Topura Co., Ltd. Business report FY2006

Business Highlights

Financial overview

In million JPY FY2006 FY2005 Rate of Change Factors
Sales 29,361 27,546 6.6%

- Sales increased favorably due to the robust auto market.
- Sales also increased due to the Company developing new markets and business fields

Ordinary income 541 316 70.9% -Ordinary income increased due to increased revenue generated by greater sales volume; and the Company's bold internal rationalization activities. However, Income was partially offset by sharp rises in the prices of materials and resources.
Current net income 71 86 (16.8%)

-The Company reported an extraordinary profit of 12 million JPY and an extraordinary loss of 325 million JPY.

Challenges for FY2007
Though there are uncertain factors such as measures to deal with eliminating the use of chromium hexavalent and material price hikes, the Company will develop active management strategies on the following: changing its earnings structure; constructing a global manufacturing structure based on four key areas: Japan, the USA, China and Europe by launching mass-production at its Chinese joint venture; and increasing sales volume of high-strength and highly functional bolts.


R&D Structure

-The Company developed products and researched both fundamental processing and evaluation technology at its development headquarters, the Design and Development Division). The Company worked on production engineering and manufacturing technology at its technology headquarters, the Production Engineering Division; and production engineering divisions at its subsidiaries.
- There are 19 employees in the entire group who are assigned to work in R&D. Total R&D expenses in FY2006 for the entire group were 207 million yen.

-The Company formed a close partnership and alliance with NHK Spring Co., Ltd., a company which is a large shareholder of Topura. Together, their efforts have been very effective in conducting R&D activities on cutting-edge technology.

R&D activities
- In order to achieve the best structural design for fastening products, the Company is jointly developing smaller and lighter fasteners by coming up with proposals on bolts that have greater strength and rigidity, and are more anti-corrosive. The Company is also working on proposals for tapping screws to be used on high-tensile steel plants. In doing so, the Company is researching basic technology to develop applications for new materials, design screws, and develop processing technology; in addition to developing technology that improves the reliability of evaluations.

- The Company developed products which are designed to reduce total costs through simplifying the production processes used for fastening parts, streamlining operations, and adding functions that prevent assembly errors. This will lead to creating screws with improved fastening qualities and more functionality.

- Based on the Company's underlying commitment to protect the environment, it succeeded in establishing manufacturing processes and developing products that do not contain environmentally controlled substances. In particular, the Company focused on mass-processing techniques and further developing technology on hexavalent chromium-free surface treatment and non-chrome surface treatment.

Technology imports with royalty payment (as of March 2007)

Partner Country Commodity Contract Details Term
CONTI Fasteners AG Switzerland Taptite -Setting right to use trademark
-Granting manufacturing or selling license
-Provision of technical information
Sep. 1, 2006 - Aug. 31, 2009
Comcar Division of Textron Inc. U.S.A. Torx-plus -Setting right to use trademark
-Granting manufacturing or selling license
-Provision of technical information
Jan. 15, 1994 - Dec. 31, 2011

Investment Activities

The total capital investment the Company made in FY2006 was 368 million JPY. Investments were made especially to update and to rationalize its screw manufacturing facilities.

Plans for construction of new facilities (as of March 2007)

Company/Office Name Location Expected Investment
(millions of yen)
Started Complete
Topura Co., Ltd. Hadano Plant Kanagawa Pref., Japan 764 Apr. 2007 Mar. 2008
Topura Co., Ltd. Tokai Plant Shizuoka Pref., Japan 905 Apr. 2007 Mar. 2008
Topura Co., Ltd. Osaka Plant Osaka, Japan 101 Apr. 2007 Mar. 2008
Alps Screw Co., Ltd.
and other two companies
Nagano Pref., Japan 307 Apr. 2007 Mar. 2008