Hitachi Automotive Systems, Ltd. Business Report FY ended Mar. 2018

Financial Overview

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 Rate of Change
Revenues 1,001,000 992,200 1.0 1)
Adjusted operating income 49,500 56,300 (0.7) 2)
Adjusted operating income rate (%) 5.0 5.7 - -


1) Sales and profits
For the fiscal year ended in March 2018, the Company's sales and profit remained flat from the previous year due to the following factors that resulted in sales increase and profit decrease.
-Factors of sales increase: Greater sales in China, foreign currency fluctuations
-Factors and profit decrease: A fall in sales in North America and a decrease in sales of in-vehicle information systems

2) Post-adjustment operating profit
Operating profit declined to the worsening of profitability for the in-vehicle information systems and a fall in sales in North America.

Recent Customer Orders Received

Central Gateway
-The Company announced that its central gateway has been adopted for Suzuki Motor's all-new Spacia and Spacia Custom tall miniwagons. The central gateway monitors communication between multiple ECU as a relay and transfers only necessary data to ECU. It will contribute to more efficient information processing and provide higher reliability communication. (From a press release on December 27, 2017)

-The Company announced that its "advanced driver assistance system electric control unit (ADAS ECU)" has been adopted for Nissan Motor Co., Ltd.'s X-Trail. ADAS ECUs can integrate several driver assistance systems like adaptive cruise control, collision damage mitigation brake, and lane departure warning systems in a single controller. The X-Trail is the second ProPilot model that is equipped with Hitachi Automotive Systems' ADAS ECU after the Serena, which was fully redesigned in August 2016. (From an article in the Nikkan Jidosha Shimbun on August 31, 2017)

Lithium-ion Battery Module
-The Company announced that its lithium-ion battery module has been adopted for the Suzuki Swift hybrid specification car. The module comprises a battery cell and a voltage detection board housed in a single case. The weight of the module has been reduced by 35% compared to the Company's previous battery modules. (From an article in the Nikkan Jidosha Shimbun on August 23, 2017)

Hot Wire slot-in Type Airflow Sensors
-The Company announced that hot wire slot-in type airflow sensors from Hitachi Automotive Systems have been used in the new, fully redesigned Prius PHV. The Hitachi Automotive Systems hot wire slot-in type airflow sensors used in the new Prius PHV are notable for their high levels of precision and high reliability. They have been used in the latest model Prius, launched in December 2015, and are now also being used in the new Prius plug-in hybrid model.
(From a press release on March 30, 2017)

New company

ーOn November 20 Hitachi Automotive Electric Motor Systems, Ltd., a joint venture between Hitachi Automotive Systems, Ltd. and Honda Motor Co., Ltd., announced that it has established Hitachi Automotive Electric Motor Systems (Guangzhou), Ltd. in Guangdong Province, China on November 17. The Guangdong-based subsidiary will develop and manufacture motors for electrified vehicles like electric vehicles and plug-in hybrid vehicles. The subsidiary is scheduled to complete a new plant in June 2019. Mass production is scheduled to begin in 2020. The new plant, which will manufacture motors, will have a site area of 88,000 square meters. Neither the production plan or investment amount have been disclosed. (From an article in the Nikkan Jidosha Shimbun on November 21, 2017)

ーHonda Motor Co., Ltd. (Honda) and Hitachi Automotive Systems, Ltd. (Hitachi Automotive Systems) announced that they have established "Hitachi Automotive Electric Motor Systems, Ltd.," a joint venture (JV) for the development, production, and sales of motors for electric vehicles (EVs) on the premises of Hitachi Automotive Systems in Hitachinaka City, Ibaraki Prefecture. The JV will install new production lines to start production from the fiscal year that ends in March 2020. It started operations with 40 employees. The two companies are considering whether they should use existing buildings or build new ones. Honda and Hitachi Automotive Systems signed a final agreement on March 24 after consultations based on the basic agreement made on February 3, and prepared for the JV's incorporation. Noboru Yamaguchi, who a board member of Hitachi Automotive Systems, became the President of the JV. The JV will supply competitive motors by utilizing the two companies' expertise, and meet growing global demand for EV motors. The new company has JPY 5 billion in capital. Hitachi Automotive Systems owns 51% and Honda 49%. They will also establish JVs in China in October 2017 and in the U.S. in 2018 or 2019. Both JVs will start EV motor production by the end of March 2021. (From an article in the Nikkan Jidosha Shimbun on July 4, 2017)

