Toyota Industries Corporation Business Report FY ended Mar. 2016
Financial Overview |
(Japanese GAAP, in millions of JPY) |
FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | Rate of change (%) | Factors | |
Overall | ||||
Sales | 2,228,944 | 2,166,661 | 2.9 | - |
Operating income | 127,970 | 117,574 | 8.8 | - |
Ordinary income | 185,398 | 170,827 | 8.5 | - |
Net income attributable to owners of the parent | 183,036 | 115,263 | 58.8 | - |
Automotive Division | ||||
Sales | 1,045,782 | 1,050,713 | (0.5) | 1) |
Operating income | 33,348 | 35,957 | (7.3) | - |
Overall
-Broke all previous performance records in terms of sales, operating profit, ordinary profit, and net profit.
Automotive Division
1)
-Despite sluggish sales in Japan, as well as in Latin America, sales grew in North America. As a result, total sales worldwide were on par with those of the previous fiscal year.
Vehicle Business
-Sales increased by 4.6% year-on-year. Even though unit sales of the Toyota "Vitz" and "RAV4" fell, a hybrid version of the "RAV4" was launched.
Engine Business
-Sales decreased by 17.6% year-on-year. Even though the Company launched production of the GD diesel engine, sales of the KD diesel and AR gasoline engines fell.
Air-Conditioning Compressor Business
-Sales increased by 5.6% year-on-year, resulting from an increase in sales overseas such as North America, Europe and China.
Electronics Parts, Foundry and Others
-Sales decreased by 13.4% year-on-year because of the decreased production volume.
Recent Development in Japan
-The Company started production of a new diesel engine at its Higashichita Plant in Handa City, Aichi Prefecture, Japan in June 2015. The new "1GD-FTV" is a 2.8-liter direct-injection turbo diesel engine. The Company jointly developed the new diesel engine with Toyota Motor Corporation. The new 1GD-FTV diesel engine has improvements in thermal efficiency and environmental performance over a conventional diesel engine. The new engine is mounted on the partially redesigned "Land Cruiser Prado" that was launched by Toyota Motor on June 17, 2015. (From an article in the Nikkan Jidosha Shimbun on June 23, 2015)
-The Company has developed a new ESB20 electric compressor for car air-conditioning systems, DC-DC converter, rear inverter, and AC inverter for use in hybrid vehicles. These products will be installed in the new Toyota "Prius". Compared with the ES14 electric compressor installed on the current "Prius", the small, lightweight ESB20 electric compressor improves cooling capacity by 30% and reduces electric consumption by 8%. The new DC-DC converter is 50% smaller and 60% lighter than the Company’s conventional converter for the current "Prius". The rear inverter adopts a forced air-cooling system and provides wider flexibility in layout. In addition, the 1500W AC inverter offers a 30% reduction in size compared to the Company’s conventional products. (From a press release on October 29, 2015)
Awards
-The Company received "Superior TNGA (Toyota New Global Architecture) Promotion Award". (From an article in the Nikkan Jidosha Shimbun on April 28, 2015)
Review of Mid-term Management Plan (FY Mar. 2013 - FY Mar. 2016)
-Even though expenses increased from making heavy investments, overall sales and operating profits were in line with expected results.
