Aisin Seiki_Business Report FY2007
Business Highlights
Highlights FY2007 (ended Mar. 2008)
Financial Overview
Business performance by region
Sales by product category (Automotive components business)
Japan (FY2007)
-Sumitomo Electric Transfers brake business to the Company
The Company and Sumitomo Electric Industries, Ltd. announced that the two companies have reached a final agreement to transfer Sumitomo Electric's automotive brake business to the Company on October 1, 2007, and established a new joint company, AS Brake Systems Inc to facilitate the smooth business integration. The new company is temporarily established to continue brake manufacturing at Sumitomo Electric's existing plant until the production and facility transfer to the Company complete. The Company provides 80% of the capital and Sumitomo Electrics 20%. The new company will continue production activities while it promotes the transfer of production and facilities to the Company. At the same time, the Company will acquire shares of SEI Brake Systems (Thailand) Ltd., Sumitomo Electric's subsidiary in Thailand, through a share transfer. (From an article in the Nikkan Jidosha Shimbun on Sep. 4, 2007)
-New plant
The Nishio plant was divided into the Nishio diecast plant and the Nishio engine plant as of January 1, 2008.
Global (FY2007)
-Merger of two brake-parts and components suppliers in China
The Company and ADVICS Co., Ltd. jointly announced a plan to merge their two brake parts and components suppliers in Tianjin, China. The two companies aim to expand their brake business in China through promotion of production rationalization and management efficiency. Tianjin Aisin Automobile Parts Co., Ltd. and ADVICS Tianjin Automobile Parts Co., Ltd. will be consolidated with the latter as a surviving company maintaining its name. A total capital of approx. five billion yen will be invested by ADVICS (50.1%), the Company (47.2%) and Toyota Tsusho Corp. (2.7%) to establish the new company in July 2008. Brake boosters/master cylinders, disc brake calipers and parking brakes will be manufactured with expected sales of 1.36 billion Yuan or about 18 billion yen in FY 2008. (From an article in the Nikkan Jidosha Shimbun on Dec. 6, 2007)
Financial Overview
| (in billion JPY) | FY2007 | FY2006 | Rate of Change | Factors |
| Overall | ||||
| Sales | 2,700.4 | 2,378.6 | 13.5% | -Its auto parts business recorded a
13.6% sales increase year-on-year
reaching 2,588,500 million yen, thanks to a rise in vehicle
production by its major customers; as well as brisk sales of automatic and manual
transmissions, car navigation systems, and power sliding-door systems. |
| Operating income |
180.4 | 131.0 | 37.7% | A rise in depreciation costs and R&D costs due to prior investments were offset by sales growth and rationalization of overall management. |
| Ordinary income |
186.3 | 134.2 | 38.7% | |
| Net income |
91.6 | 66.8 | 37.0% | |
Business performance by region
| (in billion JPY) |
FY2007 | FY2006 | Rate of Change | Factors |
| Japan | ||||
| Sales | 2,225.0 | 1,982.5 | 12.2% | -Increased vehicle production by major customers; and brisk sales of new automatic and manual transmissions being installed on an OEM basis |
| Operating income |
128.9 | 99.0 | 30.3% | -Higher depreciation costs (including some resulting from a revision in the tax system) and R&D costs were offset by increased sales and rationalization initiatives |
| North America | ||||
| Sales | 416.0 | 382.6 | 8.7% | -Launch of its automatic transmission on a new pickup truck; strong sales of engine and car-body parts in connection with an increase in vehicle production by major customers |
| Operating income |
11.0 | 8.0 | 36.3% | -Increased sales coupled with the launch of commercial operations at a new plant |
| Europe | ||||
| Sales | 203.2 | 181.3 | 12.0% | -Automakers' installing the Company's automatic transmissions on their vehicles; and the Company's aggressive marketing activities |
| Operating income |
4.0 | 3.9 | 2.6% | -Higher costs to launch production of engine parts were offset by increased sales and rationalization initiatives |
| Others | ||||
| Sales | 245.5 | 170.3 | 44.1% | -Increased production by major carmaker customers in China and Thailand; an increase in the volume of car-body products supplied to customers due to greater number of its products being equipped on vehicles. |
| Operating income |
37.3 | 20.8 | 79.4% | -Overall increased sales coupled with the launch of commercial operations at a new plant |
Sales by product category (Automotive components business)
| (in billion JPY) |
FY2007 | FY2006 | Rate of change |
Factors |
| Engine related | 259.9 | 223.2 | 16.4% | Brisk sales of timing chain covers and intake manifolds |
| Drivetrain related | 1,170.4 | 1,014.0 | 15.4% | Brisk sales of 6-speed automatic transmissions and manual transmissions |
| Brake & Chassis related | 535.1 | 468.2 | 14.3% | - |
| Body related | 477.5 | 433.2 | 10.2% | Brisk sales of power sliding-door systems, power back door systems and sunroofs |
| Information related | 145.5 | 140.0 | 3.9% | Brisk sales of car navigation systems |
| Automotive components | 2,588.5 | 2,278.6 | 13.6% | - |
Japan (FY2007)
-Sumitomo Electric Transfers brake business to the Company
The Company and Sumitomo Electric Industries, Ltd. announced that the two companies have reached a final agreement to transfer Sumitomo Electric's automotive brake business to the Company on October 1, 2007, and established a new joint company, AS Brake Systems Inc to facilitate the smooth business integration. The new company is temporarily established to continue brake manufacturing at Sumitomo Electric's existing plant until the production and facility transfer to the Company complete. The Company provides 80% of the capital and Sumitomo Electrics 20%. The new company will continue production activities while it promotes the transfer of production and facilities to the Company. At the same time, the Company will acquire shares of SEI Brake Systems (Thailand) Ltd., Sumitomo Electric's subsidiary in Thailand, through a share transfer. (From an article in the Nikkan Jidosha Shimbun on Sep. 4, 2007)
-New plant
The Nishio plant was divided into the Nishio diecast plant and the Nishio engine plant as of January 1, 2008.
