Aisan Industry Co., Ltd. Business Report FY ended Mar. 2020
Financial Overview
(in millions of JPY)
| FY ended Mar. 31, 2020 |
FY ended Mar. 31, 2019 |
Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 205,489 | 213,494 | 0.5 | - |
| Operating income | 7,226 | 8,227 | (12.7) | - |
| Ordinary income | 6,866 | 8,181 | (16.3) | - |
| Net income | (5,073) | 6,124 | 35.3 | -Impairment losses at production facilities in Japan and the Czech Republic; and the impact of the coronavirus pandemic |
Outlook for FY ending Mar. 31, 2020
(in millions of JPY)
| FY ended Mar. 31, 2020 (Forecast) |
FY ended Mar. 31, 2019 (Actual) |
Rate of Change (%) |
|
| Overall | |||
| Sales | 212,000 | 213,494 | (0.7) |
| Operating income | 8,300 | 8,227 | 0.9 |
| Ordinary income | 8,100 | 8,181 | (1.0) |
| Net income | 4,900 | 6,124 | (20.0) |
Business Outlook for the Fiscal Year Ending March 2021
-The Company announced that it cannot make any reasonable forecast of its business results for the fiscal year ending in March 2031 because of the coronavirus pandemic.
Mid-term Management Plan
-By fiscal year 2023, the Company plans to achieve sales of JPY 225.0 billion and an operating profit margin of 5.5%
<Major initiatives>
- Enhance the profit structure of major products such as fuel-pump modules, throttle bodies, EGR valves, cannisters, etc.; and work to differentiate its mass-marketed parts.
- Develop and launch sales of low-cost, next-generation core products that raise the efficiency of engines.
- Advance initiatives in new-business fields, such as expand business in the hybrid-vehicle field and develop power/motorized systems for small-sized mobility vehicles.
R&D Expenditure
(in millions of JPY)
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | |
| Overall | 10,845 | 11,302 | 11,196 |
| -Japan | 10,136 | 10,597 | 10,554 |
| -Asia | 708 | 705 | 642 |
Capital Expenditure
(in millions of JPY)
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | |
| Overall | 19,323 | 16,523 | 12,022 |
-JPY 8,440 million in Japan and JPY 10,833 million outside Japan.
-The Company invested to strengthen its systems-development capabilities and develop products for next-generation vehicles, spending JPY 456 million to align systems and to enhance testing and R&D functions.
Investment outside Japan
<India>
-On November 8, Aisan Industry Co., Ltd. (Aisan Industry) announced that it has held a ceremony to celebrate the opening of a new plant in India. Aisan Fiem Automotives India Private Limited (Rajasthan, India), a joint venture among Aisan Industry, a local motorcycle parts supplier, and an Indian subsidiary of Toyota Tsusho Corporation, will manufacture products such as fuel-injection devices for motorcycles there. Tokuhisa Nomura, President of Aisan Industry said, “The performance and quality of the Aisan Industry Group’s fuel injection products are the best in the world and can greatly contribute to environmental improvements in India. Aiming for an environment where people can live worry-free, we will strive to develop new products.” (From an article in the Nikkan Jidosha Shimbun on November 9, 2019)
Capital Investment by Product
(in millions of JPY)
| Product | Fuel-pump modules | Throttle bodies | Canisters | Engine values | EGR valves | Total |
| Amount | 6,407 | 2,028 | 778 | 200 | 2,148 | 11,561 |
Capital Investment by Region
(in millions of JPY)
| Region | Japan | Asia | Americas | Europe | Total |
| Amount | 2,633 | 6,449 | 1,308 | 1,171 | 11,561 |
Planned Capital Investment
| Plant name (Location) |
Type of facility or project | Planned amount of investment (in millions of JPY) |
Project period | |
| From | To | |||
| Home office plant (Obushi, Aichi Prefecture) | Construction of phase II of home-office facility | 638 | Apr. 2020 | Mar. 2021 |
| Facility to assemble purge pumps | 284 | Sep. 2019 | Aug. 2020 | |
| Facility to manufacture products for fuel-cell vehicles | 149 | Jan. 2019 | Oct. 2020 | |
| Anjo Plant (Anjo, Aichi Prefecture) | Construction of new plant | 500 | Jun. 2020 | Mar. 2021 |
| Facility to assemble throttle bodies | 178 | Aug. 2019 | Apr. 2020 | |
| Toyota Plant (Toyota, Aichi Prefecture) | Facility to assemble check valves | 136 | Dec. 2019 | May 2020 |
| Aisan Auto Partes Mexico, S.A. de C.V. | Facility to manufacture EGR valves | 1,029 | Oct. 2018 | Apr. 2020 |
| Aisan (Tianjin) Auto Parts Co., Ltd. | Facility to manufacture EGR valves | 490 | Dec. 2018 | Jul. 2020 |
| Aisan (Foshan) Auto Parts Co., Ltd. | Facility to manufacture EGR valves | 534 | Jan. 2019 | Jun. 2020 |
| P.T. Aisan Nasmoco Industri | Facility to manufacture pump modules | 486 | Jul. 2019 | Dec. 2020 |