KYB Corporation(Formerly, Kayaba Industry Co., Ltd.) Business Report FY ended Mar. 2019
Financial Overview |
(in millions of JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | Rate of Change (%) |
Factors | |
| Overall | ||||
| Sales | 412,214 | 393,743 | 4.7 | -Sales increased due to strong sales of automotive hydraulic shock absorbers in Europe and the addition of sales from the consolidated subsidiary (equity method subsidiary) in Brazil from the second quarter. ｰAs for automotive hydraulic shock absorbers, revenue decreased because of lower sales of electric power-steering systems, hydraulic pumps, and vane pumps for CVTs. |
| Operating income | (28,496) | 20,885 | (236.4) | - |
| Profit before tax | (29,510) | 20,881 | (241.3) | - |
| Profit/loss for the year attributable to owners of the parent | (24,757) | 15,202 |
(262.9) |
- |
Product Development
-KYB announced that it has developed a swing valve which can control compression and expansion force independently at extremely low piston speed. The product improves drivability by generating appropriate damping force from the beginning of suspension movement. The shock absorbers equipped with this valve are installed in Lexus ES and Toyota Mark X GRMN. (From a press release on May 27, 2019)
Award
-KYB announced that its shock absorber with newly developed valve structure was received a technical award at the Toyota's new Crown project award ceremony. KYB was recognized for its outstanding technology development to improve competiveness of all-new Crown. (From a press release on August 24, 2018)
-KYB announced that its newly developed shock absorber was received a technical award at the Toyota's new Corolla Sport project award ceremony. KYB was recognized for its outstanding technology and development to improve competiveness of all-new Corolla Sport. (From a press release on August 1, 2018)
Recent Development
Joint Venture in China
-On April 26 KYB Corporation (KYB) announced that it will form a business tie-up with China-based Hubei Henglong Group (Hubei Henglong) for the development, production, and supply of electronic power steering (EPS) systems. The two companies will establish a joint venture in June and start production of EPS systems in September. KYB will strengthen its EPS business in China, the world's largest automotive market, by teaming up with Hubei Henglong, the largest Chinese EPS manufacturer. Both companies will also cooperate in the development of products for autonomous driving. KYB possesses EPS plants only in Japan and has been unable to satisfy the needs of OEMs for local procurement of EPS systems outside Japan. KYB will jointly develop products with Hubei Henglong. The joint venture will manufacture EPS systems and related parts for China and other overseas markets. (From an article in the Nikkan Jidosha Shimbun on April 27, 2018)
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
| Overall | 6,750 | 8,102 | 7,621 |
| -AC (Automotive Components) | 4,605 | 5,258 | 4,770 |
R&D Structure
| Facility | Location |
| KYB Developmental Experiment Center | Kamo-gun, Gifu Pref. |
| Basic Technology R&D Center | Sagamihara City, Kanagawa Pref. |
| Electronics Technology Center | Sagamihara City, Kanagawa Pref. |
| Production Technology R&D Center | Kani City, Gifu Pref. |
| Machine Tools Center | Kani City, Gifu Pref. |
| KYB Europe GmbH(Munich Branch) | Munich, Germany |
<*Establishing Europe Technical Center>
The company announced that it has established the "Europe Technical Center" in Munich, Germany. The new technical center will begin operations on April 3, with an aim to expand the company's development capabilities for automotive components like shock absorbers and promote its products to European OEMs like German premium automakers. The new technical center will function as a branch of KYB Europe GmbH, KYB's European headquarters in Germany. KYB primarily markets shock absorbers among other automotive components. The company currently has a 16% share of the European shock absorber market. With an aim to increase the market share, the supplier will place designers at the Europe Technical Center and establish a system to quickly respond to customers' technical requests. KYB holds technical centers in Japan, the U.S., China, and Thailand. The new center in Munich, Germany will be the company's fifth technical center. (From an article in the Nikkan Jidosha Shimbun on March 29, 2018)
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | |
| Overall | 25,345 | 20,956 | 20,578 |
| -AC (Automotive Components) | 12,075 | 14,114 | 14,733 |
Planned Capital Investments
Planned investment FY ending Mar. 31, 2020: JPY 8,700 million
AC (Automotive Components): JPY 4,900 million
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)