Yorozu Corp. Business Report FY ended Mar. 2013
Business Highlights
Financial Overview |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | Rate of change (%) | Factors | |
Sales | 110,550 | 101,524 | 8.9 | 1) |
Operating Profit | 7,107 | 8,139 | (12.7) | - |
Ordinary profit | 8,403 | 8,735 | (3.8) | - |
Current net profit | 5,301 | 5,418 | (2.2) |
Factors
1) Sales
Japan
-Operating revenue decreased 5.4% year-on-year, down to 50,454 million yen, due to lower sales to Nissan, its main customer, even though sales to Honda and Toyota grew for the year. Sales to Honda are on the rise, with more of the Company's suspension parts being factory installed on vehicles such as the Honda N-Box and its derivative model N-One and others, which use the same parts.
North America
-Operating revenue in North America, which was 37,836 million yen, increased 21.1% year-on-year as a result of greater production volumes by its customers in USA and Mexico.
Major Contracts
- The Company has received a new contract to supply its suspension parts for the next Honda Fit series, which will be fully remolded this year. The Company will deliver its front sub frames and front lower arms to Honda's facilities in five countries, including Japan. The all-new Fit series for the global market will include a sedan, a hatchback and a compact SUV type. The total sales volume is expected to reach 1.5 million units each year. This is the first time for the Company to win a Fit program from Honda, which is planning to assemble the global strategic model in Mexico and other emerging countries as well. (From an article in the Nikkan Jidosha Shimbun on Feb. 1, 2013)- The Company has been awarded a program from Volkswagen to supply suspension arms for the Golf. The products will be produced at Yorozu's new plant in Mexico, which is scheduled to start operations in October 2013. Yorozu has already been supplying engine and brake components to Volkswagen since the beginning of this year, but this is the first time for the company to provide suspension products, its key product line, to the automaker. The company is expecting that the new program will further open up business opportunities with the global automaker. The suspension arms will be delivered to Volkswagen's plant in the Estado de Puebla, beginning in January 2014. The Company's splash guards and oil pans are already used on the Volkswagen Jetta and the Beetle assembled in Mexico. (From an article in the Nikkan Jidosha Shimbun on Nov. 29, 2012)
-In FY2012, the Company won program business for the following products that were developed during the year. They are currently being delivered to customers.
OEM | Model | Products | Start of Delivery |
Japan | |||
Nissan | Note | -Front suspension member -Rear beam |
- |
NV350 Caravan | -Front suspension member -Engine mount |
- | |
Honda | N-ONE | -Front lower arm -Rear beam |
- |
Mazda | Atenza | Rear lower link | - |
Subaru | Legacy | Exhaust cover | - |
USA | |||
Nissan | Altima | -Front and rear suspension member -Brake pedal |
- |
Pathfinder | Suspension components | - | |
Leaf (built in U.S.A.) | Suspension components | Dec. 2012 | |
Rogue (built in U.S.A.) | Suspension components | Sep. 2013 | |
Honda | Accord | -Front lower arm -Rear upper arm |
Aug. 2012 |
Accura MDX (SUV marketed in North America) | Suspension components | Apr. 2013 | |
Mexico | |||
Nissan | NV200 | Suspension components | Feb. 2013 |
Note | Suspension components | Apr. 2013 | |
Sylphy (Sentra) | -Front suspension member -Rear beam |
- | |
Thailand | |||
Nissan | Sylphy (Sentra) | -Front suspension member -Rear beam |
- |
Honda | Accord | Front suspension member | - |
India | |||
Nissan | Micra | -Front suspension member -Rear beam |
- |
China | |||
Nissan | Sylphy (Sentra) | -Front suspension member -Rear beam |
- |
Awards
-From Nissan North America, three Excellence in Quality Awards; in October 2012.-From Hino Motors Manufacturing U.S.A., Excellence in Quality Award, for the second consecutive year.
-From Honda de Mexico, Yorozu Mexicana SA. de C.V. won awards for quality, cost performance, and delivery. Yorozu Mexicana has won Excellence in Quality Awards for six years in a row, ever since it started delivering to Honda's Mexican transplant in 2007.
-From Nissan Mexicana, Excellent in Quality Award three years in a row.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 1,404 | 1,354 | 1,473 |
R&D Structure
-The R&D Division's and Production Technology Division's R&D activities are mainly involved in developing new products and new production technology.
Technological Contracts |
(As of Mar. 31, 2013) |
Name | Country | Contract coverage | Period |
Auto chassis International S.N.C. (ACI) | France | The Contract covers various business activities for rear beams for a passenger car (the YN5) manufactured by Suzuki in China. ACI is in charge of design and development of the relevant part and Yorozu in charge of production engineering, preparatory work for mass-production and production activities in China (YBM). ACI has given Yorozu a non-exclusive license. | May 1, 2005 -Until production of the relevant passenger car is terminated |
Jay Bharat Maruti Ltd. | India | To license out non-exclusive rights to produce rear beams the Company designed and developed for the Suzuki YV4. To sell related production equipment to manufacture these products and dispatch engineers to give technical assistance. | March 2, 2009 -Until production of the relevant vehicle is terminated |
DK Austech Co., Ltd | Korea | The non-exclusive licensing agreement involves the provision of technical information and support for preparing and manufacturing samples of curling pipe that will be used on the rear axle-beam and tray-ring arm of the Renault Samsung L38. | December 1, 2012 -Until production of the relevant component is terminated |
Investment Activities
Capital Investment |
(in millions of JPY) |
FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | FY ended Mar. 31, 2011 | |
Overall | 17,057 | 11,737 | 4,785 |
Capital investments in FY ended Mar. 31, 2013
-The Company made capital investments as follows:
- Japan: 1,286 million yen to respond to launches of new-model vehicles
- North America: 6,050 million yen to respond to launches of new-model vehicles and work on construction projects at production plants in Mexico and Brazil
- Asia: 9,721 million yen to install facilities for new-model vehicle launches and work on construction projects at production plants in Indonesia and Thailand.
