Imasen Electric Industrial Co., Ltd. Business Report FY ended Mar. 2017

Financial Overview

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of change (%) Factors
Sales 110,275 120,100 (8.2) -
Operating income 2,670 3,202 (16.6) -The Company installed inspection equipment at its production plants overseas, which it developed last year by utilizing its image-processing technology. Even though the Company worked to reduce work time and labor involved with inspection work and improve the precision of inspection work, operating income nevertheless decreased.
Ordinary income 2,047 2,747 (25.5) -
Net income attributable to owners of the parent 1,567 883 77.5 -Income increased due to corporate-tax reductions at its US corporation which were the results of bilateral tax-treaties.
Automotive components related
Sales 106,670 115,907 (8.0) -Sales decreased due to lower production volumes of new vehicles in Japan and the effect of negative currency translation.
Operating income 2,842 3,205 (11.3) -

Mid-term Business Plan

-Under the mid-long term business plan, Dream 2020, consolidated sales of JPY 180.0 billion and a profit margin of 7% are targets set to be achieved by the fiscal year ending in March 2021.

-On the way to achieving targets set for the fiscal year ending in March 2021, by the end of Phase 2 (which covers the fiscal year ending in March 2016 to the fiscal year ending in March 2018) the Company aims to achieve an operating profit margin of 5.5%.

-The Company aims to increase its share of automotive electric parts such as motor and lamp controllers to 20% of its overall automotive parts sales from the current 6% to 7%, by the end of the fiscal year ending in March 2021. In view of the increasing demand for automotive electric parts due to increased automation, the Company will increase its investment in automotive electric parts business, and plans to make it the Company's second pillar after its main product line of mechanical seat parts, such as seat adjusters. (From an article in the Nikkan Jidosha Shimbun on September 1, 2015)

Major initiatives during the first year of Phase 2 (the fiscal year ending in March 2016)

-April 2015: Established the Imasen Global Development and Training Center.

  • Consolidation of Group’s technical workers.

  • The Company is developing automotive safety and driver-assist systems based on imaging technology, which it exhibited at the Tokyo Motor Show. These systems ensure a safe and comfortable driving environment for drivers by providing them a 360°view of the vehicle’s surroundings through onboard 3D monitors.

  • The Company announced that it has completed the construction of the “Imasen Global Development and Training Center” and “Imasen History Museum” in Inuyama, Aichi Pref. Japan, where the Company began its operations. These facilities are located on the site previously occupied by the company’s former technology and research center. The new development and training center is a three-story building with a total floor area of 2,844 square meters. The building offers training rooms on the first floor, accommodations on the second floor, and research and development laboratories on the third floor. (From an article in the Nikkan Jidosha Shimbun on July 14, 2015)

-R&D activities to develop new products, with its global R&D center at the core.

-January 2016: Streamlined the organization of the production operations in the Chubu Region.
-Initiatives to reduce fixed costs by reorganizing production plants in Japan.

-April 2015: Established the Global Management Department.
-October 2015 and January 2016: Strengthened the operating organizations of subsidiaries overseas.

  • The Company will launch an initiative to optimize its global production structure for automotive seat mechanical parts, which are its main products. Up until recently, the Company has rapidly expanded its operations outside Japan by establishing new plants in several countries. It is now set to increase its operational efficiency by optimally allocating production among these plants in consideration of its future business prospects, exchange rates, and labor costs. It will focus on enhancing production efficiency over the next three years to meet these targets. (From an article in the Nikkan Jidosha Shimbun on October 6, 2015)

  • Initiatives to improve the profit structure of North American operations: The North American operations recovered to operate in the black, achieving both higher sales and operating profit in the fiscal year that ended in March 2016. The Company assigned the right people in the right place, streamlined the managerial function at the three business locations, and reduced costs by making use of the Mexican operations. In addition the Company is considering optimizing production operations according to foreign-currency fluctuations.

  • Initiatives to respond to the declining sales/profits in Asia: The Company is building an organizational structure in Asia that can achieve sustainable profits, in spite of falling sales. It is localizing production of mainstream products; implementing cost-cutting initiatives; localizing procurement; launching in-house products; optimizing management and production functions in the three locations in China; and increasing sales, for example, by opening a sales office in Indonesia.

-June 2015: Set up the German office in Frankfurt.

  • Launched sales activity to European OEMs.

-Optimally manage three production plants in China and build up a production framework.

