Establishing a Regionally Optimized Production Structure

「Against this backdrop, revenue for the interim consolidated accounting period declined 7.7% year on year to ¥154,510 million, reflecting production cuts across the core Japan, North America and China segments, as well as lower revenue from model development, including dies, equipment and prototypes, and foreign exchange movements.」

「As examples of this approach, the Chubu Plant in Gifu Prefecture and the Nansha Plant in Guangdong Province, China, which recently began operations as new plants, have introduced state-of-the-art technologies based on DX (digital transformation). In addition to automating the production lines, the company is working to automate on-site logistics by introducing AGVs (automated guided vehicles) and AGFs (automated guided forklifts) and linking them with an automated warehouse system.」

「Against this backdrop, results for the interim consolidated accounting period were affected by production cuts, particularly in the China segment. However, revenue increased to ¥167,395 million, up 1.3% year on year, due to higher production in the Japan and North America segments, increased revenue from model development, including dies and equipment, and foreign exchange effects.」

「In the consolidated fiscal year under review, model-related capital investment associated with the launch of new models totaled ¥3,586 million, down 75.9% from the previous fiscal year. Meanwhile, basic capital investment totaled ¥8,482 million, down 12.4%, including the introduction of demonstration facilities for the EV-related business and production capacity expansion.」

「During the 9-month period ended December 2023, although production volumes declined in China, global order-based production volumes increased as automobile production recovered in other regions, and the weaker yen also contributed. Sales were ¥259,962 million, up 10.3% year on year.」

「As a result, during the 6-month period ended September 2023, sales were ¥165,237 million, up 6.7% year on year, due to increased order-based production volumes accompanying the recovery in automobile production and foreign-exchange effects, among other factors.」

「Against this backdrop, during the 3-month period ended June 2023, the increase in mass-production sales accompanying the normalization of customers’ production activities substantially exceeded the decline in model-development sales, including sales of dies and equipment. Together with foreign-exchange effects and other factors, this resulted in sales of ¥78,818 million, up 16.8% year on year.」

「During the consolidated fiscal year, model-related investment associated with the launch of new models was ¥14,850 million, up 93.5% year on year. Meanwhile, basic investment, including the installation of demonstration equipment for EV-related businesses and production-capacity expansion, was ¥9,687 million, up 47.9% year on year. As a result, total capital investment was ¥24,537 million, up 72.5% year on year.」

「In addition to steady order-based production volumes for European automakers, the start of production of body parts for Tesla in December and other factors increased mass-production sales, resulting in higher sales year on year.」

「Production at the Slovakia operation reached the planned scale and contributed to sales.」

「Sales: Sales increased due to the limited impact of customers’ semiconductor shortages and increases in mass-production sales and sales of dies and equipment. Operating income: Operating income increased substantially due to higher non-mass-production sales, cost reductions and lower labor costs resulting from a reduction in personnel.」

「In Europe, production for the TOYOTA MOTOR CORPORATION group and BMW group remained firm, increasing mass-production sales. Together with higher sales of dies and equipment and foreign-exchange effects, this resulted in sales of ¥21,778 million, up 23.2% year on year. Operating income was ¥4,277 million, up 54.7% year on year, due to the effect of higher sales and the full-scale operation of the Slovakia facility.」

「Although customers’ production cuts due to semiconductor shortages had an impact, production for BMW remained firm and the ramp-up of new models for TOYOTA MOTOR CORPORATION and other factors increased mass-production sales, resulting in higher sales. In addition to the easing of lockdowns, the recovery in customers’ production increased mass-production sales and sales of dies and equipment, resulting in higher sales. In addition to increased sales of dies and equipment, strong production of new models for TOYOTA MOTOR CORPORATION increased mass-production sales, resulting in higher sales.」

「Operating income increased due to the effect of higher sales resulting from expanded orders and increased production volumes, as well as the effect of fixed-cost reductions and other factors.」

「Sales increased due to the recovery in production, the limited impact of customers’ semiconductor shortages and the ramp-up of BMW’s new iX at the Slovakia operation, among other factors.」

