TBK Co., Ltd. Business Report FY ended Mar. 2014
Business Highlights
Financial Overview |
(in million JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 45,607 | 43,008 | 6.0 | -In Japan: Demand in truck industry recovered from the Great East Japan Earthquake. Greater new-car purchases of cars compliant with new gas-emission regulations. -Outside Japan: Aggressive sales activities outside Japan won new orders, such as in Thailand. Sales rose as a result of favorable currency translation due to the weak yen. |
Operating income | 3,422 | 3,240 | 5.6 | - |
Ordinary income | 3,452 | 3,209 | 7.6 | - |
Current net income | 2,675 | 2,042 | 31.0 | - |
Mid-term Management Plan
-The final performance targets for the 12th Mid-term Management Plan* are as follows:- Sales: JPY 50,000 million (JPY 30,000 million in Japan, JPY 20,000 million outside Japan)
- Percentage of sales revenue generated outside Japan: 40%
1. Expand new products and business sectors
-The Company will step up marketing of self-powered retarders for small to large trucks and buses. The Company will propose the new retarders as more energy-efficient replacements for conventional electromagnetic retarders and exhaust brakes used in a wide range of models. Mass production of the new retarders is expected to begin by March 2016. The products are initially targeted at next-generation models from four Japanese truck and bus manufacturers and other customers. TBK hopes to produce 2,000 units per month for the Japanese market alone, intending to introduce the new products globally after securing stable sales in Japan. The Company will also study the possibility of using the electricity generated from the self-powered retarders for other applications. (From an article in the Nikkan Jidosha Shimbun on March 25, 2014)
>>>Product image
-The Company will start to produce its newly developed electric water and oil pumps at its Fukushima plant within March 2014. The Company developed its first electric pumps based on its technology for mechanical pumps, which is the Company's main product. The Company will propose the product for exhaust gas recirculation coolers and inverters of electric vehicles. TBK aims to initially produce 10,000 units per month, but is planning to increase the monthly volume to 100,000 units. The electric pumps are canned motor pumps, and have seal-less structures. The Company's electric pumps are available in two types: one made of aluminum alloy, and another made of polyphenylene sulfide plastics. Currently, TBK is receiving inquiries from a dozen of Japanese, U.S., and European automakers and construction equipment companies, and has already received some orders. (From an article in the Nikkan Jidosha Shimbun on March 14, 2014)
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2. Expand sales outside Japan
-Expand commercial rights in Asia, strengthen foundations of business operations, and provide greater support.
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
R&D
R&D Expenditure |
(in million JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Brake Business | 468 | 441 | 451 |
Engine Components and others | 708 | 709 | 599 |
Total | 1,176 | 1,150 | 1,050 |
R&D Section
-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 75 researchers, which account for about 5.2 percent of its entire workforce.
R&D Activities
-Major R&D Activities during FY ended Mar. 2014 are as follows:Division | Detail |
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. -Streamline the structural design of S-cam brakes for emerging countries. Promote R&D activities in order to respond to expanding needs. |
Engine Components and others | -The Company promoted the improvement and development of water and oil pumps for engines of small, medium, and heavy-duty vehicles and buses. |
Other | -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 have worked on enhancing its product mix of retarders, in addition to increasing the number of vehicle models on which they can be adopted. |
Technology Licensing-out Agreements
|
(As of Mar. 31, 2014) |
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) |
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 | Brakes for large sized vehicles | 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) |
Sangsin Brake Co., Ltd. | Korea | Electromagnetic retarders | Same as above | From Sep. 30, 2010 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 | From Jun. 28, 2011 10 years from mass production starting date |
Changchun FAW Sihuan TBK Co., Ltd. | China | Brakes for commercial vehicles | Same as above | From Jul. 5, 2012 10 years from mass production starting date (then automatic extension every year) |
Investment Activities
Capital Investment |
(in million JPY) |
FY ended Mar. 31, 2014 | FY ended Mar. 31, 2013 | FY ended Mar. 31, 2012 | |
Automotive Components | 4,673 | 2,899 | 2,376 |
-Japan | 2,214 | 1,982 | 1,647 |
-Asia | 2,420 | 873 | 687 |
-North America | 73 | 55 | 40 |
-Major investments during FY ended Mar. 2014 regarding automotive components are as follows:
- Japan: JPY 846 million for engine component business, JPY 741 million for brake business
- Asia: JPY 1,375 million for engine component business