Univance Corporation Business Report FY ended Mar. 2017

Financial Overview

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of
Sales 60,024 63,087 (4.9) -
Operating income 1,130 160 606.3 -Operating income increased due to effective streamlining initiatives and reductions in production losses, although sales in Japan decreased for the year.
Ordinary income 78 (348) - -
Net income attributable to owners of the parent (398) (604) - -
Control-unit Business
Sales 32,917 35,938 (8.4) -
Operating income (367) 320 - -The Company incurred an operating loss due to lower sales generated by Japanese operations, production losses, and delays in implementing streamlining initiatives.
Parts Business
Sales 27,045 27,078 (0.1) -
Operating income 1,419 (250) - -Although sales generated by Japanese operations were lower for the year, operating income increased because of higher sales generated by operations outside Japan, effective streamlining initiatives, reductions in production losses, and favorable changes to the product lineup.


-The Company received the Excellence in Technology Development Award from Hino Motors. The award was given in recognition of the company's excellence in developing a transfer unit for Hino's mid-size plug-in hybrid bus that can be utilized as an emergency power-supply unit during disasters. Hino was able to develop the transfer unit that meets various performance and quality requirements in a short period of time. (From a press release on June 10, 2016)
-The Company announced that it has received the Best Partner Award from Suzuki Motor Corporation in recognition of its outstanding contribution to the OEM in 2015. The award was presented at Suzuki's New Year business meeting held on January 6, 2016. (From a press release on June 10, 2016)

Outlook for FY ending Mar. 2018

(in million JPY)
FY ending Mar. 31, 2018
FY ended Mar. 31, 2017
(Actual Results)
Rate of Change
Sales 57,000 60,024 (5.0)
Operating income 1,000 1,130 (11.6)
Ordinary income 800 78 913.8
Net income attributable to owners of the parent 700 (398) -

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

R&D Expenses

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 1,124 1,161 1,359
Ratio in total sales (%) 1.9 1.8 2.1

R&D Structure

-R&D activities are mainly conducted by the Product Development Department. As of March 2017, the number of individuals working in R&D was 87, or 4.9% of the workforce.

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 high value-added 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.

-The Company is developing new manual transmissions for vans, as well as for small- and medium-duty commercial vehicles. It is doing this by focusing on improving vehicle fuel efficiency, reducing emissions so as to meet environmental standards, complying with high-output engines and easing the burden on drivers behind the wheel.
-The Company enhanced R&D activities to develop reduction gears to meet various layouts on hybrid vehicles and electric vehicles.

-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 pick-up trucks and SUVs (Sports utility vehicles), CUVs (Cross over utility vehicles) which is a market segment that is growing worldwide.

2) Parts Business
-The Company is developing high-accuracy components for CVT (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.

Product Development

Light weight next generation transfer unit
-The Company has started the development of a next-generation transfer unit for large all-wheel drive (AWD) vehicles like SUVs and pickup trucks. The Company is aiming to make the next-generation transfer unit 20% to 30% lighter than current products. It is considering large-scale replacement of materials, including the partial use of plastics in the transfer case. The Company will step up the promotion of the next-generation product to OEMs, with the aim of launching supply around 2021. Large AWD vehicles enjoy strong global demand and there is a growing need for eco‐friendly models. The Company intends to substantially reduce the weight of the transfer unit, a core drive train component, in an effort to enhance the competitiveness of its product. (From an article in the Nikkan Jidosha Shimbun on July 20, 2016)

Capital Investment Amounts

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Control-unit Business 4,063 3,401 1,832
Parts Business 1,306 1,960 2,563
Others 31 6 6
Total 5,402 5,367 4,402