Takata Corporation Business Report FY ended Mar. 2013

Business Highlights

Financial Overview

(in million of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 Rate of Change
Sales 415,521 382,737 8.6 1)
Operating income 14,493 13,618 6.4 -
Ordinary income 17,050 13,499 26.3
Net income (21,122) 11,937 - -The Company recorded an extraordinary loss to set up product-warranty reserves in line with a product recalls at its customers.

- Sales in Japan increased slightly year-on-year. Sales in the first half recovered from the decrease in production that was caused by the Great East Japan Earthquake during the previous fiscal year; however, vehicle demand fell in the second half after eco-car sales incentives ended.
- Sales increased in the U.S.A. Year-on-year increases in new-vehicle production levels grew by two-digit figures, as in the last fiscal year.
-Sales in Europe fell by a small margin. Even though new-vehicles production levels decreased within Europe, the Company's sales were supported by a greater volume of products sold in Russia after its plant in the country launched commercial production.


- The Company has acquired Germany-based SDI Molan GmbH & Co. KG, effective November 30, 2012. SDI Molan manufactures pyro-electric initiators and micro gas generators for passive safety systems, such as airbags and seat belt pretensioners and others. (From a press release on November 30, 2012)

Develoment of Manufacturing in Emerging Countries

Region or Country Event Date Development in manufacturing
South America Uruguay plant: Fully operational 2013 Production of airbags cushions
Asia Indonesia plant: Fully operational 2012 Production of seat belts, airbags and steering wheels
Russia Russia plant: Fully operational 2012 Production of seat belts, airbags and steering wheels
Germany Acquisition of SDI Molan Jan. 2013 Production of initiators for airbags, pretensioners for seat belts
Europe and USA Acquisition of BAE subsidiaries Mar. 2012 Production of seat belts for racing cars, and passenger safety equipment for military vehicles
Korea Tie-up with Hyundai Mobis Nov. 2011 Motorized seat belts technology alliance. Preparing to install on South Korean automobiles.


- The Company announced that Takata Automotive Electronics in Shanghai, China, was given Ford Motor Company's "Gold" World of Excellence Award for its restraints electronics. The Company has also being named General Motors Global Supplier of the Year for 2011. This is the second year in a row the Company received the GM award. (From a press release on June 21, 2012)

Outlook for FY ending Mar., 2014

(in millions of JPY)
  FY ending Mar. 31, 2014
FY ending Mar. 31, 2013
(Actual Results)
Rate of Change
Sales 460,000 415,521 10.7
Operating income 20,000 14,493 38.0
Ordinary income 19,000 17,050 11.4
Net income 13,000 (21,122) -

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


R&D Expenditure

(in million of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Japan 3,140 5,032 3,924
Americas 6,991 6,576 5,567
Europe 7,461 5,721 6,121
Asia 1,916 1,297 859
Corporate 42 (366) (414)
Overall 19,552 18,261 16,058
Ratio in Sales (%) 4.8 4.7 4.2

-R&D expenses for FY ending Mar. 31, 2014 are forecast to be 220 million yen, a 12.8% year-on-year increase, which would be the equivalent of 4.8% of total sales.

R&D Structure

-R&D centers are located in Japan (Shiga Pref.), North America (Detroit) and Europe (Berlin).

- The Company announced that it has established a new Global Engineering Service Center (GESC) at the L&T Technology Services, based in Chennai, India. The new center will enhance engineering research and development capabilities for next-generation occupant safety and protection systems for automobiles. The Company will work on the expansion and optimization projects for the GESC facility over the next five years. (From a press release on January 25, 2013)

-Product realization activity is being performed by each segment including Asia.


Introduction of a new servo sled track with pitch and pulse capabilities

-The Company announced that it held a ceremony for the completion of construction of the new No.3 Evaluation Building at its Echigawa Plant in Shiga Prefecture, Japan. The total floor area of the new facility is approximately 6,500 square meters. The facility is due to start operations in early May 2013 and will introduce a new servo sled track with pitch and pulse capabilities. The Company currently operates twelve crash simulation sleds worldwide (four in Japan, four in Germany, two in the U.S., and one each in China and South Korea), which are able to produce results mimicking an actual vehicle collision. This latest testing apparatus is capable of reproducing the lift of a vehicle's rear in the event of a frontal collision ("pitching"), and has already been introduced in Germany and the U.S., making it the third of its kind at the Company. (From a press release on February 4, 2013)

Product Development

Flexible Venting Technology (FVT) Airbags
-The Company announced that it has commercialized a new airbag system incorporating the Company's flexible venting technology (FVT). The new driver seat airbag has a vent hole cover on the exhaust vent located on the back side of the airbag. When the airbag is inflated and hits the occupant's body, the cover on the vent hole opens to discharge some gas, releasing excessive pressure in the airbag. The flexible venting technology can optimally absorb the impact according to the driver's physical frame. The world's first FVT airbag system, which meets the safety standards in the U.S., is already supplied to two U.S. automakers. The Company is poised to accelerate sales activities for the new product, underlining its simple design structure and cost-saving attribute. (From an article in the Nikkan Jidosha Shimbun on Mar. 7, 2013)

The World's first Front Center Airbags
- The Company, together with GM, an OEM based in the U.S.A., jointly developed and commercialized the world's first front center airbags. GM launched this new product on several 2013 model vehicles. From the passenger's perspective, there are two possible types of side collisions. One occurs close to the occupant (the near side). The other happens on the opposite side from the occupant (the far side). Current available devices consider only near side scenarios. However, to better protect passengers from collisions from both sides, the Company's front center airbags inflate between the left and right seats. The Company was awarded the 2013 Best New Technology Award by the Automotive Journalists Association of Canada (AJAC) for this new product.

Investment Activities

Capital Expenditure

(in million of JPY)
  FY ended Mar. 31, 2013 FY ended Mar. 31, 2012 FY ended Mar. 31, 2011
Japan 3,447 3,406 1,529
Americas 7,572 6,329 6,132
Europe 6,448 6,069 4,465
Asia 3,116 3,618 3,584
Overall 20,584 19,422 15,712

-The Company invested in building a new plant in Thailand, which is increasingly becoming the automotive production center of the developing countries in Asia. It also invested to install new production lines and increase facilities in each region, creating a production structure capable of responding to growing demand in every region.

-The breakdown of capital-investment spending by some product sectors in FY ending Mar. 31, 2014 are planned as follows:

  • Airbags: 25%
  • Steering wheels: 23%
  • Seat belts: 21%

Planned capital investments

(As of Mar. 31, 2013)
Plant Name
Equipment to be installed Estimated amount of investment
(in million JPY)
From To
Takata India Private Limited
(Chennai and Neemrana, India)
Equipment to produce and evaluate seat belts, airbags and steering systems 4,222 Jan.
Takata-TOA Co., Ltd.
(Bangkok, Thailand)
Equipment to produce steering systems 1,453  Jun.