Ichikoh Industries, Ltd. Business Report FY ended Mar. 2017

Financial Overview

(in million JPY)

	FY ended Mar. 31, 2017	FY ended Mar. 31, 2016	Rate of Change (%)	Factors
Overall
Sales	113,195	102,143	10.8	-
Operating income	4,809	2,429	98.0	-
Ordinary income	5,233	3,007	74.0	-
Net income	5,916	2,505	136.1	-
Automotive components
Sales	104,666	92,983	12.6	-Sales increased because of receiving more product orders in Japan and because business performance at subsidiaries in the ASEAN Region improved.
Operating income	4,794	2,275	110.7	-

Contracts

-The Company announced that it has started producing its digital inside camera monitor system for Nissan Motor's new Serena. The new electronic rear-view mirror is manufactured at its Mirror Plant in Gunma Prefecture. Monthly production volume is expected to reach 16,000 units in November. Compared to existing analog-type inside camera monitors, the new system has a higher-definition screen display and doubles the number of images that can be displayed on the monitor from 30 to 60 per second to provide smoother motion images. The mirror can be easily switched from a standard inside mirror to a liquid-crystal display, providing both rearward visibility and rear seat views. (From an article in the Nikkan Jidosha Shimbun on September 23, 2016)

Development road map to 2025

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

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2017	FY ended Mar. 31, 2016	FY ended Mar. 31, 2015
Overall	6,540	6,508	6,172
-Automotive components	6,216	6,202	5,879

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

R&D Activities

Major R&D Projects in FY ended Mar. 31, 2017
-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)

-Opto-mechatronics

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

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2017	FY ended Mar. 31, 2016	FY ended Mar. 31, 2015
Overall	12,513	9,717	8,991

-In the fiscal year that ended in March 2017, the Company made a capital investment of JPY 12,513 million mainly in the automotive parts business to switchover to producing new products, respond to redesigned vehicle models, reduce labor costs, and streamline operations.
-The details are outlined below.

Plant	Location	Segment (business division)	Amount of investment (in million JPY)
Isehara Plant	Kanagawa Pref., Japan	Automotive parts	3,830
Fujioka Plant	Gunma Pref., Japan	Automotive parts	4,966
Kyusyu Ichikoh Industries	Ohita Pref., Japan	Automotive parts	2,886

Major investment projects

(as of March 31, 2017)

Company/facility (location)	Segment (business division)	Planned amount of investment (in million JPY)	From	To
Headquarters (Isehara, Kanagawa)	Auto parts production facility	9,905	April 2017	December 2017

-The Company announced that PT. Ichikoh Indonesia, a subsidiary of Indonesia which is the joint venture with a local company PT. Pioneer, has been made a contract to purchase all their 30% shares and made it a wholly owned subsidiary. The subsidiary is on the way of investing the amount of JPY 1.1 billion from FY 2016 to FY 2017. (From a press release on April 20, 2017)

Financial forecast for FY ending March 2018

(in million JPY)

	FY ending Mar. 2018 (Forecast)	FY ended Mar. 2017 (Actual Results)	Rate of change (%)
Overall
ales	90,900	113,195	(19.7)
Operating income	3,800	4,809	(21.0)
Ordinary income	4,300	5,233	(17.8)
Net income	3,700	5,916	(37.5)