Yutaka Giken Co., Ltd. Business Report FY ended Mar. 2020

Financial Overview

(IFRS, in million JPY)
  FY ended Mar. 31, 2020 FY ended Mar. 31, 2019 Rate of change (%) Factors
Overall
Revenue 163,435 181,264 (9.8) See below
Operating income 4,589 8,599 (46.6)
Income before income taxes 4,546 9,010 (49.5)
Profit for the year attributable to owners of the parent 1,049 4,662 (77.5) -


Factors
<Japan>
-Revenue and profit decreased due to lower product-orders, gaps in product mix, increased depreciation expenses, expenses incurred for reorganizing production operations, and decreased revenue outside Japan caused by the coronavirus pandemic.

<North America>
-Revenue fell because of lower product-orders in the USA; however, due to effective improvements in operating efficiencies, profit increased.

<Asia>
-Both revenue and profit fell. Although the number of product-orders increased in Indonesia, the number of orders decreased in Thailand and India.

<China>
-Both revenue and profit fell. Revenue generated from price changes to the product mix of parts increased, the number of product-orders fell, along with sales because of gaps in the product mix. In addition, profitability declined because of stiff competition, higher expenses, and the spread of the coronavirus pandemic.

<Other>
-Both revenue and profit decreased because of lower product orders, expenses incurred for reorganizing the UK operations and paying severance pay in line with the agreement reached with labor, and the spread of the coronavirus pandemic

 

Business Developments outside Japan

-It was announced that the production plant of UYS, a consolidated subsidiary in the UK, would close. The reason for closing the plant stemmed from the closure by Honda of the U.K. Manufacturing’s finished-vehicle production plant. Honda is the UK plant’s major customer. The Company decided that it would not be feasible to continuing operating the plant with the loss of business from its major customer. As a result, the UYS production plant is scheduled to close sometime in 2021.

 

R&D Expenditure

(in million JPY)
  FY ended Mar. 31, 2020 FY ended Mar. 31, 2019 FY ended Mar. 31, 2018
Japan 2,567 2,509 2,740
North America 154 160 179
Total 2,721 2,669 2,919

 

R&D Structure

-The main R&D functions of the Company are the R&D department at the Tochigi R&D Center and the production department’s technology development office. In addition, Cardington Yutaka Technologies Inc. (Ohio, USA), which is the main R&D function in North America, develops products designed for the North American market.

R&D Activities

<Japan>
Exhaust-train Parts
 The development of even more environmentally friendly technology that improves the performance of exhaust-gas purification, fuel consumption, and quietness. Work on improving productivity along with developing exhaust systems that enhance product competitiveness, in addition to developing production technology.
-Completed the development of catalytic converters and exhaust silencers and launched commercial production of them at the Mie Plant for delivery to the redesigned Honda Fit. 
-Completed the development of catalytic converters and exhaust silencers and launched commercial production of them at YS Tech (Thailand) for delivery to the redesigned Honda City.

Heat Management System Parts
 Development of technology that is environmentally friendly and improves fuel efficiency. Development of production technology.

Drivetrain Parts
 R&D activities to raise the competitiveness of products by making them smaller, lighter in weight, and more fuel efficient; and activities to improve productivity. In addition, R&D activities on production technology.

Motor Parts
 R&D activities on parts and production technology for high-performance motors designed for delivery to next-generation electrified vehicles.
-Completed the development of motor parts for the redesigned Honda Fit e:HEV, and launched production of them at the Toyota Plant.

<North America>
 Among products designed for the North American market, focus on development of products mainly for passenger-car exhaust systems.
-Completed the development of exhaust silencers for the redesigned Honda CR-V and launched production of them at Cardington Yutaka Technologies.

 

Capital Expenditure

(in million JPY)
  FY ended Mar. 31, 2020 FY ended Mar. 31, 2019 FY ended Mar. 31, 2018
Overall 9,521 10,557 7,055

-Capital investments were mainly for facilities and equipment at the automobile parts business to strengthen product competitiveness and respond to new models.

 

Planned Capital Investments

(As of Mar. 31, 2020)
Name of company or subsidiary
(Location)
Type of facility Planned amount of investment
(million JPY)
Start Planned
completion
Head Office
Yutaka Plant
(Shizuoka Pref., Japan)
Manufacturing facilities for automobile parts etc., other facilities 2,290 May 2019 Mar. 2021
Mie Plant
(Mie Pref., Japan)
Manufacturing facilities for automobile parts 631 Sep. 2019 Mar. 2021
Ranzan Plant
(Saitama Pref., Japan)
Manufacturing facilities for automobile parts 173 Oct. 2019 Mar. 2021
Tochigi R&D Center
(Tochigi Pref., Japan)
R&D facilities 111 Apr. 2020 Mar. 2021
Cardington Yutaka Technologies Inc.
(Ohio, USA)
Manufacturing facilities for automobile parts 1,135 Apr. 2020 Mar. 2021