Toyota Boshoku Corporation Business Report FY2009

Business Highlights

Financial Overview

(in millions of JPY)
  FY2009 FY2008 Rate of
Change (%)
Sales 953,729 979,775 (2.7) 1)
Operating income 25,143 14,054 78.9 -
Operating income 24,067 13,292 81.1 -
Current net income 6,882 (5,064) - -
Automotive component business
Sales 950,262 976,116 (2.7) -

-Sales decreased due to a decline in production of seats and door trims.

-Despite some positive impact by incentive programs by the government for environmentally friendly vehicles, sales decreased 5.0% from the previous year to 553.6 billion yen largely  due to a decline  in exports, mainly  to North America.  

<North, Central and South America>
-Sales increased 7.0% over a year ago to 164,349 million yen buoyed by increased production of the RAV4 in Canada, new models of the Highlander and Sienna in the U.S. and the Cadillac SRX in Mexico.

-New models like the RAV4 in Tianjin and  the Highlander in Guangzhou, China contributed to boost sales by 1.3% to 196,303 million yen over the previous year. 

-By impact of a dramatic reduction in production due to the sluggish market, sales decreased 20.8% from a year ago to 39,475 million yen. 


-Followings are major contracts from press releases in 2009.
Maker/ Model Products
Toyota Wish New-generation light-weight seat structure
Toyota Crown Majesta Speaker-embedded headrest
Fuji Heavy Industries Legacy Plastic intake manifolds for four cylinder engines
(2.5-liter 4-cylinder horizontally opposed engine)
Toyota i-REAL Ann Ecological plastic technology
Toyota i-REAL kei Ecological plastic technology
Lexus HS250h Ecological plastic technology (Trunk liner, Scuff plate,
Tool box, Cowl side trim, Finish plate)
Toyota Land Cruiser Prado Seat
Toyota SAI Eco-plastic fabrics

Recent Developments in Japan

-The Company announced its project to establish a new automotive seat plant in Ohira, Miyagi Prefecture.

-In Aug. 2009, the Company announced its Fuji-Susono plant located in Susono City, Shizuoka Prefecture, has officially been opened and started production.
>>>See Investment for more details

-The Company announced that it will make its affiliate, Kanto Seat Works Ltd., Kitakami, Iwate-Pref. Japan, its subsidiary through acquisition of new shares to be allocated on Oct. 1, 2009 to a third party. The subsidiary will be named as Toyota Boshoku Tohoku Corp. and the Company's stake will increase to 63.13%. Kanto Seat Works Sagamihara Plant, Sagamihara, Kanagawa Pref., will be transferred to Ohira village, Kurokawa county, Miyagi Pref. because Toyota Motor Corp. subsidiary Central Motor Co. will move from Sagamihara, Kanagawa Pref. to Miyagi Pref. An investment of 835 million yen to buy the new shares will be spent to purchase the site for the Miyagi plant, whose construction will start soon to be completed by August 2010. Production is scheduled to begin in January 2011. The total investment will be approx. four billion yen and the initial production capacity will be seats for 120,000 vehicles per year. (From an article in the Nikkan Jidosha Shimbun on Aug. 3, 2009)

-The Company announced that it has started in-house production of filter elements used in car air conditioning systems. Production of these "cabin air filters" is conducted at its Kariya Plant in Aichi Prefecture. The new operation has allowed the Company to establish an integrated production system, covering from development of materials, production to assembly of filters. In addition, the Company introduced the two-layer melt blow technology to the new line, which enables continuous production of two different filter elements on the same line. These elements were produced separately by using conventional manufacturing methods. The Company's advanced production process achieves enhanced operational efficiency, while ensuring the same high level of performance as products made by use of previous methods. The Company intends to study the possibility of setting up similar production lines at its air filter plants overseas as well, so as to become more competitive in the global filter market for automobiles. (From an article in the Nikkan Jidosha Shimbun on Oct. 6, 2009)

-The Company announced the merger of two of its Japanese subsidiaries. As of Dec. 1, 2009, TB Iwate was merged into Toyota Boshoku Tohoku Corporation, based in Kitakami City, Iwate Prefecture. Prior to the transaction, TB Iwate served as a satellite shop located in the Iwate Plant of Kanto Auto Works, Ltd. and manufactured fender liners and engine undercovers. The operation, which is now part of Toyota Boshoku Tohoku, will remain at the current location with identical product lineup. (From a press release on Dec. 1, 2009)