Global (FY2007)
-Merger of two brake-parts and components suppliers in China
The Company and ADVICS Co., Ltd. jointly announced a plan to merge their two brake parts and components suppliers in Tianjin, China. The two companies aim to expand their brake business in China through promotion of production rationalization and management efficiency. Tianjin Aisin Automobile Parts Co., Ltd. and ADVICS Tianjin Automobile Parts Co., Ltd. will be consolidated with the latter as a surviving company maintaining its name. A total capital of approx. five billion yen will be invested by ADVICS (50.1%), the Company (47.2%) and Toyota Tsusho Corp. (2.7%) to establish the new company in July 2008. Brake boosters/master cylinders, disc brake calipers and parking brakes will be manufactured with expected sales of 1.36 billion Yuan or about 18 billion yen in FY 2008. (From an article in the Nikkan Jidosha Shimbun on Dec. 6, 2007)
R&D
R&D
Investment Activities
Capital Expenditure (FY2007)
During the fiscal year which ended on Mar. 31, 2008, the company invested 212,000 million yen in total. The Group's total investment into its auto parts business reached 204,000 million yen. Of that amount, 50,100 million yen was invested by Aisin Seiki and 25,400 million yen by Aisin AW.
Major investment locations are:
-Manufacturing facilities for brake products at its Handa Plant
-A new production technology center
-Manufacturing facilities for drivetrain products at its Tahara Plant
-The Kira plant of Aisin AI
Domestic Investments (FY2007)
The Company will establish a new company, Aisin Kyushu Casting Co., Ltd., located in Jonan-machi, Kumamoto prefecture to produce engine components. It will establish the framework for integrated production at the new company from casting to processing and assembly of aluminum die casting products in the Kyushu region, to respond to an increasing production of engines at Toyota Motor Kyushu. Investment will be 10 billion yen including building, equipment, etc. Production is scheduled to start in September 2008, and sales target for fiscal 2010 will be approx. 7.8 billion yen. (From an article in the Nikkan Jidosha Shimbun on Jul. 11, 2007)
Hosei Brake Industry Co., Ltd., a consolidated subsidiary of the Company, will build a new production plant for the press welding process in Izumi-cho, Toki City, Gifu. Hosei Brake Industry has been producing press welding process components, its primary products, including drum brakes, axle housing cases and air suspension chambers at the plant located at its headquarters. Due to a lack of space at this existing production facility with an increasing orders of drum brakes, it has decided to establish a new manufacturing site in Izumi-cho, Toki City. he company will invest approximately 2.5 billion yen in this project. The new plant is scheduled to start production in September 2008 with an estimated sales of around 6 billion yen. (From a press release on Jun. 22, 2007)
New equipment installations
During the fiscal year which ended on Mar. 31, 2008, the company invested 212,000 million yen in total. The Group's total investment into its auto parts business reached 204,000 million yen. Of that amount, 50,100 million yen was invested by Aisin Seiki and 25,400 million yen by Aisin AW.
