Toyota Boshoku Corporation Business Report FY ended Mar. 2016

Financial Overview

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 Rate of
Change (%)
Sales 1,415,772 1,305,502 8.4 -Higher unit production in Asia and Oceania; gains due to favorable currency translation.
Operating income 59,492 32,393 83.7 -Negative factors: Production preparations expense with major vehicle model changes and increased other expense.
-Positive factors: Influence of an increased sales amount, rationalization etc.
Ordinary income 56,123 41,091 36.6
Net income 3,900 5,204 (25.1)

Introducing product-based business units

-The Company announced that it will change its operating structure on April 1 by introducing product-based business units. The Company's operating structure has been divided by functions, such as development, but the new business units will comprehensively handle the planning, development and production preparation of their respective products, such as seats. The Company will establish a new product-based organizational structure comprised of "the seat business division," "the interiors and exteriors business division" and "the modular components business division." (From an article in the Nikkan Jidosha Shimbun on March 4, 2016)

Acquisition of Seat Structure Business

-On May 13, 2015, the Company, Aisin Seiki Co., Ltd., and Shiroki Corporation announced that they have signed a contract under which Aisin Seiki and Shiroki will transfer their seat structure business to Toyota Boshoku. In accordance with this agreement, the Company integrates seat recliner and seat rail development and production operations at Aisin Seiki and Shiroki into its own operations, effective November 2015.

Reorganization of European business

-The Company announced that will sell interior decoration business except for Toyota in Europe on March 31, 2016. Selling three of the European production and sales subsidiary and development function of the interior equipment in the European unification company to Megatech Industries AG (Vaduz, Principality of Liechtenstein). Establish a joint venture with Megatech and continue the natural fiber door trim business which applied molding technology. Due to this restructuring, approximately EUR 172 million recorded extraordinary losses in the end of March 2016.

  • Stock transfer: Transfer all stocks of Boshoku Automotive Europe GmbH (Geretsried, Germany), Boshoku Automotive Poland Sp. z o.o., and Boshoku Automotive Czech, s.r.o.
  • Partial business transfer: Transfer management and development function of interiors business excluding automotive seat business in Munich branch of Toyota Boshoku Europe N.V. (Zaventem, Belgium).
  • Establishment of joint venture: Signed a contract to establish Megatech Boshoku Europe s.r.o (Plzen, Czech Republic) about door trim business that utilizes natural fibers forming technology in June 2016.


Seat for new Prius
-Developed a new seat standard frame based on Toyota New Global Architecture (TNGA) and adopted new Prius.

Seat created utilizing the Foam In Place Method
-Seat created utilizing the Foam In Place Method was adopted Lexus "GS F" . This seat is extending adoption such as Lexus "IS F SPORT", "RC F" and Toyota "MIRAI".

Royal Lounge Seat
- The Company announced that it will supply its specialized luxury seats for the Alphard Royal Lounge and Royal Lounge SP, which will be released by Toyota Modellista International Corporation. The Royal Lounge editions are designed based on a concept of offering ultimate comfort and hospitality to passengers. The highest-grade seat features a massage function, stowaway tray tables, reading lamps and other functionalities. (From an article in the Nikkan Jidosha Shimbun on November 16, 2015)

Washable Cover Seat
-The Company has developed a new detachable and washable seat cover "Washable Cover Seat." The new seat cover has been selected for the "Porte F "a la mode Trois" and the "Spade F "Queen" special versions released by Toyota Motor Corporation. (From an article in the Nikkan Jidosha Shimbun on July 30, 2015)

R&D Expenditure

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014
Overall 38,450 38,821 40,189

R&D Structure

-Complete product development in areas where customers are located, leaving cutting-edge and advanced R&D activities to be carried out in Japan.

