Aisan Industry Co., Ltd. Business Report FY ended Mar. 2017

Financial Overview

(in millions of JPY)

FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of Change (%) Factors
Sales 203,769 215,360 (5.4) 1)
Operating income 8,159 9,854 (17.2) -
Ordinary income 7,407 9,349 (20.8) -
Net income 4,505 6,208 (27.4) -

-Sales and income in the fiscal year that ended in March 2017 were lower y/y due to an decrease of revenue and profits by production transfer from Japan to overseas.
-Business results were higher in Asia, while they were lower in Japan, North America and Europe by impact of foreign exchange rate.

1) Sales

-Since sales of fuel pump module,canister and injector were decreased, overall sales for the year were decreased by 5.4%.

  • Japan: sales were 9.2% lower y/y due to lower sales of fuel pump modules, injectors and throttle body.
  • Asia: sales were 1.1% higher y/y due to increased sales of EGR cooler by-pass valves
    and fuel-pump modules.
  • America: sales were 8.8% lower y/y due to decreased sales of canisters and fuel-pump modules.
  • Europe: sales were 3.9% lower y/y due to decreased sales of fuel pump modules.

Major policies for FY 2017

-Focus on "strengthening product development", "innovating product creation" and "strengthening profit structure".

Expanding core products
Evaporation emission control: canisters

  • Expand sales of canisters that comply with the strict environmental regulations in the USA and China.
  • Expand production facilities that make use of current production lines

Exhaust systems: EGR valves

  • Develop large-capacity EGR systems that boast higher response and sealing performance.
  • Take advantage of the expanding market of diverse new models achieving better fuel efficiency and products that meet customer needs.

Exhaust systems: throttle bodies

  • Expand product range and at least maintain or increase top global market share.
  • Expand production facilities that make use of current production lines.

Exhaust systems: core electronic parts

  • Develop and manufacture core electronic parts in-house.
  • Standardize more parts for throttle bodies and EGR valves as soon as possible.

Fuel systems: fuel pumps and modules

  • Work to save electric power by abandoning pumping, in order to save fuel.

Innovating product creation
Advance technology on facilities and equipment
Make optimum use existing facilities
Make structural changes to products and processes through new production methods

Product development
Evaporation emission control: canisters

  • Develop more compact products and systems that comply with global regulations based on those of the USA and China.

Intake & exhaust systems: Sub-systems

  • Work on developing mainly EGR values that have higher response and sealing performance
  • Develop technology that maintains discharge rate that can respond to supercharging
  • Develop insulation technology

Fuels (LPG, CNG, FCV)

  • Expand scope of FCV products
  • Expand to other than hydrogen supply systems

Strengthening R&D capabilities: Establish Hirose Technical Center

  • Strengthen fundamental development skills, consolidate facilities for evaluating fuel-system durability; and unify and enhance efficiency by locating the Center nearby production plants.

Strengthening R&D capabilities: expand system conformity business

  • Improve environmental features and fuel efficiency, working as a partner developing new vehicle models with OEMs.
  • Further develop system conformity and timely respond to growing needs.

Regional growth strategy

  • Strengthen profitability in the USA
  • Expand and ensure stability of Mexico


  • Increase sales of canisters


  • Increase sales of fuel injection products for two-wheelers

Outlook for FY ending Mar. 31, 2018

(in millions of JPY)

FY ended Mar. 31, 2018
FY ended Mar. 31, 2017
(Actual Results)
Rate of
Change (%)
Sales 205,000 203,769 0.6
Operating income 8,800 8,159 7.8
Ordinary income 8,800 7,407 18.8
Net income 5,600 4,505 24.3


-Prediction of lower sales and income based on an exchange rate of USD 1=JPY 105.

Medium-term Management Plan

Management goal index
-Group consolidated net sales and operating profit of each 250 billion JPN and 15 billion JPN are
listed as medium-term management goal with the target of over 10% ROE.

Business strategy
-By assessing market trend and technology trend accurately, attempt to accurately business expansion in growth area and fields by working on development of new business fields by utilizing core technologies.

Strengthening competitiveness of products development・manufacturing
-With further refining of core products and technologies of valves, pumps, motors and sensors
which have been developed over many years, promote development of the next generation/ future products and the products for electrification of the automobile with the efforts of strengthening costs competitiveness aiming a half of the costs.

Strengthening gruop management foudation
-Strengthening management foundation with enrichment of corporate governance of the entire group for better profit structure by efficient and effective resource utilization through
work style reform.

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

R&D Expenditure

(in millions of JPY)

FY ended Mar. 31, 2017 2016年3月期 2015年3月期
Overall 10,922 10,854 10,337
-Japan 10,052 9,969 9,695
-Asia 870 885 642

R&D Activities

-Strengthen development of products that lower fuel consumption and exhaust gas emissions, as well as further improve performance, safety, and comfort.

  • Lower fuel consumption and exhaust gas emission:
    -launched production of DC motor EGR valves corresponding to all flow rate, response and sealability at high dimension required to EGR valves for flow control of EGR system.
    -Lower exhaust gas emissions: launched production of canister that complies with Euro 6 emission regulation in Europe addition to the North American LEV III regulations, and
    comply with stricter Chinese regulations in the future.
  • Strengthening development of the products meeting performance improvement, safety
    and comfortability.

Capital Expenditure

(in millions of JPY)

FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 12,738 15,884 13,280

-Investment of JPY 6,519 million in Japan, and JPY 6,219 million outside Japan.
-In Japan, investment of JPY 1,079 million to strengthen capabilities for developing systems and future products for next-generation vehicle models, including JPY 563 million in the Hirose Technical Center building.

Capital Investment by Product

(in millions of JPY)

Product Fuel-pump modules Throttle bodies Canisters Engine values EGR vaules Total
Amount 2,925 841 1,236 1,756 1,340 8,098

Capital Investment by Region

(in millions of JPY)

Region Japan Asia Americas Europe Total
Amount 3,136 2,912 1,484 566 8,098

Planned Capital Investment

Plant name
Type of facility or project Planned amount of investment
(in millions of JPY)
Project period
From To
Headquarters Plant
(Aichi, Japan)
Facility manufacturing EGR valves 949 Oct.
Anjo Plant
(Aichi, Japan)
Facility manufacturing throttle bodies 686 Jul.
Facility manufacturing engine values 297 Apr.
Facility manufacturing canisters 238 Feb.
Toyota Plant
(Aichi, Japan)
Testing facilities at the Hirose Technical Center 632 May
Facilities to manufacture fuel-pump modules 1,763 Feb.
Franklin Precision Industry, Inc.
(Kentucky, U.S.)
Facilities to manufacture throttle body 724 Oct.

Facilities to manufacture canisters 610 Oct.



Aisan Auto Partes Mexico, S.A. de C.V.
(San Luis Potosi, Mexico)
Facilities to manufacture throttle bodies 259 Jan.
Facilities to manufacture engine valves 902 Aug.
Aisan Industry Czech s.r.o. Facilities to manufacture fuel-pump modules 462 Apr.