Comparison of FY Mar. 2016 result and Mid-term Management Plan |
(Unit: in 100 millions of JPY) |
FY ended Mar. 31, 2016 (Actual Result) |
FY ending Mar. 31, 2016 (Mid-term Plan) |
Achievement (%) | |
Sales | 22,289 | 22,300 | 99.9 |
Operating Income | 1,279 | 1,300 | 98.3 |
Capital Expenditure (Accumurated) | 7,800 | - | - |
ROA (%) | 7.3 | 5.0 | - |
ROE (%) | 20.8 | 10.0 | - |
Outlook for FY ending Mar. 2017 |
(Japanese GAAP, in millions of JPY) |
FY ending Mar. 31, 2017 (Forecast) |
FY ended Mar. 31, 2016 (Actual Result) |
Rate of change(%) | |
Sales | 2,200,000 | 2,228,944 | (1.3) |
-Automotive Division | 1,095,000 | 1,045,782 | 4.7 |
Operating income | 120,000 | 127,970 | (6.2) |
Ordinary income | 177,000 | 185,398 | (4.5) |
Net income attributable to owners of the parent | 120,000 | 183,036 | (34.4) |
Outlook for FY ending Mar. 2017 of Automotive Products |
(Japanese GAAP, in millions of JPY) |
FY ending Mar. 31, 2017 (Forecast) |
FY ended Mar. 31, 2016 (Actual Result) |
Rate of change(%) | |
Complete vehicles | 535,000 | 480,000 | 11.4 |
Engines | 160,000 | 158,200 | 1.1 |
Compressors | 330,000 | 324,600 | (3.7) |
Foundry parts, Electronic components | 70,000 | 64,800 | 7.9 |
*Sales categorized based on customers' business lines.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Business initiatives toward "Vision 2020"
Solution: Materials Handling Equipment (Lift truck)
-Aim for further growth by market share increase and expansion of value chain.
-Introduction of new lift trucks with excellent environmental performance developed centered on 3Es (Environment, Ecology, Energy).
- Fitted with in-house developed clean diesel engine and turbocharger on internal combustion lift truck.
- Fitted with in-house developed motor on electric lift truck which demand is growing especially in developed countries.
- Increase of feasibility test of fuel cell lift truck.
Key Components: Car Air-conditioning Compressor
-Aim further sales increase backed by more stringent fuel efficiency regulations
Unit sales target in FY ending Mar. 2021: 40 million units (Result in FY ended Mar. 2016: 30.37 million units, that is 32% increase within 5 years)
- Further enhance performance of variable displacement type and sales expansion activities leveraging its product appeal. (for gasoline type)
- Realize high product appeal of Electrically-Driven Compressors (for all electric driven cars such as HEVs, PHEVs, EVs and FCVs)
- Further improve production and capabilities including productivity of production bases outside Japan, requiring less support from mother plant in Japan.
Mobility: Engine (Diesel Engine)
- Started production of GD diesel engine for IMVs (Innovative International Multi-purpose Vehicle) at the Company's Indian subsidiary, Toyota Industries Engine India Pvt. Ltd. (March 2016)
- Consolidate Toyota Group’s diesel engine development and production to the Company in the future.
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
Overall | 65,440 | 47,785 | 46,326 |
-Automobiles | 40,588 | 25,955 | 27,385 |
R&D Facilities
-The "Research & Development Center", which is located in Kyowa, Obu City, Aichi Pref., undertakes the advanced development of fundamental technologies which will be the keys to the future products of each division, and advanced research for the development of new products for new businesses as well as development of materials and other technologies that will come to serve as the common foundation for all divisions.
Development theme (Example)
- A wide variety of functional parts for use in fuel cells
- Non-contact power supply technologies for use in clean logistics
- Super smooth coatings for inside car air-conditioning compressors
- Three dimensional fabric reinforced composite technologies
Product Development
Automobile
- New type diesel engine
- Turbocharger
- Electrically-Driven Compressors for hybrid vehicles
- Next generation model of Car Air-conditioning Compressors
- Power supply equipment for hybrid vehicle
- New charging stand for PHVs and EVs
Plastic window