Area Location
Japan -The Sanage Technical Center (Aichi Pref.
-Oguchi Development Center (Aichi Pref.)
-Kariya Development Center Research Laboratories (Aichi Pref.)
-Tajimi Technical Center (Gifu Pref.)
North, Central and South America Michigan, USA (Technical Center)
California, USA (Silicon Valley Office)
China Shanghai, China (Research and Development Center)
Asia/Oceania Bangkok, Thailand (Research and Development Center)
Europe Milan, Italy (Design studio)

-In March 2016, the Company announced that it will establish a new office in San Jose, California in the U.S. on April 1. Designated the "Silicon Valley Office," this site will conduct research and analysis on autonomous driving and other advanced technologies. The Silicon Valley Office will serve as an R&D base for Toyota Boshoku's U.S. unit. The new office will work hand-in-hand with Toyota Boshoku's fundamental research centers in Japan and other facilities in order to strengthen the group's development of next-generation technologies. The staff at the new office will be made up of 3 employees, with 2 from Japan and 1 from the company's European head office. (From an article in the Nikkan Jidosha Shimbun on March 25, 2016)

-Toyota Boshoku China held an opening ceremony at its new location in the Shanghai Free-Trade Zone. The new headquarters and the R&D center were constructed on 18,700 square meters of land. The R&D facility is one of Toyota Boshoku's five major R&D centers in the global market. Nearly 200 engineers engage in developing auto parts such as seats, interior trims, filters, and engine components at the China R&D center. (From news releases issued by multiple sources on November 25, 2015)

-Tajimi Technical Centre : Operation started in April, 2015. Lot size about 360,000 square meters , about 140,000 square meters of test course area. Orbit channel length 1800 meters and 670 meters of straight line.

R&D Activities

Sokuryo seat
-Developed "Sokuryo seat" which utilize the cold wind of the air-conditioner and cool it immediately.

High-performance oil mist separator
-The Company will promote its oil mist separators that remove engine oil from blow-by gas. The separator uses a high-performance filter to improve the oil mist collecting performance. Presently, the separator is mainly targeted at diesel engines that emit fine oil mist particles. The Company will develop the separator for use in internal combustion gasoline engines to meet growing demands for more environmentally friendly engines. The Company will also supply oil mist separators integrated with an engine head cover to increase separator sales. (From an article in the Nikkan Jidosha Shimbun on July 4, 2015)

Capital Expenditure

(in millions of JPY)
FY ended Mar. 31, 2016 FY ended Mar. 31, 2015 FY ended Mar. 31, 2014
Total 36,898 50,190 51,116

-The Company invested the following amounts to mainly develop new products and rationalize/renew production facilities.

  • Japan: JPY 15,141 million
  • North/Central/South America: JPY 5,149 million
  • Europe/Africa: JPY 4,300 million
  • Asia/Oceanian: JPY 12,307 million (for new plant building at Shenyan Toyota Boshoku Automotive Parts Co., Ltd.)

New Facilities

(As of March 31, 2016)
Name Location Type of facility and activities Planned investing amount
(in millions of JPY)
Start Finish
Sanage Plant Aichi Pref.
Manufacture of new types of seats and door trims; maintenance and renewal of existing facilities 6,932 Apr.
Kariya Plant Aichi Pref.
Manufacture of new types of air filters; maintenance and renewal of existing facilities 2,972 Apr.

Forecast of FY March 2017

(in millions of JPY)
FY ending Mar. 31, 201
FY ended Mar. 31, 2016
(Actual result)
Rate of change (%) Factors
Revenue 1,330,000 1,415,772 (6.1) -Predicts declines revenues and profits due to influence of the exchange and up-front expenses.
Operating Profit 52,500 59,492 (11.8)
Profit for the yea 52,500 56,123 (6.5)
Profit for the year attributable to owners of the parent 29,000 3,900 643.5

>>>Forecast for next year

-Predicts 7,380,000 units production of seats in FY ending March 2017 (4.1% year-on-year increase), comparing to 7,090,000 units production of seats in FY ended March 2016.

-Top priority to investment for the constitution reinforcement.