Meiwa Industry 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 (%) Factors
Sales 19,014 18,192 4.5 -The Company implemented very effective cost-cutting initiatives.
-The Company established a global business organization that has manufacturing and sales functions outside Japan such as in China, the ASEAN Region, and North America.
Operating income 420 630 (33.3)
Ordinary income 670 576 16.3
Current net income 650 (1,571) - -
Automotive components
Sales 17,966 17,699 1.5 -Sales rose year-on-year due to increased production volumes that were driven by eco-car sales incentives.
Operating income 370 744 (50.3) -The Company recorded high initial start-up expenses associated with establishing its global operations.

Expanding Operations Globally

-In June 2013, the Company held a groundbreaking ceremony at its new plant, Meiwa Industry North America Inc., in Lewisburg, Tennessee, U.S.A. The new subsidiary will manufacture a honeycomb plastic board called "Meitone." The product is used for trunk interior parts and will be supplied to Japanese automakers and others. It has a land area of about 40,000 square meters and a building space of about 5,800 square meters with an investment of USD 6.1 million. The operation is scheduled to begin in April 2014. The subsidiary is expected to hire some 100 employees within five years. Sales are estimated to reach approximately 2 billion yen, approximately USD 23 million.

- Meiwa Industry (Thailand) Co., Ltd., which was established as a local sales company in Bangkok in March 2012, leased a production plant in the suburbs of Bangkok in April 2013 in order to conduct product-finishing operations, which are planned to start from January 2014. The new plant, which will have 30 workers, is aiming to achieve 300 million yen in sales.

- Meiwa (Dalian) Automobile Parts Co., Ltd. is planning to add one more "Meitone" machine in the fiscal year ending December 2013. Doing so will increase production capacity 2.5 times the current level.

-Meiwa (Foshan) Automobile Parts Co., Ltd. is aiming to turn a profit by the end of the fiscal year ending December 2013, which will be in its second year of operations.

Mid-term plan (covering FY ended Mar 31, 2011 - FY ending Mar 31, 2014) based on its "Long-term Vision 2020"

Main Points
1. Raising profitability by implementing thorough cost-cutting in response to the shrinking automotive market in Japan.
2. Speeding up the development of new products and technologies to least maintain, or even increase, its market share
3. Seizing opportunities coming from growing automotive demand outside Japan such as in China and ASEAN by further expanding global operations.
4. Enhancing operations in new business areas such as housing materials.

-Financial target in the Min-term plan based on "Long term vision 2020".
FY ended March, 2014
Consolidated sales 19.0 billion JPY
Consolidated operating income 0.9 billion JPY

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)
FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of Change
Sales 19,000 19,014 (0.1)
Operating income 550 420 31.0
Ordinary income 520 670 (22.4)
Current net income 310 650 (52.3)


R&D Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 88 96 93
Automotive components 49 40 33

R&D Facilities

-In April 2012, the Company established the Technology Development Center, the new research facility, at our Gifu Plant. The Center will not only be concerned with new technology for developing automotive parts, but also for developing original equipment for improving quality, productivity and rationalization.

R&D Activities

Automotive components
-The Company will work on the following ideas in its R&D activities. It will be focusing on reducing costs, creating products that are both lighter in weight and more rigid, improving products to make them more commercially appealing, and making products that contribute to improving the environment.
  • Improving the product performance of Meitone and creating the optimal production structure at plants worldwide.
  • Developing a light, highly durable, low-price deck board.
  • Improving the product-appeal of floor mats, reducing costs, and creating the optimal production structure at plants in the ASEAN region.
  • Cooperating with materials makers by conducting joint research on finding new applications for new materials and foaming technology.
  • Conducting research and development aimed at launching operations into new product sectors.
  • Developing innovative molding/forming facilities and processing technology, which have never existed before.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 912 914 1,469
Automotive components 909 858  1,466

Automotive components
-The Company mainly invested to acquire facilities and equipment for producing products in response to new program business. It also invested to increase its production capacity, rationalize operations, and renew facilities and equipment.