briefing on business results for fy11/3 and management

1

JUNE 2011

MITSUBA Corporation

Briefing on Business Results for FY11/3and Management Strategy

Presentation Contents

1. Overview of Business Activities2. Marketing Information

2

Overview of Business Activities

I. Industry trends

II. Results for FY11/3

III. The 9th Mid-term Management Plan

Briefing on Business Results for FY11/3

3

《Trend of Consolidated/Non-Consolidated Sales and Operating Income》

208,162225,440

209,973

175,522

150,322

123,445

111,691

127,184

3,841

-7,500

2,176

10,462

-8,928

559-348

3,495

0

50,000

100,000

150,000

200,000

250,000

FY08/3 FY09/3 FY10/3 FY11/3-10,000

-5,000

0

5,000

10,000

15,000

Consolidated sales Non-consolidated salesConsolidated operating income Non-consolidated operating income

（66th）（65th）（64th）（63ｔｈ）


(JPY in million)

4

[Automobile] FY08/3(Actual)

FY09/3(Actual)

FY10/3(Actual)

FY11/3(Actual)

Increase/Decrease

Japan 532 470 488 460 ▲28

The Americas 2,288 2,035 1,725 1,887 + 187

Europe 2,278 2,160 1,853 1,773 ▲65

Asia 695 666 692 852 + 162

China 879 938 1,364 1,806 + 442

Others 199 209 196 222 + 9

Global Total 6,871 6,478 6,318 7,000 + 682

1．Industry trends（1）Actual Sales 《Automobile》


＊ Americas: 13 countries＊ Europe: 36 countries

Note: January to December except for Japan

(Unit: ten thousand cars)

5

[Automobile] FY08/3(Actual)

FY09/3(Actual)

FY10/3(Actual)

FY11/3(Actual)

Increase/Decrease

Japan 1,179 999 887 899 + 13

The Americas 1,939 1,710 1,261 1,681 + 409

Europe 2,260 2,138 1,632 1,924 + 229

Asia 944 958 859 1,160 + 284

China 888 927 1,379 1,827 + 447

Others 187 185 175 226 + 27

Global Total 7,397 6,917 6,194 7,770 + 1,462

（2）Actual Production 《Automobile》





6

（3）Actual Sales 《Motorcycle》

[Motorcycle] FY08/3(Actual)

FY09/3(Actual)

FY10/3(Actual)

FY11/3(Actual)

Increase/Decrease

Japan 66 50 37 38 + 1

Global Total 4,273 4,629 4,444 5,096 + 616





7

（4）Actual Production 《Motorcycle》

[Motorcycle] FY08/3(Actual)

FY09/3(Actual)

FY10/3(Actual)

FY11/3(Actual)

Increase/Decrease

Japan 156 108 60 59 ▲ 1

The Americas 196 227 174 192 + 18

Europe 158 145 98 96 ▲ 2

Asia 1,834 2,049 1,913 2,509 + 442

China 1,861 2,048 2,083 2,080 ▲ 3

Others 200 195 291 310 + 9

Global Total 4,405 4,772 4,619 5,249 + 630





8

Consolidated Results for FY10/3 Results for FY11/3 Increase/Decrease

Net sales 175,522 208,162 + 32,640

Operating income 2,176 10,462 + 8,286

Ordinary income 1,874 9,445 + 7,571

Net income ▲ 3,247 3,655 + 6,902

JPY in million

Outline JPY in million

Net salesJapan 97,800 ⇒ 105,548 （+ 7,748） Europe 6,594 ⇒ 7,925 （+ 1,331）

The Americas 34,412 ⇒ 44,716 （+ 10,304） Asia 36,715 ⇒ 49,972 （+ 13,257）

Operating income

Japan 1,097 ⇒ 4,298 （+ 3,201） Europe ▲174 ⇒ 99 （+ 273）

The Americas ▲1,828 ⇒ 897 （+ 2,725） Asia 3,011 ⇒ 5,140 （+ 2,129）

Ordinary income

■Non-operating income +¥ 2,444 （Equity in income of affiliates ¥753, Interest and dividend income ¥418）

