Koito Manufacturing Co., Ltd. Business Report FY2009
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2009 | FY2008 | Rate of Change (%) |
Factors | |
Overall | ||||
Sales | 408,430 | 400,232 | 2.0 | - |
Operating income | 36,054 | 9,131 | 294.9 | - |
Ordinary income | 35,983 | 9,275 | 288.0 | - |
Current net income | 6,217 | 4,042 | 53.8 | - |
Automotive Lighting-related | ||||
Sales | 440,757 | 413,735 | 6.5 | -Amid a decline in automobile production in global markets, mainly in Japan, North America and Europe, an increase in demand for environmentally friendly vehicles like hybrids propped up sales. |
Operating income | 31,015 | 6,524 | 375.4 | - |
Recent Developments in Japan
-The Company said that operations at the No. 2 Koito Kyushu Plant in Saga, which have been suspended since this spring, will be resumed from Aug. Although the No.2 plant started operations in Sep. 2008, the plummeting production volume due to downturns in the global market that originated in the U.S. has forced the plant to be idled and its production line has been moved to the No.1 Plant since Mar. 2009. The resumption was decided given an increasing trend in automobile production in the Kyushu area.(From an article in the Nikkan Jidosha Shimbun on July 30, 2009)>>>Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 17,300 | 18,800 | 20,889 |
Automotive business | 16,600 | 17,500 | 19,750 |
R&D Structure
Automotive lighting related business-Research and development activities are performed globally at the Company's four principle R&D facilities: the production engineering division and research laboratory of Koito Manufacturing which plays a central role of these activities, the Technical center of North America Lighting Inc. in the United States, Koito Europe NV technical section in Belgium, and the Technical center of Shanghai Koito Automotive Light, Inc. in China.
-The number of R&D staff in the entire Group is 2,124.
-The Company has begun to consider construction of a new technical center for comprehensive research and development activities in Guangzhou, China by the end of Mar. 2012. The Company, which already has the Shanghai Technical Center and is advancing localization of R&D activities in China, has determined it necessary to set up a second technical center in China dedicated to the China South and its vicinity, where five Japanese automakers are located. If a facility is constructed, it will be the Company's 5th technical center, following those in Japan, the U.S., Europe and Shanghai. (From an article in the Nikkan Jidosha Shimbun on Sep. 9, 2009)
R&D Activities
Automotive lighting-related business1. Development of core automotive lighting technologies such as optical technology, electronics, and mechanism.
2. Development of manufacturing technology
3. Development of simulation technologies, etc.
Licensing of Technology from Other Companies
(As of Mar. 31, 2010)
Company | Products | Associates | Contract Period |
Electro Optica, S.A. de C.V (Mexico) |
Automotive Lighting and Accessories | Provide technological information, sales and manufacturing license | 19 years from Apr. 18, 1992 |
Industrias Arteb S.A (Brazil) |
Automotive Lighting and Accessories | Provide technological information, sales and manufacturing license | 5 years from Jun. 8, 2006 |
Farba Otomotiv Aydinlatma ve Plastik Fabrikalari A.S. (Turkey) |
Automotive Lighting and Accessories | Provide technological information, sales and manufacturing license | 15 years from Oct. 24, 1997 |
Automotive Lighting UK Ltd. (UK) |
Automotive Lighting and Accessories | Provide technological information, sales and manufacturing license | 18 years from Feb. 24, 1993 |
Hella Australia Pty Ltd. (Australia) |
Automotive Lighting and Accessories | Provide technological information, sales and manufacturing license | 20 years from May 1, 1994 |
Lumotech (Pty.) Ltd. (South Africa) |
Automotive Lighting and Accessories | Provide technological information, sales and manufacturing license | 5 years from May 4, 2006 |
EP Polymers (M) Sdn. Bhd. (Malaysia) |
Automotive Lighting and Accessories | Provide technological information, sales and manufacturing license | 20 years from Apr. 29, 1995 |
AuVitronics Ltd. (Pakistan) |
Automotive Lighting and Accessories | Provide technological information, sales and manufacturing license | 10 years from Mar. 7, 1995 |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY2009 | FY2008 | FY2007 | |
Overall | 15,700 | 31,100 | 27,677 |
Automotive business | 14,500 | 29,200 | 26,295 |
-The Company made investments in equipment for new products, model changes, productivity and quality improvement, rationalization and cost reductions.
Investments Outside Japan
-The Company has started a study of building a new plant to produce automobile lamps in the northern part of China, including Tianjin, against the backdrop of a brisk new car market in China. Watching carefully the Chinese and global market conditions, the lamp maker is aiming to inaugurate its operations as early as by the end of 2012 fiscal year. The Company already has three local makers of automobile lamps in China, which supply headlamps for 3 million vehicles. Given their production capacity nearing the limit due to expanding new car production in China, the Company has begun to seriously consider construction of a new facility. The new plant is expected to produce lamps for half a million vehicles per year with an investment of 5 billion yen. Following a feasibility study on its location and management style, the supplier is looking to make a final decision by the end of fiscal 2010 and start its operations in fiscal 2012. (From an article in the Nikkan Jidosha Shimbun on Dec. 28, 2009)-The Company will accelerate its plans to establish small-scale plants that are capable of producing lamps for 100,000 to 200,000 vehicles per year, so as to cater to the needs of emerging automotive markets. Up until recently, the Company has been enhancing its global production structure by adding facilities with an annual production capacity of 500,000 sets. Investment in each plant reached around 5 billion yen. Having almost completed its major global expansion projects, the Company is now set to establish a number of small-scale, low cost, yet profitable new plants to support the emerging markets. It is targeting Brazil and other countries in South America, Russia, Southeast Asian countries, and Turkey. The Company intends to develop an optimized production structure by responding to the needs of respective markets, including use of low-cost halogen lamps. (From an article in the Nikkan Jidosha Shimbun on Jan. 6, 2010)
Planned Capital Investments
(As of Mar. 31, 2010)
Company / Plant | Equipment to be introduced | Estimated amount of investment (in million JPY) |
Project Period | |
From | To | |||
Shizuoka Plant (Shizuoka Pref., Japan) |
Manufacturing equipment for automotive lamps, etc. | 1,672 | Apr. 2010 |
Mar. 2011 |
Haibara Plant (Shizuoka Pref., Japan) |
Manufacturing equipment for automotive lamps, etc. | 1,991 | Apr. 2010 |
Mar. 2011 |
Koito Kyushu Ltd. (Saga Pref., Japan) |
Manufacturing equipment for automotive lamps, etc. | 3,170 | Mar. 2010 |
Mar. 2011 |
North American Lighting Inc. (Illinois, USA) |
Manufacturing equipment for automotive lamps, etc. | 1,360 | Mar. 2010 |
Mar. 2011 |
Shanghai Koito Automotive Lamp Co., Ltd. (Shanghai, China) |
Manufacturing equipment for automotive lamps, etc. | 3,928 | Mar. 2010 |
Mar. 2011 |
Thai Koito Co., Ltd. (Samutprakarn, Thailand) |
Manufacturing equipment for automotive lamps, etc. | 1,375 | Mar. 2010 |
Mar. 2011 |