Mikuni 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 (%)	Factor
Overall
Sales	110,499	121,803	(9.3)	-The global economy in Japan and around the world slowed due to the spread of the coronavirus pandemic. In addition, the Company experienced an overall downturn in sales at the non-automotive business segment.
Operating income	2,410	4,403	(45.3)	-Demand for automobile products fell mainly in China and India.
Ordinary income	1,858	4,381	(57.6)	-
Profit for the year attributable to owners of the parent	(4,014)	2,262	-	-Posted a loss due to losses on the sale of fixed assets.

Outlook for the fiscal year ending in March 2021

-The Company has not released a forecast for the fiscal year ending in March 2021, due to uncertainties caused by the coronavirus pandemic.

R&D Activities

-In the fiscal year that ended in March 2020, the Company spent JPY 5,935 million on R&D expenses, among which JPY 5,562 million was spent on the automotive segment. In the automotive segment, R&D activities mainly included work to develop electronically controlled fuel-injection systems and engine components. These will become the foundations for developing technologies on control, actuators, sensing, and materials. In addition, work was done to develop intake modules, plastic intake manifolds, thermal management systems, electric-powered exhaust control valves, electric-powered vacuum pumps, and electric-powered oil pumps in meeting the needs for better fuel efficiency and electrification. In addition, the Company is developing technology to reduce CO₂

Capital Expenditure

-The Company spent JPY 7,364 million on capital investments in the fiscal year that ended in March 2020. Of that amount, it spent JPY 6,862 million at the automotive business to develop new products, produce new products, and streamline operations.

Planned Capital Investments (Automotive segment)

(As of Mar. 31, 2020)

Company/Plant	Location	Estimated amount of investment (in millions of JPY)	From	To
Kikugawa Plant	Shizuoka Pref., Japan	456	Apr. 2020	Mar. 2021
Odawara Plant	Kanagawa Pref., Japan	415	Apr. 2020	Mar. 2021
Morioka Plant	Iwate Pref., Japan	449	Apr. 2020	Mar. 2021
Mikuni (Shanghai) Co., Ltd.	Shanghai, China	677	Jan. 2020	Dec. 2020
Mikuni India Private Limited	Rajasthan,India	611	Apr. 2020	Mar. 2021
Mikuni（Thailand）Co.,Ltd.	Ayutthaya, Thailand	448	Jan. 2020	Dec. 2020
PT. Mikuni Indonesia	Bekasi, Indonesia	447	Jan. 2020	Dec. 2020