FUJI OOZX Inc. Business Report FY ended Mar. 2015
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | Rate of Change (%) |
Remarks | |
| Overall | ||||
| Sales | 16,903 | 16,299 | 3.7 | - |
| Operating income | 1,013 | 1,362 | (25.6) | - |
| Ordinary income | 1,577 | 1,908 | (17.3) | - |
| Net income | 939 | 1,388 | (32.3) | - |
| Automotive parts production business | ||||
| Sales | 16,448 | 15,563 | 5.7 | -Increase the use of hollow type valve. |
| Operating income | 904 | 1,256 | (28.0) | - |
Business Plan
Increasing production volume of hollow engine valves
-The Company will sharply increase the annual production volume of hollow engine valves to 10 million units in the fiscal year to end in March 2015 (FY 2014) and to 20 million units in FY 2016 from 5 million units in FY 2013. The Company expects that the high-value added hollow type will account for over 50% in exhaust valve market in a few years as a result of the spread of fuel-efficient engines. It will propose the hollow engine valves for Japanese OEMs' compact cars and minicars to expand the number of models that feature the hollow engine valves. (From an article in the Nikkan Jidosha Shimbun on April 25, 2014)
Sales promotion of hollow engine valves with lightweight retainers
-The Company will propose hollow engine valves with lightweight retainers to Japanese automakers. By combining cutting-edge weight reduction technologies for both components, the Company suggests that the total weight can be reduced further, by up to 15% compared with conventional separate valves and retainers. The Company invested JPY 1 billion in FY 2013, and further intends to invest the same amount in research and development of hollow valves in FY 2014 and FY 2015. (From an article in the Nikkan Jidosha Shimbun on May 13, 2014)
Dissolving its business alliance with TRW Automotive
-The Company announced that it will dissolve its business alliance with four subsidiaries of the TRW Group: TRW Automotive U.S. LLC, TRW Automotive GmbH, TRW Automotive J.V. LLC (TRW JV), and TRW Asia Pacific Co., Ltd. The Company will transfer all of its shares in joint ventures TRW Fuji Valve Inc. and TRW Fuji Serina Co., Ltd. to TRW JV, while acquiring TRW's share in joint venture Fuji Valve (Guangdong) Corporation to convert it into Fuji Oozx' wholly-owned subsidiary. The Company and TRW are currently negotiating to dissolve joint ventures Shin Han Valve Ind. Co., Ltd. and Shinhan Beijing Automobile Parts System Co. As they have not reached an agreement yet, the joint ventures will be operated under the same company form at the moment. In addition, the Company and TRW are likely to reach a settlement in which TRW JV will dismiss a case against Fuji Oozx that was filed in April 2014. The two companies started their alliance in 1960. (From a press release on June 30, 2015)
*TRW Fuji Valve Inc. and TRW Fuji Serina Co., Ltd. became the facilities of Federal-Mogul after TRW sold its engine valve business to Federal-Mogul.
New sales office in U.S.
-In July 2015, the Company will establish a sales company FUJI OOZX AMERICA Inc. in Huston, Texus, U.S. Operation will start from August 2015.
Outlook for FY ending Mar. 2016 |
(in million JPY) |
| FY ending Mar. 31, 2016 (Forecast) |
FY ended Mar. 31, 2015 (Actual Results) |
Rate of Change (%) |
|
| Overall | |||
| Sales | 17,000 | 16,903 | 0.6 |
| Operating income | 1,000 | 1,013 | (1.2) |
| Ordinary income | 1,200 | 1,577 | (23.9) |
| Net income | 1,000 | 939 | 6.4 |
R&D Expenses |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Overall (Automotive parts business) | 191 | 175 | 150 |
R&D Facility
-The OOZX Technical Center, located within the Shizuoka Plant premises, conducts R&D activities.
R&D Activities
-The Company worked to research and develop light-weight and high temperature-resistant engine valves, to establish technology for manufacturing engine valves, and high-abrasion materials.