■Non-operating expenses ▲¥3,461 （Interest expenses ▲¥1,176, Foreign exchange loss▲¥1,486）

Net income

■Extraordinary losses ▲¥2,666 （Business restructuring costs ▲¥1,343, Losses on earthquake▲¥766）

■Income taxes ▲¥2,043 ■Minority interests in subsidiaries ▲¥1,080

2．Results for FY11/3（1）Consolidated Operating Results for FY11/3


9

Non-Consolidated Results for FY10/3 Results for FY11/3 Increase/Decrease

Net sales 111,691 127,184 + 15,493

Operating income 559 3,495 + 2,936

Ordinary income 1,281 3,566 + 2,285

Net income ▲580 1,344 + 1,924

（2）Non-Consolidated Operating Results for FY11/3

Outline JPY in million

Net salesProduct sales 105,308⇒118,315 （＋13,007） Royalty, etc. 2,211 ⇒ 3,614 （＋1,403）

Facility sales 1,816 ⇒ 2,944 （＋1,128） Others 2,356 ⇒ 2,311 （▲45）

Operating income

Material costs 70,349 ⇒ 77,523 （▲7,174） Labor costs 21,710 ⇒ 24,637（▲2,927）

Facility costs 1,488 ⇒ 2,695 （▲1,207） Expenses, etc. 17,585 ⇒ 18,833（▲1,248）

Ordinary income

■Non-operating income ＋¥1,894 （Dividend income ¥1,283）

■ Non-operating expenses ▲¥1,823 （ Interest expenses▲¥880 , Foreign exchange loss▲¥673）

Net income

■ Extraordinary losses ▲¥2,061（ Losses on earthquake▲¥728 , Business restructuring costs▲¥1,328）

■ Income taxes ▲¥161


JPY in million

10Briefing on Business Results for FY11/3

*Factor analysis of changes in consolidated ordinary income(JPY in million)

2,498 ▲ 1,619▲ 1,567

8,896 ▲ 6379,445

1,874

FY10/3 FY11/3

　OthersIncrease in foreign-exchange

losses -1,486Increase of equity in income

of affiliates 266

Changes insales/sales

composition, etc.

Cost cuttingmeasures

Raw material priceincreases

Effects of exchange ratefluctuations

Ordinary income +7,571million yen

US Dollar　93.62 yen → 87.83 yenEuro 130.40 yen →116.58 yen

Difference in exchange rates between sales andpayment receipts

Copper, iron and steel,neodymium magnet

11

*Factor analysis of changes in non-consolidated ordinary income(JPY in million)

1,766 ▲ 1,055

▲ 725▲ 651

2,9503,566

　OthersIncrease inforeign-exchangelosses -610

1,281

FY10/3 FY11/3

Changes insales/sales

composition,etc.

Cost cuttingmeasures

Raw materialprice increases

Effects ofexchange

rate f luctuations

Ordinary income　+2,285 million yen

US Dollar　93.62 yen →87.83 yenEuro 130.40 yen →116.58 yen

Difference in exchange rates between sales andpayment receipts

Copper, iron and steel ,neodymium magnet


12

FY08/3(Actual)

FY09/3(Actual)

FY10/3(Actual)

FY11/3(Actual)

Increase/Decrease

Share

Honda automobile 74,300 65,200 48,700 57,300 8,600 28.9％

Honda motorcycle 28,700 28,800 25,700 36,400 10,700 18.3％

Hondas in total 103,000 94,000 74,400 93,700 19,300 47.2％

Nissan/Renault 43,900 32,700 29,800 40,200 10,400 20.3％

Others 72,100 75.300 53,200 64,500 11,300 32.5％

Total 219,000 202,000 157,400 198,400 41,000 100.0％

（3）Consolidated Sales Performance for Major Clients

(*)Other main customers (breakdown of 64,500 million yen)

Fuji Heavy Industries 6.6% Suzuki 3.4% Isuzu 2.0%

Mitsubishi Motors 3.8% Mazda 2.2% GM 1.8%


JPY in million

Note: Only results in the Transportation Equipment segment are totaled.

