Keihin Corporation Business report FY2008

Business Highlights

Financial overview (in millions of JPY)
FY2008 FY2007 Rate of Change






Operating income





Ordinary income





Current net income





-The Company supplied newly developed hydrogen and electronic control products for fuel cells to Honda for the "Honda FCX Clarity".
-The company developed an electronic control product for the "Pop up hood system", a system that reduces head impact on pedestrians at time of collision. The product was supplied to Honda to be used in the "Honda Legend".
-The Company developed and supplied an electronic control product that controls both motor and battery in the "Honda Insight".

Highlights by Region
-In addition to the increased sales of products for "Honda Freed" and "Honda Fit", sales of products for Honda's new model "Honda Insight" increased.
-While Japan Based sales decreased due to transfer of production to its plant in North America, the sales and export of products for motor cycles has increased since the end of last year.
-Total domestic sales decreased by 29 billion 364 million yen year-on-year to 152 billion 729 million yen.

<The Americas>
-The sale of products for automobiles increased as a result of production transfer from Japan.
-In addition to contraction of the North American market and a shift to smaller vehicles, foreign currency translation significantly impacted upon revenues.
-Total sales decreased by 25 billion 24 million yen year-on-year to 83 billion 202 million yen.

-The sale of automobile products increased in Thailand and China. The sale of products for motor cycles increased in Thailand and Indonesia.
-Foreign currency translation impacted upon sales due to a strong yen.
-Sales increased by 883 million yen year-on-year to 92 billion 335 million yen.

-Sales increased mainly due to new consolidation.
-In addition to poor performance in the European Market, foreign currency translation impacted upon revenues.
-Total sales decreased by 3 billion 97 million yen year-on-year to 7 billion 764 million yen.

Recent Development in Japan
Reorganization of Facilities
<Production Division>
-Kawasaki plant, which manufactures products for motor cycles and general machinery, and Iwate Plant, which manufactures products for automobiles, will be consolidated into plants located in Kakuda area in Miyagi prefecture, by August 2009 and January 2010 respectively.
-The number of production facilities in Japan will be reduced from 8 to 6.

<Development Division>
-The development division in Kawasaki plant will be consolidated with Tochigi Development Center by September 2010.
-The number of development facilities in Japan will be reduced from 3 to 2.


-R&D Costs for FY2008 were 14,404 million yen. (Cost of sales and administrative costs were 1,270 million yen.)

Four wheel vehicle business
-The Company works to modularize fuel supply systems and hydraulic control systems, and to commercialize integration technology and new manufacturing process technology.

-The Company developed and commercialized system products for alternative fuels.

-The Company developed and commercialized high-performance small air-conditioning systems.

-The Company developed low-cost high-efficiency next model scroll compressors.

-The Company developed and commercialized highly integrated engine control units.

-The Company developed and commercialized control units for hybrid cars and power modules for driving a motor.

Investment Activities

-Capital investment in FY2008 was 17,974 million JPY.
-The breakdown is as follows: 4,688 million JPY for motorcycle/general-purpose production facilities, 7,165 million JPY for four-wheeled vehicle production facilities, 1,268 million JPY for investment in research and development, and 4,852 million JPY for other investments.

Overseas Investments
-The Company will reinforce its business of supplemental restraint system (SRS) sensor units for airbags. The Company will focus on strengthening its operations at its Chinese facility, which has been operating as the production hub for newly developed, high-performance, and cost-efficient SRS sensors since last fall. The Company is poised to launch full-scale marketing in the global auto industry, targeting manufacturers of compact vehicles. In line with this project, the Group's Chinese facility will also start producing ignition control units used in SRS airbags systems. (From an article in the Nikkan Jidosha Shimbun on May 29, 2008)

Amount of capital investment

Business segment Type of facility Planned total investment
(million JPY)
Starting month Planned completion
Kakuda 2nd Plant
(Miyagi Pref., Japan)
Four wheeled vehicle business Production facilities etc. 605 Apr., 2009 Mar., 2010
Kakuda 3rd Plant
(Miyagi Pref., Japan)
Motorcycle /multipurpose business,
Four wheeled vehicle business
Production facilities etc. 629 Apr., 2009 Mar., 2010
Marumori Plant
(Miyagi Pref., Japan)
Four wheeled vehicle business Production facilities etc. 757 Apr., 2009 Mar., 2010
Tochigi R&D Center
(Tochigi Pref., Japan)
R&D R&D facilities 2,160 Apr., 2009 Mar., 2010
Keihin IPT Mfg. Inc.
(Indiana, USA)
Four wheeled vehicle business Production facilities etc. 1,288 Apr., 2009 Mar., 2010