Financial Results. of FY2013 ending March 31 st 2013

Transcription

1 Quantum Leap Toyota Boshoku Corporation Financial Results of FY213 ending March 31 st 213

2 Quantum Leap 1. Progress on 22 Vision & Mid-Term Management Plan Until Financial Results for FY Estimates for FY214

3 Quantum Leap 1. Progress on 22 Vision & Mid-Term Management Plan Until 215 1) Overview of 22 Vision & Mid-Term Management Plan Until 215 2) Handling issues & improving systems 3) Business expansion initiatives 4) Initiatives to strengthen business foundation

4 1) Overview of 22 Vision & Mid-Term Management Plan Until 215 (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. Design your passion with TOYOTA BOSHOKU Design your passion with TOYOTA BOSHOKU (2) Our company s aspirations for 22 [1]A company that persists in proposing excellent mobility for customers throughout the world [2]A A trusted company that grows together with all stakeholders (3) Key management items for 215 [1] Pursuit of leading-edge technologies toward creating new business. [2] Acceleration of global business expansion centered on growing markets, such as emerging countries. [3] Speed up integration of all functions and regions to support our business growth with all car manufacturers. [4] Thorough implementation of lean, highly efficient and high value-added business in Japan. 1/44

5 1) Overview of 22 Vision & Mid-Term Management Plan Until 215 Management targets Operating Income 29 (2.2%) 253 (2.3%) 65 (5%) (1 million yen) 8 (5%) Net Sales 9,642 1,794 13, 16, FY212 FY213 FY216 FY221 (results) (results) (target) (target) Customer Sales Ratio NCB:1% *New Customer Business NCB:3% Toyota: 9% Toyota: 7% 2/44

6 2) Handling issues & improving systems Grasp changes in global supply & demand and external environment Changes in managerial environment Toyota Boshoku Issues (1)Decreased production of Japanese automobiles (Fewer children, increased consumption tax) (Shifting production overseas) (2)Growth in emerging countries (Increased production) (3)Shift to compact cars (1) Intensified competition (2) Shifting to next-generation automobiles (3)Expand business in emerging countries (4) Acquire new customers (5) Challenges for Automobiles 3/44

7 2) Handling issues & improving systems Organizational structure suited to business Organization Product Technology 1) Product responsibility system (Structural products) Customer Region Toyota Business Mainly assembly orders NCB European car maker business, etc. Product(by individual components orders by unit :Person in charge Frame Urethane Seat covers Development Production technology Sales & Purchasing Cost planning Manufacturing Seat assembly Development Production technology Sales & Purchasing Cost planning Manufacturing Profit Profit Profit Profit Aim to further improve individual components to surpass competitors 4/44

8 2) Handling issues & improving systems Organizational structure suited to business Organization Research, planning, strategy planning & promotion to suit needs of local customers Product Technology 2) Speedy autonomous decision making in all 5 regions Customer Region Previous Toyota Boshoku Revised Toyota Boshoku Japan Each region (5 regions) Business entity Research, planning, business strategy Global Business Planning Div. Regional Business Dept. RM&CH Local customer Japan Each region (5 regions) Business entity J-Dept. for each region RM&CH Research, planning, business strategy Local customer 5/44

9 2) Handling issues & improving systems Organizational structure suited to business Organization 3) ACT Promotion Department: New business fields Aircraft & Train business Product Technology Customer Region Challenges for Automobiles Initiatives including interior spaces for train cars & airplanes Airplanes Train cars Automobiles 6/44

10 3) Business expansion initiatives Expand 4 business axes Product Technology Customer Region Product Customer Various mobility interiors NCB (New Customer Business) Enter new business fields Current business Application of core technology Technical alliances Emerging countries Toyota Business/NCB Technology TB Sports Seat Region 7/44

11 3) Business expansion initiatives Expand 4 business axes Product Various mobility interiors Product Customer Technology NCB (New Customer Business) Region Customer Enter new business fields Current business Application of core technology Technical alliances Emerging countries Toyota Business/NCB Technology TB Sports Seat Region 8/44

12 3) Business expansion initiatives: Product Apply technical knowledge acquired from automotive seats to other mobile interiors Product Customer Technology (1)First seat order from JR Hokuriku Bullet Train for the Gran Class train car Created luxurious & comfortable seats tailored to the Gran Class Region High-quality materials & tailoring Luxurious & user friendly amenities Plush ergonomic seating that is comfortable even during long train excursions Aim to meet needs to enter market for high-grade train seats 9/44

