TBK Co., Ltd. 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 | 47,086 | 47,058 | 0.1 | -In Japan: Sales were lower because of a significant decrease in product demand for exports of truck OEMs, even though demand in general was strong. -Outside Japan: Won new commercial rights, especially in Thailand. |
| Operating income | 1,345 | 2,934 | (54.2) | -Sales in Japan fell significantly in line with a decrease in OEMs’ exports. -Unable to gain the benefits fast enough, of streamlining production operations in Japan. -Increase in capital investments for new production facilities in Thailand, in line with expanding business operations. -Expenses for advanced investment in human resources. |
| Ordinary income | 1,150 | 2,870 | (59.9) | |
| Current net income | 633 | 2,152 | (70.6) | |
Mid-term Management Plan
13th Mid-term Management Plan (from the FY ending in March 2017 to the FY ending in March 2019)
-Financial targets aiming for increased sales:
- By the end of the mid-term plan, consolidated sales of JPY 55.0 billion, consolidated operating profit of JPY 4.4 billion, and consolidated profit margin of 8%
-Increase global competitiveness:
- Thailand: obtain new commercial rights in Thailand, increase capital investments in production facilities to respond to Japanese OEMs' local production, and ready new production plant as soon as possible.
- Japan: Develop eco-friendly, low-energy products including electric pumps, and driver-assistance systems; increase sales activities; and strengthen competitiveness through streamlining and investing.
12th Mid-term Management Plan (from the FY that ended in March 2014 to the FY that ended in March 2016)
-Financial targets aiming for increased sales:
- (Target) By the end of the mid-term plan, consolidated sales of JPY 50.0 billion, and percentage of sales generated outside Japan 40%.
- (Actual) Consolidated sales of JPY 47.1 billion and percentage of sales generated outside Japan 38%.
-Increase global competitiveness:
- Thailand: Set up new production plant and significantly expand B/H business.
- India: Increase sales and turn more operations into consolidated subsidiaries
- U.S.: Operations finally turned profitable from the fiscal year that ended in March 2014.
Investments Outside Japan
-The Company announced that its Thai subsidiary, TBKK (Thailand) Co., Ltd., has started constructing a new plant at the Amata Nakorn Industrial Estate, in Chonburi Province, Thailand. The plant will manufacture automotive parts such as water pumps, oil pumps, and brakes. THB 10.79 billion (approximately JPY 37.77 billion) will be invested in the new facility, which will cover a land area of 93,000 square meters and a floor area of 32,500 square meters. Construction is scheduled to be completed by September 2015 and mass production is expected to start in the first half of 2016. (From a press release on May 8, 2015)
R&D Structure
-R&D activities are conducted by the No. 1 R&D Dept., No. 2 R&D Dept., New Product Development Dept., and Testing Dept.
-There are 80 staff members, accounting for 4.5% of the entire workforce.
-The Company’s Tokachi Test Course is in Obihiro, Hokkaido, Japan
R&D Activities
-The Company is continuing the develop its air-wedge drum brake being used by all Japanese OEMs, working to make next-generation brakes that significantly reduce vehicle weight and costs.
-The Company is modularizing its next generation air-wedge brakes, developing them to include its proprietary pads and rotors and working to increase sales.
-The Company is streamlining its S cam brake structure in order to respond to a wider range of needs in emerging countries.
-The Company is focusing its R&D activities to improve products by making them safer, more eco-friendly, and more energy efficient, developing its expertise in technology.
-The Company is developing and improving water pumps and oil pumps for engines mounted on small, mid-size and heavy-duty trucks; and on buses.
-The Company is developing water pumps and oil pumps, receiving new orders from non-Japanese OEMs.
-The Company is developing retarders that serve as optimum auxiliary brakes for engines compliant with exhaust-gas emission regulations, working to win orders for mid-sized and heavy-duty trucks, while developing with a wider range of models.
