Topre Corporation Business Report FY ended Mar. 2016
Financial Overview |
(in million JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 145,390 | 120,567 | 20.6 | - |
| Operating income | 18,150 | 13,305 | 36.4 | - |
| Ordinary income | 15,391 | 16,576 | (7.1) | - |
| Net income attributable to owners of the parent | 10,428 | 10,347 | 0.8 | - |
| Press Products | ||||
| Sales | 97,315 | 77,365 | 25.8 | -In Japan, demand was sluggish due to the increase in the consumption tax and due to the continued drop in sales of minicars, after the rush to buy them ended, before the tax on them increased. -Outside Japan, production and sales continued to be robust in the USA. In addition, sales were also higher in 2014 due to increased sales at Topre (Xiangyang) Autoparts Corporation and Topre Autoparts Mexico, S.A de C.V. |
| Operating income | 13,145 | 9,538 | 37.8 | - |
Acquisition of Yachiyo Industry's press part business
-Yachiyo Industry Co., Ltd. announced that it has completed the transfer of its consolidated subsidiary, YG Tech Co., Ltd., to Topre Corporation. YG Tech has changed its corporate name and is engaged in manufacturing automotive stamping parts. (From a press release on January 6, 2016)
Recent Developments
-In October 2015, the Company’s second die production plant in Japan commenced operations, with the launch of operations at Topre Kyushu Corporation’s new production plant.
-In February 2015, the Company announced that it made capital investments for the following purposes.
- USA: Topre America Corporation’s (Cullman, Alabama) new production plant in Smyrna, Tennessee is set to launch commercial operations in the fiscal year that ending in March 2017, with the construction of the plant started. The Company plans to install the latest, heavy-duty press machines that can handle ultra-high tensile materials. The Company forecasts that its sales for the fiscal year ending in March 2020 will reach USD 361 million, which includes sales generated by the new plant. This is expected to be a 15.3% increase over sales estimated for the fiscal year ending in March 2017. The Company invested JPY 5.0 billion (USD 42.1 million) in the plant. The land is 100,000m sq. and the building is 12,000m sq.
- Mexico: The Company launched construction of a second capital-investment project at Topre Autoparts Mexico, S.A. de C.V. (San Juan del Rio, Queretaro). The project includes expanding the plant building and increasing production facilities and equipment. Operations are scheduled to begin in September 2017. The Company forecasts sales in the fiscal year ending in March 2020 will be MXN 3,097 million, which will be a 297% increase over those for the fiscal year ending in March 2017. The plant building is 12,000m sq. The Company is investing JPY 4.0 billion (USD 33.7 million).
-Topre (Xiangyang) Autoparts Corporation was established to deliver products to the interior of China.
-Production at the new production plant that started operations in October 2015 is on track, and the Company forecasts increases in both orders and production volumes.
13th Mid-term Management Plan (from the fiscal year that ended in March 2105 to the fiscal year ending in March 2017)
-Vision for the auto-parts business:
"To grow into a larger supplier of automotive-body modules and become a global cooperation the world needs"
-Main policies:
- Strengthen capabilities to respond to market changes
- Further strive to develop and sell new products
- Review and reorganize existing businesses
- Work to achieve the highest quality in the world.
- Develop human resources that can face challenges
Financial objectives for the fiscal year ending March 2017
Initial objectives: Achieving them one year earlier than planned (Revised objectives)
- Consolidated sales: JPY 142.0 billion => JPY 164.0 billion
- Operating income: JPY 14.6 billion => JPY 17.0 billion
- ROE: 9.0% or higher
- ROA: 6.0% or higher
- Percentage of sales generated outside Japan: 45%
Mid-term plan revised financial objectives |
(in 100 million JPY) |
| FY ended Mar. 31, 2015 (Actual Result) |
FY ended Mar. 31, 2016 (Actual Result) |
FY ending Mar. 31, 2017 (Original Target) |
FY ending Mar. 31, 2017 (Revised Target) |
|
| Sales | 1,205 | 1,453 | 1,420 | 1,640 |
| Operating income | 133 | 181 | 146 | 170 |
| Percentage of sales generated outside Japan | 41% | 46% | 45% | 45% |
Outlook for FY ending Mar. 2017 |
(in million JPY) |
| FY ending Mar. 31, 2017 (Forecast) |
FY ended Mar. 31, 2016 (Actual Results) |
Rate of change (%) |
|
| Sales | 164,000 | 145,390 | 12.8 |
| Operating income | 17,000 | 18,150 | (6.3) |
| Ordinary income | 16,500 | 15,391 | 7.2 |
| Net income attributable to owners of the parent | 10,500 | 10,428 | 0.7 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Overall | 1,001 | 1,019 | 1,053 |
R&D Activities
Press Products Business
-Launch of production of aluminum press products (products for fuel-cell vehicles and plugin hybrid vehicles): Development of aluminum press technology and joining technology to meet the need for reducing vehicle weight.
-In line with the increased use of high-tensile products in the level of 1180MPa, the Company is conducting R&D activities to enable existing materials to be used without issue, and to be more broadly applied, in products sold globally.
-Continued development activities to commercialize cold-stamped, high-tensile products in the level of 1470MPa, which are as strong as hot-stamped products.
-Developed a production method that eliminated some of the laser-cutting processes that led to cost increases in hot-stamped products, of which commercial production started.
Technology Licensing-out Agreement |
(As of Mar. 31, 2016) |
| Company | Country | Products | Associates | Contract Period |
| Sunrise Machinery Co., Ltd. | China | Automotive pressed products and dies | Providing technical information and expertise |
From August 31, 2012 until February 17, 2019 |
Capital Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Press Products | 19,176 | 13,242 | 11,445 |
| -The Company | 4,571 | 2,301 | 2,452 |
| -Subsidiaries | 14,551 | 10,934 | 8,925 |
| Overall | 20,224 | 14,491 | 11,838 |
Press Products Business (FY ended Mar. 31, 2016)
-JPY 19,176 million for facilities and equipment
- JPY 4,571 million mainly for dies used for automotive pressed products.
- JPY 14,551 million mainly for press equipment to produce automotive products at Topre Kyushu Corporation, Topre Tokai Corporation, Topre America Corporation, Topre (Foshan) Autoparts Corporation, Topre (Xiangyang) Autoparts Corporation, Topre (Thailand) Co., Ltd. and Topre Autoparts Mexico, S.A. de C.V.
Planned Capital Investment (Presse-products business) |
(As of Mar. 31, 2016) |
| Name | Type of facility | Planned total investment (in million JPY) |
Start | End | Increased capacity upon completion |
| Sagamihara Office | Facility for dies used in making automotive pressed products | 2,354 | Mar. 2016 | Mar. 2017 | About the same |
| Topre Autoparts Mexico, S.A de C.V. | New plant to manufacture automotive pressed products | 4,000 | Jul. 2015 | Apr. 2017 | - |
| Topre America Corporation | New plant to manufacture automotive pressed products | 5,000 | Apr. 2015 | Apr. 2017 | - |