Toyota Industries Corporation Business Report FY ended Mar. 2017
Financial Overview |
(Japanese GAAP, in millions of JPY) |
FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | Rate of change (%) | Factors | |
Overall | ||||
Sales | 2,250,466 | 2,243,220 | 0.3 | - |
Operating income | 122,969 | 134,712 | (8.7) | - |
Ordinary income | 177,121 | 185,398 | (4.5) | - |
Net income attributable to owners of the parent | 125,534 | 183,036 | (31.4) | - |
Automotive Division | ||||
Sales | 562,672 | 556,505 | 1.1 | 1) |
Operating income | 24,964 | 32,778 | (23.8) | - |
Overall
-Business performance over the past year was lower year-over-year (y/y) due to the effect of negative currency translation because of the high valuation of the yen. However, when currency translation is not factored in, performance ends up being actually higher y/y.
Automotive Division
1) Business results worldwide improved y/y because of greater product volumes sold in developed markets (Europe, North America, and Japan) and especially in China among emerging countries
Chassis Business
-Sales increased 16.2% y/y due to greater content on the Toyota Vitz and RAV4 because unit production of both models increased.
Engine Business
-Sales increased 5.8% y/y because of greater sales of GD-type diesel engines, even though sales of KD-type diesel engines decreased.
Automotive air-conditioner compressor business
-Sales decreased 2.3% y/y due to the effect of negative currency translation, in spite of the fact that unit sales were actually higher worldwide such as in Japan, Europe, China, and North America.
Electronic Equipment, Cast Products, and Others
-Sales were down just barely, by 0.1% y/y, because sales of cast products decreased while sales of electronic equipment increased.
Recent Development in Japan
-Hiroshima University, Showa Denko K.K., the National Institute of Advanced Industrial Science and Technology (AIST), Toyota Industries Corporation, and Taiyo Nippon Sanso Corporation announced that they have jointly developed a new technology to produce high-purity hydrogen for fuel cell vehicles (FCVs) from ammonia. This is the world's first technology of its kind that can be introduced as a practical solution. Ammonia contains three hydrogen atoms per molecule. International regulations require the level of ammonia concentration in FCV hydrogen fuel to be restricted to 0.1 ppm, which had been a major challenge for utilizing ammonia-based hydrogen for FCVs. The joint team was able to develop hydrogen that meets this requirement by developing a ruthenium-based catalyst with a high level of ammonia degradation efficiency and an ammonia remover made from inorganic materials that can triple the removing rate. This development project is carried out as part of the Strategic Innovation Program led by Japan's Cabinet Office. (From an article in the Nikkan Jidosha Shimbun on July 29, 2016)
Contracts
-The Company announced that its new automotive air-conditioner electric compressor and in-vehicle battery charger have been adopted for Toyota Motor Corporation's new Prius PHV. Toyota Industries is aiming to increase its intake of orders by offering its newly developed products for plug-in hybrid, electric, and other electrified vehicles. The new electric compressor is the first mass-market model to have a "gas injection function." The company has reduced vibrations, and improved heating capacity in cold environments by 30%. The electric compressor is integrated in air-conditioners developed by Denso Corporation. The newly developed battery charger is installed under rear seats. Its power output is 1.7 times higher than that of conventional ones. While the battery capacity for the new Prius PHV is twice the capacity for the previous model, recharge time is as short as 2 hours and 20 minutes (with a 200-volt power source) due to improved power output. The battery charger has a built-in ECU, and yet its size is one half of conventional devices. It supports voltages between 100 and 240 volts, and ensures stable charging. (From an article in the Nikkan Jidosha Shimbun on February 17, 2017
Outlook for FY ending Mar. 2018 |
(in millions of JPY) |
FY ending Mar. 31, 2018* (IFRS) (Forecast) |
FY ended Mar. 31, 2017 (Japan Accounting Standards) (Actual Result) |
Rate of change(%) | |
Sales | 1,850,000 | 2,250,446 | - |
-Automotive Division | 580,000 | 1,124,500 | - |
Operating income | 135,000 | 122,969 | - |
Ordinary income | 188,000 | 177,121 | - |
Net income attributable to owners of the parent | 130,000 | 125,534 | - |
*The consolidated estimates for the fiscal year ending in March 2018 were calculated based on the International Financial Reporting Standards
Outlook for FY ending Mar. 2018 of Automotive Products |
(in millions of JPY) |
FY ending Mar. 31, 2018* (IFRS) (Forecast) |
FY ended Mar. 31, 2017 (Japan Accounting Standards) (Actual Result) |
Rate of change(%) | |
Complete vehicles | 72,000 | 557,600 | - |
Engines | 94,000 | 167,300 | - |
Compressors | 347,000 | 334,700 | - |
Foundry parts, Electronic components | 67,000 | 64,700 | - |
* The consolidated estimates for the fiscal year ending in March 2018 were calculated based on the International Financial Reporting Standards
-Sales by segment are amounts sold to external customers
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Initiatives under Vision 2020
Industrial Vehicles
-Expand and enhance the logistics business globally through collaboration among Japan, the USA, and Europe.
