Yachiyo Industry Co., Ltd. Business Report FY ended Mar. 2017
Financial Overview
(IFRS, in millions of JPY)
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | Rate of Change (%) | Factors | |
| Overall | ||||
| Revenue | 147,360 | 149,816 | (1.6) | -Revenue was lower because the Kumamoto Earthquake vehicle caused production to stop and this negatively impacted orders from OEMs for vehicle-assembly work; and because of the effect of negative currency translation. However, orders for automotive parts increased. |
| Operating Profit | 10,011 | 11,766 | (14.9) | -Operating profit was lower because the Kumamoto Earthquake negatively impacted orders from OEMs and negative currency translation impacted business results. |
| Profit before tax | 10,160 | 11,333 | (10.4) | - |
| Profit for the year attributable to owners of the parent | 4,743 | 4,715 | 0.6 | - |
| Japan | ||||
| Revenue | 33,249 | 31,718 | 4.8 | -Revenue increased because of higher number of orders for automotive parts, although the Kumamoto Earthquake caused vehicle production to stop and this negatively impacted orders from OEMs for vehicle assembly work. |
| Profit before tax | (630) | 418 | - | -A loss was recorded due to fewer orders for vehicle-assembly work and due to an impairment loss posted for some of the automotive parts production equipment. |
| Americas | ||||
| Revenue | 39,460 | 41,879 | (5.8) | -Revenue was lower due to the effect of currency translation. |
| Profit before tax | 2,033 | 2,278 | (10.8) | -Profit was lower due to changes in the product lineup and the effect of negative currency translation. |
| China | ||||
| Revenue | 25,164 | 23,471 | 7.2 | -Revenue was higher because Yachiyo Wuhan Mfg. Co., Ltd. and Yachiyo Zhongshan Manufacturing Co., Ltd. received higher numbers of product orders. |
| Profit before tax | 3,550 | 3,846 | (7.7) | -Profit was lower due to changes in the product lineup, higher depreciation expenses, and the effect of negative currency translation, although the number of product orders increased. |
| Asia | ||||
| Revenue | 49,486 | 52,749 | (6.2) | -Revenue was lower because Siam Goshi Manufacturing (Thailand) received fewer numbers of product orders and because of the effect of negative currency translation, even though the number of product orders received at Goshi-Thanglong Auto-Parts (Vietnam) and Siam Yachiyo Co., Ltd. increased. |
| Profit before tax | 5,379 | 4,920 | 9.3 | -Profit increased because of higher numbers of product orders received, although the effect of negative currency translation impacted business performance. |
Mid-term Management Plan
-"Yachiyo 2020 Vision": Become a true, major worldwide supplier based on technological excellence and distinctive products
- 11th mid-term plan: (from FY2011 to FY2013) "Time for Innovation and Implementation" Develop competitive strengths of technology and products that are known around the world.
- 12th mid-term plan: (from FY2014 to FY2016) "Time for fostering growth" Develop competitive strengths of the world's best technology and products.
- 13th mid-term plan: (from FY 2017 to FY2019) "Time for reaping the benefits" Achieve developing world-class, top technology and products.
-Under the 12th mid-term management plan the sheet-metal business was closed and management resources were consolidated into the plastic fuel-tank and sunroof businesses, which are the Companies mainstream product segments.
-Increased inhouse supplying and local procurement of component parts such as plastic filler pipes and wave-dissipating plates, and launched commercial production of fuel tanks using technology on built-in aspects.
-Orders for panorama sunroofs featuring larger openings increased.
-The Company has started reviewing its long-term "Yachiyo 2020 Vision" business plan. The Company will develop a new Vision that will continue until the end of 2025, and is aiming to increase orders from automakers other than its main customer Honda Motor Co., Ltd. The Company plans to raise the sales ratio of sunroofs to automakers other than Honda from the current level of 10% to 30%. It will also conduct research and development for hydrogen tanks with plastic liners and mass-production parts using carbon fiber reinforced plastics, among other projects that can lead to new business from a long-term perspective. The company has positioned the three years starting from April 2017 covered by its next mid-term business plan as a "time to grow" that looks ahead to the year 2025, and is aiming for sustainable growth for the future. (From an article in the Nikkan Jidosha Shimbun on May 10, 2016)
Contracts
Plastic Fuel Tanks (PFTs)
-A new inhouse plastic filler pump is being supplied to the redesigned Honda Civic, CR-V, and Odyssey sold in the North American market.
-The Company developed a production method making it possible to attach component parts such as wave-dissipating plates and rollover valves, without destroying the barrier layer on the fuel-tank, which prevents fuel transpiration in midair. The company is supplying this fuel tank using the aforementioned technology to the redesigned Honda R-V and Odyssey sold in the North American market.
Sunroof
-The company launched production of a panorama sunroof featuring a larger opening, supplying it to the redesigned Honda CR-V.
Product Development
-The Company completed developing its environmentally friendly built-in Fuel tank System (BFS), which complies with LEV III of the North American Environmental Regulations
-Development of a motorized plastic fuel tank, aiming to supply it to 2020 year models.
-Development of a plastic lined? tank for fuel-cell vehicles.
-Preparing to launch production of the outer-panorama Ver 2 sunroof.
-Increase production capacity
R&D Activities
- Commercializing fuel tanks for new-model vehicles
- Commercializing sunroofs for new-model vehicles
- Developing fuel tanks for new-model vehicles
- Developing sunroofs for new-model vehicles
- Developing metal-honeycomb, high-precision fuel-cell carriers that comply with exhaust-gas regulations worldwide.
