Yazaki Corporation Business Report FY ended Jun. 2017

Recent Years

Financial Overview

-Sales for the fiscal year ended in June 2017 reached JPY 17,153 billion, a decrease of 1.4% from the previous year's result. The sales to domestic auto manufacturers have increased but were to be influenced by the appreciation of the Yen.

R&D Activities

-In June 2016, the company opened Yazaki Innovation, Inc in Silicon Valley in USA for the purpose of collecting the information for IoT and AI new technologies.

Investment Outside Japan

-In fiscal year 2016, the company opened new facilities, one in Mexico, two in Republic of Nicaragua and one each in Vietnam, El Salvador, Morocco and Romania, total of seven facilities to work at increase of the production by expansions and reconstructions. ( By CSR report 2017 )

-The Company has established a new company to produce automotive wiring harnesses in Serbia, and commenced mass production on July 4. Spread over 68,575 square meters, this is the Yazaki Group's first production base in the country. The new company, named Yazaki Serbia d.o.o. is a wholly owned subsidiary of the Yazaki Wiring Technologies GmbH. It is located in Sabac, Macva District, Republic of Serbia. The equity capital is approximately JPY 120 million and the investment amount is approximately JPY 3.06 billion. Yazaki Serbia will produce automotive wiring harnesses mainly for European truck makers, and it is planned to start delivery to customers in July 2017. The official opening ceremony will be held in September 2017. Yazaki Serbia also plans to hire 1,700 people by the end of 2019. As of May 31, 2017, this plant employs 322 persons. (From a press release on July 12, 2017)

-The Company announces that it opens a new facility in Arizona to meet demand and growth as west coast automakers and automotive start-ups continue to grow. The facility, located southeast of Phoenix in Chandler, serves Yazaki’s customers stationed on the west coast. The Phoenix region is quickly becoming the center of self-driving vehicles and technology. With General Motors, Toyota, Waymo, Uber, and several automotive start-ups moved into the area. Yazaki plans to significantly grow its presence with expansion of its Chandler operations - adding wire harness engineering for the company’s west coast customers later in 2017. (From a press release on June 9, 2017)

-The Company announced that it completes expansion of its Circuit Controls Corporation (CCC) manufacturing operations in Petoskey, Michigan adding production and warehouse space, manufacturing equipment, and jobs to the facility. The two year expansion increased the facility's manufacturing footprint by 22,000 square feet. In addition to adding to manufacturing floor space, the workforce increased by 22 percent, allowing CCC to keep up and exceed its average production of 40 million terminals per day. In 2016 CCC produced and shipped 9.8 billion terminals. CCC, a Yazaki company since 1986, specializes in the manufacturing and development of automotive electrical component terminals for use in Yazaki's wire harnesses, instrument clusters, and related components. (From a press release on June 1, 2017)

Withdrawal of wire-harness production in Samoa

-In Oct. 2016, the Company announced that it will discontinue production of wire harnesses at its subsidiary in Samoa, Yazaki EDS Samoa Ltd., as its major customer plans to withdraw from vehicle production in Australia. Yazaki EDS Samoa was established in 1996 and currently has a workforce of approximately 740 employees. (From a press release on October 11, 2016)