Financial Results for the Fiscal
Year Ended March, 2020
May 12, 2020
F-TECH Inc.
TSE 1st Section ：7212
https://www.ftech.co.jp
Copyright(c) 2020 F-TECH INC. All Right Reserved1Regarding the impact of COVID-19
At this point in time, it is difficult to calculate theimpact of COVID-19 rationally, and to foresee ourfinancial situation in the future.

Therefore, the detail of 14th Midterm businessplan, which starts with this business term, and theforecast of March FY 2021 have not been readyyet.
When the information becomes available, we will
disclose it in a prompt manner.
Copyright(c) 2020 F-TECH INC. All Right Reserved

2

Table of Contents

1. Financial Summary
2. Management Strategy
3. Topics

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

3

Table of Contents

1. Financial Summary
2. Management Strategy
3. Topics

Copyright(c) 2020 F-TECH INC. All Right Reserved4Consolidated Financial Results Overview (Year on Year)（Unit ：Million Yen）

FY ended Mar. 2019 Actual

FY ended Mar. 2020 Actual

Difference

235,361

100.0%

218,712100.0%▲16,649▲7.1%

Operating profit

6,580

2.8%

4,088

1.9%

▲2,492▲37.9%

Ordinary profit

5,968

2.5%

2,764

1.3%

▲3,204▲53.7%

Profit Attributable toowners of parent

2,844

1.2%

328

0.2%

▲2,516▲88.5%

Earnings per share(Yen)

152.30

―

17.58

―

▲134.72▲88.5%

Sales

Foreign Exchange Impacts

FY Mar. 2019

FY Mar.2020

Difference

1US$

111.08 yen

108.95 yen▲2.13 yen

1CAN$

84.48 yen

81.67 yen

▲2.81 yen

1Yuan(RMB)

16.64 yen

15.82 yen

▲0.82 yen

Decrease in sales and profit (Decreased sales: due to decrease of orders and foreign exchange impact,
Decreased profit: due to decrease of sales and COVID-19 impact)
Copyright(c) 2020 F-TECH INC. All Right Reserved5Consolidated Sales （Year on Year）（Unit：%）（Unit ：Million Yen）

Consolidated Sales by Segment
235,361

200,000

100,000

0

Japan,
33,001

Sales Share（%）

218,712
Japan,
26,126

Japan,
14.0%

Japan,
11.9%（Japan）▲2.1%
decrease

N.America,
136,450

N.America,
133,454

N．America,
58.0%

N．America,
61.0%（N. America）
3.0%
decrease

Asia,
65,909Asia,
59,132

Asia,
28.0%

Asia,
27.0%

（Asia）▲1.0%
decrease

FY Mar.2019

FY Mar.2020

FY Mar.2019

FY Mar.2020

Change in Consolidated SalesFY Mar 2019

FY Mar 2020

Difference

Difference(%)

FX Impacts

Real
Difference

Difference(%)

Japan

33,001

26,126▲6,875▲20.8%－▲6,875▲20.8%

N. America

136,450

133,454▲2,995▲2.2%▲3,322

325

0.2%

Asia

65,90959,132▲6,776▲10.3%▲2,054▲4,722▲7.2%

Consolidated

235,361

218,712▲16,648▲7.1%▲5,376▲11,272▲4.8%

Overseas segments contributed to 88.1% of consolidated sales. Sales in Japan and Asia considerably decreased. North
America picked up the results of full-year production of newly awarded contracts.
Copyright(c) 2020 F-TECH INC. All Right Reserved

6

Operating profit by Segment （Year on Year）（Unit：Million Yen）

Operating profit
FY Mar2019

FY Mar2020

ActualActualDifference

Share
Difference(%)

