Stanley Electric Co., Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of Change (%) Factors
Sales 248,081 238,888 3.8 -
Operating income 29,902 24,336 22.9 -
Ordinary income 32,579 26,045 25.1 -
Net income 17,112 17,128 (0.1) -
Automotive products
Sales 172,533 157,308 9.7 -
Operating income 24,663 18,345 34.4 - Operating income increased due to an improvement in productivity as a result of the Company's Production Innovation Initiative.


Performance Forecast

(in million JPY)
Rate of Change
Sales 250,000 248,081
Operating income 31,000 29,902 3.7
Ordinary income
34,000 32,579 4.4
Net income
17,500 17,112 2.3

The Fourth Medium-term Three Year Business Plan (April 2010 through March 2013)

1. Enhancing cash flow management -While further evolving the Production Innovation Initiative, the Company is making a Group-wide effort to innovate processes through reducing costs and lead time in all the business processes.
-The Company operates under the Three-dimensional Matrix Management style, a type of management style in which three pivotal sectors work together. The three are the headquarters, functions, and facilities.
2. Establishing the foundation to increase new business -The Company aims to improve the value provided to the customers.
-The Company cultivates a corporate culture that encourages innovation, so that every employee feels the will to create new products and business opportunities and actively work to maintain and achieve the highest level of optical technologies in the world.


>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 4,983
3,586 4,087
Automotive products 1,634
1,092 1,635

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 lighting and power supply units for drive systems
-Light source unit for LCDs

4. Software area
-Distribution light simulation systems
-Optical device optimal design tools

5.Materials and processing area

6. Products utilizing above devices and technology

R&D Achievements

-The Company has developed a new technology to improve the life of automotive LED lamps such as tail lamps while concurrently increasing the light volume. As its unique glass coating on the silver plated troffer prevents the silver gilt from sulfurization, which darkens the silver gilt when electric current is applied, the light volume will not decrease due to temporal change. The operating temperature limit has also been improved to 150 degrees C by replacing the plastic case by the ceramic one. Stanley Electric, therefore, has made its LED lamp applicable to high current without enlarging the heatsink and achieved a higher light volume for the LED lamp of the same size as the conventional one. It will sell this as a new technology that ensures the luminance with fewer LED lamps in its attempt to win new business with automakers. (From an article in the Nikkan Jidosha Shimbun on October. 21, 2010)

Technological Cooperation Licensing-in

(As of Mar. 31, 2011)

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 Mar. 31, 2011)

Partner Content Term
Thai Stanley electric Public Co., Ltd. (Thailand) Technology related to automotive lamps 31 March, 2012
SL Lighting Corporation (Korea) Technology related to automotive lamps 31 March, 2014
Kenmos Technology Co., Ltd. (Taiwan) Technology related to area light source 31 March, 2012
Lumax Industries Ltd. (India) Technology related to automotive lamps 31 March, 2012

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 25,895 18,826 25,864
Automotive products  15,577 15,701 14,542


Plans for New Production Facilities (Automotive products)

Type of facility Total amount
(in million JPY)
Start Completion
Hatano Factory, etc.
(Hadano City, Kanagawa Pref.)
Automotive business facilities 11,679 April 2010 March 2012
Hamamatsu Factory, etc.
(Hamamatsu City, Shizuoka Pref.)
Automotive and motorcycle facilities 1,152 April 2010 March 2012
Stanley Electric do Brasil Ltda.
(Sao Paulo, Brasil)
Automotive business facilities 5,367 Nov. 2009
Jan. 2012
Guangzhou Stanley Electric Co., Ltd.
(Guangzhou, China)
Automotive business facilities 7,494 Jan. 2008
Mar. 2013