Europe:
-Advance initiatives in growing markets through close collaboration with the Forklift Sales Headquarters.
Japan, Oceania, Asia, Others:
-Expand the business by working in close collaboration with Vanderlande Industries Holding B.V.
North America:
-Expand the business by maximizing the synergy effects of Bastian’s system-development capabilities and Vanderlande’s capabilities in creating large-scale, product proposals.
Compressors
-Future vision of mid-term business growth
Achieve top market share in the world (50%) of automotive air-conditioner compressors.
-Create a Full Production Range
Develop products for engine-mounted vehicles, HVs, PHVs, EVs, and FCVs.
-Strengthen Development Capabilities to Create First-in-the-World Products
Development of a new, electric compressor with a gas-injection function, for the redesigned Toyota Prius.
-Strengthen Production Operations outside Japan
While conducting overseas production operations near customers, have Japan supply products when necessary to supplement gaps in production.
*Based on the Company’s own study.
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
Overall | 69,524 | 65,440 | 47,785 |
-Automobiles | 44,757 | 40,588 | 25,955 |
R&D Facilities
-Company announced on June 14 that it will build its first test course in Kameyama City, Mie Prefecture. The new test course is scheduled for completion in March 2018. It will be utilized for development of automotive parts like automotive air-conditioning compressors and electronics parts. The company will invest JPY 4 billion in the acquisition and preparation of a site. The investment amount for buildings and facilities is yet to be determined. The company will use the test course to develop functional parts compatible with diversified vehicles such as electric and fuel-cell vehicles. The new test course has been tentatively named the Kameyama Test Course. It will have an area of about 660,000 square meters, and be equipped with a 1.6 km circuit track that supports cruising at 100 kph and evaluation facilities. After completion, 30 people including persons dispatched from the company's other branch offices will perform development and testing activities at the test course. (From an article in the Nikkan Jidosha Shimbun on June 16, 2016)
Product Development
Automobile
- Diesel engines
- Electric compressors for hybrid vehicles, plug-in hybrid vehicles, and electric vehicles
- Next-generation compressors
- Power-supply equipment, especially for hybrid vehicles
Charging Stands for PHVs and Electric Vehicles
-The Company will start selling plug-in hybrid and electric vehicle charging stands with "child units" that have simple functionality and are half the price of conventional units in October 2016. Installing the charger set with the main unit enables charging of an increased number of vehicles for a lower cost. The company is targeting annual sales of a total of 1,000 parent and child units. Toyota Industries developed the charging stand jointly with Nitto Kogyo Corporation, and launched it in October 2015. About 700 units were shipped, mainly to JTB and commercial facilities, for the six months through March 2016. Due to successful sales, the company will start selling child units. It will start accepting orders in September. Toyota Industries has set a yearly sales target of 300 units for main units, and 700 units for child units. (From an article in the Nikkan Jidosha Shimbun on May 23, 2016)
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
Overall | 176,999 | 154,236 | 179,978 |
-Automobiles | 46,661 | 36,182 | 88,815 |
