Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	91,534	86,109	6.3	-
Operating income	8,080	8,997	(10.2)	-
Ordinary income	10,303	9,619	7.1	-
Current net income	5,849	5,166	13.2	-
Press products
Sales	53,370	51,053	4.5	1)
Operating income	6,503	7,510	(13.4)	2)

 
Factors
1) Press products: Operating Revenue
<Japan>
-During the first half of the year, the volume of orders and production both increased compared to the same period the previous fiscal year, supported by eco-car sales incentives.  However, sales over the entire year were lower because the sales incentives ended, the number of new vehicle models that had been equipped with the Company’s products decreased after they underwent model changes, and consumer demand migrated to compact and mini cars.

<North America>
-Sales rose year-on-year by 4.5% due to huge increases in orders and production as a result of with new-model vehicle launches and strong new-car sales.

2) Press products: Operating Profit
-Operating profit was 13.4% lower year-on-year because of higher depreciation costs and a slowdown in sales during the second half in Japan, even though the Company undertook initiatives to improve productivity in order to respond to new-model vehicle launches.

Contracts

Expanded Vehicle Models Equipped with Hot-stamped Automotive Body Frame Parts
-The Company will provide its hot-stamped auto body frame components for more models in the U.S. Recently, more Japanese automakers are choosing the hot-stamped components for particular areas which require extraordinary strength. The Company, therefore, is trying to meet this growing demand by increasing its supply from a U.S. manufacturing base. This month, the company became the first Japanese parts supplier to start production of hot-stamped auto body frame components in the U.S and is starting the local supply for the Honda Odyssey. It also won orders from Honda for the large-size SUV to be manufactured at the automaker's Alabama plant, as well as Nissan. The Company completed the investment in the additional hot stamping equipment in Topre America Corporation, its US manufacturing base in Alabama, which allows the company to fully utilize the existing facilities to meet the increasing demands for the hot-stamped products for the time being. Domestically, the company delivers the hot-stamped body frame components for Nissan's luxury sedans from its Sagamihara Plant. (From an article in the Nikkan Jidosha Shimbun on Jun 14, 2013)

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

Outlook for FY ending Mar. 2014

(in millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of change (%)
Sales	100,000	91,534	9.2
Operating income	8,100	8,080	0.2
Ordinary income	8,300	10,303	(19.4)
Net income	5,000	5,849	(14.5)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	1,006	1,047	1,020

 

R&D Activities

Press products Business
-Launched production of automotive body frames made from ultra-high tensile steel in the range of 1,180MPa, making it the strongest cold-forged stamped product in the world.
-Preparations were completed for launching production of hot-stamped parts in North America, with initial production to start off slowly. In order to increase the Company's competitive strengths in terms of hot-stamping methods, the Company is continually conducting R&D activities on applied development.

Technical Alliances Outside Japan

(As of Mar. 31, 2013)

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, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	17,477	8,127	4,021

 

Press products Business
-15,073 million yen for facilities and equipment

• 2,938 million yen mainly for dies used for stamping automotive parts.
• 12,016 million yen for facilities and equipment at the following subsidiaries producing automotive stamped parts: Topre Kyushu, Topre America Corporation, Topre (Foshan) Autoparts Corporation, and Topre Autoparts Mexico, S.A. de C.V..
• In addition, during FY2013 the Company will continue investing, spending a whopping 10 billion yen mainly for production facilities outside Japan. In China, the Company will invest in its second production plant, the plant at Topre Xiangyang Automobile Parts Co., Ltd. that is scheduled to launch production in January 2014, installing a 3,000 ton heavy-duty stamping machine. It expected to achieve sales of 5.0 billion yen during fiscal year 2015. In addition, the Company is investing in a new plant in Mexico, which will come online at about the same time as its new plant in China. The Mexico plant will be equipped with 2,500 ton and 1,000 ton stamping machines to manufacture parts for Nissan pick-up trucks. The Company is expecting to achieve sales of 4.0 billion yen in fiscal year 2015.

<Japan>
Established a new production plant in Suzuka to supply products to Honda
- The Company will establish a new assembly plant in Suzuka, Mie Prefecture, Japan. The new plant will perform final assembly of outer panel components for mini vehicles and supply the parts to Honda Motor's Suzuka Factory, starting in the fall of 2014. Setting up the new plant near Honda's facility will contribute to enhancing overall efficiency, while saving distribution costs for the large products, which meets the customer's requirement. The Company recently received a new contract from the automaker to supply tailgates for mini vehicles. Stamping parts for the tailgates will be produced at the Company's Sagamihara Plant (Kanagawa Prefecture) and assembled at the new Suzuka Plant. Meanwhile small parts other than stamping products will be procured locally and assembled at the new facility. (From an article in the Nikkan Jidosha Shimbun on Jun 3, 2013)

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	1,029	Mar. 2013	Mar. 2014	About the same
Topre Xiangyang Automobile Parts Co., Ltd.	New plant to manufacture automotive press products	5,000	Feb. 2012	Jan. 2014	-
Topre Autoparts Mexico,S.A de C.V.	New plant to manufacture automotive press products	4,000	Mar. 2012	Jan. 2014	-