Stanley Electric Co., Ltd. Business Report FY ended Mar. 2016
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 404,148 | 359,840 | 12.3 | Sales and operating income increased year-on-year (y/y) -worked on developing new products that best meet the needs of the global market -stepped up its marketing efforts to win more contracts, while expanding production capacity -boosted productivity by dramatically streamlining both its production processes and administrative operations. |
Operating income | 36,774 | 38,054 | (3.4) | |
Ordinary income | 39,402 | 40,610 | (3.0) | - |
Net income | 25,537 | 25,198 | 1.3 | - |
Automotive products | ||||
Sales | 312,780 | 270,223 | 15.7 | -Its performance was supported by growth in vehicle sales in the Americas. |
Operating income | 21,185 | 24,780 | (11.5) | -Operating income decreased y/y due to factors such as one-time expenses. |
Electronic Components | ||||
Sales | 30,504 | 31,512 | (3.2) |
Sales and operating income decreased y/y due to the following factors: |
Operating income | 5,602 | 5,765 | (2.8) | |
Applied Electronic Products | ||||
Sales | 59,879 | 57,914 | 3.4 | -Sales and operating income increased y/y due to growth in sales of in-vehicle control panels. |
Operating income | 6,837 | 5,086 | 15.5 |
Investments Outside Japan
-The Company will establish a new company dedicated to design and development of automotive lights in Tianjin, China, in August 2015. This is the first time for the Company to set up a subsidiary specialized in design and development. The specialized development base will act to make the company more responsive to the needs of Japanese automakers in China. The new company is capitalized at USD 34 million (JPY 4.1 billion) and fully owned by Stanley Electric. The engineering division of Tianjin Stanley Electric Co., Ltd. will be separated to establish the new company at a site neighboring Tianjin Stanley Electric. The new subsidiary will be in charge of designing mainly headlights and tail lamps. It will also manufacture and sell dies for the lamps. It's expected to generate sales of JPY 2.3 billion in the initial fiscal year to end in March 2016 and JPY 2.7 billion in the next fiscal year. (From an article in the Nikkan Jidosha Shimbun on June 30, 2015)
-The Company announced that it will establish a new subsidiary to manufacture and sell automotive lighting products and electronics components in Jalisco, Mexico in March 2015. The new company, which will be called Stanley Electric Manufacturing Mexico S.A. de C.V., will have a land area of about 100,000 square meters and a floor area of about 15,000 square meters. It will be capitalized at MXN 665 million (approximately JPY 5.2 billion), of which 70 percent will be provided by Stanley Electric and 30 percent will be provided by Stanley's U.S. subsidiary, Stanley Electric Holding of America, Inc. Production is scheduled to start as early as the summer of 2016. Sales are expected to reach approximately JPY 1 billion by the fiscal year ending in March 2017 (FY 2016) and approximately JPY 3.3 billion by FY 2017. (From a press release on February 23, 2015)
Product Development
HUD module
-The Company will launch a head-up display (HUD) module using a vertically aligned liquid crystal display by 2018. This will be Stanley's first optical unit for HUDs. The HUD module features enhanced cost competitiveness with a two-color display securing high visibility. The Company is concentrating on HUD-related business, developing Micro Electro-Mechanical System (MEMS) scanner devices for HUD systems. Expecting an increase in demand for HUDs, the Company will expand its HUD business on a full-scale by applying its LED technologies. (From an article in the Nikkan Jidosha Shimbun on October 14, 2015)
Laser headlamp
-This product is a single-unit, high-beam/low-beam headlamp that uses a laser light source. Since laser light sources have very limited and narrow areas of illumination, headlamps incorporating laser light sources can be made smaller. In addition, headlamps using laser light sources give more freedom of design for the front-view and are far superior in terms of their LED super luminosity and their the long-distance range of vision.
-The Company will launch a new laser headlamp that uses a laser light source in 2017. The new headlamp will achieve a high beam range of up to 310 meters, which is about 1.7 times that of a LED headlamp. The Company has almost finished developing the expected performance of the new headlamp. From now on, the Company will increase durability and other aspects to commercialize the new product. The Company regards the new product as a next-generation headlamp system which will offer greater safety and enable early detection of obstacles in front of a vehicle, and will widely propose it to auto manufacturers. The Company has been developing laser light source as a headlamp light source following the LED. With improvements in reflection and other technologies, the new headlamp will feature increased area of illumination and other performances that are suitable for automotive headlamp systems. Only the laser light source is used to emit high beams while the laser and LED light sources are combined to emit low beams. The new headlamp has substantially increased its low beam range from 115 meters with only the LED light source to 170 meters when the laser and LED light sources are combined. (From an article in the Nikkan Jidosha Shimbun on October 25, 2014)
Rear-window lamp (Exhibited at the 2015 Tokyo Motor Show)
-The rear lamp lights up when the LED, which is placed along the edge of the plastic rear window that has been finely processed, is illuminated. Since the rear-lamp is placed at the same height as drivers coming from behind, this improves visibility and also gives more freedom of new designs for vehicles. The fine processing that is done at the curve of the window is based on the Company's proprietary technology in dies, while the LED illumination is based on light-distribution and optical guidance technology.
Road surface-illuminated signal lamp (Debuted at the 2015 CEATEC Japan)
-This lamp alerts nearby vehicles and pedestrians of the vehicle's next movement, such as backing up or stopping, by way of arrows and other marks illuminated on the surface of the road. Since this lamp gives more detailed indication of the vehicle's movements, it is hoped that it will greatly help to prevent accidents.
