Progress of 12th Medium-termManagement Plan
（From FY24 ｰ FY26）

F.C.C. CO., LTD.
(May 17, 2024)
Stock Code : 7296
Prime, Tokyo Stock Exchange
https://www.fcc-net.co.jp

Progress of 12th Medium-term Management Plan
Steadily promoting reinforcing the business foundation and business portfoliotransformation for the second founding

Evolution of structure
Expanding Sales

Development

DevelopmentⅡ

Development/On-site Capabilities

Second Founding:towards the brand-new FCC

On-site/Development Capabilities
Digital, New Businesses

Reinforcing the business foundation andbusiness portfolio transformation

Evolutionary phase for Clutch business
9th MTMP

10th MTMP

Transformation phase for the company and business11th MTMP

12th Medium-Term Management Plan

Business portfolio transformation

Reinforcing the business foundation
Corebusiness(clutch)

Enhancing profitability of motorcycle andautomobile businesses

Newbusinesses

Demand remained solid centered on India and Indonesia
Motorcycles

Automobiles

Expansion of market share through new orders from Indian customers
Increase in aftermarket sales at each location

Sustainability

Promoting solutions to ESG issues

Promoting growth investments andinjection of resources
Partial start of production

Preparation for mass production of key electric components and power units

Motorcycles

Maximize revenue through recovery of US market and strengthening structure

Despite sluggish Chinese economy there is a recovery trend in US market
Increased earnings by passing on inflationary costs to prices andstrengthening internal structure

Be a company
creates the value
demanded bysociety

Automobiles

India: Preparation for mass production of key electric components and power units
Japan: Installation of motor mass production test line

Preparation for mass production in motor core submodule market
China: Preparation for mass production in motor core submodule market
Japan: Preparation for installation of motor core mass production test line

Business development that contributes to carbon neutrality
Nonmobility

Development of energy saving and renewable energy measures

Preparation for mass production of ceramic setters (Scheduled launch: 2024)
Preparation of test line for LiB conductive auxiliary agent (Scheduled launch: 2025)

Engagement survey for HR strategy andpromotion of systematization of DX human resource development

All Rights Reserved. Copyright F.C.C. CO., LTD.

※MTMP=Medium-Term Management Plan1

Progress of 12th Medium-term Management Plan
Progress of key performance indicators● Due to the expansion of core businesses and the effect of the weakened yen, we expect
to achieve the Medium-Term Management Plan targets for revenue and operating profit
one year ahead of schedule.
● Promoting injection of resources and making the transition to preparation for partial
mass production for new business creation aimed at business portfolio transformation
12th MediumTerm
Management Plan
Final year targets(Announced in May 2023)

FY24

FY25

FY26

Results of 1st year ofMedium-Term
Management Plan

Forecast for 2ndyear of MediumTerm ManagementPlan

Forecast for 3rd year ofMedium-TermManagement Plan

Revenue (¥ billion)

234.0

240.3

238.0

239.0

Operating profit(¥ billion)

16.0

15.1

16.0

16.5

ROE

8.0%

7.1%

6.7%

7.5% or more

Total shareholders
return ratio

40%

40.7% 40% or more

40% or more

Business portfoliotransformation/
New business creation

Injection of resources
into growth areas
Transition topreparation for partial
mass production

Completion ofpreparation

Exchange rate (USD)
All Rights Reserved. Copyright F.C.C. CO., LTD.

135

144.63

Acceleration of
injection ofresources into
growth areas

140

Completion of
preparation forsecond founding1402Progress of 12th Medium-term Management Plan
Motorcycle business:
Promotion of expansion in all directions in core and new businesses

New businesses ｜CASE area｜

Core business ｜Clutch business｜
Strong demand, commercial rights acquired throughthe introduction of moderate to high-value-added
technologies, and earnings generally in line with plans
Overall market: Demand increased year on year

Markets

Strong centered on India and Indonesia
Movements toward the global south including
Brazil and the Philippines
Preparations aimed at a 70% share in theIndia market

F.C.C.

Expanding sales of moderate value models
with a view to next-generation markets
Activities to further reduce costs

Promotingpreparations formass production
for major OEMs

Key electriccomponents

Motor cores, etc.

Start of preparation Strengthening of local business
Motor assembly for mass production development system
Strengthening of sourcing
Launch of alliance
PCU
activities

Expansion of share in India

67%

End of12th MTMP

Maintained position
as a global market leader

Motor assembly, PCU/VCU

Production technology
support

Motor assemblyline

Data businessapplication services

Japan
Motor assemblymass production test lineIndia
Injection of facilityand humanresources

ASEAN

Motor coreproduction line

India supply
All Rights Reserved. Copyright F.C.C. CO., LTD.

Further added value

Power units

India

70%

India (ASEAN)

Building value chain and injecting resources

Promotion of global after market strategy

or moreMain battleground

Regional strategy aimed atshift to electrification

Aiming for local
production and sales
expansion in future

ASEAN supply

43

Progress of 12th Medium-term Management Plan
Automobile business:
Maximized revenue from core businesses and shifted resources to new businesses

Core business ｜Clutch business｜
Continued to maximize revenue through market
recovery and structural improvement measures●China: Sluggish economy

Markets●North America: Market recovery●Change in trend from ICE → BEV toICE → HEV → BEV

New businesses ｜CASE area｜
Transitioned to stage of preparation formass production in motor core submodule market
Promoted development of differentiated technologies,
made transition to preparation for partial mass production
Expanded motor core test lines in China and Japan
Continued to approach customers to secure orders
Injectedas growthinvestment(FY25)●Secured profits through optimizing production

F.C.C.

