Imasen Electric Industrial Co., Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of change (%) Factors
Overall
Sales 83,828 74,012 13.26 -
Operating income 6,414 5,185 23.70 -
Ordinary income 5,880 5,281 11.34 -
Current net income 3,685 3,064 20.26 -
Automotive components related business
Sales 79,376 69,995 13.40

- Sales of automotive components increased year-on-year, thanks to recovery in demand from North America and rising businesses in China, Thailand, and other Asian countries.

Operating income 6,246 5,056 23.53 -
 

Business Partnership

TS Tech Co., Ltd. and the Company announced on October 29, 2010 that the two companies will strengthen ties in the area of automotive seat business by acquiring equity shares of each company. With this move, they intend to increase efficiency in developing and producing vehicle seat products. TS Tech, which already holds 10,000 the Company shares, will acquire additional 300,000 shares to raise the ratio of its shareholding in the company to 1.71 percent. The Company, on its part, is intending to obtain approximately 230,000 shares of TS Tech(0.34 percent of all TS Tech shares), value of which is equal to the Company shares TS Tech will gain. The details of the transaction, including its method and schedule, will be decided later. (From an article in the Nikkan Jidosha Shimbun on October. 30, 2010)

Highlights

<By customer>
- The volume of the business won from the Honda Motor Group recovered in the U.S. and was large in China.
- Business with the Nissan Motor Group was strong in China and increased in Japan.
- Sales to the Mitsubishi Motors Group picked up in Japan.

<By product>
  - Growth in sales of seat adjusters contributed to the rise in overall sales.
- Sales of lamps grew significantly, thanks to a recovery in demand from Mitsubishi Motors.

- Operating income increased due to the Company's successful efforts to reduce fixed costs.

R&D

R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 122 118 136
Ratio of R&D expenses to sales (%) 0.14 0.16 0.16

R&D Activities

Automotive components related business
<Seat adjusters>
 -The Company developed seat adjusters that are extremely strong, capable of absorbing strong impacts, and offers functions to sound an alarm before a collision occurs to protect occupants.
-The Company developed smaller and lighter products by reducing the number of parts, using new materials, and starting a new production process, all of which work to achieve greater fuel efficiency.
- The Company developed lift-up seat devices for welfare vehicles offering improved usability in the growing aging society.
-The Company shortened product development lead time by using CAE analysis technology. Research and development was aimed at improving functionality and improving cost efficiency of seat slide adjusters, seat reclining adjusters, and seat height adjusters.
-The Company has developed power seat adjusters with high performance in terms of lower noise and vibration. It is working on integrating these products with anti-trap electric control units (ECUs) and other ECU systems to enhance control.

<Window regulators>
-The Company is conducting R&D activities on solution-based, smaller and lighter window regulators.

<Electronic units>
-In addition to developing and launching integrated control units, which enable simultaneous control of various devices, several equipment, the Company commercialized memory seat ECUs and ECUs for seatbelt pretensioners. It has also developed controlling units for adjusting the positions of seats, mechatronics products that integrate structural and electronics technology.
- The Company is also focusing on developing electronic components for electric and hybrid vehicles.

<Lamps>
-The Company has been developing various new lamps such as rear combination lamps and room lamps, etc. using LED elements.
-It is also working on developing modular overhead consoles, which integrates control units, lamps, and lock mechanisms.

<Horns>
-The Company continues its efforts to develop and market high-quality but small and low-cost horns.

<Others>
-The Company developed new products based on technology in the areas of mechanisms and electrical operations. Specifically, the Company developed actuators, which control the opening and closing of magnetic valves and air conditioning ducts used in ventilation systems. These servos are more compact and lighter in weight. In addition, it conducted research and development activities to modularize clusters of magnetic valves; and developed and commercialized electrically adjustable windscreens and windshields for large motorcycles.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 4,382 1,844 5,731
Automotive components 3,863 1,752 5,656

 Capital investments in FY2010
-The Company invested mainly in facilities that produce round reclining adjusters and seat adjusters.