FY Mar2019

FY Mar2020

ActualActualDifference

Japan

921

▲683

▲1,604▲174.1%

14.0%▲16.7%▲30.7%

N. America

▲54

367

422

ー

▲0.8%

9.0%

9.8%

Asia

5,275

4,365

▲909

▲17.2%

80.2%

106.8%

26.6%

Total

6,142

4,050

▲2,091▲34.0%

93.3%

99.1%

5.7%

Adjust

438

37

▲401

▲91.5%

6.7%

0.9%

▲5.7%

Consolidated

6,580

4,088

▲2,492▲37.9%

100.0%

100.0%-

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

7

7

Operating Performance by Segment (Japan)
33,001

Change▲6,875

Change %▲20.8%FX Impact―

26,126

FY 2019（Unit：Million Yen）

Operating Profit

Sales

Real Change▲6,875

Change%▲20.8%FY 2020▲683

921

FY 2019

Reason of change

FY 2020

Change▲1,604

Change %▲174.1%FX Impact―

Real Change▲1,604

Change %▲174.1%

Reason of change▲6,7901

Product sales decrease

Machine and Tools sales to Gr. Companies increase

2,620

2

Machine and Tools sales increase3

Technical services income decrease （Royalty, Development fee）

▲533

3

4

Domestic subsidiaries sales decrease▲958

Technical services income decrease（Royalty, Development fee）

4

Domestic subsidiaries sales decrease▲45

Elimination of Intercompany sales

5

SG&A expense increase▲70

1

Product sales to main customers decrease2▲1,215▲6,875

Total

Quarterly Change
7,218 7,514

7,890 6,680

1Q

2Q

9,374

5,545

3Q

Last Year
This year
8,518 6,385
4Q▲1,207233▲557▲1,604

Total

27

62

Quarterly Change
592
204

▲ 495

Last Year
This Year
97
70
▲ 320

Decrease in sales and income （Decreased sales: due to volume reduction at main customer, Decreased profit: mainly due tosales reduction and royalty reduction)
8
Copyright(c) 2020 F-TECH INC. All Right Reserved

8Operating Performance by Segment (N. America)
Sales
136,450

133,454

Change▲2,995

Change %▲2.2%▲3,322

FX Impact

FY 2019（Unit：Million Yen）

Operating Profit

Real Change

325

Change %

0.2%

▲54

367

FY 2019

FY 2020

Change422

Change%▲773.8%FX Impact▲7

Real Change

429

Change %▲786.5%FY 2020
Reason of change

Reason of change

1

Product order decrease(HM)▲4,133

1

Product sales increase2

Product order increase(Tesla)

3,468

2

Machines and tools sales decrease

▲262

3

Other customers order impact

1,995

3

GM strike, COVID-19 , SEC232 impact

▲105

4

Machines and tools sales decrease▲1,004

4

Cost reduction, other182

5

FX impact▲3,322

5

FX impact▲7▲2,995

Total

34,09532,760 32,846

34,904 32,098

1Q

2Q

3Q

Total

34,689 32,362

Last Year
This Year
4Q

614

422

Quarterly Change

Last Year

649
437
▲ 125
1Q

▲ 193 ▲ 254▲ 173 ▲ 80

2Q

3Q

53
4Q

Decrease in Sales, but increase in profit (Sales: HM reduction was offset by other OEMs,
Profit: Although negative impact from previous term has been solved, profit declined due to COVID-19 effect）
9
Copyright(c) 2020 F-TECH INC. All Right Reserved

9Operating Performance by Segment (Asia)
Sales
65,90959,132

FY 2019（Unit：Million Yen）

Operating Profit
Change▲6,776

Change %▲10.3%

Change %▲17.2%FX Impact▲2,054

FX Impact▲217

Real Change▲4,722

Real Change▲691

Change %▲7.2%

FY 2020

5,275

Change %FY 2019

Reason of change▲909

Change4,365▲13.1%FY 2020
Reason of change

1（China） Product sales to main customer decrease▲1,658

1（China） Product sales to main customer decrease2（Asia） Product sales to main customer decrease▲3,0652（China） Subsidy for the investment

3

FX impact▲2,054

3（Asia） Product sales to main customer decrease

▲631

4

FX impact▲217▲6,776

Total

Last Year
This Year

16,796 14,403

1Q

Quarterly Change
16,632 14,764
15,949 14,686

2Q

3Q

15,278

4Q

139

▲909

Total

Last Year
This Year

16,530

▲200

1,477

1Q

899

Quarterly Change
1,332 1,028

1,171 1,191

1,293 1,245

2Q

3Q

4Q

Decrease in Sales and profit (Decreased sales: due to production reduction at main customer (model mix was changed), andFX impact, Decreased profit: due to sales reduction)
10
10
Copyright(c) 2020 F-TECH INC. All Right Reserved

