Tokai Rika Co., Ltd. Business Report FY ended Mar. 2018

Financial Overview

(in millions of JPY)

FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 Rate of Change (%) Factors
Sales 481,945 459,070 5.0 -
Operating income 30,871 30,522 1.1 -
Ordinary profit 32,278 32,111 0.5 -
Current net income 22,014 (4,336) - -In the previous reporting period, the Company reported extraordinary losses, which were JPY 10,460 million to cover expenses involving product warrantees and JPY 12,092 to cover expenses involved with anti-monopoly laws.
Sales by Geographic Area
-Japan 234,272 224,556 4.3 -Favorable currency translation due to the weak yen, etc.
-North America 105,568 109,923 (4.0) -Decrease in unit-production volumes by customers
-Asia 110,193 96,747 13.9 - Sales were higher, thanks to favorable currency translation due to the weak yen and higher sales volumes to major customers.
-Other 31,910 27,842 14.6 -

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 announced that its automobile interior panels, decorated using 3D dry transfer method, have received the Good Design Award 2017 organized by the Japan Institute of Design Promotion (JDP). These automobile interior panels were designed in cooperation with Toyota Motor Corporation, and this selection is a joint award for the two companies. (From a press release on October 4, 2017)

R&D Activities


-Smaller sized switches with improved designs and operability.
-Remote-controls with touch-pads that can be operated like those on smart phones.
-Switches for audio systems designed for luxury vehicles

Shifting levers
-Standardizing and downsizing shifting levers for automatic transmissions.
-Increasing product range of by-wire shifting levers.

Security systems
-Low-cost smart-key systems designed to promote more sales of small-sized vehicles.
-Keys designed for use on car-sharing vehicles.

Safety systems
-Enhancing safety and protection of vehicle occupants.
-Seat belts mounted with next-generation retractors to meet the need for downsizing.
-Increasing product range of low-cost door mirrors

Other business sectors
-Mass-producing shifting nobs making use of new, hand-sewn leather; and paddle shifting knobs that emanate the look and feel of magnesium.
-Commercializing automotive-interior panels with embellishments created by 3D dry-transfer technology.

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.

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, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Japan 24,727 25,048 24,293
North America 671 620 712
Overall 25,398 25,669 25,006

The Company estimates that it will spend JPY 26,000 million for R&D expenses in the fiscal year ending in March 2019.

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2018 FY ended Mar. 31, 2017 FY ended Mar. 31, 2016
Overall 20,139 22,999 21,908

-In the fiscal year that ended in March 2018:

  • Japan: JPY 11,277 million
    (spent to remodel the Toyoda Plant in order to strengthen production operations)
  • North America: JPY 4,270 million
  • Asia: JPY 3,617 million
  • Other: JPY 973 million

-Fiscal year ending in March 2019 (estimated):

  • Japan: JPY 12,7000 million
  • North America: JPY 3,400 million
  • Asia: JPY 5,300 million
  • Other: JPY 1,600 million

-Plans to spend a total of JPY 23,000 million, mainly on the automotive-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 4,863 Apr.
Toyota Plant Aichi Pref.,
Facility to produce , assemble, and test seatbelts and accessory parts 1,588 Apr.
Otowa Plant/Hagi Plant Aichi Pref.,
Facility to produce , assemble, and test key locks and steering wheels 2,587 Apr.

Outlook for FY ending Mar. 31, 2019

(in millions of JPY)
FY ending Mar. 31, 2019
FY ended Mar. 31, 2018
Rate of change
Sales 485,000 481,945 0.6
Operating income 28,000 30,871 (9.3)
Ordinary income 29,000 32,278 (10.2)
Net income 20,000 22,014 (9.1)

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