Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	86,109	80,689	6.7	-
Operating income	8,997	5,501	63.6	-
Ordinary income	9,619	5,586	72.2	-
Current net income	5,166	936	451.9	-
Stamped products
Sales	51,053	46,775	9.1	-Sales increased because of greater supply agreements the Company won, which raised production volumes. This was attributed to the recovery in the new-vehicle sales in Japan and North America.
Operating income	7,510	4,095	83.4	-Along with the increase in operating revenue, the Company enhanced its productivity levels. In addition, the Company changed its amortization method for dies, which reduced depreciation costs. These factors contributed to the year-on-year increase in operating income.

 

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

Performance Forecast

(in millions of JPY)

	FY ending Mar. 31, 2013 Forecast	FY ended Mar. 31, 2012 Result	Rate of change()
Sales	91,000	86,109	5.7
Operating income	7,000	8,997	(22.2)
Ordinary income	7,500	9,619	(22.0)
Net income	4,000	5,166	(22.6)

12th Mid-term Plan

Target Figures

(in millions of JPY)

	FY ending Mar. 31, 2014 (Final Year)	FY ending Mar. 31, 2012 (Actual)	Increase/Decrease (%)
Sales	95,000	86,109	10.3
Business Operating income	7,800	8,997	(13.3)
Ordinary income	8,200	9,619	(14.8)
Net income	4,900	5,166	(5.1)

 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)

New Company

- The Company announced that it has completed the procedures for setting up joint ventures in Mexico and China. Both new companies will produce and sell stamping parts for automobiles. Their operations will begin in January 2014. The Mexican plant, Topre Autoparts Mexico, S.A. de C.V., covers approximately 100,000 square meters, and the Chinese plant occupies about 95,000 square meters. (From a press release on March 28, 2012)

- The Company announced on Nov. 11 its plan to establish a subsidiary in Mexico to manufacture and sell pressed auto parts. It aims to respond to expected growth of automobile production in North, Central and South America. The new company will be Topre's 2nd production facility in the area after Topre America Corp. in Alabama, U.S.A., which started operations in 2004. Topre will establish the new subsidiary in February 2012 by fully funding it with approx. two billion yen. Although the name is yet to be decided and the site selection is underway, the company aims to start operations in January 2014. It will invest an approximate total of four billion yen in an aim to achieve sales of four billion yen in the fiscal year ending in March 2016. (From an article in the Nikkan Jidosha Shimbun on November 15, 2011)

- The Company said it will set up a subsidiary in Hubei Province, China. It plans to produce stamping parts for automobiles starting in January 2014. Capital of 2 billion yen will be funded wholly by Topre. Total investment will be around 5 billion yen. The new subsidiary plans to generate 2.5-3.5 billion yen in sales in the fiscal term ending March 2015. (From a press release on October 14, 2011)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	1,047	1,020	909

 

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 need in North America for further strengthening attributes that offer greater collision protection, the Company started preparing to launch commercial production of hot-stamped products in the region. At the same time, the Company continued to improve its technical prowess in the area of processing in order to raise the competitive edge of its products.
 -Based on achievements the Company made in its product development activities, it began commercial production of signal lamp cases, which conventionally are die-cast, producing them at lower cost through stamping .

Technical Alliances Outside Japan

(As of Mar. 31, 2012)

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)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	8,127	4,021	10,983

 

Stamped Products Business
-The Company made a capital investment of 7,560 million yen during FY ended Mar. 31, 2012.
-This includes a 2,326 million yen investment mainly in dies for stamping automotive parts.
-This also includes 5,196 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 will start manufacturing ultra high-tensile steel with a maximum strength level of about 150 kg in the U.S. As part of the company's additional investment programs at its U.S. facility, it will install new manufacturing equipment to produce such steel, aiming operation launch as early as September 2012. Topre has already been producing the world's top level 150kg high-tensile steel in Japan, but it is the first time for it to manufacture the product in the U.S. No other Japanese company has ever made such steel in the U.S. either. The expansion will allow Topre to supply materials that are higher in strength and lighter in weight in the U.S., helping automakers to meet the country's new collision safety standards scheduled to be enforced next year. The company is going to sell the ultra high-tensile steel not only to the facilities of Japanese automakers, but also to European and the U.S. car manufacturers producing luxury vehicles. (From an article in the Nikkan Jidosha Shimbun on December 9, 2011)

-The Company Tokyo, Japan, announced that it will make additional investment in facilities at Topre America Corp., its 100% subsidiary in Alabama, U.S.A. It plans to build a new plant building of approx. 13,000 m2 and install equipment including a 2,500-ton stamping machine in order to respond to expected growth of demands for pressed automotive components in the southern U.S. The new plant, in which Topre will invest approx. 6.5 billion yen, is scheduled to start operation in September 2012. (From an article in the Nikkan Jidosha Shimbun on July 19, 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	1,441	Mar. 2012	Mar. 2013	About the same
Hiroshima Office
Topre America Corporation	Plant buildings and large-size stamping equipment	6,500	Dec. 2011	Sep. 2012	-