13

Results for FY11/3

Supposed exchange rate for yen

Actual exchange rate for yen

Effect on operating income (loss) for a rate fluctuation of one (1) yen (in millions of yen per year)

US Dollar 88.00 87.83 241

Euro 130.00 116.58 19

（4）Effect of Foreign Exchange Rate onOperating Income (Loss)

Results for FY10/3 (Actual)

Results for FY11/3 (Actual)

Increase/Decrease

[ Capital Expenditures ] 9,794 9,237 ▲557

[ Depreciation] 12,637 10,906 ▲1,731

(JPY in million)（5） Capital Expenditures



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

Delay in economic recovery/the yen’s appreciation (80 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

Changes in the automobile industry

3．The 9th Mid-term Management Plan（1）Environmental Awareness

15

Growth

Management Policy

1. Develop products and parts that have overwhelming QCD competitiveness to achieve sales expansion.

2. Improve product quality to win confidence of market and customers.

3. Reform consolidated cost structure to ensure stable profits.

SloganGrowing Globally

∼ Reinforcing Consolidated Management ∼

4. Change approach to work to reduce lead times of all work processes on a global basis.

Quality

Cost

Process/ Human

Resources


（2）The 9th Mid-term Management Policy


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)

2. Use our management resources(1) Improve BEP and implement business restructuring

Review balance among sales, material costs, labor costs, and expenses.Continue with business restructuring.

3. Risk management(1) Risk management and decentralization of production and sourcing.

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.

（3）Top Priorities of the 9th Mid-term Management Plan


♦Effects of the Great East Japan Earthquake

[Item] [Details]

Effects on earnings

Sales: Non-consolidated sales in March fell short of projection by 20%Losses on earthquake: ¥766 million

(Transfer of fixed costs due to shutdown: ▲ ¥290 million)(Cost to restore original state: ▲¥476 million)

Effects on materials and parts

Number of suppliers’ plants in disaster-hit areas: 72 (number of damaged plants: 24)We have completed assessment of damage to suppliers. There are no urgent materials missing. We are taking action to ensure that there are no delays in deliveries to customers due to delivery failures in the mid-term.

Effects on domestic production bases

Fukushima Plant: Tamura-shi, Fukushima (41 km from the Fukushima Dai-ichi Nuclear Power Plant)Partially recovered on March 14, and returned to normal operation on March 22.Other production bases: Returned to normal operation on March 14.

Effects on overseas production bases No effects on business results for FY11/3

Responses to shortage of electricity supply

Energy-saving measures for production: Changes in shift work schedule and operating daysEnergy-saving measures for development efforts: Promote energy-conservation measures for experimental setup of assessment and engineering facilityCommon energy-saving measures: Promote efficiency of air-conditioning facilities, lighting fixtures and OA equipment, etc.

Responses to production increases by customers

Accelerate production, improve process of work, and promote outsourcing and local procurement.

18

I. Sales Expansion Plan for FY11/3

III. Environmental Changes and Future Market Move

IV. Mid-Term Sales Expansion Plan and Measures

Marketing Information


II. Promotion Results for FY11/3

I-1. Sales Expansion Plan for FY11/3

Marketing Strategy by Region

Japan

TheAmericas

Europe

Asia

China

• Must win orders for global car models while proposing to win orders for eco-friendly cars and compact cars.

• Developing and promoting value-enhanced products.

• Winning orders for locally-designed models by Japanese makers.

• Using the base in Brazil to promote business expansion in South America.

• Using American makers depending on the circumstances.

• Promoting sales expansion centering on Germany and France. (To collect advanced technologies and expand the Mitsuba brand)

• Winning increased orders for cars in growing emerging economies.(Thai, India, Indonesia)

• Promoting sales to local makers.

• Proposing to win orders for products for EV.• Winning order for new system products.

• Promoting sales expansion centering on Brazil.

• Winning orders in the South American areas based on C8G3 development.

• Promoting sales to foreign-affiliated makers.

• Expanding the share in India.• Proposing to win orders for environmental-

friendly products.• Promoting sales expansion in the Indonesian

market.

