Mitsuba Corporation Business Report FY ended Mar. 2017
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | Rate of change (%) |
Factors | |
| Overall | ||||
| Sales | 327,977 | 333,232 | (1.6) | - |
| Operating income | 22,687 | 22,889 | (0.9) | - |
| Ordinary income | 20,213 | 19,619 | 3.0 | -Loss due to negative currency translation. |
| Profit for the year attributable to owners of the parent | 5,082 | 8,518 | (40.3) | -Profit decreased because the Company incurred an extraordinary loss to cover product warranties to compensate for the expenses that incurred to respond to malfunctioning products and to carry over reserves for damage compensation losses. |
| Transportation equipment components | ||||
| Sales | 313,783 | 319,755 |
(1.9) |
-Both revenue and operating income decreased because of negative currency translation throughout the entire fiscal year, although new-vehicle production levels recovered in Japan and new-vehicle production levels were high in North America and China. |
| Operating income | 21,760 | 22,087 | (1.5) | |
Joint Ventures
-The Company announced that its European subsidiary, Mitsuba Europe Ltd., established a joint venture “Mitsuba Teklas Turkey Otomotiv A.S.” in Gebze, Turkey. It will carry on the business of development, manufacturing and sale of wiper-related products. The new company is capitalized at EUR 25 million and be owned 80% by Mitsuba Europe Ltd. and 20% by Teklas Kaucuk Sanayi ve Ticaret A.S. The joint venture was established in November 2016 and operation is scheduled to start in January 2017. (From a press release on December 26, 2016)
R&D Structure
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, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Overall | 13,806 | 13,039 | 10,631 |
-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 2017.
- Front wiper system
- Rear wiper system
- Window washer system
- Door mirrors
- Power window motor
- Seat motor
- Sun roof motor
- Power sliding door system
- Fan motor
- Starter motor for four-wheel vehicle
- Motorcycle starter motors
- Motorcycle fuel pumps
- AC Generator (ACG) starters
- Motorcycle blinker-light system
- Automotive hub dynamos and controllers
-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, 2017) |
| 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, 2017) |
| 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 |
| Pyeong Hwa Automotive Co., Ltd. (Korea) |
Licensing manufacturing technology for automotive electrical products | From Jan. 2015 (automatic renewal) |
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | |
| Overall | 24,054 | 18,987 | 16,854 |
| -Transportation equipment components | 22,462 | 18,339 | 16,511 |
-During FY ended March 2017, the Company mainly invested in power-window motors and wiper motors four-wheel vehicles.
Planned Capital Investments |
(As of Mar. 31, 2017) |
| Name | Facility type | Planned investment amount (in million JPY) |
Construction start month |
Planned completion month |
| The Company | ||||
| R&D Center | R&D facilities | 3,289 | Apr. 2017 |
Mar. 2018 |
| Akagi Plant | Machinery to manufacture new products | 658 | Apr. 2017 |
Mar. 2018 |
| Niisato Plant | Machinery to manufacture new products | 867 | Apr. 2017 |
Mar. 2018 |
| Onishi Plant | Machinery to manufacture new products | 286 | Apr. 2017 |
Mar. 2018 |
| Tone Plant | Machinery to manufacture new products | 192 | Apr. 2017 |
Mar. 2018 |
| Tomioka Plant | Machinery to manufacture new products | 895 | Apr. 2017 |
Mar. 2018 |
| Fukushima Plant | Machinery to manufacture new products | 149 | Apr. 2017 |
Mar. 2018 |
| Niigata Plant | Machinery to manufacture new products | 81 | Apr. 2017 |
Mar. 2018 |
| Home Office Operations | Information devices/equipment | 1,270 | Apr. 2017 |
Mar. 2018 |
| Subsidiaries outside Japan | ||||
| Corporacion Mitsuba de Mexico, S.A. de C.V. | Machinery to manufacture new products | 1,340 | Apr. 2017 |
Mar. 2018 |
| Mitsuba M-Tech Vietnam Co., Ltd. | Machinery to manufacture new products | 1,000 | Apr. 2017 |
Mar. 2018 |
| Corporacion Mitsuba de Mexico, S.A. de C.V. | Machinery to manufacture new products | 950 | Apr. 2017 |
Mar. 2018 |
| P.T. Mitsuba Automotive Parts Indonesia | Machinery to manufacture new products | 700 | Apr. 2017 |
Mar. 2018 |
Outlook for FY ending Mar. 31, 2018 |
(in million JPY) |
| FY ending Mar. 31, 2018 (Forecast) |
FY ended Mar. 31, 2017 (Actual Results) |
Rate of Change (%) |
|
| Sales | 320,000 | 327,977 | (2.4) |
| Operating income | 23,000 | 22,687 | 1.4 |
| Ordinary income | 23,000 | 20,213 | 13.8 |
| Net income | 7,000 | 5,082 | 37.7 |
The 11th Mid-term Management Plan (FY ending March 2018-FY ending March 2020)
-Sales: JPY 350.0 billion
-Operating income: JPY 24.5 billion
-Operating profit margin: 7% or higher
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)