TOKAI RIKA CO., LTD. Business Report FY2006
Business Highlights
in millions of JPY | FY2006 | FY2005 | R.C.(%) | Factors |
Overall | ||||
Sales | 405,139 | 363,423 | 11.5 | Sales increased due to the Company developing as well as making sales promotions of its sophisticated components such as a smart keys and a steering switches. In addition, another contributing factor was the Company further expanding its business operations in the global market. |
Operating income | 24,899 | 19,795 | 25.8 | |
Ordinary profit | 26,500 | 21,671 | 22.3 | |
Current net income | 17,948 | 14,846 | 20.9 | |
Automotive component business | ||||
Sales | 398,372 | 356,825 | 11.6 | The segment saw an increase both in sales and profits as a result of the Company's vigorous efforts to expand sales of switches, seat belts, keys and locks, and shift levers. |
By Region
<Japan>
- Sales in Japan increased to 294,831 million yen (an 8.0% increase year-on-year) due to a strong growth
in sales of switches, keys and locks, seat belts, and shift levers, resulting from an increase in vehicles produced by
the Company's customers as well as to its efforts to further expand the sales of those products.
- Operating income increased 48.5% to 17,330 million yen, compared to the previous fiscal year. This increase is attributed
to greater revenues, the Company's efforts to streamline its business operations, and a weak-yen, despite negative factors
such as the soaring prices of raw materials impacting its revenue.
<North America>
- Sales in this region were 83,949 million yen (a 3.2% increase year-on-year).
- Operating income decreased 48.1% to 1,915 million yen, compared to the previous fiscal year, due to favorable currency
translation resulting from a strong Canadian dollar.
<Asia>
- Sales increased to 47,150 million yen (a 10.2% increase year-on-year), resulting from increased sales at the Company's
subsidiaries in China.
- In spite of greater overall revenues, the operating income decreased 15.9% to 4,460 million yen, compared to the pervious
fiscal year. This decrease stems from the Company's paying the initial start-up expenses connected with
the launch of its subsidiary in China, making a one-lump payment; and a decline in sales volume in the Taiwan market.
<Other regions>
- Sales increased to 28,047 million yen (a 65.3% increase year-on-year), resulting from increased sales at the Company's
subsidiary in the Czech Republic.
- Operating income was 976 million yen due to greater revenues.
Business objectives until 2015
1. To reduce the number of critical functional quality issues to zero
2. To earn 600 billion yen or more at the Company's consolidated sales
3. To sustain a ROE (Return on Equity) higher than 10%
R&D
in millions of JPY | FY2006 | FY2005 | FY2004 |
R&D | 17,734 | 17,820 | 16,836 |
Automotive component | 17,496 | 17,622 | 16,633 |
Achievements of R&D activities
The Company developed the following products in FY2006:
-Switch module: With various switch functions integrated in the center arm rest of the backseat, this switch module improved the level of comfort
-Paddle Switch: By leveraging its technology on magnesium die casting and upholstery such as leather coverings, the Company developed this switch mounted on steering wheels to improve the steering feel and the steering wheel texture
- Thin emergency key: A mechanical key for emergency use. This was developed to deal with rising needs for thin, card-shaped portable devices.
- Seat belt buckle with white lamp attached: This enhanced design and functionality
- Different types of lead-free connectors developed from the viewpoint of environmental protection
The Company also developed the following products as a result of its aggressive R&D activities in collaborations among industry, academia and government:
-Leveraging its micro-machining technology, the Company developed night illumination parts for switches. These consume only one tenth of the electric power that conventional light emitting devices consume.
- The Company developed basic software, which comes with a protective feature, for automotive control systems.
The Company announced a joint development with Matsumura Oil Research Corp. (Kobe City) of a photocatalytic disinfection apparatus for the cogeneration coolant water. As this eliminates use of chemicals, which had been inevitable for disinfection, cost and environmental burdens will be reduced. The company plans to complete introduction of the new apparatus to its headquarters plant within FY 2006, aiming to employ it at all other plants by the end of 2007. (From an article in the Nikkan Jidosha Shimbun on Aug. 29, 2006)
Licensing of technology from other companies (as of March 2007)
Company | Partner | Country | Outline of tie-ups | Contract period |
Tokai Rika | Nikon | Japan | Licensing use of the patent on EC anti-glare mirrors | 2000.10.01- the patent expiry date |
TOTO Frontier Research |
Japan | Agreement to patent use for hydrophilic mirror |
1999.08.01- |
|
Toyota | Japan | Agreement to development and sales of overseas CA products for Toyota Motor | 2003.07.01- 2007.06.30 |
|
Donnelly Corporation |
U.S.A. | Licensing of the patent on automotive mirrors | 2000.04.07 -the patent expiry date | |
Mazda | Japan | Agreement to joint patent filing for steering lock device | 2005.07.28 -the patent expiry date | |
TAC Mfg., Co., Ltd. | Miroku Technowood | Japan | Licensing of the patent on automobile steering wheels | 2002.06.05, for five years from the date of start of production or until the patent expiration date (whichever comes later). |
