Sanden Holdings Corporation Business Report FY ended Mar. 2016
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 294,237 | 306,984 | (4.2) | - |
| Operating Income | 5,494 | 9,407 | (41.6) | - |
| Ordinary Income | 6,138 | 10,314 | (40.5) | - |
| Profit for the year attributable to owners of the parent | 6,965 | 5,580 | 24.8 | - |
| Automotive systems business | ||||
| Sales | 198,385 | 200,222 | (0.9) | -Sales in Europe and Asia were strong. The acquisition of a new market area in China added to income. However, the Company’s performance was impacted by lower automotive sales in North America and Japan. |
| Operating Income | 6,523 | 5,602 | 16.4 | -Income was higher due to cost reductions and improved productivity as a result of switching to in-house production and enhancing its global parts-procurement structure. However, higher expenses were incurred for capital investments in developing future environmental technology, and business performance was impacted by lower sales. |
Changed to a Holding Company on April 1, 2015
Business Organization
| Company name | Business area |
| Sanden Holdings Corporation | - |
| Sanden Automotive Climate Systems Corporation | Automotive climate-control systems |
| Sanden Automotive Components Corporation | Automotive climate-control compressors |
| Sanden Retail Systems Corporation | Logistic systems |
| Sanden Living & Environment Systems Corporation | Residential environmental systems |
| Sanden Environmental Products Corporation | Natural cooling products |
| Sanden Advanced Technology Corporation | Same-group advanced tech R&D activities |
| Sanden Business Expert Corporation | Same-group common expert services |
Relocation of Tokyo Headquarters
-The Company announced that the company, together with its affiliates, will move its Tokyo Headquarters to the Akihabara Daibiru Building near Akihabara Station. Operations at the new office are scheduled to start on May 9. Through this relocation, Sanden aims to change its employees' way of working and consciousness, while improving its management quality. The affiliates that will also move to the new office are Sanden Automotive Climate Systems Corporation, Sanden Automotive Components Corporation, Sanden Living & Environmental Systems Corporation, Sanden Environmental Products Corporation, and Sanden Business Expert Corporation. (From an article in the Nikkan Jidosha Shimbun on April 30, 2016)
Strengthening heat-pump business
-Sanden Automotive Climate Systems Corporation (Sanden AS), an automotive air-conditioning system business unit of the Company, will start strengthening its heat pump system operations. Heat pump systems efficiently provide heating and cooling using small amounts of energy. Sanden AS has received orders for its heat pump systems from Japanese OEMs for electric vehicles (EVs). The Company aims to start mass production in 2017. Sanden AS has a 4% share of the global automotive air-conditioning system market. The company intends to increase that to 10% through full operation of its heat pump system business. (From an article in the Nikkan Jidosha Shimbun on July 5, 2016)
Unit sales of automotive compressors
| FY ending Mar. 31, 2017 (Forecast) |
Year-on-year Change | FY ended Mar. 31, 2016 (Actual Results) |
Year-on-year Change | FY ended Mar. 31, 2015 (Actual Results) |
|
| Units sold (in 1,000s) | 16,400 | 4% | 15,700 | -2% | 16,000 |
| Year-on-year Change by region | |||||
| -Europe | - | +7% | - | +1% | - |
| -China, Asia | - | +4% | - | 0% | - |
| -Japan | - | +12% | - | -22% | - |
| -Americas | - | -3% | - | -4% | - |
Outlook by Segment for FY ending Mar. 31, 2017 |
(in millions of JPY) |
| FY ending Mar. 31, 2017 (Forecast) |
FY ended Mar. 31, 2016 (Actual Results) |
Rate of Change (%) |
|
| Sales | 300,000 | 294,237 | 2.0 |
| -Automotive systems business | 198,000 | 198,385 | (0.02) |
| Operating income | 7,500 | 5,494 | 36.5 |
| Ordinary income | 9,000 | 6,138 | 46.6 |
| Profit for the year attributable to owners of the parent | 7,000 | 6,965 | 0.5 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Group | 4,260 | 6,742 | 7,095 |
| Automotive systems business | 6,771 | 4,488 | 4,908 |
R&D Centers
-The Company has R&D centers in four regions: Japan, Europe, North America, and Asia. They all engage in developing new products and technology, making product presentations about them to customers. In addition, they also develop materials technology, reliability technology, and production technology, working to expand technological support worldwide.
R&D activities
Automotive components business
-Development of compressors and automotive climate-control systems responding to changes in plug-in hybrid vehicles and electric vehicles.
-The greatest issue at the automotive components business is developing next-generation, environmentally friendly and low-energy products. As a result, the Company is working to reduce energy consumption, fuel consumption, and environmental impact, developing smaller, lighter, and more efficient compressors; electric compressors; smaller and lighter automotive HVAC systems; and automotive climate-control heat-pump systems.
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Group | 14,800 | 13,300 | 16,600 |
| Automotive systems business | 12,500 | 9,800 | 13,600 |
| -Japan | 4,800 | 3,200 | 3,400 |
| -Europe | 4,200 | 4,000 | 4,300 |
| -North America | 500 | 500 | 2,500 |
| -Asia | 2,900 | 2,000 | 3,200 |
-In the fiscal year ended March 2016, the Company invested mainly to localize production and switch to in-house production.
Planned Capital Investments
-In the fiscal year ending in March 2017, the Company plans to spend a total of JPY12,000 million in capital investments to strengthen its production operations, localize procurement, and initiate in-house production, of which it plans to spend JPY 10,000 million in the automotive component business alone.
- Japan：JPY 2,500 million
- Europe：JPY 3,000 million
- North America：JPY 500 million
- Asia：JPY 4,000 million