FY2015 Financial Results. ended March 31, 2015

Transcription

1 FY2015 Financial Results ended March 31, 2015

2 1.Financial Results for FY2015 1) Overview of Financial Results 2) Financial Results for FY2015 (ended March 31, 2015) 3) Financial Forecast for FY2016 (ending March 31, 2016) 4) By region

3 1-1) Overview of Financial Results 1. Despite the effects of a poor model mix in Asia & Oceania, increases in units produced overseas and improved model mix in Japan achieved growth in both income and profit. 2. Annual dividends of 18 yen with end-of-term dividends of 9 yen; the same as the previous year 3. For the next term, a rise in profit and a fall in income are expected due to profit improvement in the Americas, Europe & Africa and other factors. The net sales will be the same level as FY /35

4 1-2) Financial Results for FY2015 Overview of Financial Results (100 million yen) FY2014 FY2015 Fluctuation Net Sales 12, % 13, % % Operating Income % % % Ordinary Income % % 7 2.0% Net Income % % % Per Share Net Income yen yen Per Share Cash Dividend Exchange Rate yen yen US$ 100 yen 110 yen 10 yen (weak yen) Euro 134 yen 139 yen 5 yen (weak yen) 2/35

5 1-2) Financial Results for FY2015 Unit production by Region Seat assembly production Total By Region (10,000 Units) (10,000 Units) % Fluctuation Fluctuation rate % % % % FY2014 FY2015 Japan The Americas Asia & Oceania Europe & Africa 3/35

6 1-2) Financial Results for FY2015 Net Sales & Operating Income by Region (100 million yen) % 6,614 6,788 2,142 Total Amount FY ,055 FY ,183 Fluctuation % Net Sales % 3,227 3,129 2,876 Fluctuation Fluctuation rate % (100 million yen) FY2014 FY2015 Total Amount FY FY Fluctuation % 83 [1.3%] 220 [3.3%] Operating Income -6 - *[ ] Operating Income Rate % 290 [9.0%] 199 [6.4%] ,018 Japan The Americas Asia & Oceania Europe & Africa Japan -34 [-1.6%] The Americas -40 [-1.4%] Asia & Oceania -48 [-5.6%] -54 [-5.4%] Europe & Africa 4/35

7 1-2) Financial Results for FY2015 Ordinary Income Increase & Decrease Analysis Ordinary Income +7(+2.0%) (100 million yen) Operating Income +35(+12.4%) Effects from changes in products -41 Increased overhead costs -6 Effects of changes in accounting period +8 Effects of increased production & income Rationalization Effects of FOREX rate Nonoperating income 410 FY2014 FY2015 5/35

8 1-2) Financial Results for FY2015 Net Income Increase & Decrease Analysis Profitability due to optimized model mix and differentiation and other efforts to improve profits (100 million yen) - Determination of cost sharing in product introductions with European automakers - Final decisions on prices with main customers - Successful results of program to reduce emergency expenditures - Reducing risks from changing environment - Effects of FOREX rate Improved model mix (e.g., increases in RVs in various countries) - Increase in high-grade models and other factors +36 other Published 3rd- Quarter Figures -22 Efforts to increase income FY2015 Extraordinary loss Product mix, capacity utilization 6/35

9 1-3) Financial Forecast for FY2016 Financial Forecast for FY2016 (100 million yen) FY2015 FY2016 Fluctuation Net Sales 13, % 13, % % Operating Income % % % Ordinary Income % % % Net Income % % % Per Share Net Income yen yen Per Share Cash Dividend Exchange Rate yen yen US$ 110 yen 115 yen 5 yen (weak yen) Euro 139 yen 125 yen 14 yen (strong yen) 7/35

10 1-3) Financial Forecast for FY2016 Unit production by Region Seat assembly production 1, Total (10,000 Units) (10,000 Units) +2.7% % % By Region Fluctuation Fluctuation rate % % FY2015 FY2016 Japan The Americas Asia & Oceania Europe & Africa 8/35

11 1-3) Financial Forecast for FY2016 Net Sales & Operating Income by Region (100 million yen) Net Sales (100 million yen) Operating Income % 6,800 6,788 Total Amount FY ,000 FY ,055 Fluctuation % -2.6% 3,129 3,300 2,876 2,800 Fluctuation Fluctuation rate % 1,018 FY2015 F FY2016 1, [3.3%] Total Amount FY FY Fluctuation % 210 [3.1%] -40 [-1.4%] [-0.9%] % 199 [6.4%] *[ ] Operating Income Rate 220 [6.7%] -54 [-5.4%] [-2.5%] Japan The Americas Asia & Oceania Europe & Africa Japan The Americas Asia & Oceania Europe & Africa 9/35