Major investment locations are:
-Manufacturing facilities for brake products at its Handa Plant
-A new production technology center
-Manufacturing facilities for drivetrain products at its Tahara Plant
-The Kira plant of Aisin AI
Domestic Investments (FY2007)
The Company will establish a new company, Aisin Kyushu Casting Co., Ltd., located in Jonan-machi, Kumamoto prefecture to produce engine components. It will establish the framework for integrated production at the new company from casting to processing and assembly of aluminum die casting products in the Kyushu region, to respond to an increasing production of engines at Toyota Motor Kyushu. Investment will be 10 billion yen including building, equipment, etc. Production is scheduled to start in September 2008, and sales target for fiscal 2010 will be approx. 7.8 billion yen. (From an article in the Nikkan Jidosha Shimbun on Jul. 11, 2007)
Hosei Brake Industry Co., Ltd., a consolidated subsidiary of the Company, will build a new production plant for the press welding process in Izumi-cho, Toki City, Gifu. Hosei Brake Industry has been producing press welding process components, its primary products, including drum brakes, axle housing cases and air suspension chambers at the plant located at its headquarters. Due to a lack of space at this existing production facility with an increasing orders of drum brakes, it has decided to establish a new manufacturing site in Izumi-cho, Toki City. he company will invest approximately 2.5 billion yen in this project. The new plant is scheduled to start production in September 2008 with an estimated sales of around 6 billion yen. (From a press release on Jun. 22, 2007)
New equipment installations
| Name of company/plant (Location) |
Equipment to be installed |
Estimated amount of investment (in million JPY) |
Period of the project |
Increase in production |
|
| From | To | ||||
| The Company | |||||
| -Shintoyo plant (Aichi Pref., Japan) |
Manufacturing equipment for body related products | 4,100 | Apr. 2008 |
Mar. 2009 |
Minor increase |
| -Nishio plant (Aichi Pref., Japan) |
Manufacturing equipment for drivetrain related products, etc. | 11,800 | Apr. 2008 |
Mar. 2009 |
Minor increase |
| -Handa plant (Aichi Pref., Japan) |
Manufacturing equipment for brake and chassis related products, etc. | 7,800 | Apr. 2008 |
Mar. 2009 |
Minor increase |
| Subsidiaries | |||||
|
Aisin Takaoka Co., Ltd. -Headquarters plant (Aichi Pref., Japan) |
Casting facilities, etc. |
5,600 | Apr. 2008 |
Mar. 2009 |
Minor increase |
|
Aisin AW Co., Ltd. -Headquarters plant (Aichi Pref., Japan) |
Manufacturing equipment for drivetrain related products | 3,700 | Apr. 2008 |
Mar. 2009 |
Minor increase |
| -Okazaki plant (Aichi Pref., Japan) |
Manufacturing equipment for drivetrain related and information related products | 14,000 | Apr. 2008 |
Mar. 2009 |
Minor increase |
| -Tahara plant (Aichi Pref., Japan) |
Manufacturing equipment for drivetrain related products | 29,100 | Apr. 2008 |
Mar. 2009 |
Minor increase |
| -Okazaki-higashi plant (Aichi Pref., Japan) |
Manufacturing equipment for drivetrain related products | 5,500 | Apr. 2008 |
Mar. 2009 |
Minor increase |
|
Aisin Keikinzoku Co., Ltd. -Headquarters plant (Toyama Pref., Japan) |
Casting facilities, etc. | 7,500 | Apr. 2008 |
Mar. 2009 |
Minor increase |
|
Aisin Kiko Co., Ltd. -Kira plant (Aichi Pref., Japan) |
Manufacturing equipment for drivetrain related products, etc. | 6,900 | Apr. 2008 |
Mar. 2009 |
Minor increase |
|
Aisin AI Co., Ltd. -Kira plant (Aichi Pref., Japan) |
Manufacturing equipment for drivetrain related products | 6,000 | Apr. 2008 |
Mar. 2009 |
New facility |
|
Aisin AW Industries Co Ltd -Headquarters plant (Fukui Pref., Japan) |
Manufacturing equipment for drivetrain related products | 7,000 | Apr. 2008 |
Mar. 2009 |
Minor increase |
Hosei Brake Industry Co., Ltd. |
Manufacturing equipment for brake and chassis related products | 3,900 | Apr. 2008 |
Mar. 2009 |
New facility |
|
Aisin Kyushu Casting Co., Ltd. -Headquarters plant (Kumamoto Pref., Japan) |
Manufacturing equipment for engine related products | 8,600 | Apr. 2008 |
Mar. 2009 |
New facility |
|
AT Kyushu Co., Ltd. -Headquarters plant (Kumamoto, Japan) |
Casting facilities, etc. | 5,600 | Apr. 2008 |
Mar. 2009 |
New facility |
|
Aisin Automotive Casting Tennessee, Inc. -Headquarters plant (Tennessee, USA) |
Manufacturing equipment for drivetrain related products, etc. | 4,100 | Jan. 2008 |
Dec. 2008 |
Minor increase |
|
AW North Carolina, Inc. -Headquarters plant ?ｽiNorth Carolina, USA) |
Manufacturing equipment for drivetrain related products | 4,000 | Apr. 2008 |
Mar. 2009 |
Minor increase |