Musashi Seimitsu Industry Co., Ltd. Business Report FY ended Mar. 2019

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 Rate of Change (%) Factors
Sales 255,934 237,910 7.6 -Sales increased in line with higher sales in Japan, the Americas, Europe, Asia, and China.
Operating income 14,107 15,767 (10.5) -
Ordinary income 14,791 15,929 (7.2)
Net income attributable to owners of the parent 9,885 10,351 (4.5)

Established Musashi AI

-Musashi Seimitsu Corporation announced the formation of the Musashi AI consortium in collaboration with Israeli technology pioneer and founder of Poliakine Innovation, Ran Poliakine, and SixEye Interactive. The new consortium convenes the brightest technological minds in the area of artificial intelligence, software engineering, hardware engineering, mathematics and physics to promote its global vision. At this year’s AI Expo Tokyo, Musashi AI will demonstrate two new AI-powered prototypes enabling Smart Factory transformation. Based on artificial intelligence and cutting-edge optics, the Automatic Inspection System (AIS) is able to trace and replace people in quality control positions. Fully Self-Driving Automated Forklift (FAF) navigates on its own, performing a variety of functions that previously required human interaction, with unparalleled efficiency and safety standards aimed at preventing injuries to work staff on the warehouse floor. The benefits that artificial intelligence brings to the manufacturing industry are clear, but it takes collaboration, commitment and focus to make the promise of the Industry 4.0 revolution a reality. (From a press release on April 3, 2019)


-Musashi Seimitsu Industry Co., Ltd. announced that it has received an order for its differential assemblies used in electric vehicle (EV) reduction gears from Nidec Group. This is the first time for Musashi Seimitsu Industry to supply its products to the Nidec Group. The company will start mass production of the products in early 2019. Musashi Seimitsu Industry aims to expand its EV drive parts market share in China by combining its differential assembly technology and Nidec Group’s motor technology. (From an article in the Nikkan Jidosha Shimbun on November 22, 2018)

Business Alliances

-Musashi Seimitsu Industry announced that it has formed a capital alliance with Zeptor, a Silicon Valley based venture, developing energy solution services for the next generation. Musashi will take part in their development of mobility solutions. Zeptor’s core strength includes anode technologies of condensers and storage batteries. With their technologies, performance of lithium ion batteries and lithium ion capacitors should be greatly improved. Under the collaboration with Zeptor, Musashi is developing higher-value powertrain systems for electric motorcycles and an AGV’s (Automated Guided Vehicles). (From a press release on October 23, 2018)

-Musashi Seimitsu Industry Co., Ltd. (Musashi Seimitsu) announced that it has entered into a capital partnership agreement with SoftWheel Ltd. (SoftWheel), an Israeli startup developing and rolling out advanced technologies for vehicle electrification. Musashi Seimitsu is independently promoting the development of decelerators, demand for which is expected to grow along with vehicle electrification. The company is also extending its activities globally to develop linkage and suspension products in order to meet new product requirements. Musashi Seimitsu will accelerate these development activities through fusion of both companies' technologies. Musashi Seimitsu and SoftWheel will commercialize products by enhancing cooperation with OEMs and other customers globally. (From an article in the Nikkan Jidosha Shimbun August 24, 2018)


Acquisition of Asada Katan Chutetsusho

-Musashi Seimitsu Industry Co., Ltd. (Musashi Seimitsu) announced that it will acquire all shares in Asada Katan Chutetsusho to make Asadakatan Chutetsusho its subsidiary. Musashi Seimitsu’s powertrain business is enjoying increasing demand for newly structured parts under the growing global trend to reduce environmental impact. Asada Katan Chutetsusho specializes in the manufacturing of ductile products and machining for automobiles, construction machines and industrial machines, with highly competitive casting lineups sustained by its unique casting technology and quality control know-how. (From an article in the Nikkan Jidosha Shimbun on October 6, 2018)

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

R&D Expenditure

(in million JPY)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 3,587 3,489 2,910

R&D Activities

Development of Powertrain Products
Development of drivetrain products
-Increasing production and sales of light-weight differentials that are 10% lighter in weight than existing ones by using the Company's small, high-precision bevel gears.

<Planetary gears>
-By collaborating with production plants overseas, the Company launched commercial production of planetary assemblies that offer improved competitive advantages and the same level of quality as gears produced in Japan, through sharing the expertise developed in Japan. The Company is conducting sales activities based on promoting its technological prowess in production.

Development of Linkage & Suspension (L&S) Products
Development of suspension products
-Won new orders based on technology that reduces weight through creating optimum designs and using aluminum.
-Developing technology that responds to customer needs for electrification.

Advanced-Technology Development
-Conducting R&D activities on a proprietary power unit for hybrid and electric vehicles, and personal mobility vehicles.

Production-Technology Development
<Developing processing technology>
-Developing optimum processing operations to locally procure own-brand products.
-Developing processing technology that differentiates the Company's next-generation products such as high-precision gears, for which demand is expected to grow in line with electrification.

Capital Expenditure

(in million JPY)
  FY ended Mar. 31, 2019 FY ended Mar. 31, 2018 FY ended Mar. 31, 2017
Overall 16,276 12,792 13,303

-Breakdown of investments by region in FY ended Mar. 31, 2019 (in million JPY)
Region Respond to new models Increase production Streamline operations Renew existing facilities Overall
Japan 1,377 - 1,079 512 2,968
Americas 1,137 - 536 1,156 2,829
Europe 323 - 1,062 1,073 3,726
Asia 856 - 1,330 1,845 4,031
China 1,225 - 2,670 - 3,990

Planned Capital Investment

(As of Mar. 31, 2019)
Region Planned investment
(in million JPY)
Major details and objectives of production facilities
Overall 20,000 -
-Japan 3,065 Switch over to respond to new models, renew existing production facilities, streamline operations, conduct R&D activities
-Americas 4,113 Switch over to respond to new models, renew existing production facilities
-Europe 5,683 Switch over to respond to new models, renew existing production facilities, streamline operations
-Asia 2,447 Switch over to respond to new models, renew existing production facilities, streamline operations
-China 4,692 Renew existing production facilities, switch over to respond to new models, streamline operations