graph, extraordinary loss transfer (fixed cost) is indicated as expense.

When compared quarter to quarter, sales in each segment increased. Although some segments
are showing loss, operating profit is on an upward trend.
Copyright(c) 2020 F-TECH INC. All Right Reserved

11

Table of Contents

1 Financial Summary
2 Earnings Forecast
3 Management Strategy

4 Topics
Copyright(c) 2020 F-TECH INC. All Right Reserved

12Consolidated Earnings Forecast (FY Mar 2021 Forecast)(Unit：Million Yen)FY Mar 2020
ActualFY Mar 2021 Full year (Aug 6th)

Difference

218,712100.0%

184,000

100.0%▲34,712▲15.9%

Operating profit

4,088

1.9%

2,400

1.3%

▲1,688▲41.3%

Ordinary profit

2,764

1.3%

1,900

1.0%

▲864

▲31.3%

Profit Attributable toowners of parent

328

0.2%

▲800

0.4%

▲1,128▲343.6%

Earnings per share
(Yen)

17.58

―

▲42.83―▲60.41▲343.6%

Sales

FX impacts
FY Mar 2020

Q2

Difference

1US$

108.95 yen

105.56 yen▲3.39 yen

1CAN$

81.67 yen79.30 yen

▲2.37 yen

1Yuan(RMB)

15.82 yen

15.15 yen

▲0.67 yen

Decrease in sales and profit (Due to COVID-19 impact)
Copyright(c) 2020 F-TECH INC. All Right Reserved

13Consolidated Sales (FY Mar 2021 Forecast)(Unit：Million Yen)

Consolidated Sales by Segment
Japan, 26,126

150,000

N.
America,
133,454

100,000
50,0000(Japan)▲1.4%

184,000

Japan, 12.0%

Japan, 10.6%

Japan, 19,631

N.
Anerica,
61.0%

N.
Anerica,
61.0%(N. America)
±0.0%

Asia,
27.0%

Asia,
28.4%

(Asia)+1.4%

218,712200,000

Sales Share (%)

N.
America,
112,170

Asia,
59,132

Asia,
52,197FY Mar 2020 Actual

FY Mar 2021 Forecast

FY Mar 2020 Actual FY Mar 2021 Forecast

Change in Consolidated SalesFY Mar 2020

Q2

Difference

Difference(%)

FX Impacts

Net Difference

Difference(%)

Japan

26,126

19,631▲6,494▲24.9%－▲6,494▲24.9%

N. America

133,454

112,170▲21,283▲15.9%▲3,416▲17,868▲13.4%

Asia

59,132

52,197▲6,934▲11.7%▲2,079▲4,856▲8.2%

Consolidated

218,712

184,000▲34,712▲15.9%▲5,495▲29,218▲13.4%

Decrease in sales (Due to recovered production after the second quarter, the rate of decline in China is low.)
Copyright(c) 2020 F-TECH INC. All Right Reserved

14

Operating profit by Segment (FY Mar 2021 Forecast)(Unit：Million Yen)

Operating Profit
FY Mar2020
ActualFY Mar
2021
Q2

Share

Difference

Difference(%)

FY Mar2020
ActualFY Mar2021
Q2

Difference

Japan

▲683

116

799

-％

▲16.7％

4.9％

21.6％

N. America

367▲1,310▲1,677▲456.1％

9.0％▲54.6％▲63.6％

Asia

4,365

3,457

▲908

▲20.8％

106.8％

144.1％

37.3％

Total

4,050

2,263

▲1,787▲44.1％

99.1％

94.3％

▲4.8％

Adjust

37

136

98

263.3％

0.9％

5.7％

4.8％

4,088

2,400

▲1,688▲41.3％

100.0％

100.0％-

Consolidated

Copyright(c) 2020 F-TECH INC. All Right Reserved

15

Transition of Operating Profit (Q2 Actual → Full year forecast)(Unit : Million Yen)

Consolidated
Adjustment
Machine and25
Asia

Tools Sales

379▲1,665

Asia
Domestic
Product
Subsidiaries
N. America N. America 2,355
170
FTC
Product Machine andProduct,
Tools Sales▲602
Machine and
607

