IR Business Briefing Automotive products business...2018/06/22 · Vehicle electrification market...

IR Business BriefingAutomotive products business

Shigenobu AbeAutomotive products Division Manager

June 8, 2018

All Rights Reserved, Copyright © FURUKAWA ELECTRIC CO., LTD. 2018

Forward-Looking StatementsProjections of future sales and earnings in these materials are “forward-looking statements.”Management offers these projections in good faith and on the basis of information presently available. Information in these statements reflects assumptions about such variables as economic trends and currency exchange rates. Forward-looking statements incorporate known and unknown risks as well as other uncertainties that include, but are not limited to, the following items.

• Economic trends in the U.S., Europe, Japan and elsewhere in Asia, particularly with regard to consumer spending and corporate expenditures.

• Changes in exchange rates of the U.S. dollar, euro, and Asian currencies. • The Furukawa Electric Group’s ability to respond to rapid advances in technology. • Changes in assumptions involving financial and managerial maters and the operating environment. • Current and future trade restrictions and related matters in foreign countries. • Changes in the market value of securities held by the Furukawa Electric Group.

Due to the above factors, actual sales, earnings, and other operating results may differ significantly from Looking Statements in these materials. In addition, following the release of these materials, Furukawa Electric Group assumes no obligation to announce any revisions to forward-looking statement in these materials

CopyrightsFurukawa Electric Co.Ltd. retains copyrights and other rights involving these materials. Copyright and otherwise reusing these materials in any way without prior consent is prohibited.

Furukawa Electric Co., Ltd

2


Ⅰ. Main products and applications

Ⅱ. Market trends

Ⅲ. Growth strategy

(1) Business policy and targets

(2) Strengthen the introduction of products to growth domains

(3) Strengthen overseas sales

Ⅳ. Sales and operating income forecast

Ⅴ. Focal products

Ⅵ. Technology development in new domains

Contents of today’s explanation

3



Ⅱ. Market trends






Ⅴ. Focal products



4


Main products

Aluminum electrical wire/ connector technology

Battery state detection sensor

Junction boxPerimeter surveillance

radar

SRC

Metal core substrate

In-vehicle Connectors

MCPET®

(microcellular foamed reflector)HV rectangular wire (HVW)

As of 2017, the new connector technology (α terminal) has

been adopted by 3 companies (10 vehicle models)

No. 1 share in the global

market

5


Product applications and customer segments

Key products Applications Main customers・Overseassales ratio

・Main markets

Wire

harn

ess

Wire harnesses (including aluminum)

Promote “Green cars” by making vehicles lighter (aluminum)

Japanese automakers

・30％・ Japan

Anti-corrosion terminalsWater-resistant terminals for aluminum harnesses

Japanese automakers

Veh

icle

com

pon

en

ts

SRC(Steering Roll Connector) Connectors for airbags

Global automakers, including Tier 1 companies

・75％・Whole globalmarket

BSS(Battery state detection sensor)

Vehicle power management

Japanese automakers

・75％・Japan, China and North America

RadarAdvanced driver assistance system (ADAS)

Japanese automakers ・Japan

Batte

ries

Lead storage batteries for idling stop systemsEN standard lead storage batteriesAuxiliary batteries for hybrid vehicles

Automakers (new vehicles)Car dealers (commercial sales)

・Japan, ASEAN

6



Ⅱ. Market trends






Ⅴ. Focal products



7


0

20,000

40,000

60,000

80,000

100,000

120,000

2017 2018 2020 2025

その他

中国系

欧州系

北米系

日系

Global production volume

Japanese automaker production volume

Global production forecast (by manufacturer)

Source: Calculated by Furukawa Electric based on IHS market data

1,000 vehicles/

year

●Global production is expected to increase about 20% by 2025

●Japanese automakers’ production is expected to increase about 10%

8

Other

Chinese automakers

European automakers

North American automakers

Japanese automakers


Vehicle electrification market forecast

(EV, HEV, PHEV)

