Press Kogyo Co., Ltd. Business Report FY ended Mar. 2015

Financial Overview

(in millions of JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 Rate of Change (%) Factors
Overall
Sales 197,615 183,618 7.6 -
Operating income 9,821 9,400 4.5 -
Ordinary income 10,794 10,098 6.9 -
Net income 6,356 6,270 1.4 -
Automotive-Related Business
Sales 166,569 157,368 5.8 1)
Operating income 11,763 12,038 (2.3) -


Factors
1) Sales of Automotive Business
-Sales increased year-on-year (y/y) due to higher domestic production of parts for domestic regular-sized trucks and light-duty trucks, which was supported by reconstruction projects and stable growth of capital investments in Japan. Exports of regular-sized trucks from Japan were about the same level as they were during the previous year because higher sales of finished trucks were offset by lower sales of knock-down exports. Exports of light-duty trucks increased year-on-year because a greater number of trucks were exported to the Middle East.

FCV Business

-The Company will break into business for fuel cell vehicles (FCVs) in 2015. The Company has been developing equipment that will be used to supply hydrogen at hydrogen refueling stations, jointly with an energy-related equipment manufacturer. The equipment is slated for commercialization in the fall of 2015 at the earliest. The Company intends to develop a new product other than its mainstay structural components such as axles and frames for large vehicles, and hopes to extend its operations into the business for green cars that have great growth potential. (From an article in the Nikkan Jidosha Shimbun on December 11, 2014)

Recent Development Outside Japan


-Preparations are being made to launch production of frames and axels for 2015-year models.


-In January 2014, production of automotive parts was launched in Indonesia.


-In July 2014 production of axel-tubes was launched in the U.S. for U.S. OEMs. Japanese OEMs placed firm orders for door-reinforcement parts.

Mid-term Management Plan (FY ending March 2015 - FY ending March 2019)

-The targets under the plan are as follows (on a consolidated basis):

FY ended Mar. 31, 2014
(Actual)
FY ending Mar. 31, 2019
(Target)
Sales JPY 183.6 billion JPY 270.0 billion
Operating income margin 5.1% 10% or higher
Equity ratio 40.2% 50% or higher
ROE 11.0% 12% or higher

Outlook for FY ending Mar. 2016

(in millions of JPY)
FY ending Mar. 31, 2016
(Forecast)
FY ended Mar. 31, 2015
(Actual)
Rate of Change
(%)
Sales 199,600 197,615 1.0
Operating income 9,400 9,821 (4.3)
Ordinary income 9,000 10,794 (16.6)
Net income 5,700 6,356 (10.3)


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

R&D Expenditures

(in millions of JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Overall 379 262 263
Automotive-Related Business 299 179 136

R&D Activities

-The Company is focusing on developing its major products such as axles and frames based on a medium- and long-term prospective.

Automotive Components

  • FEM (finite element method) analysis: the Company's plastic manufacturing process simulation can simulate the high-speed deformation processes of materials in the die, which cannot be tested visually. This technology greatly contributes to identifying the cause of accuracy problems, finding out measures to solve the problem, reducing the development lead time, and cutting down on development cost.
  • Structural analysis in the design stage: utilizing the FEM analysis method and the Company's original database helps exploring ways to reduce the product weight.

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Automotive-Related Business 11,628 7,395 6,693
Construction Machinery-Related Business 1,181 5,636 1,674
Others 14 70 1
Overall 12,824 13,101 8,368

-The Company focused its investment activities on building up its production operations, promoting labor savings, enhancing production efficiency, and improving the reliability of its products in order to respond to new program business for frames, axles, suspensions, construction machinery cabs and panels, which are its main products.

