UNIPRES Corporation 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
Sales 295,692 327,794 (9.8) -Sales fell because of lower operating ratios in Japan, the Americas, Europe, and Asia due to decreased production volumes by OEMs; and because of negative currency translation due to the high valuation of the yen against local currencies. In addition, at the end of the fiscal year, production operations had been suspended because of the global coronavirus pandemic.
Operating income 3,309 20,124 (83.6) -Lower operating ratios and expenses incurred for launching parts for new-vehicle models.
Ordinary income 3,460 20,992 (83.5) -In addition to the above-mentioned factors, lower interest income and increased losses due to negative currency translation.
Profit for the year attributable to owners of the parent (3,977) 12,872 - -In addition to the above-mentioned factors, increased current net profits returned to minority shareholders, which resulted from lower taxes at the Mexican subsidiary stemming from transfer-pricing taxation.

Business Results by Region

Japan
-Sales were JPY 88.2 billion, a 10.5% decrease year-on-year (y/y), which resulted from lower production volumes by customers and production suspensions caused by the spread of the coronavirus pandemic. An operating loss of JPY 8.5 billion was posted, compared to an operating profit of JPY 6.8 billion posted in the previous fiscal year, which resulted from lower production volumes by customers and expenses incurred to launch production of parts for new-vehicle models.

The Americas
-Sales were JPY 88.7 billion, a y/y decrease of 11.2%, due to lower production volumes by customers and production suspensions caused by the spread of the coronavirus pandemic. In addition, the low value of the US dollar and Mexican peso against the Japanese yen impacted business results. On the other hand, operating profit, which was JPY 6.4 billion, increased 54.0% y/y because of revenue that resulted from adjustments to transfer-pricing taxation, even though lower production volumes negatively impacted business results.

Europe
-The Company turned UM Corporation into a subsidiary in June 2019. UM Corporation is a French company producing automotive stamped parts. As a result, this new subsidiary contributed to the overall business results. Customers in the UK reduced their production volumes and the GBP fell sharply against the Japanese yen, which greatly impacted business results. Sales were JPY 35.2 billion, a 4.1% y/y decrease. An operating loss of JPY 900 million was posted for the year. (An operating profit of JPY 1.0 billion was posted in the previous fiscal year.)

Asia
-Production by customer varied from country to country. However, except for a few countries, production as a whole fell in the region. Negative currency translation also affected business results, especially with the Chinese yuan significantly dropping in value against the Japanese yen. Due to all of these factors, sales, which were JPY 83.3 billion (a 9.8% y/y decrease), significantly decreased. Operating profit was JPY 7.0 billion (a 16.9% y/y decrease), which resulted from significant lower production volumes at some production plants.

 

R&D Activities

-R&D expenses in the fiscal year that ended in March 2020 were JPY 6.5 billion yen. The main achievements are provided below.

  • Development of parts made with ultra-high tensile steel of 1.5GPa
  • Development of hot-stamped parts
  • Development of transmission parts in response to the increasing electrification of vehicles.
  • Development of highly functional plastic parts

-As of the end of the fiscal year that ended in March 2020, a total of 706 persons were engaged in conducting R&D activities.

  

Capital Investments

-Capital investments in the fiscal year that ended in March 2020 were JPY 39.0 billion, which were made to upgrade facilities and equipment to produce products for redesigned new-vehicles. Broken down by region: Japan (JPY 15.3 billion), the Americas (JPY 11.5 billion), Europe (JPY 6.4 billion), and Asia (JPY 5.6 billion).

 

Planned Capital Investments

(As of Mar. 31, 2020)
Company Facility (Location) Target of Investment Planned
Investment
Total
(in million yen)
Start End
(Scheduled)
Unipres Headquarters
(Kanagawa Pref., Shizuoka Pref.)
Improve working environment and strengthen crisis management framework 3,400 Apr. 2020 Mar. 2021
Tochigi Plant
(Tochigi Pref.)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 2,800 Apr. 2020 Mar. 2021
Fuji Plant
(Shizuoka Pref.)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,400 Apr. 2020 Mar. 2021
Unipres Kyushu Corporation Headquarter and plant (Fukuoka Pref.) Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 6,800 Apr. 2020 Mar. 2021
Unipres U.S.A., Inc. Headquarter and plant (USA) Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 2,600 Apr. 2020 Mar. 2021
Unipres Southeast U.S.A., Inc. Headquarter and plant (USA) Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,300 Apr. 2020 Mar. 2021
Unipres Mexicana, S.A. de C.V. Headquarter and plant (Mexico) Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,700 Jan. 2020 Dec. 2020
Unipres (UK)Limited Headquarter and plant (UK) Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 5,000 Jan. 2020 Dec. 2020
UM Corporation, SAS Headquarter and plant (France) Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,400 Jan. 2020 Dec. 2020
Unipres Guangzhou Corporation Headquarter and plant (China) Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,600 Jan. 2020 Dec. 2020
Unipres Zhengzhou Corporation Headquarter and plant (China) Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,400 Jan. 2020 Dec. 2020
Unipres Wuhan Corporation Headquarter and plant (China) Establishment of new production facilities 6,300 Jan. 2020 Dec. 2020
Unipres Precision Guangzhou Corporation Headquarter and plant (China) Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 2,100 Jan. 2020 Dec. 2020