IR Business Briefing Magnet Wire Business · FY2015-FY2017 actual FY2018-FY2020 plan Capital...

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

IR Business BriefingMagnet wire business

Shuichi TanakaMagnet wire Division Manager

June 8, 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


1. What is magnet wire

2. Introduction of the Magnet Division manufacturing bases

3. Key products, applications and customer segments

4. Trends in the focal product markets

5. Growth strategy

6. Investment plan

7. Forecasts for the focal products in FY2020

8. Market that should be proactively targeted

Contents of today’s explanation

3

All Rights Reserved, Copyright © FURUKAWA ELECTRIC CO., LTD. 2018 4

What is winding wire (British English) / magnet wire (American English)

As a component

As a product

Coil, antennaTransformer Motor / generator

・As an inductor・Electrical signal⇔Electromagnetic signal ・High voltage⇔Low voltage ・Electrical energy⇔Mechanical energy


Introducing the Magnet Wire Division –manufacturing bases

5

●

●●

FMGT

FEC：100％

FMGW：21％

FEC：49％FMGW：100％

●

●

Jung Shing Wire Co., LTD.（Tainan, Taiwan;

Dongguan, Suzhou, China）

Furukawa Magnet Wire Co., LTD.（Mie, Niigata, Japan）

FE Magnet Wire Malaysia SDN.BHD.（Kelang, Malaysia）

Essex Furukawa Magnet Wire Europe GmbH（Bad Arolsen, Germany）

FEC：100％

●

●

●

Taiwan Furukawa Magnet Wire Co., LTD.（ Taoyuan, Taiwan）


Busin

ess

Key products ApplicationsMajor customer

segments

Main regions

Enam

ele

d w

ire

・Enameled wire ・Motors, In-vehicle motors・Transformers, Inductors・In-vehicle relays, etc.

・Industrial machinery manufacturers・Household appliance manufacturers・Electronic component manufacturers

JapanAsia

・Rectangular enameled wire / HVWW®

・Alternators・Motor generators

・Automakers・Electric componentmanufacturers

Japan

・Ribbon wire ・Inductors for smartphones and tablets・In-vehicle inductors

・Electronic component manufacturers

JapanAsia

Enam

ele

d w

ire

deriv

ativ

es

・TEX (Triple insulated wire)・SUS wire

・PIT (Polyimide tubing)

・Various power transformers・Braided tubing for emission gas・Mesh for screen printing・Insulation sleeves, Catheters for medical use

・Electronic component manufacturers・Automotive product manufacturers

JapanAsia

Key products, applications and customer segments

6


Expand the business in accordance with the trends in the xEV and electronic components markets. A big wave is coming!

0

500

1,000

1,500

2,000

2,500

Smartphones – Actual and forecasted production

by region (million units)

Japan China

Asia North America

Central and South America Europe

Other

(Referenced materials from Fuji Chimera Research Institute)

Trends in the focal product markets

Changes in the vehicle electrification market(worldwide) (1,000 vehicles)

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 Forecasted figures

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

（Note）Figures from 2017 were forecast by the Mizuho Bank Industry Research Department

HVWW®Rectangular enameled wire

Ribbon wire


Growth strategy of the

Magnet Wire Division

Structural reforms, product mix → Focus on profit, and move towards a growth strategy based on high value-added products

Shift to high value-added products that only Furukawa can supply

Shift from round to flat

Large items: HVWW®

rectangular enameled wire

Small items: Ribbon wire

Growth strategy

Large itemsRound

enameled

Small itemsRound

enameled

HVWW®

BEV/PHEV/HEV vehicles

xEV

MG / Reactor

5G

Chip inductor

High voltage resistant rectangular wire

HV rectangular wire(HVW)Enameled wire

Specialized magnet wireRibbon wireEnameled wire

Rib

bon

wire

En

am

ele

d

Recta

ng

ula

rw

ire


Investment plan

Total capital investments over the next 3 years are planned to be 30% higher than last 3 years.Actively utilize the overseas bases in order to respond to the future market shift to EV.

Major investments and venture capital financing for 2020 mid-term

9

FY2015-FY2017 actual FY2018-FY2020 plan

Capital investments in Japan

FMGW Mie Plant

FMGW Shirane Plant

Increase production of HVWW®

Increase production of enameled rectangular wire

for automobilesIncrease production of

ribbon wire

Increase production of HVWW®

Overseas capital investments

FMGT Taiwan

FEMM Malaysia

Increase production of ribbon wire

Increase production of enameled rectangular wire

for automobiles

Venture capital financing

Overseas JV(Germany）HVWW® production

network（EFMWE）


HVWW® and ribbon wire will steadily grow and contribute to profits along with the expanding market!

Forecasts for the focal products in 2020

HVWW® volume Ribbon wire volume

0

100

200

300

400

500

600

2015

実績

2016

実績

2017

実績

2018

計画

2020

計画HVWW (Second generation, 2016

results=100)

0

50

100

150

200

2015

実績

2016

実績

2017

実績

2018

計画

2020

計画

Ribbon wire (2016 results=100)

Second generation HVWW® Ribbon wire

2015 actual

2016 actual

2017 actual

2018 plan

2020 plan

2015 actual

HVWW (Second generation, 2016 results=100)

2016 actual

2017 actual

2018plan

2020 plan


高性能モータはHVWＷ®＋厚皮膜平角線。当社は高電圧市場を中心に狙っていく。

Market that should be proactively targeted(Vehicle electrification market)

Motor characteristics and market size in 2025

Low End

High End

Volume: vehicles/year: Extracted from 2016 data from Sogo Planning

Normal coating (round wire)

Enameled rectangular wire & Thick coated rectangular wire

HVWW®

Middle End

Magnet

wire

use

d

Strategically targeted domains863,000 vehicles

6,038,000 vehicles

1,725,000 vehicles

The Magnet Wire Division will grow by “riding the xEV wave and wave to 5G”!

Mot

or o

utpu

t (kW

)

Motor voltage (V)


Thank you!

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IR Business Briefing Magnet Wire Business · FY2015-FY2017 actual FY2018-FY2020 plan Capital...

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