Koito Manufacturing Co., 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 | 841,456 | 813,477 | 3.4 | - |
| Operating income | 92,523 | 82,218 | 12.5 | - |
| Ordinary income | 95,336 | 84,296 | 13.1 | - |
| Current net income | 56,692 | 46,303 | 22.4 | - |
| Sales by Segment | ||||
| Japan | 323,629 | 300,737 | 7.6 | -Sales increased due to winning more new orders and enjoying higher sales because of the continually growing LED market. |
| North America | 186,980 | 183,158 | 2.1 | -In spite of the effect of negative currency translation, sales increased due to robust production of new vehicles, winning more new orders, and enjoying higher sales because of the continually growing LED market. |
| China | 218,141 | 217,497 | 0.3 | -Sales increased on a local-currency basis, thanks to increased unit production that was driven by a tax reduction on compact vehicles and winning more new orders. |
| Asia | 81,860 | 77,890 | 5.1 | -Sales increased due to higher new-vehicle production volumes in Asia, winning more new orders in India and Indonesia, and enjoying the higher sales because of the continually growing motorcycle LED lamp LED market. |
| Europe | 30,844 | 34,194 | (9.8) | -Sales increased on a local-currency basis, thanks to increased unit production of new vehicles, winning more new orders, and enjoying higher sales because of the continually growing LED market. However, due to the effect of negative currency translation, lower sales were recorded for the region. |
Business Partnership
-The Company and U.S.-based the sensors and software supplier Quanergy Systems, Inc. (Quanergy) have announced a collaboration to design an automotive headlight concept with built-in LiDAR sensors. A headlight produced by Koito will incorporate Quanergy-made solid state LiDAR sensors. The Koito headlights equipped in a vehicle incorporates solid state LiDARs that perform sensing forward and to the side, and provide real-time 3D views of the environment around the vehicle to recognize and track objects. The sensors are embedded inside the components and do not protrude or alter the exterior appearance of the headlights. The headlight protects the sensors from dust and dirt, which helps ensure an unobstructed view for them. (From an article in the Nikkan Jidosha Shimbun on January 31, 2017)
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Overall | 34,200 | 32,600 | 27,900 |
| -Japan | 15,400 | 14,800 | 13,200 |
| -North America | 7,200 | 7,000 | 5,800 |
| -China | 8,000 | 7,300 | 5,500 |
| -Asia | 3,100 | 3,000 | 2,800 |
| -Europe | 300 | 300 | 300 |
R&D Structure
-As of the end of March 2017, 3,035 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.
R&D Activities
-Core, automotive lamp technologies (optics, electronics, mechanisms, design/architecture)
-New light sources (lasers, OLEDs, etc.)
-Autonomous-driving technology
-ITSs
-Systems development in which the Internet is being used
-New products in new business fields
-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, 2017) |
| Company | Agreement details | Contract Period |
| Hella Automotive Mexico S.A. de C.V. (Mexico) |
Provide technological information, sales and manufacturing license | 25 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 | 15 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, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Japan | 14,000 | 16,300 | 15,000 |
| North America | 11,100 | 9,000 | 16,800 |
| China | 7,100 | 8,700 | 9,700 |
| Asia | 5,800 | 6,000 | 5,100 |
| Europe | 1,100 | 1,000 | 1,600 |
| Total | 40,200 | 41,300 | 48,400 |
Investments outside Japan
-The Company announced on September 28 that it will advance into South America for the first time by establishing a manufacturing subsidiary in Brazil. It will manufacture automotive lighting equipment primarily for Japanese OEMs. The company has been exporting products from Thailand and other countries to Brazil, and will launch local production to receive more new orders and increase profitability. The new subsidiary will be named NAL do Brasil Industria e Comercio de Componentes de Iluminacao Ltda., and be established in Sorocaba, Sao Paulo, Brazil in November 2016. The new subsidiary will be capitalized at BRL 56 million (JPY 1.8 billion) at the time of application for establishment. The capital will be increased in line with the progress of plant construction and facility installation. The Brazilian subsidiary will install a new plant with a site area of 96,200 square meters and a floor area of 17,900 square meters, and begin production in May 2018 with an annual capacity of 250,000 units each for automotive headlamps and rear lamps. The investment in the new plant will total JPY 8 billion, of which about JPY 6 billion will be an initial investment amount for land acquisition, buildings, and other expenses. (From an article in the Nikkan Jidosha Shimbun on September 30, 2016)
Planned Capital Investment |
(As of Mar. 31, 2017) |
| 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 | 2,600 | Apr. 2017 |
Mar. 2018 |
| Haibara Plant (Shizuoka Pref., Japan) |
Manufacturing equipment for automotive lamps | 4,062 | Apr. 2017 |
Mar. 2018 |
| Koito Kyushu Ltd. (Saga Pref., Japan) |
Manufacturing equipment for automotive lamps | 3,197 | Mar. 2017 |
Mar. 2018 |
| Aoitec Co., Ltd. (Shizuoka Pref., Japan) |
Manufacturing equipment for automotive lamps | 1,030 | Mar. 2017 |
Mar. 2018 |
| North American Lighting Inc. (Illinois, USA) |
Manufacturing equipment for automotive lamps | 6,070 | Mar. 2017 |
Mar. 2018 |
| Koito Czech s.r.o. (Zatec, Czech Republic) |
Manufacturing equipment for automotive lamps | 1,022 | Mar. 2017 |
Mar. 2018 |
| Shanghai Koito Automotive Lamp Co., Ltd. (Shanghai, China) |
Manufacturing equipment for automotive lamps | 4,626 | Mar. 2017 |
Mar. 2018 |
| Guangzhou Koito Automotive Lamp Co., Ltd. (Guangzhou, China) |
Manufacturing equipment for automotive lamps | 1,341 | Mar. 2017 |
Mar. 2018 |
| Hubei Koito Automotive Lamp Co., Ltd. (Xiaogan City, China) |
Manufacturing equipment for automotive lamps | 3,025 | Mar. 2017 |
Mar. 2018 |
| Thai Koito Comapny Limited (Samutprakarn, Thailand) |
Manufacturing equipment for automotive lamps | 2,129 | Mar. 2017 |
Mar. 2018 |
| India Japan Lighting Pvt. Ltd. (Tamil Nadu, India) |
Manufacturing equipment for automotive lamps | 2,622 | Mar. 2017 |
Mar. 2018 |
| NAL do Brasil Industria e Comercio de Componentes de Iluminacao Ltda. (Sao Paulo, Brazil) |
Manufacturing equipment for automotive lamps | 1,990 | Mar. 2017 |
Mar. 2018 |
Financial forecast for FY ending March 2018 |
(in million JPY) |
| FY ending Mar. 2018 (Forecast) |
FY ended Mar. 2017 (Result) |
Rate of change (%) |
||
|
Sales |
323,000 | 297,786 | 8.5 |
-Sales generated outside Japan will end lower due to the effect of negative currency translation. New-vehicle production levels will remain flat in Japan. Sales of LED products will continue to grow because of the positive effect from growing LED market. On the whole, consolidated sales are predicted to be higher year-over-year. |
| Operating income | 31,000 | 29,620 | 5.9 | -While revenue is predicted to be higher, operating income and ordinary income are predicted to be lower year-over-year because of the effect of negative currency translation and higher expenses for enhancing R&D capabilities. |
| Ordinary income | 48,000 | 45,729 | 5.0 | |
| Current net income | 34,000 | 31,102 | 9.3 |
-Current net profit returned to the parent company’s shareholders is predicted to be around the same amount as that returned in the previous year. |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)