Ichikoh Industries, Ltd. Business Report FY ended Mar. 2016

Financial Overview

(in million JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 Rate of Change (%) Factors
Sales 102,143 94,166 8.5 -Sales increased year-over-year (y/y) mainly because of higher sales at the automotive parts business.
Operating income 2,429 514 372.6 Operating income increased y/y due the following factors:
-higher sales in Japan
-smaller deficit at the Thai subsidiary
Ordinary income 3,007 3,118 (3.5) Ordinary income decreased y/y due to the following factors:
-the Company posted losses instead of gains from currency translation
-Smaller non-operating loss including investment loss on equity method
Net income 2,505 2,363 6.0 -
Automotive components
Sales 92,983 84,330 10.3 Sales increased y/y due to the following factors:
-brisk orders received in Japan
-release of new product at the Thai subsidiary
-the addition of a subsidiary that had been previously accounted for under the equity method to the Company's full-year consolidated results.
Operating income 2,275 274 730.3 Operating income increased significantly y/y due to the following factors:
-higher sales in Japan
-smaller deficit at the Thai subsidiary

Mid-term business plan

-The Company announced that it has set a sales target of JPY 130 billion for FY 2019 ending in March 2020, an increase of approximately 40% from FY 2014. The Company also aims to raise its operating profit margin to 7.0% from the FY 2014 level of 0.5%. The Company recently received new orders mainly for lamps and door mirrors thanks to its enhanced cost competitiveness and the releases of new LED products with a better design. In order to achieve these targets, the Company aims to increase its sales to Japanese automakers' plants in foreign markets. The Company's facility in Thailand, which started production in 2013, has been boosting its production volume for new orders. Its Chinese door mirror plant, which was converted into a wholly-owned subsidiary of Ichikoh Industries in December 2014, is also expected to contribute to pushing up the Company's sales. The share of overseas business of the company's total sales is expected to increase 23% in FY 2019 from the FY 2014 level of 16%. (From an article in the Nikkan Jidosha Shimbun on December 7, 2015)

Product development

Mono LED all-in-one standard LED light source
-Used on models including the Prius, Alphard, and RAV4 from Toyota; the Pajero Sport from Mitsubishi Motors, and the Forester from Fuji Heavy Industries
-All-in-one standard LED light source consisting of LED chips, drive circuits, and heat dissipation device
-The winner of Automotive News Pace Award (U.S.) and Automotive Engineering Award (Japan). These awards were given in recognition of the innovative technology that contributes to wider use of LEDs.

-The Company has developed a new general‐purpose LED light source unit named "Mono LED unit." The new general‐purpose unit integrates LED chips, a substrate, and a heat sink with a socket. The Mono LED unit can be applied to position lamps, taillights, blinkers and other exterior equipment excluding headlights. The Mono LED unit is the world's first general‐purpose unit commercialized as a LED light source. The unit has been first selected for use in position lamps on Toyota Motor Corporation's Alphard and Vellfire. The Company will actively propose the Mono LED unit by taking advantage of the compact size and superior cost competitiveness so that the new product is applied to a wide range of models. (From an article in the Nikkan Jidosha Shimbun on June 2, 2015)

-The Company will begin offering its general-purpose LED light source units globally. The Company will formally start to offer its products to European carmakers through France-based Valeo, a group company, and is aiming to win orders from a wide range of OEMs. LED light sources, which are becoming increasingly common, are designed exclusively for each car model. The Company's newly-developed LED light source unit is the world's first general use product, and has been adopted for Toyota Motor Corporation's new Prius. Through its alliance with Valeo, the Company aims to receive orders for different models and increase its share in the LED market. (From an article in the Nikkan Jidosha Shimbun on March 24, 2016)

-The Company received an order for the rear-combination lamps of the all-new Toyota Prius, which will go on sale in December 2015 in Japan. This is Ichikoh's first order to supply its parts for use in the Prius, and this order will be the largest quantity of parts per model for the Company. In response to the order, the supplier invested JPY 2.5 billion in its Fujioka Plant (Fujioka City, Gunma Pref.) to install an additional building and production line at the plant. These additional facilities are intended for mass production of rear-combination lamps for the all-new Prius. The rear-combination lamp fitted on the all-new Prius features a distinctive design incorporating LEDs. Ichikoh's strong competency in enhanced design flexibility with mass producing LED products led to secure the order. (From an article in the Nikkan Jidosha Shimbun on December 3, 2015)

Camera Monitor System
-A safety system for the next generation that replaces mirrors. The system offers camera images and guide to an in-vehicle monitor to assist the driver. The elimination of side mirrors will improve the design and aerodynamic characteristics of vehicles.

