Sawafuji Electric 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 (%)
Sales 29,179 29,200 (0.1) -
Operating income 403 837 (51.9) -
Ordinary income 684 944 (27.5) -
Net income 1,468 1,040 41.2 -
Electrical Component Business
Sales 12,087 12,572 (3.9) -Even though sales to truck OEMs in Southeast Asia were strong, sales year-on-year decreased because of lower sales in China due to stagnant demand in the construction equipment market.
Operating income 1,023 1,032 (0.9) -

Recent Development Outside Japan

-The Company will develop and offer low cost electric parts designed exclusively for Thailand at its joint venture, which will go into full-scale production of electric parts for automobiles in early 2013. By developing new products like starters with fewer parts and reduced fabrication processes, the electrical product manufacturer is set to introduce low-cost competitive components to meet local needs in Thailand. The plant scheduled to commence trial production early next year has begun to install new production equipment, and also is providing training in Japan to its manufacturing staff. Sawafuji is aiming to expand sales leveraging cost advantages in a bid to achieve 2.2 billion yen in sales in 2015. (From an article in the Nikkan Jidosha Shimbun on Sep. 12, 2012)

Management Policies

-The Company's main growth strategies and major challenges are as follows:
1) Strengthening technological capabilities:
  • Launch operations in new business areas: respond to the growing EV and HV requirements for commercial vehicles
  • Redevelop technology on electric-power generation, renew its ELEMAX electric-power-generation system
  • Renew the refrigerator business
2) Redevelop the Niita Plant operating structure
  • Reorganize the Niita Plant
  • Dramatically improve productivity
3) Strength the sales structure

4) Develop human resources


R&D Expenses

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 948 812 626
-Electrical Component Business 491 421 307

R&D Activities

Electrical Component
-Currently developing small and light, and high-powered electrical components that are in compliance with new regulations on mid-to-large-sized diesel-powered vehicles.

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 1,068 242 286

-The Company made investments in equipment mainly for improving profitability and streamlining production operation. 

Planned Capital Investment

(As of Mar. 31, 2013)
Company / Location Facilities Expected Investment
(In millions of JPY)
Start Planned completion Capacity increase after completion
The Company,
Nitta Factory
(Gunma Pref., Japan)
Facilities to produce electrical parts 531 Apr.