JTEKT Corporation Business Report FY ended Mar. 2018

Financial Overview

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 Rate of
Sales 1,441,170 1,318,310 9.3 -Revenue increased due to higher sales company-wide, especially in Japan and China.
-Income increased because of significantly higher sales at the machine-tool parts business, especially steering systems and bearings; and because of favorable currency translation due to the weak valuation of the yen.
Operating income 81,391 77,442 5.1 -Income increased because of higher sales and because of favorable currency translation due to the weak evaluation of the yen.
-The machine-tool-parts business posted around the same level of income year-on-year because of lower product-selling prices and increased R&D expenses, despite higher sales and favorable currency translation.
Ordinary income 82,571 78,096 5.7
Net income attributable to owners of the parent 49,697 47,522 4.6

Recent Development in Japan

-On June 28, 2018, announced that mass production of a new lithium-ion capacitor will begin at its two plants in Aichi Prefecture in 2019. It will start manufacturing 2,000 cells of the capacitor a month at its Higashi Kariya factory (Kariya City) in April 2019 and 40,000 cells a month at its Hanazono plant (Okazaki City) in the autumn of the same year. The newly-developed lithium-ion capacitor can be used at temperatures from -40 to 80 degrees centigrade and be employed as an auxiliary power source for automotive electronic power steering systems. Customers such as construction machinery manufacturers are also showing interest in the new capacitor. The new product will be supplied for internal equipment and to external customers.

-In August 2017, announced that it developed and started commercial production of torque sensitive LSD TORSEN for light duty trucks. The manufacturing base is Sayama Plant. Behind this background, there are demands for response to the high-load driving environment such as heavy loading and muddy roads. The new product features high strengthening of planetary gears whose number is 6 sets while previous TORSEN Type B has 5 sets. High durability by DLC coating on washers (Diamond like Carbon) and enhanced performance by adopting helical spline structure of side gears are other features. This torque sensitive LSD TORSEN is supplied for HINO 300 series and Toyota Dyna which are both for sale in Indonesia.

-Announced that it has reached an agreement with Tachi-S Co., Ltd. and Fuji Kiko Co., Ltd. regarding transfer of Fuji Kiko's seat business to Tachi-S and the acquisition of all Fuji Kiko stock by the Company through a takeover bid (TOB), to which Tachi-S will apply. In December of the same year, the Company acquired additional stock shares of Fujikiko Co., Ltd, turning it into a subsidiary company.

Recent Development outside Japan

-Will start mass production of steering wheel systems in Morocco in September 2020 to establish a beachhead in the growing African market. Construction of a new plant will be completed in January 2019, and Fuji Kiko Co., Ltd., which became a subsidiary of the Company in 2017, will take charge of production. The new plant will supply steering wheel systems to European automakers in Morocco.

-Will increase production of electric power steering (EPS) systems for medium and large-sized vehicle in China. The company will set up two lines for rack assist type EPSs at its production sites in Tianjin and Xiamen investing approximately JPY 4 billion.

-Indian Fair trade regulator Competition Commission of India (CCI) announced that it has given its approval for the Company's proposed acquisition of stake in Sona Koyo Steering Systems Ltd (SKSSL). In June of the same year, the stock acquisition was completed, and the company became a subsidiary.

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 55,267 48,213 46,296

R&D Facilities


Division Name Location
Steering System Operations East Japan Technical Center Sayama City, Saitama Pref.
Central Japan Technical Center Okazaki City, Aichi Pref.
West Japan Technical Center Kashihara City, Nara Pref.
Bearing Operations East Japan Technical Center Sayama City, Saitama Pref.
Central Japan Technical Center Toyota City, Aichi Pref.
West Japan Technical Center Kashiwara City, Osaka

-Announced that the Company held an opening ceremony for JTEKT IT Development Center Akita. The new development center for automotive parts software is its first center in Akita Prefecture. The center will develop advanced software for controls products like electronic power steering systems.

