Briefing on Business Results for FY13/3
and Management Strategy
Presentation Contents
1. Overview of Business Activities
2. Marketing Information
July 2013
MITSUBA Corporation
Briefing on Business Results for FY13/3 and Management Strategy
Overview of Business Activities
1. Industry trends
2. Results for FY13/3
3. Forecast for FY14/3
4. The 9th Mid-term Management Plan
1/22
Briefing on Business Results for FY13/3 and Management Strategy
2/22
JPY in million
Sales
<<Trend of Consolidated/ Non-Consolidated Sales and Operating Income>>
Consolidated sales
Non-consolidated
sales
Consolidated
operating income
Non-consolidated
operating income
240,000/12,000
225,605/9,032
208,162/10,462
207,803/7,928
130,000/2,000
129,307/1,719
127,184/3,495
123,480/1,240
FY11/3
(The 8th Mid-term)
FY12/3
FY13/3
(The 9th Mid-term)
FY14/3
Forecast
Operating
Income
Briefing on Business Results for FY13/3 and Management Strategy
1. Industry Trends
(1) Actual Sales and Forecast <<Automobile>>
[Automobile]
FY11/3
FY12/3
(A)
FY13/3
(B)
3/22
Unit: ten thousand cars
Rate of change
(B)/(A)
FY14/3
Forecast
460
475
521
+9.7%
485
The Americas
1,895
2,057
2,304
+12.0%
2,362
Europe
1,813
1,895
1,789
5.6%
1,800
Total of Japan,
the Americas and
Europe
59%
60%
59%
-
56%
Asia
852
886
1,016
+14.7%
1,146
China
1,806
1,851
1,931
+4.3%
2,113
Others
219
244
324
+32.8%
412
Total of Asia,
China and others
41%
40%
41%
-
44%
Global Total
7,045
7,408
7,885
+6.4%
8,318
Japan
Note: January to December except for Japan
Briefing on Business Results for FY13/3 and Management Strategy
(2) Actual Production and Forecast <<Automobile>>
[Automobile]
FY11/3
FY12/3
(A)
FY13/3
(B)
4/22
Unit: ten thousand cars
Rate of change
(B)/(A)
FY14/3
Forecast
899
927
955
+3.0%
933
The Americas
1,609
1,787
1,970
+10.2%
2,059
Europe
1,883
2,045
1,980
3.2%
1,910
Total of Japan,
the Americas and
Europe
59%
59%
59%
-
57%
Asia
1,118
1,228
1,325
+7.9%
1,492
China
1,826
1,842
1,927
+4.6%
1,967
Others
156
220
174
20.9%
184
Total of Asia,
China and others
41%
41%
41%
-
43%
Global Total
7,491
8,049
8,332
+3.5%
8,546
Japan
Note: January to December except for Japan
Briefing on Business Results for FY13/3 and Management Strategy
 Changes in actual production by automobile manufacturer <<Automobile>>
Nissan
TOYOTA
Total of Japanese
automobile manufacturers
FY11/3
(The 8th Mid-term)
[Automobile]
FY11/3
FY12/3
FY12/3
(A)
Unit: ten thousand cars
Honda
Other Japanese automobile
manufacturers
Hyundai
Other foreign-affiliated
automobile manufacturers
Total of foreign-affiliated
automobile manufacturers
FY14/3
Forecast
FY13/3
(The 9th Mid-term)
FY13/3
(B)
5/22
Rate of change
(B)/(A)
FY14/3
Forecast
Total of Japanese
automobile
manufacturers
2,275
2,285
2,455
+7.4%
2,711
Global Total
7,491
8,049
8,332
+3.5%
8,546
Briefing on Business Results for FY13/3 and Management Strategy
(3) Actual Sales and Forecast <<Motorcycle>>
[Motorcycle]
Japan
Global Total
FY12/3
(A)
FY11/3
FY13/3
(B)
6/22
Unit: ten thousand cars
Rate of change
(B)/(A)
FY14/3
Forecast
38
41
40
2.4%
45
5,096
5,564
5,565
0%
5,841
Note: January to December except for Japan
Briefing on Business Results for FY13/3 and Management Strategy
(4) Actual Production and Forecast <<Motorcycle>>
[Motorcycle]
FY11/3
FY12/3
(A)
FY13/3
(B)
7/22
Unit: ten thousand cars
Rate of change
(B)/(A)
FY14/3
Forecast
Japan
59
63
50
20.6%
50
The Americas
192
228
194
14.9%
195
Europe
89
89
76
14.6%
82
Total of Japan, the
Americas and Europe