Changes in Operating Profit
Japan

N. America

Decrease Increase

Asia（Unit：Million Yen）

6,580
Sales
Increase
352
Sales
Decrease▲1,531

other
77
other
139

other
▲74

Sales
Decrease▲831

Consoli.
adjustment
▲401

4,088
FX
Impacts▲224

FY 2019
Actual

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

11

11

Sales changes by Customer
100%
90%
80%

196,343

197,941

3.8%
3.2%

3.5%
2.9%

10.9%

12.0%

226,029

235,361

221,000

218,712 (Unit: Million)
Others

1.6%

3.5%
2.8%
2.7%

11.4%

3.4%
2.7%

12.9%

2.1%
4.5%

2.9%
4.7%

FCA

4.5%

4.7%

Mitsubishi

13.1%

12.7%

70%
60%

77.6%

76.4%

75.2%

NissanToyota
Tesla

72.0%

69.7%

70.0%

GM
Honda

50%
Honda
GM
Tesla
ToyotaNissanMitsubishi
FCA
Others

FY2016FY2017FY2018FY2018FY2020(Plan)

FY2020(Actual)FY Mar 2016

FY Mar 2017

FY Mar 2018

FY Mar 2019

FY Mar 2020

FY Mar 2020(Actual)

152,435
21,345
6,204
7,435
1,803
7,121
196,343

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

170,089
25,782
3,661
6,428
7,957
2,648
1,010
8,454
226,029

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

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

154,074
28,92910,055
6,828
4,543
2,457
1,761
12,353221,000

153,004
27,71910,211
6,471
6,275
2,597
1,686
10,749218,71212

12

Financial Position
Total Asset

Capital Investment
160,000

140,000（Unit: Million Yen）

Depreciation

Interest-Bearing Debt

Interest-Bearing Debt Ratio

50.0%

40.9%

38.3%

40.0%

59,12951,342 30.0%

120,000
100,000

Million Yen

80,000MillionYen

60,00040,000

10.0%

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

20.0%

FY 2016

FY 2017

FY 2018

FY 2019

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

144,420
14,094
10,33559,12940.9%150,525
12,435
11,66659,51039.5%

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

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

FY 2020(Plan)
136,717
12,374
10,94450,29636.8%

FY 2020(Actual)134,038
12,238
10,89051,342
38.3%
13

0.0%

13

Dividend
FY Mar 2020 Forecast
End
of Q1

End of Q2

End
of Q3

End of Q4

Total

PayoutRatio

FY Mar 2020
Dividend Forecastー

10 Yenー

10 Yen20 Yen113.7%(FYI)FY Mar 2019 Actualー

10 Yenー

10 Yen20 Yen13.1%

Difference(Year on Year)

ー

ー

ー

ー

ー

100.6%

Dividend Policy
F.tech’s basic policy regarding the profit distribution is based on the business performance. Along withreinforcing our financial characteristics, we will review profit situation and future business opportunities froma long-term perspective, and distribute profit back to shareholders. Our payout ratio target is 10% or
greater of the “Net profit attributable to parent company shareholders”, and it is paid out twice a year –middle and end of the year.
Copyright(c) 2020 F-TECH INC. All Right Reserved

14

14

Table of Contents

1. Financial Summary
2. Management Strategy
3. Topics

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

15

Previous Midterm Three-Year Plan - Basic policy Corporate Policy
Mar 2017

Mar 2018

Mar 2019

Mar 2020
Achieve strong financial
positions and high profitability

Actuals

TargetConsolidated Sales
Operatingprofit ratio

197.9 B Yen

Consolidate
d Sales

212.0 B Yen

Operatingprofit ratio

Interest bearing
debt ratio

Interest-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

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16

Previous Midterm Three-Year Plan: Actual ～Management Objectives～
Operating Profit

Sales
Sales(Plan)

Sales(Actual)

Billion Yen
220.0

209.0 226.0

197.9

200.0

235.3

207.0

Billion Yen

212.0 218.7

Operating Plofit(Plan)

Operating Profit(Actual)

Operating Profit Ratio(Plan)

Operating Profit Ratio(Actual)
10.0%
10.5

12.0
10.0

8.0

6.8

8.0

180.0

8.0%
6.5

4.1%

6.0

160.0

9.0

8.0

5.0%

4.3%

3.8%

6.0%
4.0

4.0%

4.0

140.0

3.0%

2.0

120.0

2.0%

2.8%
1.9%

0.0

100.0

FY Mar 2017

FY Mar 2018

FY Mar 2019

FY Mar 2020

16

Investment(Plan)

