Imasen Electric Industrial Co., Ltd. Business Report FY ended Mar. 2020

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2020 FY ended Mar. 31, 2019 Rate of change (%) Factors
Overall
Sales 112,081 118,579 (5.5) -
Operating income 2,720 3,740 (27.3)
Ordinary income 2,820 3,691 (23.6)
Net income attributable to owners of the parent 553 2,474 (77.6) -
Automotive components related
Sales 108,224 114,489 (5.5) -Sales and income fell due to lower production volumes in North America and China.
Operating income 2,700 3,700 (27.0)

 

Mid-term Business Plan

-The company set a target to achieve an operating profit margin of 6% under “Dream 2020”, the Company’s mid-term management plan.
-In the fiscal year that ended in March 2020, the operating profit margin was 2.4%. Due to the coronavirus pandemic, the forecast for the fiscal year that will end in March 2021 is uncertain. The prediction is that the business landscape will face an even more severe situation going forward.
 
Major initiatives during the first year of Phase 3 (the fiscal year ending in March 2021)

<Technological innovations>

  • Consolidate technology to develop new products in the electronics sector
  • Work to achieve the world’s highest level of quality and develop processing technology

<Rebuilding business operations in Japan>

  • Consolidate production plants and operations in Japan to respond to downsizing operations in Japan

<Optimizing global operations>

  • Revise processing flows to create the optimum methods for delivering products

<Human resources development>

  • Develop human resources with global capabilities, while developing local staff

<Selecting and Consolidating Business Operations>

  • Broaden the use of management resources to expand business operations

 

Optimizing Production Operations

-Imasen Electric Industrial Co., Ltd. (Imasen) will optimize its production system for seat mechanisms in Japan. The company will transfer production of the components from its Nagoya Plant (Inuyama City, Aichi Prefecture) to its Gifu Plant (Yaotsu Town, Gifu Prefecture) by fiscal year 2021 (ending in March 2022). It will consolidate production performed at the two plants at the Gifu Plant to improve efficiency. In line with the production transfer, Imasen will turn the Gifu Plant into a smart factory. Stamping facilities will remain at the Nagoya Plant for the time being even after FY2021 because transferring is difficult. As part of transformation of the Gifu Plant to a smart factory, the company will improve physical distribution at the plant. It will promote automation of the supply of parts, removal of empty boxes, and handling of products. Imasen will also consider introducing container transfer vehicles in addition to automated guided vehicles. By introducing transfer vehicles with high mobility, the company will strengthen its capability to accommodate changes such as increased volume. (From an article in the Nikkan Jidosha Shimbun on March 5, 2020)

-Imasen Electric Industrial will start rebuilding its production line for computerized control systems for automobiles such as electronic control units (ECU). It is responding to the sharp increase in orders. Up to this point, the maker had set up new lines for each product. Imasen will aspire to build a general-purpose line that can produce multiple types of products by reconstructing the line. The maker is currently expanding its development functions in the electronic unit business and aims to prepare for the business expansion by reviewing its production. It will build a central line that will be the production base for electronic control units at the Hiroshima Plant (Higashihiroshima City). It will start by the end of this year and will work on specific numerical targets later. Imasen is aspiring for business expansion, positioning electronic units as its second pillar, following its main product, seat adjusters. (From an article in the Nikkan Jidosha Shimbun on February 28, 2020)

 

R&D Expenditure

(in million JPY)
  FY ended Mar. 31, 2020 FY ended Mar. 31, 2019 FY ended Mar. 31, 2018
Overall 2,020 1,903 1,832
-Automotive components related business 1,973 1,861 1,785

 

R&D Facilities

-Hiroshima Technical Center (Higashi Hiroshima City, Hiroshima Pref. Japan)
-Tochigi Technical Center (Haga-Gun, Tochigi Pref. Japan)
-IMASEN Global Development and Training Center (Inuyama-City, Aichi Pref. Japan)

Imasen Electric Industrial Co., Ltd. will expand the development capability in its electrical component business. With an investment of JPY 400 million, it will build a new development facility in Higashi-Hiroshima City, Hiroshima Prefecture and increase the number of design engineers from the current 65 to 140 by 2025. By doing so, Imasen Electric will establish a system to meet customers’ requests more than ever in an effort to receive more orders. The company will develop the electrical component business as its second main pillar after the seat adjuster business. The new development facility will be established at the “Hiroshima Technical Center,” which runs the electrical component business. (From an article in the Nikkan Jidosha Shimbun on November 25, 2019)
 

R&D Activities

-The Company is promoting following R&D activities;

Automotive components related business

<Seat adjusters>
-Heavy-duty products and products that absorb impacts, in order to enhance vehicle occupants during collisions.
-Small and light weight products made possible by reducing the number of parts and developing new materials and processes to lower fuel consumption
-Development of a safety seat adjuster that is comfortable and which provides added convenience and space enough for occupants to relax.
-The Company is reducing the length of time it takes to develop products, by making use of CAE analysis technology. In addition, it is improving basic seat features such as sliding, reclining, and height, as well as lowering costs.
-Developing a power seat-adjuster that excels in sensory performance such as sounds and vibrations. Developing technology that integrates an electric control unit that controls the seat movement with technology that prevents pinching when the seat is moved.

<Electronic units>
-Developing integrated control units that can control multiple devices.
-Developing various ECU’s for seats, sunroofs, and sunroofs for convertibles.
-Conducting R&D activities on mechatronic products in which mechanisms and electronics, such as functions that control the arrangement of seat positions, are integrated.
-Developing products that pursue driver safety and comfort by monitoring drivers' conditions based on image-processing technology.  
-Developing ECUs that control voltage conversion so as to improve fuel efficiency.
-Developing electronic products for environmentally friendly vehicles such as EVs, HEVs, etc., and conducting research on technology that reduces traffic accidents such as onboard cameras that take the place of human eyes to detect the distance from vehicles ahead and pedestrians, which human eyes often miss, by sending video signals.
-Conducting R&D activities on backup-control systems that can respond when accidents occur and when electric power goes out.

<Lamps>
-Developing all sorts of new automotive lamps such as rear-combination lamps, turn-signals, and cabin-interior lights that use LED elements.
 

Capital Expenditure

(in million JPY)
  FY ending Mar. 31, 2020 FY ending Mar. 31, 2019
Overall 4,234 4,681
-Automotive components 4,186 4,645
Capital expenditure by country (Breakdown of overall)
Japan 2,199 2,797
North America 665 402
Mexico 33 23
China 433 348
Thailand 643 679
Phillippines 184 373
Taiwan 14 27
India 57 29
Indonesia 2 0


-During FY ended March 2020, the Company invested mainly in facilities that produce round reclining adjusters and seat adjusters.

 

Planned Capital Investment (Automotive components related business)

(As of Mar. 31, 2020)
Company name
(Location)
Facilities Planned amount of investment
(in million JPY)
Start Scheduled Completion
Gifu plant
(Kamo, Gifu Pref., Japan)
Production equipment 583 Mar. 2020 Mar. 2021
Hiroshima plant
(Higashi Hiroshima, Hiroshima Pref., Japan)
Buildings and production equipment 378 Mar. 2020 Mar. 2021
Imasen Bucyrus Technology Inc. Ohio plant
(Ohio, USA)
Production equipment 672 Jan. 2020 Dec. 2020
Imasen Manufacturing (Thailand) Co., Ltd.
(Ayutthaya, Thailand)
Production equipment 514 Jan. 2020 Dec. 2020