Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	331,014	337,417	(1.9)	-
Operating income	18,032	811	2,123.4	-Sales and income increased substantially as a result of the Company's continuous efforts to streamline all aspects of management.
Ordinary profit	20,372	1,020	1,897.3
Current net income	12,603	1,063	1,085.6
Automotive component business
Sales	324,438	330,409	(1.8)	-Sales decreased due to a decline in sales of key locks and seat belts.

 

Developments Outside Japan

<China>
- The Company has revived its program to raise the production capacity of Foshan Tokairika Automotive Parts Co., Ltd., its plant manufacturing switches and key sets in China. The capacity will be raised by approx. 50%. Construction of the plant building and installation of facilities are scheduled for completion by the end of 2010. Operations are expected to commence in the spring of 2011. The Company thus aims to respond to the growing vehicle production by its major client, Toyota Motor Corp. Foshan Tokairika is one of the Group's three subsidiaries in China. It was established in 2004 in Foshan, Guangdong, China. (From an article in the Nikkan Jidosha Shimbun on Feb. 2, 2010)

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

 

Outlook for FY2010

Projected Sales by Product

(in millions of JPY)

Product	Projected sales for fiscal year 2010 ending in March 2011	Actual sales for fiscal year 2009 (ended in March 2010)	Percentage of increase (decrease)
Switches	126,100	124,987	0.9
Seatbelt	71,000	69,930	1.5
Key lock	60,200	60,270	(0.1)
Shift lever	29,600	27,534	7.5
Steering wheel	11,200	11,724	(4.5)
Automotive mirror	9,900	10,838	(8.7)
Accessories	4,200	4,199	0.0
Other	14,900	14,953	(0.4)
Total for automotive parts	327,400	331,438	(1.2)
General electric components and other	5,500	6,576	(16.4)
Total	333,000	331,014	0.6

 

Projected Sales by Region

(in millions of JPY)

Region	Projected sales for fiscal year 2010 ending in March 2011	Actual sales for fiscal year 2009 (ended in March 2010)	Percentage of increase (decrease)
Japan	208,600	211,148	(1.2)
North America	56,200	57,392	(2.1)
Asia	52,400	46,411	12.9
Other regions	15,800	16,062	(1.6)
Total	333,000	331,014	0.6

 

Projected Sales by Customer

(in millions of JPY)

Customer	Projected sales for fiscal year 2010 ending in March 2011	Actual sales for fiscal year 2009 (ended in March 2010)	Percentage of increase (decrease)
Toyota	122,900	123,240	(0.3)
Subsidiaries of Toyota outside Japan	98,800	95,142	3.8
Affiliates of Toyota	45,900	46,843	(2.0)
Ford and GM	7,900	7,434	6.3
Suzuki	7,100	7,849	(9.5)
Mitsubishi Motor	7,000	6,859	2.1
Fuji Heavy Industries	6,900	6,720	2.7
Mazda	5,900	6,135	(3.8)
Nissan	4,800	4,908	(2.2)
Isuzu	3,600	3,215	12.0
Other	21,500	22,662	(5.1)
Total	333,000	331,014	0.6

R&D expenses

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	16,607	17,907	18,324
Automotive component	16,522	17,818	18,106

 

R&D Achievements

-The Company promoted the development of steering switches and remote-control panels that work with displays. Displays are expected to increase sales in line with an increase in their range of functions.  

-The Company worked to increase the variety of its security system products, aiming to respond to increased sales of smart key systems and shift-by-wire shift levers such as those equipped in the Prius.

