Toyota Boshoku Corporation Business Report FY2008
|Financial overview||(in millions of JPY)|
|FY2008||FY2007|| Rate of
|Sales||979,775||1,233,789||(20.6)||-Sales decreased due to a decline in production of seats and door trims.|
|Operating income||13,292||65,696||(79.8)||-While there were some factors including rationalization, that increased income, income decreased as a result of decline in production and sales, product price fluctuation, a price increasing trend in the market, increased labor costs and exchange fluctuation.|
|Current net income||(5,064)||40,720||-||-|
|Automotive component business|
-The Company supplied the world's first "Mite allergen proofed seat material" for the Crown. This product is designed to inhibit mite allergen which may cause allergies.
-The Company supplied a lightweight seat frame, the "Toyota Boshoku New Generation Seat Frame TB-NF100" to iQ.
-The Company established a production subsidiary for interior components including seats and door trims, Automotive Technology Systems LLC., in Lawrenceville, Illinois, in September 2008.
-The Company established a production subsidiary for interior components including seats, Toyota Boshoku Somain S.A.S., in Somain city, Nord-Pas-de-Calais, France, in October 2008.
-The Company established a production subsidiary for seat frames and seat covers, TBAI Poland Sp.z o.o., in Dolnoslaskie, Poland, in January 2009, as a joint venture with Aisin Seiki Co., Ltd..
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Recent Developments Outside Japan
Restructuring and Enhancing Its Production Structure
-Lear Corporation and the Company have agreed to dissolve a joint venture agreement under which they supply seating systems and other interior components to Toyota Motor Manufacturing Indiana (TMMI) for the Sienna minivan, built in Princeton, Indiana. The existing joint venture will be dissolved with Lear receiving 35 million US$ in exchange for its minority interest in the JV. Lear will supply the Company with certain components for the Sienna minivan program and both parties will continue to compete directly for other business on a Tier 1 basis. Lear and the Company have also agreed to jointly pursue sourcing opportunities for certain seating components as well as purchasing opportunities for key commodities such as steel, foam and textiles.(From a press release on Dec. 2, 2008)
-The Company looks to expand sales of round recliners it manufactures in Thailand to non-Toyota customers, which include General Motors Corporation and Ford Motor Company of the US. A round recliner is a high value-added, round metal component used in an automotive seat adjustment mechanism. The Company has been producing the product in-house at ARST (Thailand) Co., Ltd. in Thailand since 2008. The Group plans to increase the ratio of round recliners made at ARST, which stood at 14 percent on a sales basis in April 2008, to 31 percent by April 2009. The Company aims to use these components in its seat products for vehicles, which will go on sale seven to eight years from now. (From an article in the Nikkan Jidosha Shimbun on Jan. 26, 2009)
-The Company, by signing an agreement with IToFCRI to jointly develop kenaf seeds, has recently launched a full-fledged project for the development of kenaf seeds in Indonesia. The Company has been conducting research activities on utilization of environmentally-friendly kenaf for automotive interior parts since late 1990's. Since then, Abadi Barindo Autotech (ABA), the Company's subsidiary in Indonesia, has carried out an integrated process from cultivation to commercialization of kenaf. A door trim base material using kenaf was first adopted for Toyota Celsior, which debuted in the Japanese domestic market back in 2000. Today, Kenaf is applied to 5 different parts in a total of 27 car models. (From a press release on May 14, 2008)
|R&D Expenditure||(in millions of JPY)|
-The Company worked to reduce the weight and thickness of the seat frame, which was to become a core technology for the Company. The Company developed a new seat frame, "TB-NF100", and supplied this for Toyota's new compact car, "Toyota iQ". The Company also supplied "TB-NF110" for "Toyota Wish", to be launched in April 2009 and "Toyota Prius" to be launched in May 2009. The Company is now developing a more advanced lightweight frame for future projects.
-The Company developed a wire harness for its seat frame. The Company supplied ceiling illumination for "Toyota Crown" and instrument panel illumination for "Daihatsu Move Conte".
-As part of its environment friendly development efforts, the Company replaced part of polyol, which is made of oil and a main material of polyurethane for seat cushion material, with ingredients of vegetable-origin ricinus, which was jointly developed with Toyota Motor Corporation and Mitsui Chemicals, Inc., for the new "Toyota Prius" to be launched in May 2009.
-The Company developed a rear seat large head rest with built-in speaker and movable headrest sides for "Toyota Majesta", a seat with display screen for rear seat passengers for "Lexus RX", and "La Seat" with changeable seat fabric for "Toyota Vitz".
-By 2012, the Company plans to lower the costs for manufacturing automotive interior products made of kenaf fibers to the level equal to those for producing plastic products. Today, the company's kenaf fiber-based products are 30 percent more costly than its conventional plastic components. The Company is set to make them on a par with plastic parts costwise by improving their product design, enhancing manufacturing methods, and raising the yield rate. The Company's kenaf-based substrates are currently used in door trims and seat backboards, which are featured only in some luxury models built by Toyota Motor. In order to gain greater use of such products in other classes of automobiles, the company aims to solve the cost issues, while working on further reducing their product weight. (From an article in the Nikkan Jidosha Shimbun on Jan. 14, 2009)
<Filtration & Powertrain Components>
-In a world first, the Company mounted an OCV (Oil Control Valve) that controls VVT (Variable Valve Timing) on plastic cylinder head covers for "Toyota Yaris".
-The Company supplied plastic intake manifolds for the "Subaru Legacy" launched in May 2009. It developed smaller and lighter products, including a HC absorbing filter, which reduced cost and weight by eliminating the plastic frame, and a fan shroud integrated air cleaner, which integrated fan shroud and air cleaner case in one product.
-Interior air-conditioning system: the Company developed a thinner cabin air filter and other products that responded to customers' needs for microminiaturization.
|Capital Expenditure||(in millions of JPY)|
-Interior components: the Company invested 51 billion 189 million yen in the preparation of a production line for new products including seats and door trims, as well as production preparation in Japan and the Americas.
-Filters and powertrain components: the Company invested 5 billion 222 million yen in the preparation of a production line for new products including air and oil filters.
-Textiles and exterior components: the Company invested 4 billion 83 million yen in the preparation of a production line for new products including bumpers and fender liners.
|New Facilities||(in millions of JPY)|
|Name||Location||Type of facility and activities||Planned investing amount||Start||Finish|
|Sanage Plant||Aichi, Japan||Manufacture of new types of seats and door trims; maintenance and renewal of existing facilities||4,279||Apr., 2009||Mar., 2010|
|Gotenba Plant||Shizuoka, Japan||Manufacture of new types of seats ; maintenance and renewal of existing facilities||3,715||Apr., 2009||Mar., 2010|
|Gifu Plant||Gifu, Japan||Manufacture of a new type of bumper; manufacture of new products||2,529||Apr., 2009||Mar., 2010|
|Kariya Plant||Aichi, Japan||Manufacture of new types of air filters||2,198||Apr., 2009||Mar., 2010|
|Manufacture of new types of door trims; maintenance and renewal of existing facilities||1,100||Apr., 2009||Mar., 2010|
|Tianjin Intex Auto Parts Co., Ltd.||Tianjin China||Manufacture of new types of seats and door trims||4,261||Apr., 2009||Mar., 2010|