Kokusan Denki Co., Ltd. Business Report FY ended Dec. 2013

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Dec. 31, 2013* FY ended Mar. 31, 2013 Factors
Sales 14,217 21,897 -
Operating income 256 249 -
Ordinary income 507 536 -
Net income 335 329 -
Electrical Products Division
Sales 7,847 11,928 -
Operating income 616 870 -
Motor Division
Sales 6,369 9,969 -Sales of automotive motors decreased, mainly because the Company’s major customer moved production overseas.
Operating income 2 (66) -
*Due to changes made to the Company's accounting term, FY ended Dec. 31, 2013 covers a 9-month period from April 1, 2013 through December 31, 2013 in the Group's financial statements.

Joint Venture

-In 2013, the Company announced that it will establish a joint venture with Germany-based Mahle GmbH in Samut Prakan Province, Thailand in April 2014. In order to meet growing demand in the country, the new company will manufacture electric components and motors for automobiles, starting in the first half of 2015. It will be capitalized at THB 100 million (approximately JPY 300 million), of which 51 percent will be provided by Kokusan Denki and the remaining 49 percent will be provided by Mahle. (From an article in the Nikkan Jidosha Shimbun on November 29, 2013)

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


R&D Expenditure

(in millions of JPY)
  FY ended Dec. 31, 2013 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 221 251 233
-Electrical Products Division 94 133 142
-Motor Division 118 111 90

R&D Activities

Electrical Products Division
-Continually working to develop optimal ignition and fuel-injection systems for engines.

Motor Division

-The Motor Division is developing smaller motors for vehicle control systems. It is also developing mechatronics products by applying its technology to integrate motors and drivers of vehicle control units.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Dec. 31, 2013 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 426 1,177 909

-During FY ended Dec. 31, 2013, the Company made investment in establishment of a rationalized production line for electrical products, rationalization of facilities to save energy and introduce IT, and installation of new molds to allow the Company to respond to orders for new products and to update old facilities.

-The Major Investments in FY 2013.
(in millions of JPY)
Segment Amount Main facilities
Electrical Products Division 341 Electrical components rationalization facilities, etc.
Motor Division 85 Preparing new motor production lines to respond to vehicle model changes

Planned capital investments

(As of Dec. 31, 2013)
Site name Location Type of facility and activities Planned investment amount
(million yen)
From To
Gotemba factory Shizuoka Pref., Japan Streamlining motor production operations 97 Jun. 2014 Dec. 2014
Headquarters factory Shizuoka Pref., Japan Establishment for new plant 340 Nov. 2014 Dec. 2015