EXEDY Corporation Business Report FY ended Mar. 2017
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 266,121 | 268,752 | (1.0) | -Sales ended up lower because of the effect of negative currency translation, even though on a volume basis product orders were higher year-over-year (y/y), as the company received steady product orders in addition to orders for new products that were launched the previous fiscal year. |
| Operating income | 22,083 | 21,305 | 3.7 | -Even though R&D expenses increased y/y, operating income increased, thanks to effective cost-cutting initiatives. |
| Ordinary income | 20,796 | 18,112 | 14.8 | - |
| Profit for the year attributable to owners of the parent | 13,855 | 12,013 | 15.3 | - |
| MT business | ||||
| Sales | 68,264 | 71,667 | (4.7) | -Sales decreased, even though the volume of product orders remained high. |
| Gain or loss for the segment | 10,502 | 10,891 | (3.6) | -Income decreased due to lower sales volumes. |
| AT business | ||||
| Sales | 168,303 | 166,393 | 1.1 | -Sales increased, thanks to higher product orders that resulted from orders for new products that were launched during the past fiscal year. |
| Gain or loss for the segment | 11,336 | 9,430 | 20.2 | - Income increased due to higher sales volumes. |
Awards
-The Company announced that its Chinese subsidiary, EXEDY DYNAX Shanghai Co., Ltd., received the 2016 Excellent Supplier Award from subsidiary of Changan Automobile. This is the third time and second consecutive year that EXEDY DYNAX Shanghai has received this award. (From a press release on January 23, 2017)
-The Company announced that it has received 2015 JATCO Supplier Award. Winning in the Global special award for contribution to JATCO by the global deployment, and the Regional special award for contribution to quality improvement and fuel efficiency through the development of the torque converter. (From a press release on September 5, 2016)
Outlook for FY ending 2018 |
(in million JPY) |
| FY ending Mar. 31, 2018 (Forecast) |
FY ended Mar. 31, 2017 (Actual Results) |
Rate of Change (%) |
|
| Sales | 270,000 | 266,121 | 1.5 |
| Operating income | 20,000 | 22,083 | (9.4) |
| Ordinary income | 20,000 | 20,796 | (3.8) |
| Profit for the year attributable to owners of the parent | 13,000 | 13,855 | (6.2) |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditures |
(in million JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| MT business | 1,235 | 1,255 | 884 |
| AT business | 1,789 | 1,754 | 1,574 |
| Others | 1,011 | 998 | 1,095 |
| New products | 1,727 | 1,366 | 1,654 |
| Total | 5,763 | 5,374 | 5,208 |
R&D Structure
-As of the fiscal year that ended March 2017, the Group had 506 R&D staff, which accounted for 3% of the entire workforce.
-The Company’s R&D activities are being conducted at the following locations.
| Name | Location |
| Japan | |
| 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 automobile sector, the Company is developing clutches and dual mass-fly wheels with high-performance dampers, which can effectively absorb vibration generated from lean-burn engines and direct-injection diesel engines that comply with environmental issues and lower fuel consumption.
-In the commercial-vehicle sector, the Company is developing products such as actuators and motor drivers that operate clutches that are controlled by control units, as products for ATMs that automate the startup and shifting of manual clutches and manual transmissions.
AT business
-The Company is developing torque convertors, lock-up clutches, and wet clutches.
-The Company is continuing to make use of the latest computer systems for research that leads to improving oil flow, surface pressure analysis, and slip properties inside wet clutches.
-The Company developed and started receiving orders for a torque converter that it developed, which dampens vibration when the clutch is engaged at slow speed, increasing the lockup range up to slow-speed range in order to reduce fuel consumption.
-Dynax Corporation, a consolidated subsidiary, is developing friction materials for lock-up clutches as well as parts for automatic transmissions, fostering its technology on wet friction-materials that use unwoven fabric. It is developing parts designed for DCTs mounted on commercial vehicles, mass-producing the first wet dual clutch for commercial vehicles.
Other business
-Development of high-performance dampers for downsized, supercharged engines and variable displacement engines.
-Development of new products such as dry type multi-plate clutch for hybrid vehicles, which disconnects the engine with the motor, creating space within the motor’s interior; a damper that absorbs engine vibration generated when the vehicle switches between the engine and motor or when the vehicle is traveling; and a damper torque limiter that prevents overload on the engine.
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| MT Business | 3,884 | 4,859 | 4,422 |
| AT Business | 17,709 | 19,795 | 19,851 |
| Others | 1,012 | 2,187 | 3,439 |
| Total | 22,607 | 26,842 | 27,713 |
MT business
-Capital spending to streamline, as well as respond to increased production, at the Company and subsidiaries in Asia.
AT business
-Capital spending to respond to increased production at the Company and subsidiaries in Japan and Asia.
Planned Capital Investments
-In the fiscal year ending in March 2017, the Company plans to spend JPY 28,000 million Group-wide on facilities and equipment, investing JPY 4,000 million in the MT business and JPY 20,000 million in the AT business.