Annual Report 2006
For the year ended March 31, 2006

Consolidated Financial Highlights
For the years ended March 31, 2004, 2005 and 2006

■ Consolidated sales■ Consolidated operating income(unit: billions of yen)

■ Consolidated net income(unit: billions of yen)(unit: billions of yen)

44
724
700

40

30

27
570

600

30

505

30

500

20

21

400

16

20
300
10
200

10

7

100
0

2004

2005

2006

0

2004

2005

2006

0

2004

2005

2006

Koyo Seiko
JTEKTReference data
A simple combination of Koyo Seiko and Toyoda Machine Works results is shown below.
■ Consolidated sales■ Consolidated operating income(unit: billions of yen)

941
900
800

570,243814

600(unit: billions of yen)

60
60

40

35

297

721

700

■ Consolidated net income(unit: billions of yen)

50
243

43

216

22
30

12

40

24

13

Chairman
Takaya Yamada

500

President
Kohshi Yoshida

30
400
570

644

20
30

200

Message from the Chairman and the President ........................... 1

Consolidated Statement of Income and Retained Earnings ............ 9

Consolidated Financial Highlights .............................................. 2

Consolidated Statement of Cash Flows ........................................... 10

100

Company Name, Vision .............................................................. 3

Nonconsolidated Balance Sheet ...................................................... 110Business Domains ....................................................................... 4

Nonconsolidated Statement of Income and Retained Earnings ...... 13

Global Network / Domestic Network .......................................... 5

Company Profile .............................................................................. 14

7

10

12

37

505

Contents-

20

7

300
-

29

23
10

4

16

21
7

2004

2005

2006

0

2004

2005

2006

0

2004

2005

2006

Toyoda Machine Works
Koyo Seiko

Consolidated Balance Sheet ........................................................ 71

2

On January 1, 2006, with the aim of achieving dramatic
manufacturing innovation starting in Japan, Koyo Seikoand Toyoda Machine Works made a new start as
JTEKT Corporation.

Business Domains
Machine Parts & Systems
Steering systems

Column type electric
power steering system

Main products□ Hydraulic power steering□ Other steering systems□ Electric power steering

VisionStrategic aims
1. Strengthen technology development capability andproduct lineup
2. Improve cost competitiveness3. Improve global supply capability and strengthen
management structure

Electronically controlled
variable gear ratio
steering system

Driveline components
Main products□ DriveshaftsIntelligent torquecontrolled coupling(ITCC)□ Torsens□ Intelligent torque controlled couplings (ITCC) □ Propeller shafts, etc.

VisionStrategic aims
1. Expand global business regarding couplings and Torsens,
products with competitive strength
2. Improve product strength of driveshafts
3. Develop products to meet future market needs and speedily bringthem to market
4. Construct global network able to supply products from optimally located bases

Driveshaft

Bearings
Main products□ Ball bearings□ Bearing units□ Roller bearings□ Other bearings

Vision・Strategic aims
1. Implement product strategies focusedon important fields
2. Strengthen product development
structure
3. Strengthen implementation of optimallylocated manufacturing and procurement・

Corporate Message

All types of bearings

Superlarge slewing
rim bearing

Machine Tools, Etc.
Machine tools / mechatronics, etc.

Corporate Philosophy■ Corporate Objective
Seek to contribute to the happiness of people and the abundanceof society through product manufacturing that wins the trust ofsociety.

■ Management Stance
1. C r e a t e n e w v a l u e a n d p r o v i d e s o c i e t y w i t h j o y a n d
inspiration on a broad scale.
2. Aim for growth in harmony with society through innovative
operations on a global basis.
3. Create a bright, energetic corporate atmosphere based on
respect for people.
4. Strive toward the realization of safer, more abundant living
circumstances.

3

Camshaft grinder

Main products□ Grinding machines and special-purpose machines□ Control units□ Machining centers□ Industrial heat-treatment furnaces, etc.

