Mitsuba Corporation Business Report FY ended Mar. 2018
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | Rate of change (%) |
Factors | |
| Overall | ||||
| Sales | 387,186 | 327,977 | - | -From FY ended March 2018, the term-end was changed from December to March, extending the accounting period by 3 months to 15 months. Sales excluding the effect of the change were JPY 338 billion. |
| Operating income | 19,103 | 22,687 | - | -Material costs remained high; registered costs to deal with quality defects |
| Ordinary income | 20,055 | 20,213 | - | - |
| Profit for the year attributable to owners of the parent | (6,528) | 5,082 | - | Settlement of a collective civil suit in the U.S. and costs to deal with recalls were registered as an extraordinary loss. ｰDeferred income taxes were registered due to deferred tax liabilities recorded to the retained earnings of an overseas subsidiary. |
| Transportation equipment components | ||||
| Sales | 371,159 | 313,783 |
- |
Profit declined due to the costs to address faulty products despite a recovery in domestic auto production and an increase in auto production in China. ｰBy maker, sales to Honda, VW and Audi Group increased. |
| Operating income | 18,006 | 21,760 | - | |
R&D Structure
Japan
-The Company has three R&D functions in Japan: Kiryu, Gunma Prefecture, Yokohama, Kanagawa Prefecture, and Sendai, Miyagi Prefecture.
ｰIn the development of in-vehicle electronic control systems, the Company formulated management standards covering from the examination of specifications in the early stage of the development to the development process and commercial production. The Company's development activities use advanced facilities to ensure security of the control system.
ｰIn the analysis building, the Company conducts R&D of new materials using material analysis equipment and meauring equipment of physical properties of materials.
Outside Japan
-Outside Japan, the Company has R&D centers in the U.S., Italy, France, Germany, the Philippines, India, Vietnam, Thailand and China. All of these centers 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, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 15,843 | 13,806 | 13,039 |
-The entire amount of the R&D expenditure for the current fiscal term was spent for the transportation equipment component business.
R&D Activities
The Company is localizing development to capture needs in the growing emerging markets as the domestic automotive market has almost matured.
-In order to cope with the changes in the business environment in the future (conservation of the global environment and aging population coupled with lower birthrate), the Company is advancing R&D of smart actuators using core technologies including motor technology and control technology, as well as key elemental technologies. Meanwhile, the Company is advancing R&D of systems integrating motors, control and mechanisms that will lead to the development new growth fields and future markets. The Company also conducts joint researches of advanced control technogy, sensing technology and device technology with universities and the National Institute for Materials Science in Tsukuba City.
ｰThe Company, Gunma University and Kiryu City joined hands and launched researches on the installation of mobility networks in society using autonomous driving buses and electric mobility to solve transportation problemsin local communities.
ｰThe Company opened a R&D center in Sendai City, Miyagi, in April to conduct industry-government-acadmia collaboration projects to develop new products with value highly controlled to cope with the changes in the automobiles.
-The Company launched production of the following products during the fiscal year that ended March 2018.
- 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
- 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, 2018) |
| 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, 2018) |
| 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, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 23,014 | 24,054 | 18,987 |
| -Transportation equipment components | 22,286 | 22,462 | 18,339 |
-During FY ended March 2017, the Company mainly invested in power window motors and wiper motors for 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 | 992 | Apr. 2018 | Mar. 2019 |
| Akagi Plant | Machinery to manufacture new products | 364 | Apr. 2018 | Mar. 2019 |
| Niisato Plant | Machinery to manufacture new products | 1,176 | Apr. 2018 | Mar. 2019 |
| Onishi Plant | Machinery to manufacture new products | 1,042 | Apr. 2018 | Mar. 2019 |
| Tone Plant | Machinery to manufacture new products | 469 | Apr. 2018 | Mar. 2019 |
| Tomioka Plant | Machinery to manufacture new products | 966 | Apr. 2018 | Mar. 2019 |
| Fukushima Plant | Machinery to manufacture new products | 119 | Apr. 2018 | Mar. 2019 |
| Niigata Plant | Machinery to manufacture new products | 201 | Apr. 2018 | Mar. 2019 |
| Home Office Operations | Information devices/equipment | 290 | Apr. 2018 | Mar. 2019 |
| Subsidiaries outside Japan | ||||
| Mitsuba Sical India Ltd. | Machinery to manufacture new products | 3,158 | Apr. 2018 | Mar. 2019 |
| Mitsuba Vietnam Co., Ltd. | Machinery to manufacture new products | 1,391 | Apr. 2018 | Mar. 2019 |
| Mitsuba Electric (Dalian) Co., Ltd. | Machinery to manufacture new products | 1,207 | Apr. 2018 | Mar. 2019 |
| P.T. Mitsuba Automotive Parts Indonesia | Machinery to manufacture new products | 961 | Apr. 2018 | Mar. 2019 |
Outlook for FY ending Mar. 31, 2019 |
(in million JPY) |
| FY ending Mar. 31, 2019 (Forecast) |
FY ended Mar. 31, 2018 (Actual Results) |
Rate of Change (%) |
|
| Sales | 340,000 | 387,186 | - |
| Operating income | 17,000 | 19,103 | - |
| Ordinary income | 17,000 | 20,055 | - |
| Net income | 3,000 | (6,528) | - |
In the fiscal year ending in March 2019, sales to Subaru are expected to increase.
The Company forecasts sales increases for wipers, mirros and roof motors.
ｰAssumed exchange rate for the fiscal year ending March 2019:
JPY 105.00 /USD 1 (sensitivity: JPY 200 million/yen)
JPY 125.00/EUR 1(sensitivity: 50 million/yen)
JPY 16.50/CNY 1 (sensitivity: 250 million/yen)
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.)