Topura Co., Ltd. Business report FY2008

Business Highlights

Financial overview (In million JPY)
FY2008 FY2007 Rate of Change Factors
Sales 27,656 33,759 (18.1) The volume of products the Company sold to its major customers, which are automakers, decreased as a result of them slashing their own Japanese and export production volumes. Production outside Japan, mainly in North America and Europe, significantly declined, which resulted in the Company's sales volume decreasing.
Ordinary income (736) 1,383 - The Company took some measures to cut costs in order to cope with decreased orders. Despite these initiatives, its income declined.
Current net income (795) 563 - Current net income reflects an extraordinary profit of 33 million yen and an extraordinary loss of 341 million yen.

Recent Developments Overseas

The company announced the dissolution of its equity method affiliate Topura SHBG (Shenzhen) Automotive Fasteners Manufacturing Co., Ltd. (THF). THF, formed in 2005, manufactures and sells fasteners and metal components used in automobiles and electronic equipment. The entity is a 41-40-10-9 joint venture between Topura, Shenzhen Aero-Fasteners Mfg Co., Ltd., NHK Spring Co., Ltd. and LOBO SPA. The liquidation process is due to be completed at the end of May 2009. (From a press release on Nov 14 2008)


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 21employees in the entire group who are assigned to work in R&D.

- Total R&D expenses in FY2008 for the entire Group were 238 million yen.

-The Company formed a close partnership and alliance with NHK Spring Co., Ltd., a company which is a largest 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 worked on improving its production efficiency from a design standpoint by reducing and standardizing the items its produces based on making assessments and integrating materials and product specifications in the course of developing new materials.

- 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.

- The Company developed screws suitable for information and telecommunications devices and for digital consumer electronics. It also conducted R&D activities on fastening mechanisms.

- In working to improve the environment, the Company succeeded in developing products and manufacturing process that do not require the use of environmentally hazardous substances. It also worked to meet the needs calling for mass chromium-hexavalent-free processing and non-chrome surface processing, looking for new applications of its products to help manufacturers who are in the pursuit of preventing global warming by reducing exhaust emissions and making their cars lighter. The Company also focused on developing these kinds of technology further.

Licensing-out technology (receiving royalty payments) (as of March 2009)
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
Acument Gloval Technologies The Netherlands Torx-plus -Licensing-out trademark rights
-Granting licenses for manufacturing and sales
-Providing technical information
Jan. 15, 1994 - Dec. 31, 2011

Investment Activities

Capital Investments

The total capital investment the Company made in FY2008 was 671million JPY. The Company invested mainly to build an additional plant building and update and rationalize screw production machinery and equipment.

Plans for construction of new facilities (as of March 2009)
Company/Office Name Location Expected Investment
(millions of yen)
Started Complete
Topura Co., Ltd. Hadano Plant Kanagawa Pref., Japan 127 Apr. 2009 Mar. 2010
Topura Co., Ltd. Tokai Plant Shizuoka Pref., Japan 86 Apr. 2009 Mar. 2010
Topura Co., Ltd. Osaka Plant Osaka, Japan 68 Apr. 2009 Mar. 2010
Alps Screw Co., Ltd.
and other two companies
Nagano Pref., Japan 59 Apr. 2009 Mar. 2010