TPR Co., Ltd. Business Report FY ended Mar. 2017

Financial Overview

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of Change (%) Factors
Sales 175,398 174,628 0.4 -
Operating income 20,514 21,334 (3.8) -
Ordinary income 23,313 24,134 (3.4) -
Net income attributable to owners of the parent 12,281 11,810 4.0 -
Sales 42,076 42,909 (1.9) -
Operating income 5,663 6,919 (18.2) -Operating income was lower, impacted by the effect of negative currency translation due to the strong yen.
Sales 32,580 32,191 1.2 -Sales were higher, thanks to robust new-vehicle sales in China driven by tax incentives for compact cars.
Operating income 10,834 10,031 8.0 -Production volumes increased in China.
North America
Sales 15,008 14,670 2.3 -Sales increased due to the strong US economy.
Operating income 2,082 1,609 29.4 -
Other (*1)
Sales 2,245 2,439 (8.0) -Sales were lower, impacted by the effect of negative currency translation on sales generated in Europe.
Operating income 517 538 (3.9) -
Sales 83,487 82,416 1.3 -Sales were higher due to the positive effect from new production plants coming online.
Operating income 1,581 2,564 (38.3) -Operating income was lower, impacted by higher costs incurred to respond to new model launches.

*1:Includes business activities by the Company’s European and South American local corporations.


-The Company has received an order for its newly-developed aluminum alloy-made brake drum for use in electric vehicles (EVs) and will start supplying components in 2018. The new brake drum is lightweight and at the same time ensures high braking performance equivalent to cast-iron brake drums. A vehicle equipped with the aluminum alloy brake drums in its four wheels is about 5 kg lighter than the same vehicle fitted with cast-iron brake drums. The Company is also developing an aluminum alloy brake drum for European and U.S. OEMs and plans to put it to practical use in 2020. Drum brakes are mostly adopted for low-priced models like compact vehicles with engine displacements of around 1300 cc and mini vehicles. The Company will promote the new brake drum as a component that combines high performance with light weight in an effort to receive more orders. (From an article in the Nikkan Jidosha Shimbun on February 24, 2017)

Outlook for FY ending Mar. 31, 2018

(in million JPY)
FY ending Mar. 31, 2018
FY ended Mar. 31, 2017
(Actual Results)
Rate of Change
Sales 178,200 175,398 1.6
Operating income 22,000 20,514 7.2
Ordinary income 24,700 23,313 5.9
Net income attributable to owners of the parent 12,500 12,281 1.8

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

Mid-term Management Plan

-In 2015, the Company announced its mid-term management plan that starts from the fiscal year ending in March 2016 and ends in the fiscal year ending in March 2018. Sales targets are provided below.

  • Consolidated sales: JPY 193,300 million (TPR's amount: JPY 105,000 million; Faltec's amount: JPY 88,300 million)
  • Operating income: JPY 26,000 million (TPR's amount: JPY 20,400 million: Faltec's amount: JPY 5,600 million)

-The fiscal year that ended in March 2017 was the mid-term year for the mid-term management plan implemented under the slogan Innovation & Expansion. Taking advantage of global synergies, the Company is striving to further increase its sales as an innovative and globally diversified company manufacturing high-quality products.

Long-term Targets

-The Company is aiming to achieve the following targets under T&F GOAL2220, in collaboration with Faltec, which was listed on the Tokyo Stock Exchange in March 2013.

  • Consolidated sales: JPY 220,000 million
  • Net profit of parent company: JPY 20,000 million

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 5,335 4,736 3,858
-TPR Group (excluding Faltec) 2,770 2,568 1,881
-Faltec Group 2,564 2,167 1,977

Major R&D Facilities

-R&D activities are conducted at the Technical Centers located within the Nagano Plant and in the Okaya-City, Nagano Pref. Japan.

R&D Activities

-The Company worked on developing new products from a variety of aspects. These included lower friction, heat control, lighter weight, cleaner exhaust gas emissions, and alternate fuels (bio-fuels, CNG).

-The Company, in working to make products that have even greater levels of precision, developed new production methods that automate inline measuring, radically reduce costs, and minimize energy used in production operations.

-The Company is migrating its new technologies to business operations outside Japan, working to achieve the world’s highest level of identical quality by partnering with companies outside Japan, and conducting PR activities promoting new products and technology to customers outside Japan.

-In order to quickly respond to the needs arising in line with the growth of electric vehicles, the Company is strengthening its capabilities in non-powertrain products. As a result, the Company focused its energy in introducing new technology in seals that mainly include rubber and composite products made lighter in weight by the use of aluminum and plastics. In this regards, the Company is building its R&D framework to create functional, cost-competitive products ahead of its customers, while exploring new business sectors.

R&D Achievements

1) Piston rings
-Development of super low friction rings and low LOC (lubricating oil consumption) rings which are designed to improve fuel economy.
-Development of highly-functional oil rings, which are designed to improve reliability.
-Creation of a production line that is designed to radically reduce the production costs of piston rings.

2) Cylinder liners
-Commercialization of liners for small engines. These liners are smaller in diameter, have super thin walls, are lightweight, and have superior heat-conducting properties, enabling them to respond to the needs for greater output and improved fuel consumption and reliability.
-Commercialization of low friction heat control liners.
-Commercialization of cylinder liners which have high mechanical strength.

3) Valve seats, valve guides
-Commercialization of valve seat materials which are capable of responding to the need for alternative fuels. These materials are highly resistant to abrasion.
-Development of a new production line with innovative features that remarkably lower costs, enabling the production of low-priced products.
-Commercialization of sintered valve guides.

1) Aluminum-based products
-Commercialized an aluminum wheel for 4 wheel vehicles for aftermarket by creating a new casting method and installing equipment.
-Commercialized an aluminum brake drum by applying a centrifugally casted spiny shaped FC material.

2) Sintered mechanical parts
-Create innovative cost-cutting methods to develop sintered mechanical parts for small sized seal-ring for turbochargers, to respond to low-cost needs.

3) Plastic and rubber products
-Commercialized plastic seal-rings for transmissions.
-Created greater precision electromagnetic valve spool rubber seals.

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Japan 3,986 3,891 3,357
Asia 4,585 3,997 2,202
North America 378 623 582
Others 144 1,159 11
Faltec Group 4,446 4,593 3,936
Total 13,541 14,266 10,089

-In the fiscal year that ended in March 2017, the Company spent JPY 13,541 million on capital investments to boost production facilities and continue to expand and organize its production plants overseas.

Planned Capital Investments (Automobile related product business)

(As of Mar. 31, 2017)
Name of the company
Location Type of facility and purpose Planned investment
(million JPY)
Planned construction start date Planned completion Increased capacity upon completion
The Company's
Nagano factory
Nagano Pref.,
Facilities for producing piston rings, conducting R&D activities, etc. 4,000 Apr.
No impact on production capacity
Faltec America Georgia, USA Facilities for manufacturing auto parts 1,500 Apr.
Increase capacity by 100%
TPR Industry Co., Ltd. Yamagata Pref.,
Facilities for producing cylinder liners and conducting R&D activities 1,100 Apr.
No impact on production capacity
Anqing TP Goetze Liner Co.,Ltd.

Anhui Province,

Facilities for producing cylinder liners 1,000 Jan.
15% increase
Anqing TP Powder Metallurgy Co., Ltd. (ATP)

Anhui Province,

Facilities for manufacturing sintered parts 800 Jan.
No impact on production capacity