13 3) Business expansion initiatives: Product Apply technical knowledge acquired from automotive seats to other mobile interiors Product Customer Technology Region (2)Making proposals to & taking orders from airline companies Theory on ride comfort (Concepts on pelvic support) Leverage theories on ride comfort in our pursuit of comfortable seats that reduce fatigue Propose designs that provide passengers the most comfortable seats and interiors within limited space Aim to meet needs to enter market for airplane seats 1/44

14 3) Business expansion initiatives: Product Enter new business field: Started sales of Nunokabe Product Customer Technology Apply techniques from our original textile business & seat covers from our automotive and interior space business to create interior home decorations Soft, colorful wall decorations that add to room interiors A wide assortment of rich motifs can be arranged into a variety of patterns (Jointly developed with Toyota Housing) Region (Product logo) Expand sales routes to include other housing manufacturers 11/44

15 3) Business expansion initiatives Expand 4 business axes Product Various mobility interiors Product Technology NCB (New Customer Business) Customer Region Customer Enter new business fields Current business Application of core technology Technical alliances Emerging countries Toyota Business/NCB Technology TB Sports Seat Region 12/44

16 3) Business expansion initiatives: Technology Applied core technology to new product development Product Customer Technology Region FHS Method Fine Hold Stamping Trends Competitive products & capacities HV & EV Round recliners Precision stamping process Precise High-quality Enhanced production Environmental performance Downsizing Fuel-cell vehicles Turbo engine car Competitive capacities in functional seat components Desired fields for expansion Business expansion in line with changing trends: launch into next-generation power train field Example of applied core technologies New Crown hybrid model Motor core for HV 13/44

17 3) Business expansion initiatives: Technology Strengthen technology through alliances and undertake joint development Product Customer Technology Region (1) Develop high quality packages at reasonable prices that improve noise and vibration performance to realize comfortable rides Noise evaluation Analytical Technology Product Technology Making proposals of jointly developed products to customers with the aim to achieve top level noise and vibration performance for mid-to-small vehicles Conversational clarity level Clear Unclear Light Improve conversational clarity level by approximately 2% Commercial vehicles Mass Top class Heavy 14/44

18 3) Business expansion initiatives: Technology Develop products with added-value from technical alliances Product Customer Technology Region (2) Give new added-value to seats & interior spaces by fusing unique technology from all three companies Damping technology Urethane foam technology Ride comfort & Safety technology Seats automatically adjust to different physiques Noise canceller built into seats Touch controls built into doors etc. Aim to expand core technology & business fields via joint ventures 15/44

19 3) Business expansion initiatives: Technology Development of the TB Sports Seat Improve marketability by pursuing ride comfort & high design Pursuit of ride comfort Improve fit & hold performance Product Technology Customer Region Installed in the iq (limited sports car production) [1]Fit [2]Side support [3]Knee support Raise cushion in front of backside to improve fit Side support helps restrain body Restrains side movement of leg when cornering & breaking Pursuing high design improve appearance & finish Shape that improves maneuverability and hold performance, Color gradation and coordination emphasizes functional beauty 16/44

20 3) Business expansion initiatives Expand 4 business axes Product Various mobility interiors Product Customer NCB (New Customer Business) Customer Technology Region Enter new business fields Current business Application of core technology Technical alliances Emerging countries Toyota Business/NCB Technology TB Sports Seat Region 17/44

21 3) Business expansion initiatives: Region Developments for emerging countries Product Customer Technology Region Basic thinking (1)Handle based on regional customer procurement needs (Toyota & NCB) (2)Preparing business foundation to expand NCB (3)Acquire competitive capabilities by solidifying supply chain 18/44

22 3) Business expansion initiatives: Region Developments for emerging countries: Pakistan Product Customer Technology Region (1)Handle based on regional customer procurement needs (Toyota & NCB) Pakistani market Anticipate major growth in automotive market Japanese car manufacturers are expected to increase production numbers Local supplier infrastructure undeveloped Side frame Production list Seat tracks Air cleaners Toyota Allows Toyota Boshoku to apply manufacturing capabilities built-up in the Asian Region Handle new advancements through regional procurement Thal Boshoku Pakistan Establish in August 213 Joint venture business with leading local product manufacturer Joint venture plans to utilize lean production 19/44