2,400

Tools Sales
1,131

FY Mar 2021
Full year forecast

FY 2021
Q2 results
Copyright(c) 2020 F-TECH INC. All Right Reserved

16

Sales Changes by Customer
100%
90%
80%

Others
3.8%
3.2%

0.1%

10.9%

3.5%
2.9%

1.6%

12.0%

3.5%
2.8
11.4%

3.4%
2.7%
2.7%
12.9%

2.9%
3.0%
4.7%

FCA

1.4%
3.3%
6.0%

Mitsubishi
Nissan

12.7%

10.5

TOYOTA

70%

Tesla
77.6%

76.4%

60%

75.2%

72.0%

70.0%

GM

71.1%

Honda
50%
FY Mar. 2016

16/3期

Honda
GM
Tesla
TOYOTA
NissanMitsubishi
FCA
Others152,435
21,345
ー
6,204
7,435
1,803
ー
7,121
196,343FY Mar. 2017

17/3期

151,282
23,683
247
5,658
6,985
2,036
71
7,979
197,941

FY Mar. 2018

18/3期

170,089
25,782
3,661
6,428
7,957
2,648
1,010
8,485
226,060

FY Mar. 2019

19/3期

169,51230,258
6,443
6,300
7,977
3,051
2,913
8,907
235,361

FY Mar. 2020
(Actual)
20/3期
153,004
27,71910,211
6,471
6,275
2,597
1,686
10,749218,712

Copyright(c) 2020 F-TECH INC. All Right Reserved

FY Mar. 2021
(Plan)
21/3期予想
130,884
19,259
11,094
6,058
2,499
1,360
2,126
10,720184,000

17

17

Financial Position(Unit: Million Yen)

160,000

Total Asset

Capital Investment

Depreciation

Interest-Bearing Debt

Interest-Bearing Debt Ratio

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

137,010
8,056
11,72046,220

FY2020(Actual)134,038
12,238
10,89051,342

FY2021(Forecast)
133,014
9,355
10,27953,030

33.7%

38.3%

39.9%

FY2016FY2017FY2018FY2019137,980
20,57810,081
58,686

144,420
14,094
10,33559,129150,525
12,435
11,66659,510

42.5%

40.9%

39.5%

Copyright(c) 2020 F-TECH INC. All Right Reserved

0.0%

18

Table of Contents

1 Financial Summary
2 Earnings Forecast
3 Management Strategy
4 Topics
Copyright(c) 2020 F-TECH INC. All Right Reserved

19

Previous Mid-Term Plan ～Basic Policy～
Corporate Policy
Mar 2017

Mar 2018

Mar 2019

Mar 2020
Achieve strong financial
positions and highprofitability

Actuals
Consolidated
sales

TargetConsolidatedsales

1 9 7 . 9 B Yen

2 1 2 . 0 B Yen

Operating profit ratio

Operating profit
ratioInterest bearing debt
ratioInterest bearing
debt ratioProvide our customers with excellent value

Production plants to maximize the profitSupport function to minimize the cost and provide production plants with value

Establish strong financial positions
 Acquire and expand new customers
Propose new breakthrough products

Establish new technologies and new processing methods

Plan and execute new business opportunities

Copyright(c) 2020 F-TECH INC. All Right Reserved

20

Previous Mid-Term Plan: Actual ～Management Objectives～
Sales

Sales(Plan)

Billion Yen
220.0

197.9

200.0

209.0

Operating Profit
Operating Profit(Plan)

Sales(Actual)

226.0

207.0 235.3

212.0 218.7

12.0

10.0

8.0

140.0

4.0

120.0

2.0

9.0

8.0

8.0%

6.8

6.5

4.1%

6.0

160.0

5.0%

4.3%

3.8%
3.0%

Mar 2017 Actual

Mar 2018

Mar 2019

4.0%
2.0%

2.8%
1.9%

Mar 2017
ActualMar 2020

6.0%
4.0

0.0

100.0

10.0%

10.5

8.0

180.0

Operating Profit(Actual)
Operating Profit Ratio(Actual)

Operating Profit Ratio(Plan)

Billion Yen

Mar 2018

Mar 2019

0.0%

Mar 2020

Total Assets(Plan)

Investment Plan
Billion Yen

Investment(Plan)

Investment(Actual)

Average

20.0
16.0

14.1

13.7
12.4 12.4

13.0
10.2
8.0

12.0

11.0

12.2
10.86

8.0
4.0
0.0

Mar 2017 Actual

Mar 2018

Mar 2019

Mar 2020

Interest-Bearing
Debt Ratio

Total Assets(Actual)