「Sales were ¥11,853 million, down 22.2% year on year. Although the Slovakia operation, which began full-scale operations this fiscal year, increased mass-production and non-mass-production sales, overall mass-production sales declined significantly due to the decrease in production volumes at the UK operation, among other factors.」

「In Europe, production was substantially reduced ahead of a customer’s withdrawal from the UK, while sales to other companies expanded in the UK and Slovakia. Sales increased due to higher sales per unit for new models, increased production volumes, the start-up of the new Slovakia plant and sales of dies, among other factors.」

「Sales were ¥15,237 million, up 8.7% year on year, due to an increase in mass-production sales as production of newly awarded orders expanded, among other factors. Operating income was ¥2,240 million, up 36.9% year on year, due to the effect of higher sales and other factors.」

「Sales were ¥9,813 million, up 50.6% year on year, due to increases in mass-production sales and sales of dies and equipment, among other factors. Operating income was ¥1,447 million, up 553.1% year on year, due to the effect of higher sales and other factors.」

「Sales were ¥5,294 million, up 51.0% year on year, due to increases in mass-production sales and sales of dies and equipment, among other factors. Operating income was ¥1,110 million, up 453.3% year on year, due to the effect of higher sales and other factors.」

「During the 9-month period ended December 2018, sales were ¥188,256 million, up 17.0% year on year, due to increased mass-production sales from higher production in Japan, China and Asia, as well as increased sales of dies and equipment in Japan and Europe, among other factors.」

「Sales were ¥20,462 million, up 11.7% year on year, mainly due to an increase in mass-production sales resulting from higher production in Thailand. Operating income was ¥2,447 million, up 30.8% year on year, due to the effect of higher sales and other factors.」

「Under sales innovation, we have conducted sales activities targeting European luxury automakers, primarily, and received a new order for aluminum parts in Slovakia from a European luxury automaker with which we do business in the UK. To fulfill this order, we established a mass-production base for aluminum bodies in Slovakia, G-TEKT Slovakia, s.r.o., and are preparing for operations to begin in June 2019. At our UK operation, G-TEKT Europe Manufacturing Ltd., we began construction of a fourth plant equipped to process aluminum, with operations scheduled to begin in January 2019.」

「In Europe, an advanced automotive region, we are pursuing initiatives to expand orders for next-generation aluminum body parts. At our UK operation, we will install equipment capable of mass-producing aluminum parts at the new fourth plant and accumulate processing experience and expertise so that the plant can eventually serve as our mother plant for aluminum production. Operations are scheduled to begin in January 2019. In Slovakia, following an order for aluminum parts from a European luxury automaker with which we do business in the UK, we established “G-TEKT Slovakia, s.r.o. (G-TES),” the first full-scale mass-production base for aluminum bodies in Slovakia established by a Japanese automotive-parts manufacturer, and are preparing for its start-up. In China, now the world’s largest automotive market, we opened the “G-TEKT Shanghai Representative Office (GSR)” in Shanghai as a research office primarily responsible for researching local needs and the market. We are also constructing our fifth plant in China to meet increased orders from customers. Operations are scheduled to begin in April 2018.」

「As part of these initiatives, in addition to the previously announced decision to expand the UK plant, we decided to establish our first production base on continental Europe in Slovakia in response to a new order for aluminum parts from a European luxury automaker. While developing mass-production expertise at the UK plant as a future mother plant for aluminum-body production, we will ramp up aluminum-body production in Slovakia. We also decided to construct a second plant for Wuhan Auto Parts Alliance Co., Ltd. in China to meet the customer’s expanded capacity requirements.」

「In response to growing orders in the UK, we are considering expanding the plant to increase capacity and improve intra-regional logistics.」

「To build a production structure capable of securing sales through mass production, we will undertake regionally optimized initiatives suited to local conditions, including reviews of production-line concepts, work methods and production allocation.」

「Operating income was ¥3,142 million, up 13.7% year on year, due to improved earnings from the full-scale operation of the Indonesian subsidiary.」

「We worked to achieve optimization in each region by adapting production-line concepts, work methods, logistics and other initiatives to local conditions.」