Ichikoh Industries, Ltd. Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 (*) Rate of Change (%) Factors
Sales 88,698 85,121 4.2 -
Operating income 339 763 (55.6) -
Ordinary income 1,162 2,054 (43.4)
Net income 714 1,400 (49.0) -Income fell due to the Company's posting an extraordinary loss that resulted from disposing real estate and the insurance agency business of its subsidiary.
Automotive components
Sales 78,783 74,499 5.8 1)
Operating income (123) 777 -
*In the fiscal year that ended in March 2014, the Company changed the way it recorded its business results such as sales. Previously, it posted royalties and licensing income under non-operating income, revising the figures prior to the fiscal year that ended in March 2013.

1) Automotive parts
-In Japan, sales were lower in the first half of the year as a result of fewer vehicle units being produced because eco-car sales incentives ended; while sales increased in the second half of the year because of last-minute car-buying demand rose before the increase in consumption tax took effect.

-Outside Japan, profitability fell due to the launch of a new production plant at the Thai subsidiary.


-The Company is poised to increase supply to U.S. and European automakers' facilities in Asia. The company's Thai plant recently received an order through its partner Valeo S.A. to supply automotive lighting to Ford Motor Company's facility in the country. Delivery of the products has already started. For Ichikoh Industries, this is the first order from Ford. By further strengthening its partnership with Valeo, the company aims to win more orders from U.S. and European automakers in Asia. (From an article in the Nikkan Jidosha Shimbun on March 12, 2014)

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

Outlook for FY ending 2014

(in millions of JPY)
  FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of Change
Sales 78,800 83,392 (5.5)
Operating income (1,300) (965) -
Ordinary income 2,000 2,054 (2.6)
Net income 1,200 1,400 (14.3)


R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 5,450 5,537 4,890


R&D Structure

Department Functions
Technical Center
(within Isehara Plant)
Development of advance technology and new products
Production Engineering Development of products that reach commercialization

-The Company is strengthening its R&D structure in Asia as a means to respond to the trend seen in Japanese OEMs of migrating some of their R&D functions to locations outside Japan in line with the growth in their production levels outside Japan. In addition, this move by the Company is also a means to increase its product sales at local OEMs. The Company set up a technical center in Thailand in October 2012. The new center, where 100 engineers are working, is responsible for developing products meeting the local market needs in each of countries in the ASEAN Region.

R&D Activities

Main R&D Projects in FY ended Mar. 31, 2014
-Lighting equipment and signals
  • Development of a mirror replacement camera system.
  • Research on situation-sensitive light distribution properties and evaluation systems.
  • Development of high-definition automotive signals.
  • Development of new light sources.

View-related Devices

  • Development of intelligent mirror system.
  • Development of view-related systems, utilizing functional thin membranes, electronics, etc.
  • Development of car control systems and control devices.
  • Development of vehicle perimeter sensing and security devices.
  • Development of display devices using new light sources such as LED.
  • Development of mechatronics devices utilizing membrane/precision molding technologies.

Technology licensing-out Agreement

(As of Mar. 31, 2014)
Company Name Country Technology Coverage Contract Period 
Foshan Ichikoh Valeo Auto Lighting Systems Co., Ltd. China Manufacturing technologies for automotive lamps Licensing of patents and expertise 5 years from Mar. 24, 2006 (renewal every 3 years)

Investment Activities

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 8,727 4,845 3,322

-The Company invested mainly in facilities and equipment in its automotive products business in order to install facilities, save on labor, and rationalize operations involving new products and model change.

-Major investment in FY ended Mar. 31, 2014 are as follow:
Plant Location Segment (business division) Amount of investment
(in millions of JPY)
Isehara Plant Kanagawa Pref.,
Automotive parts 2,614
Mirror  Plant Gunma Pref.,
Automotive parts 206
Fujioka Plant Gunma Pref.,
Automotive parts 1,206
Ichikoh Industries (Thailand) Co., Ltd. Chonburi,
Automotive parts 2,207