F-TECH Inc. Business Report FY ended Mar. 2019
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | Rate of Change (%) |
Factors | |
| Sales | 235,361 | 226,060 | 4.1 | -Posted record sales due to the benefit derived from volume production of newly won product-orders. |
| Operating income | 6,580 | 6,856 | (4.0) | -Impairment loss for fixed assets that resulted from production decreases by customers |
| Ordinary income | 5,968 | 5,924 | 0.7 | - |
| Net income attributable to owners of the parent | 2,844 | 4,709 | (39.6) | - |
Reorganization of Global R&D Structure
-The Company will improve development efficiency throughout its group companies by reorganizing its global development system in the fiscal year that ends in March 2020 (FY 2019). It will review optimizing development functions, facilities, and the allocation of researchers and engineers in consideration of the different regional characteristics of Japan, North America, China, and the Philippines, where the company currently has development bases. It aims to efficiently and accurately reflect market needs in development by establishing a collaboration system, and to expand opportunities to win new orders. As set in its reorganization plan from FY 2019, it will place importance on its development and analysis bases in Japan for advanced technologies and Honda Motor Co., Ltd.’s global vehicle models, such as the Accord, Civic, and CR-V. In North America and China, the company will actively share information between development bases. It intends to grasp demand in the two huge markets, and strengthen development for U.S. Automakers. F-Tech has established a 24-hour shift development system in the Philippines, the only one of its kind out of the four regions, and is considering utilization it to improve global development efficiency. (From an article in the Nikkan Jidosha Shimbun on January 28, 2019)
Joint Development with Nippon Steel & Sumitomo Metal Corporation
-The Company will formally start joint development with Nippon Steel & Sumitomo Metal Corporation for weight reduction of chassis parts by utilizing Advanced high strength steel (AHSS). It aims to use 980 MPa to 1,180 MPa class AHSS to lighten its existing products by 15% to 20%. This year, it also entered into a collaboration with H-One Co., Ltd. (H-One), a vehicle body skeleton parts maker, in order to establish technologies for electrified vehicles. The two companies share their computer-aided engineering data, and integrate know-how. The Company aims to add collision safety functions to chassis parts, and develop and offer new vehicle skeleton parts for electrified vehicles. (From an article in the Nikkan Jidosha Shimbun on October 15, 2018)
Orders
| First quarter | Second quarter | Third quarter | Fourth quarter | ||||
| Model name | Supplier area | Model name | Supplier area | Model name | Supplier area | Model name | Supplier area |
| Honda "N-VAN" | Japan | Honda "VEZEL" | Japan | Honda "INSIGHT" | Japan | Chevrolet "Blazer" | North America |
| Honda "CR-V" | Japan | Honda "PILOT" | North America | Honda "ACURA ILX" | North America | Honda "CRIDER" | China |
| Honda "RDX" | North America | Honda "CRIDER" | China | Honda "MDX" | North America | Buick "Excelle BEV" | China |
| Honda "INSIGHT" | North America | Honda "SPIRIOR" | China | Honda "RDX" | China | Cadilac "XT6" | China |
| Honda "CDX" | China | Chevrolet "ORIANDO" | China | Honda "Everus EV" | China | Buick "Excelle" | China |
| Nissan "KICKS" | China | Suzuki "WGN-R" | India | Honda "CIVIC" | Thailand | Honda "BR-V" | Indonesia |
| Suzuki "ERTIGA" | Indonesia | ||||||
| Suzuki "ERTIGA" | India | ||||||
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
| Overall | 2,985 | 2,971 | 3,238 |
R&D Structure
| Name | Location |
| Japan | |
| Haga Technical Center | Haga-gun, Tochigi Prefecture |
| Outside Japan | |
| F.tech R&D North America Inc. | Ohio, U.S. |
| Michigan /R&D NA Office | Michigan, U.S. |
| F.tech R&D North America Inc. European Branch | Duesseldorf, Germany |
| F.tech R&D (Guangzhou) Inc. | Guangzhou, China |
| F.tech R&D Philippines Inc. | Laguna, Philippines |
Technology Licensing-out Agreement |
(As of Mar. 31, 2019) |
| Partners | Country | Type of Support | Contract Period |
| Cheng Yu Industry Co., Ltd. | Taiwan | Technical support dealing with manufacturing and sales | Dec. 21, 1994 - Dec. 20, 1999 Annual automatic renewal from then on |
| Gestamp Tallent Ltd. | UK | Technical support dealing with manufacturing and sales | Jul. 18, 2011- Jul. 17, 2016 Or for as long as the production of the subject products continues. |
| Progressive Tools & Components Ltd. | India | Technical support dealing with manufacturing and sales | Nov. 29, 1996 - and after, with the contract to continue while financing is being provided. |
| YPS Limited | Turkey | Technical support dealing with manufacturing and sales | Sep. 30, 2010 - Sep. 29, 2015 Or for as long as the production of the subject products continues. |
| SMC Co. Ltd. | South Korea | Technical support dealing with manufacturing and sales | Apr. 4, 2006 - Apr. 3, 2011 Annual automatic renewal from then on |
| Cosma do Brasil | Brazil | Technical support dealing with manufacturing and sales | Jan. 30, 2015 - Dec. 31, 2020 Will continue indefinitely until production of the product subject to receiving the technical support ceases. |
| VeeGee Industrial Enterprises Private Limited | India | Technical support dealing with manufacturing and sales | Nov. 25, 2014 - Nov. 24, 2019 Or for as long as the production of the subject products continues. |
| Shanghai Huizhong Automotive Co., Ltd. | China | Technical support dealing with manufacturing and sales | Nov. 25, 2014 - Nov. 24, 2019 Or for as long as the production of the subject products continues. |
| Gestamp Brasil Industria de Autopecas S/A | Brazil | Technical support dealing with manufacturing and sales | Aug. 7, 2015 - Aug. 6, 2020 Or for as long as the production of the subject products continues. |
| Erect Engineering PressWorks Sdn. Bhd. | Malaysia | Technical support dealing with manufacturing and sales | Sep. 14, 2015 - Sep. 13, 2020 Or for as long as the production of the subject products continues. |
| POS-Austem Yantai Automotive Co., Ltd. | China | Technical support dealing with manufacturing and sales | Feb. 5, 2018 - Feb. 4, 2023 Or for as long as the production of the subject products continues. |
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
| Overall | 8,055 | 12,435 | 14,093 |
-For the FY that ended in March 2019: Japan (JPY 2,415 million), North America (JPY 2,497 million), and Asia (JPY 3,236 million)
Planned Capital Investments |
(As of Mar. 31, 2019) |
| Company Name Location |
Segment | Planned investment (in million JPY) |
Start | Completion | Increased capacity after completion |
| Head Office/Kuki Plant | Businesses related to automotive components | 1,210 | Apr. 2019 | Mar. 2020 | Facility expansion in line with launch of a new model |
| F&P Mfg., Inc. (Ontario, Canada) |
Businesses related to automotive components | 5,557 | Apr. 2019 | Mar. 2020 | Facility expansion in line with launch of a new model |
| F&P America Mfg., Inc. (Ohio, USA) |
Businesses related to automotive components | 3,354 | Apr. 2019 | Mar. 2020 | Facility expansion in line with launch of a new model |