Koito Manufacturing Co., 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 | |
| Overall | ||||
| Sales | 813,477 | 706,470 | 15.1 | - |
| Operating income | 82,218 | 64,155 | 28.2 | - |
| Ordinary income | 84,296 | 66,880 | 26.0 | - |
| Current net income | 46,303 | 36,060 | 28.4 | - |
| Sales by Segment | ||||
| Japan | 300,737 | 280,119 | 7.4 | -Sales increased due to the growing use of LED lamps, even though automobile unit-production decreased. |
| North America | 183,158 | 136,902 | 33.8 | -Sales increased due to greater production volume and the Company's receiving more orders because of the recovery in automotive demand, in addition to the growing use of LED lamps and the launch of production in Mexico. |
| China | 217,497 | 185,248 | 17.4 | -Sales increased due to an increase in vehicle production after the tax reduction on small cars, and the Company's receiving more new orders, and the growing use of LED lamps. |
| Asia | 77,890 | 71,865 | 8.4 | -Although vehicle production decreased in ASEAN countries, sales were higher due to the Company's receiving more new orders in Thailand and Indonesia and the growing use of LED lamps for motorcycles. |
| Europe | 34,194 | 32,335 | 5.7 | -Sales were higher due to strong automotive sales in Europe, as well as because of the Company's receiving more new orders and the growing use of LED lamps. |
Overseas investments
-Hubei Koito Automotive Lamp Co., Ltd. (established in 2014) completed a new plant, and began producing automotive lighting products in June 2016.
Product development
OLED tail lamps
-The Company will put tail lamps using organic ELs (OLED) to practical use between 2017 and 2018. The Company intends to meet automakers' needs to improve vehicle design by replacing LED commonly used in tail lamps with surface-emitting OLEDs. In its next-generation luminous source development, the Company has been engaged in applying lasers to headlamps. The Company will advance the development of OLEDs as one of next-generation light sources and is working toward practical use of stop lamps and blinkers using OLEDs by 2020, which are required to have higher luminance than tail lamps. (From an article in the Nikkan Jidosha Shimbun on November 25, 2015)
Expanding sales of Adaptive Driving Beam (ADB) headlamps
-In 2015, the Company developed and began mass producing LED Array ADB that controls LED chips individually to change light distribution, and rotary shade ADB that controls light distribution patterns with the position of the rotary shade in the lamp unit.
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Overall | 32,600 | 27,900 | 24,700 |
| -Japan | 14,800 | 13,200 | 12,800 |
| -North America | 7,000 | 5,800 | 4,500 |
| -China | 7,300 | 5,500 | 4,400 |
| -Asia | 3,000 | 2,800 | 2,500 |
| -Europe | 300 | 300 | 300 |
R&D Structure
-As of the end of March 2016, 2,862 employees are conducting R&D activities.
-R&D activities are conducted mainly at the following 5 locations:
- Japan: Technology Center
- USA: Technical center at North American Lighting, Inc.
- Europe: Technical Section at Koito Czech s. r. o.
- China: Technical Center at Shanghai Koito Automotive Lamp Co., Ltd.
- Thailand: Technical Center at Thai Koito Company Limited.
Integration of Belgian operations into Koito Czech
-The Company announced that it will integrate the functions of Koito Europe NV, its sales and development subsidiary in Leuven, Belgium, into Koito Czech s.r.o., its manufacturing subsidiary in Zatec, the Czech Republic, in April 2015. Koito Europe NV will be dissolved in September 2015. As a result of this reorganization, the Company's sales and development activities for the European market, which are currently carried out at Koito Europe NV, will be performed at its two manufacturing companies, the Czech subsidiary and Koito Europe Limited in the UK. (From an article in the Nikkan Jidosha Shimbun on December 1, 2014)
R&D Activities
-Developing core technologies in the field of automotive lighting, namely in the areas of optics, electronics, machinery, structural mechanics, etc.
-Development of new light sources such as laser technologies and OLEDs
- Development of headlamps using lasers: Laser's advantage is their high luminance, which enables headlamps to offer excellent long-distance visibility as well as super-compact innovative designs.
- Development of signal lamps using an organic EL (OLED): Organic ELs (OLEDs) emitting light from the surface, are super-thin and light-weight. They can be designed to fit curved surface. They are transparent when turned off. They broaden the design possibilities of signal lamps, including glowing logos and patterns.
-Developing autonomous drive-related technology
-Developing systems that will serve as ITS equipment
-Developing systems that respond to the Internet
-Developing new products for new business areas
-Developing core technologies in the field of automotive lighting, namely in the areas of optics, electronics, etc.
