Clarion Co., Ltd. Business Report FY2012

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 2012 FY ended Mar. 2011 Rate of change (%) Factors
Sales 186,711 178,318 4.7 -During the first half of the year the Company faced a parts-supply problem in Japan because of the Great East Japan Earthquake. Then in the second half of the year, the Company was confronted with another supply problem, this time the problem was with the importing of parts from Thailand because of the flooding in that country. On top of that, the economy continued to suffer due to the continued high yen and uncertain economic situation. However, in spite of all these issues, Company’s revenues increased year-on-year because the supply-chain quickly recovered, the domestic OEMs were seeing a strong recovery in the production and sale of new vehicles, and the U.S. automotive market experienced remarkable growth.
Operating income 7,873 4,936 59.5 -
Ordinary income 7,193 4,153 73.2
Net income 7,532 1,383 444.6

Business Partnership

-The Company will manufacture in-vehicle CD players in India by collaborating with a local company, starting in 2013. The company will deliver the products to Japanese and foreign automakers operating in India to meet their requirements to procure such products locally. Production will be outsourced to a local manufacturer, allowing Clarion to hold down initial investments and use the local procurement network. The collaboration is expected to bring in new business opportunities as well. Clarion is currently providing its customers in India with audio equipment manufactured and finished in Thailand. Yet, in response to growing demand for the products in the country, the company has decided to transfer the manufacturing operation for the Indian market to its local partner. The partner company will manufacture CD players using majority of components from Indian suppliers, while importing control boards made in Thailand. In order to increase production efficiency, Clarion will provide technical support to the local facility. Exports from the plant to other countries is also under consideration as a future project. (From an article in the Nikkan Jidosha Shimbun on March 6, 2012)

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

Outlook for FY2013

(in million of JPY)
  FY ending Mar. 2013
FY ended Mar. 2012
Rate of Change (%)
Sales 190,000 186,711 1.8
Operating income 8,800 7,873 11.8
Ordinary income 7,700 7,193 7.0
Net income 6,200 7,532 (17.7)


R&D Expenditure

(in millions of JPY)
  FY ended Mar. 2012 FY ended Mar. 2011 FY ended Mar. 2010
Overall 14 142 86

R&D Activities
-The Company successfully developed the following technologies during its 2012 fiscal year;

  • Created "Smart Access", a cloud-based telematics service designed for automotive use.
  • Commercialized an onboard camera that offers driver assistance, supporting them while driving and parking.
  • Worked on the diversifying onboard audio/cabin-acoustics technology.
  • Developed a fully digital speaker.

Technology Licensed-in

(As of Mar. 31, 2012)
Partner Country Outline of tie-ups Contract period
Discovision Associate U.S.A. Licensed patent on manufacturing optical disc players Dec. 1, 1994
to the patent expiry date
Vehicle Information and Communication System Center Japan License on the use of VICS technical information Nov. 28, 1995 -
expiry date agreed by two parties

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 2012 FY ended Mar. 2011 FY ended Mar. 2010
Total 3,361 1,601 1,946

Investment in Japan

-The Company invested 352 million yen in production equipment/facilities, dies, and other equipment.

Investment Outside Japan

-The Company invested 503 million yen in renewing equipment and facilities for the EMS operations at Electronica Clarion, S.A. de C.V.

-The Company invested 167 million yen in its European operations.

-The Company invested 2.337 million yen in various projects in this region, including establishing a new factory in Thailand and installing new production facilities at its plants in China, and investing in dies that will be used for new product models.

-The Company plans to enhance production of audio and navigation systems for automobiles in Thailand. It will move up the production schedule for the new plant, to be operational in April 2012, and accelerate its expansion plan. While it will supply the products to Nissan, Isuzu and GM, it plans to increase the production capacities in anticipation of shipments to other Japanese automakers as they plan to increase production of compact cars. With expansion of the new Thai plant, Clarion aims to increase production capabilities by the end of FY 2014 in order to be prepared to output two million units in FY 2015. (From an article in the Nikkan Jidosha Shimbun on March 29, 2012) 

-The Company is poised to incrementally expand functions at its plant in Thailand scheduled to be inaugurated in the spring of 2012. The plant will initially produce the car audio systems, but within one or two years, it will add the car navigation systems to support local automakers, primarily Japanese that are enhancing car production in Thailand, and also try to expand sales in the aftermarket. Moreover, Clarion is planning to export products to neighboring ASEAN countries and India where the market is expanding rapidly and even Europe by taking advantage of preferential trade agreements like FTA. The company also has plans to develop the Thai plant as its key operational base on a global scale for additional functions, including product development and sourcing of materials and components. (From an article in the Nikkan Jidosha Shimbun on August 9, 2011)