Mitsuba Corporation Business Report FY ended Mar. 2019
Financial Overview |
(in million JPY) |
FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | Rate of change (%) |
Factors | |
Overall | ||||
Sales | 333,278 | 387,186 | (13.9) | -Material expenses and expenses to respond to issues with product quality remained high and additional tariffs due to the US-China trade war. |
Operating income | 10,956 | 19,103 | (42.6) | |
Ordinary income | 10,711 | 20,055 | (46.6) | |
Profit for the year attributable to owners of the parent | (7,021) | (6,528) | (7.6) |
Contracts in fiscal year 2018
Brand | Model | Products |
Daihatsu | Mira TOCOT | Front wiper system |
Subaru | Ascent | Power seat motor、Rear wiper system、Door mirror、High-mounted lamp、Camera cover |
Honda | N-VAN | Starter motor、ETC motor、Front wiper system、Washer、Power window motor、Horn |
AMAZE | Starter motor、ETC motor、Front wiper system、Power window motor | |
Toyota | COROLLA SPORT | Rear wiper system |
Subaru | Forester | Rear wiper system、Power Seat motor、Door mirror、Fan motor、Roof motor、Room lamp、Luggage lamp、High-mounted lamp、Camera cover |
BMW | X4 | Power window motor |
X7 | Rear wiper system | |
Mahindra & Mahindra | XUV300 | Rear wiper system |
Nissan | Altima | Front wiper system、Washer、Power window motor、Roof motor、Seat motor、Horn、Fan motor |
BMW | X5 | Rear wiper system、Power window motor |
Suzuki | Ertiga | Rear wiper system |
Lexus | UX | Exterior lamp |
Mercedes-Benz | GLE | Rear wiper system、Roof motor |
Honda | Insight | Front wiper system、Washer、Horn、Fan motor、ETC motor、Relay |
Mercedes-Benz | B-Class | Rear wiper system、Roof motor |
Porche | 911 | Front wiper system |
Toyota | Corolla | Power window motor |
Nissan/Mitsubishi | DAYZ・eK wagon | Front wiper system、Rear wiper system、Washer、Power window motor、Fan motor、Relay |
Mazda | Mazda3 | Front wiper system、Rear wiper system、Splash-free washer、Exterior lamp、Roof motor、Fan motor |
BMW | 3 series | Power window motor、Roof motor |
R&D Structure
Japan
-The Company has three R&D functions in Japan: Kiryu, Gunma Prefecture, Yokohama, Kanagawa Prefecture, and Sendai, Miyagi Prefecture.
Outside Japan
-Outside Japan, the Company has R&D centers in the U.S., Italy, France, Germany, the Philippines, India, Vietnam, Thailand and China.
R&D Expenditure |
(in million JPY) |
FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
Overall | 18,242 | 15,843 | 13,806 |
-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, 2019) |
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, 2019) |
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, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
Overall | 24,448 | 23,014 | 24,054 |
-Transportation equipment components | 22,750 | 22,286 | 22,462 |
-During FY ended March 2019, the Company mainly invested in power window motors and wiper motors for vehicles.
Planned Capital Investments |
(As of Mar. 31, 2019) |
Name | Facility type | Planned investment amount (in million JPY) |
Construction start month |
Planned completion month |
The Company | ||||
R&D Center | R&D facilities | 979 | Apr. 2019 | Mar. 2020 |
Akagi Plant | Machinery to manufacture new products | 283 | Apr. 2019 | Mar. 2020 |
Niisato Plant | Machinery to manufacture new products | 2,225 | Apr. 2019 | Mar. 2020 |
Onishi Plant | Machinery to manufacture new products | 392 | Apr. 2019 | Mar. 2020 |
Tone Plant | Machinery to manufacture new products | 244 | Apr. 2019 | Mar. 2020 |
Tomioka Plant | Machinery to manufacture new products | 718 | Apr. 2019 | Mar. 2020 |
Fukushima Plant | Machinery to manufacture new products | 429 | Apr. 2019 | Mar. 2020 |
Niigata Plant | Machinery to manufacture new products | 197 | Apr. 2019 | Mar. 2020 |
Home Office Operations | Information devices/equipment | 453 | Apr. 2019 | Mar. 2020 |
Subsidiaries outside Japan | ||||
Mitsuba Sical India Ltd. | Machinery to manufacture new products | 3,390 | Apr. 2019 | Mar. 2020 |
Guangzhou Mitsuba Electric Co., Ltd. | Machinery to manufacture new products | 3,134 | Apr. 2019 | Mar. 2020 |
Mitsuba Electric (Dalian) Co., Ltd. | Machinery to manufacture new products | 2,170 | Apr. 2019 | Mar. 2020 |
Mitsuba Vietnam Co., Ltd. | Machinery to manufacture new products | 2,081 | Apr. 2019 | Mar. 2020 |
Outlook for FY ending Mar. 31, 2020 |
(in million JPY) |
FY ending Mar. 31, 2020 (Forecast) |
FY ended Mar. 31, 2019 (Actual Results) |
Rate of Change (%) |
|
Sales | 335,000 | 333,278 | - |
Operating income | 12,000 | 10,956 | - |
Ordinary income | 12,000 | 10,711 | - |
Net income | 3,500 | (7,021) | - |
-Since sales in the other countries in Asia were able to offset the drop in sales in China, sales ended up being flat for the year. In terms of profit, the Company was able to record an operating profit-margin of over 3.5%, thanks to initiatives to improve expenses to respond to issues with product quality.
-By OEM, deliveries of automotive starters to Honda in China were lower because production of the models the Company was delivering to ended. Deliveries of motors to non-Japanese OEMs, which offer better convenience and comfort, increased.
>>>Earnings forecasts by Japanese suppliers
Major Projects in the Fiscal Year Ending March 2020
- Increase sales and profit in the Americas and Europe
- Americas: Lower expenses connected to issues with quality; increase in-house production.
- Europe: Lower expenses connected to issues with quality; improve productivity
- Improve productivity of indirect functions mainly R&D expenses
- Make use of production plants in Thailand, Philippines, etc. outside of Japan
- Improve indirect functions’ productivity
- Respond to tariffs resulting from the US-China trade war
- Relocate production plants in China to the USA, Philippines, Vietnam, etc.
- Reflect retail prices
- Respond to India’s BS6 exhaust-gas regulation
- Launch production of products for fuel-cell vehicles and starter systems.