Asmo Co., Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in million JPY)
  FY2009 FY2008 Rate of Change
Sales 258,951 261,410 (0.9)


Operating income 1,731 (13,785) - -
Ordinary income 1,737 (15,550) - -
Net income (24,658) (12,937) - -

-Sales improved 1.5% year-on-year to 215,434 million yen, thanks to an increase in parts shipped to production sites outside Japan, despite cutbacks in auto production in Japan and negative currency translation.

-Sales decreased 3.3% year-on-year to 43,238 million yen due to cutbacks in vehicle production and negative currency translation.

<Other regions (Asia and Europe)>
-Sales increased 4.6% year-on-year to 47,245 million yen, thanks to Japanese automakers increasing their production volumes, especially in China and the ASEAN Region.

Business Overview

-In order to speed up developing both new and next-generation products designed for vehicles that are more electrically driven, use fewer resources, and are more fuel efficient, the Company worked more closely with Denso on technical projects. It also further strengthened its development structure engaged in activities surrounding motors that work in combination with electronic components. It also conducted R&D activities on brushless motors. The Company also reinforced its activities that focus on the unique aspects of each market in order to meet the needs arising in emerging markets in which there is a huge potential for future growth. For example, the Company won orders for wire systems that will be installed on compact, low-priced vehicles manufactured in India. The Company completed its plans for producing products that are more localized in terms of specifications, hoping to win more orders in China by offering a wider variation of low-cost products. The Company increased its production capacity and the volume of parts it procures locally in Indonesia and China. It set up a system among its facilities under which they supply each other the products they produce. This is being done as part of the Company's efforts to optimize its global production operations and improve its cost competitiveness in line with the recovery in production in each area.

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)


R&D Expenditure

(in millions JPY)
  FY2009 FY2008 FY2007
Overall 10,308 13,424 13,513

R&D Activities

-The Company began mass-producing new products, namely motors for EVVTs (electric variable valve timings) capable of maintaining their positions; and for long-life ESCs (electronic stability controls).
-The Company began mass-producing motors for seats that are equipped with compact and light mechanisms. Other motors are for seats that are reinforced with crash safety features made possibly by refining N power seat motors.
-The Company is developing future brushless motors designed for new vehicle systems. It is also developing motor technology that focuses on reducing size and weight while adding a high level of efficiency and energy-saving features.
-In addition, the Company is collaborating with external research organizations on R&D projects dealing with basic technology in order to find opportunities for new products and improve quality.

Technological Licensing-in Agreements

(As of Mar. 31, 2010)

Partner Country Product Contractual Coverage
Contract Period
Canon Japan Ultrasonic wave motors -Licensing of patented technologies and receiving of technical information Jan. 1, 1998 - Dec. 31, 2017

Investment Activities

Capital Expenditure

(in millions JPY)
  FY2009 FY2008 FY2007
Overall 6,648 18,785 21,420

-The Company made capital investments to make model changes to products and improve product quality and reliability.
-In FY2010, the fix amount budgeted for capital expenditures (for building new facilities and expanding existing plants) is 7,400 million yen.

Planned Capital Investments

(As of Mar. 31, 2010)

Company name Type of facility Planned total investment
(million JPY)
The Company
(Kosai City, Shizuoka Pref.)
Facility producing small motors 3,924