Licensing use of the technology on the shift lever knobs for automobiles | 2005.05.23, for three years from the date of start of production |
Licensing of technology to other companies (as of March 2007)
Partner | Country | Outline of tie-ups | Contract period |
Shinchang Electrics Co., Ltd. |
Korea | Licensing use of the patent and technology on switches and steering locks for automobiles | 1978.09.02 - 2007.12.31 |
Licensing use of the patent and know-how on switches for automobiles | Apr. 2, 2001, for 10 years from provision of technology data or until the patent expiry date (whichever comes later) | ||
Licensing use of the patent and technology on steering locks and slots for automobiles | 2006.02.21, for 10 years from the time the technology is provided or until the date the patent expires expiry date (whichever comes later). | ||
Samsong Industries, Ltd. | Korea | Licensing use of the patent and know-how on seat belts for automobiles | 1998.04.01 - the patent expiry date |
Nov. 19, 2003, for 10 years from the the time the agreement was made, or until the patent expiration date (whichever comes later) | |||
2004.02.17, for 10 years from the time the agreement was made, or until the date the patent expires (whichever comes later). | |||
Quality Safety Systems Company | Canada | Licensing use of the patent and technology on seat belts for automobiles | 2005.01.01 - 2007.12.31 |
TAC Manufacturing, Inc. | U.S.A. | Licensing use of the patent and technology on steering wheels, key sets, and shift levers for automobiles | 1998.01.01 - 2007.12.31 |
TRMI, Inc. | U.S.A. | Licensing use of the patent and technology on key switches and key sets for automobiles | 1998.01.01 - 2007.12.31 |
TRIN, Inc. | U.S.A. | Licensing use of the patent and technology on switches for automobiles | 1998.01.01 - 2007.12.31 |
TRB Limited | U.K. | Licensing use of the patent and technology on switches for automobiles | 1999.12.01 - 2007.11.30 |
Tokai Rika (Thailand) Co., Ltd. | Thailand | Licensing use of the patent and technology on key sets for automobiles | 2000.03.01 - 2008.02.29 |
TRP, Inc. | Philippines | Licensing use of the patent and technology on switches for automobiles | 1996.03.05 - 2008.03.04 |
Thai Seat Belt Co., Ltd. | Thailand | Licensing use of the patent and technology on seat belts for automobiles | 1994.06.02 - 2008.06.01 |
Mindarika Private Limited | India | Licensing use of the patent and technology on switches for automobiles | 2003.10.03 - 2013.10.02 |
Licensing use of the patent and technology on outer rear view mirrors in mirror assemblies for the automobiles | 2006.03.22 - 2016.03.21 | ||
Rica Auto Parts Co,. Ltd. | Taiwan | Licensing use of the patent and technology on key switches and key sets for automobiles | 2005.01.01 - 2007.12.31 |
Tianjin Tokairika Automotive Parts Co,. Ltd. | China | Licensing use of the patent and technology on switches for automobiles | 2005.01.01 - 2010.12.31 |
Wuxi Risho Technology Co., Ltd. | China | Licensing use of the patent and technology on seat belts for automobiles | 2005.01.01 - 2010.12.31 |
Foshan Tokairika Automotive Parts Co,. Ltd. | China | Licensing use of the patent and know-how on switches, key sets and shift-levers for automobiles | 2006.08.01 - 2016.07.31 |
TRCZ s.r.o | Czech Republic | Licensing use of the patent and technology on switches and seat belts for automobiles | 2003.04.29 - 2008.04.28 |
Ashimori Industry Co., Ltd. | Japan | Licensing use of the patent on seat belts for automobiles | 2007.02.02 - the patent expiry date |
Licensing use of the international patent on seat belts for automobiles | 2007.02.02 - the patent expiry date |
Investment Activities
in millions of JPY | FY2006 | FY2005 | FY2004 |
Investment | 20,368 | 21,304 | 19,320 |
<Investments in FY2006>
The Company invested on its domestic and overseas manufacturing facilities to increase its production capacity and respond to switching over to new products. Moreover, the Company strengthened its R&D and manufacturing structure by starting construction of its electric-wave experimental facility, distribution center and multi-level car parking facility at the headquarters plant; and by constructing a heat treatment facility and plating building at the Toyota plant.
The planned capital investment for FY2007
*Approximately 21,000 million JPY is planned for FY2007 mainly for the automotive parts business.
Company Location |
Purpose | Planned total investment (million JPY) | Starting | Planned completion |
TOKAI RIKA CO., LTD. | ||||
Head Office Plant (Aichi Pref., Japan) |
Parts production, assembly, test facilities for electronics products, switches etc. | 5,000 | Apr. 2007 | Mar. 2008 |
Nishibiwajima Plant (Aichi Pref., Japan) |
Test, assembly facilities for switches etc. | 100 | Apr. 2007 | Mar. 2008 |
Toyota Plant (Aichi Pref., Japan) |
Parts production, processing, assembly facilities for seat belts, decorating products | 2,500 | Apr. 2007 | Mar. 2008 |
Otowa Plant, Hagi Plant (Aichi Pref., Japan) |
Parts production, assembly facilities for key locks, steering wheels etc. | 4,500 | Apr. 2007 | Mar. 2008 |
Leased asset to Ena Tokai Rika Co., Ltd. (Gifu Pref., Japan) |
Parts production facilities for shift levers, mirrors etc. | 900 | Apr. 2007 | Mar. 2008 |
Consolidated subsidiaries | ||||
Foshan Tokairika Automotive Parts Co., Ltd. ( Foshan, China) |
Plant construction, manufacturing facilities | 2,000 | Apr. 2007 | Mar. 2008 |
Tokai Rika Thailand Co., Ltd. (Chonburi, Thailand) |
Plant construction | 1,000 | Apr. 2007 | Mar. 2008 |
Tianjin Tokairika Automotive Parts Co., Ltd. (Tianjin, China) |
Plant construction | 1,000 | Jan. 2007 | Dec. 2007 |