Mutual Technical Assistance Agreements |
(As of Mar. 31, 2015) |
| Partner (Country) |
Items | Contents | Period |
| TRW Automotive U.S. LLC (USA) |
Engine valves | Approval for non-exclusive rights for manufacturing, sales and use | Jan. 1 1996 - (Automatic renewal) |
| TRW Automotive GmbH (Germany) |
Engine valves | Approval for non-exclusive rights for manufacturing, sales and use | Jan. 1 1996 - (Automatic renewal) |
Technology Licensing-out Agreements |
(As of Mar. 31, 2015) |
| Partner (Country) |
Items | Contents | Period |
| Shin Han Valve Ind. Co., Ltd. (Korea) |
Engine valves | Approval for exclusive rights for manufacturing, sales of technology | Sep. 29, 2014 - Sep. 28, 2015 |
| TRW Fuji Serina Co., Ltd. (Thailand) |
Engine valves | Approval for non-exclusive rights for manufacturing, sales and use of technology | Jan. 1, 2011 - Dec. 31, 2015 |
| TRW Fuji Valve Inc. (USA) |
Engine valves, valve adjusters, cotters, valve seats | Approval for non-exclusive rights for manufacturing, sales and use of technology | Sep. 15, 1988 - dissolution of JV |
| Shriram Pistons & Rings Limited (India) |
Engine valves | Approval for non-exclusive rights for manufacturing, sales and use of technology | Dec. 5, 2012 - Dec. 4, 2019 |
| Fuji Valve (Guangdong) Corporation (China) |
Engine valves, cotters, retainers | Approval for non-exclusive rights for manufacturing, sales and use of technology | Sep. 30, 2014 - Sep. 29, 2017 |
| PT. FUJI OOZX INDONESIA (Indonesia) |
Engine valves, cotters, retainers, etc. | Approval for non-exclusive rights for manufacturing, sales and use of technology | Sep. 26, 2013- Sep. 25, 2016 |
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Overall | 2,812 | 2,696 | 949 |
| -Automotive parts business | 2,808 | 2,694 | 942 |
-For the fiscal year ended March 2015, the Company primarily invested in engine-valve production facilities at its automotive parts division.
Investments Outside Japan
-The Company will start producing engine valves at its new plant in Indonesia by the autumn of 2014. In August 2013, the Company has formed PT. Fuji Oozx Indonesia, its first subsidiary and engine valve plant in the country. The plant's initial annual production capacity will be 6 million for the fiscal year ending March 2015 (FY2014), and will be lifted to 15 million in FY2017. Production increase in the first phase for FY2015-FY2017 will further be enhanced in the second and third phases. Recently, Japanese automakers are expanding production in Indonesia. The Company hopes to meet demands for engine valves with high durability made by Japanese suppliers. (From an article in the Nikkan Jidosha Shimbun on April 21, 2014)
-The Company announced that it will change the planned location of its Mexican subsidiary from Aguascalientes to Guanajuato. The new company, Fuji Oozx Mexico, S.A. de C.V., will be capitalized at MXN 25.5 million (approximately USD 1.97 million), of which 95% will be provided by Fuji Oozx and the remaining 5% will be provided by Daido Kogyo Co, Ltd. It is scheduled to be established in August 2014 and is expected to start production of engine valves in July 2016. (From a press release on July 24, 2014)
Planned Capital Investments |
(As of Mar. 31, 2015) |
| Facility (Location) |
Facility type | Planned Investment Amount (in million JPY) |
Start | Scheduled Completion |
| Shizuoka Factory (Shizuoka Pref., Japan) |
Production facilities to manufacture engine valves | 414 | Mar. 2015 |
Mar. 2016 |
| Maintenance and renewal | 192 | Mar. 2015 |
Mar. 2016 |
Data
| Mar. 2015 | Mar. 2014 | Mar. 2013 | |
| Automotive parts production | 547 | 463 | 439 |
| Distribution | 50 | 84 | 96 |
| Company (In-common) | 89 | 56 | 37 |
| Total | 686 | 603 | 572 |
Sales by Segment |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | ||||
| Sales | Operating income |
Sales | Operating income |
Sales | Operating income |
|
| Automotive parts production | 16,448 | 904 | 15,563 | 1,256 | 15,112 | 1,118 |
| Distribution | 455 | 15 | 736 | (15) | 829 | (4) |
| Adjusted amount | - | 94 | - | 121 | - | 116 |
| Total | 16,903 | 1,013 | 16,299 | 1,362 | 15,940 | 1,229 |
Sales by Geographic Area |
(in million JPY) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Japan | 13,935 | 13,665 | 13,872 |
| Asia | 1,936 | 1,708 | 1,206 |
| North America | 956 | 844 | 804 |
| Europe | 76 | 76 | 56 |
| Others | 0.1 | 6 | 1 |
| Total | 16,903 | 16,299 | 15,939 |
(Note) Sales are based on customer locations, categorized by country or region.