Investments Outside Japan
<Brazil>- The Company announced on September 11 its plan to establish a production subsidiary in Brazil. To be located at Nissan Motor's planned new suppliers park in Resende, Rio de Janeiro, the Company's first Brazilian plant will manufacture automotive suspension components, starting in the middle of 2014. It will supply its products to local facilities of Nissan and other Japanese automakers, aiming to generate 5 billion yen in yearly sales by fiscal year 2016. The Company is intending to invest a total of 7 billion yen in land, buildings and equipment. The new production subsidiary will be formed in October capitalized at R$100 million (approximately 4.3 billion yen). Kiminobu Tokuyama, Director & Vice President of Yorozu Corporation will assume the presidency of the company. The subsidiary will take on about 200 people by fiscal year 2016. (From an article in the Nikkan Jidosha Shimbun on Sep. 12, 2012)
<Thailand>
- The Company, which will be launching operations at its second plant in Thailand (Y-Ogura Automotive (Thailand), Co., Ltd. in Layong Province) in June 2013, is going to step up die production at its first Thai plant by installing additional equipment. The expansion will more than triple the company's yearly die production capacity in the country to 700 units, which is almost equal to its level in Japan. By raising the in-house production ratio of dies for producing suspension parts in the local market, the company aims to meet growing demand. The Company's die production capability including that in Japan will thereby reach 1,500 units, sharply climbing by 70 percent from the current 900 units. The Company is also expanding production in other emerging markets to support Nissan Motor's global strategy. The die plant in Thailand will thereafter become the sole supply hub for the Company's all operations in Southeast Asia. It will also supply dies to the company's Indian plant, which has so far been depending on those made in Japan. Since the Company is likely to need to make at least 2,000 dies a year in the future, the company is mulling the possibility of producing dies in China, as well. (From an article in the Nikkan Jidosha Shimbun on August 28, 2012)
New Facilities |
(As of Mar. 31, 2013) |
Business establishment | Purpose | Planned investment (thousand yen) |
Start | Planned completion |
Lend-lease contract (Yorozu Tochigi Corp.) | Renewing 3000 ton T/F FB control | 50 | Jan. 2014 | Jan. 2014 |
Installing facilities for new vehicle models | 1,079 | Jan. 2013 | Feb. 2014 | |
Lend-lease contract (Yorozu Oita Corp.) | Renewing 6D coil-line section | 68 | Jan. 2014 | Jan. 2014 |
Installing facilities for new vehicle models | 667 | Jul. 2012 | Sep. 2013 | |
Yorozu Automotive Tennessee, Inc. | Installing facilities for new vehicle models | 3,379 | Jan. 2013 | Sep. 2013 |
Yorozu Mexicana SA. de C.V. | Installing facilities for new vehicle models | 322 | Apr. 2012 | May 2013 |
Yorozu Automotive Guanajuato de Mexico, S.A. de C.V. | Plant building | 1,895 | Sep. 2012 | Jul. 2013 |
Stamping machinery | 1,327 | Mar. 2013 | Oct. 2013 | |
Painting facilities | 442 | Jan. 2013 | Jul. 2013 | |
Overhead crane | 142 | Mar. 2013 | Jul. 2013 | |
Yorozu Automotive Do Brasil Ltda. | Plant building | 3,118 | Nov. 2012 | Apr. 2014 |
Installing stamping machines and other equipment | 3,720 | Dec. 2012 | Apr. 2015 | |
Yorozu (Thailand) Co.,Ltd. | Installing facilities for new vehicle models | 2,347 | Apr. 2013 | Dec. 2013 |
Yorozu Engineering Systems (Thailand) Co., Ltd. | 5-surface maching center | 406 | Jan. 2013 | Mar. 2014 |
Y-Ogura Automotive (Thailand) Co., Ltd. | Plant building | 1,613 | Jun. 2012 | Jun. 2013 |
Installing stamping machinery | 1,472 | Aug. 2012 | Aug. 2013 | |
Installing scrap conveyor system | 110 | Nov. 2012 | May 2013 | |
Yorozu Bao Mie Automotive Co.,Ltd. | Installing facilities for new vehicle models | 1,920 | Aug. 2012 | Aug. 2013 |
Yorozu JBM Automotive Tamil Nadu Pvt Ltd. | Installing facilities for new vehicle models | 518 | Apr. 2013 | Mar. 2014 |
PT. Yorozu Automotive Indonesia | Constructing plant and auxiliary buildings | 1,130 | Jun. 2012 | Aug. 2013 |
Installing stamping production facilities | 4,740 | May 2012 | Aug. 2014 | |
Installing an ERP system and other equipment | 73 | Apr. 2013 | Aug. 2013 |