Stanley Electric Co., Ltd. Business Report FY ended Mar. 2018

Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2018	FY ended Mar. 31, 2017	Rate of Change (%)	Factors
Overall
Sales	442,165	388,560	13.8	-Sales and operating income of the automotive equipment increased due to an increase in the sales of LED headlamps. The Company conducts integrated production of LED headlamps from light source.
Operating income	53,169	42,305	25.7
Ordinary income	57,657	45,720	26.1	-
Profit for the year attributable to owners of the parent	36,008	28,685	25.5	-

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

Product Development

Next-generation lamp system
-The Company develops a next-generation passing lamp system that automatically warns of the presence of vehicles at intersections during the night. The lamp system will check GPS data against map data to determine vehicle positions and automatically emit light when approaching locations like low visibility intersections. It will signal the approach of the vehicle to surrounding vehicles and pedestrians to prevent accidents. Stanley Electric envisions the system being used for autonomous vehicle-to-vehicle communications. The company aims to commercialize the lamp system by 2020.

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2018	FY ended Mar. 31, 2017	FY ended Mar. 31, 2016
Overall	16,330	13,800	5,527
Automotive products	10,318	9,290	3,335

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

Technology Licensing-in Agreement

(As of Mar. 31, 2018)

Partner	Technology	Period
OSRAM GmbH	Patent on White LED	Validity period of the patent

Technology Licensing-out Agreement

(As of Mar. 31, 2018)

Partner	Content	Term
Thai Stanley electric Public Co., Ltd. (Thailand)	Technology related to automotive lamps	April 1, 2018 - March 31, 2021
SL Lighting Corporation (Korea)	Technology related to automotive lamps	April 1, 2017 - March 31, 2022
Lumax Industries Ltd. (India)	Technology related to automotive lamps	April 1, 2018 - March 31, 2019

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2018	FY ended Mar. 31, 2017	FY ended Mar. 31, 2016
Overall	32,700	34,440	39,003
-Automotive products	20,832	26,058	29,408

Planned Capital Investments

-As part of the Company's production innovation activities, its Okazaki Factory in aichi Pref., producing automotive lamps, was restructured and a new plant building is being built at Asian Stanley International Co., Ltd., in Thailand, producing electronic components.