TPR Co., Ltd. Business Report FY ended Mar. 2018

Financial Overview

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 Rate of Change (%) Factors
Sales 187,398 175,398 6.8 -Increased due to greater automobile production volume in Japan, Asia, and elsewhere.
Operating income 20,775 20,514 1.3

-Even though there was an issue with inappropriate accounting practices at Faltec, the Company recorded higher income due to increased production levels that resulted from greater sales and continued cost-cutting initiatives, while working on improving fuel economy.

Ordinary income 24,023 23,313 3.0 -
Net income attributable to owners of the parent 12,154 12,281 (1.0) -
Sales 45,706 42,076 8.6 -Increased due to higher unit-production of automobiles in Japan.
Operating income 5,284 5,663 (6.7) -Sales were lower due to huge cost increases for raw materials.
Sales 35,907 32,580 10.2 -Increased due to higher unit-production of automobiles in China and India.
Operating income 11,614 10,834 7.2 -
North America
Sales 15,444 15,008 2.9 -Increased due to -greater product orders received in the USA and favorable currency translation.
Operating income 1,804 2,082 (13.4) -Decreased due to huge cost increases for raw materials and unfavorable changes to product lineup.
Other (*1)
Sales 2,847 2,245 26.8 -Increased due to an economic recovery in the European market and greater product orders received in South America.
Operating income 898 517 73.7 -
Sales 87,493 83,487 4.8 -Increased due to greater volumes of automobile unit-production in Japan, and due to greater number of product orders for new products such as millimeter-wave radar and electrical equipment.
Operating income 925 1,581 (41.5) -

*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. TPR 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)

Product Development

Electric double layer capacitors
-The Company will commercialize a device for small electric vehicles (EVs) using electric double layer capacitors by 2020. The cell will be improved to ensure performance necessary for driving the EV motor, and multiple capacitor cells will be connected in series as a unit. It is expected that there will be greater demand for high-performance battery devices in the future with the acceleration of vehicle electrification. The Company will commercialize an electric double layer capacitor that has a long life and is capable of quick charging/discharging for EVs and develop it as a new business pillar, aiming to expand its business operations. (From an article in the Nikkan Jidosha Shimbun on August 29, 2017)

Outlook for FY ending Mar. 31, 2019

(in million JPY)
FY ending Mar. 31, 2019
FY ended Mar. 31, 2018
(Actual Results)
Rate of Change
Sales 193,700 187,398 3.4
Operating income 20,600 20,775 (0.8)
Ordinary income 23,700 24,023 (1.3)
Net income attributable to owners of the parent 12,300 12,154 1.2

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

R&D Expenditure

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 5,566 5,335 4,736
-TPR Group (excluding Faltec) 3,192 2,770 2,568
-Faltec Group 2,374 2,564 2,167

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.
-Developed a low-friction, inner circumferential shape that improves reliability.

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.
-Commercialized a highly thermal guide.

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

2) 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.

3) 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.

Capital Expenditure

(in million JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Japan 4,103 3,986 3,891
Asia 2,057 4,585 3,997
North America 559 378 623
Others 23 144 1,159
Faltec Group 6,330 4,446 4,593
Total 13,074 13,541 14,266

Investments in Japan

-The Company will increase investments in its manufacturing and development facilities in Japan, with the aim of cost reduction and efficient development of competitive products. The company will introduce new equipment lines for the surface treatment of piston rings and other metal parts, which will reduce manufacturing costs and enhance processing accuracy. Total investment will amount to approximately JPY 4.5 billion. Powertrain parts evaluation equipment will be introduced to the company's Nagano Plant in Okaya City, Nagano Prefecture, and bench test equipment for internal combustion engines will be upgraded and consolidated into the Gifu Plant in Kani City, Gifu Prefecture. TPR aims to solidify its manufacturing foundation by boosting investments in its domestic facilities. (From an article in the Nikkan Jidosha Shimbun on September 13, 2017)

Planned Capital Investments (Automobile related product business)

(As of Mar. 31, 2018)
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 Co., Ltd. Kanagawa Pref.,
R&D activities and facilities for manufacturing auto parts 2,500 Nov.
Increase capacity by 40%
Georgia, USA Facilities for manufacturing auto parts 1,200 Apr.
Increase capacity by 100%
TPR Industry Co., Ltd. Yamagata Pref.,
Facilities for producing cylinder liners and conducting R&D activities 1,200 Apr.
No impact on production capacity
Anqing TP Goetze Liner Co.,Ltd.

Anhui Province,

Facilities for producing cylinder liners 1,300 Jan.
6% increase
Anqing TP Powder Metallurgy Co., Ltd. (ATP)

Anhui Province,

Facilities for manufacturing sintered parts 1,000 Jan.
2% increase