Mitsuboshi Belting Ltd. Business Report FY ended Mar. 2015
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 66,251 | 63,685 | 4.0 | - |
| Operating income | 7,133 | 6,124 | 16.5 | - |
| Ordinary income | 8,217 | 7,302 | 12.5 | - |
| Net income | 6,146 | 4,721 | 30.2 | - |
| Domestic Belt Division | ||||
| Sales | 27,268 | 26,567 | 2.6 | 1) |
| Operating income | 6,886 | 6,621 | 4.0 | - |
| Overseas Belt Division | ||||
| Sales | 29,355 | 27,388 | 7.2 | 2) |
| Operating income | 2,228 | 1,491 | 49.4 | - |
Factors
1) Domestic Belt Division
-Sales of belts for automotive production lines used to build new models were about the same as those of the past year. Sales of replacement belts decreased because of lower demand for belts needed by car owners to pass vehicle inspections and because of fewer models requiring belts.
2) Overseas Belt Division
-Asia: Sales of automotive belts increased as a result of focusing sales activities on the replacement market in emerging countries.
-U.S.: Even though actual sales of automotive belts decreased because of weak demand for replacement belts, the region posted a sales gain due to favorable currency translation because of the weak yen.
-Europe: Sales of both automotive belts and industrial-use belts decreased because of the uncertain political situation in Europe and the drastic drop in value of the Russian ruble.
Recent developments outside Japan
-The Company will strengthen its distribution network in Europe as the number of its customers is increasing there. The Company will relocate its distribution center and build a new larger center in Germany. The new center will be a two-story building with a total floor space of 5,000 sq. meters, which is approximately four times as large as the current floor space. It will start operating at full capacity at the end of July. In anticipation of the growing demand for belt products in Europe, the Company will increase the number and volume of belt items in stock to shorten delivery time. (From an article in the Nikkan Jidosha Shimbun on July 4, 2014)
Outlook for FY ending Mar. 2016 |
(in million JPY) |
| FY ending Mar. 31, 2016 (Forecast) |
FY ended Mar. 31, 2015 (Actual Results) |
Rate of Change (%) |
|
| Sales | 67,000 | 66,251 | 1.1 |
| Operating income | 6,700 | 7,133 | (6.0) |
| Ordinary income | 6,500 | 8,217 | (20.9) |
| Net income | 4,600 | 6,146 | (25.2) |
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Overall | 2,308 | 2,034 | 2,088 |
| -Domestic Belt Business | 1,201 | 1,189 | 1,224 |
| -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. 2015, the Company succeeded in developing the following products:
- Energy-saving V belts
- Auto-tensioners
- Timing belts for power-sliding door units
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Overall | 2,076 | 4,075 | 2,203 |
| -Domestic Belt Business | 1,164 | 954 | 460 |
| -Overseas Belt Business | 604 | 2,892 | 1,521 |
Domestic Belt Business
-Shikoku Plant: JPY 40 million for belt production facilities
-Kobe Plant R&D center: JPY 189 million for metal-machining facilities.
-Ayabe Production System Development Center: JPY 52 million for environmental updating/upgrading; and JPY 129 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, 2015) |
| Company/Facility (Location) |
Business Segment | Objective or equipment to be installed | Planned amount of investment (in million JPY) | Start | Planned completion |
| Ayabe Production System Development Center (Kyoto Pref., Japan) |
Domestic Belts | Constructing a belt testing facilty | 105 | May. 2015 |
Apr. 2016 |
| Shikoku Plant (Kagawa Pref., Japan) |
Domestic Belts | Upgrading belt production equipment | 35 | May. 2015 |
Aug. 2016 |
| MBL (USA) Corporation | Overseas Belt | Upgrading belt production equipment | 67 | Mar. 2015 |
Mar. 2016 |
| Suzhou Mitsuboshi Belting Co., Ltd. | Overseas Belt | Upgrading belt production equipment | 410 | Mar. 2015 |
Jul. 2015 |
| P.T. Seiwa Indonesia | Overseas Belt | Upgrading belt production equipment | 117 | Apr. 2015 |
Feb. 2016 |
Data
| Mar. 2015 | Mar. 2014 | Mar. 2013 | |
| Domestic Belt Business | 1,122 | 1,183 | 1,167 |
| Overseas Belt Business | 2,608 | 2,665 | 2,639 |
| Construction Materials Business | 51 | 50 | 48 |
| Other | 337 | 265 | 267 |
| In common | 199 | 193 | 190 |
| Total | 4,317 | 4,356 | 4,311 |
Sales by Segment |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | ||||
| Sales | Operating income |
Sales | Operating income |
Sales | Operating income |
|
| Domestic Belt Business | 27,268 | 6,886 | 26,567 | 6,621 | 25,692 | 5,991 |
| Overseas Belt Business | 29,355 | 2,228 | 27,388 | 1,491 | 20,636 | 784 |
| Construction Materials Business | 5,417 | 260 | 5,725 | 256 | 4,894 | 135 |
| Other | 4,210 | 61 | 4,003 | 124 | 4,356 | 151 |
| Adjusted amount | - | (2,303) | - | (2,370) | - | (1,841) |
| Total | 66,251 | 7,133 | 63,685 | 6,124 | 55,581 | 5,220 |
Sales by Geographic Area |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Japan | 36,430 | 35,882 | 34,733 |
| Asia | 19,252 | 17,647 | 13,239 |
| Others | 10,568 | 10,155 | 7,608 |
| Total | 66,251 | 63,685 | 55,581 |
(Note) Sales are based on customer locations, categorized by country or region.