-The Company announced that it has developed a plastic quarter window and a plastic rear window, and will supply these products for the Toyota "86GRMN". The windows are 50% lighter than conventional products due to the use of polycarbonate materials. In addition, the quarter window offers a high level of scratch resistance with a new hard-coating technology, while the rear window features a hot-wire defogger. (From a press release on February 24, 2016)
Capital Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
Overall | 154,236 | 179,978 | 157,382 |
-Automobiles | 36,182 | 88,815 | 72,566 |
Breakdown in Capital Expenditures (Automotive Division) |
(in millions of JPY) |
Unit | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 |
The Company | 18,491 | 30,318 | 20,925 |
Toyota Industries Engine India Private Limited (Bangalore, India) |
3,544 | - | - |
Michigan Automotive Compressor, Inc. |
2,866 | 6,323 | 11,039 |
Toyota Industries Compressor Parts America, Co. |
2,307 | 10,230 | 16,248 |
Tokaiseiki Co., Ltd. (Shizuoka Pref., Japan) |
2,107 | 3,795 | 2,237 |
TD Automotive Compressor Georgia, LLC (Georgia, U.S.) |
1,209 | 2,980 | 4,095 |
TD Automotive Compressor Indonesia (Bekasi, Indonesia) |
1,128 | 7,960 | 4,208 |
The Sixth Environmental Conservation Plan
-The Company announced that it has mapped out its Sixth Environmental Conservation Plan that runs through March 2021. The Company intends to set up a model production line that emits zero CO2 emissions in accordance with its long-term target of achieving zero CO2 production by 2050. The sixth phase plan includes development of environmentally friendly manufacturing technologies that will lead to reducing CO2 emissions per product by 26% from FY 2005 globally. At the same time, the Group plans to reduce factory wastes in Japan by 27%. (From an article in the Nikkan Jidosha Shimbun on March 22, 2016)
Planned Capital Investment (Automotive Business) |
(As of Mar. 31, 2016) |
Company/ Plant (Location) |
Equipment to be installed | Planned amount of investment (millions of yen) | Project period | |
From | To | |||
Companies included in consolidated financial statements | ||||
Hekinan Plant (Aichi Pref., Japan) |
Facilities for manufacturing gasoline and diesel engines |
13,000 | Apr. 2016 | Mar. 2017 |
Nagakusa Plant (Aichi Pref., Japan) |
Facilities for manufacturing passenger vehicles |
10,097 | Apr. 2015 | Mar. 2017 |
Kariya Plant (Aichi Pref., Japan) |
Facilities for manufacturing automobile air-conditioner compressors |
7,700 | Apr. 2016 | Mar. 2017 |
Higashichita Plant (Aichi Pref., Japan) |
Facilities for manufacturing casting products used in engines |
5,000 | Apr. 2016 | Mar. 2017 |
Obu Plant (Aichi Pref., Japan) |
Facilities for manufacturing compressor components used in automobile air-conditioners |
3,914 | Apr. 2015 | Mar. 2017 |
Higashiura Plant (Aichi Pref., Japan) |
Facilities for manufacturing compressor components used in automobile air-conditioners |
1,500 | Apr. 2016 | Mar. 2017 |
Anjo Plant (Aichi Pref., Japan) |
Facilities for manufacturing in-vehicle electronic devices |
1,000 | Apr. 2016 | Mar. 2017 |
Kyowa Plant (Aichi Pref., Japan) |
Facilities for manufacturing in-vehicle electronic devices |
500 | Apr. 2016 | Mar. 2017 |
Subsidiaries in Japan | ||||
Tokaiseiki Co., Ltd. (Shizuoka Pref., Japan) |
Facilities for manufacturing automotive components |
1,800 | Apr. 2016 | Mar. 2017 |
Subsidiaries outside Japan | ||||
Michigan Automotive Compressor, Inc. (Michigan, USA) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 4,600 | Apr. 2016 | Mar. 2017 |
TD Deutsche Klimakompressor GmbH (Sachsen, Germany) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 1,900 | Apr. 2016 | Mar. 2017 |
TD Automotive Compressor Indonesia (Bekashi, Indonesia) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 1,500 | Apr. 2016 | Mar. 2017 |
Toyota Industry (Kunshan) Co., Ltd. (Jiangsu, China) |
Facilities for manufacturing casting products used in engines Facilities for manufacturing industrial vehicles |
1,500 | Apr. 2016 | Mar. 2017 |
Yantai Shougang TD Automotive Compressor Co., Ltd. (Shandong, China) |
Facilities for manufacturing compressor components used in automobile air-conditioners | 1,200 | Apr. 2016 | Mar. 2017 |
Toyota Industries Engine India Private Limited (Bangalore, India) |
Facilities for manufacturing engines | 1,000 | Apr. 2016 | Mar. 2017 |