FY2020 Financial Result From April 1, 2020 through March 31, 2021
TACHI-S CO.,LTD. May 27th, 2021 TTK2 Kai
Concept X-3 “Driver’s Sofa” Securities Code: 7239 (Tokyo/First Section) 1/63 Corporate Overview
Company Name TACHI-S CO., LTD.
Corporate Headquarters 3-3-7, Matsubara-cho, Akishima-shi, Tokyo
Date of Establishment April 7, 1954
Paid-in Capital 9.04 billion yen
198.5 billion yen (Consolidated) Net Sales (Fiscal Year Ended March 31, 2021)
Number of Employees 12,421 (Consolidated) (As of March 31, 2021)
Stock Exchange Listing Tokyo / First Section (Securities Code : 7239)
Business Contents Manufacturing of automotive seats
2/63 Contents
FY2020 Financial Result
FY2021 Financial Forecast
Mid-term Management Plan Business Strategy Financial and Capital Strategies Corporate Governance
3/63 Contents
FY2020 Financial Result
FY2021 Financial Forecast
Mid-term Management Plan Business Strategy Financial and Capital Strategies Corporate Governance
4/63 Financial Result (Consolidated)
(Unit: billion yen） vs. previous year (Amounts are rounded down)
2020/03 2021/03 Change Change(％) Net Sales 282.3 198.5 -83.8 -29.7 Operating Income -0.0 -7.7 -7.7 － Ordinary Income 1.0 -7.2 -8.3 － Net Income* -1.5 -13.7 -12.1 － 282.3 198.5
-0.0 -7.7 1.0 -7.2 -1.5 -13.7 20/03 21/03
Net Sales Operating Income Ordinary Income Net Income
5/63 Analysis of Increase / Decrease (Consolidated)
(Unit: billion yen） vs. previous year Net Sales (Amounts are rounded down)
COVID-19 impact 282.3 21/03 -43.2
198.5 Region Change Change(%)
88.4 Japan -39.1 -30.7％
29.3 North America -14.2 -32.6％
41.1 Latin America -16.4 -28.5％
0.5 Europe -1.0 -64.9％
37.7 China -10.5 -21.9％
1.1 Southeast Asia -2.3 -67.1％
20/03 21/03 Exchange 20/03 USD=¥109.13 RMB=¥15.86 Rate 21/03 USD=¥105.79 RMB=¥15.41 6/63 Analysis of Increase / Decrease (Consolidated)
COVID-19 impact (Unit: billion yen） vs. previous year 21/03 -7.0 (Amounts are rounded down)
Operating Income Net Income -7.7 Region Change -13.7 Region Change
0.0 Europe -0.0 0.0 Europe 0.0 -1.5 Equity method -0.1 -0.0 1.1 China -2.8 1.0 affiliates
-2.0 Japan -1.7 -6.6 Japan -6.4
-2.1 North America -1.1 -1.9 North America -0.6
-4.0 Latin America -1.8 -5.4 Latin America -2.6
-0.0 China -1.9 -0.6 Southeast Asia -0.2 -0.5 Southeast Asia -0.2 20/03 21/03 20/03 21/03 7/63 FY2020 Results (Consolidated)
(Unit: billion yen） vs previous forecast (Amounts are rounded down)
2021/03 2021/03 増減額 増減率（％）Change Released Actual Q1 Q2 Q3 Q4 Net Sales 187.0 198.5 37.9 41.6 58.3 60.5 11.5 Operating Income -9.0 -7.7 -5.5 -3.9 -0.0 1.8 1.2 Ordinary Income -10.5 -7.2 -7.0 -3.9 0.6 3.0 3.2 Net Income* -12.7 -13.7 -7.1 -5.8 0.1 -0.7 -1.0
Q2: 2.1 billion yen for special early retirement on TACHI-S non-consolidated basis. Q4: 2.7 billion yen for impairment loss on TACHI-S non-consolidated basis. 0.7 billion yen for business revitalization in Latin America. 8/63 Contents
FY2020 Financial Result
FY2021 Financial Forecast
Mid-term Management Plan Business Strategy Financial and Capital Strategies Corporate Governance
9/63 Annual Forecasts (Consolidated)
(Unit: billion yen） vs previous forecast (Amounts are rounded down)
21/03 22/03 Change Change(％) Net Sales 198.5 234.0 35.4 17.9 Operating Income -7.7 1.4 9.1 － Ordinary Income -7.2 1.8 9.0 － Net Income* -13.7 0.1 13.8 －
(Unit: billion yen） vs. previous year Net Sales (Amounts are rounded down)
（ ）Before correction of the impact 234.0 of revenue recognition standards （253.0） Region Change Change(%) 198.5
92.5 Japan 4.0 4.6％ (111.5) （23.0） （26.1％）
48.1 North America 18.7 64.0％
53.6 Latin America 12.4 30.2％
0.5 Europe -0.0 -8.9％
36.8 China -0.8 -2.4％
2.2 Southeast Asia 1.1 95.9％
21/03 22/03 Exchange 21/03 USD=¥105.79 RMB=¥15.41 Rate 22/03 USD=¥108.00 RMB=¥16.50 11/63 Analysis of Increase / Decrease (Consolidated)
(Unit: billion yen） vs. previous year (Amounts are rounded down)
Operating Income Net Income
1.4 Region Change 0.1 Region Change 0.9 Japan 7.6 1.4 Japan 3.4 0.1 Europe 0.0 0.2 Latin America 4.2 0.7 China 0.8 Equity method -13.7 0.9 affiliates -0.0 2.1 China 0.9 -7.7 -1.5 North America 0.3
-1.7 North America 0.4 -0.6 Latin America 4.8 -0.4 Southeast Asia -0.1 Europe -0.1 0.1 -0.5 Southeast Asia 0.1
21/03 22/03 21/03 22/03 12/63 Contents
FY2020 Financial Result
FY2021 Financial Forecast
Mid-term Management Plan Business Strategy Financial and Capital Strategies Corporate Governance
13/63 History
Started as a seat manufacturer, TACHI-S has grown to a “Seat System Creator” with fully integrated development and production systems and then to a “Global Seat System Creator” providing our products the world over. Along with globalization of our customers, we have increased our sales. As the automotive industry enters a once-in-a-century transformation, however, the environment surrounding our company is changing drastically, and we must make changes in the way we do things or we are no longer able to envision our sustainable growth. In order to offer new value through our business activities and to survive as a truly independent company, we defined “Purpose of TACHI-S” and formulated a mid-term management plan for 2021 to 2024, tentatively named “Transformative Value Evolution (TVE)”.
