TDF Corporation 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 21,893 23,083 (5.1) -
Operating income 530 487 8.8 -Income increased year-on-year due to exceptional cost-cutting initiatives the Company implemented, in spite of setbacks to performance caused by rising prices of natural gas and other goods due to the fluctuating economy.
Ordinary income 677 523 29.4
Net income 512 421 21.6

Consolidating Operations with I Metal Technology Co., Ltd. and Jidosha Buhin Kogyo Co., Ltd.

-The Company, I Metal Technology Co., Ltd. and Jidosha Buhin Kogyo Co., Ltd. announced that they (the three companies) reached an agreement to consolidate their operations through establishing a joint holding company by jointly transferring their equity shares.
-The new joint holding company, which is named IJT Technology Holdings Co., Ltd., is headquartered in Minato-ku, Tokyo and capitalized at 5.5 billion yen. Isuzu Motors will own 41% of the outstanding stock shares, making the holding company its subsidiary.
-The three companies will become wholly owned subsidiaries of IJT Technology Holdings.
-The three companies did not foresee much prospect for demand in Japan over the long term. Plus, with the emergence of strong OEMs in developing countries and with the extremely tough price competition in the market, the three companies decided that it would be better to consolidate each of their own management resources and technical expertise into one entity, in order to remain viable and develop their businesses while mutually cooperating and supplying to each other.

New Company

-The Company said it will set up a joint venture company in Indonesia with Jidosha Buhin Kogyo Co., Ltd., a forging company. Given a growing automobile market in the ASEAN region, the two companies will be jointly engaged in manufacture and sale of forged materials, machining of forging and stamping parts, assembly and sale of automobile parts in the country. The new joint venture will construct a local supply structure for Japanese automakers operating in Indonesia, where there is a strong demand for commercial vehicles and their production is on the increase. The new company called "PT. TJForge Indonesia" will be established at the Karawang Industrial Estate in West Java in December. (From an article in the Nikkan Jidosha Shimbun on Oct. 12, 2012)

Investment Activities

Capital Investment

(in millions of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 1,495 629  801
-The Company invested in establishment, maintenance and repair of forging equipment.

New Facilities (automotive parts business)

(As of Mar. 31, 2013)
Name Location Type of facility Planned total investment
(in millions of JPY)
Construction start month Planned completion month
PT. TJForge Indonesia  West Java, Indonesia Facility to manufacture forged parts, etc. 9,000 Mar. 2012 Undecided