12 1-3) Financial Forecast for FY2016 Ordinary Income Increase & Decrease Analysis Ordinary Income -10(-2.7%) (100 million yen) Effects of decreased income Operating Income +56(+17.3%) -100 Effects from changes in products +25 decreased overhead costs Rationalization +16 Effects of FOREX rate -66 Non operating income FY2015 FY /35

13 1-3) Financial Forecast for FY2016 Return to stockholders - Until FY2017, top priority is given to investment to strengthen fundamental structures - Plans to improves mid- to long-term profit and provide stable long-term dividends Trends in dividends and current-term net income (100 million yen) Financial Results: 期末 8 Dividend Net Income yen rise in dividend, up to 20 yen, anticipated for FY Q: 8 7 中間 FY2011 FY2012 FY2013 FY2014 FY2015 FY /35

14 1-4) By region (The Americas) Profit structure reform through enhanced synchronization between the Americas and Japan Operating Income (100 million yen) FY2014 FY2015 FY2016 Three target regions First-Half Second-Half First-Half Second-Half First-Half Second-Half Indiana 2. Mexico 3. Brazil First-Half:Continuing losses from product introductions in Indiana and Mexico Second-Half: Delays in reducing labor costs and scrap rates, Inflation in South America, Effects of FOREX rate, Despite costs for supplier relief and other expenses, improvements were realized due to recovery of temporary expenses and activities to increase income. Profit structure reform through enhanced synchronization between the Americas and Japan 1. Focus on Monozukuri * fundamentals 2. Strengthen synchronization of profit reform initiatives *Monozukuri = Manufacturing -> Moving towards breaking even in FY /35

15 1-4) By region (The Americas) Three target regions solid implementation of activities for profit improvement Operating income 1. Indiana 2. Mexico 3. Brazil FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 FY2014 FY2015 FY2016 First-Half Second-Half FY2014 [ FY2016 FY2015 ] [ ] 1) Production preparation costs for new products at production entities and losses from new product launches lead to larger-than-expected transient costs and continuing the situation. 1. Income improvement activities lead to decreased labor costs, reduced scrap, and other benefits 2. Higher labor retention rates result in increased productivity 1) Labor costs, material cost and rush shipping costs in response to changes in customers' quality standards 1. Thorough attention to Monozukuri fundamentals reduces labor costs and transport costs 2. Negotiations on division of responsibility for product quality 1) Production lower than forecast 2) Delayed reduction in labor costs 3) Increased costs for support of new production 1. Reductions in fixed costs realize a robust company structure highly responsive to changes in production volume 13/35

16 1-4) By region (Europe & Africa) Promoting BAE* Revival plan *Boshoku Automotive Europe Operating income (100 million yen) FY2014 FY2015 FY2016 First-Half Second-Half First-Half Second-Half First-Half Second-Half (-4) (-7) -21 ( ): Effects of changes in accounting period and FOREX rate -33 With a peak in the first half of FY2015, operating losses decrease -> Effects of BAE Revival Plan and other structural reforms are steadily beginning to appear 14/35

17 1-4) By region (Europe & Africa) Measures for BAE Revival plan FY2014 FY2015 FY2016 FY2017 Current New May, 2013 Start BAE Revival plan the end of 2015 April, 2014 Merge European HQ Functions Close down Geretried -Improve the efficiency of HQ s function -Bolster manufacturing department Despite achieving constant results, further reforms are needed New Measures Carrying out structural reforms, including an optimal production systems (realignment of production sites and focusing on selected auto manufactures and products) 15/35

18 2. Improvement Efforts on Manufacturing 1) 2020 Vision 2) Technological development to support growth 3) Improved Monozukuri 4) Strengthening development and production systems

19 2-1) 2020 Vision 1. The company we aim to become Looking into the future, we will create tomorrow s automobile interior space that will inspire our customers the world over 2. Our company s aspirations for 2020 (1) A company that persists in proposing excellent mobility for customers throughout the world (2) A trusted company that grows together with all stakeholders Our vision : Realizing our aspirations for /35

20 2-1) 2020 Vision Indispensable for company growth FY2016, FY2017: Initiatives to strengthen business foundation Resolutely strengthening the company's systems and creating a robust corporate structure 17/35

21 2-2) Technological development to support growth Looking into the future, we will create tomorrow s automobile interior space that will inspire our customers the world over Technology Development 3 keywords Safety Comfort Environment 18/35

