IJT Technology Holdings Co., Ltd. Business Report FY ended Mar. 2016

Financial Overview

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 Rate of Change (%) Factors
Sales 134,191 148,350 (9.5) -
Operating profit 3,220 4,569 (29.5) -Sales (JPY 1,100 million) were offset by negative factors (JPY 2,200 million) and expenses incurred for further growing the business (JPY 600 million).
Ordinary profit 2,366 6,093 (61.2) -
Profit for the year attributable to owners of the parent 1,978 3,996 (50.5) -

Recent Development in Japan

-In the fiscal year that ended in March 2016, the Company set up an overseas sales department and a corporate relations department, with the aim of strengthening the Group's functions.

-The company renewed the aging facilities in Murata, Miyagi Pref., in order to strengthen production operations in Japan. A 12,800-ton forging press was installed to manufacture front axles, at an investment of JPY 4.0 billion yen. The new machine commenced operating in June 2015. Compared to forging done with the previous hammer press, this newest machine reduces processing time by 30%, and the work can be done by one-third the number of people. Based on available capacity, this strengthens the operating structure in terms of being able to better respond to reduced demand in the future.

-The company renewed its production line assembling engines for industrial use.

-The company installed a highly efficient electric forging furnace.

Recent Development Outside Japan

-PT. TJForge Indonesia launched commercial operations in the fiscal year that ended in March 2016. Investment was made in facilities to expand the processing and assembly businesses, which is in addition to the operations that were initially planned.

-The Company announced that it will make an additional investment in its Indonesian subsidiary, PT. TJForge Indonesia (TJFI). IDR 785.7 billion (JPY 7.3 billion) will be appropriated to capital expenditures for TJFI's forging, processing, and assembly operations in May 2015. Jidosha Buhin Kogyo Co., Ltd., a wholly-owned subsidiary of IJT Technology, will provide IDR 314.3 billion (JPY 2.9 billion) and Isuzu Motors Limited and its 100 percent subsidiary, Isuzu Motors Asia Ltd. (IMA), will provide the remaining IDR 471.45 billion. As a result of this investment, the IJT Group will decrease its shareholding in TJFI from current 60 percent (40 percent owned by Jidosha Buhin Kogyo and 20 percent owned by TDF) to 49.5 percent (40 percent owned by Jidosha Buhin Kogyo and 9.5 percent owned by TDF). Meanwhile, Isuzu Motors Limited will raise its shareholding from current 25 percent to 35.5 percent. (From an article in the Nikkan Jidosha Shimbun on March 16, 2015)

-PT. TJForge Indonesia machine processes the forged products that are manufactured at the new production plant of PT.Asian Isuzu Casting Center, delivering them to the Indonesian domestic market and to Thailand from August 2014.

R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014
Overall 547 477 351

R&D Activities

-It mainly serves as the R&D and technology/engineering function.
-Development of high-strength and high thermal-fatigue materials that are designed to reduce the weight of engine parts; and development of production methods to raise the forging and machining/cutting capability of brake parts.
-Increase the kinds of underbody parts produced, which use RD800, a high strength and ductile material that was developed in-house; as well as increase production and sales of hydraulic valves and turbine housing that are major parts used in construction equipment and vehicles.

-In collaboration with JBK Service, the R&D function researches and develops automotive parts such as powertrains.
-Jointly develops some advance-development products with Isuzu.
-Major R&D Activities:

  • Propeller shafts for mid-sized and small trucks.
  • Power-take-off (PTO) based on power-take-off methods aligned with bodywork applications.
  • Rocker arms and fly wheels for automotive engine parts
  • Propeller shafts and drive plates for compact cars sold in markets outside Japan
  • Parts for highly fuel-efficient engines
  • Evaluations on new engines compatible with next-generation fuels

Product Development

Suspension modules for middle and heavy-duty trucks
-The Company will develop suspension modules for middle and heavy-duty trucks. The Company will establish integrated production system for materials, processing and assembly by utilizing the technologies of its three affiliates: casting technology of I Metal Technology Co., Ltd., forging technology of TDF Corporation, and assembling technology of Jidosha Buhin Kogyo Co., Ltd. The modules will be proposed to commercial vehicle manufacturers and construction machinery makers outside the Isuzu Group, including foreign makers. (From an article in the Nikkan Jidosha Shimbun on February 27, 2014)

Capital Investment

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014
Overall 10,363 14,432 12,528

-Fiscal year that ended in March 2016: Invested to strengthen competitiveness in terms of Quality, Cost, Delivery (QCD) at production plants in and outside Japan.

-Fiscal year that ended in March 2015:

  • Japan: to commence operations of a 12,800-ton forging press.
  • Outside Japan: To launch operations at production plant in Indonesia and increase capacity at plant in Thailand.

Planned Capital Investments

(As of Mar. 31, 2016)
Company Plant
Target of Investment Planned Investment
(in millions of JPY)
Start End
Jidosha Buhin Kogyo Headquarters and Ebina Plant
(Ebina City, Kanagawa Pref.)
Renew production lines for industrial-use engines 775 Apr. 2015 Mar. 2016
Earthquake reinforcement work at production plant 546 Apr. 2015 Mar. 2017
Jibuhin (Thailand) Co., Ltd.
(Chonburi, Thailand)
Processing equipment for transmission parts and machinery parts 483 Jan. 2016 Dec. 2016

Outlook for FY ending Mar. 2017

(in millions of JPY)
FY ending Mar. 2017
FY ended Mar. 2016
(Actual Results)
Rate of Change
Sales 135,000 134,191 0.6
Operating profit 3,400 3,220 5.6
Ordinary profit 3,200 2,366 35.2
Profit for the year attributable to owners of the parent 1,600 1,978 (19.1)

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