Unusually-shaped LCD panel unit
-This unusually shaped LCD panel unit gives more freedom of design to LCD panel units. This unit was made possible because of free-form surface laser scribe technology that enables glass to be cut as desired. As a result, the operating panel and the LCD panel can be placed closer to each other, so the entire unit can be more easily used, as well as more compact. Previously, processing the glass and the boards used in LCD panel units for automotive air-conditioning systems was rather difficult, so almost all of the panels were rectangular, limiting the freedom of design of the display panels.
R&D Activities
-The Company pursues "the five values of light", which are creating light, detecting and recognizing through light, freely obtaining information through light, making use of light energy, and rendering a scene with light.
-Advancing and integrating core technologies (light distribution, design, CAE, circuits, control, light source, process innovations)
-Major areas of R&D activities:
- Opto-electronics: High-output white LED, high-output red/infrared LED, high-speed/highly sensitive image sensors
- Displays: ultra-high contrast LCD, fiber micro scanner, display drive circuit
- Light source/lighting: automotive lighting, LED road-surface lighting devices, interior lighting devices, lighting drive circuits/power sources
- Software/CAE technology: light-distribution simulator, tools for measuring the optimum shapes of optical devices
- Materials and processing technology
- Styling and design of products
- Products in which the above devices and technology have been integrated
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
Overall | 5,527 | 5,513 | 5,346 |
Automotive products | 3,335 | 3,044 | 2,367 |
Electronic Components | 1,462 | 1,794 | 2,476 |
Applied Electronic Products | 699 | 578 | 361 |
Others | 30 | 95 | 141 |
R&D Facilities
Name of Facilities | Location |
Research & Development Laboratory | Yokohama City, Kanagawa Pref., Japan |
Utsunomiya Technical Center | Utsunomiya City, Tochigi Pref., Japan |
Yokohama Technical Center | Yokohama City, Kanagawa Pref., Japan |
Opto Technical Center | Yokohama City, Kanagawa Pref., Japan |
-Established Tianjin Stanley Electric Technology Co., Ltd. in August 2015, in China, which will design and develop automotive lamps.
Technology Licensing-in Agreement |
(As of Mar. 31, 2016) |
Partner | Technology | Period |
Nichia Corporation | Patent on White LED | Validity period of the patent |
OSRAM GmbH | Patent on White LED | Validity period of the patent |
Technology Licensing-out Agreement |
(As of Mar. 31, 2016) |
Partner | Content | Term |
Thai Stanley electric Public Co., Ltd. (Thailand) | Technology related to automotive lamps | April 1, 2015 - March 31, 2018 |
SL Lighting Corporation (Korea) | Technology related to automotive lamps | April 1, 2014 - March 31, 2017 |
Lumax Industries Ltd. (India) | Technology related to automotive lamps | April 1, 2016 - March 31, 2017 |
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
Overall | 39,003 | 38,834 | 27,652 |
-Automotive products | 29,408 | 28,531 | 19,054 |
-Electronic Components | 1,353 | 3,413 | 2,918 |
-Applied Electronic Products | 5,192 | 3,012 | 1,998 |
-Others | 580 | 125 | 31 |
-The Company plans to spend JPY 44,000 million in capital investments in the fiscal year ending in March 2017.
Planned Capital Investment |
(As of Mar. 31, 2016) |
Company name Site name |
Type of facility | Planned investment (in million JPY) |
Start | Planned completion |
Stanley Electric Manufacturing Mexico S.A. de C.V. (Lago de Moreno, Jalisco, Mexico) |
Facilities for automobile products | 6,140 | Jun. 2015 |
Aug. 2016 |
Wuhan Stanley Electric Co., Ltd. (Wuhan, Hubei Province, China) |
Facilities for automobile products | 7,510 | Jan. 2012 |
Aug. 2016 |
Outlook for FY ending Mar. 31, 2017 |
(in million JPY) |
FY ending Mar. 31, 2017 (Forecast) |
FY ending Mar. 31, 2016 (Actual Results) |
Rate of Change (%) |
|
Overall | |||
Sales | 410,000 | 404,148 | 1.4 |
Operating income | 41,500 | 36,774 | 12.8 |
Ordinary income | 43,500 | 39,402 | 10.4 |
Net income | 27,500 | 25,537 | 7.7 |
Automotive Equipment | |||
Sales | 315,500 | 312,780 | 0.9 |
Operating income | 24,100 | 21,185 | 13.8 |
Electronic Components | |||
Sales | 36,300 | 30,504 | 19.0 |
Operating income | 7,100 | 5,602 | 26.7 |
Applied Electronic Products | |||
Sales | 58,000 | 59,879 | (3.1) |
Operating income | 7,800 | 6,837 | 14.1 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
The Fifth Medium-term Three Year Business Plan (April 2014 through March 2017)
1. Setting up a System for Managing Cash-flow | -All Group companies are to generate cash regardless of what environmental circumstances they face, creating a framework to make effective use of the cash they created for the future growth of the Group. -Maximize cash generated through sales activities and enhance corporate value based on a solid financial structure. |
2. Growing and Expanding into New Business Areas | -Raise the level of market information, and the analysis of such, to stay ahead of future developments. -Effectively execute schemes for “company-wide innovation” that is the basis of creating new products and businesses. |