Stanley Electric Co., Ltd. Business Report FY ended Mar. 2017
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 388,560 | 404,148 | (3.9) | -Developed products that ideally met global market needs -Strengthened management capabilities and enhanced productivity to win greater product orders. -Totally removed all inefficiencies from production processes and back-office functions, raising productivity through implementing totally innovative production operations. |
| Operating income | 42,305 | 36,774 | 15.0 | |
| Ordinary income | 45,720 | 39,402 | 16.0 | - |
| Net income | 28,685 | 25,537 | 12.3 | - |
| Automotive products | ||||
| Sales | 308,176 | 312,780 | (1.5) | -Sales were lower year-over-year (y/y) due to the effect of negative currency translation because of the high valuation of the yen, in spite of the fact that there temporary higher sales due to unifying the dies accounting processing in the Americas. |
| Operating income | 26,034 | 21,185 | 22.9 | -Operating income increased due to increased content ratio on more vehicle types, of LED headlamps that are seamlessly produced starting from the light sources; and a reduction in temporary expenses incurred last year. |
| Electronic Components | ||||
| Sales | 28,745 | 30,504 | (5.8) |
-Sales were lower because sales volumes of LEDs and automotive lamps for the game, AV, and industrial equipment markets decreased.-Operating income rose because sales of LEDs used as light sources in LED headlamps increased. |
| Operating income | 6,674 | 5,602 | 19.1 | -Operating income rose because sales of LEDs used as light sources in LED headlamps increased. |
| Applied Electronic Products | ||||
| Sales | 51,347 | 59,879 | (14.2) | -Sales and income were lower because sales of PC backlights and strobes decreased, even though internal sales of electronic circuit boards used in light sources and controls for LED light bodies increased. |
| Operating income | 6,684 | 6,837 | (2.2) | |
Investments Outside Japan
-Thai Stanley Electric revealed that it is expecting 16.30% sales growth or at THB 11.65 billion and profit at THB 1.48 billion in FY2018 (April 2017 – March 2018). The factor that contributed to the growth is the growth of production in automotive industry of 1-3% to 1.95-2 million units from 2016 from the recovery of Thai economy and launch of new models. However costs of production are likely to increase from defect products of new models after it had received new orders for Isuzu Mu-X, Honda CR-V, Honda Scoopy I, and Yamaha QBIX. (From a Khao Hoon article on July 7, 2017)
Product Development
HUD module
-The Company will develop a new head-up display (HUD) module for lower grade model-use by around 2017. The new module will have a reduced parts count by having minimum display functions. The company will bring the cost of the new module down to half of that of existing HUD modules. The new product will offer high visibility by adopting the company's proprietary high-luminance backlight and LCD technologies. While luxury cars in particular are increasingly equipped with HUDs, the company will promote the new module at an affordable price primarily for Japanese OEMs' models to receive more orders. The new module for HUD systems is a passive-matrix color PBTLCD module that displays driving speed and other information on a compact screen (combiner). Passive-matrix LCDs can display less contents than full-color TFT LCDs. On the other hand, passive-matrix LCDs use less materials like glass and insulator films and enable substantial cost reduction. Passive-matrix LCDs have been used in electronic calculators and instrument panels. The company will apply it to HUDs for the first time to support practical implementation of low-priced HUDs. (From an article in the Nikkan Jidosha Shimbun on October 7, 2016)
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, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Overall | 13,800 | 5,527 | 5,513 |
| Automotive products | 9,290 | 3,335 | 3,044 |
| Electronic Components | 2,802 | 1,462 | 1,794 |
| Applied Electronic Products | 1,389 | 699 | 578 |
| Others | 318 | 30 | 95 |
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, 2017) |
| 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, 2017) |
| 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, 2017 - September 30, 2017 |
| Lumax Industries Ltd. (India) | Technology related to automotive lamps | April 1, 2017 - March 31, 2018 |
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Overall | 34,440 | 39,003 | 38,834 |
| -Automotive products | 26,058 | 29,408 | 28,531 |
| -Electronic Components | 2,699 | 1,353 | 3,413 |
| -Applied Electronic Products | 3,625 | 5,192 | 3,012 |
| -Others | 8 | 580 | 125 |
| -Company-wide (Fundamental testing research and systems that link management functions) |
2,048 | 2,469 | 3,749 |
-The Company plans to spend JPY 44,690 million in capital investments in the fiscal year ending in March 2018.
Outlook for FY ending Mar. 31, 2018 |
(in million JPY) |
| FY ending Mar. 31, 2018 (Forecast) |
FY ended Mar. 31, 2017 (Actual Results) |
Rate of Change (%) |
|
| Overall | |||
| Sales | 398,000 | 388,560 | 2.4 |
| Operating income | 46,800 | 42,305 | 10.6 |
| Ordinary income | 50,400 | 45,720 | 10.2 |
| Net income | 32,000 | 28,685 | 11.6 |
| Automotive Equipment | |||
| Sales | 320,000 | 308,176 | 3.8 |
| Operating income | 29,000 | 26,034 | 11.4 |
| Electronic Components | |||
| Sales | 30,200 | 28,745 | 5.1 |
| Operating income | 8,400 | 6,674 | 25.9 |
| Applied Electronic Products | |||
| Sales | 44,700 | 51,347 | (12.9) |
| Operating income | 8,100 | 6,684 | 21.2 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Fifth Three-year Mid-term Management Plan (April 2108-March 2020)
| Targets | FY ended March 2017 (Actual) |
FY ending March 2018 (Targeted) |
|
| ROE | 15% | 9.4% | 10.3% |
| FY ending March 2018 (Targeted) | 20% | 20.9% | 19.6% |
| Total return ratio | 35% | 34.8% | 35.0% |