Sales 300.5 billion yen (2.6 times compared to 2004)
Sales 113.8 billion yen
Seat manufa cturer 2004~ 2009~ 2012~ 2016~ 2021~
Seat System Creator Global Seat System Creator Space Producer 14/63 Our Purpose Corporate Vision Bring smiles by continuously creating comfortable living spaces to enrich people’s lives in harmony with people and society
Technology to support human posture with "safety, security and comfort" Technology to "combine" various materials Monozukuri capabilities to "deliver high-quality products on a global scale" We defined Purpose of Tachi-S (the axis of corporate activities) to provide social and economic value and to realize a sustainable society.
Supporting People and the Earth through Seating Technology
Supporting posture of people We will contribute to people's health and Quality of Life by providing comfort/safety/sense of security for sitting posture that occupies 30% of the day, and for various postures.
Supporting people We will support all stakeholders and society through our business.
Supporting the Earth Based on the spirit of "Mutual concession and cooperation" taught by our founder, we will maintain harmony with the Earth by addressing SDGs initiatives and contribute to the realization of a sustainable and environmentally friendly world.
15/63 Review on GT2020 Summary
Quality Earning evaluations from markets, we won No.1 for 2 segments of the J.D. Power in North America in FY2018 and FY2019. In addition, we received two quality awards from our customers in each region in FY2016. Every year we received more awards and, we won nine quality awards in FY2020.
Performance (billion yen) As our customers became more globalized, we Consolidated expanded production sites and increased production 3,500350 15.0% volume and sales. However, our production volume 295.5 300.5 decreased in line with the drop in global production 3,000300 282.5 282.3 volume from the latter half of FY2018. Although we have maintained 4% level of share in the global market, 10.0% our operating income ratio has decreased. 2,500250 198.5 2,000200 4.3% 4.3% 4.3% 4.4% Review 5.0% 1,500150 In expanding our global network, our development 4.0% for new models and support for manufacturing site 1,000100 3.1% 2.9% were implemented individually which resulted in 0.0% inefficient operations in receiving orders activities and 1.8% development and production preparation activities. 50050 -0% Also, due to the fact that we put focus on receiving -3.9% orders as the foundation of future business, our 0 -5.0% “target costing” was not proceeded sufficient enough FY2016 FY2017 FY2018 FY2019 FY2020 which resulted in a decrease in operating income Sales ProfitOperating ratio Share ratio. 16/63 income ratio Review on GT2020
Expanding our business globally, we have achieved positive results in the areas of sales, Monozukuri, and corporate governance.
Key activities Major Results FY2016 - FY2020
(1) Increased the number of global sites (14 countries/69 sites) and the number of Global Business car models to be launched. Expansion Launched 9 new sites since FY2016. (2) Implemented partnership strategy. (Alliance with Toyota Boshoku, Incorporation of Fuji Kiko Seat Division)
(3) Developed and approached to new customer business. (Japanese OEM, Chinese local OEM, emerging EV OEM)
Sales power (4) Expanded components business. (frames, trim covers, headrests, mechanical parts)
Sales increased approximately 5 times from FY2015 to FY2020 FY2015 FY2019 FY2020
(5) Developed and proposed FR seat frame, TTK-X.
(7) Implemented initiatives for CSR and Global IT Network. Enhancement of Established Group’s shared values (Vision/Mission/Value). Corporate Governance (8) Introduced performance-linked stock compensation, and increased the number of outside directors. 17/63 Approach to Medium-Term Management Strategy Transformative Value Evolution ～Take the initiative and discover “New” ～ We transform our operations by Deepening existing seat business field. Leveraging the outcomes, through innovating and Renewing, we create innovations that lead to new value and expand our business fields. Our aim is to increase corporate value by investing for further growth as we work to return the achievements to all our stakeholders. Customers
Investors Stakeholders
Expansion of business fields
Innovating Deepening Renewing
Suppliers Employees
International/ Local communities
18/63 Target of Medium-Term Management Strategy
■ Target In addition to business strategies, we aim to enhance corporate value by comprehensively considering financial and capital strategies.
■ Target value
FY2024 Management Targets Operating income 9.0～10.0 billion yen
ROE Minimum: 8％ / Target:10％
DOE 4% Net Sales 270.0 billion yen
19/63 Contents
FY2020 Financial Result
FY2021 Financial Forecast
Mid-term Management Plan Business Strategy Financial and Capital Strategies Corporate Governance
20/63 Expansion of business fields
In the midstream (seat assembly business) which is our main business, severe cost competition is expected to continue. →We promote three types of "Shinkha": “Innovating," "Deepening," and “Renewing“ in the upstream, midstream, and downstream respectively.