14.1

FY Mar 2019

13.7
12.4

Total Assets(Plan)
Interest-Beaing Debt(Plan)
Interest-Bearing Debt Ratio(Plan)

Investment(Actual)

13.0

Billion Yen

12.2
11.0

12

8.0
8
4
0

FY Mar 2017

FY Mar 2018

0.0%

FY Mar 2020

Interest-Bearing Debt Ratio

Investment plan
Billion Yen
20

FY Mar 2017

FY Mar 2018

FY Mar 2019

FY Mar 2020

160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0
0.0

146.9 150.5

144.4

Total Assets (Actual)
Interest-Bearing Debt(Actual)
Interest-Bearing Debt Ratio(Actual)140.0 137.0

39.5%

140.0

60.0%

134.0

39.0%

38.3%

40.0%
40.9%

39.5%
59.5
58.0

59.1

35.0%

33.7%

46.2
54.6

51.3

20.0%

49.0

0.0%

FY Mar 2017

FY Mar 2018

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

FY Mar 2019

FY Mar 202017

Previous Midterm Three-Year Plan: Actual ～Plan vs. Actual～
Midterm Three-Year Plan: the 3rd Year Plan vs. Actual
Midterm 3rd Year PlanFY 2020 Actual

Sales

212.0

218.7

Operating Profit

10.5

4.0

Investment Plan

11.0

12.2

Interest-bearing Debt

49.0

51.3

35.0%

38.3%

（Unit: Billion Yen）

Investment-bearing Debt Ratio

Evaluation

〇
×
△
△
△

Sales are on plan. Investment, Interest-bearing Debt, and Interest-bearing Debt ratio aremostly on plan. Operating Profit has significant gap to the plan and, the recovery plans
have been taken place.
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18

Previous Midterm Three-Year Plan: Actual ～Sales changes by Customer～100%

FY Mar 2017

FY Mar 2020

197,941

218,712（Unit：Million Yen）

FY Mar 2017

Others

90%
80%

3.5%
2.9%

2.9%
4.7%

FCA

12.0%

4.7%

Mitsubishi
Nissan12.7%

Toyota

70%
60%

Tesla

76.4%

Honda

151,282

153,004

Other
OEMs

46,65965,708

GM

70.0%

Share

Honda

50%
FY Mar 2017
FY Mar 2017

Honda
GM
Tesla
ToyotaNissanMitsubishi
FCA
Others151,282
23,683
247
5,658
6,985
2,036
71
7,979
197,941

FY Mar 2020
FY Mar 2020(Actual)

153,004
27,71910,211
6,471
6,275
2,597
1,686
10,749218,712⇒ FY Mar 2020
Sales
（Million Yen）

Honda

76.4%

70.0%

Other
OEMs

23.6%

30.0%

Sales expansion to other OEMs has been successful
While Honda sales are increasing, the share of other OEMs are growing as
well

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19

Previous Midterm Three-Year Plan: Actual ～Gap to Operating Target～

Change factors to Operating profit by segment
FY 2020
Operating profit
Target10.5 B Yen

External Environmental Changes

Internal Environmental Changes

・Automobile market change,
Sluggish growth・Tight labor market
・Sign of slowdown in economic
growth of China and the US.
・Closing of main customer plant

・Productivity decrease in
North American plants

FY 2020
Operating profit(Unit: Billion Yen)

▲6.5 B Yen
Gap

China
1.0

N. America▲4.5

4.0 B Yen
Japan
▲2.2

Asia
▲0.7

FX
▲0.02

Others▲0.06

We have to urgently reinforce the productivity and profitability in N. America and to manage the income decrease in Japan and Asia.
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20

Previous Midterm Three-Year Plan: Actual ～Financial position～
Total Asset
Interst-Bearing Debt

Capital Investment
Interst-Bearing Debt ratio

Depreciation

160,000（Unit：Million）

40.0%

・Investment for the order of new models
・Expansion of capacity for the increased
production⇒3 Year Average: 10.9 Billion yen

30.0%

3 Year depreciation Average: within 11.4 Billion

140,000
120,000
100,000

yen

80,00020.0%

60,00040,000

10.0%

20,0000

FY Mar2017
Total Asset
144,420
Capital Investment
14,094
Depreciation
10,335Interst-Bearing Debt
59,129Interst-Bearing Debt ratio 40.9%

