EXEDY Corporation Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of Change
Sales 202,236 201,931 0.2 -Record-high sales were achieved for the second year in a row as a result of increased orders in the U.S.A and the launch of operations at new production plants. However, the volume of business orders won in Japan fell sharply during the second half of the year because of the anti-Japan situation in China that erupted in September 2012.
Operating income 14,360 16,783 (14.4) -
Ordinary income 16,326 16,176 0.9 -
Net income 9,722 9,221 5.4 -
MT business
Sales 60,223 57,788 4.2 -Business orders increased because of the strong economy in the ASEAN Region, which included Thailand that recovered from the negative impact of the flooding.
Operating income 8,107 8,640 (6.2) -
AT business
Sales 120,898 120,784 0.1 -Due to the anti-Japan situation in China, product orders from OEMs and transmission manufacturers in Japan fell for the year. Nevertheless, sales for the year were able to stay on par with those of last year due to increased product orders in the U.S.A. and the launch of sales at its new plants.
Operating income 6,575 6,814 (3.5) -

-The Company's subsidiary EXEDY Hiroshima Co., Ltd. was merged into EXEDY Corporation effective February 1, 2013, and is now known as EXEDY's Hiroshima Plant. (From a press release on February 1, 2013)

-The Company merged its two Indonesian group companies, P.T. EXEDY Indonesia and P.T. EXEDY Motorcycle Indonesia, into a new company P.T. EXEDY Manufacturing Indonesia, effective October 1, 2012. The new subsidiary manufactures and sells clutches for automobiles and motorcycles. (From a press release on October 4, 2012)


-The Company 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 12 years in a row. (From a press release on April 5, 2012)

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


R&D Expenditures

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
MT business 922 1,142  1,098
AT business 1,386 1,711 2,052
Others 736 696  598
New products 1,132 861 848
Total 4,177 4,411  4,596

R&D Structure

-The Company employs 405 engineers, which account for approximately 3 percent of its overall workforce (as of Mar. 31, 2013).

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, DYNAX 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, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
MT Business 3,052 5,175  2,657
AT Business 11,216 12,451  6,160
Others 1,766 2,225 1,669
Total 16,034 19,852  10,486

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

-The Company will construct a new plant in southern India to produce clutches and other components for use in vehicles and motorcycles. Acquiring land of about 120,000 square meters in the industrial park in Bangalore, the new plant is scheduled to start mass production of clutches and facings in April 2013. Employing 500 workers initially, it will supply the products to Japanese-affiliated manufacturers of vehicles and motorcycles. The Company's joint venture in India already has two plants in the northern and central India. The new plant will be managed and operated by the wholly-owned subsidiary, EXEDY Clutch India. The new plant in the south will be a third production facility to meet growing needs for motorcycle and automobile parts. The Company, which scored 3.5 billion yen in sales in India in fiscal 2011, aims to achieve 10 billion yen in fiscal 2015. (From an article in the Nikkan Jidosha Shimbun on Jun. 25, 2012)

-The Company will expand production capacity of transmission parts in Mexico. Its subsidiary will leave the rented plant and construct its own new facility to produce torque converters for continuously variable transmissions (CVT). It will also increase in-house production of components, and is expecting to commence volume production in September 2013. Production capacity of torque converters for CVT is projected to rise from the current 250,000 units to 900,000 units a year. The products will be supplied to local Japanese affiliated automakers and transmission suppliers, which are increasing production volume in the Mexican market. The Company plans to develop global production capacity of 10 million torque converters a year in 2017. (From an article in the Nikkan Jidosha Shimbun on Jun. 15, 2012)

Planned Capital Investments
-The Group plans to spend 24 billion yen on capital investments in the fiscal year ending Mar. 2014. Out of this, 3.9 billion yen will be invested in the manual transmission business and 14.6 billion yen in the automatic transmission business.