Research & Services, Advanced Car Model Development Assembly Sales Connected added value added Development Upstream Midstream Downstream
Innovating Deepening Renewing
Based on existing ・Spread within the In the Automotive SEAT business, technologies, expand into automotive business with make its operation leaner and non-automotive fields in along SEAT as the center. pursue attractive products. with our Purpose. ・Interior Space Producing (Non-Automotive) ・Service Engineering
Existing Purpose technology
21/63 Business Portfolio
In the "digging for deepening" area, increase profitability by making operational process leaner, and invest management resource gained from the initiative in the "inspiring for renewing" and "advancing for innovating" areas for growth to drive innovations. As a result, create values in a broader area by changing the sales composition.
Position of Tachi-S and Direction to aim Sales Composition (Image)
Current Customer Future Experience Value
“Deepening” Area Non-Automotive
Components business
Components business Space producer
Advanced Deepening development items Existing seat Now Innovation Leaner business of Renewing operations technology Innovating Components business: Frames, trim covers, headrests, mechanical parts 22/63 Roadmap to Growth Strategies
Wave 0~1: As revitalizing and strengthening phases, rebuild the foundation by improving the profit structures and asset efficiency. Wave2 : Realize a great leap towards both Interior Space Producer and Non-Automotive businesses. ’21 ’22 ’23 ’24 ´20 ’25 ’26 ’27 ’28 ’29 ’30 Mid-term Management Plan Revitalizing / Strengthening phases Wave２
Wave１ Leap orporate orporate value
C Wave 0 Continuity and Improvement
2021-2022: Secure profit and establish Corporate Purpose Wave 0 1) Improve profit structures 2) Establish Purpose of TACHI-S
2022-2024: Prepare for Leap 1) Establish a corporate structure to secure profits Wave 1 2) Set out to become a Space Producer and launch Non-Automotive business
2024-2030: Realize a Leap and establish two wheels of business 1) Embody Corporate Purpose and take a great leap in an era of great transformation. Wave2 2) Spreading from seat business, establish pillar businesses as two wheels: Interior Space Producer and Non-Automotive businesses. 23/63 Improvement of Profit Structure Seeing a recovery from the COVID-19 impact in the 2nd half of FY2020, we have undertaken initiatives to improve the profit structure of the entire Group and to create new businesses in an aim to quickly respond to future changes in the environment.
Sites Latest Profit Improvement Items Japan North America Latin America
Reorganization of '21-'24 '21-'23 '21-'23 plants/offices In progress In progress In progress
Improvement of logistics '21-'24 '21-'23 ー efficiency In progress In progress '20 ‘21～ '20~ Reduction of fixed costs Completed In progress In progress
Sites Key activities
With a focus on improving the profit structure, acquire new orders in seat business while Japan expanding components business. Step up initiatives for new businesses (Non-Automotive fields). Implement structural reforms to drastically improve profitability and cultivate new businesses North America with emerging OEMs and others. With a focus on improving the profit structure, expand components business while securing Latin America existing seat business as our core competencies. Recover operating income ratio, while securing existing businesses and bolstering order China receiving activities for new businesses. Strengthen sales activities for new businesses and develop new businesses starting from Asia components business field. 24/63 Forecast of profitability improvement
Improve our business performance from FY2021 to FY2024 by “deepening” our business and improving profit structure to achieve a V-shaped recovery. In FY2024, sales is forecasted to be almost the same level of FY2018 and operating income to double to 9 to 10 billion yen.
Net sales Operating income 旧収益認識基準 新収益認識基準 営業利益額 (Unit: billion yen） Before correction of the impact of revenue recognition standard (Unit: billion yen） revenue recognition standard 3,400350 Operating Income 30030 300.5 300.0 282.3 2,900300 270.0 25025 253.0 234.0 20020 2,400250 198.5 15015 1,900200 9.0～10.0 10010 1,400150 5.4 1.4 505 100900 -0.0 0 0 50 400 -50-50-5 -7.7 -100-10 -100--10010 FY2018A2018 FY2019A2019 FY2020P2020 FY2021P2021 FY2024P2024 25/63 Key activities Our Purpose Business Strategy （ three types of "Shinkha"）
Key activities
Transformation of Monozukuri Reform and restructure business strategies Human capital management to achieve transformation
Improve Monozukuri “Integration Capability” Order receiving strategies by Skill up middle level Improve “Value Creation Capability” selection and concentration management Cost excellence Promote integrated organizational Introduce new HR system Introduce attractive products and new sales activities Train overseas key people technologies Promote profitability improvement Strengthen components business activity
DX promotion（Foundation of activities）
26/63 Key activities
Strengthening Monozukuri competitiveness / Strengthening organizational sales capabilities Based on our strength as an independent, promote proposal activities providing values exceeding customers’ expectation from an early stage with design concept to "commonize“ various needs of customers.
■Unified organizational sales activities
Promotion of "commonization" is to pursue “Deepening" by Aim maximizing efficiency in Monozukuri. Aim to efficiently expand business by reducing cost and allocating conventional resources to new areas, "Renewing" and "Innovating".
