12th Medium-Term Management Plan
（From FY2024 to FY2026）

F.C.C. CO., LTD.
(May 18, 2023)
Stock Code : 7296
Prime, Tokyo Stock Exchange
https://www.fcc-net.co.jp
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11th Medium-Term Management Plan Review
Evolution of Clutch Business + Launched the action toward VISION2035

Evolution ofstructure
Expanding Sales

Development/On-site
Capabilities

Development/On-site
Capabilities
Digital, New
Businesses

Evolutionary phase for
Clutch business

9th MTMP※

10th MTMP

11th MTMP

218.9

営業利益（億円)
Operating Profit(billions of yen)

170.9

171.0

Strengthen
development capabilities,On-site Capabilities

Secured competitiveness by leveragingintegrated strength of FCC, despite COVID,
semiconductors, inflation, and otherexternal environment factors

Digital Evolution

Promoted actions utilizing AI and IoT inmanufacturing
Achieved efficiency improvements in indirect
operations, digitalization of development
process

146.1
7.8

6.9

2019

2020

10thMTMP

10.0
2021
11th MTMP

Be a Company
creates the value
demanded bysociety●Measures Review●Financial Results
売上収益（億円)
Revenue(billions of yen)

Preparations for NewBusinesses
Fostering changes incorporate culture

11.9

2022

Strengthen developmentof new businesses

Continued with preparations for new businesses,but did not achieve commercialization
Embarked on a cultural transformation forinternal mindset reform※MTMP=Medium-Term Management Plan
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Basic policy for the 12th Medium-Term Management Plan
Strive to transform our company and businesses with a focus on the year 2030,
aiming to achieve the second founding

Transformation of our company and businesses
to adapt and address the new business environment

Be aCompany
creates thevalue
demanded bysociety

Phase of transformation focused on VISION2035

12th Medium-Term Management PlanBusinesspolicy

1.Achieving new business creation and continuing toprepare for new businesses
2. Maximizing business profitability throughselection and concentration
3. Transforming the quality of added value through DX
4. Creating a foundation for generating innovation

Business structure transformation

AutomobileNon-mobility

Motorcycle

Newbusinesses

Targeted level

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Targeting

2030

Strategy：Business portfolio transformation and reinforcing the business foundation

Clutchbusiness12th MTMP

Second Founding:towards thebrand-new FCC

Motorcycle business

Automobile business

Non-mobility businessfortify the business
Expand profitability
by evolvingcompetitivenessshift in nature of business
Improve profitability toachieve resilientstructures

Build a foundation forbusiness diversification

EV/CASE

Expand business scopethrough customer base andtechnology

Promote commercialization ofproducts inenvironmental/energy sector /create new businesses

Accelerate use of digital technology,
Manufacturing competitivenesssimultaneously strengthen existing business
Fundamental R&Dand create/expand new businesses

HR/operations
ESG

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Business Portfolio Transformation
Business structure transformation (portfolio)
Enhancing the Clutch business profitability through selection andconcentration and focus on the creation of new businesses
Transform to a company consistently offers new value in the mobility andnon-mobility areas

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Business Strategy
Business strategy (motorcycle business)
Commercialize EV power units and create a CASE business by leveraging ourcustomer base and technology
Maximize profitability by combining top share in clutches with integrated strength
derived from value-added technology and comprehensive global manufacturing
capabilities
New Businesses (CASE area)◆Accelerate development of CASE business▷Leverage FCC’s core technology and customer baseto create value in terms of both products and solutions◆Commercialize power unit for small EVs▷Use miniaturization / differentiation technology
and robust global production platform centeredon India/ASEAN to build bridgehead to EV market

Existing Business (Clutch area)◆Refine moderate to high value-addedtechnology▷Establish evolution in technology using DX
and automation◆Enhance cost competitiveness throughstandardization and optimization▷By optimizing production through the use ofstandardized specifications and shared facilities, we will work
to reduce costs and expand next-generation markets
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Business Strategy
Business strategy (automobiles business)
Beginning with our entry into the motor core submodule business, we will
blend and convert our core technology into tangible form, with the aim of
becoming a component manufacturer that creates new value in the CASE
marketNew Businesses (CASE area)◆Entry into motor core submodule market▷By leveraging our technology and global production platform,
we will move forward with the development of differentiatedtechnology, aiming to create the pillars of future businesses◆Accelerate development of CASE
products/business▷Diversify our value offering through the use of coretechnology developed in the existing business(Aluminum diecast added-value, bonding of dissimilar materials,
thermal management)

