Fuji Kiko Co., Ltd. Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of
Change (%)
Remarks
Overall
Sales 103,068 97,082 6.2 -Sales at all three of its business sectors, namely the steering-column, seat, and power-train businesses, increased year-on-year.
Operating income 5,476 4,686 16.9 -
Ordinary income 5,905 4,943 19.5 -
Net income 3,486 3,351 4.0 -

New Company

<Mexico>
-The Company announced its plan to establish a new joint venture, tentatively named as FUJIKIKO TACHI-S Mexico, S.A. de C.V., in Aguascalientes, Mexico in July. A U.S. subsidiary of Fujikiko Co., Ltd., Shizuoka Pref., will make a 66% investment, while a subsidiary of TACHI-S in South America will make a 34% investment. Initially it will be capitalized at USD 8 million, approx. 630 million yen, which will be increased along with production growth. The joint venture will manufacture mechanism elements and frames of automobile seats and expand business in North and South Americas. (From an article in the Nikkan Jidosha Shimbun on May 31, 2012)  

Outlook for FY ending Mar. 31, 2014

(in millions JPY)
  FY ending Mar. 31, 2014
(Forecast)
FY ended Mar. 31, 2013
(Actual Results)
Rate of Change
(%)
Sales 96,700 103,068 (6.2)
Operating income 5,200 5,476 (5.0)
Ordinary income 5,000 5,905 (15.3)
Net income 3,000 3,486 (13.9)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D

R&D Expenses

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Steering column business 991 914  729
Seating business 492 489  477
Powertrain business 348 319  269
Total 1,831 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 338 members working in R&D, including members working in prototypes and testing.

-As of March 2013, the Company has 397 industrial property rights (166 in Japan, and 231 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, 2013)
Country Licenser Content Period
Germany Winkelman Pannhoff GmbH Production technology for one piece drive-plates Jan. 29, 1996 - Jan. 28, 2014
(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, 2013)
Country Licensee Content Period
Taiwan Taiwan Atsugi Co., Ltd. Production technology for steering columns Oct. 6, 1992 - Oct. 5, 2013
(Automatic renewal)
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
Spain Ficosa International S.A. Production technology for A/T shifters Jun. 20, 2011 -
(for as long as the subject vehicles are still under production)

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Steering column business 2,306 1,413 -
Seating business 2,464 538 -
Powertrain business 334 154 -
Others - 140 -
Total 5,105 2,246  2,494

-In the fiscal year that ended Mar. 31, 2013, the Company strengthened its production capacities at plants outside Japan, mainly in emerging-market countries such as China.

Planned Capital Investments

(As of Mar. 31, 2013)
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 975 Nov.
2012
Mar.
2014
No change
The Company,
Arai Plant
Shizuoka Pref., Japan Steering column business 1,444 Feb.
2012
Mar.
2014
No change
The Company,
Honjo Plant
Saitama Pref.,
Japan
Powertrain business 288 Sep.
2012
Mar.
2014
No change
Douglas Autotech Corporation Michigan,
USA
Steering column business 657 Apr.
2013
Mar.
2014
No change
Fujikiko Tachi-S Mexico, S.A. de C.V. Aguascalientes,
Mexico
Seating business 441 Apr.
2013
Mar.
2014
No change
Improvements
The Company,
Washizu Plant
Shizuoka Pref., Japan Seating business 126 Jan.
2013
Mar.
2014
No change
The Company,
Arai Plant
Shizuoka Pref., Japan Steering column business 53 Jul.
2013
Mar.
2014
No change