Aisan Industry Co., Ltd. Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of
Change (%)
Factors
Overall
Sales 192,944 170,298 13.3

1)

Operating
income
9,475 7,986 18.6 -
Ordinary income 9,915 8,177 21.3 -
Net income 5,562 (783) - -

Factor
1) Sales
-Overall sales increased thanks to a rise in sales of fuel pump modules, throttle bodies and canisters.

<Japan>
-Sales decreased 2.1 percent year-on-year due to a decrease in demand for intake shutters.

<Asia>
-Sales increased 35.5 percent year-on-year thanks to greater sales of fuel pump modules and throttle bodies.

<North America>
-Sales increased 34.1 percent year-on-year thanks to greater sales of canisters and throttle bodies.

<Europe>
-Sales increased 51.3 percent year-on-year thanks to greater sales of fuel pump modules.

Breakdown of Sales by Product

(in millions of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
EFI Products 116,079 97,273 85,439
-Fuel pump modules 60,237 48,853 42,335
-Throttle bodies 37,821 31,493 28,448
-Air induction modules 7,654 6,660 6,336
-Injectors 6,936 7,097 5,808
-Others 3,429 3,167 2,510
Canisters 25,445 22,279 17,513
Engine valves 10,244 9,985 9,433
Carburetors 1,418 1,593 2,186
Other 33,274 33,251 29,549
Sub-Total 186,461 164,383 144,122
Non-automotive 6,482 5,915 5,769
Total 192,944 170,298 149,892

 

New Plant

<Korea>
-The Company and Chungcheongnam-do have signed an agreement that Aisan Industry would establish a new plant in Cheonan City. The company is going to invest USD 35 million in the new factory with a land area of 6,100 square meters. The facility is scheduled to be completed by the end of 2014, planning mass-production launch at the beginning of 2015. (From a press release, June 4, 2013)

Contracts

Supply CNG fuel injection system to a petrol-CNG bi-fuel version of the Toyota Corolla
-The Company aims to be a Compressed Natural Gas (CNG) fuel injection system supplier. Aisan Industry has started supplying injectors, fuel rails and regulators for a petrol-CNG bi-fuel version of the Toyota Corolla, which was released in Thailand in January 2014. Aisan Industry produces these parts in Japan and Indonesia and supplies them to Toyota in Thailand. The Company plans to develop the electronically- controlled fuel injection system itself on its own and propose it to Toyota and non-Toyota automakers. (From an article in the Nikkan Jidosha Shimbun on February 14, 2014)

Developed and received the first order for injectors exclusive for a Japanese automaker's new FCV
-The Company will enter the fuel cell vehicle (FCV) parts market. The company has developed and received the first order for injectors and valves exclusive for a Japanese automaker's new FCV, which will be released in the fiscal year ending in March 2016 (FY 2015). The injectors and valves reduce the pressure of compressed hydrogen and send the gas to the FCV's fuel cell stacks. Aisan Industry will start producing the parts at its Honsha plant located at the headquarters in Ofu, Aichi Prefecture, when the automaker starts mass production of the new FCV. The company also plans to develop and propose other next-generation systems for mass-market models of FCVs which will be released around 2020. By focusing on the FCV parts business, the company intends to demonstrate its capacity in the field of environmental technology. (From an article in the Nikkan Jidosha Shimbun on January 22, 2014)

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

R&D

R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 9,660 8,482 7,375

R&D Activities

-The Company is further strengthening its R&D capabilities in the area of fuel efficiency and in products designed for emerging markets.

-Main R&D Achievements in FY ended Mar. 2014;
  • The Company started mass-producing plastic intake manifolds in response to the introduction of EGR systems that reduce fuel consumption.
  • In supporting energy diversification, the Company began mass-producing fuel pumps and PCV valves that can be used on flexible fuel vehicles.
  • The Company started mass-producing gaseous fuel supply systems for bi-fuel vehicles that can run on either gasoline or CNG. These products are supplied to the Asian market.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 13,006 10,113 9,285

Plans for New Facilities

Plant name
(Location)
Type of facility or project Planned amount of investment
(in million JPY)
Project period
From To
Headquarters Plant
(Aichi, Japan)
Facility manufacturing EGR valves 635 Aug.
2013
Jan.
2015
Anjo Plant
(Aichi, Japan)
Facility manufacturing engine valves 538 Apr.
2013
Mar.
2015
Facility manufacturing throttle bodies 630 Jul.
2013
Mar.
2015
Facility manufacturing canister 140 Mar.
2013
Mar.
2015
Toyota Plant
(Aichi, Japan)

Facility manufacturing fuel pump modules

1,470 Jan.
2013
Mar.
2015

Facility manufacturing injectors

318 Jul.
2013
Mar.
2015
P.T. Aisan Nasmoco Industrial
(Indonesia)

Facility manufacturing injectors

873 Jul.
2013
Dec.
2014
Franklin Precision Industry, Inc.
(USA)

Facility manufacturing throttle bodies

257 May
2013
Mar.
2014
Aisan Industry Czech s.r.o.
(Czech Republic)

Facility manufacturing throttle bodies

209 Oct.
2013
Dec.
2014