Existing Business (clutch area)◆Build resilient structures* and shift
resources in anticipation of lower production▷Thorough fixed cost reductions through selection andconcentration▷Strategy of integration/efficiency improvements along theproduct/regional axes

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*Build structures that will generate profit even after
structural declines in production

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Business Strategy
Business strategy (non-mobility business)
Toward achieving carbon neutrality and the SDGs, build a foundation
for business diversification by commercializing products in theenvironmental / energy sector and creating new businesses that leadto the resolution of social issues
New Businesses (non-mobility area)
Blend of
FCC’s coretechnologies(chemical,mechanical)

×Proactive
collaborationand alliances◆Circular economy▷Products and solutions that lead to the cleansing of the waterand 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 businesses that generate newvalue, and foster cultural transformation▷“Experience” business▷Fostering of creative culture within the company, developmentof new businesses to meet overseas needs
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Financial Strategy and Targets
Financial strategy and targets
Maintain sound financial health
Cash generated by Clutch business to be allocated to growthinvestments as a priority
Total shareholders return ratio 40%●Key performance indicators
売上収益（億円)
営業利益（億円)218.9

11.92022

12th Medium-Term
Management Plan

227.0

234.0

14.0

2023
ROE(%)
Total
shareholders
return ratio(%)

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16.0

2025

8%

40%

●Cash allocation (total for three years)

Sustainability Initiatives
Sustainability (ESG) initiatives
We have established the fundamental policy of contributing to therealization of a sustainable society and enhancing corporate value.
In the ESG (Environmental, Social, and Governance) domain,
we will collectively drive the following initiatives:

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9Sustainability Initiatives
Environment: preparing to achieve carbon neutrality in 2050
The Group as a whole aims to reduce total CO2 emissions by 50% by 2030
through energy-saving activities associated with production,
the introduction of renewable energy, and new businesses and products.
●Group management structure●Roadmap for reducing CO2 emissions
50%reduction
50% reduction
against
FY2013against
FY20132030 (decarbonization)
2050
Promote activities to achieve 2030 targets The challenge of achieving carbon neutrality

As of now

Energy-savingactivities
associatedwithproduction

Steadily maintain energy-saving activities(eliminate and review waste, upgrading to high-efficiency facilities)
Saving energy through the introduction of new technology(groundwater air-conditioning, etc.)
Supply chain

Changes in electricity coefficients(implement continuous review)

Utilize renewableenergy (1)Introductionof renewableenergyUtilize renewableenergy (2)Introduce solar power generation

Utilize renewableenergy (3)Fuelconversion
Contribute to CO2
reductions and theenvironment
through products・Electrification
・Energy solutions
・Environmental
cleanup, etc.

Co-creation
development

EV-relatedproducts

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Fuelcells

Effectively

Introduce electricity
from carbon-free sources

zero
CO2

Introduce hydrogenburners, etc.

emissions

Catalysts

President andRepresentative Director
Person Responsible forEnvironmental Management(Director in Charge of theEnvironment)

Secretariat

Overseas Environmental
Conservation Committees(14 locations)

Environmental Conservation
Committee for entire company(including subsidiaries, etc.)

Overseas Branch Managers

Person Responsible forEnvironmental Management(head of each site)

Person in charge (local staff)Support(Japanese staff posted overseas)

Person Responsible for Promoting theEnvironment (each site)

Environmental Conservation
Committees at overseas locations

Departmental Environmental
Conservation Committees(chairperson: head of a site)
Departmental Energy Management
Committee

Watertreatment

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Sustainability Initiatives
SocialGenerate innovation by developing
human resources who work to bringabout “ the new FCC” of their own accord

Diversity & Inclusion

GovernanceInstill the charter of corporate conduct
throughout the Group, and further enhancesound Group governance●Corporate Governance system◆Promote participation bydiverse human resources▷Mid-career hires, foreign nationals,
people with disabilities, seniors◆Achieve career/lifestyle suits
the individual▷Choice of work style, personnel evaluation anddevelopment systems, assigning the right person
to the right place

Portfolio of human resources◆Formulate portfolio of humanresources to generate innovation▷HR strategy aimed at achieving “the new FCC”
and linked to the business strategy

Fixed-point observations through engagement
surveys and ongoing follow-up
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