Tokai Rika Co., Ltd. Business Report FY ended Mar. 2020
Financial Overview
(in millions of JPY)
| FY ending Mar. 31, 2020 | FY ending Mar. 31, 2019 | Rate of Change (%) | Factors | |
| Overall | ||||
| Sales | 500,002 | 507,645 | (1.5) | -Sales results include the impact on business (JPY 8,600 million) from the coronavirus. |
| Operating income | 22,597 | 29,618 | (23.7) | -Results for operating income include the impact on business (JPY 3,000 million) from the coronavirus. |
| Ordinary profit | 22,914 | 30,110 | (23.9) | - |
| Current net income | 15,067 | 18,090 | (16.7) | - |
| Sales by Geographic Area | ||||
| -Japan | 304,695 | 251,421 | 0.5 | -Greater sales of products equipped on new models. |
| -North America | 102,291 | 104,329 | (2.5) | ｰNorth American business results reflect the change that the Company made to its financial reporting standards, in addition to other factors. |
| -Asia | 132,514 | 118,401 | (2.6) | -Decreased sales of products to major customers. |
| -Other | 30,843 | 33,492 | (8.7) | - |
Business Developments
<Digital Key Systems>
Launched business operations based on technology for key recognition systems operated via smartphones and technology for streaming/delivering digital-key systems
-The Company will commercialize its automotive key authentication and digital distribution technologies utilizing smartphones in consideration of deregulation by the Ministry of Land, Infrastructure and Transport. The Company, armed with its reliability achieved from automotive key devices, intends to promote these technologies to automakers, as well as related devices and services for corporate and shared vehicles. The newly developed digital key communication technology utilizes Bluetooth communications, which are widely used for smartphones. The technology uses a frequency bandwidth higher than that of existing smart keys, and offers radio waves with a high level of straightness. The company achieved the operation of digital keys by devising technologies such as smartphone position determination technology. In May 2019, the Company signed a joint development agreement with Datatec Co., Ltd., an operation management device and service company (Datatec, Ota Ward, Tokyo), and started the development of a digital key distribution system that is tied to operation management, by combining the Company’s digital key communication and distribution technologies with Datatec’s operation management technology. The company aims to add a billing function in the future. (From an article in the Nikkan Jidosha Shimbun on September 25, 2019)
Launched experimental service on digital-key systems for commercial vehicles
-The Company announced that it has launched a demonstration with Kimura Unity Co.,Ltd (Kimura Unity) of a service for company vehicles, which utilizes digital key system. Kimura Unity is a company providing logistics services and automotive services. By distributing digital keys that are reserved via a mobile application, it is possible to lock and unlock the vehicle’s doors so that company vehicles can be used without handing over actual keys. The company intends to increase the demonstration range to achieve practical use during 2020. (From a press release dated March 17, 2020)）
Signed an agreement with Data Tech on joint-development activities
-The Company announced that it has signed a joint development agreement with Data-Tec to expand its business area. Data-Tec has a proven track record of developing a mobility service utilizing a cloud platform. The Company combines its key authentication and digital key distribution system and Data-Tec’s vehicle driving operation management and safe driving diagnosis technology. It will enable them to provide new vehicle operation system. (From a press release on May 13, 2019)
R&D Activities
ｰMajor R&D activities by product in the fiscal year that ended in March 2019 are as follows.
Switches
-Lever combination switch that features enhanced design and operability
-Drive-mode selection-switch that saves space while featuring a more luxurious look and feel
Shifting levers
-Standardizing and downsizing shifting levers for automatic transmissions.
-Increasing product range of by-wire shifting levers.
Security systems
-Low-cost smart-key systems designed to promote more sales of small-sized vehicles.
-Keys designed for use on car-sharing vehicles.
Safety systems
-Motorized seatbelts equipped with next-generation, standardized retractors, which meet the needs for downsizing.
-Increasing product range of low-cost door mirrors
-The world’s first digital exterior-mirror to be mounted on a commercial vehicle
Other business sectors
-Steering wheel with a more elegant look of blue patina
-Mass-producing shifting nobs making use of new, hand-sewn leather.