Japan ¥3.5 billion

Aiming to realize local

5 billion yen China ¥1.5 billion production and expand sales※Includingdevelopment
expenses

by taking advantage ofour global locations

for the HEV trendJapan●Improved corporate structure by appropriately
passing on costs to prices and cost control●Promoted resource shift to new businesses

All Rights Reserved. Copyright F.C.C. CO., LTD.

China

Preparing formass production

Business development
and mass production
test line

North America

Injecting resources4Progress of 12th Medium-term Management Plan
Non-mobility business x carbon neutral/solutions to social issues
Developing businesses that contribute tocarbon neutrality and solutions to social issues, andbuilding a foundation for business diversification

Major Initiatives and Progress

Example of carbon neutrality initiatives
Semiconductor chip firing setter

Blend of FCC’s coretechnologies(chemical, mechanical)

Proactive
collaboration andalliances

BlendAlliances

TargetChip firing jig

Condition during chip firing
Ceramic
Semiconductor
setterchips

Functional material utilized Porous ceramics
Scheduled market launch

2024

Progress to market launch

75%

Semiconductor firing jig market

103 billion yen(2030 forecast)

Example of energy solution initiatives
Circular economy
Products and solutions that lead to the cleansing of thewater and atmosphere, or to recycling systems

Energy solutions
Energy solutions that generate, store, and save energy,
or use thermal management (fuel cells, catalysts,etc.)
Create diverse biz that generate new value, foster cultural transformation“Experience” business
Fostering of creative culture within the company,
development of new businesses to meet overseas needs

All Rights Reserved. Copyright F.C.C. CO., LTD.

Also expanding into the mobility area

Conductive auxiliaries for LiBTarget

Multilayer CNT

Conductiveauxiliaries

LiB electrodes

Functional material utilized Multilayer CNT
Scheduled market launch

2025

CNT conductive auxiliaries market

Progress to market launch

50%

306 billion yen* LiB: Lithium-ion battery* CNT: Carbon nanotube(2030 forecast)

Preparation and search fordiversification
Orders for recycled fibers
Drone business orders(infrastructure inspection)

Recycled fiber(Japanese paper yarn)

5Progress of 12th Medium-term Management Plan
Sustainability Initiatives

Climatechange

Promote energy saving and renewableenergy measures throughout the FCCGroup toward carbon neutrality (2050)

Active use of renewable energy
Hamakita
Factory

Solar power generation facilities

Estimated annual
power generation

Establish and promote
three pillars of HR strategy(Approx. 8% of annual electricity use)

Power
Reductionrate

Watagashima
Factory

Imageexchange

CO₂emissions

unit

Reduction
per year

Equipment
to be cooled

Tank Heat

Promotionof diversity

Diversity
Fostering an organizational culture in which
diverse human resources can play an active role

Heat exchange unit using groundwater

Groundwater

Actual greenhouse gas (GHG) reductions in FY24
Energysaving

Formulate and promote a humanresource strategy to generateinnovation

HumancapitalRenewableenergyEngagement

HR strategy

3 pillars

Create infrastructure togenerate innovation bydeveloping HR who work
to bring aboutHR“the new FCC” ofdevelopment
Increased
their own accord
capacity
engagementbuilding

Implementation of engagement survey

HR development
Promotion of systematizationof DX HR development

Overview ofsystematization ofDX HR development
DX corepersonnel tier

DX core personnel training
Original DX content production
Strengthening of IT professionals

Professional tierStrengthening of DX basic skills
Strengthening of IT literacy

General employee tierDX foundation

All Rights Reserved. Copyright F.C.C. CO., LTD.

Data analysis practical skills test

6

Learning management system

Progress of 12th Medium-term Management Plan
Progress of cash allocation and resource injection
Cash allocation● Maintained sound financial health● Focused allocation of investments to core businesses and growth investments with anawareness of investment efficiency● Total shareholders return ratio of 40% or more

Acceleration of injection of resources into growth areas●Shifted resources (more than 400 people) to growth areas and promoted human resource development, including DX
personnel, during the period covered by the 12th Medium-term Management Plan(billion yen)
Growthinvestments

OperatingCF(*IncludingR&D
expenses)

88.0

96.0

35.0

42.0

40.0

Strategic
investments

20.0Core business

15.0

Shareholder returns

13.0

Cash generation

78.0

Cash outflows

12th Medium-Term Management Plan
All Rights Reserved. Copyright F.C.C. CO., LTD.

Injection ofresources into
growth areas
18.0(Progress rate: 20%）

20.0
20.0
12.0
11.0

7.0
6.0
5.0
FY24

18.0
16.0

FY25-FY26

Total of allocation
over 3 years* Growth investments include development expenses

7

Progress of 12th Medium-term Management Plan
Shareholder returns
Transition of annual dividends per share¥74

Annual dividends per share¥76(forecast)

Payout ratio

¥58

¥52

¥52

¥56

73.5%

¥40
44.5%
22.1%

FY19

FY20

FY21

30.2%

29.1%

30.1%

30.2%

FY22

FY23

FY24

FY25

Purchases of treasury shares¥1.3 billion(maximum)¥1.378 billion
Total shareholders return ratio

33.7%

73.5%

All Rights Reserved. Copyright F.C.C. CO., LTD.

44.5%

30.2%

29.1%

40.7%

40% or more

8