MITSUBA Corporation Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
  FY2010 FY2009 Rate of
change (%)
Factors
Overall
Sales 208,162 175,522 18.6 -
Operating income 10,462 2,176 380.8
-
Ordinary income 9,445 1,874 404.0 -
Current net income 3,655 (3,247) - -
Transportation equipment related business
Sales 199,711 166,541 19.9 Sales increased year-on-year due to strong sales in China and other Asian countries and due to the recovery in the North American market. This was in spite of lower sales in the second half, when sales fell as a result of soft demand in the market after eco-car sales incentives ended and as a result of automotive production stoppages that occurred in the wake of the Great East Japan Earthquake.
Operating income 10,118 1,816 457.2 Profit increased as a result of effective cost reductions in the areas of raw materials, fixed costs, etc.

Business Restructuring

The Company announced the planned dissolution of its wholly-owned subsidiary Miyazaki Mitsuba Corporation as of September 30, 2011. Miyazaki Mitsuba, based in Miyazaki Prefecture, engages in the manufacturing and sales of automotive components such as window washer pumps. (From a press release on July 29, 2010)

TI Automotive has acquired full ownership of Japan-based Mitsuba Walbro Inc. (MWI) by purchasing the remaining shares. MWI was a 50/50 joint venture between TI Automotive and MITSUBA Corporation of Japan. MWI manufactures fuel pump motor armatures and fuel pump modules in Isezaki, Gunma Prefecture. As a result of the acquisition, MWI will be renamed TI Automotive Japan (Gunma). TI Automotive operates sales and engineering facilities in Yokohama and Nagoya, Japan. (From a press release on July 29, 2010)

Ichikoh Industries, Ltd. and Mitsuba Corporation announced their intention to liquidate Ichikoh Mitsuba Inc. (IMIC), their US joint venture headquartered in Kentucky, around October 31, 2010. IMIC engages in the manufacturing and sale of automotive mirrors, small lamps and molded/painted plastic components. Ichikoh has a 75% stake in IMIC with the remaining 25% shares held by Mitsuba. With downward changes in the US market and slim possibility of turning the business around in the future, the two companies have adopted a resolution to dissolve the US entity. (From a press release on May 21, 2010)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D

R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 487 557 729
Transportation equipment related 399 488 645

R&D Structure

Facility Location
Mitsuba R&D Center Gunma Pref.
Japan
Yokohama R&D Base Yokohama
Japan

R&D Activities

-The Company is conducting R&D activities on new actuators, which form the basis of its core technology in the areas of motor technology and control technology; and on keys, which form the basis of elemental technology. Also, the Company is working on developing new systems in which advanced control technology, new sensor technology, and drive principles have been incorporated. In addition, the company is collaborating with external organizations such as universities, the National Institute for Materials Science in Tsukuba, etc. in the area of cutting-edge R&D.

-New products launched as of  FY2010, which ended March 2011, are as follows: front-wiper systems, rear-wiper systems, windshield washing systems, door mirrors, horns, power-window motors, seat motors, sun-roof motors, power-steering systems, fan motors, power-steering motors, starter motors for motorcycles, fuel pumps, and various types of controllers.

-Currently, the Company is conducting joint R&D activities in the area of elemental technology to raise product reliability, researching next-generation systems and actuators.

The Company used MathWorks' MATLAB and Simulink to develop the controller of the reversing wiper. MathWorks is a U.S.-based computer software developer. By adopting Model-Based Design, Mitsuba reduced their project development time from 16 weeks to 3 weeks. The reversing wiper system is currently in production, with monthly shipments of 20,000 – 30,000 units. The company has standardized on Model-Based Design for all new projects including motor control products for hybrid and electric vehicles. (From a press release on February 17, 2011)

Contracts for Receiving Technical Support

(As of Mar. 31, 2011)

Contractor
Name
Name of
other party
Contract details Contract Period
The Company,
Tokyo Electrica de Mexico, S.A. de C.V.
Ichikoh Industries
(Japan)
Exercising the usage of patents and expertise in manufacturing automotive components in Mexico. Between Dec. 1993 and the time the Company discontinues production of related products
The Company Donnelly
(USA)
License agreement on rearview mirror systems fixed on the body. This includes turn signal lights. Between Sep. 2005 and the time when the patent expires

 

Contracts for Giving Technical Support

(As of Mar. 31, 2011)

Partner Agreement Details Contract Period
Shihlin Electric & Engineering Corp.(Taiwan) Production technology license and operational license for motorcycles / automobiles electric parts From Aug. 1998
(automatic renewal)
Armstrong Auto Parts Sdn. Bhd.
(Malaysia)
Production technology license and operational license for motorcycles/automobiles electric parts From May 1992
(automatic renewal)
Valeo
(France)
Production technology license and operational license for automobile starter motors From Mar. 1989
(automatic renewal)
Smith
(South Africa)
Licensing of manufacturing technology for wiper motors for automobiles From Mar. 1979
(automatic renewal)
APM Auto
(Malaysia)
Licensing of technology for wiper motors and washers etc. for automobiles Apr. 2007 - Apr. 2012
Deloyd
(Malaysia)
Licensing of manufacturing technology for power window motors and door lock actuators for automobiles From Oct. 2001
(automatic renewal)

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Overall 9,237 9,794 13,802
Transportation equipment related 9,011 9,454 13,451

-The Company invested 9,011 million yen in facilities and equipment at its Transport Machinery Business, including subsidiaries outside Japan, mainly investing in power-window motors and power motors for four-wheel vehicles. In total, the Company invested 3,380 million yen.

Main Facility Construction Projects

Name Facility type Planned investment amount
(million JPY)
Construction
start
month
Planned completion
month
The Company
R&D Center R&D facilities 267
Apr.
2011
Mar.
2012
Akagi Plant Machinery to manufacture new products 261
Apr.
2011
Mar.
2012
Onishi Plant Machinery to manufacture new products 145 Apr.
2011
Mar.
2012
Niisato Plant Machinery to manufacture new products 1,437
Apr.
2011
Mar.
2012
Tone Plant Machinery to manufacture new products 299
Apr.
2011
Mar.
2012
Tomioka Plant Machinery to manufacture new products 575
Apr.
2011
Mar.
2012
Fukushima Plant Machinery to manufacture new products 153
Apr.
2011
Mar.
2012
Niigata Plant Machinery to manufacture new products 92
Apr.
2011
Mar.
2012
Domestic Subsidiaries
Higashinihon Diecasting Industry Co., Ltd. Machinery to increase production volume
12
Oct.
2010
Apr.
2011
Momimo Manufacturing Co., Ltd. Machinery to manufacture new products 245 May
2011
Nov.
2011