27/63 Key activities Strengthening management foundation
Human capital management to realize transformation
• Apply Evaluation of • Train managers to become Contribution Behavior globally "middle management"
• Introduced a performance- Introduce • Set up multiple career courses linked stock-based various Implement (Japan) scheme to compensation system for management allow to develop major Global employees, employees to human including executive officers feel strong capital “job satisfaction"
Implement Global Talent • Set Key Positions within the Management group based on Global Grading
• Maintain diversity in key positions
Significant improvement in work efficiency and promotion of shift to value-creating operations
Execute creativity Manage "time to create new value" by visualizing work hours of indirect employees and emergence and Shift to data-driven business processes as the first step toward DX take a leap forward Implement and establish a global network in promotion of key operations Improve decision-making efficiency by updating DOA to be consistent with the current business scale 28/63 Key activities Promotion of DX '21 '22 '23 '24 '25 '26 '27 '28 '29 '30 Building the foundation for DX Value creation through DX
Monozukuri connected by data (Development) Monozukuri connected by data (Production)
Build a system to integrate information such as Transformation of Monozukuri by digitalization. technical know-how, cost information, and others and provide designers with advise for optimal design as needed by utilizing AI technology. Product lifecycle management
2021-2022 2023- 2030-.
Unitary management by system
Aim Aim Establish an environment to maximize work Realize process management that visualizes efficiency, shorten development time, and create “current“ situation of actual sites by linking data new values. between facilities and companies and reforming management operations. 29/63 Initiatives for Transformative Value Evolution
Providing economic and social value and promoting corporate activities toward the realization of a sustainable society
Purpose of TACHI-S Initiatives Supporting ・Comfortable space Space Producing, entertainment, and people (posture) space-saving arrangements, etc. through seating ・Touchless, sensing ・Cleanliness, sterilization and disinfection technology ・HMI (Human Machine Interface)
・Respect employees (safety, health, satisfaction) ・Fair and transparent transactions (green procurement) Supporting ・Promote diversity in officers people ・Promote diversity ・Improve WLB through work style reform (Stakeholders ・Management development respecting core labor and society) standards ・Return profits to society (tax payment) ・Reduce CO₂ emissions ・Promote resource saving and material recycling Supporting ・Water resource management the Earth ・Chemical substance management ・Biodiversity ・Social contribution (forest conservation)
30/63 Innovating products and technologies for the future
Purpose of Pursuing "sitting" to Initiatives supportTACHI-S people and the earth Body sensing Operate without a switch Seating technology
Free arrangement of Privacy support Thin Rear Cushion interior space Supporting people
Environmental Plant-derived materials technology development Plant-derived Supporting urethane foam the Earth
31/63 Deepening seat frame
Pursuing2010 "sitting"2015 to 2020 2025 2030 support people and the earth Achieved the industry's lightest level of ministry
Mechanism TTK1 TTK2 TTK-X "Deepening" renewal modified Full automation Material replacement Ultra-thin Power saving
Weight: -2.2 kg Weight: -1.8 kg
Specialized frame Target mass Mechanism for each model renewal Standardization -20% Full automation Material Specialized frame replacement for each model Ultra-thin Target mass Power saving -20% Specialized frame for each model
32/63 Reduction of environmental impact Reduction target for CO2 emissions
CO2 emissions per unit of production Unit: kg-CO2/unit
2020 Result: 2030 target: Promote energy-saving at office Reduced 13% Reduce 46% Continue daily improvement from FY2013 from FY2013* activities Update to energy-saving (Base point) production facilities
Technology Innovation (Product, Product Engineering, Production) Installation of renewable energy
2013 2020 2030 2040 2050 Year
In accordance with the government's new target (-46% announced on April 22), reasonable measures are to be planned based on the government policy. 33/63 Contents
FY2020 Financial Result
FY2021 Financial Forecast
Mid-term Management Plan Business Strategy Financial and Capital Strategies Corporate Governance
34/63 Business Profile
Our global business establishes JV companies with optimal business partners in various OEM fields and geographic regions, making mutual use of each partner’s strengths in joint manufacturing and marketing. This partner strategy also functions as a way of dispersing risk. Figures in pie charts are number of companies
China 3 44 North 1 1 America ４ 9 1 ４ 7 Japan 1 100% JV w/ 50% or higher JV w/ less than 50% subsidiary ownership ownership ４ Seat Trim トリム ４ businessトリム事業 Latin Net sales Components America 部品事業機構部品 business Seat Aシート事業ssemblyシート事業 business 0 50 100 150 200 250 300 350 400 (billions yen) (billions yen) Seat Assembly Components Seat Trim Group sales FY2024 Total business business business exposure Consolidated net sales 250.0 13.0 7.0 270.0 Consolidated sales prior to 262.0 35.0 27.0 324.0 offset of internal transaction (Effect on the application of 28.0 ー ー 28.0 420.0 revenue recognition standard) Equity-method affiliate sales 51.0 ー 17.0 68.0 35/63 Strategic Policy
Strategic policy: Manage with an awareness of the cost of capital
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 Wave０-１ Wave2
