Business Highlights

Financial Overview

(in million of JPY)
  FY2009 FY2008 Rate of Change
Sales 350,914 385,499 (9.0) -Sales were on a track to recovery in the first half of FY2009. In the second half, sales recovered rapidly to surpass the previous year's 2nd-half level. However, total sales for the entire fiscal year still were lower year-on-year.
Operating income 14,654 2,845 415.1 -Income increased partly as a result of company-wide efforts to reduce fixed costs and other costs.
Ordinary income 15,672 369 4,147.2
Net income 6,942 (7,319) -

Sales and Highlights by Product

Seat belts
-Sales of seat belts decreased for the year in Japan, the U.S.A., and Europe. This was in spite of sales in the first half of FY2009 rising above the low level of sales generated during the second-half of FY2008 during the midst of the economic crisis; and in spite of a steady stream of sales coming in during the second half of FY2009. In Asia, income increased, supported by growing automotive sales in China. In the end, however, total sales of belts for the fiscal year was 106 billion 435 million yen, a 10.2% decrease compared to that of the previous fiscal year.

Air bags
-Income increased in Asia; and in the Americas, where the worst of the downturn was behind, income recovered substantially. However, in Japan and Europe, income decreased as the impact of the economic slowdown was still evident. As a result, sales of air bags for the fiscal year were 160 billion 132 million yen, a 5.6% decrease compared to sales of the previous fiscal year.

-Sales of steering systems in both FY2008 and FY2009 were the same; however, sales of trim decreased year-on-year. As a result, sales of "Other" products were 84 billion 346 million yen for FY2009, a 13.4% decrease compared to sales of the previous fiscal year.


-The Company reviewed its global production capabilities. Following the closure of one plant in Mexico in fiscal year 2008, the Company decided to close two plants in Mexico and one plant in Europe in fiscal year 2009. (From materials for results briefing dated May 15, 2009)

Regarding Accounts Receivable from the GM Group

-The Company said it is anticipating a delay in debt collection or even failure to receive payment from GM, which filed for bankruptcy protection under Chapter 11 of the U.S. federal bankruptcy code. Its amount in credit to GM is 7.26 million dollars (approximately 700 million yen). The Company, while watching GM's restructuring plan and the auto supplier assistance program by the U.S. government, is trying to safeguard its claims. Its account receivables for the GM group including Opel stand at 2.65 billion yen. (From an article in the Nikkan Jidosha Shimbun on June 3, 2009)

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


R&D Expenditure

(in million of JPY)
  FY2009 FY2008 FY2007
Overall 14,158 18,781 22,643

R&D Structure

-The Company has R&D bases in three regions: Japan (Takata Corporation), US (TK Holdings Inc.) and Europe (Takata-Petri AG).


Research and Development Activities

-The Company conducted investigation, research and development activities as well as development of devices that consist of protection systems including inflators and electronics, using different approaches for collision configuration or system function, such as passenger protection systems against frontal collision, side collision and rollover, pedestrian protection systems, motor cycle passenger protection systems, collision avoidance systems and driver support systems. The Company also conducted research and development activities on child restraint systems.

Product Development

Lane Departure Warning (LDW) system
-Freescale Semiconductor Japan Ltd. announced on Sep. 9 that it has provided the Company, an automotive safety system supplier, with its high-performance integrated chips for the next-generation Lane Departure Warning (LDW) system The Company recently launched. This LDW system was developed on the basis that it should be used by heavy-duty commercial trucks. The imaging technology of its monocular camera monitors the lane mark and alerts the driver with alarms when his/her car almost departs from its lane or when an abnormal driving behavior is detected even within the lane. Freescale Semiconductor and the Company jointly developed this monocular camera system, in which Freescale Semiconductor's 16-Bit S12 microcontroller unit and analog output driver IC are mounted. (From an article in the Nikkan Jidosha Shimbun on Sept. 10, 2009)

Investment Activities

Capital Expenditure

(in million of JPY)
  FY2009 FY2008 FY2007
Overall 10,221 19,129 36,226

-The Company made capital investments mainly to construct new plants, one in Chennai and the other in Neemrana near Delhi, in India. In addition, the Company also spent to install machinery and equipment at these plants. Construction of the plants had been continuing from the previous fiscal year.
-The Company incurred a loss of 328 million yen to retire equipment and machinery and to replace and upgrade software.


Constructing New Facilities

-The total capital investment planned for fiscal year 2010, ending in March 2011, was 200 trillion yen.
Plant Name
Equipment to be installed Estimated amount of investment
(in million JPY)
From To
TK Holdings Inc.
(Auburn Hills, MI, USA)
Servo Sled
Bump tester





Takata (Shanghai) Automotive Component Co., Ltd.
(Shanghai, China)
Equipment to produce seat belts, airbags and steering systems 1,053





Takata India Private Limited (India) Incorporated
(Haryana, India)
Equipment to produce seat belts, airbags and steering systems 3,500