Product Development

Column Coaxial Actuator for Large Vehicles
-Will put a column coaxial actuator to practical use around 2020 to enable automated steering operation of buses, trucks, and other large vehicles. The column coaxial actuator receives a steering angle command from the system and operates the steering wheel in place of the driver. It is designed to automate the steering of large vehicles like trucks and buses that are equipped with hydraulic power steering systems. The Company will put it to practical use at an early stage and facilitate the adoption of advanced driving assistance systems and autonomous driving technologies for large vehicles.

Steer-by-Wire System
-Will put the first model of its steer-by-wire system to practical application by 2020. A vehicle with the new system is steered electronically during ordinary drive, and if an emergency arises, the clutch function mechanically connects the steering wheel and the axle of the front wheel to ensure redundancy. The Company has completed the development of the function and now is working to verify safety. The Company will offer the system for Japanese automakers' models in the C segment or higher, aiming for its introduction as an option. For autonomous vehicles, the company is planning to develop a new steering system by 2025 where behavior of the vehicle and the steering are controlled independently. By releasing next-generation steering systems in stages, the Company intends to raise awareness of those systems among users and accumulate technical know-how.

Swaged-Type Planetary Shaft for Use in a Planetary Gear
-In October 2017, announced that the Company has developed a new swaged-type planetary shaft for use in a planetary gear system for automatic transmissions (step-type AT, CVT, HV). Introduction of a special heat treatment process has extended the bearing life, more than double that of an existing product. The Company will start mass production of the new shaft from 2020. It set an annual sales target of JPY 300 million for automakers and transmission suppliers in Japan and elsewhere.

<Bearing Division>
Bearing for Motors in Hybrid Vehibles
-In April 2018, has developed a new bearing that meets an increase in the rotation speed of motors for hybrid vehicles (HVs). The bearing has a new structure in which two retainers in combination support balls from both sides. Compared to current products in which balls are supported only by a retainer on one side, the new bearing features retainers that are less apt to be deformed and offers reduced friction even if the motor turns at high speeds. The new product helps achieve a rotation speed that is 1.3 times higher than the speed attained by traditional products. Although the new bearing requires more parts than current products do, the Company anticipates that an improvement in the efficiency of motors for HVs and electric vehicles will create a need for the new product. It is aiming to put it into practical use as soon as possible.

Long-Life Automotive Transmission Thrust Needle Bearing
-In September 2017, announced that it has developed a long-life automotive transmission thrust needle bearing that lasts 3.5 times longer than conventional components. The Company dramatically improved durability by devising new surface and heat treatment methods while maintaining the size. It will start mass production of the new bearing for transmissions and compressors from 2020. It set an annual sales target of 1.44 million units for automakers and transmission suppliers in Japan and elsewhere.

Low Torque Ball Bearing for Automotive Differential Gears
-In July 2017, announced the development of a low torque ball bearing for automotive differential gears. The Company has adopted the fuel control technologies utilized for tapered roller bearings to optimize the flow of fuel, which reduces energy loss up to 30% from the present level. This ball bearing is expected to improve fuel efficiency of vehicles by 1%. Commercial production targeting automakers and axle makers will begin in 2020, aiming to achieve annual sales of JPY 500 million. The newly developed ball bearing adjusts the amount of fuel flowing into the bearing by optimizing the forms of resin cage and the inner and outer rings based on the oil flow analysis utilizing computer-aided engineering (CAE). The Company says this reduces resistance of high viscosity grease for differential gears, achieving a significant reduction in energy loss.

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 66,642 66,438 63,140
-Mechanical Components 58,753 59,029 56,524

Mechanical Components
-In the fiscal year that ended in March 2018, the Company invested to increase and enhance facilities and equipment at production plants in all regions.

Planned Capital Investment

(As of Mar. 31, 2018)
Plant Location Type of facility Estimated amount of investment
(in million JPY)
Project Period
From To
Hanazono plant Aichi,
Facility for manufacturing mechanical components 3,302 Apr.
Okazaki plant Aichi,
Facility for manufacturing mechanical components 2,751 Apr.
Nara plant Nara,
Facility for manufacturing mechanical components 2,639 Apr.
Daibea Co., Ltd.
Head Office & Izumi Plant
Facility for manufacturing mechanical components 1,920 Apr.
Facility for manufacturing mechanical components 1,600 Apr.