Mitsuboshi Belting Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of Change (%) Factors
Sales 45,267 53,867 (16.0) -
Operating income 1,594 2,480 (35.7) -
Ordinary income 1,539 2,132 (27.8) -
Net income 661 182 262.5 -
Belt Division
Sales 38,414 45,664 (15.9) -Automobile production, despite a gradual recovery, had not yet reached the pre-recession level. Consequently, sales of factory-installed seat belts for new cars remained slow in the U.S. and Japan.
Operating income 3,747 4,271 (12.3) -

Business Restructuring

-The Company has completed 2009 autumn its product integration plan, aimed to decrease the variation in automotive power transmission belts and other items by half. The effects of the streamlining efforts through reduction of control items are expected to recover the loss on the slumping automotive market and to enhance its profitability. In Oct. the Company transferred major product items of Nagoya Plant, Komaki, Aichi Pref., Japan to Shikoku Plant, Sanuki, Kagawa Pref. It has also built a new building for distribution and thus embarked on efficiency improvement in both production and distribution. In addition to establishing this new framework, the Company has consolidated its products to eliminate losses and to improve its competitiveness in the medium to long term. (From an article in the Nikkan Jidosha Shimbun on Nov. 30, 2009)


R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 2,029 2,189 2,211
Belt Business 1,388 1,411 1,465

R&D Structure

-R&D is conducted through cooperation among the R&D Department, engineering departments of other divisions, as well as development departments in subsidiaries.
-R&D is conducted also through closely cooperating with universities and research institutes and through jointly developing products with other companies, especially on advanced technologies.

R&D Acitivities

Belt Business
-Continuous speed transmission belts having features of both resin and rubber.
-Auto pretensioners developed by the Company are used in a growing number of car models.
-Ribbed belts designed to reduce noise were developed based on sophisticated materials and enhanced structural designing.
-High rigidity timing belt series corresponding to high load and accuracy in determining position.
-Rubber back ribbed belts that create more freedom of design in the engine.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 3,073 4,507 2,996
Belt Business 2,961 4,241 2,671

Belt business
-The Company invested 1,038 million yen in a plant building and belt production facilities at its Shikoku Plant.
-The Company invested 72 million yen in facilities used to conduct experiments and research at its Ayabe Plant.
-The Company invested 718 million yen to enhance belt production facilities at plants outside Japan.

Planned Capital Investments (related to belts)

(As of Mar. 31, 2010)

Objective or equipment to be installed Planned amount of investment (in million JPY) Start Planned
Shikoku Plant
(Kagawa Pref., Japan)
Belts Upgrading plant environment 322 Dec.
Belts Upgrading equipment to manufacture belts 52 Apr.
Kobe Plant
(Hyogo Pref., Japan)
Belts Upgrading equipment to manufacture belts 75 June,
Ayabe Plant
(Kyoto, Japan)
Belts Upgrading testing equipment 52 June,
Belts Upgrading testing equipment 79 Aug.
*No significant increase is expected in terms of production capacity.