Mitsuba Corporation Business Report FY ended Mar. 2016
Financial Overview |
(in million JPY) |
FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | Rate of change (%) |
Factors | |
Overall | ||||
Sales | 333,232 | 306,030 | 8.9 | - |
Operating income | 22,889 | 22,096 | 3.6 | - |
Ordinary income | 19,619 | 25,231 | 22.2 | -Loss due to negative currency translation. |
Profit for the year attributable to owners of the parent | 8,518 | 11,434 | (25.5) | -In addition to negative currency translation, increases in corporate taxes and corporate-tax adjustments were also factors. |
Transportation equipment components | ||||
Sales | 319,755 | 293,601 |
8.9 |
-Automotive production volumes increased in North America and China. |
Operating income | 22,087 | 21,246 | 4.0 | -Sales increases combined with effective streamlining initiatives were factors. |
Product Development
Curvature variable door mirror
-The Company has developed "Curvature variable door mirrors" using curvature variable mirrors that provide a wider visibility angle. When a sensor detects other vehicles approaching from rear side, the door mirror curvature is changed to increase driver visibility. The Company will further proceed with the development of the curvature variable door mirror technology, and aims to commercialize it as a safety technology that is applicable to various vehicles. (From an article in the Nikkan Jidosha Shimbun on November 11, 2015)
R&D Structure
Enhancing R&D Functions outside Japan
-The Company will bolster its local research and development (R&D) capacity outside Japan by hiring more workers at its R&D sites in Europe, the U.S. and Asia. The company will also station sales engineers at its plants to develop products that meet the needs of markets and boost sales activities for OEMs. By strengthening its development functions outside Japan, the Company intends to locally develop and introduce variants that meet design, performance and cost requirements in the markets. In Japan, the Company will increase investment in the upfront development of new products and step up its efforts to meet customer needs for electrification, size and weight reductions. (From an article in the Nikkan Jidosha Shimbun on October 2, 2015)
Japan
-The Company has two R&D functions in Japan. One is the Mitsuba R&D Center (Kiryu, Gunma Pref., Japan) and the other is the Yokohama R&D Center.
Outside Japan
-Outside Japan, the Company has R&D centers in the USA, Italy, France, Germany, Thailand, the Philippines, India, Vietnam and China. All of these offices work in close collaboration with the R&D centers in Japan, forming a global R&D structure.
R&D Expenditure |
(in million JPY) |
FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
Overall | 13,039 | 10,631 | 10,364 |
-Beginning from the fiscal year that ended in March 2015, the Company has added expenses for designs of prototypes of new products and expenses involved with improvements and redesigns of existing products, into conventional R&D expenses.
R&D Activities
-The Company’s main areas of technological expertise are focused on motor technology, control technology, and elemental technology, which form the basis of development of new actuators. In addition, the Company is developing integrated systems based on motor, control, and mechanics technology. The Company is conducting joint R&D activities with universities and substance and materials R&D organizations in Tsukuba City.
-The Company launched production of the following products during the fiscal year that ended March 2016.
- Front wiper system
- Rear wiper system
- Window washer system
- Door mirrors
- Horns
- Power window motor
- Seat motor
- Sun roof motor
- Power sliding door system
- Fan motor
- Electric power steering motor
- Starter motor for four-wheel vehicle
- AC generator
- AC generator starters
- Controller
-Currently the Company is working on developing next-generation systems and actuators, working to improve their reliability while developing elemental technology.
Technology Licensing-in Agreement |
(As of Mar. 31, 2016) |
Contractor Name |
Name of other party |
Agreement Details | Contract Period |
The Company | Magna Mirrors of America (USA) |
Licensing agreement for rear-view mirror systems that include turn-signal lights. | Oct. 2005 - Sep. 2022 |
Technology Licensing-out Agreement |
(As of Mar. 31, 2016) |
Partner | Agreement Details | Contract Period |
Smith (South Africa) |
Licensing of manufacturing technology for wiper motors for automobiles. | From Mar. 1979 (automatic renewal) |
Armstrong Auto Parts Sdn. Bhd. (Malaysia) |
Licensing of production technology for automotive electrical components for automobiles and motorcycles. | From May 1992 (automatic renewal) |
Shihlin Electric & Engineering Corp. (Taiwan) |
Licensing of production technology for automotive electrical components for automobiles and motorcycles | From Aug. 1998 (automatic renewal) |
SIIX Corporation (Japan) |
Licensing technical support agreement enabling third parties to sell automotive SR motors. | From Apr. 2006 (automatic renewal) |
APM Automotive Holdings Berhad (Malaysia) |
Licensing of technology for wiper motors and washers etc. for automobiles | Apr. 2007 - Apr. 2017 |
Capital Expenditure |
(in million JPY) |
FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
Overall | 18,987 | 16,854 | 17,536 |
-Transportation equipment components | 18,339 | 16,511 | 17,043 |
-During FY ended March 2015, the Company mainly invested in power-window motors and wiper motors four-wheel vehicles.
Planned Capital Investments |
(As of Mar. 31, 2016) |
Name | Facility type | Planned investment amount (in million JPY) |
Construction start month |
Planned completion month |
The Company | ||||
R&D Center | R&D facilities | 904 | Apr. 2016 |
Mar. 2017 |
Akagi Plant | Machinery to manufacture new products | 279 | Apr. 2016 |
Mar. 2017 |
Niisato Plant | Machinery to manufacture new products | 817 | Apr. 2016 |
Mar. 2017 |
Onishi Plant | Machinery to manufacture new products | 851 | Apr. 2016 |
Mar. 2017 |
Tone Plant | Machinery to manufacture new products | 317 | Apr. 2016 |
Mar. 2017 |
Tomioka Plant | Machinery to manufacture new products | 314 | Apr. 2016 |
Mar. 2017 |
Fukushima Plant | Machinery to manufacture new products | 139 | Apr. 2016 |
Mar. 2017 |
Niigata Plant | Machinery to manufacture new products | 83 | Apr. 2016 |
Mar. 2017 |
Subsidiaries outside Japan | ||||
Corporacion Mitsuba de Mexico, S.A. de C.V. | Machinery to manufacture new products | 1,179 | Apr. 2016 |
Mar. 2017 |
Mitsuba M-Tech Vietnam Co., Ltd. | Machinery to manufacture new products | 1,015 | Apr. 2016 |
Mar. 2017 |
Mitsuba Sical India Pvt. Ltd. | Machinery to manufacture new products | 820 | Apr. 2016 |
Mar. 2017 |
Mitsuba Automotive Systems of Europe Kft. | Machinery to manufacture new products | 504 | Apr. 2016 |
Mar. 2017 |
Outlook for FY ending Mar. 31, 2017 |
(in million JPY) |
FY ending Mar. 31, 2017 (Forecast) |
FY ending Mar. 31, 2016 (Actual Results) |
Rate of Change (%) |
|
Sales | 320,000 | 333,232 | (4.0) |
Operating income | 21,000 | 22,889 | (8.3) |
Ordinary income | 21,000 | 19,619 | 7.0 |
Net income | 8,000 | 8,518 | (6.1) |
Outlook for the next year
-The Japanese economy will gradually recover. However, the future will be uncertain because of concerns about economic slowdowns in emerging countries such as China and unstable currency fluctuations.
-As for the global economy, even though the USA is expected to see continued growth, crude oil prices will fluctuate and there are latent geopolitical risks that could surface.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)