TS Tech Co., Ltd. Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of Change(%) Factors
Sales 317,990 404,761 (21.4) 1)
Operating income 9,598 16,093 (40.4) -
Ordinary income 11,436 14,962 (23.6) -
Net income 6,328 4,741 33.5 -

-Sales declined 23.7 percent to 110,207 million yen from the previous year due to a decrease in orders from main customers, change in products mix and a decline in sales of parts supplied from Japan to overseas markets. 

<North America>
-Despite almost the same level of orders received from leading customers, the negative impact of currency translation and  change in products mix  combined to reduce sales 14.1 percent to  117,893 million yen from a year earlier.  

-Despite stable order trends  from leading customers in Guangzhou and Wuhan, a decrease in sales from Ningbo to other regions and the negative impact of currency translation slightly decreased sales by 1.4 percent from the previous year to 66,997 million yen. .

-Sales fell significantly  42.5 percent from a year ago to 46,620 million yen, affected by a 4-month long stoppage of production at the subsidiary in the U.K., a decline in orders in Asia ain general, and the negative impact of currency translation. 

-Seat production for the new Honda Stepwagon  commenced. 

<North America>
-Production started of  seats for the new Acura ZDX  and seats and door trims for the new Honda Accord  Crosstour.  ア

-Production started of seats and door trims for the new Honda Odyssey . 

-Production started of seats for the new Honda City in Brazil and seats for the new Honda Freed  in Indonesia. 

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

Outlook for FY2010

(in millions of JPY)
FY2009 Rate of Change(%)
Sales 366,600 317,990 15.3
Operating income 17,500 9,598 82.3
Ordinary income 19,000 11,436 66.1
Net income 10,200 6,328 61.2

Sales by Region

(in millions of JPY)
FY2009 Rate of Change(%)
Japan 122,220 110,207 10.9
North America 133,620 117,893 13.3
China 79,240 66,997 18.3
Other regions 58,010 46,620 24.4


R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Group 9,617 10,874 11,222
Automotive business 8,890 9,879 10,239

R&D Facilities

Technical Center Tochigi Pref., Japan
TS Tech North America, Inc. Ohio, U.S.A.

R&D Activities

1.Safety 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.

2.Environemntal technology
-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.

3.Comfort technology
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.

-Development and commercialization of:  Tip-up & long sliding mechanism, air conditioning seat, power-operated  folded down headrest, tip-up one motion dive-down rear seat, rear ultra seat, storage space under the third-row seat. 

-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.

Product Development

Seat mechanism
-The Company announced that it has developed a new seat mechanism, which improves occupant safety at the time of a frontal collision. The Company says it will propose this technology to automakers, aiming to turn it into a practical business solution by 2012. The crash safety seat is equipped with a gas generator, which will be activated at the time of a collision to pull back the seat. This will mitigate the occupant body's moving forward, contributing to minimizing possible injuries. The new complete seat mechanism uses two actuators placed under the seat. When a sensor detects a collision, these actuators are activated to draw the wrap belt to restrain occupant's lumbar part, while pulling the seat backwards with its front edge being lifted. According to the result of a 35 miles/hour full wrap testing on a passenger vehicle, the seat system reduces the distance the occupant moves forward at the time of an impact by half. Use of this new seat technology also eliminates the need to install a knee airbag. (From an article in the Nikkan Jidosha Shimbun on Oct. 26, 2009)

Investment Activities

Capital Investment

(in millions of JPY)
  FY2009 FY2008 FY2007
Group 8,382 13,547 19,232
Automotive business 6,921 12,684 18,366

Automotive business
-Capital investments were made in introduction of production equipment and die making mainly for the New Honda Stepwagon in Japan, the new Honda Accord Crosstour and the new Acura ZDX  in North America, as well as projects related to the new plant  in Brazil  that went into operation in May 2008.  

Major Capital Investment Projects

(As of Mar. 31, 2010)

Plant Location Type of facility Planned amount of investment (in millions of JPY) Start End
Saitama Plant
Gyoda city,
Saitama Pref.
Equipment to manufacture automotive seats and interior products 1,935 Apr. 2010 Mar.2011
Suzuka Plant Suzuka City,
Mie Pref.
Equipment to manufacture automotive seats and interior products
893 Apr. 2010 Mar.2011
Kyusyu T.S Co.,Ltd. Kikuchi City,
Kumamoto Pref.
Equipment to manufacture motorcycle  seats and parts, as well as automobile interior and exterior products   500 Apr. 2010 Mar.2011
TS Tech (Thailand) Co., Ltd.. Ayutthaya, Thailand Equipment to manufacture automotive seats and interior products 802 Jan.2010 Dec.2010
Wuhan TS-GSK Auto Parts Co., Ltd. Hubei, China Equipment to manufacture automotive seats and interior products 534 Jan.2010 Dec.2010