Futaba Industrial Co., Ltd. Business Report FY ended Mar. 2018
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 440,446 | 412,383 | 6.8 | - |
| Operating income | 11,258 | 8,976 | 25.4 | - |
| Ordinary income | 10,955 | 7,542 | 45.3 | - |
| Net income attributable to owners of the parent | 10,721 | 4,806 | 123.1 | - |
| Sales by segment | ||||
| -Japan | 239,697 | 222,819 | 7.6 | - |
| -North America | 103,196 | 100,401 | 2.8 | - |
| -Europe | 26,283 | 23,475 | 12.0 | - |
| -Asia | 71,268 | 65,687 | 8.5 | - |
New 5 year management plan (FY ending Mar. 2017 - FY ending Mar. 2021)
-In May 2016, the Company mapped out its 5 year management plan that covers the period between FY ending Mar. 2017 and FY ending Mar. 2021. The Company aims to increase its annual sales to JPY 440,000 million and raise its operating margin to 3.5%. Basic policy and major objectives are followings:
| Basic Policies |
| 1. Enforcement of the basics of "Safety, Quality, and MONOZUKURI (manufacturing) " |
| 2. Structural reformation and reinforcement of the cost management to secure a stable income. |
| 3. Optimization of facilities and effective allocation of management resources |
| 4. Further development of core technologies and application to new business fields |
| 5. Reinforcement of human resources development and organizational power |
| Objectives and Initiatives of 5 year management plan |
| Objectives | Initiatives |
| Enhance innovative capabilities for major products | -Exhaust products: strengthen development capabilities for systemized products |
| -Body products: enhance SE capabilities and manufacturing creativity | |
| -Expand innovative production lines globally | |
| Expand exhaust parts globally | -Expand sales of exhaust parts in North America and China, which comply with regulations on fuel efficiency, exhaust emissions, and noise. |
| Respond to needs for safer and lighter body parts | -Establish technology for ultra high-tensile, hot stamping, and aluminum production technology |
| Optimize production plants | -Revise production plants by taking customers’ latest developments into consideration |
| -Improve efficiency of resourcing | |
| -Strengthen functions at supervisory companies | |
| Management reformation (Manufacturing process reformation) | -Improve efficiency by reorganizing operations, from development to production, of exhaust and body products separately. |
| Enhance initiatives on new technologies and new lines of business | -Expand hot stamping operations globally |
| -Launch initiatives to take control of currently outsourced ultra-high-tensile press processing technology | |
| -Launch business in devices promoting photosynthesis of agricultural crops |
Numerical Target of 5 year management plan |
(Unit: in hundred million JPY) |
| FY ended Mar. 2018 (Actual Result) |
FY ending Mar. 2019 (Target) |
FY ending Mar. 2021 (Target) |
|
| Consolidated sales | 4,404 | 4,200 | 4,400 |
| Consolidated operating margin (%) | 2.6 | 1.8 | 3.5 |
Outlook for FY ending 2019 |
(in million JPY) |
| FY ending Mar. 31, 2019 (Forecast) |
FY ended Mar. 31, 2018 (Actual Results) |
Rate of Change (%) |
|
| Overall | |||
| Sales | 452,000 | 440,446 | 2.6 |
| Operating income | 11,500 | 11,258 | 2.1 |
| Ordinary income | 11,200 | 10,955 | 2.2 |
| Net income attributable to owners of the parent | 8,900 | 10,721 | (17.0) |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 3,367 | 3,235 | 3,079 |
R&D Activities
-The Company has conducted various research and development activities as follows:
- Aiming to improve fuel efficiency, the Company developed lighter weight and lower cost exhaust, body, chassis, and fuel products.
- In order to improve the fuel efficiency of hybrid vehicles, the Company worked on developing exhaust-heat-recovery devices, making them higher performance, more compact, and lighter in weight.
- The Company developed heat-management systems, raising their energy efficiencies to the maximum levels possible.
- In achieving lighter weight vehicle bodies and enhancing collision-safety performance, the Company introduced hot-stamping lines that use a new production method to manufacture 1,180MPa class high-tensile steel. This is being used to develop thinner but stronger body-frame parts.
- In responding to exhaust-emission issues, the Company is developing exhaust treatment devices for gasoline-engine vehicles, which treat carbon monoxide and hydrocarbons; and for diesel-engine vehicles, it is developing devices that treat particulate matter and nitrogen oxides.
