EXEDY Corporation Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of Change
Sales 234,262 202,236 15.8 -
Operating income 19,434 14,360 35.3 -
Ordinary income 21,024 16,326 28.8 -
Net income 12,268 9,722 26.2 -
MT business
Sales 67,649 60,223 12.3 -Favorable currency translation due to the weak yen; increased orders in Asia and China
Operating income 10,226 8,107 26.1 -
AT business
Sales 141,859 120,898 17.3 -Favorable currency translation due to the weak yen; increased orders placed by Japanese OEMs; launch of sales at new business operation
Operating income 10,422 6,575 58.5 -

-The Company received an order for dry type multi-plate clutches and flywheel dampers for the 2014 Pathfinder Hybrid released by Nissan Motor Co., Ltd. in the U.S. The dry type multi-plate clutch and the flywheel damper are super-thin, high-performance type, which can be installed on front-wheel-drive hybrid vehicles (HVs). This is the first time for dry type multi-plate clutch is used on HVs. Friction material for the clutch has enhanced abrasion resistance and frictional vibration resistance, and has been jointly developed by Nissan and Exedy Friction Material Co., Ltd., Exedy's subsidiary in Thailand. (From an article in the Nikkan Jidosha Shimbun on January 22, 2014)

-The Company announced that EXEDY America and EXEDY DYNAX Mexico both received Best Performance awards from Jatco Mexico, S.A. de C.V. (From a press release on August 29, 2013)

-EXEDY Shanghai received the Jatco Supplier Award from Jatco (Guangzhou) Automatic Transmission Ltd. in recognition of its production quality improvement efforts. (From a press release on August 29, 2013)

-The Company announced that it has received Jatco Ltd.'s the "2012 Jatco Supplier Award" in recognition of the development of its high-performance, low-cost torque converter. (From a press release on August 9, 2013)


-The Company announced that it has received the "Special Quality Award" and an award for "Continuous Excellence in Quality" from Daihatsu. This is the 13th consecutive year that EXEDY has received awards from Daihatsu. (From a press release on April 17, 2013)

Outlook for FY ending 2015

(in million JPY)
  FY ending Mar. 31, 2015
FY ended Mar. 31, 2014
(Actual Results)
Rate of Change
Sales 245,000 234,262 4.6
Operating income 20,000 19,434 2.9
Ordinary income 19,000 21,024 (9.6)
Net income 11,500 12,268 (6.3)

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


R&D Expenditures

(in million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
MT business 863 922 1,142
AT business 1,533 1,386 1,711
Others 685 736 696
New products 1,490 1,132 861
Total 4,573 4,177 4,411

R&D Structure

-The Company employs 437 engineers, which account for approximately 3 percent of its overall workforce (as of Mar. 31, 2014).
-R&D activities are conducted mainly at the following locations:
Name Location
DYNAX Corporation Hokkaido
Outside Japan
EXEDY Chongqing Co., Ltd. Chongqing, China
EXEDY DYNAX SHANGHAI Co., Ltd. Shanghai, China
EXEDY Friction Material Co., Ltd. Chonburi, Thailand
EXEDY ENGINEERING ASIA Co., Ltd. Chonburi, Thailand
EXEDY India Ltd. Maharashtra, India

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
-The Company is constantly making use of the latest computer systems to conduct research on wet-type clutches, in order to eliminate internal oil leaks, relieve surface pressure, and improve anti-slip performance.

-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 million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
MT Business 4,662 3,052 5,175
AT Business 16,943 11,216 12,451
Others 6,310 1,766 2,225
Total 27,915 16,034 19,852

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.

Planned Capital Investments

-The Group plans to spend JPY 26,000 million on capital investments in the fiscal year ending March 2015. Out of this, JPY 4,420 million will be invested in the manual transmission business and JPY 16,850 million in the automatic transmission business.