Outlook for FY ending Mar. 31, 2019

(IFRS, in billion JPY)
FY ending Mar. 31, 2019
FY ended Mar. 31, 2018
(Actual Results)
Rate of Change (%)
Revenues 990.0 1,001.0 (0.1)
Adjusted operating income 60.0 49.5 1.1

R&D Expenditure

(in billion JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 69.2 70.6 69.9

R&D Activities

One Fail-Operational technology
-The Company announced that it has developed a new One Fail-Operational technology for safe shifting from autonomous driving to control by drivers in case of damage to autonomous driving core parts. The Company aims to commercialize the device by 2020. The new technology is essential for Level 3 autonomous driving (driver operation when required by the system). To temporarily continue autonomous driving if a core autonomous driving part such as an electronic control unit (ECU) is damaged and loses functionality, the technology has a system with redundant architecture that uses emergency circuits and different components. A vehicle motion controller (VMC) will take over certain autonomous control functions from the ECU, and keep autonomous driving for 10 seconds while alerting the driver of the need to take back control. Both the autonomous driving ECU and VMC ensure a safe trajectory, and realize a gradual transition to manual driving. (From an article in the Nikkan Jidosha Shimbun on November 20, 2017)

Use of real-time database for autonomous vehicle application development
-The Company announced that they have developed technology that can rapidly replicate defects that occurred during the development of applications for autonomous driving. The technology will improve the quality of autonomous driving applications and reduce test man-hours. Hitachi AMS will introduce an autonomous driving electric control unit and software development kit equipped with the new technology to the market from November. The technology utilizes a real-time database to improve the efficiency of finding defects during autonomous vehicle application development. It records and replicates the timing of application execution and sensor data input with high precision. (From an article in the Nikkan Jidosha Shimbun on September 15, 2017)

Verification testing of autonomus vehicles on simulated city streets
-The Company announced that it conducted verification testing on simulated city streets in Hitachinaka City, Ibaraki Prefecture as a step towards realizing autonomous driving on ordinary roads. The testing verified the accuracy and range of sensors recognizing nearby vehicles, bicycles, and pedestrians in four cases: turning left, turning right, and passing at an intersection, as well as obstacle avoidance. The testing identified challenges that sensor fusion functions are facing at the time of turning left or right at intersections where the vehicle turns at a low speed, and acute rudder angle, and consequently precise recognition of subjects, is difficult. The testing also confirmed that errors made when high-precision map unit outputs the position and orientation of the autonomous vehicle fell within target values. (From an article in the Nikkan Jidosha Shimbun on May 22, 2017)

Product Developments

Long-range, forward-direction, 77GHz millimeter-wave radar smallest of its class in the world
-The Company announced that it has developed a long-range, forward-direction, 77GHz millimeter-wave radar that is the smallest of its class in the world. The radar will enable the detection of obstacles from long distances while driving. The newly developed radar has been reduced in size by more than 50 compared to the prototype developed in 2015. In addition, the radar has detection capability in the upward and downward directions. This radar is scheduled to be commercialized in 2020 as a technology that will contribute to the increased adoption of autonomous driving vehicles. (From a press release on October 3, 2017)

48V lithium-ion battery pack for mild hybrid vehicles

-The Company announced that it has developed a 48V Lithium-ion battery pack for mild hybrid vehicles with an increased output density of 1.25 times the existing level, and an increased energy density of 1.5 times the existing level. Samples will begin to be provided to automobile manufacturers, and mass production will commence from fiscal 2019. The product will be developed and sold by Hitachi Automotive Systems, and manufactured by Hitachi Vehicle Energy, Ltd., a manufacturer of automotive lithium-ion batteries. (From a press release on May 22, 2017)

Capital Expenditure

(in billion JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 66.1 50.4 72.5