EXEDY Corporation Business Report FY2012

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 Rate of Change
Sales 201,931 196,451 2.8 -
Operating income 16,783 21,395 (21.6) -Operating income decreased because the costs for materials rose due to the rise in steel prices, and because of negative currency translation due to the high evaluation of the yen.
Ordinary income 16,176 20,833 (22.4) -
Current net income 9,221 13,024 (29.2) -
MT business
Sales 57,788 56,942 1.5 -Sales at the MT business in Japan rose year-on-year because of the increased business the Company won.
Operating income 8,640 9,433 (8.4) -
AT business
Sales 120,784 118,190 2.2 -Sales at the AT business increased year-on-year because of the increase in orders the Company won in Japan from OEMs and transmission makers; and because of the increase in orders the Company won in China.
Operating income 6,814 10,181 (33.1) -


-The Company announced that Exedy Precision Co., Ltd. has received from Jatco Ltd. the "2011 Jatco Regional Supplier Award". (From a press release on March 23, 2012)

-The Company announced that EXEDY America had received from Jatco Mexico the 2010 Jatco Supplier Award. This award joins EXEDY and EXEDY Shanghai as the third award to be received from Jatco Corporation reflecting its performance in 2010. (From a press release on August 5, 2011)

-The Company announced that EXEDY Shanghai received the 2010 Jatco Supplier Award from Jatco (Guangzhou) Automatic Transmission Ltd. This time the EXEDY Shanghai team was awarded based on having a cost better than other competitors by taking advantage of locally procured supplies for manufacturing. (From a press release on June 27, 2011)

-The Company announced that it has received from Jatco Corporation the "2010 Jatco Supplier Award." This award was in acknowledgement of the Company's high technological development and craftsmanship as a global parts manufacturer. (From a press release on June 14, 2011)

-The Company announced that it has been awarded the Global Innovation Award from Nissan. This award recognizes the Company's development of next generation CVT torque converter for small and light applications. (From a press release on July 18, 2011)

-The Company announced that it had won the "Special Quality Award" and an award for "Continuous Excellence in Quality" award from Daihatsu Motor. The Company is now the recipient of Daihatsu's quality award for 11 years in a row. (From a press release on April 15, 2011)

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


R&D Expenditures

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
MT business 1,142  1,098 1,119
AT business 1,711 2,052 2,047
Others 696  598 1,204
New product 861 848
Total 4,411  4,596 4,370

R&D Structure

-The Company employs 363 engineers, which account for approximately 4 percent of its overall workforce (as of Mar. 31, 2012).

-The Company announced that EXEDY Friction Material (EFM) opened its new tribology technical center in Thailand. The EFM group will research and develop friction material at the new technical center. (From a press release on September 28, 2011)

R&D Activities

MT business
-In the area of parts designed for passenger vehicles, the Company developed a duel-mass flywheel and a clutch with a high-performance damper that absorbs the vibration coming from direct-injection diesel engines and lean-burn engines crated to reduce environmental impact and meet the need for lower fuel consumption.

-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.

-One development at the AT Business included the successful creation of a torque converter that reduces vibration when the low-speed clutch is disengaged while the lock-up range is increased to the low-speed gear range so as to lower fuel consumption. The Company has won new orders for this torque converter.

-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.

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.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
MT Business 5,175  2,657 2,810
AT Business 12,451  6,160 8,832
Others 2,225 1,669 1,338
Total 19,852  10,486 12,980

MT business
-The Company invested to rationalize operations and increase production volumes at its own facilities as well as at its subsidiaries in Asia.

AT business
-The Company invested to increase production volumes at its own facilities as well as at its subsidiaries in Japan and Asia.

Investment Outside Japan

-In order to increase its presence in both the four- and two-wheel vehicle businesses in the Indian market, Exedy Clutch India Private Limited constructed a new production facility. This is the third production facility in India.

-The Company decided to expand its production operations in Mexico because of the robust production of automobiles taking place in the country.

Planned Capital Investments
-The Group plans to spend 25 billion yen on capital investments in the fiscal year ending Mar. 2013. Out of this, 4.1 billion yen will be invested in the manual transmission business and 16.7 billion yen in the automatic transmission business.