MAHLE Electric Drives Japan Corporation (Formerly Kokusan Denki) Business Report FY ended Dec. 2014
Financial Overview |
(in millions of JPY) |
| FY ended Dec. 31, 2014 | Jan. - Dec. 2013* | Factors | |
| Overall | |||
| Sales | 17,685 | 19,540 | -Sales decreased year-on-year due to a decline in demand in Japan, where the Company’s major customer adjusted its production volume. |
| Operating income | (5) | 245 | -Operating income dropped due to a fall in demand and lower capacity utilization rate. |
| Electrical Products Division | |||
| Sales | 10,886 | - | - |
| Operating income | 791 | - | - |
| Motor Division | |||
| Sales | 6,799 | - | -Sales decreased year-on-year due to a decline in demand for automotive motors in Japan, where the Company's customer adjusted its production volume. |
| Operating income | (306) | - | - |
*Results for the period between January and December 2013 are shown here in order to compare 12-month performances. (FY 2013 actually covers the 9-month period from April through December 2013 due to changes made to the Company's accounting term in 2013.)
Acquisition by Mahle
-In 2015, Mahle Japan Ltd. announced that it will acquire all outstanding shares of the Company by means of a tender offer. Mahle Japan currently holds 39.09 percent of the shares in the Company. The tender offer period will run from May 1 to June 16, 2015, and the tender offer cost will be approximately JPY 3.79 billion (USD 31.7 million). In accordance with this transaction, the Company is slated to be delisted from the Tokyo Stock Exchange.
-On June 23, 2015, MAHLE Japan holds 90.12% of the Company's shares through a tender offer. In accordance with this transaction, the Company was delisted from the Tokyo Stock Exchange.
Joint Venture in Thailand
-The Company established a joint venture with Germany-based Mahle GmbH in Samut Prakan Province, Thailand on June 5, 2014. The operation started in January 2015. The new company manufactures electric components and motors for automobiles. 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.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in millions of JPY) |
| FY ended Dec. 31, 2014 | FY ended Dec. 31, 2013* | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
| Overall | 393 | 221 | 251 | 233 |
| -Electrical Products Division | 132 | 94 | 133 | 142 |
| -Motor Division | 238 | 118 | 111 | 90 |
*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.
R&D Activities
Electrical Products Division
-Pursuing high-efficiency, systemization, and globalization, the Company is developing advanced charging systems featuring high-efficiency AC generators and regulators, while leveraging its expertise in high-performance magnet generators.
Motor Division
-Pursuing high-efficiency, systemization, and globalization, the Company is developing elemental technologies to develop compact motors for automobiles. It is also developing mechatronics products that integrate motors and motor drivers.
Capital Expenditure |
(in millions of JPY) |
| FY ended Dec. 31, 2013 | FY ended Dec. 31, 2013* | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2013 | |
| Overall | 753 | 426 | 1,177 | 909 |
*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.
-During 2014, the Company invested in constructing high-efficiency production lines for electric products, introducing labor-saving and computer technologies to streamline its operations, introducing dies for manufacturing new products, and retooling its plants. It also acquired land and buildings for Kokusan MAHLE Siam Co., Ltd., its new subsidiary in Thailand.
| -The Major Investments in FY 2014. |
(in millions of JPY) |
| Segment | Amount | Main facilities |
| Electrical Products Division | 610 | Electrical components rationalization facilities, etc. Land and buildings for new consolidated subsidiary, etc. |
| Motor Division | 143 | Preparing new motor production lines to respond to vehicle model changes |
-During 2015, the Company plans to invest JPY 907 million mainly in new plant projects.
Planned capital investments |
(As of Dec. 31, 2014) |
| Site name | Location | Type of facility and activities | Planned investment amount (million yen) |
From | To |
| Headquarters factory | Shizuoka Pref., Japan | Buildings for electrical components and motors | 320 | Undetermined | Undetermined |
| Headquarters factory | Shizuoka Pref., Japan | Facilities for motor production line | 247 | Jun. 2015 | Jan. 2016 |