Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Overall
Sales	80,689	71,398	13.0	-
Operating income	5,501	4,629	18.8	-
Ordinary income	5,586	4,874	14.6	-
Current net income	936	2,151	(56.5)	-
Stamped products
Sales	46,775	40,259	(16.2)	-Even though business in Japan was negatively affected by the Great East Japan Earthquake, performance for the entire year remained strong, thanks to the tremendous product demand in emerging countries. -Performance improved year-on-year due to the impressive recovery in automotive production volume in North America.
Operating income	4,095	3,463	18.3	-Increased sales in North America contributed to the rise in operating income year-on-year, even though the Company was burdened with high depreciation expenses for dies used in line with the launch of new models in Japan.

 

Performance Forecast

(in millions of JPY)

	FY2011 Forecast	FY2010 Result	Rate of change()
Sales	83,000	80,689	2.9
Operating income	8,000	5,501	45.4
Ordinary income	8,500	5,586	52.2
Net income	4,600	936	391.5

12th Mid-term Plan

Target Figures

(in millions of JPY)

	FY2013 (Final Year)	FY2010 (Actual)	Increase/Decrease (%)
Sales	95,000	80,689	17.7
Business Operating income	7,800	5,501	41.8
Ordinary income	8,200	5,586	46.8
Net income	4,900	936	423.5

 Stamped Products Business Strategies
1. Ensuring a smooth launch of operations in China and Thailand.
2. Expanding the scope of technology; developing new markets
3. Strengthening production operations in and outside Japan
  ① Establishing Topre Saitama (launched operations in 2009)
  ② Enhancing facilities and equipment at Topre America (2009)
  ③ Constructing plant in Foshan, Guangdong, China (2010)
     (responding to the expansion taking place in the world's number one automotive market)
  ④ Establishing Topre (Thailand) Co., Ltd. as a sales company (2010)
  ⑤ Responding to the expansion in the automotive markets in developing countries
    (conducting market surveys)

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	1,020	909	1,038

 

R&D Structure

-R&D Headquarters: The Company is developing  and commercializing new products which make use of its core technologies.
-The Divisions: All of the divisions are developing new products and technologies, with the idea of creating new features.

 

R&D Achievements

Stamped Products Business
- In order to respond to the dramatically intensifying needs for stronger products, in line with the improvements in requirements in North America calling for stronger vehicle-bodies in collisions, the Company reached the final stage of R&D activities for launching commercial production of 1180MPa, a high tensile steel chassis framework, which is the world's strongest cold-forge product.  
-In order to improve the competitive strength of its products, the Company is continuing its activities in application R&D, working on hot-forging methods already being used in commercial production.
-The Company is developing new battery storage cases that are lighter in weight and lower in cost, and which are purposely designed for hybrids and electric vehicles, for which the market is expanding at a dynamic pace.

Technical Alliances Outside Japan

(As of Mar. 31, 2011)

Company	Country	Products	Associates	Contract Period
Sunrise Machinery Co., Ltd.	China	Automotive stamped products and dies	License providing technological  information and know how	From August 31, 2007 until August 30, 2012 (After that, the contract will be automatically extended every year.)

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	4,021	10,983	6,854

 

Stamped Products Business
-The Company made a capital investment of 3,471 million yen during FY2010.
-This includes a 744 million yen investment mainly in dies for stamping automotive parts.
-This also includes 2,686 million yen mainly invested in facilities to produce stamped automotive parts at Topre Kyusyu Co., Ltd.; Topre America Corporation.; and Topre(Foshan) Autoparts Corporation.

-The Company is set to start production of stamping parts in China by using high tensile steel with capacity to withstand 1 giga pascal level pressure. The Company will proceed with material development in collaboration with a local blast furnace steelmaker to make stamping parts by using high tensile steel in China, as in Japan and the North America. Perhaps it will be the first in China to manufacture automotive stamping parts of high tensile steel of 1 giga pascal level. The project is an attempt in response to growing needs for local production of auto parts of global models by enabling local production of high tensile steel that has hitherto been considered impossible. The Company is now undergoing material development in partnership with Baosteel Group, a major Chinese steelmaker, so that volume production of stamping parts will start in about two years. The Company's Chinese plant will be about two times larger than its Saitama Plant, one of its major domestic production facilities, and it is said its original production plan has already been filled by orders from several major Japanese automakers. (From an article in the Nikkan Jidosha Shimbun on February 15, 2011)

New Facility (Stamped-products business)

Name	Type of facility	Planned total investment (in million JPY)	Start	End	Increased capacity upon completion
Sagamihara Office	Facility for molds used in making stamped, automotive parts	634	Mar. 2011	Mar. 2012	About the same
Hiroshima Office
Topre(Foshan) Autoparts Corporation	New facility for producing automotive stamped parts	6,000	Apr. 2010	June 2011	-