Aisin AW Co., Ltd. Business Report FY ended Mar. 2018

Recent Years

Business Overview (FY ended Mar. 31, 2018)

-Global sales of ATs were strong as a result of effective sales activities targeted to markets outside Japan. As a result, sales were JPY 1,621.2 billion yen, a year-on-year (y/y) increase of 13.3%.
The Toyota Group accounted for 37.3% of AT sales and 61.8% of navigation products.

-Despite negative factors such as rising raw-materials prices and higher R&D and depreciation expenses affecting business results, operating profit, which was JPY 141.9 billion, rose 15.5% y/y.

Business Plan

-The Company announced that it will establish a wholly-owned subsidiary, AW Mizunami, to manufacture automatic transmissions (ATs) in Mizunami City, Gifu Prefecture. This will be Aisin AW group's second AT plant in Japan and seventh worldwide. The site, acquired in September 2017, has an area of 224,838 square meters. The new plant will have an annual production capacity of 400,000 units. It is scheduled to start operations in December 2018 with an opening workforce of approximately 750. (From a press release on October 31, 2017)

- Aisin group will invest JPY 200 billion through 2020 to increase its global annual production capacity for automatic transmissions (ATs) to 13.2 million units. In October 2017, the Aisin group planned to invest JPY 100 billion through 2020 to produce 12.5 million ATs annually. Aisin Seiki's subsidiary, Aisin AW Co., Ltd., will create joint ventures in China with GAC Motor Company and Zhejiang Geely Luoyou Engine Co., Ltd., respectively. With these new joint ventures, total annual AT production capacity will be 13.2 million units. The Aisin group will increase its human resources and create 3,500 new jobs in Japan and China, respectively. (From an article in the Nikkan Jidosha Shimbun on April 28, 2018)

R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 80,300 69,200 65,800

R&D Activities

-In order to respond to diversifying drivetrain systems and the growth in high-spec communications in our car-centered world, the Company continued developing cutting-edge, next-generation products based on making use of its wealth of expertise on products and technology, which it gained by developing transmissions and navigation systems.

Product Development

-The Company an Aisin Seiki Group company, announced on March 27 that it has jointly developed new transmissions for the new Lexus LC coupe with Toyota Motor Corporation. The companies developed the FR Multi Stage Hybrid transmission for hybrid variants and FR 10-speed automatic transmission for gasoline-powered variants. (From an article in the Nikkan Jidosha Shimbun on March 28, 2017)

-Joint development of an FF 8-speed AT for the Toyota Camry, based on TNGA.

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 87,383 72,319 123,236