6%
7%
6%
-
5%
Asia
2,520
2,864
2,859
0.2%
3,083
China
2,080
2,152
2,168
+0.7%
2,188
Others
310
340
390
+14.7%
423
Total of Asia,
China and others
94%
93%
94%
-
95%
Global Total
5,250
5,736
5,738
0%
6,022
Note: January to December except for Japan
Briefing on Business Results for FY13/3 and Management Strategy
2. Results for FY13/3
(1) Consolidated Operating Results for FY13/3
Consolidated
FY12/3
(A)
FY13/3
(B)
Change
(B)-(A)
8/22
JPY in million
Rate of change
(B)/(A)
207,803
225,605
17,801
+8.6%
Operating income
7,928
9,032
1,103
+13.9%
Ordinary income
7,266
12,169
4,902
+67.5%
Net income
2,917
6,473
3,556
+121.9%
Net sales
Outline
JPY in million
 Non-operating income +4,911
Ordinary income
(Foreign exchange gains +2,040, Equity in income of affiliates +980)
 Non-operating expenses 1,774 (Interest expenses 1,209)
 Extraordinary losses 1,850
Net income
(Surcharge 1,107, Transaction-investigation-related expenses 563)
 taxes 2,657  Minority interests in subsidiaries 1,188
Briefing on Business Results for FY13/3 and Management Strategy
 Consolidated Operating Results for FY13/3 (by Area)
9/22
JPY in million
Net sales
Operating income
* Consolidation adjustment
176 million (FY12/3), 302 million (FY13/3)
Briefing on Business Results for FY13/3 and Management Strategy
10/22
 Sales Composition (by Business and by Car Maker Group) for FY13/3
Sales composition
by Business
FY12/3
FY13/3
First Business
Second Business
Third Business
Fourth Business
Fifth Business
Sales composition
by Car Maker Group
* Excluding facility and royalty sales.
Honda
Renault/ Nissan Group
Fuji Heavy Industries
Toyota Group
VW Group
Others
* Including sales via
Tier 1 suppliers.
Briefing on Business Results for FY13/3 and Management Strategy
(3) Factor analysis of changes in consolidated
ordinary income for FY13/3
原材料価格
Decrease in raw
material
prices
値下り
▲9,321
＋2,749
Cost-cutting
Effects of exchange
コスト改善
measures
為替影響
rate
fluctuations
Changes in sales/
売上変動
＋795
sales composition, ＋2,469
構成差等
etc.
＋4,413
FY12/3
前期実績
(Actual)
JPY in million
Increases in labor costs
and expenses, etc.
人件費・経費増加
Copper, iron and steel,
neodymium magnet
その他
Others
＋3,798
US dollar 79.65  82.26 yen
Euro 109.65 yen  106.44 yen
7,266
Increase in gains from difference in exchange rates between foreign
currency asset evaluation and payment receipts +2,910
Others +897
＋4,902
11/22
FY13/3
当期実績
(actual)
12,169
Briefing on Business Results for FY13/3 and Management Strategy
(3) Non-Consolidated Operating Results for FY13/3
NonConsolidated
FY12/3
(A)
FY13/3
(B)
12/22
JPY in million
Change
(B)-(A)
Rate of change
(B)/(A)
123,480
129,307
5,827
+4.7%
Operating income
1,240
1,719
479
+38.6%
Ordinary income
2,957
4,565
1,608
+54.4%
Net income
1,360
1,552
192
+14.1%
Net sales
Outline
JPY in million
 Non-operating income +4,070
Ordinary income
(Dividend income +1,644, Foreign exchange gains +1,708)
 Non-operating expenses 1,224 (Interest expenses 945)
 Extraordinary losses 2,490
Net income
(Surcharge 1,107, Transaction-investigation-related expenses 563)
 Income taxes 523
Briefing on Business Results for FY13/3 and Management Strategy
(4) Factor analysis of changes in non-consolidated
ordinary income for FY13/3
Copper, iron and steel,
neodymium magnet
Effects of exchange
rate
fluctuations
為替影響
原材料価格
Decrease
in raw
+640
material
prices
値下り
+1,532
FY12/3
(Actual)
前期実績
13/22
JPY in million
Increases in labor
人件費・経費増加
costs
and expenses, etc.