22 2-2) Technological development to support growth Technology Development Road Map ~ ~ Safety ぶつからない車 自動運転対応脱自動車空間相互間通信 Development of high-precision driving ドア開閉新方式化 Establishing 運転サホ ートアクティフ セーフティ sensing support systems technologies 変化する室内運転サホ ートダイバーシティ乗降サホ ート Personal optimization 脳波操作運転者状態検知電子加飾技術ぶつからない車 塗装加飾技術ハ ッシフ セーフティ Pursuit of ride comfort 快適性の追求 既存加飾低コスト化高付加価値 Preventing drowsiness 部品内製化衝突安全非自動車技術の習得 Creating a relaxed space 真空圧空加飾フィルム 電動シートの充実 Reducing fatigue 擬似ステッチ工法 Cooperative climate control リア席ユーティリティ 空間のハ ーソナル化高触感新技術 シ ャスチャー操作健康になる車 Immersive おもてなしサホ ート entertainment systems 次世代軽量基材 Thinner, smaller, 健康補助 lighter 無尽蔵資源から作る Comfort 基材軽量化 50% 健康チェック Environment 基材軽量化 Zero-emission 40% ゼロエミッション タッチ操作軽量発泡成形技術スペースアップ Development for リサイクル率 100% 植物由来 Anticipating regulations 資源を生み出す車 next-generation energy vehicles 天然繊維小型 合理化 Natural 次世代エネルキ ー車 materials 環境負荷低減資源の活用 ~ ~ 19/35

23 2) 2-2) 成長を支える技術開発 Technological development to support growth Technology Development Road Map New products 20/35

24 2-2) Technological development to support growth Technology Development Road Map ~ ~ Safety 1. Focus on safety and compactness 運転サホ ート 運転者状態検知 ハ ッシフ セーフティ 塗装加飾技術 既存加飾低コスト化 真空圧空加飾フィルム 電動シートの充実 5. Pursuit of ride comfort 非自動車技術の習得 空間のハ ーソナル化 高触感新技術 2. Creates a more relaxing experience 快適性の追求 高付加価値部品内製化 4. Striving for a healthful car interior space 次世代軽量基材 健康チェック Comfort Environment リア席ユーティリティ タッチ操作 天然繊維 健康補助無尽蔵資源から作る 3. Development for next-generation energy vehicles 軽量発泡成形技術植物由来 環境負荷低減資源の活用 ~ ~ 21/35

25 2-2) Technological development to support growth Safety Comfort Environment 1. Focus on safety and compactness Developing next-generation frames 1. World's top-class frame performance Improved safety Increased strength and stiffness Reduced weight 2. World's top-class performance in ride comfort 3. Levers and other controls improve operability TB-NF110 Next-generation frames and feel Reforms in manufacturing Promoting to Integrate Components Parts 1. Frame-building steps reduced by half 2. Development of new processing technologies 3. Effective use of existing facilities Seatback Frame Cushion Frame Slide rail Major reduction in parts variation 22/35

26 2-2) Technological development to support growth Safety Comfort 2. Creates a more relaxing experience Creates a new, more relaxing experience in a moving space Super-long-slide Passenger Seat Executive Lounge Seat 1160 mm world's first Rear seats designed for even greater comfort Features storable table and power ottoman Front passenger seat slides back into rear seat area, creating a comfortable open space ALPHARD/VELLFIRE (January, 2015 release) 23/35

27 2-2) Technological development to support growth Environment 3. Development for next-generation energy vehicles Commercialization of fuel cell vehicle parts(products installed in Toyota MIRAI ) Ion Exchanger Separator Stack Manifold Removes impurities from coolants Molded hydrogen and oxygen channels Common passage for hydrogen, oxygen, and coolant Fuel Cell Stack 24/35

28 2-2) Technological development to support growth Comfort 4. Striving for a healthful car interior space Development of high-function cabin air filters Joint development partner: Denso, Denso branded product ( December 2014 release ) Dust removal layer (upstream side) [Removal function] Bacteria Mold spore Virus Pollen mite Dust [Additional functions] Releasing vitamin C Moisturizes skin (Effect varies with individual) Price high other company Toyota Boshoku Vitamin C Deodorizing layers Dust removal layer (downstream side) Deodorizing Anti-bacterial PM2.5 Anti-mold Anti-virus Anti-allergic + Moisturizes skin Deodorizing Anti-bacterial PM2.5 Anti-mold Anti-virus Anti allergic low low high Function 25/35

29 2-2) Technological development to support growth Safety Comfort Environment 5. Pursuit of ride comfort Development of aircraft seats commercialization of economy class seat Installed in B767s on ANA's domestic routes 1. Designed to comfortably fit passengers of all sizes and increase seating comfort 2. Effect gives passengers a sense of expansiveness in the limited space 3. Extensive use of aluminum alloys to maximize weight reduction 26/35

