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)

1) Sales
-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
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 -
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
Nissan NV200 Suspension components Feb. 2013
Note Suspension components Apr. 2013
Sylphy (Sentra) -Front suspension member
-Rear beam
Nissan Sylphy (Sentra) -Front suspension member
-Rear beam
Honda Accord Front suspension member -
Nissan Micra -Front suspension member
-Rear beam
Nissan Sylphy (Sentra) -Front suspension member
-Rear beam


-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 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

- 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)

- 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