Meiwa Industry Co., Ltd. Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of Change (%) Factors
Sales 20,616 19,014 8.4 -The Company implemented very effective cost-cutting initiatives.
-Strong production and sales frameworks overseas such as in China, ASEAN, North America, etc.
Operating income 563 420 34.0
Ordinary income 858 670 28.1
Current net income 585 650 (10.0) -
Automotive components
Sales 19,138 17,966 6.5 -Production increase due to last-minute demand seen before consumption tax increased in Japan; and more business at Chinese consolidated subsidiary.
Operating income 460 370 24.3 -

New Plant

-In 2013, the Company held a groundbreaking ceremony at its new plant in Lewisburg, Tennessee, U.S.A. The new subsidiary, Meiwa Industry North America Inc., 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. The operation is scheduled to begin in April 2014 with an investment of USD 6.1 million. The subsidiary is expected to hire some 100 employees within five years. (From a press release on June 24, 2013)

New mid-term plan "GT300" (covering FY ending Mar 31, 2015 - FY ending Mar 31, 2019) based on its "Long-term Vision 2020"

Main Points
1. Four-region global organizational structure to achieve sales ratio of 2:1 of automotive parts, i.e., Japan=2, outside Japan= 1.
2. Maintain sales of JPY 18.0 billion of automotive products in Japan, even while automotive market is shrinking.
3. Early development of new products, technology, and new uses for products, so as to exceed customer expectations in terms of value.
4. Reduce variable and fixed costs as much as possible in order to build an organizational framework that can achieve profits in spite of declining production levels of automotive parts in Japan.
5. Create an aggressive development plan for the housing business, and advance efforts to development new businesses in which resin lamination technology can be applied.

-Financial target in the new mid-term plan based on "Long term vision 2020".
FY ended March, 2019
Consolidated sales JPY 30.0 billion
 - Automotive Segment JPY 27.0 billion
Consolidated operating income JPY 0.9 billion

Outlook for FY ending Mar. 31, 2015

(in millions of JPY)
FY ending Mar. 31, 2015
FY ended Mar. 31, 2014
(Actual Results)
Rate of Change
Sales 20,000 20,616 (3.0)
Operating income 580 563 3.0
Ordinary income 550 858 (35.9)
Current net income 360 585 (38.5)


R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 91 88 96
Automotive components 46 49 40

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, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Overall 922 912 914
Automotive components 922 909 858

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.