Ashimori Industry Co., Ltd. Business Report FY ended Mar. 2015

Financial Overview

(in million JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 Rate of Change (%) Factors
Sales 48,067 46,729 2.9


Operating income 1,025 1,166 (12.1) 1)
Ordinary income 1,306 1,564 (16.5) -
Net income 1,470 (1,225) - 2)
Automotive Safety Systems
Sales 35,932 35,418 1.5 3)
Operating income 904 1,161 (22.1) -

1) Operating income
-Operating income was lower year-on-year because the automotive safety parts business suffered from increased costs for parts procured outside Japan due to the weak yen and the high performance products business dealing in disaster-prevention products operated in the red.

2) Net income
-Net income was at a new, record high as a result of the Company's posting an extraordinary gain from selling some of its investment securities and posting a reimbursement from the reserves set up to cover product warranties.

3) Sales - Automotive Safety Systems
-Even though the Mexican plant launched production of seatbelts and airbags, sales were lower year-on-year due to lower production volumes in Japan of models on which the Company's products are being equipped and due to some models undergoing rebuilds.

-Sales at the automotive parts business were higher year-on-year. This includes sales in and outside Japan of interior parts such as tonneau covers and door shades.

Business Plan

-The Company will triple the sales of its interior business to JPY 20 billion in the fiscal year to end in March 2019 (FY 2018). The Company will utilize its core competency of textile-related technology to accelerate the development of high-value-added products including tonneau covers and roll curtains. With this advantage, the company intends to increase the intake of orders from U.S. and European automakers. Japanese automakers have been main customers in its automotive business. Competition is becoming fierce in the markets for seat belts and air bags, the company's main products in its automotive business. Ashimori Industry will raise the sales ratio of its promising interior business to that of its main business. By achieving this, the company aims to increase the sales of its automotive business to JPY 60 bullion, a 70% growth as compared to that of FY 2013. (From an article in the Nikkan Jidosha Shimbun on August 22, 2014)

Outlook for FY ending Mar. 31, 2016

(in million JPY)
FY ending Mar. 31, 2016
FY ended Mar. 31, 2015
(Actual Results)
Rate of Change
Sales 53,000 48,067 10.3
Operating income 1,600 1,025 56.1
Ordinary income 1,500 1,306 14.9
Net income 1,150 1,470 (21.8)

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

R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Overall 952 884 908
-Automotive Safety Systems 541 476 607

R&D Activities

-The Company developed and improved the reliability of new, high-performance devices that comply with government regulations in every country and which pass assessment tests.

-The Company developed and commercialized devices that are designed for production worldwide.

-The Company developed new, high-performance modules that comply with government regulations in every country on front collisions and lateral collisions; and which pass assessment tests. They were made lighter in weight and smaller in size and have improved reliability.

-The Company is developing and commercializing products that can be manufactured worldwide.

Interior products

-The Company expanded its product range of shades and tonneau covers, and expanded the types of cargo-nets it can supply. It also developed highly functional products and new materials; in addition to improving designs.

-Outside Japan, the Company is commercializing products, increasing the operations and number of customers.

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Overall 1,728 1,224 1,440
-Automotive Safety Systems 1,405 1,068 1,301

Automotive Safety Systems
-The Company made capital investments mainly at its Osaka Plant to rationalize and strengthen production of automotive products, as well as augment R&D facilities.

Planned Capital Investments

(As of Mar. 31, 2015)
Name of Company/Plant
Purpose Planned investment
(in million JPY)
Starting Month Completing Month Capacity increase on completion
Osaka Plant
(Osaka, Japan)
To rationalize production facilities for automotive safety systems and high performance products 1,859 Apr. 2014 Mar. 2016 Practically none as this is to improve quality
Ashimori Korea Co., Ltd.
(Gangwon-do, Korea)
To construct production facilities for automotive safety systems 930 Jul. 2015 Mar. 2019 -