• Expanding share.

Automobile Motorcycle

19

I-2. Sales Expansion Plan for FY11/3

Marketing Strategy by Client

Overseas makers

Promote sales expansion centering European automakers.

Develop wiper systems with local automakers and expandtrade areas in Europe.

Develop products with independent and global Tier 1 makers.

1. Propose to win orders forinexpensive products rather thanLCC.

2. Win orders for systemized and value-enhancedproducts.

(BLM, mechatronics, PSD)

3. Expand development for Tier 1products.

(Power window motor, seat motor,roof motor, EPS, and new products)

4. Win orders for environment-friendly products.(HEV- and EV-related products)

Promote sales of the developed products to others.

Promote sales expansion in general-use and applicationmarket.

Japanese makers

Promote development with automakers and associated Tier 1s(Accelerate new product development and competitiveness).

Develop products with independent Tier 1 makers.

Expand trade areas for each automaker, win orders for their global car models.

Promote sales expansion, local manufacturers mainly in China .

5. Winning increased orders for nursing-care equipment products.

20

II-1. Promotion Results for FY11/3 by Operations

100

159

100

256

*Shown by indexation with figures for FY11/3 set at 100.

77

20

121

36

0

50

100

150

200

2011年3月期（実績）

2016年3月期（計画）

ウォッシャ

ワイパSYS

Volume(Index) No.1

OperationsNo.1

Operations

FY16/3 (planned)

FY11/3 (Results)

Window washers

Wiper systems

69

1714

219

20

36

0

100

200

300



その他

ファンモータ

EPSモータ

100

275Volume(Index)

No.3 Operations

No.3 Operations

FY16/3 (planned)

FY11/3 (Results)

Others

Fan motors

EPS motors

57

2617

145

50

60

0

100

200

300



シートモータ

ルーフモータ

P/Wモータ

No.2 Operations

No.2 Operations

Volume(Index)

FY16/3 (planned)

FY11/3 (Results)

Seat motors

Roof motors

Power window motors

27

22

713

31

43

28

818

41

0

50

100

150



リレー

ホーン

FPモジュール

ACジェネレータ

2輪スタータ

100

138No.4 Operations

No.4 Operations

Volume(Index)

FY16/3 (planned)

FY11/3 (Results)

Relays

Horns

Fuel pump modules

AC generators

Starter motors for two-wheel vehicles

100

159

100

256

21

II-2. Promotion Results for FY11/3 by Area

Japan : New orders for front wiper, rear wiper, and power window motors for mini-vehicles, EPS for SUVs and starter motors for medium-size two-wheel vehicles, etc. Orders accepted.

The Americas : New orders for seat motors for SUVs and EPS motors for SUVs in North America, power window motors for sedans in South America, etc. Orders accepted.

Europe : New orders for EPS motors for mini-vehicles and front wiper and power window motors for SUVs and AC generators for large-size two-wheel vehicles, etc. Orders accepted.

Asia : New orders for front wiper and power window motors for mini-vehicles and new orders for starter motors and AC generators for small-size two-wheel vehicles, etc. Orders accepted.

China : Power window motors and S/R motors for sedans, and front wiper, rear wiper, and window washers for vehicles used exclusively in China, etc. Orders accepted.

* Shown by indexation with figures for FY11/3 set at 100.

14141

55

16

21

26

54

84

28

0

50

100

150

200

250



中国

アジア

欧州

米州

日本

100

214Volume(Index)

FY16/3 (planned)

FY11/3 (Results)

China

Asia

Europe

TheAmericas

Japan

22

III-1. Environmental Changes and Future Market Move (mid-term)

[Changes in environment for automobile]

Region Environment of the industry

Japan ・ While technological development and production will continue to be the foundations of manufacturing, demand for automobiles will decrease due to fewer young people and disinterest among them in owning cars, as well as the accelerated aging of the population.

TheAmericas

・ While a moderate recovery trend is expected to be maintained, there is a shift in the types of vehicle sold to mini-vehicles and environment-friendly cars, which will lead to a gradual increase in the market share of Japanese automobile manufacturers.