Capital Investment

50.0%

FY Mar2018
150,525
12,435
11,66659,51039.5%

FY Mar2019
137,010
8,056
11,72046,22033.7%

FY Mar2020
134,038
12,238
10,89051,34238.3%

0.0%

Reason for Increase in Interest-Bearing Debt

・Increase of lease obligations due to theapplication of new lease accounting policy（Approximately 1.3 Billion yen ）・Liquidity on hand provide against the
impact of spread of COVID-19（Approximately 2.5 Billion yen (NA)）⇒Interest-Bearing Debt balance: 47.5
Billion yen
Target: 49 billion yen or less

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21

Previous Midterm Three-Year Plan: Actual ～Status of subsidiaries in N. America～
IssuesCost increased
Labor, Outsourcing+ associated expenses

Loss increased
Scrap/Additional
inspections

Lowered productivity
Additional outsourcing

Countermeasures

Challenges

 Consolidate warehouses, Line layout change⇒to improve internal flow of the plantChangeto in house operation gradually in FY2019
Bring back to in house Reduce continuously by improving efficiencies andManpower reduction
logistics

Logistics improvement

Cost
reduction

Improvement of
manufacturing accuracy
Scrap reduction

Lossreduction

Productivity
increase

Improve associates’
capabilities
Automation

Profitability
was lowered

Completed activities

 Send technical experts from Japan for training⇒Develop skilled associates (Die maintenance, etc.)
 Improvement of stamping accuracy to reduce loss Provide trainings by support associates from Japan Change temporary to fulltime employees Weld line was partially automated (inspection, parts
exiting area)

Various activities have been in pace and gradually show the results.
Production at customers are fluctuating, and external environment ischanging.
Copyright(c) 2020 F-TECH INC. All Right Reserved

Activities are
ongoing22

Previous Midterm Three-Year Plan: Actual ～Status of subsidiaries in Japan and Asia～
Issues

Impact to P&L

Challenges and activities


Sales volume
not growing
Efficiencies of
productionlines declined

Sales
leveled offIncrease of fixed costs
 Reduce fixed costs (consolidate warehouses, etc.)and Reduce investment
depreciation


Turnover ratio
increased

Respond to localization ⇒Expand sales with existingcustomers
Develop new customers
Diversified income sources ⇒Create new business
opportunities

Increase of labor costs Improve efficiency of SGA jobs→Improve productivity byconsolidating jobs
Improve efficiency of production lines→Reduce direct
associates
Continued kaizen activities → Automation, efficiency
improvement

Expansion of sales in Japan and Asia segment has been promoted as well. Fix costs and other expenses are
reduced, and various activities to improve efficiencies are taken place in order to strengthen earning power.
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23

14th Midterm Business Plan ～Basic policy～
13th Midterm business plan

14th Midterm Business Plan

Achieve strong financial positions

Corporate policy：Let’s exceed out limits! We will, without compromise, produce the “Best One” for all ourcustomers

Reinforce the free cash flow
operation

66th term (FY2020)

67th term (FY2021)

68th term (FY2022)

The goal on Interest-bearing debt
ratio was almost achieved

Maximize group
efficiency
Goal

Achieve high profitability

Common attitude that all F-tech group associates should have

・Productivity

Better than Ever・Efficiency

Sales increase with diversification ofcustomers was achievedbutchanges＞＜Business environmental
・Trade environment
・Automobile market
・Tight labor market＜Internal environmental changes＞

Back to Basics～Master what you suppose to do～

Turning positive●Achieve profit at all facilities●Evolution of the simulation●Revival of domestic facilities

・Decreased production efficiencies,
Increased cost

Resulted in low profitability

・Profitability（Including
the quality）
・FCF

Manpower efficiency
Year on year: ▲ 1 point
Automated inspection device
performance confirmation
Scrap to sales ratio
Year on year: 0.1% or less

Challenge for New～Challenge to create new value～●Acquire new customers●Challenge in new regions●Create new business opportunities

Copyright(c) 2020 F-TECH INC. All Right Reserved24Current status due to COVID-19 impact
As of May 11thJapan
Main customer status

Production status

Employment status

Restart plan

Shipping/Operation

Employment(Direct/SGA)

Plant
Production

Kuki

×

Kameyama△

・Restart planned after
May 10th.

・Temporarily suspended,however, normal
operation has been
resumed.

・Shipping being made based on
customers’ situation.
・Overseas shipments not affected,
other lines are down depending on
situation.

