[Gen-AI Analysis] Nabtesco Corporation Business Report FY ended 2013 - MarkLines Automotive Information & Gen-AI Platform

Nabtesco Corporation Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Sales	179,543	198,527	(9.6)	-
Operating income	15,013	22,858	(34.3)	-
Ordinary income	17,890	24,656	(27.4)	-
Current net income	13,269	14,756	(10.1)	-
Transport Equipment Business
Sales	44,262	48,289	(8.3)	-The increased demand for trucks in developing countries contributed to the increased sales volume.
Operating income	4,214	6,068	(30.6)	-

Recent Development Outside Japan

<India>
-The Company announced that it has signed an agreement with N K Minda Group, an Indian automotive supplier, to establish a new joint venture in India in January 2013. The new company "Minda Nabtesco Private Limited" will design, manufacture, and sell brake parts for commercial vehicles as well as clutches for passenger cars for supplying to local automakers. Capitalized at 373 million rupees, approximately 570 million yen, the joint venture will be owned 49 percent by the Company and 51 percent by N K Minda Group. (From a press release on December 7, 2012)

Outlook for FY ending Mar. 31, 2014 (Transport Equipment Business)

(in millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Sales	48,700	44,262	10.0
Operating income	5,300	4,214	25.8

Mid-term Management Plan

-In 2012, the Company announced its latest mid-term management plan, Global Challenge: Advance to the Next Stage, which covers the period from the fiscal year ending March 2012 (i.e., starting April 2011) to that ending March 2014. Under the plan, the Company will strengthen and enhance its operations overseas in expanding its global activities. In addition, by strengthening its operations in Japan as its core area of operations, it aims to become a leading, global company capable of surviving the current, extreme competition and working to ensure it permanently enhances its corporate value. The basic objectives of the management plan are as follows:

Sales: 240 billion by fiscal year ending March 2014
Operating profit: 31.3 billion yen by fiscal year ending March 2014 (Operating profit margin of 13.0%)
R&D expenses: 15 billion yen accumulative total over 3 years
Capital investments in facilities and equipment: 38 billion yen accumulative total over 3 years
Financial investment to grow the business: 30 billion yen accumulative total over 3 years (includes forming Group companies and commercial alliances, and conducting M&A, etc.)

R&D

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	5,535	5,200	3,911
Transport Equipment Business	1,828	1,905	1,587

-During the fiscal year that ended March 2012, the Company's major achievement was successfully developing a series of electrically operated, automotive vacuum-pumps.

R&D Structure

-The Technical Headquarters, as the lead overseer of R&D activities, conducts some of the activities such as planning and execution that are left to each of the separate businesses and subsidiaries.