Designating Wave 0 ～ Wave １as a period of “Managing with an awareness of the cost of capital” and instilling this throughout the Group. Improving capital structure, aiming for FY2024 minimum ROE of 8%, target of 10%. Using ROIC as important management index for ROE achievement. Business & Investment Strategy Business portfolio diversity ・Maximize value of existing businesses [Deepen] Strengthen existing seat Raise ROIC through competitiveness business returns Expand parts business ・Create new value [Evolve] Create enhanced car interior and space, etc. Continuous [Innovate] Apply existing technologies to expand into non-automotive fields enhancement of Human resource management corporate value Promote Digital transformation Financial strategy Reduce cost of capital ・Improve asset profitability Raise ROIC through ・Proactively provide returns to pursuit of optimal shareholders ・Make use of interest-bearing debt, etc. capital efficiency Understand situation at businesses and market trends, and respond flexibly with optimal action 36/63 Strategic Goal
ROE for past 5 years and FY2024 ROE Minimum 8％ FY2024 targets 9.0％ Target Target 10% 10％ Minimum 8.5％ 8％ ROE calculation Net income = method Avg. of equity capital at beginning and end of term 2.1％ Use ROIC as an important management -1.8％ index for ROE achievement
-17.3％ FY2024 ROIC 8％ or higher
Adjusted operating income ROIC for past 5 years and FY2024 target ＝ NOPAT (Net Operating Profit After-Tax) 9.8％ 8％ or ROE calculation + Equity method investment gain/loss 8.3％ = higher method Avg. of interest-bearing debt at beginning and end of term + Avg. of equity capital at beginning and end of term 5.5％
Equity in earnings of affiliates is expected to be 1 to 2 billion yen 1.1％ Increase adjusted operating income through business strategy and partner tie-ups -4.5％ Increase asset efficiency 37/63 Shareholder Return Policy
Dividend payout ratio of 20% or higher FY2021 - FY2024 DOE* 3~4％
*Dividend on Equity ratio
Using Dividend on Equity (DOE) ratio as primary financial index for dividends Proactively providing returns to shareholders while comprehensively taking into account factors including cash flow, maintenance of healthy financial base for medium to long term, etc., with FY2024 ROIC target of 8% or higher
The total amounts of dividends (for 4 years) is estimated to be 11 billion yen based on TACHI-S Mid-term Management Plan
DOE for past 5 years and FY2020~24 target Outstanding invested capital for past 5 years and FY2024 target Equity capital MTP roughly 11 billion yen Interest-bearing debt
4％ 4％ Use of interest- 3.5％ bearing debt as investment for 3％ Total returns over growth past 5 years: 3.4 billion yen Management 1.0％ 1.0％ through capital 0.8％ 0.8％ measures 0.3％
38/63 Cash procurement and disbursement
Strategic policy: Cash procurement and disbursement during Wave 0 - 1 Cash inflow (procurement) Cash outflow (disbursement) Returns to Returns to Returns to Returns to shareholders/C/F generation Useshareholders/ of interest- Investmentshareholders/ for growth shareholders/ Value enhancement Valuebearing enhancement debt Value enhancement Value enhancement
Cash & deposits (Cash on hand)
(Surplus funds) Capital investment, etc. [Deepening] Interest-bearing debt Approx. 25 billion yen
Investment for further Sales of non-operating growth assets, etc. [Innovating/Renewing] 10-20 billion yen Flexible sales of 4-year treasury shares, etc. operating C/F 35-40 billion yen Returns to shareholders: 10-12 billion yen
39/63 Contents
FY2020 Financial Result
FY2021 Financial Forecast
Mid-term Management Plan Business Strategy Financial and Capital Strategies Corporate Governance
40/63 Corporate Governance
Strengthening our Business Foundation
Four items in the CG report submitted to the TSE last year 1.
4.
Items added to revised Corporate Governance Code 5.
41/63 Corporate Governance
Time of Response to Governance Issues response Item 2.
3.
Explanation 1.
42/63 Supporting People and the Earth through “Seating” Technology
Global Seat System Creator
Cautionary Statement This document contains certain forward-looking statements based on the information available and obtained by TACHI-S Co., Ltd. Such forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. 43/63 Appendix
44/63 Capital Expenditures, R&D and Depreciation cost (consolidated)
(Unit: billion yen） Capital Expenditures & Depreciation 10 Capital Expenditures Depreciation
6.9 6.7 6.7 5.9 6.4 6.6 5 5.6 5.2 4.6 4.7
0 18/03 19/03 20/03 21/03 22/03 （forecast）
(Unit: billion yen） R & D
5 5.5 4.8 4.6 4.5 3.7 2.5
0 18/03 19/03 20/03 21/03 22/03 45/63 （forecast） New Model Launch New Models/Model Minor Changes in FY2020 2020 2021 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar ●SKYLINE ●N-One ●N-BOX ●VEZEL Sedan (MY21) (MY21) ●OUTLANDER Japan ●Honda e ●ECLIPSE CROSS （Japan） (MY21) ●Export Small Truck ●SKYLINE Coupe （MY21) ●ACCORD(MY21) USA ●MAXIMA ●MURANO
●Versa(MY21) ●KICKS (MY21) Mexico ●SENTRA(MY21) ●Versa ●March (MY21) (MY21)
●KICKS ●KICKS Brazil (MY20.5) (MY21)
●Pickup base utility ●Pickup ●CIVIC 5Dr ● OUTLANDER China ●OUTLANDER ●M-NV (MY21) (MY20) ● ECLIPSE CROSS (MY20)
●NOTE ●OUTLANDER ASEAN （MY20)
※MY：Model Year ●NISSAN/VENUCIA ●HONDA/ACURA ●MITSUBISHI ● Toyota/Hino ●CHERY ●GEELY 46/63 FY2020 Main New Launch Models
HONDA EV 「Honda e」 Seat ” (for Japan)
Start of Production: July 2021 Production Site: Musashi plant
HONDA VEZEL Rear Seat
Start of Production: March 2021 Production Site: Suzuka plant
47/63 FY2020 Main New Launch Models
Mexico NISSAN SENTRA Seat
Start of Production: August 2020 Production Site: TACHI-S Mexico
MITSUBISHI OUTLANDER Seat
Start of Production: January 2021 Production Site: Aichi plant
48/63 FY2020 Customer Award Outcomes from our team efforts for quality improvement From NISSAN Supplier Quality Award Japan Regional Quality Award
Lear DFM TACHI-S Automotive Seating (Dailian) Co. Ltd.