・Shipping being made based on
customers’ situation.

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

・SGA associates are either
working from home or on
staggered shifts.
・Line associates’ schedule isadjusted based on which lines are
running.
・SGA associates are either
working from home or on
staggered shifts.

25

Current status due to COVID-19 impact
North America

As of May 11th

Plant

Main customer status

Production status

Employment status

Shipping/Operation

Employment (Direct/SGA)

CanadaU.S.A
MexicoProduction

Restart plan×・Production has beensuspended since end of March.
・Shutdown extended throughmid or end of May.

・Operation has been suspended
due to customers’ shutdown.
・Preparing for restart planned in
mid May.

・Basically furlough・Rehiring depending on thesituation.

×・Production has beensuspended since end of March.
・Partially resume in mid May,and other resume in end of May.

・Operation has been suspended
due to customers’ shutdown.
・Limited associates coming to work.
・Preparing the environment forrestart.

・Basically furlough
・PTO.
・Based on associates’ levels.

・Production has beensuspended since end of March.
・Shutdown extended throughmid May.

・Operation has been suspended
due to customers’ shutdown.
・Preparing for restart planned in
mid May, but still under negotiation
since automotive industry is notexempted from shelter in placeorder.

・Continuous employment

×

Copyright(c) 2020 F-TECH INC. All Right Reserved26Current status due to COVID-19 impact
China and Asia

As of May 11th

Plant

Main customer status

China
ThailandPhilippines
Indonesia

Production status

Employment status

Shipping/Operation

Employment (Direct/SGA)○

・Already resumed.
・Full production in April and
May is planned.

・Production has been resumed based on
customer’s situation.

・All SGA associates returning towork including expats at
Zhongshan. .
・All associates but expats returning
to work.

△・Production has beensuspended since end of March.
・Some customers resume in
beginning of May, othercustomers remain shutdown
through end of May.

・Production has been suspended basedon customer’s shutdown.
・Some customers remain shutdown
through beginning or mid May.

・Continuous employment
・Stay at home

・Production has beensuspended since end of March.
・Shutdown extended throughmid May.

・Operation has been suspended basedon customers’ shutdown.
・Limited associates coming to work foroverseas shipments.

・Continuous employment
・Coming to work is prohibited

・Production has beensuspended since beginning ofApril.
・Restart planned in June

・Operation has been suspended basedon customers’ shutdown.

・Continuous employment
・Stay at home

Production

××

Restart plan

Copyright(c) 2020 F-TECH INC. All Right Reserved27

Table of Contents

1. Financial Summary
2. Management Strategy

3. Topics

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

28

Business Status - New model startups planned in 2020 HONDA※Abstract

NISSANMITSUBISHI

2Q

3Q

FREED

FIT series

SUZUKI

4Q
HONDA
e(EV)

RDX,
INSIGHTNorth America

Asia

TOYOTA

1Q

HONDA
Japan

China

GM

CIVIC

XR-V

ELYSION

XR-V
Carry over

CR-V
Rebadge

AccordAVANCIER

CRIDER

CITY

General Motors

North America

Cadillacc CT5
GMC

China

Chevrolet

Buick Excelleetc

Cadillacc CTS

K228(K series)

BUICK
Excelle, etc.

OTHER
North America
China
Asia

Chevorolet
Cadillacc XT6Buick Excelle
etc.
K229
(K series)

Cadilac
XT6

BUICK
Excelle etc.

TOYOTA
SILPHY
L300

ALTO

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

BREZZA

29

Underbody Parts for TOYOTA
North America

Japan

Asia

TOYOTA
Chassis Production
awardedTOYOTA
Chassis Production
awardedTOYOTA
Chassis Production
awardedUnderbody parts have been awarded in North America, Japan, and Asia!
We will reinforce the relationship with Toyota, and strive to expand business opportunities.
Copyright(c) 2020 F-TECH INC. All Right Reserved30Research & Development Capability< F-tech's unique development technology >Achieving optimum design byintegrating existing know-hows andsimulation technologies

Improving
design accuracy
Achieving the design including
following aspects
・Product performance (strength,
rigidity, vibration)

・Production area
(Stamp, Weld, Paint）

Furtherweight reduction

Improvingdevelopment speed

Space beam analysis

・Minimize prototype
・Improve design accuracy

Balancing strength, rigidity, andcrash performance with weight
reduction

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

Reducing development period by
2 months31Collaboration
Collaboration with material
manufacturers-Material evolutionExpanding the grades (Ultra high tensile steel)