Product Development
Seatbelts offering both safety and comfort
-The Company has developed the Comfort & Safety Seatbelt system to achieve better fitting of seatbelts and notify of risk and warn the driver interfaced with safety devices. The company will propose the system to automakers in preparation for an aging society and the spread of autonomous driving technologies. When fitting the seatbelt, the fitting part moves forward and the buckle rises, allowing occupants to wear seatbelts without twisting the body. Also, the system slightly draws in the belt when a vehicle approaches the curve to fix the upper body of the occupants and draws in the belt intermittently to warn the driver. The system needs a control unit, but the cost was reduced by applying the motor for belt retractors. The system is on display at the Tokyo Motor Show. (From an article in the Nikkan Jidosha Shimbun on October 28, 2019)
At the Tokyo Motor Show, exhibited the latest products such as a mock-up of a future cockpit
-The Company announced that it will showcase cockpit mockup and some of its latest products at the Tokyo Motor Show. The cockpit mockup will demonstrate a user experience (UX) - centered interactive interface between people and mobility realized through sensory communication. For products exhibition, the company will display armrest integrated touch-pad which was developed to ensure stable operation while driving and convenience in various situations. Comfort and safety seatbelt which enhances comfort through motors to achieve a better fitting ensures safety and peace of mind through notifications and warnings to occupants will be presented. Next-generation door entry image recognition system will also be on display, which combines smartphone key technology with image recognition to provide personalized services. This system also supports smooth entry into the vehicle by allowing users to open the door using gestures. (From a press release on October 10, 2019)
>>>Click here to view product images
Steering switch
-The Company has developed a new steering switch equipped with touch pads. Use of the new steering switch can reduce the number of parts, and it is easy to deal with functional updating after release. The company has been promoting it as a human-machine interface (HMI) part to Toyota Motor Corporation and other automakers aiming to start supply as early as 2021. (From an article in the Nikkan Jidosha Shimbun on, July 18, 2019)
Commercial Alliances |
(As of Mar. 31, 2020) |
| Company name | Company to tie-up | Details |
| Tokai Rika Co., Ltd. | Toyoda Gosei Co., Ltd. | Partnered with Toyoda Gosei and formed a business to develop, design, sell, and manufacture an integrated safety system that incorporates airbags, seatbelts, etc. The scope of the partnership is worldwide. |
R&D expenses |
(in millions of JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | |
| Japan | 27,533 | 25,224 | 24,727 |
| North America | 586 | 631 | 671 |
| Overall | 28,119 | 25,856 | 25,398 |
Capital Expenditure |
(in millions of JPY) |
| FY ended Mar. 31, 2020 | FY ended Mar. 31, 2019 | FY ended Mar. 31, 2018 | |
| Overall | 23,065 | 25,307 | 20,139 |
-In the fiscal year that ended in March 2020:
- Japan: JPY 13,656 million
- North America: JPY 3,811 million
- Asia: JPY 4,284 million
- Other: JPY 1,315 million
-Plans to spend a total of JPY 23,000 million, mainly on the automotive-parts business.
Investments outside Japan
＜Mexico＞
-The Company will expand its operations in Nuevo Leon with an investment of MXN 40 million. The expansion is expected to generate 767 new jobs. (From multiple sources on December 13, 2019)
New Equipment Installations |
(As of Mar. 31, 2020) |
| Plant | Location | Type of facility | Estimated amount of investment (in million JPY) |
Project Period | |
| From | To | ||||
| Headquarters/Headquarters Plant | Aichi Pref., Japan |
Facility to produce, assemble, and test switches and electronics products | 5,071 | Apr. 2020 |
Mar. 2021 |
| Toyota Plant | Aichi Pref., Japan |
Facility to produce , assemble, and test seatbelts and accessory parts | 1,617 | Apr. 2020 |
Mar. 2021 |
| Otowa Plant/Hagi Plant | Aichi Pref., Japan |
Facility to produce , assemble, and test key locks and steering wheels | 4,546 | Apr. 2020 |
Mar. 2021 |
Outlook for FY ending Mar. 31, 2021 |
-The Company did not release a business forecast for the fiscal year ending in March 2021 due to the difficulty of projecting a forecast in light of the global coronavirus pandemic.