TS Tech Co., Ltd. Business report FY2008
|Financial Overview||(in millions of JPY)|
|FY2008||FY2007||Rate of Change(%)||Factors|
-Sales decreased by 25.5% to 144 billion 457 million yen as a result of a decrease in export sales of seat parts for its overseas subsidiaries, significantly decreased orders from its main customers and changes in model mix.
-Sales decreased by 24.5% to 137 billion 177 million yen for the following reasons: contraction in the US automotive market, which led to a decrease in orders from its main customers, the consumer shift to smaller cars, which led to changes in the model mix of orders received, and foreign currency translation fluctuation.
-Although affected by foreign currency translation, sales actually increased by 14.9% to 67 billion 978 million yen thanks to steady orders from its main customers in Guangzhou and Wuhan.
-Although affected by foreign currency translation, sales increased by 0.8% to 81 billion 95 million yen thanks to an increase in orders received in Asia as a whole and steady orders in Brazil.
Recent Developments in Japan
-The Company started producing seats and door trims for the new Honda Odyssey at the Saitama Plant.
-At its Suzuka plant, the Company started producing seats for the new Honda Insight, installed with the active headrest mechanism as standard equipment to reduce impact on an occupant's neck in the event of rear collision.
Recent Developments outside Japan
-The Company started producing seats for new Honda Acura TL.
-Its new Indiana plant started full-scale operation. The Company started to supply seats for the Honda Civic.
-The Company started producing seats for new Honda Fit and seats and door trims for the Honda City.
-The Company started producing seats for new Honda Jazz and seats, door trims etc. for the Honda City in other Asian countries.
|R&D Expenditure||(in millions of JPY)|
-The Company's R&D activities are conducted mainly at the Technical Center in Tochigi Prefecture. In North America, R&D activities are conducted at TS-Tech North America Inc.
-The development focus is set on the area of safety technology, environmental technology and comfort technology.
The Company focused its development activities on the following:
-Various static and dynamic testing;
-Computer and simulation analysis based on various data output;
-The company developed an active head rest which is designed to reduce neck injuries caused by impacts from the rear; and a seat weight sensor which controls the deployment of air-bags.
-The Company developed a new mechanism that reduces injury of occupants due to front collision.
-The Company is carrying out R&D activities aimed at reducing the use of hazardous materials and volatile organic compounds, right from the product planning stage. Measures include research on substance content, and development and introduction of alternative materials.
-The Company conducted research to facilitate easier decomposition of seats for four-wheel vehicles, etc; and research on make monomaterial products. (Developed active head rests to alleviate neck injury from rear-end collision, and seat weight sensor to control air bag deployment depending on the weight of occupants.)
-The Company developed and mass-produced a rear seat installation structure that is not affected by hybrid-car specific body shape.
The development focus is set on the following:
-Development of technology aimed at improving the sitting comfort of occupants from the time they seat themselves in a car; and lessening occupants' fatigue during long-time driving.
-Development of technology to improve static comfort based on ergonomics studies; research on ways to measure fatigue using the Company's proprietary theories.
-Engineering of active devices to improve sitting comfort of next-generation car seats.
4. Multifunctional technology
-The Company is developing originally designed products for small cars and sport utility vehicles (SUVs), vehicles in which multifunctional features are on the rise.
-Developed and commercialized products as tip-up and long-slide mechanism, air conditioning seats, rear power fall down headrests and tip-up one-motion dive-down rear seats and rear ultra seats.
-The Company will pursue technology integration with electric components such as air conditioning seats, newly developed weight sensors as well as multifunctional devices.
5. High-quality finishing technology
-The Company is conducting R&D on a unique technology evaluation standard for each seat element to determine to what extent it contributes to enhance car exterior; and developing seats with the world's top quality finish using computer simulation.
6. Car interior technology
-The Company focuses on developing new and high-quality manufacturing technology, new decorating technology, and lighting technology, which increase the feeling of luxury in car interiors.
|Capital Investment||(in millions of JPY)|
-The Company invested in installation of production facilities for new models of the new Honda Odyssey as well as die assembly.
-The Company announced that it will invest about 3 billion yen in constructing a door trim production facility in Saitama Prefecture in order to reinforce the Company's vehicle interior business. The new plant is scheduled to start production in May 2010. It will be within the premises of its car seat facility in Gyoda City, Saitama Prefecture. (From an article in the Nikkan Jidosha Shimbun on Sep.1, 2008)
-The Company invested in its new Indiana plant which started operation in September 2008.
-The Company invested in installation of production facilities for new models of the new Honda Fit as well as die assembly.
-The Company announced that its subsidiary TS Tech do Brasil Ltda. will construct a new plant. TS Tech do Brasil engages in the production and sale of automotive seats and other interior products. The Company, in response to the strategic moves adopted by its main customer for business expansion in South America, will boost its production capacity and strengthen its production structure in the region by building a new plant in the vicinity of the existing facility of its Brazilian unit. The new facility is slated to begin operations in April 2009. The investment in the project will be 26.1million BRL (approximately 1.69 billion JPY). (From a press release on Jul 29, 2008)
-The Company invested in installation of production facilities for new models of the new Honda Fit and Honda City as well as die assembly.
-The Company has established a new subsidiary TS Tech Sun Rajasthan Pvt.Ltd. in India, in response to the strategic moves by its main customer who has recently built a new plant in the region. The new unit, which was capitalized at 250 million rupees, manufactures and sells automotive seats. (From a press release on Jul 25, 2008)
-The Company invested in installation of production facilities for new models of the new Honda Jazz and Honda City, as well as die assembly in Asia.
Major Capital Investment Projects (As of Mar. 2009)
|Plant||Location||Type of facility|| Planned amount of investment
(in millions of JPY)
|Equipment to manufacture automotive seats and interior products||1,916||Apr. 2009||Mar.2010|
|Motorcycle business, Automotive business, Other
|TS Tech Alabama LLC.||Alabama,
|Equipment to manufacture automotive seats||593||Apr. 2009||Mar.2010|
|TS Tech Do Brasil Ltda.||Sao Paulo, Brazil||Automotive business||684||Jan.2009||Dec.2009|