Harada Industry Co., Ltd. Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of Change (%) Factors
Sales 36,470 29,935 21.8 -Sales increased year-on-year due to the following factors:
  • Sales decreased in Japan because of the negative impacts from the expiration of the eco-car subsidy. Sales in all other markets including North and South America, Europe, and Asia increased from the previous year’s results.
  • Revenue rose as a result of the acquisition of the automotive antenna businesses of Nippon Antenna.
Operating income 1,337 342 290.9 -
Ordinary income 1,412 590 139.3 -
Net income 1,256 977 28.6 -

New Long-term Management Plant HARADA NEXSTAGE 19 (FY ending Mar. 31, 2014 - FY ending Mar. 31, 2019)

Objectives Initiatives
(1) Strengthen Competitive Advantages
1. Strengthen product features and selling points -Develop new products, keeping in mind the need to strengthen cost advantages, while improving upon existing products.
-Ensure proper product quality and build an optimal supply chain.
2. Strengthen ability to better supply customers -Enhance capacities for gathering information, analyzing, conducting market research, and planning.
(2) Build Optimal Business Structure
1. Strengthen organizational structure -Strengthen collaboration among the Group by reorganizing head-office functions:
In October 2013, the Company absorbed Harada Communication Systems Co., Ltd. It aims to strengthen the group synergies, integrating Harada Communication System's production function in Japan; and overseeing function regarding production and sales into the Company.
2. Establish the Harada brand -Set the Company’s brand image as an automotive antenna manufacture with a unique global network.
3. Pursue Group synergies by putting the Group’s management skills into practice -Strengthen head-office functions even further and clarify the role of each Group company.

-Financial targets outlined in HARADA NEXSTAGE 19
FY ending Mar.31, 2019
Sales more than JPY 40 billion
Operating income ratio against sales more than 10.0%

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

Outlook for FY ending Mar. 2015

(in million JPY)
  FY ending Mar. 31, 2015
FY ended Mar. 31, 2014
(Actual Results)
Rate of Change
Overall 36,000 36,470 (1.3)
Operating income 1,050 1,337 (21.5)
Ordinary income 850 1,412 (39.8)
Net income 550 1,256 (56.2)


R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 1,465 1,626 925

-Total R&D expenses broken down in FY ended Mar. 2014 are as follows:
  • Japan: JPY 1,038 million
  • Asia: JPY 103 million
  • North & Central America: JPY 116 million
  • Europe: JPY 206 million

R&D Facilities

Facility Location
Headquarters Tokyo, Japan
Harada Industry of America, Inc. Michigan, USA
Harada Europe R&D Centre Kent, UK
Shanghai Harada New Automotive Antenna Co., Ltd. Shanghai, China

R&D Activities

Next-generation automotive antenna business
-Based on the Company's forecast that integration and less/non-protruding products will be the future of the next-generation automotive antenna sector, it began R&D activities on body-interior, built-in systems for in-vehicle satellite antennas and multi-function antennas for telematics use.

Basic R&D activities
-The Company started developing concepts for future antennas, aiming to achieve the following objectives in the future: improving the receiving performance of digital/multimedia devices; creating in-vehicle LANs; and developing compact, integrated antennas capable of responding to high-volume communication loads.

Develop future-generation antennae
-Develop future-generation antennae by actively making use of high-speed communication services for objects in motion like automobiles.

Investment Activities

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 801 643 636

-Capital expenditure broken down for FY ended Mar. 2014 by geographic area (in million JPY)
Region Investment amount Investment items
Japan 42 Facilities and equipment producing onboard automotive devices and communications devices, and R&D facilities
Asia 533 Facilities and equipment producing onboard automotive devices

North & Central Americas

210 Facilities and equipment producing onboard automotive devices, and R&D facilities
Europe 14 R&D facilities for onboard automotive devices