Yachiyo Industry Co., Ltd. Business Report FY ended Mar. 2019
Financial Overview |
(IFRS, in millions of JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | Rate of Change (%) | Factors | |
| Overall | ||||
| Revenue | 161,160 | 165,562 | (2.7) | -Revenue fell because the Company received fewer product orders in the Americas and China and was impacted by the plant closures by customers in Mexico due to flooding, even though orders increased in Japan and Asia. |
| Operating Profit | 701 | 9,369 | (92.5) | -Profit fell because of lower revenue, additional expenses to stabilize production at the US subsidiary, and expenses to cover a recall because of some faulty fuel tanks. |
| Profit before tax | 928 | 9,223 | (89.9) | |
| Profit for the year attributable to owners of the parent | (4,335) | 4,796 | - | |
Transfer of Vehicle Assembly Business
-The company announced that it will make organizational changes to strengthen production and other functions. The company will transfer its vehicle assembly business to Honda Motor Co., Ltd. in April 2018, and consolidate managerial resources into its parts businesses for sustainable growth. It will establish a new headquarters to supervise global production sites and strengthen automotive parts production. Current business management operations will be transferred to the new production headquarters. (From an article in the Nikkan Jidosha Shimbun on February 22, 2018)
Recent Business Developments
-The Company will strengthen its development capabilities at its subsidiary in Zhongshan, Guangdong Province, China, to enhance its ability to deal with local automakers. The company aims to enhance its development and sales strength in China by increasing the number of employees stationed in the country in the fiscal year that ends in March 2020. It intends to advance development of competitive products for Honda vehicles, and the Chinese market, which requires low costs. In the medium and long term, the company will consider producing global standard products in China, also in the growing Indian market. The Company’s two Chinese subsidiaries in Wuhan, Hubei Province, and Zhongshan, Guangdong Province, mainly produce fuel tanks and sunroofs. In addition to trading with Honda Motor Co., Ltd., these subsidiaries supply sunroofs to Geely Automobile, and have established routes to expand sales to Chinese automakers. (From an article in the Nikkan Jidosha Shimbun on April 23, 2019)
-US Yachiyo, Inc. (US Yachiyo), a U.S.-based production subsidiary of the Company, will boost plastic fuel tank production capacity. The company will invest about JPY 2.8 billion to expand its plant building and install new forming equipment for plastic fuel tanks, which are likely to grow in demand. US Yachiyo boosted production with aging equipment, and its earnings deteriorated. US Yachiyo will continue maintaining and operating existing production equipment, and start operation of the new forming equipment at the beginning of 2020. Plastic fuel tanks have become lighter and functionally sophisticated in areas such as fuel transpiration prevention. The Company is considering developing and producing tanks for plug-in hybrid and electrified vehicles. It will establish a flexible production system for high-performance plastic tanks in the U.S. (From an article in the Nikkan Jidosha Shimbun on May 11, 2018)
R&D Activities
- 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.
-The Company will develop new plastic automotive parts mainly for the exterior. Automotive parts increasingly require weight reduction. The Company aims to develop two or three types of new plastic parts and establish mass-production technology by 2025. The automotive exterior parts market will remain even when electrification of vehicles is accelerated, and is an area that will continue to require weight reduction. The Company intends to join new automotive parts markets, and to develop new businesses by utilizing its core resin technologies. The company is also focusing on the development of plastic tank production technology for fuel cell vehicles in Japan, and the development of plastic tanks for plug-in hybrid vehicles. (From an article in the Nikkan Jidosha Shimbun on April 9, 2019)
- 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 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, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
| Overall | 4,282 | 4,305 | 3,838 |
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
| Japan | 3,308 | 3,114 | 2,431 |
| Americas | 3,580 | 2,402 | 989 |
| China | 3,356 | 2,083 | 1,317 |
| Asia | 2,982 | 1,860 | 1,601 |
| Others | 1 | - | - |
| Overall | 13,227 | 9,460 | 6,340 |
-Actual results in the fiscal year that ended in March 2019: responded to new orders, increased capacity, renewed facilities, and set up testing facilities.
