Topy Industries, Ltd. Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in million JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of
change (%)
Sales 226,912 240,534 (5.7) -
Operating income 6,990 10,554 (33.8) -
Ordinary income 6,234 7,304 (14.6) -
Net income 3,409 3,918 (13.0) -
Automotive/Industrial Component Business
Sales 145,398 154,031 (5.6) -Sales of wheels for trucks and passenger cars increased, while demand for suspension parts used on construction equipment and for super-size wheels used on mining equipment dropped.
Operating income 9,966 10,392 (4.1) -

Joint Ventures

-The Company announced that it would establish a joint-venture production and sales subsidiary/factory in Indonesia with a local company Pakoakuina. The new joint venture, which will be set up in January 2013, will produce and sell wheels for trucks and buses. Demand for trucks and buses is growing in the ASEAN Region, which includes Indonesia, due to rapid improvements in the burgeoning infrastructure. As a result, Japanese OEMs are increasing their production capacities. The start of operations at the new joint venture will strengthen local supply capabilities to OEMs and lead to further growth in the Company's business. (From an article in the Nikkan Jidosha Shimbun on Dec. 19, 2012)

Outlook for FY ending Mar. 31, 2014

(in million JPY)
  FY ending Mar. 31, 2014
FY ended Mar. 31, 2013
(Actual Results)
Rate of Change
Sales 233,000 226,912 2.7
Operating income 7,400 6,990 5.9
Ordinary income 6,600 6,234 5.9
Net income 3,700 3,409 8.5

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

Mid-term Management Plan

-The Company announced its mid-term management plan "Growth & Change 2015" that will cover the fiscal years between 2012 and 2015. The Plan calls for achieving an operating revenue of 28.15 billion yen, an operating profit of 18.0 billion yen, and a profit margin of 6.4% by the end of the 2015 fiscal year (March 2016). In line with this Plan, the Company will invest 67.3 billion yen, which is an 80% increase over the amount invested in during its previous mid-term plan. The Company aims to expand its operations outside Japan and fortify its fundamental structure in Japan driving product creation. Out of the total, the Automotive/Industrial Machinery Component Business producing automotive wheels and other products will invest 62% outside Japan.
  • Automotive/industrial machinery Components: Forecast for operating revenue by the end of the 2015 fiscal year (March 2016) is 176.8 billion yen (a 14.7% increase over fiscal year 2011 figures), with more than 40% generated outside Japan
  • Steel wheels for passenger-cars: Forecast for operating revenue by the end of the 2015 fiscal year (March 2016) is 20% more than it was at the end of the 2011 fiscal year.
  • Steel wheels for mining equipment: Plans are to increase the production capacity of steel wheels for mining equipment by 30%.


R&D Expenditure

(in million JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 1,212 1,271 1,245
-Automotive & Industrial Machinery Component Business 528 541 557

R&D Facility

-The Company conducts its R&D activities at Research and Development center in the premise of the Toyohashi Factory in Aichi Pref., Japan.

R&D Activities

Automotive & Industrial Machinery Component Business
-The Company conducted research on solutions that reduce weight, improve quality, cut costs, and reduce development lead time. It also did research and development on new products.

-The Company achieved favorable results for its mainstay products, namely automotive steel and aluminum wheels, in terms of improving the accuracy of technology to conduct analysis and evaluations, developing and mass-producing new products, cutting costs, and improving the quality of existing products.

Investment Activities

Capital Expenditure

(in million JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Overall 20,477 8,982 7,170
-Automotive & Industrial Machinery Component Business 10,951 5,893 4,559

Planned Capital Investment

(As of Mar. 31, 2013)
Name Location Activities/Products Planned investment amount (in million JPY) Starting date Planned completion Capacity increase after completion
PT. Topy Palingda Manufacturing Indonesia West Java,
Manufacturing wheels for truck and bus 5,500 Apr. 2013 Mar. 2014 Approximately 70% increase in production capacity of wheels for trucks and buses