TS TECH Co., Ltd. Business Report FY ended Mar. 2019
|(in millions of JPY)|
|FY ended Mar. 31, 2019||FY ended Mar. 31, 2018||Rate of Change (%)||Factors|
|Profit for the year attributable to owners of the parent||25,750||30,115||(14.5)|
The Company started using IFRS 15: Revenue from Contracts with Customers starting from the fiscal year that ended in March 2019, which resulted in a decrease in sales of JPY 53,174 million.
-Even though the Company received higher product orders in Japan because OEMs launched new models, overall sales decreased 3.0% year-over-year (y/y) due to lower products sales in China, Other Asia, and Europe; lower sales of dies in the Americas; and negative currency translation.
-Started producing the seats for the all-new Honda N-VAN, CR-V and INSIGHT.
ｰSales and profits: The Company received higher product orders from OEMs who increased production volumes and raised its vehicle-content ratio, and as a result, business results increased 9.9% y/y. However, there was a decrease caused by the end of price adjustments from royalty expenses based on the Japan-USA advanced pricing agreement that was in effect the previous year.
-Operating income: Increased 23.6% y/y due to effective cost-reduction initiatives, even though sales fell because of the above-stated factor.
-Started production of the seats for the all-new Honda Insight and all-new Acura RDX.
-Sales and profits: Even though the Company received higher product orders in the Americas because OEMs launched new models, overall sales decreased 0.9% year-over-year (y/y) due to lower sales of dies and negative currency translation.
-Operating income: Fell 1.5% y/y due to higher costs for materials, even though there was increased revenue, an increase when price adjustments on royalty expenses ended based on the Japan-USA APA; and cost reductions as well.
-Started production of the seats for the all-new Honda ACCORD and all-new Acura RDX.
-Sales and profits: Decreased 12.4% y/y because of lower product orders from OEMS.
-Operating income: Decreased 32.4% y/y because subsidies obtained in the last fiscal year ended when the transfer of the Guangzhou Plant was completed.
-Launched production of seats in India for the redesigned Honda Civic and Amaze, and production in Hungary of third-row seats for the redesigned VW SUV.
-Started construction of addition to TS TECH Bangladesh Limited, in order to increase production capacity.
ｰSales and profits: Decreased 12.1% y/y because customers ordered fewer products and because of changes made to the model lineup , even though sales of parts increased.
ｰOperating income: Decreased 32.9% y/y due to lower income, even though the Company implemented successful cost-reduction initiatives.
Production launch of new models in FY March 2019
|Apr. - Jun. 2018||Jul. - Sep. 2018||Oct. - Dec. 2018||Jan. - Mar. 2019|
|Japan||STEP WGN Modulo X||N-VAN||INSIGHT|
|N-BOX slope version||CR-V||N-BOX|
|FIT MODULO STYLE||STEP WGN|
|STEP WGN Modulo X|
|Americas||CIVIC SI(Brazil)||CIVIC(North America)||ACURA ILX(North America)|
|INSIGHT(North America)||ACURA NSX(U.S.)||CR-V(U.S.)|
|ACURA RDX(North America)||ACCORD(U.S.)|
|ACCORD SPORT||ODYSSEY||ACURA RDX|
|ODYSSEY (version for mobility impaired)|
|Asia, Europa||BR-V(Indonesia)||CITY(Philippines, India)||CR-V(Thailand)||MOBILIO(Indonesia)|
ｰHonda Insight (North America, Japan): Version launched in June 2018. Product order for front seat and door trim. Seat is larger compared to that in the previous model. Equipped with Company's mainframe. 16% lighter than previous seat. Equipped with latest electrical parts to enhance comfort.
Mid-term business plan
-The Company, in launching its 13th mid-term management planed called 2020 Vision: Innovative Quality Company, which covers the fiscal year ending in March 2018 up through the fiscal year ending in March 2020, aims to create the foundation for establishing an ESG-oriented management framework.
-There are three fundamental pillars, outlined below, to becoming the world’s top company through focusing on quality, product competitiveness, localized management, and human-resources development.
- Sustainable business growth
- Diversified management
- Coexistence with the social environment
|(in millions of JPY)|
|FY ended Mar. 31, 2019||FY ended Mar. 31, 2018||FY ended Mar. 31, 2017|
-TS Tech Co., Ltd. announced on 6 December that it has succeeded in the forming of automotive door trims that are 17% lighter than conventional products by using a polypropylene material containing cellulose nanofiber (CNF). CNF reinforced resin, which has high rigidity, is expected to be utilized for the weight reduction of automotive parts. However, it is easily broken and difficult to be formed. TS Tech successfully formed door trims using a material composed of polypropylene and CNF in proportions of 9:1 on a mass basis. It achieved weight reduction by reducing the board thickness from 2 mm to 1.5 mm. TS Tech, as an advisor of the New Energy and Industrial Technology Development Organization (NEDO) for the evaluation of CNF reinforced resin for automotive parts, received CNF sample materials from the organization. While TS Tech faces challenges such as the improvement of impact resistance, the company will try forming other automotive parts and verify the technology for early practical use. (From an article in the Nikkan Jidosha Shimbun on December 7, 2018)
|Technical Center||Tochigi Pref., Japan|
|Engineering Center||Tochigi Pref., Japan|
|Safety Technical Center||Tochigi Pref., Japan|
|TS Tech Americas, Inc.||Ohio, U.S.A.|
|TS Tech Asian Co., Ltd.||Bangkok, Thailand|
|TS Tech Deutschland GmbH||Tappenbeck, Germany|
|Guangzhou TS Tech Automotive Interior Research & Development Co., Ltd.||Guangzhou, China|
|(in million JPY)|
|FY ended Mar. 31, 2019||FY ended Mar. 31, 2018||FY ended Mar. 31, 2017||FY ended Mar. 31, 2016|
-The Company is planning to spend JPY 9,000 million in capital investments in the fiscal year ending in March 2020.