YASUNAGA CORPORATION Business Report FY2010

Business Highlights

Financial Overview

(in million JPY)
  FY2010
(ended
Mar. 2011)
FY2009 Rate of Change
(%)
Factors
Overall
Sales 36,445 24,810 46.9 -
Operating income 2,770 (542) - -
Ordinary income 2,494 (509) - -
Net income 1,728 (159) - -
Engine components business
Sales 25,637 18,563 38.1 Both sales and operating profit improved as a result of the Company’s continuing sales activities involved with selecting and consolidating its strategic products, namely connecting rods, cylinder heads, and cylinder blocks; and as a result of winning more program business from mainly non-Japanese automakers.
Operating profit 1,749 103 1,598.1

New company

The Company will establish a new subsidiary in Korea to manufacture engine components. Operations are scheduled to begin in the spring of 2012, after which the Group intends to transfer production of parts for Korean automakers from Japan to the new facility in steps. Yasunaga’s major customers in Korea include GM Daewoo Auto & Technology, which will soon change its corporate name to GM Korea. (From an article in the Nikkan Jidosha Shimbun on February 15, 2011)



R&D

R&D Expenses

(in million JPY)
  FY2010 FY2009 FY2008
Overall 407 327 248

Investment Activities

Capital Expenditure

(in million JPY)
  FY2010 FY2009 FY2008
Overall 1,519 1,322 2,829
Engine components business 1,109 1,093 2,648

Engine components business
-The Company invested in machinery, equipment, tools and fixtures for the purpose of upgrading and acquiring new items for its home office plant, Saimyoji Plant、Yume Polis Plant、Nabari Plant、Casting Plant、P.T. Yasunaga Indonesia, and others in order to respond to new product orders.

New Facilities (Engine components business related)

Plant
(Location)
Purpose Planned total investment
(in million
JPY)
Start Planned completion Increased capacity upon completion
Nabari Plant
(Mie Pref., Japan)
Production facilities 108 Apr.
2011
Sep.
2011
-