TACHI-S 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 | 295,470 | 282,525 | 4.6 | -Sales company-wide increased due to strong sales outside Japan. -In China, sales increased, thanks to greater sales of existing vehicles on which the Company delivers products. |
| Operating income | 8,663 | 8,859 | (2.2) | -Operating income company-wide fell due to lower sales in Japan. -Operating income fell due to a change in the product range. -Operating income in Central and South America increased, thanks to initiatives to improve profits. -Operating income in China increased, thanks to greater sales of existing vehicles on which the Company delivers products. |
| Ordinary income | 11,934 | 12,337 | (3.3) | |
| Net income | 8,174 | 7,262 | 12.6 | - |
Mid-term Management Plan: Global Teamwork 2020
-The Company’s aim is to become the world’s preferred global seat-system creator by providing seats that meet and exceed customer expectations and needs. This is being achieved by responding to the rapid advancements being made in autonomous-driving technology, creating diverse technological innovations, responding to huge transformations taking place in the automotive industry, enhancing competitive advantages, and pursuing new technologies and product creation worldwide based on staying ahead of anticipated, future requirements.
-3 targets
- Number 1 Quality
- Operating margin: 7%
- Global manufacturing share: 7%
-Global activities
- Setting up R&D function in major regions
- Reorganize and expand production facilities
- Expand parts operations at production plants
＜Business Alliance with Toyota Boshoku＞
| Objective | The two companies will share knowledge, expertise, and management resources, in order to quicken the pace of enhancing their global competitiveness. |
| Details | The companies will supply each other their existing parts, consider jointly developing new parts, and share the use of their production plants and facilities. |
| Areas of progress |
|
-Enhance competitive strengths
- Strengthen product proposals
- Strengthen product manufacturing
- Strengthen ability to respond to change
＜Enhancing competitive advantages in manufacturing frames＞
-JTEKT Corporation and Tachi-S agreed for Fuji Kiko’s seat business to be transferred to Tachi-S. This resulted in setting up a subsidiary company TF-Metal. They also agreed that Tachi-S would apply for a tender offer being conducted by JTEKT in order to complete turning Fuji Kiko into a subsidiary. The objective is for JTEKT to strengthen its steering-systems business and for Tachi-S to strengthen its seat business.
- 2017: Built a seamless R&D function that covers components, up to assembly operations.
- By 2020: Expand inhouse production of mechanisms and peripheral parts; and optimize production operations.
- By 2029: Automate production, from the production of mechanisms up to the assembly of frames; and look ahead to post-processing of seat assembly processes.
Contracts
Japan
- Honda Clarity, N-BOX, Freed
- Hino Profia, Ranger
- Mitsubishi Eclipse Cross
USA
- Honda MDX, Accord
Brizail
- Nissan Kicks
Europe
- Nissan LEAF
China
- Nissan Navara, Terra, M50V, Kicks
- Geely Emgrand
Southeast Asia
- Nissan Note
- Mitsubishi Outlander
R&D Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 4,647 | 4,130 | 4,274 |
R&D Facilities
| Tachi-S Technical Monozukuri Center | Oume City, Tokyo |
| Advanced Technology Center | Oume City, Tokyo |
| Tachi-S Technical Center Aichi | Anjo City, Aichi Pref. |
| Tachi-S Engineering U.S.A. Inc. | Michigan, USA |
| Tachi-S Engineering Europe S.A.R.L. | Velizy-Villacoublay, France |
| Tachi-S Engineering China Co., Ltd. | Fuzhou, China |
| Tachi-S Engineering Latin America S.A. de C.V. | Aguascalientes, Mexico |
| Tachi-S Engineering Vietnam Co., Ltd. | Ho Chi Minh, Vietnam |
R&D Structure
-The Company, in order to conduct effective and efficient R&D activities, has positioned its technical center in Japan as the main function accountable for product development and fundamental technology. In addition, however, the Company works with its operations in the U.S.A. and Europe, and with technical-licensing and partner companies, in order to gather information on the latest technologies and peripheral technologies. Also, the Company makes sales presentations to global OEMs and parts suppliers about its wealth of technology on new products and new production methods. Currently, some of these technologies are being used by customers.