30 2-3) Improved Monozukuri Efforts to improve existing products thorough further development of core technologies FHS method Pursuing further innovation in Monozukuri Round recliners Precise Enhanced production Melt-blow method Foam In Place method Outsourced filter material in-house production CAF filter material produced by Toyota Boshoku LEXUS F-SPORT Seat Achieved both design and hold performance FHS method Melt-blow method Foam In Place method Set seat cover in die Foaming with cover 27/35

31 2-3) Improved Monozukuri Applying our core technologies in creating new products - 1 FHS method Precision electrical discharge machining Utilizing in next-generation key automotive components High-precision technologies Fuel Cell components B Cross section :B-B B Current Development Mirror surface finishing Seat frames Precision machining Motor core for HV A A Cross section:a-a Increased use of molding ->Improved electrical generation performance Disseminating the world's No.1 technologies Current Development Round recliners More accurate right angles ->Improved motor performance 28/35

32 2-3) Improved Monozukuri Applying our core technologies in creating new products - 2 Melt-blow method Nozzle diameter reduction technologies hot wind Creation of high value-added products Control of fiber diameter reduction technologies activated carbon Graphite nonwoven fabric Technologies for spinning blended-material threads Fiber diameter reduction technologies Ultra-thin fiber technologies [technology level] Double-digit 0.04μm nanofibers μm μm Cabin air filters High dust-collection/deodorization filters 2020 High-precision parts (Aluminum) Cabin air filters High dust-collection filters High deodorization filters Cylinder head cover Head cover (Resin) Multi-material insert molding technology 29/35

33 2-3) Improved Monozukuri Working to achieve mass production of new products Outstanding Foam In Place method Target Focusing on highly-skilled work (Sewing seat covers) Skilled work automated through development of engineering method Securing skilled sewing workers Accurate sewing with Form In Place Seam allowance [Seam allowance] Minimizing = sewing is more difficult Achieved high-quality design Moving surely in response to the expanding market LEXUS RC-F LEXUS RC Use now increasing LEXUS IS F-SPORT LEXUS NX F-SPORT 30/35

34 2-3) Improved Monozukuri Restructuring domestic factories for mass production of new products Further bolster new projects Increased sales Motor core for HV Fuel Cell components Production of high-added value components High-function filters Improved profitability Cylinder head cover Consolidation of production space frees up space Consolidate space Mass production processes Close Customer Overseas Optimize location Move closer to customer s factories and reduce delivery transfer costs at production bases Reduced losses Distance Effective use of equipment Effective use of surplus equipment around the world Control investment Customer trends Changing environment Further consolidation and boosting efficiency Invest new projects 31/35

35 2-3) Improved Monozukuri Efforts to improve cost competitiveness Next-generation frames Pursue Simple Slim line [Current] supplier Logistics [Future] Fewer parts, fewer processing points Next-generation frames Significantly reducing numbers of processes, production space, and capital investment Challenge to be the "world's No. 1 Monozukuri plant" Asia& Oceania China Europe &Africa World s best Line The Americas Japan 32/35

36 2-4) Strengthening development and production systems Aggregating seat frame mechanism parts businesses Signing of business transfer agreement with Aisin Seiki and Shiroki Corporation (May, 2015) 1. Subsequential transfer of seat frame mechanism part development and production functions 2. Creation of specialized seat frame development system linked to seat development 3. Setting up globally an integrated system from Development to production NEW Shiroki Corporation Aisin Seiki Co., Ltd. Next-generation frames 33/35

37 2-4) Strengthening development and production systems Setting up systems for development and management in China region Operations at new Toyota Boshoku (China) Headquarters and R&D Center (March, 2015) Aggregating functions performed at dispersed locations eliminates inefficiencies Developing system for new business orders Improving efficiency of design, production engineering, sales, and purchasing operations Complete all steps from development through evaluation within the China region Gross area :18,000m 2 Architectural area :12,000m 2 ( three stories high ) 34/35

38 2-4) Strengthening development and production systems Setting up a development system in Japan Operations have commenced at the Tajimi Technical Center proving ground Through vehicular testing on our proving ground, we perform dynamic evaluations with the aim of developing competitive, attractive products. Name Location : Toyota Boshoku Tajimi Technical Center : Tajimi City, Gifu Prefecture, Japan Area : Site area is approx. 360,000 m 2 the test course area is approx. 140,000 m 2 Test course : Track (total length: 1,800 m with a 670 m straight-line stretch of road) Course that recreates a wide variety of road surfaces (April, 2015) 35/35

39 Design Your Passion Disclaimer This report contains forecasts and expectations that relate to future plans and strategies in addition to the expected financial results of the Toyota Boshoku Corporation and the Toyota Boshoku group. Within are estimates based on assumptions and opinions that have been formed by the company from the information available at the time of writing. They involve risks and uncertainties. Accordingly, actual results may differ from the company's forecasts.