List of Technology Licensing-out Agreements |
(As of Mar. 31, 2016) |
| 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 |
Jun. 23, 2015 - 10 years from the day the agreement came into effect, with yearly automatic renewal rights thereafter |
| Sangsin Brake Co., Ltd. | Korea | Brakes for large vehicles | Same as above | Jun. 14, 2014 - 10 years from mass production starting date, with yearly automatic renewal rights thereafter |
| Full Win Developments Ltd. | China | Brake linings | Same as above | Aug. 1, 2002 - 10 years from the day the agreement came into effect, with yearly automatic renewal rights thereafter |
| Changchun 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, with yearly automatic renewal rights thereafter |
| TBK America, Inc. | USA | Water pumps and oil pumps for automobiles | Same as above | Nov. 15, 2006 - 10 years from the initial payment date, with yearly automatic renewal rights thereafter |
| Sangsin Brake Co., Ltd. | Korea | Electromagnetic retarders | Same as above | Sep. 30 2010 - 10 years from sales launch, with yearly automatic renewal rights thereafter |
| TBK India Private Ltd. | India | Water pumps and oil pumps for automobiles | Same as above |
Jun. 28, 2011 - 10 years from mass production of new product starting date |
| Changchun FAWSN TBK Co., Ltd. | China | Friction materials for brakes used in commercial vehicles | Same as above | Jul. 5, 2012 - 10 years from mass production starting date, with yearly automatic renewal rights thereafter |
| Sansin Brake Co., Ltd. | Korea | Electromagnetic retarders | Same as above | Apr. 30, 2014 - 10 years from the day the agreement came into effect, with yearly automatic renewal rights thereafter |
R&D Expenditure |
(in million JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Brake Business | 568 | 689 | 468 |
| Engine Components and others | 634 | 727 | 708 |
| Total | 1,202 | 1,417 | 1,177 |
Capital Investment |
(in million JPY) |
| FY ended Mar. 31, 2016 | FY ended Mar. 31, 2015 | FY ended Mar. 31, 2014 | |
| Automotive Components | 7,638 | 6,791 | 4,673 |
| by Segment | |||
| -Japan | 2,759 | 2,159 | 2,214 |
| -Asia | 4,539 | 4,604 | 2,420 |
| -North America | 339 | 76 | 73 |
-The Company spent the following for capital investments in the fiscal year that ended in March 2016, in its automotive business and other businesses.
- Japan: brake production facilities (JPY 417 million), production facilities for the engine components business and other businesses (JPY 1,044 million).
- Asia: facilities for the engine components business (JPY 2,592 million).
-The Company plans to spend JPY 5,000 million in capital investments in the fiscal year ending in March 2017.
Outlook for FY ending Mar. 31, 2017 |
(in million JPY) |
| FY ending Mar. 31, 2017 (Forecast) |
FY ended Mar. 31, 2016 (Actual Results) |
Rate of Change (%) | |
| Sales | 47,000 | 47,086 | (0.2) |
| Operating profit | 1,700 | 1,345 | 26.4 |
| Ordinary profit | 1,400 | 1,150 | 21.6 |
| Profit for the year attributable to owners of the parent | 900 | 633 | 42.1 |
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
-The Company plans to launch a new light-weight and lower-cost brake in order to expand sales and obtain new commercial rights, in response to deteriorating external conditions.
-The Company plans to increase new commercial rights for electric pumps for the commercial-vehicle sector and other sectors, and develop driver-assistance systems that made use of recovery technology.
-Expanding sales outside Japan
- Thailand: Increase production of parts for turbo-charged engines for passenger cars and obtain new commercial rights for products such as commercial-vehicle brakes and pumps.
- India: Expand business dealing in pump parts; and turn the operations into a consolidated subsidiary, after the fiscal year that ended in March 2016.
- U.S.: Expand business based on current commercial licenses and make the operations profitable.
- China: Work to obtain commercial rights and reduce costs, taking advantage of mid-term business opportunities.