Vision・Strategic aims

・

1. Improve product strength andimplement detailed product strategy
2. Expand sales fields
Horizontal spindlemachining center

4

Global Network / Domestic Network■ Global Network
EuropeNorth America

Regional headquarters●●●

3

Regional headquarters●

1

R&D centers●●

2

R&D centers●●

2

Steering plants

●●●●●

5

Steering plants

●●●●

4

Driveline component plants ●●2

Driveline component plants ●1

Bearing plants●●

2

Bearing plants●

1

Sales/service centers

●●●●●
●●●●●
●

11

Sales/service centers●●●●

4 TotalSales for the region

120
100

25

Sales for the region(unit: billions of yen)

160
140

Total

136

123

142

149

107

100

81

80
60

80

Asia/Oceania, etc. (excluding Japan)

60
40
20
0
FY2003

FY2004

JTEKT AUTOMOTIVE DIJONSAINT-ETIENNE S.A.S.

FY2005

FY2006

KOYO BEARINGS(EUROPE) LTD.

TOYODA MITSUIEUROPE GMBH

Sales for the region

Regional headquarters●●

2

R&D centers●

1

Steering plants

●●●●●
●●●●

9

Driveline component plants

●

1

40

Bearing plants

●●●●●
●●●

8

30

(unit: billions of yen)

52

20

61

0

60

FY2002

FY2003

FY2004

FY2005

FY2006

50

39
30
22

23

FY2002

FY200320

Machine tool plants●●

2

Sales/service centers

●●●●●
●●●●●
●

11

KOYO STEERING(THAILAND) CO., LTD.

43
34

40

10

Total

34

DALIAN KOYO WAZHOUAUTOMOBILE BEARING CO., LTD.

0
FY2004

FY2005

FY2006

No.333, Toichi-cho, Kashihara,
Nara Pref., 634-8555
Tel. 0744-29-7040
No.24-1, Kokubu Higanjo-cho, Kashiwara,
Osaka, 582-8588
No.1, Asahi-machi 1-chome, Kariya,
Aichi Pref., 448-0032

Steering System Operations
Headquarters
No.333, Toichi-cho, Kashihara,
Nara Pref., 634-8555
Tel.0744-22-7803

Driveline Business Operations
Headquarters
No.5-3, Tado-cho 1-chome, Takahama,
Aichi Pref., 444-1323
Tel.0566-53-3611

Technical centers
Chubu Technical Center
No.1, Kotobuki-cho 1-chome, Toyota,
Aichi Pref., 471-0834
Tel. 0565-28-3811

Osaka head office

Nagoya head office

No.5-8, Minamisemba 3-chome,
Chuo-ku, Osaka, 542-8502
Tel. 06-6271-8451

No.1, Asahi-machi 1-chome, Kariya,
Aichi Pref., 448-0032
Tel. 0566-25-5111
Image of Midland Square

Toubu Technical Center
No.18-2, Shiroyama 1-chome,
Midori-ku, Yokohama,
Kanagawa Pref., 226-0006
Tel. 045-929-2191

Sales & Marketing Headquarters
No.5-8, Minamisemba 3-chome,
Chuo-ku, Osaka, 542-8502
Tel.06-6245-6087

JTEKT AUTOMOTIVE TENNESSEEMORRISTOWN, INC.

JTEKT AUTOMOTIVE TENNESSEEVONORE CO.

KOYO CORPORATION OF U.S.A.
［MANUFACTURING DIV.］TOYODA MACHINERY(DALIAN) CO., LTD

Research & development centers■ Domestic Network

5(unit: billions of yen)

120

97

FY200213

PlantsKokubu Plant
Kariya Plant
Tokushima Plant
Okazaki Plant
Tokyo Plant
Kagawa Plant
Nara Plant
Higashi Kariya Plant
Toyohashi Plant
Tadomisaki Plant
Hanazono Plant
Kameyama Plant

Bearing Business Operations
Headquarters
No.24-1, Kokubu Higanjo-cho, Kashiwara,
Osaka, 582-8588
Tel.072-977-1118

Machine Tool & Mechatronics
Headquarters
No.1, Asahi-machi 1-chome, Kariya,
Aichi Pref., 448-0032
Tel.0566-25-5111

Branch offices,business offices
Tokyo Branch Office
Higashinihon Branch Office
Kitakanto Branch OfficeHamamatsu Branch Office
Toyota Branch Office I
Toyota Branch Office II
Nagoya Branch OfficeKansai Branch Office
Nishinihon Branch Office
Tohoku Business Office
Utsunomiya Business Office
Mito Business Office