Consolidated |
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (million yen) | 50,928 | 55,339 | 55,581 | 63,685 | 66,251 |
| Income from ordinary business activities (million yen) | 4,345 | 5,648 | 5,992 | 7,302 | 8,217 |
| Net income (million yen) | 3,363 | 3,294 | 3,735 | 4,721 | 6,146 |
| Comprehensive income (million yen) | 2,201 | 3,211 | 6,263 | 6,447 | 10,798 |
| Net assets (million yen) | 37,621 | 40,029 | 44,146 | 50,721 | 60,414 |
| Total assets (million yen) | 67,151 | 69,075 | 72,790 | 78,576 | 86,073 |
| Book value per share (yen) | 562.59 | 598.63 | 683.18 | 785.02 | 935.17 |
| EPS (yen) | 48.54 | 49.26 | 57.06 | 73.07 | 95.14 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 56.0 | 58.0 | 60.6 | 64.6 | 70.2 |
| ROE (%) | 8.9 | 8.5 | 8.9 | 10.0 | 11.1 |
| PER | 9.4 | 9.3 | 8.6 | 8.0 | 10.1 |
| Cash flow from operating activity (million yen) | 7,394 | 2,662 | 5,731 | 6,619 | 9,285 |
| Cash flow from investment activity (million yen) | (2,058) | (1,541) | (3,145) | (2,696) | (2,183) |
| Cash flow from financial activity (million yen) | (5,554) | (215) | (4,045) | (4,059) | (4,860) |
| Cash and cash equivalents at the end of FY (million yen) | 13,965 | 14,808 | 14,317 | 14,740 | 17,979 |
| Number of employees | 4,211 | 4,183 | 4,311 | 4,356 | 4,317 |
Non Consolidated
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (million yen) | 35,068 | 37,687 | 37,008 | 39,888 | 39,781 |
| Income from ordinary business activities (million yen) | 1,886 | 3,216 | 4,210 | 4,718 | 4,998 |
| Net income (million yen) | 1,322 | 2,230 | 3,320 | 3,436 | 3,861 |
| Paid-in Capital (million yen) | 8,150 | 8,150 | 8,150 | 8,150 | 8,150 |
| Number of stock outstanding (thousand) | 74,208 | 74,208 | 71,208 | 71,208 | 68,208 |
| Net assets (million yen) | 37,378 | 39,222 | 41,559 | 45,136 | 50,125 |
| Total assets (million yen) | 64,371 | 68,011 | 67,514 | 72,414 | 77,114 |
| Book value per share (yen) | 558.96 | 586.56 | 643.15 | 698.58 | 775.90 |
| Dividend per share (yen) | 12.00 | 14.00 | 14.00 | 16.00 | 20.00 |
| EPS (yen) | 19.09 | 33.36 | 50.72 | 53.18 | 59.77 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 58.1 | 57.7 | 61.6 | 62.3 | 65.0 |
| ROE (%) | 3.4 | 5.8 | 8.2 | 7.9 | 8.1 |
| PER | 23.8 | 13.7 | 9.7 | 11.0 | 16.1 |
| Payout ratio (%) | 62.9 | 42.0 | 27.6 | 30.1 | 33.5 |
| Number of employees | 724 | 710 | 701 | 696 | 707 |