Europe ・ Although sales are expected to decline after the termination of scrap incentive programs, production of luxury cars for export mainly to the Americas and China will increase. The environment is on a recovery trend on the whole.

Asia ・ In accordance with solid growth in emerging markets, both production and sales will continue to increase.

China ・ Although sales growth is slowing due to the discontinuation of sales promotion measures and car license plate restrictions in major cities, new demand will remain brisk.

23

[Changes in environment for motorcycle]

III-2.Environmental Changes and Future Market Move(mid-term)

Region Environment of the industry

Japan ・ Demand is on a declining long-term trend due to fewer young people and disinterest among young people in owning two-wheel vehicles.

・ Demand has continued to be weak due to the delay in the recovery from the Lehman shock and falling demand in the wake of the March 11 earthquake.

TheAmericas

・ Demand has dropped substantially in the U.S. market with few prospects of recovery.・ Demand in the Brazilian market has recovered to pre-Lehman-shock levels and will

continue to expand.

Europe ・ Market demand has leveled off with few prospects of recovery.

ASEAN ・ In step with economic growth, demand has increased especially in Indonesia and Vietnam.

India ・ The market has expanded to the order of 12 million units due to the economic recovery.・ In particular, exports have expanded remarkably.

China ・ Domestic sales are increasing and exports are expanding.

24

Overall: (FY11/3 → FY16/3: up 20,298,000 units, 29% increase over a five-year period)• Japan: Level off on the order of 4,600,000 units. (FY11/3 → FY16/3 : down 1,000 units Almost unchanged over a five-year period)• North America: Growth on the order of 20,000,000 units in 2015. (FY11/3 → FY16/3 : up 6,033,000 units, 43% increase over a five-year period)• South America: Growth mainly in Brazil. (FY11/3 → FY16/3 : up 1,797,000 units, 37% increase over a five-year period)• Europe: On a recovery trend, and will restore the 2007 level in 2015. (FY11/3 → FY16/3 : up 4,673,000 units, 26% increase over a five-year period)• Asia: Growth will be maintained. (FY11/3 → FY16/3 : up 2,779,000 units, 33% increase over a five-year period)• China: Growth will be maintained, albeit at a slower rate. (FY11/3 → FY16/3 : up 4,238,000 units, 23% increase over a five-year period)

Overall: (FY11/3 → FY16/3: up 20,298,000 units, 29% increase over a five-year period)• Japan: Level off on the order of 4,600,000 units. (FY11/3 → FY16/3 : down 1,000 units Almost unchanged over a five-year period)• North America: Growth on the order of 20,000,000 units in 2015. (FY11/3 → FY16/3 : up 6,033,000 units, 43% increase over a five-year period)• South America: Growth mainly in Brazil. (FY11/3 → FY16/3 : up 1,797,000 units, 37% increase over a five-year period)• Europe: On a recovery trend, and will restore the 2007 level in 2015. (FY11/3 → FY16/3 : up 4,673,000 units, 26% increase over a five-year period)• Asia: Growth will be maintained. (FY11/3 → FY16/3 : up 2,779,000 units, 33% increase over a five-year period)• China: Growth will be maintained, albeit at a slower rate. (FY11/3 → FY16/3 : up 4,238,000 units, 23% increase over a five-year period)

III-3.Environmental Changes and Future Market Trends (mid-term)

[Sales of Automobile]

4,601

13,967

4,903

17,727

8,521

18,062

2,221

4,700

19,000

6,100

20,800

10,200

21,400

2,800

4,600

20,000

6,700

22,400

11,300

22,300

3,000

0

20,000

40,000

60,000

80,000

100,000

2010年度 2011年度 2012年度 2013年度 2014年度 2015年度

その他

中国

アジア

欧州

南米

北米

日本

70,002

85,00090,300

FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY16/3

South AmericaSouth America

North America

Japan

Europe

Asia

China

Others

Unit: thousand cars

25

12,425

12,666

20,800

3,101

14,400

14,700

21,000

3,600

15,100

15,000

21,100

3,700

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2010年度 2011年度 2012年度 2013年度 2014年度 2015年度

