Tokai Rika Co., Ltd. Business Report FY2011

Business Highlights

Financial Overview

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 Rate of Change (%) Factors
Sales 319,577 327,622 (2.5) -
Operating income 13,156 18,906 (30.4) -Even though the Company actively worked to reduce costs, it nevertheless recorded lower operating income year-on-year due the high evaluation of the yen.
Ordinary profit 14,977 20,058 (25.3) -
Current net income 8,123 5,234 55.2 -



-The Company has developed a steering wheel for commercial use, main parts of which are made from bamboo, for the first time in the world. Bamboo, which absorbs carbon dioxide in the process of growing and can be obtained easily as material, is excellent in terms of environmental responsiveness. The new steering wheel has been chosen for the first time for the next generation "Lexus GS" slated for launching in early 2012. It will be made available as option as part of the interior package. The newly developed product will be manufactured at Tokai Rika's affiliate in Kochi Prefecture. (From an article in the Nikkan Jidosha Shimbun on December 7, 2011)


-Shinchang Electrics Co., Ltd. announced that it will increase its investment in STF Co., Ltd., raising its shareholding in the company from 40.0 percent at present to 100.0 percent. STF, based in Cheonan, Chungcheongnam-do, manufactures and sells automotive electronics components. The company was established in 2002 as a joint venture company with Japanese companies, Tokai Rika Co., Ltd. and Furukawa Electric Co., Ltd. The transaction is expected to close in April 2012. (From a press release on March 2, 2012)

Outlook for FY ending Mar. 31, 2013

(in millions of JPY)
  FY ending Mar. 31, 2013
FY ended Mar. 31, 2012
Rate of change
Sales 356,000 319,577 11.4
Operating income 23,000 13,156 74.8
Ordinary income 23,500 14,977 56.9
Net income 15,000 8,123 84.7

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


R&D expenses

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Japan 17,075 - -
North America 515 - -
Overall 17,590 16,969 16,607

R&D Achievements

-The Company strove to develop not only new products but also new elemental technology, which enabled it to develop a variety of products. These products included mainly automotive switches, with input devices providing further advances; security systems in which optimized electronics technology has been applied in key-locks; and safety systems such as seatbelt and mirrors.

-The Company developed integrated input devices/systems that provided greater safety and easier operating, such as steering-system switches and other cabin-interior switches.
-The Company developed and began commercial production of steering switches that can be operated in tandem with indicators, items for which more advances are predicted in line with the greater diversification of functions. It also developed and started manufacturing more compact and lower cost heating-control switches, which have been made attractive because of added decoration.
-In working together with its production operations in North America, the Company is presenting product offerings that factor in local needs.

Security Systems
-The Company was successful in its R&D activities aimed at developing low-cost smart-key systems that can be marketed globally, and at developing systems offering improved security.
-The Company pioneered and began mass-producing by-wire shift levers, which are typified by their use in HVs and EVs, in advance of its competitors.

Safety Systems
-The Company developed a standard mirror designed for high-end vehicles, which it plans to mass-produce in tandem with the standard mirrors it has already been producing for compact cars, hoping to increase the types of vehicles to which it can deliver these products.
-The Company began mass-producing a steering-wheel made of bamboo, as part of its initiatives to raise the product-appeal of its cabin-interior products.

Licensing of Technology from Other Companies

(As of Mar. 31, 2012)
Company Partner Country Outline of agreements Contract period
Tokai Rika Co., Ltd. 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


Licensing of Technology to Other Companies

(As of Mar. 31, 2012)
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

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY ended Mar. 31, 2012 FY ended Mar. 31, 2011 FY ended Mar. 31, 2010
Overall 16,406 11,707 11,122

-In addition to investing in facilities and equipment in order to shift to producing new products, the Company invested in a new factory and also in production facilities in Brazil, as a step toward responding to the growth in emerging-market countries.

-For the fiscal year ending March 2013, the Company plans to invest 18,500 million yen, mainly in its automotive parts business.

New Equipment Installations

(As of Mar. 31, 2012)
Plant  Location  Type of facility  Estimated amount of investment
(in million JPY) 
Project Period
From To
Headquarters/Headquarters Plant Aichi Pref.,
Facility to manufacture products compatible with in-vehicle electronics; parts for switches; and conduct assembly-inspections 3,133 Apr.
Toyota Plant Aichi Pref.,
Facility to manufacture seatbelts, decorative ornamentations; and conduct assembly inspections 1,423 Apr.
Otowa Plant/Hagi Plant Aichi Pref.,
Facility to manufacture parts for key-locks, steering wheels, etc.; and conduct assembly inspections 3,306 Apr.