Stanley Electric Co., Ltd. Business report FY2007

Business Highlights

Financial overview
In million JPY FY2007 FY2006 Rate of Change (%) Factors
Sales 354,469 338,680 4.7 -
Operating income 46,563 40,649 14.5 -
Ordinary income 48,896 43,612 12.1 -
Net income 29,732 26,283 13.1 -
Car Electronics Division
Sales 246,368 231,573 6.6 -Amid the steady growth of auto production worldwide, the Company recorded an increase in sales mainly due to strong sales of value-added products such as adaptive front lighting systems (AFSs) and discharge head lamps (HIDs) and LED rear combination lamps.
Operating income 26,443 21,778 21.4


Total R&D expenses for FY2007, which ended Mar. 2008, are as follows.
-Total R&D expenses: 4,731 million yen.
-Automotive products: 1,981 million yen
-Electronic products: 2,749 million yen

Main fields of R&D
1.Optoelectronics area
-High power white LEDs
-High power red/infrared LEDs
-High speed sensitive image sensors
2.Display area
-Super-high contras LCDs
-Optical micro-scanners
-Display drive circuits
3.Source of light and illumination area
-Automotive lamps
-Cold Cathode Fluorescent Lamps (CCFLs)
-LED street lightings, indoor lightings and power supply units for drive systems
-Light source unit for LCDs

4.Software area
-Distribution light simulation systems
-Optical device optimal design tools
-Human interfaces
5.Products utilizing above devices and technology

Technical Alliance
-On May 15 the Company announced that it has concluded a licensing agreement on white LED with Nichia Corporation (Anan city, Tokushima prefecture), the largest supplier of light-emitting diodes (LEDs). Based on this agreement the Company will enter into the market of LED head lamps, whose adoption is expected to increase mainly for luxury cars, while Nichia will expand scope of business to automotive products, including high-value added LED bulbs. Koito Manufacturing Co., Ltd. has already developed LED head lamps jointly with Nichia, which will be installed on Toyota's Lexus 600h to be launched soon. The Company has also been accelerating the development of LED head lamps targeting mainly at Honda's luxury cars. (From an article in the Nikkan Jidosha Shimbun on May. 16, 2007)

Technological Cooperation Licensing-in
(as of March 2008)

Partner Technology Period
Hitachi Ltd. Patent on LCD Validity period of the patent
Nichia Corporation Patent on White LED Validity period of the patent

Technical Tie-up for Automotive Lights (as of March 2008)
Partner Content Term
Thai Stanley electric Public Co., Ltd. (Thailand) Technology related to automotive lamps 31 Mar., 2009
SL Lighting Corporation (Korea) Technology related to automotive lamps 31 Mar., 2009
Prokia Technology Co., Ltd. (Taiwan) Technology related to area light source 31 Mar., 2009
Lumax Industries Ltd. (India) Technology related to automotive lamps 31 Mar., 2009

Investment Activities

Total capital investment was 28,577 million yen in FY2007.
Out of the total amount, the Company invested 18,957 million JPY in manufacturing facilities for the automotive business.

Plans for new production facilities (Automotive components)


Location Planned total investment (million yen) Start month and year Planned completion
Stanley Electric Co., Ltd. (Hatano Factory, etc. ) Hatano City,
Kanagawa Pref., etc.
23,302 Apr., 2007 Mar., 2009
Stanley Niigata Works Co., Ltd. Niigata City,
Niigata Pref.
1,741 Oct., 2007 Aug., 2009
Stanley Electric U.S. Co., Inc. Ohio, U.S.A. 2,187 Jan., 2007 Jan., 2009
Tian Jin Stanley Electric Co., Ltd. Tianjin, China 1,998 Apr., 2007 Mar., 2009
Guangzhou Stanley Electric Co., Ltd.
Guangzhou, China 8,615 Jan., 2008 Apr., 2012