-Training human resources in all functions by making use of its Global Development and Training Center.
-Train and develop staff members at operations overseas


Outlook for FY ending Mar. 2018

(in million JPY)
FY ending Mar. 31, 2018
FY ended Mar. 31, 2017
(Actual results)
Rate of change (%)
Sales 113,000 110,275 2.5
Operating income 3,900 2,670 46.1
Ordinary income 3,800 2,047 85.6
Net income attributable to owners of the parent 2,500 1,567 59.5

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

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 1,758 1,672 1,626
-Automotive components related business 1,722 1,638 -

R&D Facilities

-Hiroshima Technical Center (Higashi Hiroshima City, Hiroshima Pref. Japan)
-Tochigi Technical Center (Haga-Gun, Tochigi Pref. Japan)
-IMASEN Global Development and Training Center (Inuyama-City, Aichi Pref. Japan)

R&D Activities

-The Company is promoting following R&D activities;

Automotive components related business

-Heavy-duty products and products that absorb impacts, in order to enhance vehicle occupants during collisions.
-Small and light weight products made possible by reducing the number of parts and developing new materials and processes to lower fuel consumption
-Development of a safety seat adjuster that is comfortable and which provides added convenience and space enough for occupants to relax.
-The Company is reducing the length of time it takes to develop products, by making use of CAE analysis technology. In addition, it is improving basic seat features such as sliding, reclining, and height, as well as lowering costs.
-Developing a power seat-adjuster that excels in sensory performance such as sounds and vibrations. Developing technology that integrates an electric control unit that controls the seat movement with technology that prevents pinching when the seat is moved.

-Developing integrated control units that can control multiple devices.
-Developing various ECU’s for seats, sunroofs, and sunroofs for convertibles.
-Conducting R&D activities on mechatronic products in which mechanisms and electronics, such as functions that control the arrangement of seat positions, are integrated.
-Developing various safety devices such as warning devices that monitor drivers and warn them when they are falling asleep at the wheel.
-Developing ECUs that control voltage conversion so as to improve fuel efficiency.
-Developing electronic products for environmentally friendly vehicles such as EVs, HEVs, etc., and conducting research on technology that reduces traffic accidents such as onboard cameras that take the place of human eyes to detect the distance from vehicles ahead and pedestrians, which human eyes often miss, by sending video signals.

-Developing all sorts of new automotive lamps such as rear-combination lamps, turn-signals, and cabin-interior lights that use LED elements.

Capital Expenditure

(in million JPY)
FY ending Mar. 31, 2018
FY ended Mar. 31, 2017
(Actual Results)
FY ended Mar. 31, 2016
(Actual Results)
FY ended Mar. 31, 2015
(Actual Results)
Overall 4,500 3,526 4,361 6,512
-Automotive components - 3,456 4,325 6,415
Capital expenditure by country (Breakdown of overall)
Japan 2,876 1,907 2,346 3,056
North America 377 685 945 1,829
Mexico 44 238 183 442
China 637 263 485 740
Thailand 313 369 247 323
Philippines 115 35 75 89
Taiwan 42 21 19 0
India 92 2 18 27
Indonesia 0 2 39 3

-During FY ended March 2016, the Company invested mainly in facilities that produce round reclining adjusters and seat adjusters.

Planned Capital Investment (Automotive components related business)

(As of Mar. 31, 2017)
Company name
Facilities Planned amount of investment
(in million JPY)
Project period
From To
Nagoya plant
(Inuyama, Aichi Pref., Japan)
Production equipment 646 Mar. 2017 Mar. 2018
Gifu plant
(Kamo, Gifu Pref., Japan)
Production equipment 1,181 Mar. 2017 Mar. 2018
Yaotsu plant
(Kamo, Gifu Pref., Japan)
Production equipment 8 Mar. 2017 Mar. 2018
Okayama plant
(Kurashiki, Okayama Pref., Japan)
Production equipment 238 Mar. 2017 Mar. 2018
Kani plant
(Kani-shi, Gifu Pref., Japan)
Production equipment 19 Mar. 2017 Mar. 2018
Harusato plant
(Kani-shi, Gifu Pref., Japan)
Production equipment 106 Mar. 2017 Mar. 2018
Hiroshima plant
(Higashi Hiroshima City, Hiroshima Pref., Japan)
Production equipment 391 Mar. 2017 Mar. 2018
Guangzhou Imasen Electric Industrial Co.,Ltd.
(Guangdong, China)
Production equipment 125 Jan. 2017 Dec. 2017
Wuhan Imasen Electric Industrial Co., Ltd.
(Hubei, China)
Buildings and production equipment 511 Jan. 2017 Dec. 2017
Imasen Bucyrus Technology Inc. Ohaio Plant
(Ohio, USA)
Production equipment 319 Jan. 2017 Dec. 2017
Imasen Bucyrus Technology Inc. Tennessee Plant
(Tennessee, USA)
Production equipment 57 Jan. 2017 Dec. 2017
Imasen Manufacturing India Pvt. Ltd.
(Rajasthan, India)
Production equipment 92 Jan. 2017 Dec. 2017
Imasen Manufacturing (Thailand) Co., Ltd.
(Ayutthaya, Thailand)
Production equipment 313 Jan. 2017 Dec. 2017
Imasen Philippines Mfg. Corp.
(Laguna, Philippines)
Production equipment 115 Jan. 2017 Dec. 2017
Imasen Mexico Technology S.A. de C.V.
(Guanajuato, Mexico)
Production equipment 44 Jan. 2017 Dec. 2017