Fuji Kiko Co., Ltd. Business Report FY2012
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | Rate of Change (%) |
Remarks | |
Overall | ||||
Sales | 97,082 | 91,771 | 5.8 | -Overall financial performance improved year-on-year due to increased sales volumes in all regions except for Japan and China. |
Operating income | 4,686 | 5,461 | (14.2) | - |
Ordinary income | 4,943 | 5,340 | (7.4) | - |
Current net income | 3,351 | 3,328 | 0.7 | - |
Recent Development Outside Japan
<Thailand>-The Company is doubling production volume of steering columns in Thailand. By installing new equipment at a plant in Rayong Province, the Company will enhance its production capacity during the 2012-2013 period. In Thailand, Japanese automakers are expanding local production of compact cars in response to the eco-car incentive program initiated by the Thai government, and demand for steering parts is also rising. Fuji Kiko will substantially increase its local supply capacity in a bid to comply with Japanese automakers' requests. (From an article in the Nikkan Jidosha Shimbun on March 28, 2012)
<China, Japan>
-Ficosa International S.A. announced that it has been chosen by Renault-Nissan alliance to produce the automatic shifter system for next generation small segment vehicles. Ficosa will commercialize and produce these products for the markets of Europe, NAFTA, Mercosur and Asia. At the same time, the Japanese company Fuji Kiko will produce the volumes of the shifter for the Chinese and Japanese markets. This contract will represent sales of 45 million euros. (From a press release on October 5, 2011)
New Company
<China>-The Company and Joyu-Fuji Machinery in Taiwan announced that they will establish a new joint venture in Zhengzhou, Henan Province, China. The new company, Zhengzhou Jofu Auto Parts Co., Ltd., will manufacture and sell automotive shifter parts and engine drive components. Capitalized at 2.5 million USD (approximately 200 million yen), it will be owned 67 percent by Fuji Kiko and 33 percent by Joyu-Fuji Machinery. Operations are scheduled to begin in 2013. (From a press release on March 27, 2012)
Outlook for FY ending Mar. 31, 2013 |
(in millions JPY) |
FY ending Mar. 31, 2013 (Forecast) |
FY ended Mar. 31, 2012 (Actual Result) |
Rate of Change (%) |
|
Sales | 97,300 | 97,082 | 0.2 |
Operating income | 4,800 | 4,686 | 2.4 |
Ordinary income | 5,000 | 4,943 | 1.2 |
Net income | 3,400 | 3,351 | 1.5 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenses |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Steering column business | 914 | 729 |
Seating business | 489 | 477 |
Powertrain business | 319 | 269 |
Total | 1,722 | 1,476 |
R&D Structure
-R&D activities are basically being conducted by the Company, meaning that the Company in Japan supports its subsidiaries overseas by conducting all basic development activities up to the prototype stage. The subsidiaries then take over from the trial-production stage, making further product developments appropriate for the actual vehicle models.-Currently, the Company has 359 members working in R&D, including members working in prototypes and testing.
-As of March 2012, the Company has 370 industrial property rights (147 in Japan, and 223 outside Japan).
R&D Activities
Steering column business-The Company is working to reduce product costs and weight while trying to improve safety and product appeal. It will do this by improving the level of plastic forming technologies it uses. It plans to achieve this by reaching the required level of functions and performance demanded for steering columns by utilizing the most optimal mechanisms and designs.
-The Company is addressing the issues and needs surrounding globalization; enhancing its framework for conducting development activities in three regions (Japan, Europe, and the U.S.A.); and improving its competitive edge and product lineup by taking customer demand in the U.S.A. and Europe into consideration.
-The Company is jointly developing future technologies and products with automakers and system manufacturers to improve running performance.
Seating business
-The Company worked on developing functional core components and systems used in seats, such as seat recliners, height adjusters and slides. In response to the growing needs for environmental measures, safety, and comfort, the Company is engaged in reducing the size, weight and cost of products, as well as improving their strength and functions in addition.
-In order to produce seats locally in China, the Company established an R&D center in the country. This center is currently developing materials and production methods.
-The Company is developing products that can satisfy the seating layouts used in RV vehicles, hoping to improve their usability so as to satisfy increasingly diverse customers' demands.
-The Company conducted joint development activities with Tach-S Corporation, taking in development staff from the other company. The aim is to benefit from synergy effects found between the companies, which include, for example, improvement of development speed.
Powertrain Business
-The Company, in creating automatic-transmission shifters that offer even more competitive advantages through cost and weight reductions, is developing mass-market transmissions. Also, the Company is currently developing more compact products for the future in responding to improving product appeal by enhancing product feel and sound.
-In the area of drivetrain parts such as pulleys and driveplates, the Company is making use of its expertise in its proprietary plastic-working technology and analytical technology that is typified by its thick-molding and slotting methods for forming metal plates in meeting the growing market needs shifting to sheet metal, while continually developing all kinds of shaped pulleys.
-The Company is developing components for heavy vehicles such as manual-transmission and automatic-transmission control parts, based on its customers' specifications.
-Kokuyo Electric Company, a subsidiary, is developing effective, new products based on its proprietary technology in electronic devices.
