Tokai Rika Co., Ltd. Business Report FY ended Mar. 2017

Financial Overview

(in millions of JPY)

FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 Rate of Change (%) Factors
Sales 459,070 476,202 (3.6) -
Operating income 30,522 34,608 (11.8) -
Ordinary profit 32,111 34,673 (7.4) -
Current net income (4,336) 5,591 - -A net loss was posted due to an extraordinary loss of JPY 10,460 million connected to product warranties and JPY 12,092 connected to the Antitrust Act.
Sales by Geographic Area
-Japan 224,556 226,204 (0.7) -Sales were lower due to the effect of negative currency translation.
-North America 109,923 121,649 (9.6)
-Asia 96,747 102,005 (5.2) -Sales were lower due to the effect of negative currency translation, even though sales in Indonesia and India to OEMs increased.
-Other 27,842 26,343 5.7 -

Product Development

-The Company equipped the Lexus LC500/500h with an audio switch that has a solid feel and easy operability because of its unique design; and a genuine leather shift-lever bar with a sporty feel, which was sewn in an innovative way by craftspeople.
-The Company developed and equipped the Toyota C-HR with an exterior mirror that projects the vehicle’s logo at the passengers’ feet.


-The Company’s automotive remote-key system that it designed and developed jointly with Toyota was recognized, being award jointly with Toyota the Japan Industrial Designer’s Association (JIDA) Design Museum Selection. The system’s design was highly rated for its seamless operability when passengers get in and out of the vehicle, being praised for its sophisticated design, which should remain as an iconic industrial design for generations.

R&D Activities

-Developed smaller products and switches that incorporate improvements in terms of design and operability.
-Launched commercial production of touch pad type remote control device which realized an intuitive operation like a smartphone.

Shift levers

-Developed standard AT shift levers and low cost AT shift levers
-Improved variations of shift-by-wire shifters

Security systems
-The Company launched commercial production of a small-size steering-lock mechanism that includes peripheral devices and which provides enhanced collision-safety performance.
-The Company developed a low-cost smart-key system with the aim of penetrating the small-car market.
-The Company is working on advanced development of products designed for connected cars

Safety Systems
-Improved occupant protection performance
-Developed a seatbelt incorporating the next standard for retractors that are able to respond to the need for smaller components
-Expanded lineup of low-cost door mirrors

Other fields:
-The Company launched commercial production of a paddle shift with a shift knob sewn under an innovative method by craftspeople and which brings out the true look of the magnesium used in it.
-The Company launched commercial production of a door mirror that projects the vehicle logo.

R&D Structure

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

Licensing of Technology from Other Companies

(As of Mar. 31, 2017)
Company Partner Country Outline of agreements Contract period
Tokai Rika Co., Ltd. Autoliv Development AB Sweden Licensing of patent on automotive seatbelts Dec. 01, 2007 -
the patent expiry date

Commercial Alliances

(As of Mar. 31, 2017)
Company name Company to tie-up Details
Tokai Rika Co., Ltd. Toyoda Gosei Co., Ltd. The Company cooperates with Toyoda Gosei Co., Ltd. on development, design, sales and production of single-unit safety systems under a global business alliance.
Murakami Corporation It cooperates on the development, design, manufacture and sales of automotive mirrors.

R&D expenses

(in millions of JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Japan 25,048 24,293 21,849
North America 620 712 678
Overall 25,669 25,006 22,527

The Company estimates that it will spend JPY 26,500 million for R&D expenses in the fiscal year ending in March 2018.

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2017 FY ended Mar. 31, 2016 FY ended Mar. 31, 2015
Overall 22,999 21,908 24,186

-Fiscal year ended March 2017:

  • Japan: JPY 12,500 for facilities needed in order to cutover to manufacturing new products.
  • North America: JPY 5,400 million to construct a new production plant in Mexico.
  • Asia: JPY 3,900 million to expand a production plant in Thailand.
  • Others: JPY 500 million.

-Estimated for Fiscal year ending in March 2018:

  • Japan: JPY 12,400 million
  • North America: JPY 4,000 million
  • Asia: JPY 3,4000 million
  • Others: JPY 1,000 million.

-The Company plans to allocate JPY 20,800 to the auto parts business.

New Equipment Installations

(As of Mar. 31, 2017)
Plant Location Type of facility Estimated amount of investment
(in million JPY)
Project Period
From To
Headquarters/Headquarters Plant Aichi Pref.,
Facility to produce, assemble, and test switches and electronics products 4,672 Apr.
Toyota Plant Aichi Pref.,
Facility to produce , assemble, and test seatbelts and accessory parts 3,758 Apr.
Otowa Plant/Hagi Plant Aichi Pref.,
Facility to produce , assemble, and test key locks and steering wheels 2,673 Apr.

Outlook for FY ending Mar. 31, 2018

(in millions of JPY)
FY ending Mar. 31, 2018
FY ended Mar. 31, 2017
Rate of change
Sales 450,000 459,070 (2.0)
Operating income 27,500 30,522 (9.9)
Ordinary income 28,500 32,111 (11.3)
Net income 19,500 (4,336) -

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