Tokai Rika Co. Ltd. Business Report FY2010
Business Highlights
Financial Overview |
(in millions of JPY) |
FY2010 | FY2009 | Rate of Change (%) | Factors | |
Overall | ||||
Sales | 327,622 | 331,014 | (1.0) | - |
Operating income | 18,906 | 18,032 | 4.8 | - |
Ordinary profit | 20,058 | 20,372 | (1.5) | |
Current net income | 5,234 | 12,603 | (58.5) | |
Automotive component business | ||||
Sales | 321,077 | 324,438 | (1.0) | - |
New Company
-The Company announced that it will establish a new company in Indonesia to manufacture automotive switches and security products. This is the first time for the company to locate a plant in Indonesia and the fifth in ASEAN countries. The new subsidiary, PT. Tokai Rika Indonesia, is scheduled to be formed in May at the Industrial Town in Bekasi, West Java Province and start operations in October this year. Sales are expected to reach Rp 100 billion (approximately 900 million yen) in 2012. The new company will be capitalized at Rp 2.9 billion (approximately 27 million yen), of which 90 percent will be provided by Tokai Rika and the remaining 10 percent by PT. Toyota Tsusho Indonesia. It will be led by Masashi Nakagawa, currently the Project General Manager of the General Planning Division at Tokai Rika. Investment in the plant construction is projected to reach Rp 2.5 billion (approximately 23 million yen). The new facility will have a total floor area of 1,000 square meters and hire about 20 employees by 2012. (From an article in the Nikkan Jidosha Shimbun on February 18, 2011)Restructuring
-The Company announced that its subsidiary, Quality Safety Systems Company based in Ontario, Canada, will become a wholly-owned subsidiary of TRAM, Inc., as of October 1, 2010. TRAM manages the group's overall operations in North America. Quality Safety Systems engages in the production of seatbelts and plastic components for seatbelts. In line with this transaction, the name of the Canadian subsidiary will be changed to TRQSS, Inc., effective October 1, 2010. (From a press release on May 7, 2010)Recent Developments Outside Japan
-The Compnay will utilize its local manufacturing plant in the Philippines as an export hub. Taking advantage of the stable value of the local currency peso against the U.S. dollar, the company will expand exports to the U.S. Switches will be shipped to a plant Toyota has decided to build in Mississippi, U.S.A. Because of low volumes of vehicle production in the local market, the percentage of exports has already been high. Tokai Rika intends to stabilize the plant operation by expanding the export-related business. The Philippine plant TRP in Laguna Province was established in 1995 to supply parts to Toyota's assembly plant, Toyota Motor Philippines. It now manufactures lever combination switches and power window-related products. The Company has an intention of expanding its export operations not only to respond to growing U.S. exports, but also to supplement production capacities of plants in Asian countries. (From an article in the Nikkan Jidosha Shimbun on July. 23, 2010)>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)
Performance Forecast
|
(in millions of JPY) |
FY2011 Forecast |
FY2010 Result |
Rate of change (%) |
|
Sales | 314,000 |
327,622 |
(4.2) |
Operating income |
10,700 | 18,906 | (43.4) |
Ordinary income |
11,900 | 20,058 | (40.7) |
Net income |
7,500 | 5,234 | 43.3 |
R&D
R&D expenses |
(in millions of JPY) |
FY2010 | FY2009 | FY2008 | |
Overall | 16,969 |
16,607 | 17,907 |
-The Company conducts R&D activities to develop attractive new products and elemental technology, focusing on various automotive switches and researching on/off devices to further improve upon their basic functions. It also is developing security system products in which electronic technology designed for key-locks is applied; and safety system products such as seatbelts and mirrors.
R&D Achievements
Switches:-The Company is continuing to develop products based on HMI. These include switches that can perform a multitude of hands-on operations for which future growth is expected because of the development of multi-functionalization.
Security Systems
-The Company is aiming to be the first to market a by-wire gearshift lever, ahead of other companies, by commercializing one based on the growth of smart-key systems and one typified in the Prius.
-The Company is working on developing and commercially producing a remote key for emerging-market nations. The key will be low in cost but high in quality.
Production Methods
-Using its 3D Dry Transcribing Method as a means of decorating surfaces on products, the Company successfully transferred a new wood-grain pattern, which up until now had been difficult to accomplish.
-Going forward, the Company plans to make use of other methods to create metallic looks and uneven patterns on products, which are difficult to reproduce, and conduct R&D activities aimed at enhancing the look and feel of materials through greater freedom of design.
