Univance Corporation Business Report FY ended Mar. 2018

Financial Overview

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 Rate of
Sales 58,729 60,024 (2.2) -
Operating income 810 1,130 (28.4) -Income at the unit business fell because of lower sales in Japan and increased costs incurred to launch the production of new products in Japan and Asia.
-Income at the parts business fell because of cost increases incurred to establish the home office in Japan.
Ordinary income 518 78 557.7 -
Net income attributable to owners of the parent 356 (398) -

R&D Expenses

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 1,337 1,124 1,161
Ratio in total sales (%) 2.3 1.9 1.8

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 76, or 4.1% 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.

Capital Investment Amounts

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Parts Business 1,674 1,306 1,960
Control-unit Business 1,488 4,063 3,401
Others 34 31 6
Total 3,197 5,402 5,367

Planned Capital Investment

-The breakdown in capital investments in the fiscal year that ended in March 2018 (JPY 4.4 million) is provided below.

  • Parts business: JPY 2.8 million
  • Unit business: JPY 1.6 million