Kyowa Leather Cloth Co., Ltd.

Company Profile

■URL

https://www.kyowale.co.jp/en/

■Address

1876 Higashi-machi, Minami-ku, Hamamatsu-shi, Shizuoka-ken, 430-8510, JAPAN

Business Overview

-The Company, a member of the Toyota Group, specializes in synthetic resin leather and film.
-The Company manufactures and sells automotive products, as well as housing, fashion, and interior products.
-The Company has a 70% share of the synthetic leather cover materials for automotive interior products in Japan (according to the Company's own survey).

Financial Highlights

-In the fiscal year ended March 2016, the Company generated sales of JPY 47.92 billion (up 6.2% on a year-over-year (y/y) basis), ordinary profit of JPY 3.69 billion (up 40.1% y/y), and net income (attributable to owners of parent company) of JPY 2.15 billion (down 39.1% y/y) on a consolidated basis. Sales of automotive products reached JPY 35.86 billion (up 9.5% y/y), which accounted for over 74% of overall sales and boosted the Company's revenues.

Mid-term business plan

-Under a new management structure established on June 25, 2015, the Company announced "2020 Vision" a 5-year business plan that covers through March 2021. The plan includes enhancement of the Group's production operations by increasing the number of production bases to 5 from the current 4. (From a press release on July 30, 2016)

<Financial targets for FY 2020> (Consolidated basis)
Sales: JPY 60 billion
Operating profit: JPY 5.5 billion (operating profit margin: 9.2%)

Shareholders

-Listed on the first section of the Tokyo Stock Exchange. (As of Mar. 31, 2016)
Name or Company Name Investment Ratio (%)
Toyota Motor Corp. 34.12
Toyota Tsusho Corporation 6.34
Hayashi Telempu Co., Ltd. 4.24
Resona Bank, Limited 3.52
Japan Trustee Services Bank, Ltd. (Trust Account) 3.30
Kisco Ltd. 3.12
The Master Trust Bank of Japan, Ltd. (Trust Account) 1.66
Sumitomo Chemical Company, Limited 1.63
CBNY DFA INTL SMALL CAP VALUE PORTFOLIO 1.44
Mitsui Sumitomo Insurance Co., Ltd. 1.27
Total 60.69

Products

Automotive interior covering materials
-Urethane products used for:

  • Seats
  • Door trim
  • Door ornaments
  • Arm rests
  • Instrument panels
  • Console boxes
  • Steering wheels
  • Shift lever boots

- Olefin products used for:

  • Instrument panels
  • Tonneau covers
  • Head linings
  • Roofs

-Vinyl chloride products used for:

  • Seats
  • Door trims
  • Door ornaments
  • Arm rests
  • Console boxes
  • Shift lever boots
  • Tonneau covers
  • Sunvisors
  • Roofs

History

Aug. 1935 Fuji Kakuhu Co., Ltd.; Asahi Leather Co., Ltd.; Dainippon Co., Ltd; and Nippon Gikaku Co., Ltd. all merged to form Kyowa Leather Cloth Co., Ltd.
Jun. 1942 Set up Tokushima Factory in Naruto, Tokushima
Apr. 1944 Renamed as Kyowa Kouku Kakou.
Dec. 1945 Renamed Kyowa Kakou.
Oct. 1947 Name changed back to Kyowa Leather Cloth Co., Ltd.
Nov. 1948 Acquired Shinko Kokusaku Kogyo.
Jan. 1949 Started producing vinyl chloride leather
Apr. 1957 Listed on the Tokyo over-the-counter market
Sep. 1961 Listed on the Tokyo Stock Exchange
Mar. 1962 Listed on the Osaka Securities Exchange (Delisted in February 2004)
Dec. 1968 Established 1st Tenryu Plant in Hamamatsu, Shizuoka
May 1974 Established 2nd Tenryu Plant in Hamamatsu, Shizuoka
Sep. 1978 Moved headquarters from Sumida-ku, Tokyo to Hamamatsu, Shizuoka
May 1981 Established Shinshiro Plant in Shinshiro, Aichi
Feb. 1997 Established Kyowa Leather Cloth U.S.A. INC. (Liquidated in September 2008)
Jun. 2000 The entire Company obtained ISO14001 certification.
Jan. 2002 Established Thai Nam-Kyowa Company Limited in Thailand.
Apr. 2004 Established Kyowa-GSK Industry (Langfang) Co., Ltd.
Oct. 2011 Changed Kyowa-GSK Plastics (Langfang) Co., Ltd. to a consolidated subsidiary
Apr. 2015 Brought a decorative roof film product to market, in collaboration with an automotive manufacturer
Apr. 2015 Formulated and announced the company's mid-term business plan, "2020 Vision"

Supplemental Information 1