Chiba Business Office
Nagano Business Office
Okazaki Business Office
Kobe Business Office
Okayama Business Office
Kyushu Business Office

Machine Tool & Mechatronics
Headquarters
Customer CenterTokyo Sales Office
Saitama Sales OfficeGunma Sales Office
Sales Sect. for Middle Japan
Hamamatsu Sales Office
Hokuriku Sales officeOsaka Sales Office
Hiroshima Sales Office
Fukuoka Sales Office

Major related companies
KOYO MACHINE INDUSTRIES CO., LTD.
TOYOOKI KOGYO CO., LTD.
KOYO SEALING TECHNO CO., LTD.
CNK CO., LTD.
KOYO THERMO SYSTEMS CO., LTD.
KOYO ELECTRONICS INDUSTRIES CO., LTD.
KOYO SALES, LTD.
DAIBEA CO., LTD.
UTSUNOMIYA KIKI CO., LTD.
HOUKO CO., LTD.
TOYODA VAN MOPPES LTD.

Distribution centers
Kansai Distribution Center
Kawai Distribution Center
Chubu Distribution Center
Kanto Distribution Center
Nishikanto Distribution Center

6

Financial data

Consolidated Balance Sheet
March 31, 2006
Thousands of
U.S. dollars
2006

Millions of yen
2006. . . . . . . . . ................................... ................................
..................................................................
.......................................................

￥ 49,517
687
52＄ 421,532
5,846
445

. . ...................................................................
.............................
. . . ...................................................................

. . ...................................................................
............................................................
........................... ................................
......................................................

213,514
8,113
16,453
238,080(1,537)
236,543
115,504
14,657
7,266
424,226

1,817,608
69,062140,065
2,026,735(13,087)
2,013,648
983,262
124,770
61,852
3,611,355..................... ................................

64,585549,799...............................................

28,201
92,786240,075
789,874...................... ................................
....................................................

181,282
631,475
812,757(575,399)
237,358
51,456
20,317309,131
10,864
12,226￥ 849,233

1,543,216
5,375,629
6,918,845(4,898,260)
2,020,585
438,036
172,954
2,631,575
92,481
104,080＄ 7,229,365...... ................................

...................................................
. . . . . . . . . ................................... ................................
...................... ................................
.............................................................
. . ...................................................................

Millions of yen
2006

Thousands of
U.S. dollars
2006...............................................................
............................................

￥ 65,345
11,388＄ 556,269
96,940......................................................................
.............................
..............................................................
......................................................................

166,370
12,064
16,332
16,230210,996

1,416,272
102,699
139,034
138,163
1,796,168...........................................................
.............................................................
........................................................
..................................................

15,09534,417
8,961
346,202

128,502292,984
76,287
2,947,150.................................................................
.........................

121,42161,452

1,033,639
523,134.........................................................
........................................................
.................................................................
...........................................................

1,700
3,742
1,727
536,244

14,47031,853
14,6984,564,944..........................

13,325

113,432...................................
.................................................................
...............................................
..........................................
.......................
..........................................................
...............................................

35,87898,518144,244
27,681(6,376)(281)
299,664￥ 849,233

305,422838,666
1,227,926
235,644(54,280)(2,389)2,550,989＄ 7,229,365

As of March 31, 2006, JTEKT had 87 consolidated subsidiaries and 11 affiliates accounted for by the equity method.
The main ones of each type are shown below.
(Consolidated subsidiaries)
KOYO MACHINE INDUSTRIES CO., LTD.
TOYOOKI KOGYO CO., LTD.
KOYO SEALING TECHNO CO., LTD.
CNK CO., LTD.
KOYO THERMO SYSTEMS CO., LTD.
KOYO ELECTRONICS INDUSTRIES CO., LTD.
KOYO SALES, LTD.
DAIBEA CO., LTD.
UTSUNOMIYA KIKI CO., LTD.
HOUKO CO., LTD.
TOYODA VAN MOPPES LTD.
JTEKT AUTOMOTIVE TENNESSEEMORRISTOWN, INC.