Licensing of Technology from Other Companies
(As of Mar. 31, 2011)
Company | Partner | Country | Outline of agreements | Contract period |
Tokai Rika Co., Ltd. | TOTO Frontier Research Ltd. |
Japan | Agreement to patent use for hydrophilic mirror | 1999.08.01- 2014.07.31 |
Tokai Rika Create Corporation | Japan | Licensing of patent rights for a transcribing device that copies designs onto steering wheels. |
2008.01.01 - 2013.12.31 |
|
Toyota Motor Corp. | Japan | Licensing of patent and usage rights of electronic key-systems | 2009.04.01-until the patent expires | |
Magna Mirrors of America Inc. | 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 Corporation |
Japan | License to use know-how and patents on automobile seat belt | 1994.06.02 - 2012.06.01 |
TAC Manufacturing, Inc. (USA) |
Miroku Techno Wood Co. Ltd. |
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, 2011)
Partner | Country | Outline of tie-ups | Contract period |
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). | ||
Thai Seat Belt Co., Ltd. | Thailand | Licensing use of patent and know-how on seat belts for automobiles | 1994.06.02 - 2012.06.01 |
TRP, Inc. | Philippines | Licensing use of patent and know-how on switches for automobiles | 1996.03.05 - 2012.03.04 |
TAC Manufacturing, Inc. | USA | Licensing use of patent and know-how on steering wheels, key sets, and shift levers for automobiles | 1998.01.01 - 2011.12.31 |
TRIN, Inc. | USA | Licensing use of the patent and know-how on switches for automobiles | 1998.01.01 - 2011.12.31 |
TRMI, Inc. | USA | Licensing use of patent and technology on key switches and key sets for automobiles | 1998.01.01 - 2011.12.31 |
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). | |||
Tokai Rika (Thailand) Co., Ltd. | Thailand | Licensing use of patent and know-how on key sets for automobiles | 2000.03.01 - 2012.02.28 |
TRCZ s.r.o | Czech Republic | Licensing use of patent and know-how on switches and seat belts for automobiles | 2003.04.29 - 2012.04.28 |
Mindarika Private Limited | India | Licensing use of patent and know-how on switches for automobiles | 2003.10.03 - 2013.10.02 |
Licensing use of patent and know-how 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 know-how 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 know-how on key switches and key sets for automobiles | 2005.01.01 - 2011.12.31 |
||
TRQSS, Inc. | Canada | Licensing use of patent and know-how on seat belts for automobiles | 2005.01.01 - 2011.12.31 |
Tianjin Tokairika Automotive Parts Co,. Ltd. | China | Licensing use of patent and know-how on switches for automobiles | 2005.01.01 - 2014.12.31 |
Wuxi Risho Technology Co., Ltd. | China | Licensing use of patent and technology on seat belts for automobiles |
2005.01.01 - 2011.12.31 |
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 |
Investment Activities
Capital Expenditure |
(in millions of JPY) |
FY2010 | FY2009 | FY2008 | |
Overall | 11,707 |
11,122 | 15,852 |
-The Company invested in its plant in China, increasing facilities and equipment to respond to demand in emerging markets, in addition to increasing facilities and equipment to respond to production of new products. Also, the Company invested in its new plant in India, getting it ready to commence operations.
-The Company announced on July 20 that its subsidiary in Brazil will construct a new plant in Sao Paulo State and relocate the existing facility. A building of the new plant will be enlarged by more than three times and about 60 current workers will be increased to about 100. The Brazilian subsidiary, which supplies parts to Toyota's local plant for its new small cars, aims to expand the local operations taking occasion of moving to the new plant. TRBR Industria E Comercio Ltda., which was established with a 100 percent investment by the Company in 2001, now supplies switches and other products to Toyota in Brazil. At a cost of about 35 million reales (approximately 1.8 billion yen), the new plant will be built in Santa Barbara do Oueste in the state at the site of about 44,000 square meters and have a building of about 8,100 square meters. It is scheduled to go into operation in July 2011.(From an article in the Nikkan Jidosha Shimbun on July. 21, 2010)
-The Company announced that it will reorganize its domestic production structure for switches. Starting in June this year, it is going to transfer operations now handled at its Nishibiwajima Plant (Kiyosu City, Aichi Prefecture) to its head office plant (Oguchi-cho, Aichi Prefecture). Some 300 employees at the Nishibiwajima Plant will also be moved to the main plant. The transfer project is scheduled to be completed by November 2011. The Nishibiwajima Plant has the longest history among the Group's operations; it started production in 1948, when the company launched business. Its major product is lever combination switches for turning signals and windshield wipers. The facility has been producing products worth some 20 billion yen each year. (From an article in the Nikkan Jidosha Shimbun on Apr. 22, 2010)