Source: Mizuho Bank (created by the Mizuho Bank Industry Research Department based on materials from JATO JAPAN and various countries’ automotive industry associations)

*Forecasts from 2017 were forecast by the Mizuho Bank Industry Research Department

0

5,000

10,000

15,000

20,000

25,000

30,000

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

HEV

PHEV

EV

About 10% of total vehicle production

●Going forward, the vehicle electrification market will rapidly grow, and electric vehicles are expected to account for about 10% of total vehicle production in 2025

9



Ⅱ. Market trends






Ⅴ. Focal products



10


Overall business policy and targets

●Introduce products to the growth domains, and strengthen components in particular

Target: Operating income composition ratio of components is 50% in FY2025 (Stabilize profits)

●Strengthen overseas sales

Target: Operating income composition ratio is 50% for Japan/ overseas in FY2025

(Organization that can withstand currency fluctuations)

Target operating income compositionratio of Japan and overseas

Target operating income compositionratio of wire harnesses and components

FY2017 actual: Components - 36% FY2017 actual: Overseas - 32%

11

0% 20% 40% 60% 80% 100%

FY2025

FY2020

FY2018

FY2017

Overseas Japan

0% 20% 40% 60% 80% 100%

FY2025

FY2020

FY2018

FY2017

Components W/H



Ⅱ. Market trends






Ⅴ. Focal products



12


Strengthen the introduction of products to growth domains (1)

13

Improved fuel

efficiency

Self driving system

Connected, high speed

communications

Vehicle electrification

Power management

Thermal management

Contribute to safety Lightweight

Equipment utilizing thermal devices

Products utilizing FFC

Battery state detection sensor

High voltage harnesses

Aluminum harnesses

Equipment utilizing GaN devices

SRCRadar

In-vehicle high speed communications

High luminance lighting

Based on the keyword of “contributing to the environment, convenience and safety”, introduce products in line with the flow of the major changes in the automotive market


Strengthen the introduction of products to growth

domains (2) 【Aluminum harnesses】

Wire harnesses

αterminal

Increase sales of aluminum harnesses

Strengthen the production networkExpand and increase the capacity ofproduction sites in Asia

(Philippines and Vietnam)

Start sales of automatic cutting and crimping machines

(targeting connector and harness manufacturers)

Expand the lineup of terminals（2015: 8 products→2018: 25 products →from 2021: 42 products

Increase productivity by automating manufacturing

Full-scale rollout to

global vehicle models

Rollout α terminals for copper electrical wire

Expand to motorcycle and auxiliary equipment manufacturers

Measures to prevent water from reaching the terminal

2017 2018 2019 2020 2021 2022 2023 2025

Increase sales of aluminum harnesses that respond to requests for lightweight products, and aim to improve profitability by promoting automation in manufacturing

2-3% 5-15% 30-40%Ratio of aluminum （number of circuits）

14


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

現状(24,000㎡) 増産後(50,000㎡)

People

Example of labor saving through the promotion of automation in manufacturing

（Expansion of the wire harness factory in the Philippines)

Strengthen the introduction of products to growth

domains (2) 【Aluminum harnesses】

About 1,500 people

Labor saving

Current manufacturing

method

Introduce automation

15

Current situation(24,000m2)

After the expansion(50,000m2)


Strengthen the introduction of products to growth domains (3) 【High speed in-vehicle communications】

Utilize vehicle big dataExpand infotainment Cloud

server

Communicate vehicle-to-road

distance

Communicate vehicle-to-vehicle

distance

5G/mobile communication

Initiatives for next generation communications that support connected cars and self driving systems