Investments Outside Japan

-The company announced on November 8, 2010 that it will establish Wuhan Imasen Electric Industrial Co., Ltd, a second production facility for automobile seat adjusters in China. The new facility is planned to go into operation in 2012. The company already owns a wholly-owned subsidiary in Guangzhou, Guangdong, "Guangzhou Imasen Electric Industrial Co., Ltd. (China)", which manufactures and sells seat adjusters for the local market. With the aim of increasing sales of seat adjusters in the Chinese market as well as improving efficiency in logistics and distribution, The company has decided to establish a second production site, which is capitalized at approx. 600 million yen and invested 60 percent by the company and 40 percent by Guangzhou Imasen Electric. (From an article in the Nikkan Jidosha Shimbun on November. 9, 2010)

-On October 6, 2011 Imasen Manufacturing (Thailand) Co., Ltd. (IMTC), The company's subsidiary in Thailand, held a groundbreaking ceremony at the construction site for its second plant. IMTC is supplying seat adjusters to vehicle seat manufacturers operating in Thailand. The new plant will function as a dedicated stamping facility, housing both existing stamping equipment at IMTC and new machinery to be introduced. The expansion will double IMTC's stamping capacity. Investment in this project is expected to reach about 52 million baht, and operations on the new lines are scheduled to begin in November 2011. (From a press release on October 7 2010)

New Investment Projects (Automotive components related business)

(As of Mar. 31, 2011)

Company name
(Location)
Facilities Planned amount of investment
(in million JPY)
Project period
From To
Imasen Electric Industrial Co., Ltd.
Nagoya plant
(Inuyama, Aichi Pref., Japan)
Production equipment 2,085 Feb. 2011 Mar. 2012
Imasen Electric Industrial Co., Ltd.
Gifu plant
(Kamo, Gifu Pref., Japan)
Production equipment 708 Apr. 2011 Mar. 2012
Imasen Electric Industrial Co., Ltd.
Yaotsu plant
(Kamo, Gifu Pref., Japan)
Production equipment 481 Apr. 2011 Mar. 2012
Imasen Electric Industrial Co., Ltd.
Okayama plant
(Kurashiki, Okayama Pref., Japan)
Production equipment 178 Apr. 2011 Mar. 2012
Imasen Electric Industrial Co., Ltd.
Kani plant
(Kani-shi, Gifu Pref., Japan)
Production equipment 110 Apr. 2011 Mar. 2012
Imasen Electric Industrial Co., Ltd.
Harusato plant
(Kani-shi, Gifu Pref., Japan)
Production equipment 140 Apr. 2011 Mar. 2012
Imasen Electric Industrial Co., Ltd.
Hiroshima plant
(Higashi Hiroshima City, Hiroshima Pref., Japan)
Production equipment 310 Apr. 2011 Mar. 2012
Guangzhou Imasen Electric Industrial Co.,Ltd.
(Guangdong, China)
Production equipment 400 Jan. 2011 Dec. 2011
Wuhan Imasen Electric Industrial Co., Ltd.
(Hubei, China)
Acquiring a piece of land and building a new plant 600 Apr. 2011 Dec. 2011
Imasen Bucyrus Technology Inc.
(Ohio, USA)
Production equipment 400 Jan. 2011 Dec. 2011
Buildings and Production equipment 2,000 Jan. 2011 Dec. 2011
Imasen Manufacturing India Pvt. Ltd.
(Rajasthan, India)
Production equipment 290 Jan. 2011 Dec. 2011
Imasen Manufacturing (Thailand) Co., Ltd.
(Ayutthaya, Thailand)
Buildings and Production equipment 500 Jan. 2011 Dec. 2011
Imasen Philippines Mfg. Corp.
(Laguna, Philippines)
Production equipment 110 Jan. 2011 Dec. 2011