Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	437,807	371,932	17.7	-
Operating income	30,115	23,238	29.6	-
Ordinary profit	32,323	24,505	31.9	-
Current net income	17,258	5,187	232.7	-

 
Factors
<Japan>
-Operating revenue increased 9.4% year-on-year to 288,497 million yen because of the depreciation of the yen and the consolidation of more subsidiaries.
-Operating profit increased 3.6% year-on-year to 17,230 million yen thanks to the weaker yen and rationalization initiatives.

<North America>
-Operating revenue increased 28.8% year-on-year to 86,946 million yen due to an increase in production units of the customers and the depreciation of the yen..
-Operating profit rose by 94.7% year-on-year to 2,664 million yen due to increased revenue.

<Asia>
-Operating revenue increased 29.6% year-on-year to 93,028 million yen due to an increase in production units of the customers in China, the start of full operations in Indonesia and the weaker yen..
-Operating profit rose 57.5% year on year to 9,139 million yen.

<Other>
-Operating revenue in other global regions, which included sales at its subsidiaries in Europe and South America, increased 56.0% year-on-year to 26,183 million yen.
-The other regions posted operating profit of 1,141 million yen, after suffering operating loss of 42 million yen in the previous fiscal year.

Contracts

- The Company aims to expand sales of its automotive interior components by leveraging its three-dimensional dry transfer printing technique, the company's original, surface decorating technology for plastic parts. Using the 3D dry transfer printing method allows a high-accuracy positioning to apply designs on components exactly as intended. The company had proposed the technology to Toyota Motor and has already won a program to supply 14 interior plastic parts for the new Crown, the world's first package application of 3D dry transfer printing technology to automotive interior panels. These components are being delivered from Tokai Rika's Otowa Plant (Toyokawa City, Aichi Prefecture), which has a dedicated production line capable of manufacturing most items in the interior product lineup. The company will work on reducing production costs, expecting the Crown program to become a stepping-stone to winning more contracts. (From an article in the Nikkan Jidosha Shimbun on Mar. 19, 2013)

Outlook for FY ending Mar. 31, 2015

(in millions of JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ended Mar. 31, 2014 (Result)	Rate of change (%)
Sales	444,000	437,807	1.4
Operating income	28,500	30,115	(5.4)
Ordinary income	29,000	32,323	(10.3)
Net income	19,000	17,258	10.1

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

R&D expenses

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Japan	19,768	17,379	17,075
North America	493	568	515
Overall	20,262	17,948	17,590

R&D Achievements

-R&D activities in Japan were focused on advanced development and elemental technology. R&D activities in North America, Europe, and China centered on first understanding the local market needs and the developing products and making product proposals to customers.

Switches
-Developed switches that enable displays and related multi-functional operations to be possible, in addition to developing input systems incorporating improvements in terms of design and operability.

Security Systems
-Developed and commercialized a new, low-cost, smart-key system designed for sales worldwide.
-Further enhanced and improved variations of shift-by-wire shifters, which are representative of the types used in HVs and EVs.

Safety Systems
-Developed and commercialized a seatbelt incorporating the next standard for retractors that are able to respond to the need for weight reduction.
-Developed low-cost door mirrors.
-Commercialized decorative panels offering a keen sense of design unity and continuity for various interior products, by applying its proprietary, high-precision decorating technology "3D Dry Transfer Technology."

R&D Facilities
Expansion of Yamagata R&D Center in Japan

-In 2013, the Company announced that it will expand its technical center in Yamagata Prefecture, Japan. Established in 2008, the technical center has been mainly designing in-vehicle electronic devices, such as switches and electronic key systems. Through this expansion, the center will start the development and research of advanced technologies such as control displays and next-generation switches. The number of employees is expected to double to 60 by the fiscal year ending March 2019. (From an article in the Nikkan Jidosha Shimbun on December 12, 2013)

Product Development
Development of “Touchpad” System for Center Console

-In 2013, the Company has developed Japan's first "Touchpad" system for a vehicle center console. The Touchpad controls several functions such as audio and car navigation systems and a hands-free phone.  This allows the driver to operate the controls while maintaining proper driving position. The next-generation system was designed to replace a haptic command unit, which is increasingly being used on luxury cars.  Tokai Rika has received its first contract to supply the new “Touchpad” system to Toyota Motors for use in the Lexus RC sports coupe, which will be released in 2014. The systems will be manufactured at the company’s plant in Aichi Prefecture, Japan, starting next year, and will be subsequently shipped to Toyota's Tahara Plant. (From an article in the Nikkan Jidosha Shimbun on November 26, 2013)

Licensing of Technology from Other Companies

(As of Mar. 31, 2014)

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, 2014)

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

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	25,220	13,764	16,406

-In addition to investing in equipment to respond to the production of new products, the Company also invested to build a new production plant and install facilities and equipment in Thailand to respond to the needs in developing countries.

New Equipment Installations

(As of Mar. 31, 2014)

Plant	Location	Type of facility	Estimated amount of investment (in million JPY)	Project Period
				From	To
Headquarters/Headquarters Plant	Aichi Pref., Japan	Facility to manufacture products compatible with in-vehicle electronics; parts for switches; and conduct assembly-inspections	5,122	Apr. 2014	Mar. 2015
Toyota Plant	Aichi Pref., Japan	Facility to manufacture seatbelts, decorative ornamentations; and conduct assembly inspections	885	Apr. 2014	Mar. 2015
Otowa Plant/Hagi Plant	Aichi Pref., Japan	Facility to manufacture parts for key-locks, steering wheels, etc.; and conduct assembly inspections	2,915	Apr. 2014	Mar. 2015