 

Elemental technology
-The Company developed a new wood grain steering wheel and automatic shift knob jointly with Miroku Techno Wood Co., Ltd. based in Kochi Prefecture and Kochi Prefectural Industrial Technology Center, the company announced on April 16. The new products are installed on the new Toyota Crown Majesta. Resin impregnation technique, which hardens wood by impregnation with resin material, is used to protect the products from moisture and scratch, while maintaining the feeling and touch of natural wood. This technology has been applied to automotive interior parts for the first time in the world. By combining long-standing craftsmanship and the state of the art technology, the new steering wheel and shift knob retain an original solid feeling of wood with an uneven surface. (From an article in the Nikkan Jidosha Shimbun on April 17, 2009)

Licensing of Technology from Other Companies

(As of Mar. 31, 2010)

Company	Partner	Country	Outline of agreements	Contract period
Tokai Rika Co., Ltd.	TOTO Frontier Research	Japan	Agreement to patent use for hydrophilic mirror	1999.08.01- 2014.07.31
	Toyota Motor Corp.	Japan	Licensing of patent and usage rights of electronic key-systems	2009.04.01-until the patent expires
	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
	TRW Vehicle Safety Systems Inc.	USA	Licensing of patent on automotive seatbelts	2008.01.01- the patent expiry date
	SMR Patents S.a.r.l	Luxembourg	Licensing of patent on automotive mirrors	2009.01.01- the patent expiry date
Thai Seat Belt Co., Ltd. (Thailand)	Toyota Boshoku	Japan	License to use know-how and patents on automobile seat belt	1994.06.02- 2011.06.01
TAC Manufacturing, Inc. (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

 

Licensing of Technology to Other Companies

(As of Mar. 31, 2010)

Partner	Country	Outline of tie-ups	Contract period
Thai Seat Belt Co., Ltd.	Thailand	Licensing use of patent and technology on seat belts for automobiles	1994.06.02 - 2011.06.01
TRP, Inc.	Philippines	Licensing use of patent and technology on switches for automobiles	1996.03.05 - 2011.03.04
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
Shinchang Electrics Co., Ltd.	Korea	Licensing use of patent and technology on switches and steering locks for automobiles	1978.09.02 - 2011.12.31
		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).
TAC Manufacturing, Inc.	USA	Licensing use of patent and technology on steering wheels, key sets, and shift levers for automobiles	1998.01.01 - 2010.12.31
TRIN, Inc.	USA	Licensing use of the patent and technology on switches for automobiles	1998.01.01 - 2010.12.31
TRMI, Inc.	USA	Licensing use of patent and technology on key switches and key sets for automobiles	1998.01.01 - 2010.12.31
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 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 - 2010.11.30
Tokai Rika (Thailand) Co., Ltd.	Thailand	Licensing use of patent and technology on key sets for automobiles	2000.03.01 - 2011.02.28
TRCZ s.r.o	Czech Republic	Licensing use of patent and technology on switches and seat belts for automobiles	2003.04.29 - 2011.04.28
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 - 2010.12.31
TRQSS, Inc.	Canada	Licensing use of patent and technology on seat belts for automobiles	2005.01.01 - 2010.12.31
Tianjin Tokairika Automotive Parts Co,. Ltd.	China	Licensing use of patent and technology on switches for automobiles	2005.01.01 - 2015.12.31
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

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	11,122	15,852	21,189

-In addition to investing in production facilities so that they can produce new products, the Company invested in new plants in China and India to increase production capacity in order to respond to the growth in demand in Asia.

Investment Projects

(As of Mar. 31, 2010)

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.	3,490	April 2010	March 2011
Nishibiwajima Plant (Aichi Pref., Japan)	Test, assembly facilities for switches etc.	10	April 2010	March 2011
Toyota Plant (Aichi Pref., Japan)	Parts production, processing, assembly facilities for seat belts, decorating products	1,130	April 2010	March 2011
Otowa Plant, Hagi Plant (Aichi Pref., Japan)	Parts production, assembly facilities for key locks, steering wheels etc.	1,680	April 2010	March 2011
Loan assets for Ena Tokai Rika Co., Ltd. (Gifu Pref., Japan)	Parts production, assembly facilities for mirrors	600	April 2010	March 2011
Consolidated subsidiaries
TRBR Industria e Comercio Ltda (Sao Paulo, Brazil)	Construction of plant	600	March 2009	March 2011
Foshan Tokairika Automotive Parts Co., Ltd. (Foshan, China)	Construction of additional plant building, facilities to produce new products, etc.	600	Dec. 2008	Sept. 2010
Tokai Rika Minda India Private Ltd. (Bangalore, India)	Facilities to produce products, etc.	300	Feb. 2010	May 2010