TBK Co., Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of Change(%) Factors
Overall
Sales 29,440 39,511 (25.5) -
Operating income 459 1,277 (64.1) -
Ordinary income 532 1,357 (60.8) -
Current net income 681 75 808.0 -
Automotive component manufacturing business
Sales 28,902 38,972 (25.8) -Sales in the brake segment dropped 26.8% year-on-year due to a sharp downturn in demand in Japan and elsewhere. This resulted from the global financial crisis that originated in the USA, which in turn caused a slowdown in orders from Japanese truck manufacturers.

-Sales in the engine component segment dropped 27.5% year-on-year due to a slowdown in orders for automotive pumps.
Operating income 1,145 2,149 (46.7) -

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

R&D

R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Group 837 848 937
Brake production facilities 425 492 548
Engine Components 331 303 309
Other divisions 80 53 79

-R&D expenditure on new product development amounted to 24 million yen in FY 2009.


R&D Section

-The following departments are engaged in R&D activities: No. 1 Development Dept., No. 2 Development Dept., New Products Development Dept. and the Experiment Department.
-The R&D activities are promoted by No.1 Development Dept., No.2 Development Dept., New Products Development Dept. and the Experiment Department.
-The Group has a total of 73 researchers, which account for about 5.2 percent of its entire workforce.

Brake Business
-An increasing number of the Company's air wedge drum brakes, which all Japanese OEMs are  installing, are being equipped on more vehicle models produced by both Japanese and non-Japanese OEMs.
-The Company's next-generation brake, which is an air-disk brake, is now being developed as a module. The Company is now working on creating proprietary pads, rotors and other parts, and preparing for future applications.
-The Company is conducting research and development activities, which are focusing on safer, environmentally friendly, and energy-saving products, accumulating its technology and passing it on to engineers for the future.

Engine Components
-The company promoted the improvement and development of water and oil pumps for engines of small, medium, and heavy-duty vehicles and buses.
-The company developed water and oil pumps for engines of domestic OEMs which meet the new long term exhaust emission regulations.

Other divisions
-The use of retarder has expanded for medium, and heavy-duty vehicles and buses, as it is regarded as a suitable device for engines designed to meet the exhaust emission regulations.
-The Company worked on enhancing its product mix of retarders, in addition to increasing the number of vehicle models on which they can be adopted.

Licensing of Technology from Other Companies

(As of Mar. 31, 2010)

Name of the contractor Country Contract item Contract coverage Contract period
Arvin Meritor Corp. U.S.A. Brake parts for large trucks 1. To set the rights for establishing industrial property rights.
2. To supply technical information
3. To grant manufacture and sales licenses
From March 8, 1991 to March 6, 2011

Licensing of Technology to Other Companies

(As of Mar. 31, 2010)

Name of the contractor Country Contract item Contract coverage Contract period
TBKK (Thailand) Co., Ltd. Thailand Automotive brakes, camshafts, oil pumps, water pumps 1. To set the rights for establishing industrial property rights.
2. To supply technical information
3. To grant manufacture and sales licenses
Mar. 29, 1990 - 10 years from sales launch (then automatic extension every year)
Sangsin Brake Co., Ltd. Korea Brakes for large vehicles Same as above Jan. 14, 1994
10 years from mass production starting date (then automatic extension every year)
TBK India Private Ltd. India Water pumps and oil pumps for automobiles Same as above June 28, 1998
7 years from mass production starting date (then automatic extension every year)
GSB-TBK Automotive Components, S.L. Spain Same as above Same as above June 7, 2000
10 years from mass production starting date (then automatic extension every year)
Full Win Developments Ltd. China Brake linings Same as above Aug. 1, 2002
10 years from the effective date (then automatic extension every year)
Hangzhou TBK-APG Brakes Co., Ltd. China Same as above Same as above July 30, 2003
10 years from mass production starting date (then automatic extension every year)
Chang chun TBK Shili Auto Parts Co., Ltd. China Friction materials for brakes used in commercial vehicles Same as above Dec.22, 2005
10 years from mass production starting date (then automatic extension every year)
TBK America, Inc. USA Water pumps and oil pumps for automobiles Same as above Nov. 15, 2006
10 years from the initial payment date
(then automatic extension every year)

Investment Activities

Capital Investment

(in millions of JPY)
  FY2009 FY2008 FY2007
Automotive Components 1,490 3,404 1,310
-Brake production facilities 212 573 300
-Pump production facilities 314 664 911