Summary of Business and Achievements

  • We will support the TS TECH Group’s growth strategy by leveraging our sound financial foundation to achieve the medium-term management plan as well as additional business growth in the future.

    Atsushi Igaki
    Director,
    Corporate Business Administration Division
    Executive General Manager

Using Financial Strategies to Support Business Growth

Under the 13th Medium-Term Management Plan, the Group has established the “Use of financial strategies to support business growth” as one of its corporate initiatives and has been working to solidify the foundation for the company’s further growth from a financial point of view.

As we operate globally (68 locations in 14 countries), we have allotted reserve capital to be retained in light of risks in each region and country, and we are carefully investigating funds available for growth investment from a medium- to long-term standpoint in order to achieve business growth.

As part of efforts that center on securing new commercial rights from major customers as well as expanding business through sales to new customers, the TS TECH Group is formulating strategic investment plans that do not just focus on increased production capabilities and the creation of new locations but also measures such as the development of advanced technology to create new added value or stronger cost competitiveness. Using the sound financial foundation that we have constructed, we will continue to effectively and strategically utilize the Group’s capital in regions and fields where growth is expected by building a global cash management system that spans all regions and countries.

Supported by high profitability to date, the TS TECH Group has a low interest-bearing debt ratio (0.09% in the fiscal year ended March 2019), and has flexibly developed its business, operating on a self-funded basis. Going forward, we will continue to make proposals from a financial point of view that contribute to management, sound warnings when necessary, and build a financial structure that ensures sustainable business growth.

Results by Segment for the Fiscal Year Ended March 2019

Japan

In the fiscal year under review, the Group launched production of seats for Honda’s new N-VAN, CR-V, and Insight.

In order to accommodate minicar seat production increases and new model production launches, we worked to implement a highly efficient production system through measures such as revamped plant layouts, automated loading processes, and the installation of collaborative robots.

Americas

In the fiscal year under review, the Group launched production of seats for the new Honda Insight and new Acura RDX.

We worked to create a highly profitable structure through measures such as quality cost control through enhanced quality assurance capabilities at each process. Additionally, construction began on a logistics center in Ohio, U.S.A. that aims to make logistics even more efficient.

China

In the fiscal year under review, the Group launched production of seats for the new Honda Accord and new Acura RDX.

Actual production volume fell far short of plans due to a slowdown in the Chinese economy caused by trade friction and a prolonged production stoppage by a customer. Although the difficult operating environment is expected to continue, we are proceeding with comprehensive measures to improve profitability and strengthening sales initiatives aimed at securing new customers and commercial rights.

Asia and Europe

In the fiscal year under review, the Group launched production of seats for Honda’s new Civic and Amaze in India. We also began producing 3rd row seats in Hungary for a new SUV manufactured by the Volkswagen group.

Work began on a plant expansion project at TS TECH BANGLADESH LIMITED, which supplies trim cover to Group companies, to bolster production capabilities. We aim to make the Group even more cost competitive through additional distribution of high-quality trim cover at low cost.

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