Billion Yen

Interest-Bearing Debt Ratio(Plan)

160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0

Interest-Bearing Debt(Plan)
Interest-Bearing Debt(Actual)
Interest-Bearing Debt Ratio(Actual)146.9 150.5

144.4

140.0 137.0

39.5%

40.9%

39.0%

39.5%

59.5
58.0

59.1

60.0%

140.0 134.0
35.4%

40.0%

35.0%
33.7%

46.2
54.6

47.5

20.0%

4…

0.0%

Mar 2017 Actual

Mar 2018

Mar 2019

Mar. 2020

Excluded Special Factors

Copyright(c) 2020 F-TECH INC. All Right Reserved

21

Previous Mid-Term Plan : Actual ～Plan vs. Actual for Year 3
The 13th Mid-Term Plan : The 3rd Year Plan vs. Actual（Unit: Billion Yen）

Mid-Term Plan

Mar 2020 Actual

Sales

212.0

218.7

Operating Profit

10.5

4.0

Investment Plan

11.0

3year Ave. 10.86

Interest-bearing Debt

49.0

47.5

35.0%

35.4%

（Excluding Special Factors*）

Interest-bearing Debt Ratio（ExcludingSpecial Factors*）

Evaluation

〇
×
〇
〇
△

*Special Factors: Additional borrowings of 2.5 billion yen for COVID-19, 1.3 billion yen increase due to lease accountingchanges, a total of 3.8 billion yen has been deducted.

 Sales, Investment, Interest-bearing Debt, and Interest-bearing Debt ratio are mostly on
plan.
 Operating Profit has significant gap to the plan, and the issues are being addressed.
Copyright(c) 2020 F-TECH INC. All Right Reserved

22

Previous Mid-Term Plan: Challenges ～Status of subsidiaries in Japan・Asia・NA～

Japan and Asia
IssuesChallenges Countermeasures
Respond to localization

Sales volume
not growing
Efficiencies of
production lines
declined
Value-added perperson declined

North America
IssuesChallenges Countermeasures
Improve logistics

Cost
reduction

sources

Cost increased
Labor, Outsourcing +associated expenses

Increase of
fixed costs Reduce fixed costs
andReduce investment
depreciation

Loss increased
Scrap/Additional
inspections

Loss
reduction

Sales leveled Develop new customers
off
Diversified income

Improve efficiency of SGA
jobs

Increase of
Improve efficiency oflabor costs production lines

Change to in house
operation
Reduce manpower
Improve manufacturing
accuracy
Scrap reduction
Stabilize productivity

Lowered productivity Productivity Improve associates’
Additional outsourcing improvement ability

Continued kaizen activities

Automation

 Production at customers are fluctuating, and external environment is changing.
 Activities are on going, various improvement activities are gradually showing the results.
Copyright(c) 2020 F-TECH INC. All Right Reserved

23

The 14th Mid-Term Business Plan ～Basic Policy～
The 13th Mid-TermBusiness Plan
Achieve strong financial
positions

The 14th Mid-Term Business Plan
Corporate Policy ： Let’s exceed out limits! We will, withoutcompromise, produce the “Best One” for all our customers

Reinforce the free cash flow
operation

66th Term (FY2020)

67th Term (FY2021)

68th Term (FY2022)

Maximize group
efficiency

The goal on Interest-bearing
debt ratio was almost achieved

Achieve high profitability
Sales increase withdiversification of customers wasachievedbutchanges＞＜Business environment
・Trade environment
・Automobile market changes
・Tight labor market＜Internal environment changes＞
・Decrease productivity, andincrease costs

Resulted in low profitability

Goals

Common attitude that all F-tech groupassociates should have

Better than Ever
Back to Basics～Master what you suppose to do～

Challenge for New～Challenge to create new value～

・ProductivityManpower efficiency
Year on year ▲1point
・Efficiency Confirmation of automatedinspection device performance
・Profitability Scrap ratio to sales
Less than 0.1%
Turning positive
・FCF●Achieve profit at all facilities●Evolution of the simulation●Revival of domestic facilities●Acquire mainstay new customers●Challenge in new regions●Create new business opportunities

Copyright(c) 2020 F-TECH INC. All Right Reserved

24

The 14th Mid-Term Major Activities to Achieve “Better than Ever” (Sales area)
Expanding the business globally with
Honda/GM/Toyota/Suzuki, andemerging EV manufacturers