Development aimed atoptical fiber

communications in the future

Significantly increase the volume of in-vehicle information by

integrating the sensors

Future wiring system

2018 2020 2021 2025

16

④Area ECU③Area BOX + Area Controller

②Base & addition W/H①Infrastructure W/H

Increasing the speed and volume of in-vehicle communications is an urgent need

Introduce high speed communication using metal electrical wire



Ⅱ. Market trends






Ⅴ. Focal products



17


Production bases in

Asia

Production base in Mexico

Automakers’ bases in North

America

Strengthen overseas sales (1)【Optimize production of harnesses for North America】

Investmentplan for the Philippines

baseAcquire land, expand the factory building, install manufacturing equipment

2018-2020: About JPY 5 billion

Successively add manufacturing equipment in accordance with the status of orders

2021-2025: About JPY 5 billion

Plan to invest around JPY 10 billion through 2025

(Including aluminum related investments in Vietnam)

Production network based on centralized production in Mexico

↓Through a dual-region production

network following the addition of Asia, contribute to customers by improving

cost and BCP

Respond to increased orders for global vehicle models, and expand the production bases of wire harnesses for North American vehicles

18


Example: Cooperation when receiving an SRC order for a European customer

Europe (sales) – North America (design) – China (manufacturing and sales)

Strengthen overseas sales (2)【Strengthen global cooperation: Sales, design and development】

ＧＣ

Manufacturing bases

Overseas regional headquarters (sales and design)

AFI – Oversee North and South

America (US)FASC –Oversee China

(China)

Overseas sales office

FACE –Europe Sales

Office (Germany)

FASB – South America Sales Office (Brazil)

Southeast Asia region – 8 companies,

10 factories

China region –6 companies, 6 factories

North and South America region

– 4 companies, 4 factories

Expand the business for European and American customers by strengthening global cooperation between the overseas regional headquarters (China, US, Thailand)

19

FAAP -Oversee

Southeast Asia

(Thailand)


South America market

Europe market

China market

India market・Development /

purchasing control

・Rollout of advanced technology

Strengthen overseas sales (3)【Strengthen global cooperation: Sales, design and development】

Example of the response for European automakers

20

Contribute to expanding the commercial areas in growing markets outside of Europe by strengthening the sales and design development capabilities in Europe

North America market

http://www.google.com/url?sa=i&rct=j&q=fiat+%E3%83%AD%E3%82%B4&source=images&cd=&cad=rja&docid=sCjVou_OJDGvdM&tbnid=3tLZGmNvY_8GWM:&ved=0CAUQjRw&url=http://noeliam.seesaa.net/category/1404746-1.html&ei=AupLUeDYJcqYlQWZj4HABA&bvm=bv.44158598,d.dGI&psig=AFQjCNG2CPrM1FSnnkSB8Ez2ZNSs-WQTRQ&ust=1364015974947640

http://www.google.com/url?sa=i&rct=j&q=fiat+%E3%83%AD%E3%82%B4&source=images&cd=&cad=rja&docid=sCjVou_OJDGvdM&tbnid=3tLZGmNvY_8GWM:&ved=0CAUQjRw&url=http://noeliam.seesaa.net/category/1404746-1.html&ei=AupLUeDYJcqYlQWZj4HABA&bvm=bv.44158598,d.dGI&psig=AFQjCNG2CPrM1FSnnkSB8Ez2ZNSs-WQTRQ&ust=1364015974947640

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=XZm0grHpq8DyMM&tbnid=8LVsqnAKP9vSzM:&ved=0CAUQjRw&url=http://mokuromi.com/ad/1058&ei=f2-dUp_FF8uqlAW75IG4Cg&psig=AFQjCNHAGu5uBqq7u9_nqZO69cw3Y7VfRg&ust=1386135746412758

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=XZm0grHpq8DyMM&tbnid=8LVsqnAKP9vSzM:&ved=0CAUQjRw&url=http://mokuromi.com/ad/1058&ei=f2-dUp_FF8uqlAW75IG4Cg&psig=AFQjCNHAGu5uBqq7u9_nqZO69cw3Y7VfRg&ust=1386135746412758