Recent Developments Outside Japan

-The Company has decided to close its subsidiary manufacturing seat covers in Kentucky, U.S.A. at the end of June 2009. It is a part of reorganization of its production operations to address its largely falling operation rate triggered by a drop in auto production. The Company's plant in Mexico will be responsible for the items produced in Kentucky and seat cover manufacturing in North America will therefore be concentrated in Mexico. The Richfield plant of Toyota Boshoku America, Inc., currently manufacturing seats for the Toyota Lexus RX produced in Canada, will be closed. All the 300 employees have accepted voluntary retirement and will leave the plant between April and June. The Company is considering possible use of the closed plant as its distribution center. From July, seat covers for the Lexus RX will be manufactured at the Chavez plant of TB de Mexico, S.A. de C.V., Coahuila, Mexico. (From an article in the Nikkan Jidosha Shimbun on Apr. 16, 2009)

Joint Ventures

-The Company, Toyota Tsusho Corporation, and Kawashima Selkon Textiles Co., Ltd. announced that the three companies have established a joint-venture company, which integrates their interior material business for transportation equipment including automobiles. Through this establishment, the three companies, which now have a combined market share of 15 percent in the world by generating approximately 30 billion yen in sales per year in the field, aim to become the world's largest player by doubling their share to 30 percent. The consolidation is intended to streamline their business by eliminating redundant operations, while strengthening their development activities to fit each automaker's requirements. This will be made possible especially through the collaboration between the Company, which produces complete seat systems, and Toyota Tsusho, which sells these products. The joint-venture company, TB Kawashima (Sales office: Kariya City, Aichi Prefecture; headquarters: Aisho Cho, Shiga Prefecture), is capitalized at 1 million yen, with the Company and Kawashima Selkon investing a 39 percent each and the Toyota Tsusho Group providing the remaining 22 percent. The three companies plan to raise the capital to 490 million yen on April 1, 2010. (From an article in the Nikkan Jidosha Shimbun on Dec. 24, 2009)

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

Outlook for FY2010

(in billions of JPY)
FY2009 Year-on-year Fluctuation
Sales 9,500 9,537 (37)
Operating income 270 251 19
Ordinary income 260 240 20
Net income 70 68 2
Investment Expenditure 540 430 110
-Japan 305 217 88
-North, Central and
South America
60 71 (11)
-Asia 110 109 1
-Other 65 33 32

Sales by Geographic Area

(in billions of JPY)
FY2009 Year-on-year Fluctuation
-Japan 5,550 5,909 (359)
-North, Central and
South America
1,550 1,664 (114)
-Asia 2,350 2,032 318
-Other 480 398 82

Sales by Business

(in billions of JPY)
FY2009 Year-on-year Fluctuation
Interior components 8,480 8,484 (4)
Filters and powertrain components 710 721 (11)
Textiles and exterior components 310 330 (20)


R&D Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Overall 30,021 28,968 31,717

Product Development

New-generation light-weight seat structure
-The Company announced that its second new-generation light-weight seat structure, TB-NF110, jointly developed with Toyota Motor Corp., has been selected for the new Toyota Wish. Ride comfort has been pursued as well as lighter weight and further resource saving compared to the conventional model, which was selected for the previous Wish. By using 980 MPa high-tensile steel as a part of the frame materials and reviewing the frame structure and parts forms, parts items, joints and quantity have been reduced approximately by 25%, 25% and 10% respectively. Some parts have jointly been developed with Aisin Seiki Co., Ltd. and Shiroki Corp. Following the TB-NF100 selected for the iQ compact car, the TB-NF110 is the second of the company's new-generation seat structure series to be expanded in the future. (From an article in the Nikkan Jidosha Shimbun on Apr. 10, 2009)

Speaker-embedded headrest
-The Company announced development of a speaker-embedded headrest, which Toyota Motor Corp. (TMC) has decided to adopt for the new Crown Majesta. This will enable a rear seat passenger to enjoy more lively sound of the audio system as sound will come from a speaker at his/her ears. The angle of the headrest support section can be adjusted as desired. This newly developed headrest has been selected for the highest grade model of the Crown Majesta, the G Type "F Package." Although adjustable headrest support sections have been adopted by the Toyota Alphard for its second-row seats, this is the world's first speaker-embedded model, jointly developed by TMC, Kanto Auto Works, Ltd., responsible for the vehicle design, and Fujitsu Ten Ltd., a car audio supplier. A mesh structure material is used for the inside of the left and right headrest support sections, in each of which a speaker is built in. The genuine leather surface has small holes to make sound travel easily. (From an article in the Nikkan Jidosha Shimbun on May 15, 2009)

Ecological plastic technology
-The Company announced that its ecological plastic technology developed jointly with Toyota has been applied to interior trims in Toyota's personal mobility vehicles (single-person transportation tools), "i-REAL Ann" and "i-REAL Kei." The supplier has developed 100 percent plant-based side trims from eco-plastic materials that combine kenaf fibers capable of absorbing high volume of carbon dioxide with starch-derived polylactic acid. It has also developed seat covers and side trim skins from polylactic acid materials partly replacing petroleum-based olefin plastics. (From an article in the Nikkan Jidosha Shimbun on July 30, 2009)