Technology Licensing-in Agreement |
(As of Mar. 31, 2012) |
Country | Licenser | Content | Period |
Germany | Winkelman Pannhoff GmbH | Production technology for one piece drive-plates | Jan. 29, 1996 - Jan. 28, 2013 (Automatic renewal) |
Liechtenstein | ThyssenKrupp Presta AG | Patent cross license agreement for steering columns | Jul. 30, 2007 - Apr. 17, 2017 |
Technology Licensing-out Agreement |
(As of Mar. 31, 2012) |
Country | Licensee | Content | Period |
Taiwan | Taiwan Atsugi Co., Ltd. | Production technology for steering columns | Oct. 06, 1992 - Oct. 05, 2012 (Automatic renewal) |
Taiwan | Joyu-Fuji Machinery Co., Ltd. | Production technology for A/T devices, M/T linkage and pulleys | Oct. 08, 1996 - Oct. 07, 2012 (Automatic renewal) |
China | Shye Fu Koyo (Xiamen) Mechanical Industry Co., Ltd. | Production technology for steering columns and intermediate shafts | Jan. 01, 2011 - Dec. 31, 2015 (Automatic renewal) |
USA | Douglas Autotech Corporation | Production technology for steering columns and automatic transmission devices | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
USA | Fuji Autotech U.S.A L.L.C. | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
Czech | Fuji Koyo Czech s.r.o. | Production technology for steering columns and intermediate shafts | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
France | Fuji Autotech France S.A.S. | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
Indonesia | PT. Autotech Indonesia | Production technology for steering columns and intermediate shafts | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
China | Fuji Autotech Guangzhou Co., Ltd. | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | 9 years from Jan. 1, 2007 |
Thailand | Summit Fujikiko Kurata Manufacturing Co., Ltd. | Production technology for steering columns and intermediate shafts | Apr. 01, 2006 - (for as long as the subject vehicles are still under production) |
China | Guangzhou Changfu Machinery Co., Ltd. | Production technology for automatic transmission shift sectors | Jan. 01, 2007 - (for as long as the subject vehicles are still under production) |
India | Sona Fuji Kiko Automotive Ltd. | Production technology for steering columns and intermediate shafts | 7 years from Feb. 28, 2008 or the production life of the specific vehicle models |
Taiwan | Hsin Chong Machinery Works Co., Ltd. | Production technology for seat reclining devices | 5 years from Mar. 18, 2008 or the production life of the specific vehicle models |
China | Guangzhou Jofu Machinery Co., Ltd. | Production technology for rod hood supports | 5 years from Jun. 1, 2010 or the production life of the specific vehicle models |
Germany | Fuji Kiko Hammerstein Automotive GmbH | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms | May 25, 2010 - (for as long as the subject vehicles are still under production) |
Brazil | Fuji Autotech Autopecas do Brasil Ltda | Production technology for seat reclining devices | 5 years from Apr. 27, 2011 or the production life of the specific vehicle models |
Spain | Ficosa International S.A. | Production technology for A/T shifters | June. 20, 2011 - (for as long as the subject vehicles are still under production) |
China | Zhejiang Fu Chong Tai Automotive Parts Co., Ltd. | Production technology for seat reclining devices, seat lifters, and seat sliding mechanisms |
Sep. 30, 2011 - Sep. 29, 2016 (Automatic renewal) |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | FY ended Mar. 31, 2010 | |
Steering column business | 1,413 | - | - |
Seating business | 538 | - | - |
Powertrain business | 154 | - | - |
Other | 140 | - | - |
Total | 2,246 | 2,494 | 1,488 |
-In FY ending Mar. 31, 2012, the Company invested in its production infrastructure in order to produce new products to respond to new program business and vehicle model changes.
Planned Capital Investments |
(As of Mar. 31, 2012) |
Company Name | Location | Business | Planned investment (in millions of JPY) |
Start | Completion | Production capacity increase on completion |
New Facilities | ||||||
The Company, Washizu Plant |
Shizuoka Pref., Japan | Seating business | 1,397 | Aug. 2011 |
Mar. 2013 |
No change |
The Company, Ltd. Arai Plant | Shizuoka Pref., Japan | Steering column business | 576 | Apr. 2011 |
Mar. 2013 |
No change |
The Company, Ltd. Honjo Plant |
Saitama Pref., Japan |
Powertrain business | 110 | Apr. 2011 |
Mar. 2012 |
No change |
Zhejiang Fu Chong Tai Automotive Parts Co., Ltd. | Zhejiang, China |
Seating business | 871 | Jan. 2012 |
Dec. 2012 |
No change |
Fuji Koyo Czech s.r.o. | Plzen, Czech |
Steering column business | 400 | Apr. 2012 |
Mar. 2013 |
No change |
Improvements | ||||||
The Company, Washizu Plant |
Shizuoka Pref., Japan | Seating business | 125 | Apr. 2012 |
Mar. 2013 |
No change |
The Company, Ltd. Arai Plant | Shizuoka Pref., Japan | Steering column business | 63 | Jan. 2012 |
Mar. 2013 |
No change |