52,488

58,10059,800

米州

日本

欧州

ASEAN

インド

中国

その他Others

China

India

ASEAN

Europe

TheAmericas

Japan

FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY16/3

III-4. Environmental Changes and Future Market Trends (mid-term)

26

[Production of Motorcycle]Unit: thousand cars

Overall: (FY11/3 → FY16/3: up 7,312,000 units, 14% increase over a five-year period)• Japan: Level off on the order of 700,000 units. (FY11/3 → FY16/3 : up 127,000 units, 21% increase over a five-year period)• The Americas: Growth mainly in Brazil. (FY11/3 → FY16/3 : up 1,262,000 units, 66% increase over a five-year period)• Europe: Level off on the order of 1,000,000 units. (FY11/3 → FY16/3 : up 32,000 units, 3% increase over a five-year period)• ASEAN: Growth mainly in India, Vietnam and Indonesia. (FY11/3 → FY16/3 : up 2,675,000 units, 22% increase over a five-year period)• China: Level off on the order of 21,000,000 units. (FY11/3 → FY16/3 : up 300,000 units, 1% increase over a five-year period)

Overall: (FY11/3 → FY16/3: up 7,312,000 units, 14% increase over a five-year period)• Japan: Level off on the order of 700,000 units. (FY11/3 → FY16/3 : up 127,000 units, 21% increase over a five-year period)• The Americas: Growth mainly in Brazil. (FY11/3 → FY16/3 : up 1,262,000 units, 66% increase over a five-year period)• Europe: Level off on the order of 1,000,000 units. (FY11/3 → FY16/3 : up 32,000 units, 3% increase over a five-year period)• ASEAN: Growth mainly in India, Vietnam and Indonesia. (FY11/3 → FY16/3 : up 2,675,000 units, 22% increase over a five-year period)• China: Level off on the order of 21,000,000 units. (FY11/3 → FY16/3 : up 300,000 units, 1% increase over a five-year period)

64期 65期 66期 67期 68期63期

0

50,000

100,000

150,000

200,000

250,000

300,000

2010年度

250,000

280,000

2011年度 2012年度 2013年度 2014年度 2015年度

198,440

FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY16/3

IV-1. Prospects and Measures for Mid-term Sales Expansion

[Mid-term Sales Plan]

Sales are expected to increase on a global basis due to a boost in overseas sales and introduction ofnew environmentally responsive products in the domestic market, etc.¥198,440 million in FY11/3 ⇒ ¥280,000 million in FY16/3 (increase of 41%)

Sales are expected to increase on a global basis due to a boost in overseas sales and introduction ofnew environmentally responsive products in the domestic market, etc.¥198,440 million in FY11/3 ⇒ ¥280,000 million in FY16/3 (increase of 41%)

27


Sales are expected to increase mainly in the Americas and China due to the shift of customers’ production bases overseas and overseas sales expansion.Domestic sales are expected to decline due to the decrease in automobile production, but will rebound from 2013 due to the introduction of new environmentally responsive products.

Sales are expected to increase mainly in the Americas and China due to the shift of customers’ production bases overseas and overseas sales expansion.Domestic sales are expected to decline due to the decrease in automobile production, but will rebound from 2013 due to the introduction of new environmentally responsive products.

［Mid-term Sales Plan by Area]

64期 65期 66期 67期 68期 69期63期

88,374

44,000

7,628

41,288

17,150

91,600

57,000

13,400

54,000

34,000

99,700

63,000

18,600

61,000

37,700

0

50,000

100,000

150,000

200,000

250,000

300,000 中国

アジア

欧州

米州

日本

2010年度

250,000

280,000

2011年度 2012年度 2013年度 2014年度 2015年度

198,440

(JPY in million)

FY11/3 FY12/3 FY13/3 FY14/3 FY15/3 FY16/3

Japan

Europe

Asia

China

TheAmericas

28

29

Existing products・Commodity products・Improving competitivenessby using LCC

Inexpensive products foremerging economies・Expanding quantity(Promoting sales) Existing products

・Increasing sales of systemmodule products (value-enhanced products)

Eco products・Increasing sales (responding tomarket needs)

New market products・Establishing trade areasin the future

100

100

450

300

100

1,000

100

7,500

Promotingnew sales

Establishedeconomies

Emergingeconomies

New

productsE

xisting products

Market

Products


Estimated sales for FY15/3, based on a FY11/3 (=100)

IV-4. Prospects and Measures for Mid-term Sales Expansion: Automobile as the main sales target

Emerging markets⇒ Improve local development/sourcing/production systems and expand sales of

products that are most suitable for each market.⇒ Tap into local manufacturers mainly in China and India.

