TOKAI RIKA CO., LTD. Business Report FY2008
Business Highlights
Financial overview | ( in millions of JPY ) |
FY2008 | FY2007 | R.C.(%) | Factors | |
Overall | ||||
Sales | 337,417 | 440,001 | (23.3) | - Sales and income decreased, affected by the decline in automobile production and a strong yen. |
Operating income | 811 | 33,376 | (97.6) | |
Ordinary profit | 1,020 | 34,414 | (97.0) | |
Current net income | 1,063 | 21,282 | (95.0) | |
Automotive component business | ||||
Sales | 330,409 | 434,574 | (24.0) | - Overall sales decreased due to a decline in the sales of switches, seat belts, key locks, shift levers, etc. |
Overseas business
Strengthening development and production structure
- The Company improved its product supply system by establishing a new
company in southern India and constructing an additional plant building
in Brazil.
Business objectives until 2015 (TOKAI RIKA GROUP
2015 VISION)
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
R&D expenses | ( in millions of JPY ) |
FY2008 | FY2007 | FY2006 | |
R&D | 17,907 | 18,324 | 17,734 |
Automotive component | 17,818 | 18,106 | 17,496 |
R&D achievements
The Company developed the following new products in FY2008:
- Lightweight pretensioner belt for rear seats that contributes to reducing
CO2 emissions.
- "Mirror ECU" that has succeeded in reducing size, weight and
cost of the product by using custom IC.
- Module switch which consolidates the mirror switch and wind regulator
switch with indirect lighting added to the operating portion for luxury
cars
- Steering switch with toggle multifunction switch for luxury cars
- "Key free ECU with built-in tuner" that succeeded in reducing
size, weight and cost as a system
- Small connector for surface mounting
Elemental technology:
- The Company developed a technology that protects products from humidity
and scratches, while maintaining the texture and touch of natural wood.
This product works by impregnating a special resin into wood (resin impregnation),
jointly with Micro Tech Wood in Nankoku city, and Kochi Prefectural Industrial
Technology Center in Kochi city, both in Kochi prefecture. The Company
uses the technology for steering wheels and shift lever knobs. These products
are the world's first automobile interior parts that are made by this
technology.
Licensing of technology from other companies (As of March 2009)
Company | Partner | Country | Outline of tie-ups | Contract period |
Tokai Rika | TOTO Frontier Research |
Japan | Agreement to patent use for hydrophilic mirror | 1999.08.01- 2009.07.31 |
Realize | Japan | Patent transfer agreement for transcription method of pattern and transcription sheet | 2009.03.09- Date of payment completion |
|
Donnelly Corporation |
USA | Licensing of patent on automotive mirrors | 2000.04.07 -the patent expiry date | |
Autoliv Development AB |
Sweden | Licensing of patent on automotive seatbelts | 2007.12.01- - the patent expiry date |
|
Visiocorp Patents S.A.R.L | Luxembourg | Licensing of patent on automotive mirrors | 2009.01.01- the patent expiry date |
|
TRW Vehicle Safety Systems Inc. |
USA | Licensing of patent on automotive seatbelts | 2008.01.01- the patent expiry date |
|
TAC Manufacturing (USA) | Miroku Technowood | Japan | Licensing of 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 technology on shift lever knobs for automobiles | 2005.05.23, for three years from the date of start of production | |||
Thai Seat Belt (Thailand) | Toyota Boshoku | Japan | License to use know-how and patents on automobile seat belt | 1994.06.02- 2010.06.01 |
Licensing of technology to other companies (As of March 2009)
Partner | Country | Outline of tie-ups | Contract period |
Shinchang Electrics Co., Ltd. |
Korea | Licensing use of patent and technology on switches and steering locks for automobiles | 1978.09.02 - 2009.12.31 |
Licensing use of 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 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). | ||
Thai Seat Belt Co., Ltd. | Thailand | Licensing use of patent and technology on seat belts for automobiles | 1994.06.02 - 2010.06.01 |
TRP, Inc. | Philippines | Licensing use of patent and technology on switches for automobiles | 1996.03.05 - 2010.03.04 |
TAC Manufacturing, Inc. | USA | Licensing use of patent and technology on steering wheels, key sets, and shift levers for automobiles | 1998.01.01 - 2009.12.31 |
TRIN, Inc. | USA | Licensing use of the patent and technology on switches for automobiles | 1998.01.01 - 2009.12.31 |
TRMI, Inc. | USA | Licensing use of patent and technology on key switches and key sets for automobiles | 1998.01.01 - 2009.12.31 |