Planned Capital Investments (Automotive components)

(As of Mar. 31, 2015)
Name Purpose Planned amount
of investment
(in millions of JPY)
Start
month
Planned completion
Fujisawa Plant
(Fujisawa City, Kanagawa Pref., Japan)
Production equipment for axles 147 Apr. 2014 Jun. 2015
Thai Summit PKK Co., Ltd.
(Chonburi, Thailand)
Production equipment for frames 452 Mar. 2014 Jul. 2015
PK U.S.A., Inc.
(Indiana, U.S.)
Production equipment for panels 625 Mar. 2014 Jul. 2015

Data

Business segment Mar. 31, 2015 Mar. 31, 2014 Mar. 31, 2013
Automotive-Related Business 5,048 4,947 4,919
Construction Machinery-Related Business 907 989 822
Others 56 26 26
Corporate (In common) 211 209 199
Total 6,222 6,171 5,966

Sales by Segment

(in millions of JPY)
  FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Automotive-Related Business 166,569 157,368 145,543
Construction Machinery-Related Business 28,558 24,730 27,731
Others 2,488 1,519 1,846
Adjusted amount - - -
Total 197,615 183,618 175,122

 

Sales by Geographic Area

(in millions of JPY)
  FY ended Mar. 31, 2015 FY ended Mar. 31, 2014 FY ended Mar. 31, 2013
Japan 120,710 116,792 114,334
Asia 51,286 46,570 44,888
Others 25,618 20,255 15,899
Total 197,615 183,618 175,122

Consolidated

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
FY ended Mar. 31, 2011 FY ended Mar. 31, 2012 FY ended Mar. 31, 2013 FY ended Mar. 31, 2014 FY ended Mar. 31, 2015
Sales (million yen) 147,117 168,220 175,122 183,618 197,615
Income from ordinary business activities (million yen) 8,680 10,941 9,664 10,098 10,794
Net income (million yen) 6,057 6,314 5,588 6,270 6,356
Comprehensive income (million yen) 7,033 8,710 7,789 9,853 11,606
Net assets (million yen) 45,760 51,952 58,498 65,293 74,536
Total assets (million yen) 109,913 125,220 128,935 150,833 166,941
Book value per share (yen) 371.11 437.54 493.40 557.98 640.98
EPS (yen) 55.74 58.12 51.43 57.71 58.51
Diluted EPS (yen) - - - - -
Net asset ratio (%) 36.7 38.0 41.6 40.2 41.7
ROE (%) 16.1 14.4 11.0 11.0 9.8
PER 6.3 9.6 9.5 6.5 8.3
Cash flow from operating activity (million yen) 16,981 14,646 10,291 13,906 9,657
Cash flow from investment activity (million yen) (9,863) (11,907) (10,545) (18,599) (10,899)
Cash flow from financial activity (million yen) (5,627) (2,741) (4,041) 3,968 3,967
Balance at the term-end of cash and cash equivalents (million yen) 10,287 15,371 11,840 12,153 15,495
Number of employees 4,997 5,541 5,966 6,171 6,222

 

Non Consolidated

FY ended Mar. 31, 2011 FY ended Mar. 31, 2012 FY ended Mar. 31, 2013 FY ended Mar. 31, 2014 FY ended Mar. 31, 2015
Sales (million yen) 103,709 124,495 111,572 119,897 124,569
Income from ordinary business activities (million yen)  5,414 10,002 8,848 10,274 11,266
Net income (million yen)  4,979 6,254 5,810 6,974 7,112
Paid-in Capital (million yen)  8,070  8,070 8,070 8,070 8,070
Number of stock outstanding (1000)  114,007 114,007 114,007 114,007 114,007
Net assets (million yen)  36,831 44,052 49,116 55,268 62,628
Total assets (million yen)  84,651 97,654 95,913 108,495 112,477
Book value per share (yen)  338.94  405.43 452.07 508.74 576.54
Dividend per share (yen)  - 8.00 9.00 10.00 11.00
EPS (yen)  45.82  57.56 53.48 64.20 65.47
Diluted EPS (yen)  - - - - -
Net asset ratio (%)  43.5  45.1 51.2 50.9 55.7
ROE (%)  14.5 15.5 12.5 13.4 12.1
PER  7.7  9.7 9.1 5.8 7.4
Payout ratio (%)  8.7 13.9 16.8 15.6 16.8
Number of employees  1,927 2,115 1,970 1,953 1,930