PIOLAX, INC. 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 67,876 64,275 5.6
Operating income 10,220 10,384 (1.6) -
Ordinary income 10,987 11,429 (3.9) -
Profit for the year attributable to owners of the parent 8,126 8,003 1.5 -


Automotive business
ーSales increased due to aggressive sales activities globally, such as in US and emerging countries. On the other hand, income fell due to rising costs for materials and labor.

Mid-term management plan (covering fiscal year that ends in March 2019 up through fiscal year that ends in March 2021)

ーCreate a well-balanced profit structure covering three regions: North America, China, and the ASEAN Region. Working under various aspects such as regions, products, customers, and business sectors, the Company set the following objectives.

  • Consolidated sales: JPY 70.0 billion, which includes JPY 47.3 billion outside Japan, or 68%.
  • Consolidated operating profit: JPY 11.3 billion; operating profit margin: 16.1%.
  • ROE: 12%

Specific indicators are below.

  • Regional breakdown
    North America, ASEAN, China, Europe: 3:3:3:1
  • Product breakdown
    fuel-system/fasteners: fasteners, drives, harnesses to be changed from 3:7 to 4:6
  • Sales percentage to non-Japanese OEMs: 15% (JPY 10 billion)

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

Business Policies

<North America>

ーInstall new heat-treatment furnace in FY2018 to increase production/localize production

ーLocalize hose clamps, metal fasteners, and fuel-system parts

-In July 2018, installed the third heat-treatment furnace in the plant in Georgia, USA, to increase production capacity of metal parts. Responding to growing demand for metal parts and OEMs’ local procurement needs in North America. In FY 2019, the sales targets of hose clamps and metal parts are 1.6 times higher than those in FY 2016, totaling USD 13 million (JPY 1.45 billion). The Company plans to spend USD 2.6 million (JPY 300 million) on capital investments such as plant buildings, heat-treatment furnaces, and auxiliary facilities. (From a Dec. 1, 2017 Nikkan Jidosha news article)

-Current deliveries to the US Big Three are below:

  • GM: standard latch being equipped globally
  • Ford: Increased orders for fastener/closure parts
  • FCA: Firm new order for RAM truck launched in January 2018.

-The Company announced that it has won the first order from Fiat Chrysler Automobiles N.V. for glove box open-close parts. The parts have been chosen for several models like pickup trucks, and Piolax will supply them from its plants in the U.S. and Mexico from 2018. Piolax also supplies glove box locks to General Motors Company (GM) and Ford Motor Company. Piolax expects that its glove box lock sales to the U.S. big three automakers will expand from 2018. Its main customers in the U.S. are Nissan Motor Co., Ltd., Honda Motor Co., Ltd., and GM. (From an article in the Nikkan Jidosha Shimbun on October 13, 2017)

ーSales in fiscal year ending in March 2021 are slated to be 30% higher than those in fiscal year that ended in March 2018; with an operating profit margin of 18%.

ーPlan to set up a sales office in Guangzhou to strengthen sales network.

ーIncreasing sales of fuel-system parts that comply with Chinese environmental regulations. Delivering products to EV companies for new-energy vehicles.

ーIncreasing sales to local Chinese OEMs, aiming to grow them 2.5 times more those of the fiscal year that ended in March 2018.

ーIn the fiscal year that ends in March 2021 sales are planned to be 55% higher than those in the fiscal year that ended in March 2018 and the operating profit is planned to be 15%.

ーMoved the North India Sales Office in Delhi in April 2018, expanding the size.

ーConducting sales promotions to Maruti-Suzuki, Hyundai, Tata, Mahindra, and Ford.

Recent product developments

Fuel-system parts

ーThe Company has business with every Japanese automotive OEM and fuel-tank OEM in Japan, diversifying its customer base and increasing sales. Going forward, it will implement initiatives on parts that comply with environmental regulations, strengthen production plants outside Japan, launch sales of motorcycle valves, and strengthen initiatives on module parts.

"2K Parts"

ーValve for plastic fuel-tanks that more securely prevents fuel permeation by using two-color forming method, and which responds to increasingly stricter fuel-permeation regulations in Europe, America, and China.
The two-layer structure makes permeation more difficult. Being delivered to the Toyota Prado and Surf.
Increased production lines at the Fuji Plant in the fiscal year that ended in March 2018. Planning to increase production in Korea, China, and the USA.

Openers/Closure Mechanism Parts

ーThe Company has the highest share in the world. It plans to increase sales globally, mainly on the Chinese market. Plans to expand sales of the spring cushion mentioned below.

"Spring cushion"

ーA new part that is fastened inside the glovebox, which combines rubber, plastic, and a spring.
Mitigates the clunking sound when the vehicle is traveling, which is caused by rubber loss. Reduced deformation of the glovebox, improving operability.
Mountable on all vehicle models. Planned to be delivered to EVs and HEVs that require noiseless cabin interiors.

-Mounted on the following models:

  • Daihatsu Move, Cast, Mira e:S
  • Toyota C-HR
  • Honda CR-V (North America)
  • Subaru Impreza
  • Ford Lincoln Navigator


ーMaking use of metal and plastic combinations. Delivering drivetrain parts, precision-part cover terminal to the Nissan Note and Serena.


-The Company announced that it reached agreement for a business tie-up with A. Raymond et Cie SCS, a France-based fastening products supplier. The two companies will cooperate in marketing, technical assistance, manufacturing, and sales of fastening products on a global scale. A steering committee consisting of representatives from the two companies will discuss details of the tie-up and decide the specifics by country and region. They will not form a capital alliance. (From an article in the Nikkan Jidosha Shimbun on November 6, 2017)

ーCollaborations in the ASEAN Region and Russia based on business alliances, with plans for Nissan-Renault PR.

R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2018
All 580
Automotive sector 524


Capital Investment

(in millions of JPY)
FY ended Mar. 31, 2018
Automotive sector 1,919

Boosting Facilities in Japan

Yokohama Technical Center

ーCenter located in Hodogaya Ward, Yokohama, which conducts design and R&D activities. Relocated in August 2018, it is planned to be the new technical center in 2020 at a total cost of JPY 3.5 billion.

Moka Plant

ーLocated in Moka, Tochigi Prefecture, produces leaf springs, clamps, plastic formed parts, and closure/opening mechanism parts. Capital investment of JPY 4.0 billion to stay competitive amidst shrinking production volumes in Japan.