Consolidated |
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (thousand yen) | 16,062,678 | 16,199,832 | 15,939,679 | 16,299,304 | 16,903,200 |
| Income from ordinary business activities (thousand yen) | 1,764,741 | 1,594,379 | 1,418,053 | 1,907,865 | 1,576,901 |
| Net income (thousand yen) | 936,929 | 780,620 | 839,559 | 1,387,881 | 939,425 |
| Comprehensive income (thousand yen) | 949,447 | 675,140 | 1,079,571 | 1,894,419 | 1,467,789 |
| Net assets (thousand yen) | 19,465,012 | 19,934,532 | 20,714,215 | 22,746,219 | 24,029,004 |
| Total assets (thousand yen) | 22,741,701 | 22,973,194 | 23,962,985 | 25,841,910 | 27,480,330 |
| Book value per share (yen) | 934.72 | 959.75 | 1,000.26 | 1,072.67 | 1,127.81 |
| EPS (yen) | 45.60 | 37.99 | 40.86 | 67.55 | 45.72 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 84.5 | 85.8 | 85.8 | 85.3 | 84.3 |
| ROE (%) | 5.0 | 4.0 | 4.2 | 6.5 | 4.2 |
| PER | 7.2 | 9.7 | 9.1 | 6.6 | 11.3 |
| Cash flow from operating activity (thousand yen) | 2,342,291 | 497,828 | 2,392,864 | 1,163,166 | 2,314,943 |
| Cash flow from investment activity (thousand yen) | (606,886) | (692,185) | (983,874) | (1,799,690) | (2,925,406) |
| Cash flow from financial activity (thousand yen) | 61,545 | (205,620) | (246,663) | 223,156 | (204,579) |
| Balance at the term-end of cash and cash equivalents (thousand yen) | 8,548,295 | 8,149,390 | 9,308,525 | 8,779,957 | 8,042,927 |
| Number of employees | 598 | 584 | 572 | 603 | 686 |
Non Consolidated
| FY ended Mar. 31, 2011 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2015 | |
| Sales (thousand yen) | 15,354,019 | 15,598,404 | 15,008,140 | 14,854,924 | 15,263,261 |
| Income from ordinary business activities (thousand yen) | 1,797,573 | 1,647,247 | 1,542,423 | 1,337,227 | 1,112,340 |
| Net income (thousand yen) | 962,886 | 810,798 | 964,544 | 1,061,813 | 750,197 |
| Paid-in Capital (thousand yen) | 3,018,648 | 3,018,648 | 3,018,648 | 3,018,648 | 3,018,648 |
| Number of stock outstanding | 20,559,500 | 20,559,500 | 20,559,500 | 20,559,500 | 20,559,500 |
| Net assets (thousand yen) | 18,555,073 | 19,160,252 | 19,878,132 | 20,734,004 | 21,288,273 |
| Total assets (thousand yen) | 21,687,942 | 21,960,737 | 22,901,507 | 23,571,164 | 24,231,813 |
| Book value per share (yen) | 902.99 | 932.46 | 967.41 | 1,009.12 | 1,036.11 |
| Dividend per share (yen) | 10.00 | 12.00 | 10.00 | 10.00 | 10.00 |
| EPS (yen) | 46.86 | 39.46 | 46.94 | 51.68 | 36.51 |
| Diluted EPS (yen) | - | - | - | - | - |
| Net asset ratio (%) | 85.6 | 87.2 | 86.8 | 88.0 | 87.9 |
| ROE (%) | 5.3 | 4.3 | 4.9 | 5.2 | 3.6 |
| PER | 7.0 | 9.3 | 7.9 | 8.6 | 14.2 |
| Payout ratio (%) | 21.3 | 30.4 | 21.3 | 19.4 | 27.4 |
| Number of employees | 434 | 416 | 407 | 403 | 411 |
Sales Ratio to Major Customer |
(%) |
| FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | |
| Nissan | 15.8 | 18.2 | 18.1 |