Sanden Holdings Corporation Business Report FY ended Mar. 2017
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 282,061 | 294,237 | (4.1) | - |
| Operating Income | 1,582 | 5,494 | (41.6) | - |
| Ordinary Income | (2,262) | 6,138 | - | - |
| Profit for the year attributable to owners of the parent | (22,488) | 6,965 | - | -The Company posted an extraordinary loss of JPY 10,912 million for the loss on valuations of investment securities, which had fallen drastically from their original valuations when acquired. |
| Automotive systems business | ||||
| Sales | 199,180 | 198,385 | 0.4 | -Sales were basically on par with those of the previous year because of the effect of negative currency translation, even though high volumes of sales were achieved in Europe and China. |
| Operating Income | 4,418 | 6,523 | 32.3 | -Operating income decreased because of investment expenses to develop future, environmentally friendly technology, the delay in improving productivity at some of the production plants located outside Japan, and the effect of negative currency translation, in spite of launching in-house production of parts and improving the parts-procurement system globally. |
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
-The Company 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, 2018 (Forecast) |
Year-on-year Change | FY ended Mar. 31, 2017 (Actual Results) |
Year-on-year Change | FY ended Mar. 31, 2016 (Actual Results) |
|
| Units sold (in 1,000s) | 18,200 | 6% | 17,100 | 9% | 15,700 |
| Year-on-year Change by region | |||||
| -Europe | - | +10% | - | +5% | - |
| -China, Asia | - | +12% | - | +16% | - |
| -Japan | - | -25% | - | +24% | - |
| -Americas | - | -14% | - | -7% | - |
Outlook by Segment for FY ending Mar. 31, 2018 |
(in millions of JPY) |
| FY ending Mar. 31, 2018 (Forecast) |
FY ended Mar. 31, 2017 (Actual Results) |
Rate of Change (%) |
|
| Sales | 285,000 | 282,061 | 1.0 |
| -Automotive systems business | 203,000 | 199,200 | 1.9 |
| Operating income | 5,000 | 1,582 | 216.1 |
| Ordinary income | 4,000 | (2,262) | - |
| Profit for the year attributable to owners of the parent | 7,000 | (22,488) | - |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Group | 7,910 | 4,260 | 6,742 |
| Automotive systems business | 5,530 | 6,771 | 4,488 |
R&D Centers
-The four global R&D centers (Japan, Europe, North America, and Asia) are engaged in making new-product and new-technology proposals to customers, while developing new products. In line with this, they support the development of technology globally, such as materials technology, reliability technology, and manufacturing technology.
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.
Development of New Air-conditioner Electric Compressor and Water Heater
-The Company a subsidiary of Sanden Holdings Corporation, announced that it has developed a new automotive air-conditioner electric compressor and a water heater for fuel cell vehicles (FCVs). Both products are produced at its Yattajima Plant. The company will sell the products to Japanese and other automakers around the world. (From an article in the Nikkan Jidosha Shimbun on November 29, 2016)
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Group | 12,400 | 14,800 | 13,300 |
| Automotive systems business | 10,800 | 12,500 | 9,800 |
| -Japan | 2,100 | 4,800 | 3,200 |
| -Europe | 3,100 | 4,200 | 4,000 |
| -North America | 700 | 500 | 500 |
| -Asia | 4,700 | 2,900 | 2,000 |
-In the fiscal year ended March 2017, the Company invested mainly to localize production and switch to in-house production.
Planned Capital Investments
-In the fiscal year ending in March 2018, the Company plans to spend a total of JPY 9,000 million in capital investments to strengthen its production operations, localize procurement, and initiate in-house production, of which it plans to spend JPY 7,800 million in the automotive component business alone.
- Japan：JPY 1,800 million
- Europe：JPY 3,900 million
- Asia：JPY 2,000 million