Mitsuboshi Belting Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of Change (%) Factors
Sales 50,928 45,267 12.5 -
Operating income 4,871 1,594 205.6 -
Ordinary income 4,345 1,539 182.3 -
Net income 3,363 661 408.8 -
Domestic Belt Division*
Sales 25,417 21,946 15.8 -The Company recorded a year-on-year increase in sales due to the higher sales volume that resulted from production increases of vehicles, following a recovery in demand; and due to strong sales of replacement products.
Operating income 5,651 2,975 89.9 -
Overseas Belt Division*
Sales 17,244 15,078 14.4 -The Company recorded strong performance as a result of strengthening its sales structure that must meet the growing demand for automotive belts and general, industrial-use belts in the Asian Region, which continues to grow.
Operating income 1,275 440 189.8  -
*Internal sales among the regions do not take into account foreign currency translation.


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 2,070 2,029 2,189
Domestic Belt Business 1,215 1,388 1,411
Overseas Belt Business

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.
 -V-belts, designed for agricultural use, that offer improved performance in terms of resistance to abrasion and wear.
-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)
  FY2010 FY2009 FY2008
Overall 1,591 3,073 4,507
Domestic Belt Business 935 2,961 4,241
Overseas Belt Business 473

Belt business in Japan
The Company made capital improvements as follows:
-Invested 219 million yen to make environmental upgrades to facilities and equipment at its Shikoku plant.
-Invested 65 million yen in facilities and equipment manufacturing belts at its Kobe Plant.
-Invested 50 million yen in facilities and equipment for testing and R&D at its Ayabe operations.

Belt business outside Japan
-The majority of the capital investments that the Company made was done outside Japan in equipment and facilities producing belts.

-The Company will increase production of automotive power transmission belts through approx. 30% capacity expansion from early 2011 at its three plants in Indonesia and Thailand. Approx. 800 million yen will be invested in total in order to respond to growing production of automobiles and motorcycles in the ASEAN region. The Company will introduce new facilities to its three consolidated subsidiaries: Star Technologies Industrial Ltd. (STI, Thailand), P.T. Seiwa Indonesia (Indonesia) and P.T. Mitsuboshi Belting Indonesia (MBI, Indonesia). Production of timing belts, V-belts for engine accessories, CVT belts for motor scooters as well as machinery belts will be increased.
(From an article in the Nikkan Jidosha Shimbun on November. 19, 2010)

Planned Capital Investments (related to belts)

(As of Mar. 31, 2011)

Objective or equipment to be installed Planned amount of investment (in million JPY) Start Planned
Shikoku Plant
(Kagawa Pref., Japan)
Domestic Belts Upgrading belt production equipment 52 Apr.
Ayabe Plant
(Kyoto, Japan)
Domestic Belts Upgrading testing equipment 79 Aug.
*No significant increase is expected in terms of production capacity.