Factors
1) Press products: Sales
<Japan>
-Vehicle production and sales were buoyed by an increase in consumer buying during the second half of the year, prior to the April 1 consumption tax hike. Sales at the Company, however, slightly decreased from the previous year due to consumers' shift towards compact and mini vehicles, in which few of the Company's products are used.

<Overseas>
-Overseas sales significantly increased from the previous year thanks mainly to favorable business at Topre America Corporation. Full-scale operations at Topre (Foshan) Autoparts Corporation in China also contributed to the sales gain.

2) Press products: Operating Profit
-Operating profit at the division grew significantly year-on-year. The Company won increased orders from overseas customers, released products for new models, and began operations at its new China plant smoothly.

New Plant in Thailand

-In 2013, the Company announced that it will construct an automotive stamping parts plant in Thailand. With a total investment of approximately JPY 6 billion (USD 60.6 million), the new plant will become operational in April 2015. Sales are expected to reach approximately JPY 5 billion (USD 50.5 million) in the fiscal year ending March 2018. The new plant will be Topre's third Asian manufacturing site, following its two Chinese plants in Foshan (Guangdong Province) and Xiangyang (Hubei Province). (From a press release on September 13, 2013)

U.S. Operations

-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. Topre, 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. Topre 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)

New Plant in Japan

-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. Topre recently received a new contract from the automaker to supply tailgates for mini vehicles. Stamping parts for the tailgates will be produced at Topre'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)

R&D Activities

• JPY 2,452 million mainly for dies used for stamping automotive parts.
• JPY 8,925 million mainly for press equipment to produce automotive components at Topre Kyushu Corporation, Topre America Corporation, Topre (Foshan) Autoparts Corporation, Topre (Xiangyang) Autoparts Corporation, and Topre Autoparts Mexico, S.A. de C.V.

New Facility (Stamped-products business)