23 3) Business expansion initiatives: Region Developments for emerging countries (2)Preparing business foundation to expand NCB Product Customer Technology Region Approach NCB Europe NCB Orders in each region Boshoku Automotive Czech (Established May 212) BAE Boshoku Automotive Europe NCB Shenyang Toyota Boshoku (Establish in July 213) Establish manufacturing sites for NCB interior components(headliner, door trim, etc.) ordered, and expand to include seat assembly and other businesses in the future 2/44

24 3) Business expansion initiatives: Region Developments for emerging countries Product Customer Technology Region (3) Enhance supply chain to become more competitive Reorganization of labor-intensive components business (sewing business, etc.) Agglomeration of car manufacturers & suppliers Toyota Supplier Supplier Supplier Seat assembly Sewing Sewing Content of reorganization Turkey: 7km from Toyota Establish TB Sewtech Turkey Thai : Established Toyota Boshoku Lao as a satellite plant China & other regions : Considering sewing companies Reorganization to make seat covers (Change in location) [1] Improve cost competitiveness [2] Reduce manufacturing risks due to regional issues 21/44

25 3) Business expansion initiatives Expand 4 business axes Product Technology Customer Region Product Customer Various mobility interiors NCB (New Customer Business) Enter new business fields Current business Application of core technology Technical alliances Emerging countries Toyota Business/NCB Technology TB Sports Seat Region 22/44

26 3) Business expansion initiatives: Customer Expand acquisition of NCB (New Customer Business) (1) Building relationships with customers Promote new technology to each car manufacturer by hosting tech days at Sanage Technology Center Tech days for car manufacturers (NCB Tech Day, hold 6 times) Exhibitions at regional motor shows (213: Sept., Frankfurt; April, Shanghai) Product Technology Customer Region Exhibition: Image showing business growth from original business to current Europe Feb. 12 ASEAN (Thai) Feb. 13 China Mar. 13 Japan Mar. 13 Sanage Technology Center June 12 Americas Oct. 12 BMW GM, Honda, Mitsubishi, Mazda, Nissan, Ford, Isuzu Shanghai GM Mitsubishi Subaru, Honda, Mitsubishi, Nissan, Suzuki, BMW, etc. GM 展示会 : 源流の繊維から拡がる事業をイメージ 23/44

27 3) Business expansion initiatives: Customer Expand acquisition of NCB(New Customer Business) Product Technology Customer Region (2)Set up NCB Divisions in each car manufacturer s region to undertake sales activities to acquire new customer business European Car Manufacturers (BMW, VW, etc.) American Car Manufacturers (GM, Ford, etc.) Europe NCB Toyota Boshoku Europe/Boshoku Automotive Europe The Americas NCB Toyota Boshoku America European Region The Americas region Number of request for quotation received cases 1 Chinese Car Manufacturers (National brands) China NCB Toyota Boshoku (China) China region 5 ASEAN Manufacturers ASEAN NCB Toyota Boshoku Asia ASEAN region FY211 FY212 Japanese Car Manufacturers Each airline company & railway company Japan NCB Toyota Boshoku Japan region Purchased interior business of European automotive components manufacturer (June 211) Requests increased exponentially thereafter 24/44

28 4) Initiatives to strengthen business foundation Reorganization of Japanese plants to handle environmental changes Set up scenarios for plant reorganization to obtain revenues for each factory & component Basic thinking on factory reorganization (1) Optimize production areas (Seat assembly plants, component plants & new businesses, etc.) (2) Enhance efficiency of current processes (3) Optimize placement of new businesses 25/44

29 4) Initiatives to strengthen business foundation (1) Optimize production areas (Seat assembly plants, component plants & new businesses, etc.) Ex.)Condense components & assembly plants and shift to supplementary component plants Reorganization of Fujioka & Sanage plants Fujioka Plant Sanage Plant Customer (Before reorganization) (After reorganization) Component process Supplementary process Supplementary process Supplementary process Excess space No logistics Assembly process Supplementary process Assembly process + Component process Components process Assembly process Logistics costs incurred *Supplementary processes = processes to produce service parts Condense supplementary processes Directly link component + assembly processes Reduce logistics costs Labor savings Utilize excess space and use as research space 26/44

30 4) Initiatives to strengthen business foundation (2) Enhance efficiency of current processes Ex.) After making oil filter production processes more compact, shift overseas Oil filters Past Now Press Painting Assembly Reduce inventory Reduce logistics [ Production space ] Immediate Inventory Immediate Inventory [%] 1 Elements Immediate Inventory Past 3 Now Transferring production of oil filters Thai China Japan Kariya Plant Change to more compact/slim production lines Condense production sites from 3 to 2 27/44