Sales
Unit：Million Yen
300,000

COVID-19 impact

250,000

200,000

150,000

100,000

50,000

0
Sales

•
•

17/3

18/3

19/3

20/3

21/3E

197,941

226,060

235,361

218,712

184,000

The 14th Mid-Term

The 15th Mid-Term

Enhance global sales activities for further business opportunities with Honda/GM/Toyota/Suzuki.
Strongly expand the development/sales activities to EV manufacturers (TESLA/RIVIAN).
Copyright(c) 2020 F-TECH INC. All Right Reserved

25

The 14th Mid-Term Major Activities to Achieve “Better than Ever” (R&D, Engineering, Sales, Production)【Responding to the diverse needs of automobile manufacturers】“Non Prototype
Development(NPD)”“Excellent analysis capabilities”“Ability to support various
models such as EV,FCV”

Strong sales
activities taking
advantage of eachtechnology＜Collaboration＞
Material manufactures
Body manufactures＜Manufacturing technology, Quality＞＜EV adaptability＞＜Unique development technology＞
Achieving low cost
＜Weight Reduction＞
operation and high quality Achieving optimum designing by
Further weight reduction
integrating existing know-howschanging from partsby optimal harmony of
Subframes to absorb collision
optimization to systemenergyand simulation technologies
man and automation
optimization

Optimal proposal according to the needs of each OEM
Copyright(c) 2020 F-TECH INC. All Right Reserved

26

The 14th Mid-Term Major Activities to Achieve “Better than Ever” (Administration)
CG
Internal control○Evolving to new governance structures that lead to enhancing corporate value
・Achieving optimal and speedy control and decision making○Optimization of risk management, compliance, and CSR

Finance
P&L・Investment
management○Initiatives for global accounting standard (Clarification of profitability recognition policy)○Establishing a structure for financial・investment management, new funding methods

Human resource
development・
activation○Expanding a program of global recruiting, human resource development andmanagement, promoting work style reforms
・Diversified methods to recruit overseas human resources, high standardization ofdomestic and international technologies (conduct training by skilled technicians)
・Global management of retention of technologies and skills (including establishingmanagement environment)

Process improvement○Changing SGA job structure and achieving “new competitiveness by reducing
cost by half”

Establishing a structure to manage profitability by making decisions quickly and also
placing right people in the right position
Copyright(c) 2020 F-TECH INC. All Right Reserved2727Each Area’s 14th Mid-Term Plans in COVID-19 Pandemic
The 14th Mid-Term
Plan
Evolution of uniquedevelopment technology
Achieving optimum designing by
integrating existing know-howsand simulation technology

Engineering
R&D
Sales

Creating new value bycollaborations
EV technology・weight
reduction
Strong sales activities
Developing new customers
and areas with new value

Administration

Establishing strong profit
structure
Strengthening corporate
governance and placing rightpeople in right position

Impact of COVID-19

F-tech direction＜Automobile manufacturers＞
・Downward revision of
production
・New model mass-production
plan delay
・Promoting cost reduction

Focus on what needs tobe done now based on
COVID-19 impact＜F-tech activities＞
・Suspension of overseas
business trip
→Suspension of visiting
customers, suppliers, andoverseas plants

・Delay of activities
・Downturn in plants’performance

・Prioritizing cost
reduction

Copyright(c) 2020 F-TECH INC. All Right Reserved

・Cost reduction
・Investment restraint
・Making a choice ofactivities

Numerical objectives of the
14th Mid-Term business plan
will be disclosed after
assessing COVID-19
28

Each Region’s Current Status in COVID-19 Pandemic
COVID-19 Impact Term

Status AfterQ3 *2

Operation Suspension

Operation Restart

Recovery
Status *1

End of January *3

Zhongshan: Beg of February
Wuhan：Beg of MarchOver 100%

Over 100%

North
America

End of March

Canada: Beg of May
USA: Beg of May
Mexico: End of May

Approx.70%

Approx.
100%

Japan

End of April

Begging of May

70%～80%Approx.
100%

Asia

Thailand：No suspension
Philippines：End of Mar.
Indonesia：Beg. of Apr.

Thailand: Based on
customers’ schedule
Philippines: Beg of April
Indonesia: End of June

Approx. 60%

Approx. 80%

RegionChina*4*1:Compared to previous Q2 (production volume)*2:Compared to previous Q3 (production volume)*3:After Chinese new year
*4:Mexico is closing in December. Q2 was peak of COVID-19 impact, and it offsets the recovery of the US and Canada.