▲2,936
Cost-cutting
measures
コスト改善
Changes in
売上変動
sales/sales
構成差等etc.
composition,
Others
その他
+1,653
▲410
+1,129
US dollar 79.65 yen  82.26 yen
Euro 109.65 yen  106.44 yen
2,957
Increase in gains from difference in exchange rates between
foreign currency asset evaluation and payment receipts +1,107
Others +22
+1,608
FY13/3
当期実績
(Actual)
4,565
Briefing on Business Results for FY13/3 and Management Strategy
(5) Effect of Foreign Exchange Rate on Operating Income
FY11/3
(Actual exchange
rate for yen)
FY12/3
FY13/3
(Actual
exchange rate
for yen)
(Actual
exchange rate
for yen)
14/22
JPY
FY14/3
Foreign exchange
sensitivity
(in millions of
yen per year)
(Supposed
exchange rate for
yen)
US Dollar
87.83
79.74
82.26
300
95.00
Euro
111.58
111.08
106.44
25
125.00
Real exchange rates: The average exchange rates in Japan (from April to March)
and overseas (from January to December).
(6) Capital Expenditures and Depreciation
FY11/3
FY12/3
(A)
FY13/3
(B)
JPY in million
Change
(B)-(A)
FY14/3
Forecast
[ Capital
Expenditures ]
9,237
12,236
18,093
5,757
15,000
[ Depreciation]
10,906
11,153
10,773
380
13,000
Briefing on Business Results for FY13/3 and Management Strategy
3. Forecast for FY14/3
(1) Consolidated Results Forecast for FY14/3
Consolidated
Net sales
FY13/3
(A)
Forecast for
FY14/3
(B)
Change
(B)-(A)
15/22
JPY in million
Rate of change
(B)/(A)
225,605
240,000
14,395
+6.4%
Operating income
9,032
12,000
2,968
+32.9%
Ordinary income
12,169
13,000
831
+6.8%
6,473
8,000
1,527
+23.6%
Net income
Outline
Ordinary income
JPY in million
 Non-operating income +2,500
(Equity in income of affiliates +950, Interest and dividend income +650)
 Non-operating expenses 1,500 (Interest expenses 1,250)
 Extraordinary losses 800 (Loss on retirement of noncurrent assets 500)
Net income
 Income taxes 3,000  Minority interests in subsidiaries 1,200
Briefing on Business Results for FY13/3 and Management Strategy
■Consolidated Results Forecast for FY14/3 (by Area)
16/22
JPY in million
Net sales
Operating income
* Consolidation adjustment
302million (FY13/3), 300million (FY14/3)
Briefing on Business Results for FY13/3 and Management Strategy
17/22
 Sales Composition Forecast (by Business and by Car Maker Group) for FY14/3
Sales composition by
business
FY13/3
FY14/3
First Business
Second Business
Third Business
Fourth Business
Fifth Business
Sales composition by car
maker group
* Excluding facility and royalty sales
Honda
Renault/Nissan Group
Fuji Heavy Industries
Toyota Group
VW Group
Others
* Including sales via
Tier 1 suppliers
Briefing on Business Results for FY13/3 and Management Strategy
(2) Non-Consolidated Results Forecast for FY14/3
Non-Consolidated
FY13/3
(A)
Forecast for
FY14/3
(B)
Change
(B)-(A)
18/22
JPY in million
Rate of change
(B)/(A)
129,307
130,000
693
+0.5%
Operating income
1,719
2,000
281
+16.3%
Ordinary income
4,565
4,000
565
12.4%
Net income
1,552
2,000
448
+28.9%
Net sales
Outline
JPY in million
 Non-operating income +3,000 (Interest and dividend income +2,500)
Ordinary income
Net income
 Non-operating expenses 1,000 (Interest expenses 900)
 Extraordinary losses 800
(Loss on retirement of noncurrent assets 800)
 Income taxes 1,200
Briefing on Business Results for FY13/3 and Management Strategy
19/22
4. The 9th Mid-term Management Plan
(For three years from April 2011 to March 2014)
(1) Environmental Awareness
Addition from the previous
Changes in the automobile industry
year’s briefing material
 Market expansion in emerging nations (expansion of new middle-class consumers) --- BRICs, VISTA
 Increase of global automobile sales/expansion of market for inexpensive/very inexpensive
automobiles
 Energy, global environment
 Shift from fossil fuels to alternative fuels/EV, HEV, PHEV/downsizing, weight reduction
 Domestic market
 Aging population with declining birthrate/changes in consumption patterns (growing disinterest