7

(Affiliates accounted for by the equity method)
JTEKT AUTOMOTIVE TENNESSEEVONORE CO.
JTEKT AUTOMOTIVE LYON S.A.S.
JTEKT AUTOMOTIVE DIJON SAINTETIENNE S.A.S.
JTEKT AUTOMOTIVE VIRGINIA, INC.
KOYO STEERING (THAILAND) CO., LTD.
TOYODA MACHINE WORKS (THAILAND)
CO., LTD.
KOYO CORPORATION OF U.S.A.
KOYO BEARINGS (EUROPE) LTD.
KOYO ROMANIA S.A.
TOYODA MACHINERY USA CORP.

FUJIKIKO CO., LTD.
MITSUI SEIKI KOGYO CO., LTD.

8

Financial data

Financial data

Consolidated Statement of Income and Retained Earnings

Consolidated Statement of Cash Flows

For the year ended March 31, 2006

For the year ended March 31, 2006
Millions of yen
2006. . . . . . ...................................................................
. . ...................................................................
. ................................... ................................
............................
.............................. ................................

￥ 724,350
591,783
132,567
87,942
44,625＄ 6,166,254
5,037,740
1,128,514
748,633
379,881................. ................................
................................. ................................
........................................

1,133(2,485)
2,332

9,649
(21,152)
19,849................................................

(2,771)(23,590)............... ................................
. . . . ................................... ................................

821
1,150
180

6,989
9,789
1,534

........................................................
. ................................... ................................
......................... ................................

44,80520,557(3,462)

381,415
175,001(29,474)................. ................................
. ................................... ................................

(424)
27,286(3,609)232,279.............................................
.............................................................

45,92973,645

390,988626,929.......................................
................................ ................................
. ................................
.................... ................................

98(2,389)(325)￥ 144,244

833(20,338)(2,765)＄ 1,227,926

yen

9Thousands of
U.S. dollars
2006

U.S. dollars. . ...................................................................
................................. ................................

￥ 109.64
15.00＄ 0.930.13............... ................................

319,394

319,394

Millions of yen
2006

Thousands of
U.S. dollars
2006..................................................
................................................

￥ 44,805
28,903＄ 381,415
246,048..............................................................
...............................................
.....................................................................
..................................................
.................................
.....................................................
.......................................................................
........................

(821)
(658)
(5,363)8,297(365)(15,165)(7,738)51,895(6,989)(5,607)(45,654)
70,632(3,105)(129,097)(65,869)
441,774.....................................................
.............................................
.................................
.....................
........................................
.................................................
.......................................................................
...............................

7(9)(39,407)
457
2,725
(552)
(953)
(37,732)61(76)(335,460)
3,892
23,196(4,698)(8,118)(321,203)..................................................
...................................................
.................................................................
.......................................................................
...............................

(3,680)(3,240)(2,483)(88)(9,491)(31,326)(27,584)(21,140)(746)(80,796)......................
................................
.....................
..............................................................
..............
.............................

1,154
5,826
35,425
7,738
559￥ 49,548

9,822
49,597
301,566
65,872
4,759＄ 421,794

10

Financial data

Nonconsolidated Balance Sheet
March 31, 2006
Millions of yen
2006. . . . . . . . . ................................... ................................

￥ 24,021＄ 204,486. . . ...................................................................
............... ................................
. . . ...................................................................

87,793
95,856
9,846
193,495(59)
193,436
44,298
7,526
2,192
271,473

747,361
816,005
83,821
1,647,187(502)
1,646,685
377,096
64,071
18,662
2,311,000....... ................................
. . ...................................................................
............................................................
........................... ................................
....................... ................................

......................................................

42,451

361,377..............................................................

162,523
204,974

1,383,531
1,744,908....................... ................................
.................... ................................

107,001
369,035
476,036(361,351)
114,685
38,502
8,331
161,5182,516
6,311
646,792

910,883
3,141,524
4,052,407(3,076,119)
976,288327,766
70,9201,374,974
21,41953,7195,506,020.................... ................................
. . . . . . . . . ................................... ................................
......................................................
............................. ................................
. . ...................................................................

11

Thousands of
U.S. dollars
2006

Millions of yen
2006

Thousands of
U.S. dollars
2006...............................................................
............................................

￥ 28,750
10,000＄ 244,743
85,128......................................................................
...............................................
..............................................................
......................................................................

91,41840,585
17,465
6,322
155,790778,226
345,493
148,677
53,815
1,326,211............................................................
.............................................................
.......................................................
...................................................

