PIOLAX, INC.

Company Profile

■URL

http://www.piolax.co.jp/en/

■Address

51, Iwai-cho, Hodogaya-ku, Yokohama-shi, Kanagawa, 240-0023, Japan

Business Overview

-A leading manufacturer of automotive precision springs and industrial fasteners.

-The Company and Saga Tekkosho Co., Ltd. each became the dominant shareholder in the other company. The two companies have a business partnership in the field of automotive fasteners.

-The air dampers for glove boxes enjoy the largest share in the global market and are used worldwide. As for the locks for glove boxes also have the largest market share in Japan. (Research by the Company)

Financial Highlights

-In FY ended March 2016, consolidated sales were JPY 64,341 million (a 8.1% increase on a year-over-year (y/y) basis), operating income was JPY 9,151 million (a 13.3% increase y/y), ordinary income was JPY 10,063 million (a 9.3% increase y/y), and net income attributable to owners of the parent was JPY 7,025 million (a 11.5% increase y/y). Automotive related products accounted for 94% of the Company's overall sales.

-In January 2015, Piolax, Ltd., the U.K. unit of Piolax, Inc., has won a first fastener program from Renault S.A. In January 2016, the Company opened a German office to win business from Volkswagen.

-The Company's battery and motor components made from copper and flame resistance materials were adopted for EVs and HEVs. The Company is aiming to expand sales in Japan, while increasing production overseas.

Mid-term Management Plan (April 2016 - March 2019)

-In June 2016, the Company announced its new Mid-term Management Plan for April 2016 - March 2019.
Financial targets for March 2019 (USD 1 = JPY 105)

  • Consolidated sales: JPY 66 billion, among which JPY 40.9 billion (62%) is expected to be generated outside Japan
  • Consolidated operating income: JPY 9.5 billion (OPM: 14.4%), of which JPY 5.2 billion (OPM: 12.8%) is expected to be generated outside Japan. 

Shareholders

-Listed on the first section of the Tokyo Stock Exchange. (As of Mar. 31, 2016)
Name or Company Name Investment Ratio (%)
Saga Tekkohsho Co., Ltd. 15.40
BBH for Fidelity Low Priced Stock Fund 6.88
PIOLAX, Inc. 5.68
Japan Trustee Services Bank, Ltd. (Trust Account) 4.69
The Master Trust Bank of Japan, Ltd. (Trust Account) 3.57
Individual shareholder 2.92
Individual shareholder 2.56
BBH Fidelity Puritan Fidelity Series Intrinsic Opportunities Fund 2.35
Customers stockholding 2.30
Individual shareholder 1.89
Total 48.27

Products

Fasteners
-Trim clips
-Garnish clips
-2-piece clips
-Piping clips
-Screw grommets
-Spring nuts
-Plugs
-Hooks

Open-close Mechanisms Parts
-Air dampers

  • Rod type
  • String type

-Oil dampers
-Locks

  • Side lock type
  • Center lock type

-Other locks

Fuel System Parts
-Valves
-One touch connectors & Small filters
-Evaporation tube assemblies

Harness Parts
-Wiring clips (band type)
-Wiring clips (tape-binding type) & Connector clips
-Wiring clips (holder type) & Harness protectors
-Security seals

Precision Parts
-Tension springs & Torsion springs
-Wire forms
-Brackets
-Hinges
-Retainers
-Compound parts

Drive System Parts
-Compression springs
-Snap rings
-Disc springs & Flat springs
-Oil strainers & Oil gutters
-Shape-memory alloy parts