Samsong Industries, Ltd. | Korea | Licensing use of 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). | |||
TRB Limited | UK | Licensing use of patent and technology on switches for automobiles | 1999.12.01 - 2009.11.30 |
Tokai Rika (Thailand) Co., Ltd. | Thailand | Licensing use of patent and technology on key sets for automobiles | 2000.03.01 - 2010.02.28 |
TRCZ s.r.o | Czech Republic | Licensing use of patent and technology on switches and seat belts for automobiles | 2003.04.29 - 2010.04.28 |
Mindarika Private Limited | India | Licensing use of patent and technology on switches for automobiles | 2003.10.03 - 2013.10.02 |
Licensing use of 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 patent and technology on child safety seats |
2004.04.01 - for 10 years from the contract start date, or until the patent expiration date (whichever comes later) |
Licensing use of patent and technology on key switches and key sets for automobiles | 2005.01.01 - 2009.12.31 | ||
Quality Safety Systems Company | Canada | Licensing use of patent and technology on seat belts for automobiles | 2005.01.01 - 2009.12.31 |
Tianjin Tokairika Automotive Parts CO,. Ltd. | China | Licensing use of patent and technology on switches for automobiles | 2005.01.01 - 2010.12.31 |
Wuxi Risho Technology Co., Ltd. | China | Licensing use of patent and technology on seat belts for automobiles | 2005.01.01 - 2010.12.31 |
Foshan Tokairika Automotive Parts CO,. Ltd. | China | Licensing use of patent and know-how on switches, key sets and shift-levers for automobiles | 2006.08.01 - 2016.07.31 |
Ashimori Industry Co., Ltd. | Japan | Licensing use of patent on seat belts for automobiles | 2007.02.02 - the patent expiry date |
Licensing use of international patent on seat belts for automobiles | 2007.02.02 - the patent expiry date |
Investment Activities
Capital Expenditure | ( in millions of JPY ) |
FY2008 | FY2007 | FY2006 | |
Investment | 15,852 | 21,189 | 20,368 |
Investments in overseas facilities
<India>
- The Company announced plans to establish a new company in Bangalore,
Karnataka, southern India and to build its second plant in India. The
new plant is scheduled to start operations in Nov. 2010, aimed to achieve
approx. three billion yen sales in 2013. In September 2008, Tokai Rika
Minda India Private Ltd. will be formed and invest approx. 2.4 billion
yen to build a new plant for manufacturing switch parts, seatbelts and
security system parts including keys. The Company will make a 70% investment
and Minda Investments Ltd., a local firm, will make a 30% investment of
a 500 million rupee (approx. 1.3 billion yen) capital. (From an article
in the Nikkan Jidosha Shimbun on Jun. 27, 2008)
<Thailand, China and USA>
- In addition to establishing a new magnesium casting plant at Tokai Rika
Thailand Co., Ltd. (TRT), which produces key locks, the Company will expand
its facilities at both its switch plant in Foshan and seatbelt plant in
Wuxi, China.
- During this fiscal year, the Company will also boost its production
capacity at TAC Manufacturing Inc. (TAC) which makes shift levers and
other components in North America.
- The Group's total capital spending in fiscal year 2008 is thereby expected
to reach a record 25 billion yen. (From an article in the Nikkan Jidosha
Shimbun on Apr. 17, 2008)
Investment projects for FY2008
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. | 3,000 | Apr., 2009 | Mar., 2010 |
Nishibiwajima Plant (Aichi Pref., Japan) |
Test, assembly facilities for switches etc. | 250 | Apr., 2009 | Mar., 2010 |
Toyota Plant (Aichi Pref., Japan) |
Parts production, processing, assembly facilities for seat belts, decorating products | 450 | Apr., 2009 | Mar., 2010 |
Otowa Plant, Hagi Plant (Aichi Pref., Japan) |
Parts production, assembly facilities for key locks, steering wheels etc. | 1,300 | Apr., 2009 | Mar., 2010 |
Loan assets for Ena Tokai Rika Co., Ltd. (Gifu Pref., Japan) |
Parts production, assembly facilities for mirrors | 300 | Apr., 2009 | Mar., 2010 |
Consolidated subsidiaries | ||||
Mindarika Private Ltd. (Bangalore, India) |
Construction of plant |
800 | Feb., 2009 | Feb., 2010 |
TRBR Industria e Comercio Ltda (Sao Paulo, Brazil) |
Construction of plant |
700 | Mar., 2009 | Mar., 2010 |
Tokai Rika (Thailand) Co., Ltd. (Rayong, Thailand) |
Facilities to produce new products, etc. | 600 | Jan., 2009 | Jan., 2010 |
Foshan Tokairika Automotive Parts Co.,
Ltd. (Foshan, China) |
Construction of additional plant building,
facilities to produce new products, etc. |
600 | Dec., 2008 | Dec., 2009 |