31 4) Initiatives to strengthen business foundation (3) Optimize placement of new businesses Ex.)Transfer overseas and utilize domestic space obtained from reorganization for new business and production engineering research New business locations Kisogawa Plant Fujisusono Plant Produce Nunokabe Kariya Plant Produce railway car seats Toyohashi Plant Space to handle new business Motor Core for HV Pursue optimal production & logistics 28/44

32 Summary Annual Slogan for FY213 Quantum Leap 発想の飛躍 Annual Slogan Manufacturing that foresees the times and trends Uncompromising products for customers ~Move to the next stage with a Quantum Leap and Tenacity~

33 Quantum Leap 2. Financial Results for FY213 1) Overview of financial results 2) Financial results for FY213

34 1) Overview of financial results Compared to to previous year, year, profits increased due due to to production recovery in in Japan and and increased production in in Asia Asia & Oceania Dividends for for the the end end of of the the fiscal year year are are 1 1 yen yen and and saw saw an an annual increase of of 2 yen yen compared to to last last year year for for a total total of of18 yen yen Due Due to to production increases and and exchange rates, increases in in sales and and profit will will occur next next term term 29/44

35 2) Financial results for FY213 Japan and Asia & Oceania regions saw increases in sales and profits due to production increases (1 million yen) 13, Net sales +1, % 4 Operating income % Ordinary income % Net income % 9,642 1,794 (2.3%) (2.4%) (3.1%) 339 (2.2%) (1.5%) 29 (.3%) FY212 FY213 FY212 FY213 FY212 FY213 FY212 FY213 US$ 79.8yen 83.11yen RMB 12.35yen 12.67yen Thai baht 2.59yen 2.71yen EUR 18.98yen 17.14yen Net income per share Dividends yen yen 16 yen 18 yen 3/44

36 2) Financial results for FY213 Unit production by region All regions saw production increases centering on compact cars (1, units) 8 Seat assembly production Total % FY212 FY213 Full-sized RV Medium-sized Compact Japan +32 Asia & Oceania The Americas Europe & Africa 9 16 FY212 FY213 FY212 FY FY212 FY213 FY212 FY /44

37 2) Financial results for FY213 Net Sales & Operating Income by Region (1 million yen) 8, Japan % 6, 1 Net Sales 95 Net Sales 3,183 3,35 5,723 6, Operating Income (Operating income to net sales) % (.7%) (.9%) FY212 FY213 Separated by First & Second Half of FY Operating Income First-half Second-half Eco-friendly car subsidies finished and reduced production in China caused a decline in profits in the 2 nd -half however, recovery in production and positive results from rationalization saw increases in sales and profits. 32/44

38 2) Financial results for FY213 Net Sales & Operating Income by Region (1 million yen) 2,5 Net Sales The Americas % 1,5 1 Net Sales Operating Income -1 (Operating income to net sales) 1, , (-4.2%) (-2.%) FY212 FY213 Separated by First & Second Half of FY Operating Income First-half 上半期 Second-half 下半期 Production preparation costs in the 2 nd -half for Brazil EFC, Canada RAV4 and other factors led to a decline in profits however losses for the year were decreased 33/44

39 2) Financial results for FY213 Net Sales & Operating Income by Region (1 million yen) 3,5 Net Sales Asia & Oceania % 3, Net Sales ,452 1,333 2,51 2, % Operating Income (Operating income to net sales) (1.%) (1.1 %) FY212 FY213 Separated by First & Second Half of FY213 3 Operating Income First-half Second-half In the 2 nd -half, saw impacts due to reduced production in China however, production increases in the ASEAN region saw increases in sales and profits. 34/44

40 2) Financial results for FY213 Net Sales & Operating Income by Region (1 million yen) 9 Net Sales Europe & Africa % 1, Net Sales Operating Income -1 (Operating income to net sales) ー (-6.%) (-1.2%) FY212 FY213 Separated by First & Second Half of FY Contributions from BAE saw increases revenues Losses increased due to costs for NCB activities and setting up a new NCB company in Czech -25 First-half Operating Income -36 Second-half 35/44

41 2) Financial results for FY213 Ordinary Income Increase/Decrease Analysis Rationalization led to increased revenues otherwise large losses in revenue would have occurred (1 million yen) Interim ordinary income (-148) Ordinary income (+16) Effects of increased production and income +9 Effects of FOREX rate +63 Nonoperating income 222 Effects from changes in product prices Increased labor costs 96 Increased overhead costs 88 Effects from new consolidated subsidiaries 7 Interim ordinary income 84 Rationalization FY212 FY213 36/44