R&D Activities
Development of seats and original mechanism parts
-The Company is developing the following products for automobiles and other vehicles: seats, seat reclining devices, slide rails, heavy-duty/capacity lifters, underfloor devices, and long slide-rails for RVs; in addition to peripheral mechanisms and rotary units as seat systems, delivering them to OEMs.
Development of technology to improve safety
-The Company is developing the following as seat systems to improve safety: seats equipped with side-airbags, seats compatible with smart airbags with occupant detection feature, and systems to reduce neck injuries, delivering them to OEMs. Also, the Company is conducting R&D activities on seat safety so as to enable seats to respond to frontal, rear, and lateral collisions.
Development of environmentally friendly technology
-The Company is developing materials that will totally eliminate environmentally harmful impact and substances while improving fuel efficiency; and ultra lightweight seats loaded with new technological mechanisms. The Company is making product presentations to OEMs.
Development of products for special needs vehicles for social work
-The Company is developing seats for physically challenged occupants in terms of making them super easy to operate and get in and out of; for special needs vehicles. The Company is making product presentations to OEMs.
Development of low-cost products
-The Company is developing low-cost, next-generation seats based on standardizing and using common parts, making presentations to OEMs both in and outside Japan.
Development of production technology
-The Company is developing technology to improve adhesion-molded seats, technology to foam-mold single-unit headrests and arm rests, technology to automate and reduce energy and labor involved with assembling seats, and technology to manufacture and form-mold based on CAD and CAM; working to increase the models its delivers products to and its product lineup.
Research on seats
-Under the aim of developing seats that are even more comfortable, the Company evaluates "seating comfort" and conducts its own research on what seat architecture and design should be, studying seat mechanisms. In addition, the Company is using CAE in order to shorten development time and reduce costs so as to design seats in less amount of time, which are balanced in terms of performance, quality, and cost.
Development of seat designs
-The Company is working independently to develop designs for various fields in which the Company is engaged, such as future seat concepts, new-product designs, and corporate designs. The Company is making product presentations to OEMs as well as delivering them.
Standard frame
-The Company is developing standard seat frames with general design elements that can be used in common on various types of vehicle models. The Company is making product presentations to OEMs as well as delivering them.
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2018 | FY ended Mar. 31, 2017 | FY ended Mar. 31, 2016 | |
| Overall | 4,644 | 5,064 | 4,440 |
-Contents of the investment by region for FY ended Mar. 2018 are as follows:
| Region | Major items | Investment amount (in millions of JPY) |
| Japan | -Preparing production equipment to deal with new orders and model changes. -Change of IT system |
2,129 |
| North America | -Preparing production equipment to deal with model changes. | 464 |
| Central and South America | -Investment in new plant as well as production equipment to deal with new orders and model changes. | 1,698 |
| Europe | -Preparing production equipment to deal with new orders. | 280 |
| China | -Preparing production equipment to deal with new orders. | 338 |
| Southeast Asia | -Renewal production equipment | 13 |
Planned Capital Investment |
(As of Mar. 31, 2018) |
| Company/plant | Facilities & Activities | Total investment (millions of JPY) |
Start date | Completion |
| Suzuka Plant | Equipment for manufacturing automotive seats | 622 | Jul. 2018 | Mar. 2019 |
| Aichi Plant | Equipment for manufacturing automotive seats | 263 | Apr. 2018 | Nov. 2018 |
| Technical Monzukuri Center | Establishment of business administration system | 249 | May 2018 | Mar. 2019 |
| Industria de Asiento Superior S.A. de C.V. | Equipment for manufacturing automotive seats | 625 | Apr. 2018 | Apr. 2019 |