-The Company announced that it has developed a series of vehicle interior components by using the ecological plastic technology engineered by Toyota Motor Corporation. The new products, such as trunk liner made from nonwoven eco-plastic, and injection molded scuff plates using the eco-plastic material, are featured on the Lexus HS250h hybrid-only vehicle. The Company developed the nonwoven fabric for the entire luggage liner by replacing part of the oil-based polyethylene terephthalate used in conventional linings with plant-based polylactic acid. Also, by developing optimum molding techniques, product design, and molding conditions, the Company engineered injection-molded eco-plastic products, which offer the same levels of performance, quality, and aesthetic property as conventional products. In addition to scuff plates, applications of the technology include tool boxes, cowl side trims, and finish plates. (From an article in the Nikkan Jidosha Shimbun on July 30, 2009)

-The Company announced that it has developed seats for the new Toyota Land Cruiser Prado, jointly with Toyota Motor Corp. and other firms. Its new power seat with the new-generation seat frame is used for the front seat and another new seat whose new structure improves passengers' comfort and increases the cargo room is used for the second- and third-row passenger seats. Jointly with Shiroki-Brose Corp, Toyota Boshoku has developed the power front seat using the manual type of the next-generation seat frame, TB-NF110, as a base. By sharing the basic seat frame with the manual type used in the Wish and the Prius, both parts items and joints have been reduced by approx. 25% compared to the previous Prado. The weight has been cut by approx. 10% compared to the previous type.(From an article in the Nikkan Jidosha Shimbun on Sep. 17, 2009)

Eco-plastic fabric
-The Company announced that it has developed jointly with Toray Industries, Inc. and Toyota Motor Corporation eco-plastic fabrics, which will be used for the ceiling and internal pillars of Toyota's new hybrid "SAI". The new plastic material is made of plant-based polyester combined with the conventional polyethylene telephthalate (PET). This is apparently the world's first application of eco-plastic material to interiors of mass production models. (From an article in the Nikkan Jidosha Shimbun on Nov. 17, 2009)

Investment Activities

Capital Expenditure

(in millions of JPY)
  FY2009 FY2008 FY2007
Total 43,076 60,496 52,961

-Investments totaling 36,707 million yen were made in the interior components  for new products like seats and door trims, construction of a new plant in Fuji-Susono and an increase in production in China and North and Central Americas. 
-Filters and powertrain components: the Company invested 2 billion 846 million yen in the preparation of a production line for new products including air and oil filters.
-Textiles and exterior components: the Company invested 3 billion 522 million yen in the preparation of a production line for new products including bumpers and fender liners.

Investments in Japan

-The Company announced its project to establish a new automotive seat plant in Ohira, Miyagi Prefecture. This move is based on the plans of Central Motor Co., Ltd., Toyota Motor's car body production subsidiary in Sagamihara, Kanagawa Prefecture, to transfer its headquarters and production facility to the same area. The Company, which is planning to start production operations at the end of 2010, will ensure a stable seat supply system for Central Motor. After making arrangements with the local governments, the Company will acquire 5 hectares of land at the No.2 Sendai Hokubu Chukaku Industrial Park for the new facility. The Company will determine the scale of the investment and new operations based on Central Motor's intention to manufacture yearly 120,000 units at its new Ohira facility.(From an article in the Nikkan Jidosha Shimbun on July 30, 2009)

-The Company announced its Fuji-Susono plant located in Susono City, Shizuoka Prefecture, has officially been opened and started production in Aug. 2009. The new facility manufactures automotive seats and door trims - the activities the company plans to shift from its plant in Gotenba. The site has annual production capacities of 240,000 units for seats and 290,000 for door trims. The completion of transfer procedures will occur in May 2010. (From a press release on Sep. 10, 2009)

New Facilities

(in millions of JPY)
Name Location Type of facility and activities Planned investing amount Start Finish
Sanage Plant Aichi Pref.
Manufacture of new types of seats and door trims; maintenance and renewal of existing facilities 11,679 July,
Kariya Plant Aichi Pref.
Manufacture of new types of air filters 3,258 Apr,
Oguchi Plant Aichi Pref.
Manufacture of new products, including molded ceilings and fender liners, and maintenance and renewal of equipment 1,336 Apr,
Toyota Boshoku Tohoku Iwate Pref.
Equipment at the new plant
6,194 Apr,
Toyota Boshoku Somain S.A.S. Nord-Pas-de-Calais,
Manufacture of new  seating products 3,548 Apr,