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
Plant name (Location)	Type of facility or project	Planned amount of investment (in millions of JPY)	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
Anjo Plant (Aichi, Japan)	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