KYB Corporation (Formerly, Kayaba Industry Co., Ltd.) Business Report FY ended Mar. 2017

Financial Overview

(in millions of JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of Change
Sales 355,316 355,320 (0.0) -
Operating income 19,247 4,327 344.8 -
Profit before tax 18,852 2,825 567.3 -
Profit/loss for the year attributable to owners of the parent 14,544 (3,161) - -
AC (Automotive Components)
Sales 231,036 240,903 (4.1) 1)
Operating income 11,135 15,484 (28.1) -

*From the fiscal year that ended in March 2016, the Company started making its consolidated financial statements based on the IFRS.

1) AC (Automotive Components)
Automotive hydraulic shock absorption products (hydraulic shock absorbers, suspension systems, stay dampers)
-Sales, which were JPY 151.0 billion, fell 7.1% year-over-year (y/y) due to the effect of negative currency translation, in spite of the fact that overall sales were robust in and outside Japan.

Automotive hydraulic equipment (power-steering systems, vane pumps for CVTs)
-Sales, which were JPY 46.5 billion, increased 0.5% y/y, thanks to robust sales of electric power-steering systems and vane pumps for CVTs. However, sales of hydraulic pumps decreased.


-The Company announced that its shock absorber with improved damping force performance has been adopted for Toyota Motor Corporation's new Prius. KYB optimized the shape of shock absorber components with computer analysis, and improved the response by rectifying the operating oil flow. The company realized a weight reduction of about 700 grams per vehicle by adopting hollow piston rods. (From an article in the Nikkan Jidosha Shimbun on May 28, 2016)

R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 7,621 7,760 8,910
-AC (Automotive Components) 4,770 5,121 5,943

R&D Structure

Facility Location Research Activities
KYB Developmental Experiment Center Kamo-gun,
Gifu Pref.
-Development and testing of suspensions and steering devices for four- and two-wheel vehicles
-Test course
Basic Technology R&D Center Sagamihara City,
Kanagawa Pref.
-Conducting basic research on hydraulic equipment and automobile devices and developing new products and technologies.
Electronics Technology Center Sagamihara City,
Kanagawa Pref.
-Designing and testing of electronic equipment. Accumulating production engineering technologies.
Production Technology R&D Center Kani City,
Gifu Pref.
-Development of technologies to improve product performances and reduce costs.
Machine Tools Center Kani City,
Gifu Pref.
-Accumulating knowhow for designing production equipment.
-Carrying out projects to manufacture production equipment in-house.
KYB Technical Center (Thailand) Co., Ltd. Thailand -
KYB Europe Headquarters GmbH (Spain Branch) Spain -Development of shock absorbers
KYB (China) Investment Co., Ltd. China -Development of shock absorbers
KYB Americas Corporation U.S. -Development of shock absorbers
KYB Manufacturing Czech, s.r.o. Czech -Development of shock absorbers

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 20,578 21,300 29,785
-AC (Automotive Components) 14,733 15,070 19,152

Planned Capital Investments

Planned investment FY ending Mar. 31, 2018: JPY 17,900 million
AC (Automotive Components): JPY 9,400 million

Outlook for FY ending Mar. 31, 2018

(in millions of JPY)
FY ending Mar. 31, 2018
FY ending Mar. 31, 2017
(Actual Results)
Rate of Change
Sales 355,000 355,316 (0.1)
Operating income 15,600 19,247 (18.9)
Profit before tax


18,852 (22.6)
Profit for the year attributable to owners of the parent 9,300 14,544 (36.1)

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

2017 New Mid-term Business Plan (Fiscal year ending March 2017 - Fiscal year ending March 2019)

Basic policies

  1. AC(Automotive components)
    -Rebuild production and sales functions to thoroughly respond to the globalization of customers’ operations.
    -Establish and maintain framework for creating new products and technologies that meet customer requirements.
    -Speed up decision-making and strategy-building by switching from divisional/departmental-based organization.
  2. HC(Hydraulic components)
    -Establish a solid profit structure, regardless of volumes, and strengthen competitive advantages. -Strengthen management and development framework for creating hydraulic products for industries other than the construction industry.
  3. Fostering human talent
    -Foster and maintain human talent capable of supporting global growth strategy; create a global executive management team
  4. Developing new products and technologies
    -Build a product-development framework based on market needs
  5. Product creation
    -Improve Group productivity and reduce international logistic fees by implementing initiatives to reduce lead-time by half outside Japan and at suppliers
  6. Management
    -Enhance regional headquarters functions in Europe, China, and the Americas.