Mass Production Best Quality Performance Award Quality Award
Zhengzhou Dongfeng Lear Taixin TACHI-S Lear DFM Automotive Seating (Xiangyang) Co., Ltd. Automotive Seating Co. Ltd. 49/63 FY2020 Customer Award Outcomes from our team efforts for quality improvement From NISSAN From GMMC Regional Supplier Quality Award Delivery and Quality Award
TACHI-S Automotive Seating (Thailand) Co., Ltd. Hunan TACHI-S Automotive Seating Co., Ltd. From HONDA Delivery and Quality Award
SETEX AUTOMOTIVE MÉXICO, S.A. DE C.V. SETEX, Inc. 50/6350/63 FY2020 Customer Award 「Supplier Award」 from HONDA
Awarded for the third consecutive year in recognition of the target cost achievement activities and annual cost reduction activities of "New N-ONE, New VEZEL"
Technology Development Excellence Award from HINO
Developed and Awarded with world first back panel shock absorption seat and headrest frame.
51/63 Exchange Rate
(Unit: yen）
18/03 19/03 20/03 21/03 22/03 （forecast）
USD 111.19 109.18 109.13 105.79 108.00
MXN 5.94 5.73 5.65 5.02 5.20
EUR 129.36 122.00 121.27 123.22 129.00
RMB 16.59 16.31 15.86 15.41 16.50
52/63 Net Sales by Customer (Consolidated)
(Unit: billion yen）
Honda Nissan Toyota Mitsubishi Other
99.0 75.1 16.4 31.3 11.9 22/03 42％ 32％ 7％ 14％ 5％ 234.0 (forecast)
85.9 52.2 32.8 19.3 8.1 87 5% 21/03 198.5 43％ 26％ 17％ 10％ 4％
110.6 85.4 35.5 41.8 8.7 20/03 282.3 39％ 30％ 13％ 15％ 3％
117.9 102.5 31.8 36.9 11.3 19/03 300.5 39% 34% 11% 12% 4%
125.5 98.7 29.0 28.8 13.3 18/03 42% 33% 10% 10% 5% 295.4
0.0 50.0 100.0 150.0 200.0 250.0 300.0 350.0 53/63 Net Sales by Region (Consolidated)
(Unit: billion yen）
Japan North America Latin America China Europe Southeast Asia
Europe 0.5 Southeast Asia 2.2
92.5 48.1 53.6 36.8 22/03 234.0 39％ 21％ 23％ 16％ (forecast)
Europe 0.5 Southeast Asia 1.1 5% 88.4 29.3 41.1 37.7 21/03 198.5 44％ 15％ 21％ 19％
39% 34% 12% 4% Europe 1.6 Southeast Asia 3.5 43.5 48.2 127.5 57.6 282.3 20/03 45％ 15％ 20％ 17％
42% 33% Europe10% 5%3.1 Southeast Asia 4.3 134.4 50.3 55.7 52.5 19/03 300.5 45% 17% 19% 17%
Europe 2.1 Southeast Asia 3.4 126.9 51.8 60.3 50.6 18/03 43% 34% 10% 4% 295.4 43% 18% 20% 17%
0 50 100 150 200 250 300 350 54/63 Operating Income by Region (Consolidated) (Unit: million yen）
Japan North America Latin America China Europe Southeast Asia
Southeast Asia -529 Europe -120 Latin America 222
22/03 -1,717 1,425 2,119 1,400 (forecast)
Southeast Asia -661 Europe 30
-4,010 -2,182 21/03 -2,069 1,138 -7,753
Southeast Asia -456 Japan -366 Europe 65
20/03 -2,191 -1,021 3,941 -27
North America -371 Europe 32 Southeast Asia 170
19/03 -1,365 785 6,161 5,412
Japan 1,066 Southeast Asia 16
18/03 -1,228 816 1,967 6,026 8,663
-264
-9,000 -6,000 -3,000 0 3,000 6,000 9,000
55/63 Ordinary Income by Region (Consolidated) (Unit: million yen）
Japan North America Latin America China Europe Southeast Asia Latin America -692 Europe -74 Japan 1,573 Southeast Asia -479 22/03 -1,547 3,019 1,800 (forecast)
Southeast Asia -540 Europe 43 21/03 -5,409 -1,520 -1,728 1,884 -7,270
North America -457 Japan 12 Europe 48 Southeast Asia -417 20/03 -3,047 4,942 1,080
Europe -4 Japan 1,139 North America 681 Southeast Asia 355
19/03 -2,511 7,390 7,050
Europe -1201 Southeast Asia 69
18/03 1,709 1,929 2,430 6,999 11,935
-10,000 -6,000 -2,000 2,000 6,000 10,000 14,000 56/63 Domestic Business Sites
As of the end of March 31, 2021
Business site Established Location Business Contents Major Customers
Head Office April, 1954 Akishima-shi, Tokyo Administration
Technical Sales, Purchasing, R&D, Production, Monozukuri April, 2012 Ome-shi, Tokyo Testing, Quality assurance etc.. Center
Technical Center August, 1999 Anjo-shi, Aichi Sales, Purchasing, R&D Aichi
Manufacturing of automotive TOYOTA, Mitsubishi, Aichi Plant April, 1977 Anjo-shi, Aichi seats and parts TOYOTA BOSHOKU
Manufacturing of automotive Musashi Plant January, 1980 Iruma-shi, Saitama HONDA seats and parts
Prototype Hino, TOYOTA BOSHOKU, Ome Plant April, 1969 Ome-shi, Tokyo Manufacturing of automotive UD Trucks, seats and parts TOYOTA MOTOR EAST JAPAN
