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 | |
| Overall | ||||
| 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.
Awards
-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
Switches
-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., Japan |
Facility to produce, assemble, and test switches and electronics products | 4,863 | Apr. 2018 |
Mar. 2019 |
| Toyota Plant | Aichi Pref., Japan |
Facility to produce , assemble, and test seatbelts and accessory parts | 1,588 | Apr. 2018 |
Mar. 2019 |
| Otowa Plant/Hagi Plant | Aichi Pref., Japan |
Facility to produce , assemble, and test key locks and steering wheels | 2,587 | Apr. 2018 |
Mar. 2019 |
Outlook for FY ending Mar. 31, 2019 |
(in millions of JPY) |
| FY ending Mar. 31, 2019 (Forecast) |
FY ended Mar. 31, 2018 (Result) |
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.)