Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Sales	59,278	53,791	10.2	1)
Operating Income	5,401	3,065	76.2	-
Ordinary Profit	5,572	3,220	73.0	-
Net Income	3,144	2,134	47.3	-

Factors
1)
<Japan>
Sales of body structural parts increased year-on-year, supported by rising production volumes at its major customers especially in the first half of the year. Sales also climbed in the area of dies and prototypes.  

<North America>
Despite the negative effects of the exchange rate fluctuations, sales of body structural parts increased, thanks to growing production volumes at its major customers.

<Asia>
Sales of body structural parts increased, thanks to growing production volumes at its major customers’ plants in China.

<Middle and South America>
Sales of body structural parts decreased in Brazil. Sales of dies also dropped.

 

Merger with Takaoka Kinzoku Kogyo

-Kikuchi Co., Ltd. announced that it will change its corporate name to G-Tekt Corporation after the planned merger with Takao Kinzoku Kogyo Co., Ltd. (Koka City, Shiga Prefecture) in April. Based on the consolidation, Kikuchi will add production and sales of automated machineries and transportation equipment, which is Takao Kinzoku’s domain, to its scope of business. The two companies agreed to merge in May last year based on the decision that strengthening of its profit structure through management integration should bring benefits in competing as a global player in the automotive body stamping business. (From an article in the Nikkan Jidosha Shimbun on February 2, 2011)

R&D Expenditure

(in millions of JPY)

	FY 2010	FY 2009	FY 2008
Overall	199	264	350

R&D Structure

- Following the merger with Takao Kinzoku Kogyo, the Company reorganized its business structure. It now develops components for new vehicles models at the Product Development Department of the Sales Division, while engineering new production technology at its Development Department of the Technology Division.

-Eighteen engineers work at the Product Development Section as of March 2011.

R&D Activities

-Major R&D activities and achievements FY2010
1.Study to expand application to mash seam welding body parts
2.Study to expand application to body parts made of high tensile steel materials.
3.Study to expand injection simulation technology.
4.Study to reduce weight and increase strength of CVT parts.
5.Study to use information technology for making metal dies.
6.Study to apply technology of high-frequency hardening to steel plate materials.

Technology Contract Offered by the Company

(As of Mar. 31, 2011)

Partner	Country	Details	Period
Jefferson Industries Corporation	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2003.10.01-2006.09.30 automatic extension every year thereafter
Jefferson Elora Corporation	Canada	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1997.03.31-2002.03.30 automatic extension every 5 years thereafter
Jefferson Southern Corporation	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2001.05.31-2006.05.30 automatic extension every year thereafter
Austin Tri-Hawk Automotive Inc.	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1998.01.25-2001.01.24 automatic extension every year thereafter
Kikuchi Do Brasil Ltda	Brazil	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1997.05.30-2002.05.29 automatic extension every year thereafter
Auto Parts Alliance (China) Ltd.	China	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2006.10.26-2011.10.25
Wuhan Auto Parts Alliance Co., Ltd.	China	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2005.07.01-2011.07.01

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	5,813	8,513	11,684

 Capital Investments in FY2010
- The Company mainly invested in purchasing production equipment to manufacture components for new vehicle models at its Saitama Plant in Japan. It also invested in installing additional manufacturing equipment in China to increase its production capacity in Asia.  

 

Recent Investment in Japan

- The Company launched its project to transfer 2500tTRF stamping equipment from its Hamura Plant to Saitama Plant.
- The Company completed production lines for manufacturing components for the variant of the Honda Fit to be produced in Suzuka.
- The Company closed down its Akishima Plant and made the site vacant. It sold off its die storehouse in Hamura.  

Recent Investment Outside Japan

<North America>
 J Group
- Completed production lines to mass-produce components for the Honda Civic

<Latin America>
 G-KTB
- Expanded its stamping factory
- Introduced a 1600tTRF machine
- Started preparation work for the Honda Civic program

<China>
APAC
- Started producing parts for the Honda Crosstour
- Started producing parts for the Nissan Vanette

WAPAC
- Acquired a piece of land and expanded its existing plant
- Completed production lines to manufacture small components 

CKS
- Won a new program from Toyo Tire & Rubber and preparing for mass production
- Working to win contracts from Hino Motors

Planned Capital Investments

(As of Mar. 31, 2011)

Plant	City	Equipment to be installed	Estimated amount of investment (in millions of yen	From	To	Purpose of investments
Saitama Plant	Saitama Pref., Japan	Equipment for manufacturing auto parts (stamping and welding equipment)	567	Jan. 2010	Dec. 2012	Increasing production capacity
		Equipment for manufacturing auto parts (dies, jigs and tools)	1,216	-	-	Dealing with model changes
Tochigi Plant	Tochigi Pref., Japan	New facility	574	Aug. 2011	Dec. 2011	Increasing production capacity
		Equipment for manufacturing auto parts (stamping and welding equipment)	290	Jan. 2010	Mar. 2012	Increasing production capacity
		Equipment for manufacturing auto parts (stamping and welding equipment)	258	-	-	Dealing with model changes
Jefferson Industries Corporation	Ohio, USA	New facility	128	Jan. 2011	Jul. 2011	Increasing production capacity
		Equipment for manufacturing auto parts (stamping and welding equipment)	160	Mar. 2011	Oct. 2011	Increasing production capacity
		Equipment for manufacturing auto parts (dies, jigs and tools)	376	-	-	Dealing with model changes
Jefferson Elora Corporation	Ontario, Canada	Equipment for manufacturing auto parts (stamping and welding equipment)	362	Mar. 2011	Jun. 2011	Increasing production capacity
		Equipment for manufacturing auto parts (dies, jigs and tools)	712	-	-	Dealing with model changes
Auto Parts Alliance (China) Ltd.	Guangzhou, Guangdong Province, China.	Equipment for manufacturing auto parts (stamping and welding equipment)	1,749	Sep. 2011	Dec. 2011	Increasing production capacity
		Equipment for manufacturing auto parts (dies, jigs and tools)	964	-	-	Dealing with model changes
G-TEKT (Thailand) Co., Ltd.	Ayutthaya, Thailand	Equipment for manufacturing auto parts (stamping and welding equipment)	448	Jan. 2011	Aug. 2011	Increasing production capacity
		Equipment for manufacturing auto parts (dies, jigs and tools)	1,257	-	-	Dealing with model changes
G-KT ｄo Brasil Ltda.	Sao paolo, Brasil	New facility	340	Dec. 2010	May 2011	Increasing production capacity
		Equipment for manufacturing auto parts (stamping and welding equipment)	544	Dec. 2010	Aug. 2011	Increasing production capacity