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 motorETC 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 lampHigh-mounted lampCamera 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 motorSeat motorHornFan 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、WasherHornFan motorETC 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 motorRelay
Mazda Mazda3 Front wiper system、Rear wiper system、Splash-free washer、Exterior lampRoof motorFan 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

  1. 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
  2. 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
  3. Respond to tariffs resulting from the US-China trade war
    • Relocate production plants in China to the USA, Philippines, Vietnam, etc.
    • Reflect retail prices
  4. Respond to India’s BS6 exhaust-gas regulation
    • Launch production of products for fuel-cell vehicles and starter systems.