42 Quantum Leap Quantum Leap 3. Estimates for FY214

43 1) Estimates for FY214 Overseas production increases led to increased sales and profits (1 million yen) Net sales Operating income Ordinary income Net income 13, % % % % 1,794 11, (2.3%) 253 (2.7%) 3 (3.1%) 339 (3.1%) 34 (1.5%) (1.5%) FY213 US$ 83.11yen 9.yen RMB 12.67yen 14.5yen Thai Baht 2.71yen 3.yen EUR 17.14yen 12.yen FY214(forecast) FY213 FY214 FY213 FY214 FY213 FY214 (forecast) (forecast) (forecast) Net income per share Dividends yen yen 18 yen 18 yen 37/44

44 1) Estimates for FY214 Unit production by region Decreases in Japan, focus increases in compact vehicles overseas for overall increases (1, units) Seat assembly production FY213 Total % FY214(forecast) Full-sized RV Medium-sized Compact FY Japan Asia & Oceania FY The Americas Europe & Africa FY214(forecast) FY213 FY214(forecast) FY214(forecast) FY213 FY214(forecast) 38/44

45 1) Estimates for FY214 Net Sales & Operating Income by Region (1 million yen) 8, Japan % 6, 1 Net Sales 13 Net Sales 2,95 3,5 6,219 6, Operating Income 15 (Operating income to net sales) (.9%) % FY213 (1.3%) FY214(forecast) Separated by First & Second Half of FY Operating Income First-half Second-half Even with impacts from reduced production and income, revenues increased due to thorough rationalization 39/44

46 1) Estimates for FY214 Net Sales & Operating Income by Region (1 million yen) 3, Net Sales The Americas % 1,5 Net Sales Operating Income 1-1 1,765 1, Separated by First & Second Half of FY214 (Operating income (-2.%) (-.3%) to net sales) FY213 FY214(forecast) First-half Second-half 5-5 Operating Income 1-5 In the 1st-half model change costs for the Highlander and Corolla were incurred however progress in reforms to profit structures reduced losses 4/44

47 1) Estimates for FY214 Net Sales & Operating Income by Region (1 million yen) Net Sales Asia & Oceania 5, % 3, Net Sales ,43 1,57 Operating Income 5 (Operating income 2,785 3, -21-7% (1.1%) (8.7%) Separated by First & Second Half of FY214 3 Operating Income to net sales) FY213 FY214(forecast) First-half Second-half Production saw increases however due to cost increases to establish NCB in China (new company in Shenyang), build an R&D Center and establish a new company in Laos to strengthen our income base for the future revenues decreased. 41/44

48 1) Estimates for FY214 Net Sales & Operating Income by Region (1 million yen) Europe & Africa 1, % 1, Net Sales Net Sales Operating Income 1-1 (Operating income (-1.2%) (-5.3%) Separated by First & Second Half of FY Operating Income 1 to net sales) FY213 FY214(forecast) First-half Second-half Due to results from production increases of Corolla in Turkey, increases in BAE s NCB sales and reforms to profit structure as well as rationalization, losses decreased. 42/44

49 1) Estimates for FY214 Ordinary Income Increase/Decrease Analysis Rationalization led to maintaining revenues at the same level as last year otherwise large losses in revenue would have occurred (1 million yen) Effects of FOREX rate Interim ordinary income (-259) -13 Effects from decreases in production level -17 Effects from changes in product prices Ordinary income (+1) Increased labor costs -3 Increased overhead costs -2 Nonoperating income -46 Interim ordinary income 8 Rationalization FY213 FY214 (forecast) 43/44

50 1) Estimates for FY214 Capital Expenditures Making investments into NCB and new emerging companies to strengthen our future income base Total (1 million yen) Capital Expenditures Depreciation costs FY212 FY213 FY214 (forecast) By Region FY212 FY213 FY214 (forecast) Europe & Africa Asia & Oceania Japan The Americas (1 million yen) FY212 FY213 FY214 FY212 FY213 FY214 FY212 FY213 FY214 FY212 FY213 FY214 (forecast) (forecast) (forecast) (forecast) Investments to handle NCB, etc. Build China R&D Center, establish new NCB company, etc. Build Tajimi Technical Center, R&D investments, etc. Investments to handle model change, etc. 44/44