Mitsuboshi Belting Ltd. Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of Change (%) Factors
Sales 63,685 55,581 14.6 -
Operating income 6,124 5,220 17.3 -
Ordinary income 7,302 5,992 21.9 -
Net income 4,721 3,735 26.4 -
Domestic Belt Division
Sales 26,567 25,692 3.4 1)
Operating income 6,621 5,991 10.5 -
Overseas Belt Division
Sales 27,388 20,636 32.7 2)
Operating income 1,491 784 90.1  -

1) Domestic Belt Division
-Sales of automotive belts increased. This was because the demand for last-minute, new-car purchases before the consumption tax increased rose considerably and triggered more new-car sales. However, due to the increase in vehicle models not equipped with belts, sales of belts for production lines assembling new vehicles were around the same level as those of the previous year.

-Sales of non-factory-installed belts were slightly lower year-on-year because the demand that usually arises in line with vehicle inspections didn't materialize.

2) Overseas Belt Division
-Europe: Sales of automotive belts were lower year-on-year on a local-currency basis.

-USA: Sales of both automotive and industrial belts were strong.

-Asia: Sales of both automotive and general, industrial-use belts increased, mainly in China and Indonesia, as a result of the Company's aggressive sales activities.

-Overall sales on a local-currency basis were higher year-on-year. In addition, favorable currency translation due to the weak yen also boosted the recorded level of sales for the year.


First-time for new timing belt with oil-resistant properties to be installed
-The Company will make extensive marketing efforts for its new timing belt in Europe. The timing belt with high oil-resistant properties has already been chosen for a European automaker's flagship model, which is scheduled for release in 2015. The model will be the first vehicle that will feature the new timing belt. The rubber timing belt eliminates the need to add a guide unit, a component used in conventional timing chains made from metal. In addition to reducing the number of parts used in the product, switching from a metal chain to a rubber belt decreases the product weight by 35 percent and also reduces operating noise. In addition, the rubber timing belt reduces energy loss with its excellent energy-transfer efficiency, which is 3 to 5 percent higher than metal timing chains. The resulting increase in fuel economy is expected to help automakers make environmentally friendly vehicles that meet stricter fuel-economy standards, especially in Europe. (From an article in the Nikkan Jidosha Shimbun on March 4, 2014)

Outlook for FY ending Mar. 2015

(in million JPY)
  FY ending Mar. 31, 2015
FY ended Mar. 31, 2014
(Actual Results)
Rate of Change
Sales 64,000 63,685 0.5
Operating income 6,400 6,124 4.5
Ordinary income 6,000 7,302 (17.8)
Net income 4,200 4,721 (11.0)


R&D Expenditure

(in million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 2,034 2,088 2,092
-Domestic Belt Business 1,189 1,224 1,253
-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 activities for both the domestic and overseas belt businesses are being conducted mainly at the Company itself and at Mitsuboshi Belting Giken Co., Ltd.

R&D Activities

Domestic Belt Business
-In FY ended Mar. 2014, the Company succeeded in developing the following products:
  • Energy-saving V belts
  • Auto-tensioners
  • Low-friction ribbed belts
  • Timing belts for ultra high-loads

Investment Activities

Capital Expenditure

(in million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 4,075 2,203 1,654
-Domestic Belt Business 954 460 625
-Overseas Belt Business 2,892 1,521 894

Domestic Belt Business
-Nagoya Plant: JPY 51 million for belt production facilities, and JPY 83 million for plastics production facilities
-Shikoku Plant: JPY 84 million for belt production facilities
-Ayabe Facility: JPY 25 million for testing and R&D facilities

Oversees Belt Business
-A majority of the capital investment the Company made was for renewing older, worn-out production facilities.

Planned Capital Investments

(As of Mar. 31, 2014)
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 80 May
MBL (USA) Corporation Overseas Belt Upgrading belt production equipment 53 Mar.
P.T. Mitsuboshi Belting Indonesia Overseas Belt Upgrading belt production equipment 45 Feb.
P.T. Seiwa Indonesia Overseas Belt Upgrading belt production equipment 31 Mar.