- R&D activities on plastic fuel tanks with new structural designs.
- R&D activities and related technology on new types of sunroofs
- R&D activities on environmental technology used to make automotive parts
- R&D activities on special-needs vehicles and driver-assist systems
- R&D activities for launching new business operations
R&D Facilities
| Plant | Location | Activities |
| Tochigi R&D Center | Tochigi Pref., Japan | Development of fuel tanks and sunroof systems for mass-market vehicles |
| Saitama R&D Center | Saitama Pref., Japan | R&D activities on next-generation products. Established in April 2012 |
| Goshi Giken Co., Ltd. | Kumamoto Pref., Japan | Motorcycle parts |
| Yachiyo of America Inc. | Ohio, U.S. | Designing and testing of sunroofs and fuel tanks manufactured in North America. Established in July 2008 |
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Overall | 3,838 | 4,009 | 3,083 |
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Japan | 2,431 | 1,587 | 3,885 |
| Americas | 989 | 1,215 | 2,554 |
| China | 1,317 | 1,090 | 957 |
| Asia | 1,601 | 1,019 | 1,517 |
| Overall | 6,340 | 4,922 | 8,913 |
-Actual results in the fiscal year that ended in March 2017: responded to new orders, increased capacity, renewed facilities, and set up testing facilities.
-Outlook for the fiscal year ending in March 2018: JPY 12,000 million (JPY 3,400 million for remodeling and capacity, JPY 4,600 million for new models, and JPY 4,000 million for renewal)
Planned Capital Investments |
(As of Mar. 31, 2017) |
| Company/Facility (Location) |
Facility Details | Planned Investment Total (in million yen) |
Start | End (Scheduled) |
Remarks |
| Kashiwabara Plant (Saitama Pref., Japan) |
Production facilities | 857 | Apr. 2017 |
Feb. 2018 |
Install testing facilities, renew facilities |
| Yokkaichi Factory (Mie Pref., Japan) |
Production facilities | 610 | Jul. 2015 |
Feb. 2018 |
Renew facilities, reduce energy consumption, streamline operations |
| Suzuka Plant (Mie Pref., Japan) |
Production facilities | 55 | May 2017 |
Dec. 2017 |
Respond to new orders, renew equipment, facilities |
| Kameyama Branch (Mie Pref., Japan) |
Production facilities | 106 | Apr. 2017 |
Jan. 2018 |
Renew facilities and equipment, respond to new orders |
| Saitama R&D Center (Sayama, Saitama Pref.) |
Facilities for managing operations | 363 | May 2017 |
Mar. 2018 |
Renew facilities and equipment, improve environment |
| Tochigi R&D Center (Tochigi Pref., Japan) |
R&D facilities | 288 | May 2017 |
Feb. 2018 |
Renew facilities and equipment, improve environment |
| Saitama R&D Center (Sayama, Saitama Pref.) |
R&D facilities | 280 | Apr. 2017 |
Mar. 2018 |
Install testing facilities, respond to new orders |
| Goshi Giken Co., Ltd. | Production facilities R&D facilities |
1,615 | Jan. 2017 |
Mar. 2018 |
Respond to new orders, install testing facilities |
| US Yachiyo Inc. (Ohio, USA) |
Production facilities | 896 | Apr. 2017 |
Mar. 2018 |
Reduce energy consumption, streamline operations, respond to new orders |
| AY Manufacturing Ltd. (Ohio, USA) |
Production facilities | 500 | Jan. 2017 |
Mar. 2018 |
Reduce energy consumption, streamline operations, respond to new orders |
| Yachiyo Zhongshan Manufacturing Co., Ltd. (Guangdong Prov., China) |
Production facilities | 1,215 | Apr. 2017 |
Mar. 2018 |
Respond to new orders, increase production capacity |
| Yachiyo Wuhan Mfg. Co., Ltd. (Hubei Prov., China) |
Production facilities | 2,337 | Feb. 2017 |
Mar. 2018 |
Respond to new orders, enhance ability |
| Siam Goshi Manufacturing Co., Ltd. (Rayong Province, Thailand) |
Production facilities | 1,126 | Aug. 2016 |
Mar. 2018 |
Respond to new orders, increase production capacity |
| Goshi-Thanglong Auto-Parts Co., Ltd (Hanoi, Vietnam) |
Production facilities | 456 | Apr. 2017 |
Mar. 2018 |
Enhance ability, increase production capacity |
Outlook for FY ending March 2018 |
(in millions of JPY) |
| FY ended Mar. 31, 2018 (Forecast) |
FY ended Mar. 31, 2017 (Actual results) |
Rate of Change (%) | |
| Revenue | 155,000 | 147,360 | 5.2 |
| Operating Profit | 10,000 | 10,011 | (0.1) |
| Profit before tax | 10,000 | 10,160 | (1.6) |
| Profit for the year attributable to owners of the parent | 4,300 | 4,743 | (9.3) |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Sales Forecast by Business Sector |
(in 100 million of JPY) |
| FY ended Mar. 31, 2018 (Forecast) |
FY ended Mar. 31, 2017 (Actual results) |
Rate of Change (%) | |
| Automotive parts | 1,475 | 1,384 | 6.6 |
| -Sunroofs | 511 | 438 | 16.7 |
| -Fuel tanks | 348 | 309 | 12.6 |
| Automotive assembly | 75 | 90 | (16.7) |
| Total | 1,550 | 1,474 | 5.2 |