Meiwa Industry Co., Ltd. Business Report FY ended Mar. 2015
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 20,235 | 20,616 | (1.8) | -Revenue fell in Japan due to decreased demand following the consumption tax hike in April 2014. -Meiwa Industry North America was added to the Company’s consolidated financial statements at the end of 2014. -Meiwa (Foshan) Automobile Parts in Guangdong, China is enjoying strong sales. |
| Operating income | 410 | 563 | (27.2) |
-Large start-up cost at Meiwa Industry North America. -Income fell at Meiwa (Dalian) Automobile Parts. |
| Ordinary income | 656 | 858 | (23.5) | - |
| Current net income | 512 | 585 | (12.5) | - |
| Automotive components | ||||
| Sales | 18,866 | 19,138 | (1.4) | - |
| Operating income | 324 | 460 | (29.6) | - |
New Plant
-The Company announced that its U.S. subsidiary, Meiwa Industry North America, Inc., has held an opening ceremony for its new plant in Lewisburg, Tennessee, USA. The subsidiary supplies trunk rooms and other interior parts, a honeycomb plastic board called "Meitone" to major automakers. Total investment will be USD 6.1 million. Full production is scheduled to start in late 2014. The subsidiary is expected to hire some 100 employees within five years. (From a press release on April 24, 2014)
New mid-term plan "GT300" (covering FY ending Mar 31, 2015 - FY ending Mar 31, 2019) based on its "Long-term Vision 2020"
| Major 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 applications of 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 margin | 5% |
Outlook for FY ending Mar. 31, 2016 |
(in millions of JPY) |
| FY ending Mar. 31, 2016 (Forecast) |
FY ended Mar. 31, 2015 (Actual Results) |
Rate of Change (%) |
|
| Sales | 19,400 | 20,235 | (4.1) |
| Operating income | 300 | 410 | (26.9) |
| Ordinary income | 260 | 656 | (60.4) |
| Current net income* | 390 | 512 | (23.9) |
*As for FY ending March 2016, it's defined " Net income attributable to owners of the parent".
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Overall | 74 | 91 | 88 |
| -Automotive components | 38 | 46 | 49 |
R&D Facilities
-In April 2012, the Company established the Technology Development Center, the new research facility, at our Gifu Plant.
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 promoting sales activity worldwide.
- Developing a light, highly durable deck board.
- Improving the product-appeal of floor mats, reducing costs, and creating the optimal production structure at plants in the ASEAN region.
- Using environmentally friendly technologies to reduce environmental burdens.
- Cooperating with materials makers by conducting joint research on finding new products and applications for new materials.
- Developing innovative molding facilities and processing technology, which have never existed before.
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Overall | 992 | 922 | 912 |
| -Automotive components | 992 | 922 | 909 |
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.
Major Planned Capital Investment |
(As of Mar. 31, 2015) |
| Company or Office Name | Facility type | Estimated amount of investment (in millions JPY) |
Start | Scheduled Completion |
| Meiwa (Foshan) Automobile Parts Co., Ltd. (Guangdong, China) |
Building, Production facility of trunk interiors | 1,304 | Jul. 2013 |
Apr. 2018 |
| Meiwa Industry North America, Inc. (Tennessee, U.S.) |
Production facility of trunk interiors | 138 | Sep. 2014 |
Oct. 2015 |
Data
