Sanden Holdings Corporation Business Report FY ended Mar. 2019

Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2019	FY ended Mar. 31, 2018	Rate of Change (%)	Factors
Overall
Sales	273,934	287,609	(4.8)	-Sales and profit fell at the automotive device business because of lower sales in Asia and China caused by the US-China trade war; and because of lower sales by customers in the USA; although sales of products for eco-friendly vehicles mainly in Europe increased.
Operating Income	889	5,469	(83.7)
Ordinary Income	564	4,411	(87.2)	-
Profit for the year attributable to owners of the parent	(23,060)	4,255	(642.0)	-

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2019	FY ended Mar. 31, 2018	FY ended Mar. 31, 2017
Group	8,818	7,860	7,910
Automotive systems business	7,544	6,012	5,530

R&D Centers

-The Company is speeding up development of compressors and air-conditioning systems that respond to changes in hybrid, plugin-hybrid, and electric cars which are undergoing rapid advancements, by creating a global R&D framework that includes the Sanden Technical Centers in Japan, the USA, and Germany; and the R&D function in France; strengthening their collaboration.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2019	FY ended Mar. 31, 2018	FY ended Mar. 31, 2017
Group	13,000	12,400	12,400
Automotive systems business	10,300	10,800	10,800
-Japan	4,800	4,500	2,100
-Europe	1,800	2,800	3,100
-North America	1,100	300	700
-Asia	2,500	3,100	4,700

-In the fiscal year ended March 2019, the Company invested mainly to localize production and switch to in-house production.

Planned Capital Investments

-In the fiscal year ending in March 2020, the Company plans to spend a total of JPY 13,000 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.