Takata Corporation Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in million of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 Rate of Change
Sales 556,998 415,521 34.0 -Sales increased due to the double-digit growth in all regional segments and favorable currency translation resulting from the low evaluation of the yen.
Operating income 26,275 14,493 81.3 -
Ordinary income 25,656 17,050 50.5
Net income 11,144 (21,122) - -
Sales by Segment
Japan 73,485 64,716 13.5 -Vehicle production decreased during the first half of the year. The market showed signs of recovery in the second half of the year due both to the economic upturn and significant growth in demand before the consumption tax hike in April.
Americas 227,804 166,642 36.7 -Vehicle production and sales increased as the economy picked up. Weaker yen also contributed to boosting revenue in the region. 
Europe 148,587 108,590 36.8 -Vehicle production in each country showed signs of recovery during the second half of the year. Weaker yen also contributed to boosting revenue in the region. 
Asia 107,120 75,752 41.4 -Impacts of slowing vehicle production in Thailand and India were more than offset by the effects of significant production increases in China and other Asian countries.
-The effects of weakened yen also contributed to boosting revenue in the region. 

New Company

-The Company has established a subsidiary Takata Safety Systems Hungary Kft. in Hungary. The subsidiary will establish new plant to manufacture airbags and its related components for OEM manufactures in Europe. The plant will commence its operations from October 2014 and create up to 1,000 jobs.

Outlook for FY ending Mar. 2015

(in million JPY)
  FY ending Mar. 31, 2015
FY ended Mar. 31, 2014
(Actual Results)
Rate of Change
Sales 560,000 556,998 0.5
Operating income 25,000 26,275 (4.9)
Ordinary income 24,500 25,656 (4.5)
Net income 16,000 11,144 43.6

-Sales forecast for each market:
  • Japan: Sales are forecast to decrease 9.2 percent year-on-year due to a projected fall in vehicle sales after the tax hike
  • Asia: Sales in Thailand are projected to drop 15.8 percent year-on-year due to the effects of political instability, while those in China are expected to increase 10.5 percent year-on-year.
  • Americas: Sales in North America are expected to gain 1.2 percent year-on-year, while sales in South America are forecast to fall 10.3 percent year-on-year. In South America, materials costs are expected to remain high due to a decrease in demand and the depreciation of the Brazilian Real.
  • Europe: Sales are projected to edge up 0.4 percent year-on-year
>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)


R&D Expenditure

(in million of JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Japan 2,470 3,140 5,032
Americas 8,991 6,991 6,576
Europe 9,186 7,461 5,721
Asia 2,302 1,916 1,297
Corporate 125 42 (366)
Overall 23,075 19,552 18,261
Ratio in Sales (%) 4.1 4.8 4.7

-In the fiscal year ending March 2015, the Company plans to spend JPY 26,000 million on R&D activities, which is 12.6 percent larger than the amount spent during FY ended March 2014. R&D expenses are expected to account for 4.6 percent of the Company's sales.

Break down by product
  • Airbags: 43%
  • Seat belts: 25%
  • Other: 32%
Break down by geographic area
  • Europe: 38%
  • Americas: 37%
  • Japan: 13%
  • Asia: 12%

R&D Structure

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

-The Company is building new R&D center in Shanghai, China, expecting to complete in December 2014.


Product Development

Curtain airbags featuring a hollow beam structure
-The Company has begun production of world's first D-shape curtain airbags featuring a hollow beam structure. The airbags have already been chosen by a Japanese automaker for use in export models that are built in Japan and sold in North America. They provide higher occupant protection in an accident by becoming twice as thick as conventional airbags when inflated, while the gas generators perform at the same level as they do for existing airbags. Curtain airbags are mounted inside the headliner above the side windows. They are inflated during side collisions, covering the entire side windows from front to rear, in order to protect passengers' heads. (From an article in the Nikkan Jidosha Shimbun on July 3, 2013)

Front Center Airbag (FCAB)
-The Company and General Motors jointly developed a front center airbag, an inflatable restraint designed to help protect drivers and front passengers in far-side impact crashes. This front center air bag deploys from the center of the driver's seat to act as an energy absorbing cushion between driver and front passenger in side crashes. The airbag is expected to minimize damages caused when the occupants' heads or upper bodies hit each other or hit the other side of interior during a side collision. The new airbag is used on General Motors' vehicles, initially on 2013 models. The center airbag received the 2013 Innovation Partnership prize in the PACE Award.

Active Steering Wheel (ASTW)
-The steering wheel improves driving safety by controlling the steering wheel angle according to vehicle speeds. The new steering wheel is significantly smaller than conventional products. The Company already completed the commercial development stage and plans to mass-produce the active steering wheel, starting in 2015. 

Alcohol Detection System (ADS)
-The Company developed a driver blood-alcohol detection system jointly with the U.S. National Highway Traffic Safety Administration (NHTSA) and the Automotive Coalition of Traffic Safety (ACTS). The system prevents the engine from starting when alcohol is detected. The Company already completed the basic development stage, and is ready to develop in-vehicle products.

Hands-on-Wheel sensing system (HOW)
-A hands-on-wheel sensing system is a driver-focused safety support system. Sensors built into the steering wheel rim detect the driver's hands on the steering wheel, and sends alerts or automatically controls braking or acceleration when necessary. The Company already completed the basic development stage, and is preparing for mass-production.

Driver Monitoring System (DMS)
-A camera mounted on the steering wheel monitors driver alertness based on facial movements, and sends the driver a warning if necessary. The Company already completed the basic development stage, and preparing for mass-production.

Investment Activities

Capital Expenditure

(in million JPY)
  FY ended Mar. 31, 2014 FY ended Mar. 31, 2013 FY ended Mar. 31, 2012
Japan 1,786 3,447 3,406
Americas 7,885 7,572 6,329
Europe 5,005 6,448 6,069
Asia 3,768 3,116 3,618
Total 18,445 20,584 19,422

-During FY ended Mar. 2014, the Company invested in building a new plant in third plant in Jingzhou China. 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.

Investment Outside Japan

-The Company announced that Takata Safety Systems Hungary Kft. has held a groundbreaking ceremony for the new 50,000 square meter facility in Miskolc. With a workforce of nearly 1,000 employees, the new facility will produce complete airbag modules and airbag components for car manufacturers across Europe. Operations are scheduled to start in October, 2014. (From a press release on March 12, 2014)

-The Company announced that it has opened a new plant in Ulyanovsk, Russia. The plant has already started supplying seat belts, air bags, and steering wheels to Russian OEMs, including AvtoVAZ, Sollers and GAZ. Delivery to other European OEMs and to Asian OEMs is expected to begin soon. (From a press release on September 5, 2013)

-The Company is constructing a new plant in Jingzhou, Hubei Province in order to meet increasing demand from the growing automotive market. The new plant will become the Company's third production base in China. Its operations are scheduled to begin in April 2015.

-The Company plans to install new equipment to expand production. 

Planned capital investments

(As of Mar. 31, 2014)
Plant Name
Equipment to be installed Estimated amount of investment
(in million JPY)
From To
Takata Safety Systems Hungary Kft.
(Miskolc, Hungary)
Equipment to produce airbags 9,220 Nov. 2013 Apr. 2016
Takata (Jingzhou) Automotive Component Co., Ltd.
(Hubei, China)
Equipment to produce seat belts, airbags and steering systems 2,647 Dec. 2013 Mar. 2015
Takata Shanghai Vehicle Safety System Technical Center Co., Ltd.
(Shanghai, China)
Equipment to test SLED collision 1,307 July 2013 Dec. 2014