Copyright(c) 2020 F-TECH INC. All Right Reserved

As of Sep 30th29

29

Each Area’s 14th Mid-Term Plans in COVID-19 Pandemic

Due to the impact of COVID-19, production volumes have dropped
significantly compared to last year. We are currently working diligently
to achieve the plan of 2020.
We will target to disclose numerical objectives of the 14th Mid-term plansat the next financial results report (May 2021).

Copyright(c) 2020 F-TECH INC. All Right Reserved30

Table of Contents

1 Financial Summary
2 Earning Forecast
3 Management Strategy

4 Topics
Copyright(c) 2020 F-TECH INC. All Right Reserved

31

Business Status ～New Model Startups Planned in the First Half of 2020～
HONDA

GM

China

NISSAN*Excerpted

CR-V

CIVIC

UR-V

North America

CRIDER
HEV

XR-V
EV

CITY

K226
BUICK(HEV)

FIT

Note/RVR

TLX

Japan
FIT series

Asia
CR-V HEVACCORD

Copyright(c) 2020 F-TECH INC. All Right Reserved32Underbody Parts for TOYOTA
North America

Japan

TOYOTA
Underbody parts
awardedTOYOTA
Underbody parts
awardedAsia

TOYOTA
Underbody parts
awarded*Press release in November 2019

On the top of above, we have received additional new model parts business from Toyota!
We will enhance the sales activities of underbody parts globally and strive to focus on further businessexpansion.
Copyright(c) 2020 F-TECH INC. All Right Reserved

33

Executing 14th Mid-Term Plans (Acquires Equity stake in VEEGEE of India)
Company NameVEEGEE Auto Components Private Limited

Location

Ahmedabad, Gujarat, India

Amount ofInvestment

342,940,000 INR （Approx. 488Million Yen※）

Investment ratio
Capital after theinvestment

At Head office on October 29, 2020

VEE GEE INDUSTRIAL ENTERPRISES PVT.LTD. 74%
F.Tech Inc.
26%
993,740,000 INR (Approx. 1,414Million yen*) after our final investment

Business Lineup

Manufacturing and sales of Automotive parts(Body parts , Pedal parts, Chassis parts)

Main customers

SUZUKI MOTOR GUJARAT PRIVATE LIMITED*1INR=1.4229 (Converted with the exchange rate of September 24,2020)

We place India business as the 3rd pillar after North America and China.
Copyright(c) 2020 F-TECH INC. All Right Reserved

34

34

Initiative for Sustainable Growth ～CSR, ESG～
【Initiative for quality】【Initiative for improvements ofmanufacturing technology】

Kuki plantAwarded 2 years in a row

Quality Excellence Award“Prize for creativety” Awareded by the
Minister of Education, Cultuer, Sports,
Science and Technology

F&P MFG DE MEXICO,S.A. DE C.V.
■Received from GM MEXICO
We will strive to meet the requirements of our customers
by raising the quality awareness of each employee.

■Received Prize for creativity from the Minister of Education, Culture,
Sports, Science and Technology
Kameyama plant
Kuki plant （2 consecutive years） /Kameyama plant （3 consecutive years） Awarded 3 years in a row
Copyright(c) 2020 F-TECH INC. All Right Reserved

35Initiative for Sustainable Growth ～CSR, ESG～
Work-life balanceSocial contribution【Mask donation activity】

We received “Work-life balancepromotion award 2020” from Kameyama city

Thoughtful return giftfrom FTW

Saitama prefectural office(8,000 masks)
Letter of appreciationfrom Mie prefecture andKameyama city
Kuki city office（10,000
masks）【Evaluation items】
 How many paid time offs were used (use rate)
How many associates used child care leaves (use rate)
How many associates used nursing leave (use rate)
 Activities to reduce long working hours
 Activities to promote to use paid time offs
 Activities to create work environment where both men
and women can comfortably work, etc.
Excerpted

Total 33,000 masks were donatedDespite the challenging environment, we will continue to work torecover a safe daily life and vibrant social and economic activities as soon as possible.
Copyright(c) 2020 F-TECH INC. All Right Reserved

36

COVID-19 Impact Due to the outbreak of the COVID-19 in January 2020, travel restrictions have beentaken place around the world to prevent the spread. In the automobile industry,
production was suspended and there was a mood for voluntary restraint, which possibly
trigged to lower automotive demands. Global F-tech group has been affected, and its
production and sales of the products were suspended.

