EXEDY Corporation Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
Mar. 2011)
FY2009 Rate of Change(%) Factors
Sales 196,451 152,671 28.7
Operating income 21,395 10,851 97.2
Ordinary income 20,833 10,613 96.3
Current net income 13,024 5,524 135.8
MT business (Manual transmission business)
Sales 57,348 45,733 25.4
Sales and profit at the MT business increased supported by growth in sales in China and other Asian countries
Operating income 9,433 5,896 60.0
AT business (Automatic transmission business)
Sales 120,756 95,650 26.2
Sales and profit at the AT business rose thanks to increased demand from automakers and transmission suppliers
Operating income 10,181 5,216 95.2


Dynax Corporation based in Chitose, Hokkaido, which is a subsidiary of Exedy Corporation, was awarded the clutch business by Mitsubishi Fuso Truck & Bus for its dual clutch transmission (DCT), and began deliveries for the new Canter truck. This is the first supply of DCT clutches by the Excedy Group. High durability of the product to withstand heavy loading requirements of a truck has resulted in winning the new business. A dry-type clutch in the DCT system is being developed by Exedy and a wet-type by Dynax. The Canter has adopted a wet-type by Dynax with durability heightened by using three clutch plates. (From an article in the Nikkan Jidosha Shimbun on November 12, 2010)

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


R&D Expenditures

(in millions of JPY)
   FY2010 FY2009 FY2008
Overall  4,596 4,370 4,946
MT business  1,098 1,119 1,153
AT business 2,052 2,047 2,036
 598 -

R&D Structure

-The Company employs 378 engineers, which account for approximately 4 percent of its overall workforce (as of FY2010).

R&D Activities

MT business
-For passenger vehicles, the Company developed clutches with high performance dampers capable of absorbing the vibration produced by environmentally friendly, lean-burn engines and direct injection diesel engines. It also engineered dual mass flywheels.

-Development achievements of commercial vehicle parts included manual transmission clutches as well as the computer units, actuator units and motor drivers of automated manual transmissions, which are manual transmission with automatic startup and gear changing functions.

AT business
-For the purpose of developing high performance torque converters, the Company carries out studies on inner oil flow by using cutting-edge computer systems. The focus of the development activities is on designing torque converters with excellent transmission efficiency and a high level of flexibility in terms of installing them in tight spaces. The Company developed advanced torque converters based on this research, already winning some contracts to supply these products.

-Dynax, which is a consolidated subsidiary of the Company, is developing friction materials for lock-up clutches and other components for automatic transmissions. It is working on wet type friction materials using non-woven fabrics. In the area of commercial vehicle products, the company is engineering products for dual clutch transmissions. It is already mass producing wet type dual clutches, first for commercial vehicles.

The Company has decided to develop a new clutch mechanism, a key component of the next generation automatic transmission "DCT (Dual Clutch Transmission)." The supplier will focus on putting a dry type dual clutch to practical use in commercial vehicles. A high percentage of commercial vehicles are still equipped with a manual transmission and there is plenty of room for switching from manual to automatic. EXEDY plans to complete a basic feasibility assessment by the year-end, and embark on technological presentations toward commercial vehicle and transmission manufacturers next year. In the Japanese domestic market, the company aims to apply the technology to vehicles conforming to carbon dioxide emission regulations that will go into effect from 2015. (From an article in the Nikkan Jidosha Shimbun on May 21, 2010)

Other business
-For hybrid vehicles, the Company is developing dampers to absorb vibration produced when the power source is switched between the engine and the motor. It is also engineering new products, including a damper with a torque limiter, which prevents situations when the engine has to operate under the maximum load level.

Licensing of Technology from other Companies

(As of Mar. 31, 2011)

Country Company Contract Period
Germany J M Foito Manufacturing technology of wet type fly wheel with two pieces From Jan. 1, 1992 for 15 to 20 years

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall  10,486 12,980 18,586
MT Business  2,657 2,810 4,557
AT Business  6,160 8,832 11,155

MT business
-Investment was focused on enhancing efficiency and increasing production at the headquarters and Asian subsidiaries.

AT business
-Investment was focused on increasing production at its headquarters' plants and Asian subsidiaries.

Capital Investment Plans
-The Group plans to spend 25 billion yen on capital investments in the fiscal year ending Mar. 2012. Out of this, 6.2 billion yen will be invested in the manual transmission business and 14.9 billion yen in the automatic transmission business.