| Mar. 2015 | Mar. 2014 | Mar. 2013 | |
| Automotive components | 420 | 430 | 396 |
| Housing | 7 | 7 | 6 |
| Other | 5 | 6 | 7 |
| Corporate (In-common) | 17 | 19 | 22 |
| Total | 449 | 462 | 431 |
Sales by Segment |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | ||||
| Sales | Operating Profit | Sales | Operating Profit | Sales | Operating Profit | |
| Automotive components | 18,866 | 324 | 19,138 | 460 | 17,966 | 370 |
| Housing | 1,323 | 82 | 1,425 | 102 | 977 | 50 |
| Other | 44 | 3 | 52 | 0 | 70 | 0 |
| Consolidated elimination | - | - | - | - | - | - |
| Consolidated | 20,235 | 410 | 20,616 | 563 | 19,014 | 420 |
Sales by Geographic Area |
(in millions of JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Japan | 18,168 | 18,661 |
| China | 2,047 | 1,955 |
| North America | 18 | - |
| Overall | 20,235 | 20,616 |
Consolidated |
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (thousand yen) | 17,077,600 | 18,192,532 | 19,014,285 | 20,616,999 | 20,235,036 |
| Income from ordinary business activities (thousand yen) | 18,615 | 576,789 | 670,962 | 858,977 | 656,899 |
| Net income (thousand yen) | 62,350 | (1,571,943) | 650,792 | 585,042 | 512,183 |
| Comprehensive income (thousand yen) | (240,887) | (1,519,324) | 1,038,022 | 1,098,148 | 1,417,575 |
| Net assets million (yen) | 10,151,243 | 8,299,095 | 9,242,619 | 10,214,082 | 12,477,854 |
| Total assets million (yen) | 20,265,905 | 19,947,774 | 19,417,962 | 21,672,410 | 23,747,335 |
| Book value per share (yen) | 312.07 | 309.64 | 344.94 | 381.33 | 356.27 |
| EPS (yen) | 1.91 | (56.78) | 24.28 | 21.84 | 16.40 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 50.1 | 41.6 | 47.6 | 47.1 | 52.5 |
| ROE (%) | 0.6 | (17.0) | 7.4 | 6.0 | 4.5 |
| PER | 30.4 | - | 4.7 | 6.1 | 9.4 |
| Cash flow from operating activity (thousand yen) | 2,154,268 | 191,279 | 1,583,558 | 1,599,707 | 1,310,116 |
| Cash flow from investment activity (thousand yen) | (248,616) | (459,781) | (709,322) | (1,448,992) | (1,280,625) |
| Cash flow from financial activity (thousand yen) | (704,160) | (289,888) | (912,610) | 471,151 | 466,454 |
| Balance at the term-end of cash and cash equivalents (thousand yen) | 3,147,046 | 2,599,670 | 2,620,522 | 3,381,306 | 4,605,228 |
| Number of employees | 418 | 436 | 431 | 462 | 449 |
Non Consolidated
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (thousand yen) | 16,628,672 | 17,599,789 | 18,022,901 | 18,993,059 | 18,361,744 |
| Income from ordinary business activities (thousand yen) | 69,469 | 692,625 | 559,957 | 509,812 | 639,781 |
| Net income (thousand yen) | 138,991 | (1,454,469) | 542,419 | 308,064 | 501,878 |
| Paid-in Capital (thousand yen) | 2,167,399 | 2,167,399 | 2,167,399 | 2,167,399 | 2,167,399 |
| Number of shares outstanding (thousand) | 17,514 | 17,514 | 17,514 | 17,514 | 35,028 |
| Net assets (thousand yen) | 10,442,604 | 8,695,565 | 9,382,631 | 9,803,911 | 11,744,391 |
| Total assets (thousand yen) | 20,170,294 | 19,964,378 | 19,179,619 | 20,686,358 | 22,513,431 |
| Book value per share (yen) | 321.14 | 324.43 | 350.17 | 366.02 | 335.33 |
| Dividend per share (yen) | - | 4.00 | 6.00 | 6.00 | 4.00 |
| EPS (yen) | 4.26 | (52.54) | 20.24 | 11.50 | 16.07 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 51.8 | 43.6 | 48.9 | 47.4 | 52.2 |
| ROE (%) | 1.3 | (15.2) | 6.0 | 3.2 | 4.7 |
| PER | 13.6 | - | 5.6 | 11.6 | 9.6 |
| Payout ratio (%) | - | - | 14.8 | 26.1 | 24.9 |
| Number of employees | 301 | 300 | 295 | 285 | 280 |