9,640
17,0985,574
226,852

82,064
145,552
47,452
1,931,150.................................................................
......................

98,02442,557

834,460
362,280...........................................................
...........................................................

301
367,734

2,561
3,130,451...................................
.................................................................
..................................................................
..............................................................
..............................................................
..........................................
.........................................................
...............................................

35,87898,51812,067
79,40027,42326,019(247)
279,058￥ 646,792

305,422838,666
102,725675,920
233,446
221,494(2,104)
2,375,569＄ 5,506,020

12

Financial data

Nonconsolidated Statement of Income
and Retained Earnings

Company Profile

For the year ended March 31, 2006
Millions of yen
2006

Thousands of
U.S. dollars
2006. . . . . . . . . ................................... ................................
. . ...................................................................
. ................................... ................................
............................
.............................. ................................

￥ 427,254
364,305
62,94937,33325,616＄ 3,637,136
3,101,265
535,871
317,809
218,062................. ................................
................................ ................................
......... ................................

1,375
(704)
1,042

11,708(5,991)8,873................................................
. . . ...................................................................

(1,139)2,419
2,993
28,60912,450(2,443)18,602(9,694)
20,58725,483
243,545
105,985(20,794)
158,354..................................................
. ................................... ................................
......................... ................................
. . ...................................................................
.............................................
.............................................................
................................. ................................
................................................
. ................................
.................... ................................

. . ...................................................................
................................................................

..................... ................................

14,136
6,786(2,389)(9,609)(103)￥ 27,423

120,338
57,772(20,339)(81,802)(877)＄ 233,446

yen

U.S. dollars￥ 75.87
15.00＄ 0.650.13

319,394

319,394

ProfileCompany nameHead office locations

Main business
CapitalSales

Number of employees

Nagoya head office
No.1-1, Asahimachi, Kariya, Aichi Pref., 448-0032, Japan(move to Midland Square at Meieki 4-chome, Nakamura-ku, Nagoya, is planned for Dec. 2006)
Osaka head office
No.5-8, Minamisemba 3-chome, Chuo-ku, Osaka, 542-8502, Japan
Manufacture and sale of steering systems, driveline components,
bearings, machine tools, etc.
35,877 million yen
Consolidated: 941,498 million yen
Nonconsolidated: 587,689 million yen(simple sum of sales of Koyo Seiko and Toyoda Machine Works from April through December 2005
and JTEKT sales from January through March 2006)
Consolidated: 30,029
Nonconsolidated: 9,882

Members of the Board and Officers
Directors

Corporate auditors

Chairman

Corporate Auditor

Managing Officer

President

Corporate Auditor

Managing Officer

Executive Vice-President

Corporate Auditor

Managing Officer

Executive Vice-President

Corporate Auditor

Managing Officer

Senior Executive Director

Corporate Auditor

Managing Officer

Senior Executive Director

Managing Officer

Senior Executive Director

Managing Officer

Executive Director

Managing officers

Managing Officer

Executive Director

Executive Managing Officer

Managing Officer

Executive Director

Executive Managing Officer

Managing Officer

Executive Director

Executive Managing Officer

Managing Officer

Executive Director

Executive Managing Officer

Managing Officer

Executive Director

Executive Managing Officer

Managing Officer

Director

Managing Officer

Managing Officer

Managing Officer

Managing Officer

Managing Officer

Managing Officer

Shareholder Information as of March 2006

4. Breakdown of shareholders (100% = total issued shares)

1. Number of authorized shares: 1,200,000
Number of issued shares: 319,394
2. Number of shareholders 18,068
3. Major (top 10) shareholders
Shareholder
Toyota Motor Corporation
The Master Trust Bank of Japan, Ltd.
Japan Trustee Services Bank, Ltd.
Denso Corporation
Nippon Life Insurance Company
Toyota Industries Corporation
Resona Bank, Ltd.
The Sumitomo Trust and Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Toyota Tsusho Corporation

13(share quantities in units of 1,000)

Securities companies
3,764(1.2%)

No. of shares
72,43523,41020,85017,611
13,731
7,493
6,749
6,729
6,366
5,202

Self-owned shares
197(0.0%)

Individuals
25,209(7.9%)

Foreign companies
52,064(16.3%)

Japanese companies
120,391(37.7%)

Financial organizations
117,766(36.9%)

14

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