-The Company announced that it held an opening ceremony for its new diesel engine production subsidiary in India, Toyota Industries Engine India Private Limited (TIEI). The TIEI plant was constructed in Karnataka State, southwest India, with an investment of JPY 15 billion. The plant has an area of about 40,000 square meters, 1,200 employees, and an annual production capacity of 108,000 units. It started production in March 2016. (From an article in the Nikkan Jidosha Shimbun on June 27, 2016)
Breakdown in Capital Expenditures (Automotive Division) |
(in millions of JPY) |
Unit | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 |
The Company | 33,476 | 18,491 | 30,318 |
Toyota Industries Engine India Private Limited (Bangalore, India) |
- | 3,544 | - |
Michigan Automotive Compressor, Inc. |
3,624 | 2,866 | 6,323 |
Toyota Industries Compressor Parts America, Co. |
- | 2,307 | 10,230 |
Tokaiseiki Co., Ltd. (Shizuoka Pref., Japan) |
1,595 | 2,107 | 3,795 |
TD Automotive Compressor Georgia, LLC (Georgia, U.S.) |
- | 1,209 | 2,980 |
TD Automotive Compressor Indonesia (Bekasi, Indonesia) |
1,198 | 1,128 | 7,960 |
Tokyu Co., Ltd. (Aichi Pref., Japan) |
1,085 | - | - |
Planned Capital Investment (Automotive Business) |
(As of Mar. 31, 2017) |
Company/ Plant (Location) |
Equipment to be installed | Planned amount of investment (millions of yen) | Project period | |
From | To | |||
Companies included in consolidated financial statements | ||||
Hekinan Plant (Aichi Pref., Japan) |
Facilities for manufacturing gasoline and diesel engines |
14,028 | May 2016 | Mar. 2018 |
Nagakusa Plant (Aichi Pref., Japan) |
Facilities for manufacturing passenger vehicles |
31,215 | Apr. 2015 | Mar. 2018 |
Kariya Plant (Aichi Pref., Japan) |
Facilities for manufacturing automobile air-conditioner compressors |
6,000 | Apr. 2017 | Mar. 2018 |
Higashichita Plant (Aichi Pref., Japan) |
Facilities for manufacturing casting products used in engines |
10,290 | Apr. 2017 | Mar. 2018 |
Obu Plant (Aichi Pref., Japan) |
Facilities for manufacturing compressor components used in automobile air-conditioners |
3,500 | Apr. 2017 | Mar. 2018 |
Higashiura Plant (Aichi Pref., Japan) |
Facilities for manufacturing compressor components used in automobile air-conditioners |
1,000 | Apr. 2017 | Mar. 2018 |
Anjo Plant (Aichi Pref., Japan) |
Facilities for manufacturing in-vehicle electronic devices |
2,000 | Apr. 2017 | Mar. 2018 |
Kyowa Plant (Aichi Pref., Japan) |
Facilities for manufacturing in-vehicle electronic devices |
500 | Apr. 2017 | Mar. 2018 |
Subsidiaries in Japan | ||||
Tokaiseiki Co., Ltd. (Shizuoka Pref., Japan) |
Facilities for manufacturing automotive components |
1,500 | Apr. 2017 | Mar. 2018 |
Artics Co., Ltd. (Shizuoka Pref., Japan) |
Facilities for manufacturing automotive components |
1,000 | Apr. 2017 | Mar. 2018 |
Subsidiaries outside Japan | ||||
TD Automotive Compressor Indonesia (Bekashi, Indonesia) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 2,900 | Apr. 2017 | Mar. 2018 |
Michigan Automotive Compressor, Inc. (Michigan, USA) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 2,000 | Apr. 2017 | Mar. 2018 |
TD Deutsche Klimakompressor GmbH (Sachsen, Germany) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 1,500 | Apr. 2017 | Mar. 2018 |
Toyota Industry (Kunshan) Co., Ltd. (Jiangsu, China) |
Facilities for manufacturing casting products used in engines Facilities for manufacturing industrial vehicles |
1,200 | Apr. 2017 | Mar. 2018 |
TD Automotive Compressor (Kunshan) Co.,Ltd. (Jiangsu, China) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 1,000 | Apr. 2017 | Mar. 2018 |