590/780 ⇒ 980/1180

Product specification/shape based on thematerials and processes
・Crash performance
・Rigidity (Steeringstability/Noise
vibration)
・Strength
leading to optimum
structure

Body frame parts◆Material
・Steel : Mainly High Tensile
Strength Steel(780～980Mpa class)◆Welding
・Mainly Resistance welding(Spot/Projection Weld)

Collaboration with Body manufactures-Processing technology
Chassis Suspension parts
・Forming method◆Material
・CAE/Prediction technology ・Steel ：Mainly Thicker Steel(270～590Mpa class)・Material knowledge◆Welding
・Evaluation indicator・Mainly MIG welding(With projection welding)

We integrate both companies’ Know-Hows,
and challenge to provide new value.
Copyright(c) 2020 F-TECH INC. All Right Reserved

32Initiative for sustainable growth ～CSR, ESG～
【Initiative for quality】
F-Tech Zhongshan
Inc.

Quality
Excellence
Award

F&P Mfg【Initiative for improvements ofmanufacturing technology】

Quality, Delivery,
Environment Awards

F&P Mfg(Dyna-Mig)
Service parts delivery quality
Award
F&P MFG DE
MEXICO,
S.A. DE C.V.
Quality award
F.TECH PHILIPPNESMANUFACTURING INC.
Delivery award
Cost performance award“Super”monozukuri parts grand prize
Mobility related parts prize awardedAwarded by theCommendation for Scienceand Technology by the
Minister of Education,
Culture, Sports, Scienceand Technology
The Prize for Creativity

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

33Initiative for sustainable growth ～CSR, ESG～
【Initiative for environments】
th

Oct 11 , 2018： Invited to speak at"Energy Efficiency Nation Partnership (EENP)
awards 2018" hosted by Ministry ofEnvironment and Water resources, Singapore

Sai-no-Kuni Saitama Environment grandprix 2020 awarded Business person
category “Incentive Award”“Sai-no-Kuni Saitama Environment grand prix”
recognizes outstanding efforts by individuals,
prefectural groups, and businesses to cultivateawareness of environmental conservation andpromote actions.

Awarded activities
・F-tech’s reforestationprogram

・Bizenbori river clean-up
activity

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

34

Initiative for sustainable growth ～CSR, ESG～
【Participation of technology exhibitions】
Automotive Engineering
Expo. In Yokoyama

May 22nd to 24th
 Venue : PACIFICO Yokohama Detail : Booth exhibit

Automotive Engineering
Expo. In Nagoya

Interaction with companies inother fields
There is technology F-tech hastaken for granted, but it isinimitable unique expertise

July 17th to 19th
 Venue : Portmesse Nagoya
 Detail : Booth exhibit

Develop into specificbusiness opportunities
F-tech demonstrates “Processing” and “Die” technologies to gain publicity andboost corporate brand in order to acquire new business opportunities.
Copyright(c) 2020 F-TECH INC. All Right Reserved

35Initiative for sustainable growth ～CSR, ESG～
【Relationship with local society】
Kameyama

Mexico・Distribute school supplies to children

・Received a courtesy visit from Mie
prefectural governor.

・Plant trees as part of environmental ・Recognized as a “Company who promotes
activities
activities to improve work practices in Mie”

Kuki

・Celebrated its 40th anniversary
in KukiF-tech group is connected with local communities globally and promotes humanresource development, forestation, and activities to make social contributions.
Copyright(c) 2020 F-TECH INC. All Right Reserved

36Initiative for sustainable growth ～CSR, ESG～
Social contribution

Initiative for human rights【Opportunities for senior citizens to be active,
providing support for nursing care and child rearing】【Manufacturing technology
education】
・Plant tour for elementary school students
・Work experience for high school students Plant tour for elementary
・Research activities for college students
school students
・Trainings for technical school teachers
・Technology observation groups, etc.

【Scholarship foundation】
・37 students received F-techscholarship
We are introduced as a company who
promotes activities to improve work
practices on Womenomics website in
Saitama prefecture.