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Japan | 14,392 | 11,952 | 18,536 |
| North America | 2,618 | 1,903 | 4,183 |
| Europe | 686 | 761 | 183 |
| Asia | 2,554 | 1,712 | 3,611 |
| Total | 20,252 | 16,330 | 26,514 |
-In the fiscal year that ended in March 2018, the Company made capital investments to enhance efficiency and streamline its operations, in order to improve productivity in the auto-body (passenger-car, etc.) parts business. It also invested in production facilities (welding assembly lines, dies, and tools), in order to switch over to manufacturing new products.
Planned Capital Investments (Automotive Parts) |
(As of Mar. 31, 2018) |
| Name (Location) |
Purpose | Planned investment (in million JPY) |
Starting | Planned Completion |
| Futaba Industrial Co., Ltd. | ||||
| Head Office, Okazaki Plant (Aichi Pref., Japan) |
Production facility | 2,100 | 2016.09 | 2019.03 |
| Midori Plant (Aichi Pref., Japan) |
Production facility | 800 | 2017.02 | 2019.03 |
| Chiryu Plant (Aichi Pref., Japan) |
Production facility | 200 | 2016.10 | 2019.03 |
| Kota Plant (Aichi Pref., Japan) |
Production facility | 4,000 | 2016.10 | 2019.03 |
| R&D facility | 400 | 2018.03 | 2019.03 | |
| Building and Hot stamping facility | 1,800 | 2016.04 | 2019.10 | |
| Mutsumi Plant (Aichi Pref., Japan) |
Production facility | 3,000 | 2016.08 | 2019.03 |
| Tahara Plant (Aichi Pref., Japan) |
Production facility | 800 | 2017.05 | 2019.03 |
| Takahashi Plant (Aichi Pref., Japan) |
Production facility | 200 | 2017.11 | 2019.03 |
| Dies and jigs etc. | 11,500 | 2016.07 | 2019.03 | |
| Consolidated subsidiary | ||||
| Futaba Kyusyu Corp., Imari Plant (Saga Pref., Japan) |
Production facility | 600 | 2018.04 | 2019.03 |
| Futaba Kyusyu Corp., Miyata Plant (Fukuoka Pref., Japan) |
Production facility | 300 | 2017.07 | 2019.03 |
| Futaba Kyusyu Corp., Nogata Plant (Fukuoka Pref., Japan) |
Production facility | 600 | 2017.04 | 2019.03 |
| Futaba Hiraizumi Corp. (Iwate Pref., Japan) |
Production facility | 300 | 2018.04 | 2019.03 |
| Apics Co., Ltd. (Aichi Pref., Japan) |
Production facility | 100 | 2017.10 | 2019.03 |
| FIC America Corp. (Illinois, USA) |
Production facility | 600 | 2017.06 | 2019.03 |
| Futaba Indiana of America Corp. (Indiana, USA) |
Production facility | 800 | 2018.01 | 2019.03 |
| Futaba Industrial Texas Corp. (Texas, USA) |
Production facility | 100 | 2017.08 | 2019.03 |
| FIO Automotive Canada Corp. (Ontario, Canada) |
Production facility | 300 | 2015.03 | 2018.03 |
| Building and Hot stamping facility | 2,400 | 2016.06 | 2018.12 | |
| Futaba-Tenneco U.K Ltd. (Lancashire, UK) |
Production facility | 200 | 2017.04 | 2019.03 |
| Futaba Industrial U.K. Ltd. (Derbyshire, UK) |
Production facility | 1,200 | 2018.03 | 2019.03 |
|
Futaba Czech s.r.o. |
Production facility | 200 | 2018.03 | 2019.03 |
| Shenzhen Futaba Metal Products Co., Ltd. (Guangdong, China) |
Production facility | 100 | 2018.01 | 2018.12 |
| Tianjin Shuang Shye Mechanical Industrial Co., Ltd. (Tianjin, China) |
Production facility | 800 | 2017.02 | 2018.12 |
| Tianjin Futaba Shye Chan Mechanical Industrial Co., Ltd. (Tianjin, China) |
Production facility | 500 | 2018.01 | 2018.12 |
| Guangzhou Futaba Auto Parts Co., Ltd. (Guangzhou, China) |
Production facility | 1,400 | 2017.09 | 2018.12 |
| Chngsha Futaba Auto Parts Co., Ltd. (Hunan, China) |
Production facility | 200 | 2017.07 | 2018.12 |
| FMI Automotive Components Ltd. (Haryana, India) |
Production facility | 200 | 2017.01 | 2019.03 |
| Futaba Industrial Gujarat Pvt. Ltd. (Gujarat, India) |
Building and Production facility | 2,200 | 2017.11 | 2019.03 |
| PT. Futaba Industrial Indonesia (Bekasi, Indonesia) |
Production facility | 100 | 2017.05 | 2019.03 |