Aisan Industry Co., Ltd. Business Report FY ended Mar. 2019

Financial Overview

(in millions of JPY)

FY ended Mar. 31,
2019
FY ended Mar. 31,
2018
Rate of Change
(%)
Factors
Overall
Sales 213,494 212,524 0.5 -Japan: Sales and income increased, thanks to greater sales volumes
            and effective profit-improvement initiatives
-Asia: Sales increased due to greater sales volumes
-Americas: Sales and income decreased due to lower sales in the USA.
-Europe: Income decreased due to higher overhead expenses.
Operating income 8,227 9,421 (12.7)
Ordinary income 8,181 9,770 (16.3) -
Net income 6,124 4,526 35.3 -

 

Outlook for FY ending Mar. 31, 2020

(in millions of JPY)

  FY ended Mar. 31, 2020
(Forecast)
FY ended Mar. 31, 2019
(Actual)
Rate of
Change (%)
Overall
Sales 212,000 213,494 (0.7)
Operating income 8,300 8,227 0.9
Ordinary income 8,100 8,181 (1.0)
Net income 4,900 6,124 (20.0)

 
Factors

-Forecasts were based on JPY 110 to 1 USD. Lower incomes in the Americas and Europe due to decreases.

>>>Earnings forecasts by Japanese suppliers

 

Medium-term Management Plan

<Major initiatives by lines of business>
1.Main products business

  • Improved commercial appeal of throttle bodies, fuel-pump modules, EGR valves, and exhaust-gas-control systems
  • Enhanced production capacity of motorcycle products in India

2.Powertrain-systems-development business

  • Enhanced engineering capabilities, operating structure, and human-resource capabilities to better match needs for HVs, EVs, and FCVs.
  • Launched external sales of components

3.Future-products business

  • Enhanced electrification technologies such as electric generators, electric power-sources, electric control-units, raising knowledge to make customer proposals on systems for electric-driven vehicles.

 

Award

-Fuel-pump module for the TNGA was awarded the Parts Standardization Award and Award of Excellence from Toyota Motor Corporation.

 

R&D Expenditure

(in millions of JPY)

  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 11,302 11,196 10,922
-Japan 10,597 10,554 10,052
-Asia 705 642 870

 

R&D Activities

-Retrofit of a safety device that prevents vehicles from moving forward when drivers accidently step on the accelerator are being delivered to Daihatsu.

 

Capital Expenditure

(in millions of JPY)

FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 16,523 12,022 12,738

-Investment of JPY 8,584 million in Japan, and JPY 7,939 million outside Japan.
-In Japan, the Company invested JPY 8.5 million 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 4,797 3,120 1,047 261 1,667 10,892

 

Capital Investment by Region

(in millions of JPY)

Region Japan Asia Americas Europe Total
Amount 5,314 3,133 923 1,522 10,892

 

Planned Capital Investment

Plant name
(Location)
Type of facility or project Planned amount of investment
(in millions of JPY)
Project period
From To
Headquarters Plant
(Aichi, Japan)
New office building at headquarters 2,160 Oct.
2018
Mar.
2020
Anjo Plant
(Aichi, Japan)
Facility manufacturing throttle bodies 684 Feb.
2018
Mar.
2020
Facility manufacturing EGR valves 893 Aug.
2018
Mar.
2020
Toyota Plant
(Aichi, Japan)
Facilities to manufacture fuel-pump modules 1,572 Feb.
2018
Mar.
2020
Franklin Precision Industry, Inc.
(Kentucky, U.S.)
Facility manufacturing EGR valves 737 Jul.
2018
Aug.
2019
Aisan Autopartes Mexico, S.A. de C.V
(San Luis Potosi, Mexico)
Facility manufacturing EGR valves 670 Jan.
2018
Aug.
2019
P.T. Aisan Nasmoco Industri
(Indonesia, West Java)
Facilities to manufacture motorcycle parts 1,252 Jan.
2018
Aug.
2019
Aisan Auto Parts India Pvt. Ltd.
(India, Chennai)
Facilities to manufacture motorcycle parts 1,324 Jan.
2018
Jun.
2019
Aisan Fiem Automotives India Pvt. Ltd.
(India, Rajasthan)
Facilities to manufacture motorcycle parts 633 Jan.
2018
Dec.
2019