February, Shimotsuke-shi, Manufacturing of automotive Tochigi Plant NISSAN, NHK Spring, Hino 1982 Tochigi seats and parts
Hiratsuka-shi, Manufacturing of automotive Hiratsuka Plant July, 1982 NISSAN SHATAI Kanagawa seats and parts
Manufacturing of automotive Suzuka Plant October, 1984 Suzuka-shi, Mie HONDA seats 57/63 TACHI-S Group Companies (Japan)
Equity Company Established Location Business Contents Capital Major Customers Scope of participation consolidation
50 Kosai-shi, R&D/manufacturing/sales TACHI-S, ADIENT, TF-METAL Co., Ltd. May, 2017 100.0％ million Shizuoka of automotive seat parts SUZUKI 1 yen
Nui Tec Hamura- Manufacturing of 325 TACHI-S, July, 1985 shi, automotive seats and 100.0％ million TOYOTA BOSHOKU 1 Corporation Tokyo trim covers yen TOHOKU
TACHI-S, TACHI-S H&P Akishima- Manufacturing/sales of 40 TF-METAL and April, 1961 shi, springs, automotive seat 100.0% million other non 1 Co., Ltd. Tokyo parts and medical beds yen automotive manufacturers
Miyako- 100 Kinryo Kogyo February, Manufacturing/sales of gun, 25.0% million TACHI-S, ADIENT 1976 automotive seats and parts 2 Co.,Ltd. Fukuoka yen
15 Iwata Fuji Kiko October, Iwata-shi, Manufacturing/sales of TF-METAL, (100.0％) million 1986 Shizuoka automotive seat parts NHK Spring 1 Co., Ltd. yen
10 Kyushu Fuji Kiko Nakatsu- Manufacturing/sales of TF-METAL, July, 1985 (100.0％) million shi, Oita automotive seat parts FujiKiko 1 Co., Ltd. yen
10 Higashi mikawa October, Shinshiro- Manufacturing of (100.0％) TF-METAL 1986 shi, Aichi automotive seat parts million 1 Fuji Kiko Co., Ltd. yen
1. Consolidated 2. Consolidated 6 Companies 1 Company 3. Unconsolidated subsidiary subsidiary affiliate TACHI-S Service Co., Ltd. 58/63 TACHI-S Group Companies (North America)
Equity Company Established Location Business Contents Capital Major Customers Scope of participation consolidation
TACHI-S Sales/R&D/business July, Michigan, 43 million Engineering administration 100.0% 1986 U.S.A . USD 1 U.S.A., Inc. in North America
TF-METAL Business July, Michigan, 0 million Americas administration/R&D *(100.0%) 2000 U.S.A . USD 1 Corporation in Americas
September, Ohio, Manufacturing/sales of 5 million HONDA (U.S.A.), SETEX, Inc. *(51.0%) 1987 U.S.A. automotive seats USD ADIENT 1
TACHI-S Automotive December, Tennessee, Manufacturing/sales of 22 million *(100.0%) NISSAN (U.S.A.) Seating 2005 U.S.A. automotive seats USD 1 U.S.A., LLC
Major automotive seat Manufacturing/sales of TechnoTrim, November, Michigan, 120 thousand manufacturers in North automotive seat trim *(49.0%) 1986 USD America including 2 Inc. U.S.A . parts TACHI-S group companies
TF-METAL March, Kentucky, Manufacturing/sales of 10 million TAS-U.S.A., U.S.A., *(100.0%) 2004 U.S.A. automotive seat parts USD TACHI-S Mexico, ADIENT 1 LLC
Nova TACHI-S September, Business administration 12 million Scotia, *(100.0%) 2004 in Canada CAD 1 Canada, Ltd. Canada
1. Consolidated 2. Consolidated 6 Companies 1 Company subsidiary affiliate *（including subsidiaries’ equity） 59/63 TACHI-S Group Companies (Latin America / Europe)
Equity Scope of Company Established Location Business Contents Capital Major Customers participation consolidation
TACHI-S R&D/business 2,184 Engineering May, Aguascalientes, administration *(100.0%) million 2012 Mexico 1 Latin America, in Latin America MXN S. A. de C. V.
Industria de Manufacturing/sales of Asiento Superior, April, Aguascalientes, 26 million automotive seats and *(100.0%) NISSAN (Mexico) 1 S.A. de C.V. 1991 Mexico seat parts USD (TACHI-S Mexico)
SETEX Automotive September, Guanajuato, Manufacturing/sales of 24 million *(95.0%) HONDA (Mexico) Mexico, S. A. 2012 Mexico automotive seats USD 1 de C. V.
TACHI-S Mexico, TF-METAL Mexico, September, Aguascalientes, Manufacturing/sales of 27 million *(100.0%) TF-METAL U.S.A., 2012 Mexico automotive seat parts USD 1 S.A. de C.V. Faurecia
TACHI-S Brasil Industria de August, Rio de Janeiro, Manufacturing/sales of 275 million Assentos *(100.0%) NISSAN (Brazil) 2012 Brazil automotive seats BRL 1 Automotivos Ltda.
