UNIPRES Corporation Business Report FY ended Mar. 2018

Financial Overview

(in millions of JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 Rate of
change (%)
Factors
Sales 330,890 321,168 3.0 -Achieved record-high sales due to brisk sales in the Asia segment.
Operating income 26,047 23,025 13.1 -Achieved record-high operating income, which is attributable to rationalization initiatives making use of the Unipres Production System (UPS) .
Ordinary income 26,447 23,034 14.8 -
Profit for the year attributable to owners of the parent 15,949 14,379 10.9 -

Contracts

In FY 2017, the Company launched manufacturing of parts for 12 models globally.
The Company is planning to start manufacturing of parts for 16 models in FY 2018 and then 19 models in FY 2019.
ーThe Company won orders for the Terra body-on-frame SUV in China and Thailand, the first model of Nissan's LCV business under the NISSAN M.O.V.E. to 2020.

ーThe Company received a new order for the parts of the new QX50 produced by COMPAS, a joint venture between Renault/Nissan and Daimler.

ーIn the U.S., the Company received an order for the parts of the new Nissan Altima to be released globally within the next few years.

ーIn Indonesia, the Company received an order for the parts of the Isuzu Traga and the Suzuki Ertiga.

ーFor the Nissan Infiniti QX50, the Company delivered the "RR SIDE MBR ASSY, R/L", "REINF-HOODLEDGE ASSY, R/L", and "FR SIDE MBR ASSY, R/L" hard-to-form frame structure components using 980 MPa material with an excellent formability. This is the world's first application of 980 MPa steel with high formability to hard-to-form lower car body parts.

R&D Expenses

(in millions of JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 3,700 3,800 3,600

R&D Structure

-The Company has 335 research and development staff members as of March 31, 2018.
-The Company has 80 industrial property rights as of March 31, 2018.

 

R&D Activities

Cold-formed stamped parts (forming technology for 980 MPa steel with high formability)
ーSuper high-tensile materials with 780 MPa or higher (top benchmark) accounts for 27% of the steel used in Nissan's Infiniti QX50, resulting in a reduction of BIW weight by 14 kg. Among the 27%, high-tensile steel of 1180 MPa/980 MPa is used for the vehicle's upper and lower body parts.

ーHigh-tensile steel of 980 MPa with high formability features excellent tensile elongation compared with the existing 980 MPa steel and equal workability with that of 590 MPa steel, contributing to the weight reduction.

ーFor further weight reduction, the Company is working to develop forming technology of steel of 1.5GPa. It will be used to produce rool rails, reinforced center pillars and other formed parts.

Aluminum forming
ーThe Company is advancing forming and joining technologies for aluminum-made vehicle frame structural parts. In developing the forming technologies, the analysis and evaluation of the maximum principal strain or other items were made possible by setting the material parameter and the optimum friction coefficient. For the joining technologies for parts, the Company is advancing the use of the resistance spot welding (RSW) technology.

Automation of overlaying of die forms
ーThe Company automated overalying of die forms to improve durability of dies through surface improvement when the die form is changed or to maintain quality for mass production. This contributes to the improvement in quality, homogenization and enhanced durability. This move is to cope with the difficulty in overlaying because of an increased use of super high-tensile materials for hard-to-form components.

ーThe Company will continue marketing of transmission parts expecting an increase in the production of internal combustion engines and HEVs.

Moves to cope with vehicle electrification
ーThe Company is developing highly heat-resistant clutch packs able to withstand high-load input of HEVs. (patent pending)
Temperature reduction by 92 degrees C, clutch pack life before judder appears is extended by 2.6 times

Capital Investment

(in millions of JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 23,100 20,000 18,400


ーThe Company is preparing for the establishment of Dongfeng Unipres Hot Stamping Corporation in Guangzhou, China. Manufacturing equipment have already been installed, and their trial operation has started. The new company will begin producing parts for prototypes from June. It is scheduled to be operational in FY 2019. Hot stamping equipment will be introduced to Unipres Mexico and Unipres Kyushu as well, both starting operations in FY 2019.

ーThe company announced plans to invest USD 40 million for an expansion at its production facility in Steele, Alabama. The expansion will include adding a new hot stamping process, which will enhance production of parts for Nissan Motor’s luxury mid-size vehicle. Unipres Alabama has been a Tier One supplier to Honda Manufacturing of Alabama in Lincoln, and Honda's East Liberty Plant in Ohio for many years. (From Alabama Department of Commerce release on June 28, 2018)

Planned Capital Investments

(As of Mar. 31, 2018)
Company
Facility
(Location)
Target of Investment Planned
Investment
Total
(in million yen)
Start End
(Scheduled)
Headquarters
(Kanagawa Pref., Japan, Shizuoka Pref., Japan)
Improve working environment and strengthen crisis management framework 3,800 Apr.
2018
Mar.
2019
Tochigi Plant
(Tochigi Pref., Japan
Kanagawa Pref., Japan)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 2,300 Apr.
2018
Mar.
2019
Fuji Plant
(ShizuokaPref., Japan)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 2,700 Apr.
2018
Mar.
2019
Unipres Kyushu Corporation
(Fukuoka Pref., Japan)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 2,100 Apr.
2018
Mar.
2019
Unipres U.S.A., Inc.
(U.S.)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 2,400 Apr.
2018
Mar.
2019
Unipress Alabama, Inc.
(U.S.)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 2,700 Apr.
2018
Mar.
2019
Unipres Mexicana, S.A. de C.V.
(Mexico)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 6,000 Jan.
2018
Dec.
2018
Unipres (UK) Limited
(UK)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,200 Jan.
2018
Dec.
2018
Unipres Guangzhou Corporation
(China)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,800 Jan.
2018
Dec.
2018
Unipres Zhengzhou Corporation
(China)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,000 Jan.
2018
Dec.
2018
Unipres Precision Guangzhou Corporation
(China)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,000 Jan.
2018
Dec.
2018
Unipres India Private Limited
(India)
Improving production operations, renewing production facilities and equipment to respond to model changes, and conducting other initiatives. 1,200 Jan.
2018
Dec.
2018

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

Mid-term Business Plan

-In June 2016, the Company announced its mid-term business plan for the three years through fiscal year 2018 (ending in March 2019). Under the plan, the Company aims to attain sales of JPY 330 billion and operating income of JPY 25 billion in FY 2018 from its FY 2015 results.
As of March 2018, the Comany forecasts sales of JPY 320 billion with operating income of JPY 24 billion for FY 2018, both falling from the results for FY 2017.