Aisan Industry Co., Ltd. Business Report FY ended Mar. 2018

Financial Overview

(in millions of JPY)

FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 Rate of Change (%) Factors
Sales 212,524 203,769 4.3 -
Operating income 9,421 8,159 15.5 Factors below
Ordinary income 9,770 7,407 31.9 -
Net income 4,526 4,505 0.5 -

-Sales and operating income in the fiscal year that ended in March 2018: Both increased in Japan and Asia; sales decreased and operating income increased in Americas; and sales increased and operating income decreased in Europe.

Operating income

  • Japan: Operating income was 0.6% higher y/y due to lower variable cost ratio as a result of a decline in the purchasing costs and the improvement in productivity.
  • Asia: Operating income was 8.4% higher y/y due to increased sales in Asian countries.
  • America: Operating income was 2.6% lower due to a decline in sales volume in the region.
  • Europe: Operating income was 3.9% lower due to a decline in sales volume in the region.

Major policies for FY 2018

-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, 2019

(in millions of JPY)

FY ended Mar. 31, 2019
FY ended Mar. 31, 2018
Rate of
Change (%)
Sales 213,000 212,524 0.2
Operating income 9,500 9,421 0.8
Ordinary income 9,500 9,770 (2.8)
Net income 5,800 4,526 28.1


-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.)

New Company

-Fiem Industries informed that it has signed a joint venture agreement' with Aisan Industry for manufacture of fuel injection system and IC connector for two-wheelers and three-wheelers for Indian market. The initial share capital of Joint Venture Company is proposed INR 1 Billion, wherein shareholding of Fiem will be 26% and of Aisan will be at least 69%. The factory of the Joint Venture will be set up in Tapukara / Salarpur Industrial Area, Rajasthan in ELCINA Electronics Manufacturing Cluster. (From a press release on March 28, 2018)

R&D Expenditure

(in millions of JPY)

FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 11,196 10,922 10,854
-Japan 10,554 10,052 9,969
-Asia 642 870 885

R&D Facilities

-The Company announced that the “Hirose Technical Center,” its new research and development base in Toyota City, Aichi Prefecture, has started operations. The investment for the building and equipment was about JPY 3.5 billion. The Company relocated most of its evaluation machines in the prefecture to the new center to improve the efficiency of production development. The Company will develop new technology for advanced internal combustion engines, and in the future, products for electrified vehicles like fuel cell vehicles. (From an article in the Nikkan Jidosha Shimbun on August 29, 2017)

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.

R&D Structure

-The Company has launched a new development system aimed at halving the selling price of its three major products, which include fuel pump modules. The Company will set up three teams by gathering designers, production engineers and procurers for each of the products to significantly improve their cost competitiveness. Members from the production technology department will be appointed as leaders of the teams. The leaders will design products with cost reduction in the production process as the key concept. Mass production of the new, less-expensive products is expected to begin in 2020. (From an article in the Nikkan Jidosha Shimbun on February 6, 2017)

Capital Expenditure

(in millions of JPY)

FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 12,022 12,738 15,884

-Investment of JPY 5,451 million in Japan, and JPY 6,571 million outside Japan.
-In Japan, the Company invested JPY 11.32 million in the evaluation equipment at its Hirose Technical Center and system suitability and other tests and researches, with the aim of enhancing its system development capabilities and developing new products for next-generation vehicles.

Capital Investment by Product

(in millions of JPY)

Product Fuel-pump modules Throttle bodies Canisters Engine values EGR valves Total
Amount 2,825 1,457 629 1,756 685 7,390

Capital Investment by Region

(in millions of JPY)

Region Japan Asia Americas Europe Total
Amount 2,284 1,879 2,419 808 7,390

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 967 Oct.
Facilities to manufacture fuel-pump modules 652 May
Anjo Plant
(Aichi, Japan)
Facility manufacturing throttle bodies 1,522 Jan.
Facility manufacturing engine values 575 Feb.
Facility manufacturing canisters 476 Apr.
Facility manufacturing EGR valves 218 Mar.
Toyota Plant
(Aichi, Japan)
Facilities to manufacture fuel-pump modules 2,559 Dec.
Aisan Auto Parts India Pvt. Ltd.
(India, Chennai)
Facilities to manufacture motorcycle parts 1,624 Jan.
P.T. Aisan Nasmoco Industri
(Indonesia, West Java)
Facilities to manufacture motorcycle parts 1,484 Jan.
Aisan Industry Czech s.r.o. Facilities to manufacture fuel-pump modules 943 Jan.
Franklin Precision Industry, Inc.
(Kentucky, U.S.)
Facilities to manufacture throttle body 689 Jan.
Aisan Tianjin Auto Parts Co., Ltd.
Facilities to manufacture canisters 557 Jan.