Planned Capital Investments |
(As of Mar. 31, 2019) |
| Company/Facility (Location) |
Facility Details | Planned Investment Total (in million yen) |
Start | End (Scheduled) |
Remarks |
| Kashiwabara Plant (Saitama Pref., Japan) |
Production facilities | 628 | Mar. 2018 | Mar. 2020 | Respond to new orders、Renew facilities |
| Suzuka Plant (Mie Pref., Japan) |
Production facilities | 504 | Mar. 2019 | Mar. 2020 | Renew facilities、Respond to new orders |
| Kameyama Branch (Mie Pref., Japan) |
Production facilities | 461 | May. 2019 | Mar. 2020 | Increase production capacity、Renew facilities |
| Headquarters (Saitama pref., Japan) |
Facilities for managing operations | 148 | Jun. 2019 | Mar. 2020 | Renew facilities、improve environment |
| Tochigi R&D Center (Tochigi Pref., Japan) |
R&D facilities | 145 | Sep. 2018 | Jan. 2020 | Install testing facilities |
| Saitama R&D Center (Sayama, Saitama Pref.) |
R&D facilities | 578 | Oct. 2018 | Mar. 2020 | Install testing facilities、reduce energy consumption, streamline operations |
| Goshi Giken Co., Ltd. (Kumamoto Pref., Japan) |
Production facilities, R&D facilities | 892 | Apr. 2019 | Mar. 2020 | Renew facilities、Install testing facilities、Respond to new orders |
| Uemura Tec Co., Ltd. (Kumamoto Pref., Japan) |
Production facilities | 146 | Apr. 2019 | Mar. 2020 | Renew facilities、reduce energy consumption, streamline operations |
| Goshi Tec Co., Ltd. (Kumamoto Pref., Japan) |
Production facilities | 305 | Apr. 2019 | Mar. 2020 | Renew facilities、Respond to new orders |
| US Yachiyo Inc. (Ohio, USA) |
Production facilities | 4,084 | Mar. 2018 | Jan. 2020 | Renew facilities、Respond to new orders |
| Yachiyo Manufacturing of America, LLC (Georgia, USA) |
Production facilities | 1,241 | Mar. 2019 | Dec. 2020 | Renew facilities、reduce energy consumption, streamline operations |
| AY Manufacturing Ltd. (Ohio, USA) |
Production facilities | 500 | Apr. 2019 | Mar. 2020 | Increase production capacity、Respond to new orders |
| Yachiyo Zhongshan Manufacturing Co., Ltd. (Guangdong Prov., China) |
Production facilities | 2,182 | Apr. 2019 | Feb. 2020 | Respond to new orders、Increase production capacity |
| Yachiyo Wuhan Mfg. Co., Ltd. (Hubei Prov., China) |
Production facilities | 1,493 | Apr. 2019 | Mar. 2020 | Respond to new orders、Increase production capacity |
| Siam Goshi Manufacturing Co., Ltd. (Rayong Province, Thailand) |
Production facilities | 753 | Apr. 2019 | Mar. 2020 | Respond to new orders、Renew facilities |
| Goshi-Thanglong Auto-Parts Co., Ltd (Hanoi, Vietnam) |
Production facilities | 857 | Apr. 2019 | Mar. 2020 | Reduce energy consumption, streamline operations、Renew facilities |
| Yachiyo India Manufacturing Private Ltd. (Rajasthan, India) |
Production facilities | 1,249 | Apr. 2019 | Mar. 2020 | Increase production capacity、Respond to new orders |
>>>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, 2020 (Forecast) |
FY ended Mar. 31, 2019 (Actual results) |
Rate of Change (%) | |
| Automotive parts | 1,580 | 1,612 | (2.0) |
| -Sunroofs | 450 | 483 | (6.8) |
| -Fuel tanks | 463 | 395 | 17.2 |