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=XsFrYc5uJlPcnM&tbnid=aRLHBN0pFO1m0M:&ved=0CAUQjRw&url=http://www.hpair.org/conf/aconf2010/platinum.php&ei=CcWeUqz6L4qskgWKwIHwAw&bvm=bv.57155469,d.cGE&psig=AFQjCNHghM-CWwd5YHDDpog2cvTmseYQQQ&ust=1386223183591512

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=XsFrYc5uJlPcnM&tbnid=aRLHBN0pFO1m0M:&ved=0CAUQjRw&url=http://www.hpair.org/conf/aconf2010/platinum.php&ei=CcWeUqz6L4qskgWKwIHwAw&bvm=bv.57155469,d.cGE&psig=AFQjCNHghM-CWwd5YHDDpog2cvTmseYQQQ&ust=1386223183591512

http://www.google.com/url?sa=i&rct=j&q=psa+%E3%83%AD%E3%82%B4&source=images&cd=&cad=rja&docid=GCG6drhBB6EctM&tbnid=3iGGF9EJna0VkM:&ved=0CAUQjRw&url=http://www.psanalytical.com/&ei=TP5LUZDQJo7RlAWF_oCQDw&bvm=bv.44158598,d.dGI&psig=AFQjCNF0kZiNStmg5sZcJMe3dW9GvL_nLA&ust=1364021144184816

http://www.google.com/url?sa=i&rct=j&q=psa+%E3%83%AD%E3%82%B4&source=images&cd=&cad=rja&docid=GCG6drhBB6EctM&tbnid=3iGGF9EJna0VkM:&ved=0CAUQjRw&url=http://www.psanalytical.com/&ei=TP5LUZDQJo7RlAWF_oCQDw&bvm=bv.44158598,d.dGI&psig=AFQjCNF0kZiNStmg5sZcJMe3dW9GvL_nLA&ust=1364021144184816

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=B44ZV4am6rVzyM&tbnid=Fn1ShR6DcpAp6M:&ved=0CAUQjRw&url=http://ameblo.jp/best-planning/entry-11231176960.html&ei=x1qdUoe_C4zhlAWuiIHoDg&bvm=bv.57155469,d.dGI&psig=AFQjCNH4Xq-_PIqReMH7oH-GfJmXBx5Kag&ust=1386130349959206

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=B44ZV4am6rVzyM&tbnid=Fn1ShR6DcpAp6M:&ved=0CAUQjRw&url=http://ameblo.jp/best-planning/entry-11231176960.html&ei=x1qdUoe_C4zhlAWuiIHoDg&bvm=bv.57155469,d.dGI&psig=AFQjCNH4Xq-_PIqReMH7oH-GfJmXBx5Kag&ust=1386130349959206

http://www.google.com/url?sa=i&rct=j&q=VW+%E3%83%AD%E3%82%B4&source=images&cd=&cad=rja&docid=FWutFbI9_L73_M&tbnid=K7jt3oYdIMdhvM:&ved=0CAUQjRw&url=http://www.zukanda.jp/image/6407&ei=IvpLUZ3jNY3ylAWhnICwDw&bvm=bv.44158598,d.dGI&psig=AFQjCNFxmyxJFo2ZU-WN0EjHrduZ28Mrtg&ust=1364020124043706

http://www.google.com/url?sa=i&rct=j&q=VW+%E3%83%AD%E3%82%B4&source=images&cd=&cad=rja&docid=FWutFbI9_L73_M&tbnid=K7jt3oYdIMdhvM:&ved=0CAUQjRw&url=http://www.zukanda.jp/image/6407&ei=IvpLUZ3jNY3ylAWhnICwDw&bvm=bv.44158598,d.dGI&psig=AFQjCNFxmyxJFo2ZU-WN0EjHrduZ28Mrtg&ust=1364020124043706