Market for mini-vehicles and inexpensive cars⇒ Develop and expand sales of competitive products using technologies for

downsizing, reducing weight, and cutting costs.

Market for environment-friendly cars⇒ Propose products that anticipate market needs and capture sales areas.

Japanese maker’s Global car models⇒ Improve global production and supply systems and capture sales areas.

European market⇒ Promote sales expansion mainly in Germany and France.⇒ Roll out product strategies in line with technological evolution.

Emerging markets⇒ Improve local development/sourcing/production systems and expand sales of

products that are most suitable for each market.⇒ Tap into local manufacturers mainly in China and India.

Market for mini-vehicles and inexpensive cars⇒ Develop and expand sales of competitive products using technologies for

downsizing, reducing weight, and cutting costs.

Market for environment-friendly cars⇒ Propose products that anticipate market needs and capture sales areas.

Japanese maker’s Global car models⇒ Improve global production and supply systems and capture sales areas.

European market⇒ Promote sales expansion mainly in Germany and France.⇒ Roll out product strategies in line with technological evolution.

30

IV-5. Prospects and Measures for Mid-term Sales Expansion: Motorcycle as the main sales target

ASEAN market⇒ Actively promote securing production capacity in response to market

expansion.⇒ Promote sales expansion of fuel pump modules for fuel injection

systems and cell dynamos against the backdrop of a shift to fuel injection systems due to restrictions on emissions and improved fuel efficiency.

India⇒ Expand sales areas by developing more inexpensive products and

boosting production capacity.

Next markets (Africa, Central/South America, and Pakistan, etc.)⇒ Tap into next markets to sell inexpensive starter systems and ACG starters

through complementary parts using our production bases in China and ASEAN.

ASEAN market⇒ Actively promote securing production capacity in response to market

expansion.⇒ Promote sales expansion of fuel pump modules for fuel injection

systems and cell dynamos against the backdrop of a shift to fuel injection systems due to restrictions on emissions and improved fuel efficiency.

India⇒ Expand sales areas by developing more inexpensive products and

boosting production capacity.

Next markets (Africa, Central/South America, and Pakistan, etc.)⇒ Tap into next markets to sell inexpensive starter systems and ACG starters

through complementary parts using our production bases in China and ASEAN.

31

IV-6. Prospects and Measures for Mid-term Sales Expansion: Focusing on health and nursing care fields as the main sales targets

Home care beds and beds for nursing care facilities⇒ Respond to the increase in sales due to the accelerated aging of the

population and recovery efforts in quake-stricken areas.

Bedding peripherals⇒ Develop and expand sales of new products that accommodate the

shortage of caretakers caused by an aging population with a declining birthrate.

Health-related equipment⇒ Expand sales of health support products in line with the increased

awareness of disease prevention and restoration of health.

Business expansion in line with market expansion of overseas customers⇒ Respond to accelerated aging of populations abroad mainly in advanced

countries.

Home care beds and beds for nursing care facilities⇒ Respond to the increase in sales due to the accelerated aging of the

population and recovery efforts in quake-stricken areas.

Bedding peripherals⇒ Develop and expand sales of new products that accommodate the

shortage of caretakers caused by an aging population with a declining birthrate.

Health-related equipment⇒ Expand sales of health support products in line with the increased

awareness of disease prevention and restoration of health.

Business expansion in line with market expansion of overseas customers⇒ Respond to accelerated aging of populations abroad mainly in advanced

countries.

32

briefing on business results for fy11/3 and management

Documents