Sanden Holdings Corporation Business Report FY ended Mar. 2018
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 287,609 | 282,061 | 2.0 | -Sales of the automotive equipment business increased because of an increase in the sales of air-conditioning systems to European and Japanese automakers and currency translation effects. Operating income increased thanks to cost-cutting efforts despite a negative impact of a rise in raw material prices. |
| Operating Income | 5,469 | 1,582 | 245.7 | |
| Ordinary Income | 4,411 | (2,262) | - | - |
| Profit for the year attributable to owners of the parent | 4,255 | (22,488) | - | - |
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Group | 7,860 | 7,910 | 4,260 |
| Automotive systems business | 6,012 | 5,530 | 6,771 |
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.
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Group | 12,400 | 12,400 | 14,800 |
| Automotive systems business | 10,800 | 10,800 | 12,500 |
| -Japan | 4,500 | 2,100 | 4,800 |
| -Europe | 2,800 | 3,100 | 4,200 |
| -North America | 300 | 700 | 500 |
| -Asia | 3,100 | 4,700 | 2,900 |
-In the fiscal year ended March 2018, the Company invested mainly to localize production and switch to in-house production.
Investment Outside Japan
-In July 2018 the Company announced that Huayu Sanden Automotive Air Conditioning, a joint venture company between the Company and Huayu Automotive Systems, belonging to Shanghai Automotive Industry Corporation (SAIC), completed its "Huayu Sanden Heqing New Plant" in Pudong New Area, Shanghai.
Planned Capital Investments
-In the fiscal year ending in March 2019, the Company plans to spend a total of JPY 10,000 million in capital investments to strengthen its production operations, localize procurement, and initiate in-house production, of which it plans to spend JPY 8,500 million in the automotive component business alone.
- Japan：JPY 3,500 million
- Asia：JPY 2,500 million
- Americas：JPY 1,500 million
- Europe：JPY 1,000 million
Business Plan
-The Company established a medium-term business plan ending in FY 2020 that ends in March 2021. The goals in the plan are:
- Sales: JPY 320 billion
- Ordinary profit to sales ratio: 5%
- Shareholders' equity ratio: 25%
-Plans to achieve the goals in sales, development and manufacturing operations are:
- Actions to win new contracts in FY 2021 onwards
1. Growth/environmentally-friendly vehicles/advanced markets: China and Europe
-Sanden Automotive Climate Systems Corporation will strengthen its heat pump air-conditioning system operations
for electric vehicles in China.
2. Restoring business: Asia and the Americas
-Consolidation and rationalization of its business in the Americas; investing in new products
- The Company will strengthen its thermal management systems business of environmentally friendly vehicles, mainly heat pump systems
- Advancing electric compressor business for environmentally friendly vehicles
- Smooth launch of mass production of electric compressors
-Currently produces electric compressors in Europe, China and Japan, where tough environmental regulations
are applied. The planned annual shipment during FY 2018 is 900,000 units.
-Increasing production capacity to over 1 million units in total, to meet growing global demand for electric compressors. - Keeping productivity of electric compressor production in Europe at high level
- Advancing cost-reduction initiatives of PX compressors