Ⅱ. Market trends






Ⅴ. Focal products



21


248.1 250.0260.0

13.212 13.0

0

100

200

300

400

0

500

1,000

1,500

2,000

2,500

3,000

FY2017

Actual

FY2018 FY2020 FY2025

Sales Operating income

JPY billion

Expect sales and operating income to increase from FY2021 through the receipt of more orders overseas and strengthening the introduction of products to growth domains

22

During FY2018 – FY2020,

invest for the future

Effects of the investment in harnesses, as well as next

generation battery state detection sensor, radar, etc., will contribute

Sales and operating income forecast 【Automotive Products & Batteries segment】



Ⅱ. Market trends






Ⅴ. Focal products



23


Focal products (1) Radar

100 95 104

589

0

100

200

300

400

500

600

700

2017 2018 2020 2025

Production targets（Assuming production in 2017 is 100)

Front side detection

(Pulse method)

Front side detection

(Pulse method)

Rear side detection

(Pulse method)

Rear side detection

(Pulse method)

Currently under development

Currently in mass production

●Realize high resolution in the short to mid-range, wide-angle region

●Use the pulse method to detect extremely nearby objects, which have been difficult to detect using the traditional method

●Improve the ability to mount on the vehicle regardless of the bumper shape

24


Focal products (2) High voltage harnesses

●Use SP tubes, a unique technology with excellent scratch resistance, anti-corrosion and shield performance

●Expand the lineup of SP tube diameters

●Using new materials that include aluminum, expand the new electrical wire and components that realize lighter weight, flexibility and smaller size

0

100

480

793

0

100

200

300

400

500

600

700

800

900

2017 2018 2020 2025

Production targets（Assuming production in 2018 is 100)

25

■SP tube: Three layer construction of “plastic – aluminum – plastic”

Outer plastic layer

Aluminum layer

Inner plastic layer



Ⅱ. Market trends






Ⅴ. Focal products



26


Technology development in new domains (1)

・Along with high performance lighting using the good reflective characteristics of MCPET®, proposal as a new HMI with added speaker function (targeting market launch in 2020)

・Expand sales of SDH (Slide Door Harness) in overseas markets

・New products utilizing FFC

(SDH: Plan to launch in the China market in 2019, New products utilizing FFC: Targeting market launch in 2022)

*HMI;Human Machine Interface

Products utilizing FFC (Flexible Flat Cable)

Vehicle lighting

Collaboration with FASC

Collaboration with the Functional Plastic Products Department and FETI

27

Based on products that utilize the core technologies of the Furukawa Electric Group, cultivate markets through the OneF® activities

Utilize the core technologies of the Furukawa Electric Group

・Fuse-less JB equipped with a high current semiconductor switch

・Power components with consideration for a shift to 48V systems (Plan to launch onto the market in 2020)

Collaboration with the Research and

Development Division

Power management systems




・In collaboration with GaN module manufacturer Transphorm, targeting market launch of small, high efficiency power electronics products that secure in-vehicle quality (Targeting market launch in 2022)

・Electric field method: Original method that is being considered for AGV・Inductive method (industry standard): Currently creating and evaluating in-vehicle coil prototypes


Power electronics utilizing GaN

Wireless recharging

Collaboration with the Research and Development Division and Transphorm

Collaboration with the Research and Development Division, Totoku, KANZACC and FMGW

28



Solve the thermal issues

concerning electric vehicles Components for storing and reusing waste heat

from the engine and motor

Solve the thermal issues

involved in autonomous

driving

Components for cooling and controlling the temperature of

lithium ion battery cellsComponents for cooling SiC inverters

Components for cooling the ECU used for autonomous

driving

2017 2018 2019 2020 2021 2022 2023 2024 2025

Heat sinkHeat pipe Vapor chamber

Products utilizing thermal devices

29

Thermal management




Thank you!

IR Business Briefing Automotive products business...2018/06/22 · Vehicle electrification market...

Documents

Transcript of IR Business Briefing Automotive products business...2018/06/22 · Vehicle electrification market...