among young people in owning cars)/measures to restore quake-stricken areas / hollowing out
 Delay in economic recovery/the yen’s appreciation (the range of 70 yen to the dollar)
 The economy is on a recovery track the yen’s depreciation (the range of 90 yen to the dollar)
 Focus of market is shifting to emerging countries/automotive body manufacturers are shifting
production bases overseas
 Avoiding risk of concentrating production bases and supply sources
 Acceleration of production shift from Japan to overseas/diversification of supply sources / China risk
 Car makers are accelerating efforts for modulization (VW: MQB, Toyota: TNGA, Nissan: CMF)
 More and more Japanese car makers are considering adopting globally standardized products of
mega suppliers.
Briefing on Business Results for FY13/3 and Management Strategy
20/22
(2) The 9th Mid-term Management Policy
Slogan
Management
Policy
Growing Globally
~ Reinforcing Consolidated Management ~
1. Develop products and parts that have overwhelming QCD
competitiveness to achieve sales expansion.
Growth
2. Improve product quality to win confidence of market and
customers.
Quality
3. Reform consolidated cost structure to ensure stable profits.
Cost
4. Change approach to work to reduce lead times of all work
processes on a global basis.
Process/
Human
Resources
Briefing on Business Results for FY13/3 and Management Strategy
(3) Top Priorities of the 9th Mid-term Management Plan
21/22
Addition from the previous
year’s briefing material
1. Prepare for growth by responding to polarization (small-size cars, environment- friendly
cars, luxury cars) plus something extra.
(1) Small-size cars (inexpensive cars, very inexpensive cars)
Accommodate emerging markets.
(2) Accommodate environmental cars and luxury cars
(3) Accommodate new growth fields (health, nursing care)
(4) Strengthen collaboration between product strategy and sales strategy
2. Use our management resources
(1) Improve BEP and implement business restructuring
i) Review balance among sales, material costs, labor costs, and expenses
ii) Continue with business restructuring
3. Risk management and compliance (establishing a crisis management system)
(1) Risk management and decentralization of production and sourcing.
(2) Establish a legal compliance system (to respond to the Anti Monopoly Law and
implement preventive measures).
4. Increase productivity substantially to accomplish both priorities described in 1 and 2 above
simultaneously.
Continue using our management resources and shift the focus to preparing for growth.
Briefing on Business Results for FY13/3 and Management Strategy
22/22
(4) Growth Strategy
The current fiscal year is the last year of the 9th mid-term management plan.
We will finish up the mid-term management plan and start drawing up the 10th mid-term
management plan.
Enhance the appeal of
products
 Develop and launch products that keep up with progress of products and
technologies in the automobile and motorcycle markets in order to grow globally.
 Strengthen collaboration between product strategy and sales strategy to launch
environment-friendly products and high-performance products.
 Enhance product competitiveness to respond to module development.
Strengthen overseas
production bases
 Obtain orders for the existing products, as well as inexpensive and very
inexpensive products for automobiles and motorcycles to respond to needs of
growth areas.
 Make active investments to expand sales and profits in the Indian and Mexican
markets.
 Enhance cost competitiveness through in-house manufacturing and local
procurement.
Step up profitability
 Transform the group’s cost structure (material costs, labor costs and expenses, etc.)
to allow it to ensure appropriate levels of profits even if there is a change in the
business environment.
 Develop a system for achieving a consolidated operating profit margin of 10%.
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