 The Group has been building the system that allows flexible changes in production
allocation by introducing general-purpose equipment in order to keep the capital
investment and costs under control.
 Based on the impact of COVID-19, we will respond continue to make every effort to fulfill
our responsibilities to deliver our products to the customers by understanding changes ofthe situation accurately and responding in a timely manner.
Copyright(c) 2020 F-TECH INC. All Right Reserved37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) 2020 F-TECH INC. All Right Reserved

Copyright(c) 2020 F-TECH INC. All Right Reserved

Appendix ～Consolidated Balance Sheet(FY Mar 2020 results)～
Mar. 2020

Mar. 2021

ActualForcastChangesCash and Deposits

8,880

7,571

▲ 1,309

Notes and AR

27,95528,9551,000

Inventories

19,09419,0940

Others

3,028

3,236

208

58,95758,856▲ 101

66,71465,242▲ 1,472

363

363

▲0

8,004

8,553

549

Non-current Assets

75,082

74,158▲ 924

Total Assets

134,039

133,014▲ 1,025

Current Assets
Property,plant and equipment
Intangible assets
Investment and others

Mar. 2020

Mar. 2021

ActualForecast

Changes

Notes and AP

17,427

17,250▲ 177

Short-term loans
Current portion of Longterm loan
Others

20,396

21,971

1,575

9,740

8,194

▲ 1,546

7,850

7,640

▲ 210

Current Liabilities

55,41355,055▲ 357

Long-term loan

19,147

21,108

1,961

Others

5,186

4,363

▲ 823

24,33325,471

1,138

79,74680,526781

41,914

40,109▲ 1,805▲ 1,778▲ 1,778

0

14,157

14,1570

Non-current Liabilities
Total Liabilities
Total Shareholders' Equity
Accumulated Other
Comprehensive Income
Non-controlling Interests

Interst-bearing debt

51,34253,0301,688

Total Net Assets

54,29352,488▲ 1,805

Interest-bearing debt ratio

38.3%

39.9%

1.6%

Total Liabilities and Net Assets

134,039

133,014▲ 1,025

Copyright(c) 2020 F-TECH INC. All Right Reserved

40Appendix ～Consolidated cash flow statement (FY Mar 2020 Results)～
FY Mar 2020

FY Mar 2021

ActualChanges

20,000

Forecast

10,540Cash flow frominvestment activities▲ 11,961▲ 9,355

2,606

3,346

185

▲ 3,161

Cash flow fromfinancial activities
Translation
adjustments
associated with Cashand cash equivalents
Net change of Cashand cash equivqlents
Beginning balance ofCash and cash
equivalents
Ending balance ofCash and cash
equivalents

Investment ＣＦ

15,000Cash flow fromoperating activities

8,085

Operating ＣＦ

10,540▲ 2,455

Free ＣＦ

10,000

8,085

5,000

0

▲ 236

▲ 223

FY Mar 202013

▲ 1,421FY Mar 2021

▲ 1,270▲ 5,000

1,688
7,192

▲ 1,3098,880▲ 2,997▲ 10,000

1,688▲ 15,000

8,880

7,571

▲ 1,309▲ 9,355▲ 11,961▲ 20,000

Copyright(c) 2020 F-TECH INC. All Right Reserved

41

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

218.7 Billion JPY (March 2020)

Number of
Employees

Group total 8,750 (F-tech only: 1077)

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, 2020

Copyright(c) 2020 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
Branch establishedF&P Mfg (Canada)
Dyna-Mig operation begins
PT.F.TECH INDNESIA
operation
begins
1996
1978
1964
2012 established
Listed on over-the-counter market
Renamed to
F&P MFG.DE MEXICO established1995
Fukuda Press
2011
NissanShataibusiness
startsF.tech R&D (Guangzhou) INC established.
1959 Kogyo
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
parts production begins
Mitsubishi, Suzuki business starts
2001
begins.
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) 2020 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) 2020 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) 2020 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) 2020 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) 2020 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) 2020 F-TECH INC. All Right Reserved

Technological Alliance in India

Company Name VEEGEE INDUSTRIAL ENTERPRISES Pvt. Ltd.

Established
Number of
employees

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) 2020 F-TECH INC. All Right Reserved