TACHI-S Sales/R&D in Europe, October, Meudon-La-Forêt, 23 million ADIENT, Magna, Engineering manufacturing/sales of 100.0% 2004 France EUR NISSAN (Spain) 1 Europe S.A.R.L. automotive seat parts
1. Consolidated *（including subsidiaries’ equity） 6 Companies subsidiary 60/63 TACHI-S Group Companies (China-1)
Equity Scope of Company Established Location Business Contents Capital Major Customers participation consolidation
TACHI-S China October, Guangdong, Sales/R&D/business 259 million 100.0% Co., Ltd. 2011 China administration in China RMB 1
TACHI-S Engineering December, Henan, 75 million R&D in China *(100.0%) Zhengzhou Co., Ltd. 2015 China RMB 3 TACLE Guangzhou November, Guangdong, Manufacturing/sales of 66 million Automotive Seat 51.0% Dongfeng NISSAN 2004 China automotive seats RMB 1 Co., Ltd. Hunan TACHI-S July, Hunan, Manufacturing/sales of 40 million GAC Mitsubishi Automotive Seating *(51.0%) 2012 China automotive seats RMB Motors 1 Co., Ltd. TACHI-S Lear DFM July, Hubei, Manufacturing/sales of 30 million Automotive Seating *(51.0%) Dongfeng NISSAN 2013 China automotive seats RMB 1 (Xiangyang) Co., Ltd.
Zhengzhou Taixin July, Henan, Manufacturing/sales of 11 million Chery Automobile, 50.0% Interior Co., Ltd. 2001 China automotive seats RMB Zhengzhou NISSAN 2 Wuhan Dongfeng TACHI-S Adient June, Hubei, Manufacturing/sales of 43 million 50.0% Dongfeng HONDA Automotive Seat 2008 China automotive seats RMB 1 Co., Ltd. Lear DFM TACHI-S August, Liaoning, Manufacturing/sales of 50 million Automotive Seating *(49.0%) Dongfeng NISSAN 2013 China automotive seats RMB 2 (Dalian) Co., Ltd.
Zhengzhou Taizhixin Manufacturing/sales of June, Henan, 90 million Automotive Seating automotive seats and (49.0%) 2019 China RMB 4 Co., Ltd. seat parts
1. Consolidated 2. Consolidated 3. Equity-method non- 4. Unconsolidated 5 Companies 2 Companies 1 Company 1 Company subsidiary:/ affiliate consolidated subsidiary affiliate
61/63 *（including subsidiaries’ equity） TACHI-S Group Companies (China-2)
Equity Company Established Location Business Contents Capital Major Customers Scope of participation consolidation
Zhejiang Gee Ju Tai October, Zhejiang, Manufacturing/sales of 38 million Zhejiang Vision Automotive Interior 40.0% 2010 China automotive seats RMB Auto Parts 4 Co., Ltd.
Lear Dongshi TACHI-S November, Hubei, Manufacturing/sales of 50 million Automotive Seating *(34.0%) Dongfeng NISSAN 2019 China automotive seats RMB 4 (Wuhan) Co., Ltd.
Manufacturing/sales of TACHI-S Trim September, Guangdong, 38 million TACHI-S, automotive seat 100.0% 2005 China RMB TACLE Guangzhou 1 Guangzhou Co., Ltd. trim parts
Manufacturing/sales of Wuhan TACHI-S, TACHI-S Trim Wuhan October, Hubei, 35 million automotive seat *(100.0%) Lear DLT TACHI-S 2013 China RMB 1 Co., Ltd. trim parts (Xiangyang)
Zhejiang Gee Ju Tai, Zhejiang TACHI-S Manufacturing/sales of January, Zhejiang, 142 million TACHI-S, Automotive Parts automotive seat *(82.8%) 2012 China RMB TSE-E, 1 frame parts Co., Ltd. TAS-U.S.A.
TF-METAL January, Guangdong, Manufacturing/sales of 40 million TACLE Guangzhou, *(85.0%) Guangzhou Co., Ltd. 2005 China automotive seat parts RMB TF-METAL 1
TF-METAL Zhejiang December, Zhejiang, Manufacturing/sales of 251 million Zhejiang Gee Ju Tai, *(82.8％) Co., Ltd. 2019 China automotive seat parts RMB TACHI-S 1
Zhejiang Fu Chong Tai Zhejiang TACHI-S, March, Zhejiang, Manufacturing/sales of 109million Automotive Parts *(82.8%) TSE-E, 2011 China automotive seat parts RMB 1 Co., Ltd. TAS-Thailand
*（including subsidiaries’ equity）
1. Consolidated 4. Unconsolidated 6 Companies 2 Companies subsidiary affiliate 62/63 TACHI-S Group Companies (Southeast Asia)
Equity Company Established Location Business Contents Capital Major Customers Scope of participation consolidation
Business administration TACHI-S （Thailand） September, Bangkok, 771 million in Southeast Asia 100.0% 2011 Thailand THB 1 Co., Ltd. and India
TACHI-S Automotive Manufacturing/sales of April, Bangkok, 153 million NISSAN Seating （Thailand） automotive seats and 100.0% 2010 Thailand THB (Thailand) 1 Co., Ltd. seat parts
PT.TACHI-S September, Jawa Barat, Manufacturing/sales of 20,647 million *(100.0%) Indonesia 2011 Indonesia automotive seats IDR 1
TACHI-S January, Ho Chi Minh, 31,026 million Engineering R&D in Vietnam 100.0% 2013 Vietnam VND 2 Vietnam Co., Ltd.
APM TACHI-S Tan Chong November, Da Nang, Manufacturing/sales of 56,567 million Industrial Seating Systems *(51.0%) 2016 Vietnam automotive seats VND Equipment 2 Vietnam Co., Ltd. Vietnam
APM TACHI-S Tan Chong February, Selangor, Manufacturing/sales of 10 million Motor Assemblies, Seating *(49.0%) 2013 Malaysia automotive seats MYR Mitsubishi 4 Systems Sdn. Bhd. (Malaysia)
1. Consolidated 2. Unconsolidated 4. Unconsolidated *（including subsidiaries’ equity） 3 Companies 2 Companies 1 Company subsidiary subsidiary affiliate 63/63