-The Company has developed an electric mirror that displays the rearward view on a monitor to replace rearview mirrors. The newly developed mirrors will be supplied as in-line assembly parts to Japanese automakers from July 2016. This is the first time that the Company has commercialized an electric mirror as original equipment. The Company will also begin the development of electric side mirrors. A change in laws for automotive mirrors that will come into effect in June 2016 will allow the use of camera images in place of side mirrors. This is expected to be popular, since the elimination of side mirrors will improve the design and aerodynamic characteristics of vehicles. Ichikoh has positioned side mirrors as its main business after lamps. The Company intends to increase its share of the side mirror market in Japan to 16% from the current 13% by 2019, and made a Chinese side mirror manufacturing company a wholly-owned subsidiary in December 2014. (From an article in the Nikkan Jidosha Shimbun on February 24, 2016)

Front lamps
-Glare-free high beam (improves safety and functionality)
-Stylish head lamps (offers greater design flexibility)
-Low cost standard modules (low cost, environmentally friendly products)

Rear Lamps
-Laser marking (additional safety feature)
-Information lighting (communication)
-Window lighting, Body skin lighting (design improvement)

Development road map to 2025

Front lamps Signal lamps Interior lamps Mirrors/Cameras
(Large and luxury vehicles)
Picture beam Kinetic signal lamp Driver support light Camera monitor system
(Medium-sized vehicles)
ThinLED unit Window lighting Door panel illumination New structure exterior mirror
(Small vehicles)
PeopLED module MonoLED unit LED standard room light Low cost glass actuator

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014
Overall 6,508 6,172 5,450
-Automotive components 6,202 5,879 5,353

-In FY ending March 2017, the Company plans to spend JPY 6,900 million on R&D.

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
Commercialization of products that the Company developed

-The Company will add an automotive door mirror development function to its plant in Wuxi, Jiangsu province, China. The development base will be the Company's first own door mirror development base outside Japan and second own overseas development base after the lamp development base in Thailand. Ichikoh Industries regards door mirrors as its second flagship products, following automotive lamps. The Company localizes development of door mirrors for the promising Chinese market in order to expand its sales in China by 40% to JPY 10 billion by 2018. (From an article in the Nikkan Jidosha Shimbun on March 10, 2015)

R&D Activities

Major R&D Projects in FY ended Mar. 31, 2016
-Lighting equipment and signals

  • Development of highly functional automotive lamp devices that offer improved safety and security
  • Development of high-definition automotive signals that capitalize on car design
  • Research on situation-sensitive light distribution properties and evaluation systems
  • Development of environmentally friendly new light sources

-View-related Devices

  • Development of camera monitor system (CMS) as a mirror replacement (in connection with a change in laws)


  • Development of LED driver modules (LDMs) and electronic control units (ECUs)

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014
Overall 9,717 8,991 8,727

-Capital expenditure for FY ended March 2016 totaled JPY 9.7 billion. JPY 5.1 billion was invested in dies, JPY 3.7 billion was invested in machines and equipment, and JPY 900 million was invested in buildings.

-Capital expenditure for FY ending March 2017 is expected to reach JPY 17.5 billion, including JPY 7 billion for dies, JPY 7.8 billion for machines and equipment, and JPY 2.7 billion for buildings.

-In FY ended March 2016, 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 investments in FY ended Mar. 31, 2016 are as follows:

Plant Location Segment (business division) Amount of investment
(in million JPY)
Isehara Plant Kanagawa Pref.,
Automotive parts 2,857
Fujioka Plant Gunma Pref.,
Automotive parts 4,526

Major investment projects

(as of March 31, 2016)
Segment (business division) Planned amount of investment
(in million JPY)
From To
(Isehara, Kanagawa)
Auto parts production facility 12,116 April 2016 March 2017
Kyusyu Ichikoh Industries Ltd.
(Nakatsu, Oita)
Auto parts production facility 2,767 October 2013 March 2017

Financial forecast for FY ending March 2017

(in million JPY)
Y ending Mar. 2017
FY ended Mar. 2016
Rate of change
ales 113,300 102,143 10.9
Operating income 2,800 2,429 15.3
Ordinary income 3,900 3,007 29.7
Net income 3,100 2,505 23.7

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

-Japan: Sales are expected to increase significantly, while profit is projected to remain at the same level as FY ended March 2016 due to planned upfront investment.

-Overseas: Sales and profit are expected to increase in the ASEAN market (die sales are not factored in). The Company aims to improve bottom line profitability in Thailand on a full-year basis.

Market share in Japan
-The Company's share in the rear lamp market in Japan is increasing (According to the Company's survey)

  • FY ended March 2015: Rear lamps 20.6%, front lamps 14.0%, Mirrors 11.4%
  • FY ended March 2016: Rear lamps 22.4%, front lamps 14.5%, Mirrors 11.5%
  • Forecast for FY ending March 2017: Rear lamps 24.5%, front lamps 14.5%, Mirrors 12.1%