Koito Manufacturing Co., Ltd. Business Report FY ended Mar. 2018

Financial Overview

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 Rate of
Change (%)
Factors
Overall
Sales 848,868 841,456 0.9 -Sales increased at the automotive lamp business, the Company’s major business sector, thanks to greater volumes of new orders and the further advance of the migration to LED automotive lamps and lighting.
Operating income 103,785 92,523 12.2 -Operating income increased due to higher product-sales and effective improvement and rationalization initiatives implemented in and outside Japan.
Ordinary income 107,945 95,336 13.2 -
Current net income 83,397 56,692 47.1 -



Recent Development outside Japan

-The Company will strengthen its LED headlamp operations for markets outside Japan. It will develop an LED headlamp with a simplified structure and reduced price, and increase its LED headlamp production capacity primarily at its plants in emerging markets. It will strengthen activities to receive orders for its LED headlamps especially for use in electric vehicles (EVs) in China and other markets, where the widespread use of EVs is anticipated. The supplier plans to double the ratio of LED headlamps to its total headlamp shipments for overseas markets to 50% in five years.

R&D Expenditure

(in million JPY)
FY ended Mar.
31, 2018
FY ended Mar.
31, 2017
FY ended Mar.
31, 2016
Overall 36,100 34,200 32,600
-Japan 19,000 15,400 14,800
-North America 8,700 7,200 7,000
-China 6,000 8,000 7,300
-Asia 1,800 3,100 3,000
-Europe 300 300 300

R&D Structure

-As of the end of March 2018, 2,796 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 Guangzhou 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.)

    1. Conventional red phosphors absorb light emitted from phosphors of other colors and cause color drift. The new material offsets these disadvantages and enables stable color generation.The new "FOLP:Eu2+" red phosphor will be used for "near-ultraviolet light excitation white LEDs" that convert violet and near-ultraviolet light into light of colors like red, blue and yellow using other phosphors to produce white light.
    2. A new nanocomposite phosphor that features blue light intensity about three times higher than conventional phosphors. While halide- and chalcogenide-based phosphors have low internal loss and high light emitting performance, they lack durability and are unsuitable for practical applications. The new development opens the door for commercial use.
  • Autonomous
    -The Company will develop automotive lamp systems equipped with lenses and a built-in LiDAR (laser scanner) system that are likely to be used in autonomous vehicles. It will also develop lamp systems with embedded electric control units that autonomously control the areas illuminated. It intends to commercialize high value-added headlamps required for autonomous driving and advanced driver assistance systems by around 2020 to meet the needs of automakers.
    -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. 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.
  • ITS-related system

  • 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, 2018)
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, 2017
Farba Otomotiv Aydinlatma ve Plastik Fabrikalari A.S.
(Turkey)
Provide technological information, sales and manufacturing license 21 years from
Oct. 24, 1997
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 8 years from
Mar. 21, 2013



Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Japan 14,000 14,000 16,300
North America 6,100 11,100 9,000
China 5,800 7,100 8,700
Asia 5,600 5,800 6,000
Europe 1,900 1,100 1,000
Total 33,700 40,200 41,300

Investments outside Japan


-Plans to increase production capacity by 50% at its plant in San Luis Potosi, Mexico by the second half of 2018.


-In January 2018, plans to increase production capacity by 70% at a manufacturing site in the China’s Fujian Province, which currently produces 1 million units annually.


-In January 2018, plans to increase production capacity by 50% at a manufacturing plant in Indonesia, which produces 1.3 million units annually.


-In October 2017, announced that it will establish a new factory in Malaysia with an investment of JPY 5 billion and aim to start its operation since December 2019. Established Koito Malaysia Sd. Bhd. in Sendayan Tech Valley, Sendayan City, Negeri Sembilan State, 75 km south of Kuala Lumpur. The factory will have a land area of 60,000 square meters. By the end of 2021, the factory will be capable of producing headlamps and signal lamps for 250,000 cars per year.


-In October 2017, announced that it is investing BRL 221 million for a factory to produce headlights and taillights in Sorocaba, Brazil.

Planned Capital Investment

(As of Mar. 31, 2018)
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 6,002 Apr.
2018
Mar.
2019
Haibara Plant
(Shizuoka Pref., Japan)
Manufacturing equipment for automotive lamps 4,897 Apr.
2018
Mar.
2019
Koito Kyushu Ltd.
(Saga Pref., Japan)
Manufacturing equipment for automotive lamps 5,368 Mar.
2018
Mar.
2019
Aoitec Co., Ltd.
(Shizuoka Pref., Japan)
Manufacturing equipment for automotive lamps 4,419 Mar.
2018
Mar.
2019
SHIZUOKA-DENSO Co., Ltd.
(Shizuoka Pref., Japan)
Manufacturing equipment for automotive lamps 1,044 Mar.
2018
Mar.
2019
North American Lighting Inc.
(Illinois, USA)
Manufacturing equipment for automotive lamps 7,714 Mar.
2018
Mar.
2019
North American Lighting Mexico S.A. de C.V.
(San Luis Potosi, Mexico)
Manufacturing equipment for automotive lamps 3,370 Mar.
2018
Mar.
2019
Koito Czech s.r.o.
(Zatec, Czech Republic)
Manufacturing equipment for automotive lamps 1,039 Mar.
2018
Mar.
2019
Guangzhou Koito Automotive Lamp Co., Ltd.
(Guangzhou, China)
Manufacturing equipment for automotive lamps 1,530 Mar.
2018
Mar.
2019
Hubei Koito Automotive Lamp Co., Ltd.
(Xiaogan City, China)
Manufacturing equipment for automotive lamps 4,909 Mar.
2018
Mar.
2019
Fuzhou Koito Tayih Automotive Lamp Co.,Ltd.
(Fuzhou, China)
Manufacturing equipment for automotive lamps 3,375 Mar.
2018
Mar.
2019
Thai Koito Comapny Limited
(Samutprakarn, Thailand)
Manufacturing equipment for automotive lamps 3,665 Mar.
2018
Mar.
2019
PT. Indonesia Koito
(West Java, Indonesia)
Manufacturing equipment for automotive lamps 3,919 Mar.
2018
Mar.
2019
NAL do Brasil Industria e Comercio de Componentes de Iluminacao Ltda.
(Sao Paulo, Brazil)
Manufacturing equipment for automotive lamps 4,898 Mar.
2018
Mar.
2019