Calsonic Kansei Corporation Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of Change (%) Factors
Sales 619,449 669,415 (7.5) -Although the automobile sales volumes at the company's main customers increased, thanks to a government backed sales incentive program, sales decreased because customer demand migrated toward smaller cars.
Operating income (5,699) (16,755) - -
Ordinary income (6,167) (26,029) - -
Net income (13,281) (55,302) - -


-The Company announced the decision to shut down by Sep. 2010 its Atsugi Plant in Aikawa-machi, Kanagawa Prefecture, which manufactures heat exchangers and other products. Its production operations will be transferred to the Gunma Plant in Ora-machi, Gunma Prefecture. For all extraordinary losses amounting to several hundred million yen from disposal of property and equipment, the realignment is expected to generate cost benefits of 800 million yen per year. The Atsugi Plant produces such products as radiators, motor fans, condensers and intercoolers. In view of a shrinking automobile production in Japan and continuing shifting of its production to emerging countries, the auto parts supplier has concluded it will be faced with the problem of redundant capacity in the future. (From an article in the Nikkan Jidosha Shimbun on Aug. 27, 2009)

>>> Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)

Outlook for FY2010

(in billions of JPY)
  FY2009 FY2008 Year-on-year Fluctuation
Sales 670.0 619.4 50.6
Operating income 10.0 (5.7) 15.7
Ordinary income 8.0 (6.2) 14.2
Net income 2.0 (13.3) 15.3
R&D Expenditure 22.0 21.2 0.8
Investment Expenditure 16.0 16.1 (0.1)

Sales by Region

(in billions of JPY)
  FY2009 FY2008 Year-on-year Fluctuation
Japan 380.0 363.1 16.9
North America 130.0 109.6 20.4
Europe 65.0 75.1 (10.1)
Asia 135.0 109.3 25.7


Main issues for fiscal year 2010 (ending in March 2011)

(1) Expanding operations in emerging countries
-Expanding and further localizing business in China
-Responding to the Nissan V-Platform in Thailand, India, China and Mexico

(2) Developing new sales opportunities
-Developing products for the next vehicle to be jointly marketed worldwide by Renault and Nissan.
Expanding sales of HVACs, compressors, heat exchangers, etc.

-Expanding sales of engine cooling modules, built-in oil coolers, etc.
 to Japanese automakers other than Nissan

(3) Responding to the requirements of environmentally friendly vehicles
-Shifting resources from applied development to fundamental development activities
Responding to environment-friendly vehicles such as electric vehicles

-New products
EV air-conditioning system
Soft-feel instrument panel
Base harness
High-performance small heat exchanger


R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 21,197 27,579 27,933

R&D Structure

-The Company's R&D activities are focused on developing new products and technologies that will minimize environmental impact, provide safety, and increase riding comfort.

R&D Facilities

R&D Center Saitama Pref., Japan
Test Center Tochigi Pref., Japan
Calsonic Kansei Europe Technology Center Carmarthenshire, UK
Calsonic Kansei North America Technical Center Michigan, USA
Calsonic Kansei (Shanghai) Corp.
(R&D Center)
Shanghai, China

R&D Activities

Improving product competitiveness
(1) To develop components and systems that respond to environmental concerns. And example of these types of components include a heat exchanger that complies with the need for technology that is environmentally focused.
(2) To develop an exhaust system, and the components for it, which can improve fuel economy and exhaust purification performance.
(3) To develop highly advanced modular products as well as to develop components that are higher in performance and lighter in weight.
(4) To develop meters and information delivery systems that enhance safety.
(5) To develop air-conditioning systems that provide a comfortable driving environment.

Developing strategic products
(1) Developing systems and products for next-generation electric vehicles
(2) Developing technologies and products that reduce product weight so as to decrease CO2 emissions
(3) Developing low-cost vehicle systems and products for emerging markets

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 16,000 27,000 39,000
Automotive component business 14,900 23,800 24,000

Automotive component business
-The Company mainly invested in enhancing developmental and experimental facilities, including a vehicle wind tunnel; as well as preparing production facilities to produce new products.

Capital Investment Plan (FY2010)

-The Company plans to invest a total of 16,000 million yen throughout the Group in FY2010, which will end in March 2011.