Technology Licensing-out Agreement |
(As of Mar. 31, 2016) |
| Company | Agreement details | Contract Period |
| Hella Automotive Mexico S.A. de C.V. (Mexico) |
Provide technological information, sales and manufacturing license | 24 years from Apr. 22, 1992 |
| Industrias Arteb S.A (Brazil) |
Provide technological information, sales and manufacturing license | 5 years from Oct. 4, 2012 |
| Farba Otomotiv Aydinlatma ve Plastik Fabrikalari A.S. (Turkey) |
Provide technological information, sales and manufacturing license | 21 years from Oct. 24, 1997 |
| Hella Australia Pty Ltd. (Australia) |
Provide technological information, sales and manufacturing license | 25 years from May 1, 1994 |
| Lumotech (Pty.) Ltd. (South Africa) |
Provide technological information, sales and manufacturing license | 10 years from May 4, 2006 |
| EP Polymers (M) Sdn. Bhd. (Malaysia) |
Provide technological information, sales and manufacturing license | 25 years from Apr. 29, 1995 |
| AuVitronics Ltd. (Pakistan) |
Provide technological information, sales and manufacturing license | 15 years from Mar. 7, 2005 |
| AMS Co., Ltd. (Korea) |
Provide technological information, sales and manufacturing license | 7 years from Jan. 16, 2013 |
| AVTOSVET Limited Liability Company (Russia) |
Provide technological information, sales and manufacturing license | 5 years from Mar. 21, 2013 |
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Japan | 16,300 | 15,000 | 10,100 |
| North America | 9,000 | 16,800 | 8,400 |
| China | 8,700 | 9,700 | 9,700 |
| Asia | 6,000 | 5,100 | 4,900 |
| Europe | 1,000 | 1,600 | 1,300 |
| Total | 41,300 | 48,400 | 34,500 |
Planned Capital Investment |
(As of Mar. 31, 2016) |
| 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 | 2,688 | Apr. 2016 |
Mar. 2017 |
| Haibara Plant (Shizuoka Pref., Japan) |
Manufacturing equipment for automotive lamps | 6,412 | Apr. 2016 |
Mar. 2017 |
| Sagara Plant (Shizuoka Pref., Japan) |
Manufacturing equipment for automotive lamps | 3,121 | Apr. 2016 |
Mar. 2017 |
| Koito Kyushu Ltd. (Saga Pref., Japan) |
Manufacturing equipment for automotive lamps | 11,174 | Mar. 2016 |
Mar. 2017 |
| North American Lighting Inc. (Illinois, USA) |
Manufacturing equipment for automotive lamps | 1,011 | Mar. 2016 |
Mar. 2017 |
| North American Lighting Mexico, S.A. de C.V. (San Luis Potosi, Mexico) |
Manufacturing equipment for automotive lamps | 1,460 | Mar. 2016 |
Mar. 2017 |
| Shanghai Koito Automotive Lamp Co., Ltd. (Shanghai, China) |
Manufacturing equipment for automotive lamps | 3,629 | Mar. 2016 |
Mar. 2017 |
| Guangzhou Koito Automotive Lamp Co., Ltd. (Guangzhou, China) |
Manufacturing equipment for automotive lamps | 2,022 | Mar. 2016 |
Mar. 2017 |
| Hubei Koito Automotive Lamp Co., Ltd. (Xiaogan City, China) |
Manufacturing equipment for automotive lamps | 3,657 | Mar. 2016 |
Mar. 2017 |
| PT. Indonesia Koito (West Java, Indonesia) |
Manufacturing equipment for automotive lamps | 1,374 | Mar. 2016 |
Mar. 2017 |
| India Japan Lighting Pvt. Ltd. (Tamil Nadu, India) |
Manufacturing equipment for automotive lamps | 1,176 | Mar. 2016 |
Mar. 2017 |
Financial forecast for FY ending March 2017 |
(in million JPY) |
| FY ending Mar. 2017 (Forecast) |
FY ended Mar. 2016 (Result) |
Rate of change (%) |
||
|
Sales |
790,000 | 813,477 | (2.9) |
-Sales are expected to rise in Japan due to increased new business and growth in use of LED lamps for automobiles. However, despite new orders and growth in use of LED lamps for automobiles, overseas sales are forecast to decrease y/y due to losses from exchange-rate translation. |
| Operating income | 77,000 | 82,218 | (6.3) |
-Ordinary income is expected to decline y/y due to increased amortization costs for new dies in Japan and losses from exchange-rate translations. |
| Ordinary income | 79,000 | 84,296 | (6.3) | |
| Current net income | 47,000 | 46,303 | 1.5 |
-Net income is expected to increase from the previous year when KI Holdings, the Company’s consolidated subsidiary, paid damage compensation for airplane seat problems. |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Mid-term business forecast
|
(Assumed exchange rate: USD 1/JPY110) |
| FY ended March 2014 (Result) |
FY ended March 2015 (Result) |
FY ending March 2016 (Plan) |
FY ending March 2019 (Forecast) |
FY ending March 2019 comparing with FY ended March 2015 | ||
| Increase/ decrease |
Index | |||||
| Global automobile production volume (10,000 vehicles) | 8,442 | 8,598 | 8,750 | 9,200 | 602 | 107% |
| Net sales (100 million yen) | 5,975 | 7,064 | 7,800 | 9,000 | 1,936 | 127% |
| Operating income (100 million yen) | 495 | 641 | 670 | 780 | 139 | 122% |
| Profit ratio | 8.3% | 9.1% | 8.6% | 8.7% | - | - |
| Region | Key policies |
| Japan | -Expand sales of LED headlamps. |
| -Build highly-efficient production system through re-development of domestic plants. | |
| North America | -Expand business for Japanese/U.S. car makers. |
| -Expand sales of LED headlamps. | |
| Europe | -Expand business for European car makers. |
| -Strengthen sales/development systems | |
| China | -Sustain business expansion in growing markets |
| -Expand local production system (Hubei Koito scheduled to start operation in June 2016) | |
| Asia | -Sustain business expansion in growing markets |
| -Strengthen sales/development systems |
-The Company announced its business forecasts for the next three years through FY 2018 that ends in March 2019. Sales in FY 2018 are expected to reach JPY 900 billion, which will be a 27 percent increase from the FY 2014 result. Operating profit is forecast at JPY 78 billion, which will be a 22 percent improvement from FY 2014. These predictions are based on an outlook that global vehicle production will reach 92 million units in FY 2018, a 7 percent increase from 85.98 million units in FY 2014. The Company aims to achieve these targets by boosting sales of LED headlamps, expanding its production capacity, and stepping up its sales activities to increase its global market share. (From an article in the Nikkan Jidosha Shimbun on May 12, 2015)