Univance Corporation Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in million JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of
Sales 64,624 64,184 0.7 -
Operating income 1,462 287 409.4 -Incomes grew because of streamlining operations and favorable currency translation.
Ordinary income 1,805 732 146.6 -
Net income 1,653 416 297.4 -
Control-unit Business
Sales 36,166 32,402 11.6 -Sales increased because the Company sold more 4WD devices for SUVs, as a result of new orders.
Operating income 1,304 724 80.1 -In addition to greater sales, streamlining operations and favorable currency translation supported the year-on-year rise in income.
Parts Business
Sales 28,390 31,441 (9.7) -Even though sales of parts for CVTs were strong, sales overall fell because of customers' launching their own in-house production.
Operating income 69 (477) - -Streamlining operations and favorable currency translation supported profitability at the parts business, in spite of costs that were incurred for enhancing operations overseas.

Management Policy

-In anticipation of the future, the Company is taking steps to strengthen its competitive advantages by developing products that lower fuel consumption to better respond to environmental needs, following the directives set under its management plan, the Univance Production Way, that calls for producing numerous products in small lots at low cost; and developing technologies. In addition, the Company is re-assigning its management resources to more effectively utilize them, while enhancing both its product competitiveness and its profit structure.
  • Develop more cost-competitive products by making better use of the Company's core technologies so as to grow the business
  • Strengthen and expand operations at three locations outside Japan, which are North America, Indonesia, and Thailand.
  • Reorganize business operations/plants in Japan and optimize management resources.

Outlook for FY ending 2015

(in million JPY)
  FY ending Mar. 31, 2015
FY ended Mar. 31, 2014
(Actual Results)
Rate of Change
Sales 65,200 64,624 0.9
Operating income 1,000 1,462 (31.6)
Ordinary income 950 1,805 (47.4)
Net income 500 1,653 (69.8)

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


R&D Expenses

(in million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 1,430 1,371 1,457
Ratio in total sales (%) 2.2 2.1 2.1

R&D Structure

-R&D activities at the Company are mainly carried out by the Product Development Division. 100 employees have conducted R&D activities, which accounts for approximately 6.0% of the Group's workforce as of the end of March 2014.

R&D Activities

1) Control-unit Business
-The Control-unit Business follows the three policies outlined below, which form the common basis for all R&D activities performed at the Company. This Business develops new products that optimize the high level of technology that the Company has in the area of control, working to create cost competitive products.
  • Pursuit of greater functionality based on a high level of mechatronics.
  • Pursuit of products and product-creation designed to best suit each region
  • Pursuit of both environmental performance and competitive pricing.
<4-Wheel Drive Systems>
-In order to become more competitive in the transfer unit market, the Company's major line of business, the Company is developing lighter and more compact systems, while at the same time increasing its product range. It is focusing on transfer units for use in small pick-up trucks and SUV, which is a market segment that is growing worldwide.

<Manual Transmissions>
-The Company is developing new transmissions for SUV, as well as for small- and medium-duty commercial vehicles. (Transmissions are its major products.) It is doing this by focusing on improving vehicle fuel efficiency, reducing emissions so as to meet environmental standards, and easing the burden on drivers behind the wheel.

-The Company is also strengthening its activities in engineering deceleration systems that can be equipped on various types of hybrid electric and electric vehicles.

2) Parts Business
-The Company conducts R&D activities on intermediate gearboxes, which are steering parts for compact cars, and on manual-steering gearboxes.

-The Company is developing high-accuracy components for continuously variable transmissions in order to improve fuel economy and reduce drivers' burden.

-Going forward, in order to raise the competitive advantages of its products, the Company always works under an R&D policy that requires creating materials, production methods, and elemental design technology. In this regard, the Company is working mainly on its core product lines such as gearwheels, transmission axes, and companion flanges. In addition, the Company is producing products and materials in countries outside Japan so as to increase its local production volume overseas.

Development Plan

Commercializing new dual clutch automatic transmission by 2015
-The Company is poised to commercialize a new dual clutch automatic transmission by 2015. The Company is developing a compact, lightweight unit by using its expertise in the areas of drive systems such as manual transmissions and all-wheel drive transfers. Compared to general automatic transmissions and continuously variable transmissions (CVTs), a dual clutch transmission offers a higher transmission efficiency and fuel saving capability. Univance will leverage its know-how accumulated through this development project in engineering decelerators for electric vehicles as well, aiming to expand its product portfolio. (From an article in the Nikkan Jidosha Shimbun on Jun 5, 2013)

Investment Activities

Capital Expenditure

(in million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Control-unit Business 2,026 1,981 2,301
Parts Business 1,946 2,001 2,676
Others 7 2 74
Total 3,980 3,986 5,052

-The Company made capital investments mainly to launch new operations and to enhance its production facilities so as to increase production capacity.

Planned Capital Investment

(As of Mar. 31, 2014)
Planned amount
(in million JPY)
Details and objectives
Control-unit Business 671 Facilities for machine processing and starting new launch
Parts Business 4,159

Facilities for machine processing and starting new launch

Total 4,831