【Environmental conservation activities in local
society】
・Participate in the activity to create/maintain forests
・Volunteer cleanup activity in community

F-tech group complies with ESG and CSR, and support initiative for humanrights and social contributions.
Copyright(c) 2020 F-TECH INC. All Right Reserved

37

The COVID-19 impact～ Due to the outbreak of the COVID-19 in 2020 January, travel restrictions have been taken placearound the world to prevent the spread. In the automobile industry, production has beensuspended and there has been a mood for voluntary restraint, which possibly triggers to lower
automobile demands. Global F-tech group has been affected, and its production and sales of the
products have been suspended.
 F-tech group is making preparations to resume production and shipments quickly and flexibly
when the COVID-19 is settled down and our main customers resume mass production.
 We have established production structure to promote local production for local consumption inorder to reduce costs as well as consolidating partial production to maximize production
efficiencies. Based on the impact of the COVID-19, going forward, we will review our production
structure including the supply chain to ensure our responsibilities to meet with customers’
requirements
 Amid the COVID-19 crisis, we are implementing new work practices such as remote work
program and staggered shift structure. Even after the COVID-19 is settled down, we willcontinuously work on developing infrastructure for our associates to exercise their maximum
abilities by providing various flexible work practices.
Copyright(c) 2020 F-TECH INC. All Right Reserved

38

The future outlook and earnings forecasts in this document are made based on theinformation available at the moment, and they include potential risks and uncertainties.
As a result, please bear in mind that actual business performance may substantiallydiffer from the stated future forecasts 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. 2019

Mar. 2020

ActualActualChangesCash and Deposits

7,192

8,879

1,687

Notes and AR

33,667

27,955▲ 5,712Inventories

17,72819,093

1,365

Others

2,866

3,027

161

Current Assets

61,453

58,956▲ 2,497

66,392

66,714

322

343

363

20

8,822

8,004

▲ 818

Non-current Assets

75,55775,081▲ 476

Total Assets

137,010134,038▲ 2,972

Property, plant andequipment
Intangible assets
Investment and others

Interest-bearing debt

46,21951,342

5,123

Interest-bearing debt ratio

33.7%

38.3%

4.6%

Mar. 2019

Mar. 2020

ActualActualChanges

Notes and AP

22,83817,427▲ 5,411

Short-term loans

12,65020,395

7,745

Current portion of Longterm loan

12,6609,740▲ 2,920

Others

8,854

7,849

▲ 1,005

57,002

55,412▲ 1,590

Long-term loan

19,72819,146▲ 582

Others

3,449

5,187

1,738

23,177

24,333

1,156

80,17979,745▲ 435

Total Shareholders’ Equity

42,127

41,914▲ 213

Accumulated Other
Comprehensive Income▲ 282▲ 1,778▲ 1,496

Non-controlling Interests

14,985

14,156▲ 829

56,83154,292▲ 2,539

137,010134,038▲ 2,972

Current Liabilities

Non-current Liabilities
Total Liabilities

Total Net Assets
Total Liabilities and Net Assets

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

Appendix ～Consolidated cash flow statement (FY Mar. 2020 results)～
Mar. 2019
ActualCash flows from operating
activities

Cash flows from investment
activities

Mar. 2020
Actual23,141

10,539Changes▲12,602

30,00025,000▲11,961

Investing CF
Free CF

20,000▲6,820Operating CF

23,141

16,321▲5,141

15,000Cash flows from financial
activities▲6,820Translation adjustments
associated with cash andcash equivalents
Net change of cash andcash equivalents

3,345

18,195▲6,820

▲236

▲85

1,319

1,688

369

10,53910,0005,000
0FY Mar. 2019
▲ 5,000

Beginning balance of Cashand cash equivalents

5,871

Ending balance of Cashand cash equivalents

7,191

7,191

1,320

▲ 10,000
8,879

1,688

▲ 15,000

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

FY Mar. 2020
▲ 1,422▲ 6,820▲ 11,961

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 8,754 (F-tech only: 805)

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）

Global expansion（2000‐ current）

1987
2014
R&D NA Europe
Branch established2013
PT.F.TECH INDNESIA
established

1999
Daihatsu business starts
1997
F&P Mfg (Canada)
Dyna-Mig operation begins
1996
1978 operation begins
1964
2012
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
Kameyama plant mass production begins 1993
production 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) 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 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 facilities

N. America （6）China （2）Asia （3）

N. America （2） China （2）Europe （2）Asia （1）F-tech has 11 production plants and 7 R&D facilities in 9 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 tosupply our products globally
Copyright(c) 2020 F-TECH INC. All Right Reserved