Clamp Parts
-Plate clamps
-Screw clamps

History

Sep. 1939 Established as Kato Hatsujo Inc.
Jun. 1957 Established the Yokohama Plant in Hodogaya, Yokohama
Oct. 1964 Established the Totsuka Plant in Totsuka, Yokohama
Oct. 1970 Established the Mooka Plant in the First Industrial Park in Maoka, Tochigi
Oct. 1973 Established K.P. Products Inc. in Hodogaya, Yokohama, as a joint venture with Peterson American Corporation, a spring manufacturer in the U.S. Started production of automatic transmission rings.
May, 1995 Increased capital of (USA) Piolax Corporation to USD 6 million
Aug. 1995 Established a subsidiary, Piolax Limited in Lancashire, England
Oct. 1995 Changed the name of the company to Piolax Corporation
Jun. 1996 Established Piolax Corporation in Seoul, Korea with Samyung Trading Co., Ltd. in Korea (moved to Icheon-si in April 1997)
Sep. 1996 (Korea) Piolax Corporation increased capital by 0.3 billion won to 0.4 billion won
Dec. 1996 (Korea) Piolax Corporation increased capital by 1.5 billion won to 1.9 billion won
May, 1997 (USA) Piolax Corporation obtained QS9000
Jun. 1997 (England) Piolax Limited increased capital to 33 million pounds
Feb. 1998 (Korea) Piolax Corporation increased capital by 1 billion won to 2.9 billion won
Oct. 1998 Established the Fuji Plant in Anbara, Shizuoka. Moved the Totsuka Kogyo operation to and also started the Fuji Branch in the same location (added second plant in March 2000)
Apr. 1999 Established STK Inc. by combining three subsidiaries, Totsuka Kasei, Hodogaya Hatsujo and STK
Jun. 1999 (England) Piolax Limited increased capital to 4.05 million pounds
Oct. 1999 Established PMT Inc. in Hodogaya, Yokohama
Jan. 2000 Piolax merged K.P. Products Inc.
Mar. 2000 Piolax Limited formed New Plant and transfer in Lancashire, England
Jul. 2000 Obtained ISO9001, an international quality assurance certification.
Apr. 2002 Increased the capital of Piolax Corporation located in the USA to 1,201 million US dollars.
May 2002 S.T.K Co., Ltd. changed its name to Piolax HFS, Ltd.
Oct. 2002 Established Piolax OC Systems in Hodogaya-ku, Yokohama City, Kanagawa Pref.
Jan. 2003 Reorganized KHK of UK Ltd. as a sales company by adding a sales function, and changing the company name to Piolax Ltd.
Jan. 2003 Reorganized the existing Piolax Ltd into a manufacturing company, changing the company name to Piolax Manufacturing Ltd.
Jan. 2003 Expanded the capital of Piolax (Thailand) Ltd. in Thailand to 250 million Baht.
May, 2003 Increased the capital of Piolax (Thailand) Ltd. to 300 million Baht.
Aug. 2003 Established Dongguan Piolax in Guangdong prov., China together with two Taiwanese companies.
Sep. 2003 Established a representative office in France.
Sep. 2004 Listed on the First Section of the Tokyo Stock Exchange.
Aug. 2005 Established PNS in Hodogaya-ku, Yokohama City, Kanagawa Prefecture.
Aug. 2005 Increased it share capital in Dongguan Piolax Co., Ltd. to US$3.6 million.
Oct. 2005 Merged Piolax OC Systems into Piolax.
Jan. 2007 The Company acquired all the shares in Sankyo Hatsujo Co., Ltd., which was its affiliate under the equity method.
Mar. 2007 Dongguan Piolax Co., Ltd. increased its capital to 7.1 million US dollars.
Apr. 2007 N.S Co., Ltd. absorbed Sankyo Hatsujo Co., Ltd.
May, 2007 Dongguan Piolax Co., Ltd. built a new plant in Dongguan, Guangdong Province, China, and transferred its headquarters there.
Oct. 2007 Established Piolax Kyusyu Co., Ltd. in Iizuka City, Fukuoka Prefecture.
Apr. 2009 Canceled the merger agreement with San Long Industrial Co., Ltd. in Taiwan.
Apr. 2009 Increased the capital of Dongguan Piolax Co., Ltd. in China to 19.10 million US dollars.
Dec. 2009 Established Piolax India Private Ltd. in Chennai, India.
Dec. 2009 Piolax Ltd. (U.K.) merged with Piolax Manufacturing Ltd. (U.K.)
Jul. 2010 Established Piolax Mexicana, S.A. de C.V. in Apodaca, Mexico
Jul. 2012 Established PT. Piolax Indonesia in West Java, Indonesia.
Aug. 2012 Established Wuhan Piolax Co., Ltd. in Hubei Province, China, through a joint-investment project with Dongguan Piolax Co., Ltd.
Sep. 2014 Piolax Co., Ltd. in Korea has established a new production and development base in the Incheon Free Economic Zone, and moved to the location.

Supplemental Information 1

Technology licensing-in Agreement

(As of Mar. 31, 2016)
Company Product Contract Detail Term
Norma Germany GmbH Automotive fuel delivery components Approved use of patent August 18, 1995 - August 17, 2000.
This contract renews annually.
Norma Germany GmbH Plastic fuel tank components Approved use of patent Added to the contract above.
Norma Germany GmbH Plastic fuel tank components Approved use of patent December 13, 2001 - December 12, 2006.
This contract renews annually.

Business Tie-up

(As of Mar. 31, 2016)
Company Contract Detail Term
Saga Tekkohsho Co., Ltd.
(Japan)
Comprehensive business cooperation including capital alliances March 23, 2001 through March 22, 2006.
After this, automatically extended every year unless a six-month notice is given.

>>>FY ended Mar. 31, 2008 Business report
>>>FY ended Mar. 31, 2009 Business report
>>>FY ended Mar. 31, 2010 Business report
>>>FY ended Mar. 31, 2011 Business report
>>>FY ended Mar. 31, 2012 Business report
>>>FY ended Mar. 31, 2013 Business report
>>>FY ended Mar. 31, 2014 Business report
>>>FY ended Mar. 31, 2015 Business report

>>>IR information of PIOLAX, INC.

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

Note: A figure in brackets ( ) indicates a loss