Annual Report 2011
For the year ended March 31, 2011

Message from the Chairman and the President
I would like to express my prayers for the souls of those who lost their lives owing to the Great East Japan Earthquake, which took placeon March 11, 2011, and I also earnestly extend my heartfelt condolences to the many other people who have been severely impacted
by that disaster and to the families of those people.
Since the earthquake, the JTEKT Group has worked to assist people impacted by the disaster as well as to support the restoration ofaffected regions by donating funds directly, collecting financial donations from employees, shipping relief supplies, and offering
recovery services involving the repair and refurbishment of machine tools. Going forward, the JTEKT Group will continue making
concerted efforts regarding restoration and recovery measures while also endeavoring through its ordinary business operations topromote Japan's economic revitalization.
With respect to the fiscal year ended March 31, 2011, the rising economic growth rates of the United States and China during the latter
half of the year and other factors appeared to indicate that the global economy was making steady progress toward recovery. Against
the backdrop of such situations as the worldwide drop in production stemming from the Great East Japan Earthquake and the risinglevel of crude oil prices due to political instability in North Africa and the Middle East, however, it has become increasingly difficult toanticipate future global economic trends. Japan’s economic outlook is further clouded by additional problems, including the manufacturing contraction and electric power supply issues associated with the earthquake disaster, the sustained appreciation of the yen, andthe surging prices of natural resources.
Amid this management environment and based on its consideration of lessons learned during the global financial crisis that began in
the autumn of 2008, the JTEKT Group has been advancing with measures to reform its profit structure in a way that will enable it togenerate stable results even when its operating volume is only 70% of the levels during the Group’s peak performance period. To createa profit base that is minimally impacted by economic and currency exchange rate trends, we have steadily implemented a diverse rangeof measures. We are consolidating product lines, reorganizing production lines in ways that improve manufacturing efficiency, andreassigning personnel to strategically emphasized business fields, and we are taking steps to streamline manufacturing processes andshorten supply chains, reduce the cost of sales through the use of standardized and generic components and other measures, andincrease products’ value added through the expanded internal utilization of our core technologies.
Looking at consolidated performance for the fiscal year under review, net sales amounted to 955,470 million yen—up 185,787 million
yen, or 24.1%, from the level in the previous year—owing to the economic stimulus measures implemented in Japan through the firsthalf of the period as well as to economic recovery trends centered on China, Southeast Asia, and North America. Regarding profitability,
despite the impact of yen appreciation, we increased our operating income 39,499 million yen from the previous year, to 39,924 million
yen, as a consequence of the rise in net sales as well as of our efforts to reduce the cost of sales through such measures as those toimprove procurement item prices and enhance labor efficiency. Ordinary income was 40,263 million yen, compared with a 252 million
yen ordinary loss in the previous year, and net income totaled 20,052 million yen, compared with a 19,413 million yen net loss in theprevious year. Thus, we were able to bring all three principal profitability items into the black for the first time in three fiscal years.
The year-end cash dividend was set at 9 yen per share. Consequently, including the interim cash dividend of 7 yen per share, cash
dividends applicable to the fiscal year under review amounted to 16 yen per share.
In addition to its commitment to helping reinvigorate Japan’s monozukuri (fundamental manufacturing activities), the JTEKT Group is
striving to create an increasingly solid management constitution over the
medium term by giving thorough emphasis to safety, quality, and timely
product deliveries in accordance with the “customer first” principle; reforming its profit structure so that it can respond to changes in the external
environment while generating stable results; developing products thatevoke enthusiasm and excitement on the parts of customers; andotherwise concertedly combining and leveraging the strengths the Groupalready has in diverse technical fields. We also will be progressively increasing the rigor of our systems for managing diverse kinds of risks.
We hope for the continued support and encouragement of shareholders
as we implement these various strategies.
ChairmanPresident
June 2011
Motohiko Yokoyama
Shoji Ikawa

Contents
Message from the Chairman and the President
Consolidated Financial Highlights
Global Business Activities
Introduction of New Products and New Technologies
AwardsCSR (Corporate Social Responsibility)

01 Annual Report 2011

01
02
03
05
05
06

Finacial Data
Consolidated Balance Sheet
Consolidated Statement of Income and Retained Earnings
Consolidated Statement of Cash Flows
Nonconsolidated Balance Sheet
Nonconsolidated Statement of Income
Stock Information

07
08
08
09
10
10

Consolidated Financial Highlights
Comparison of Five Fiscal Years

Net income(loss) per share

Consolidated net sales(billions of yen)

(yen)

1,157

1,200
1,025

140
1,017

1,000

955

140.51135.58

120
100
80

769

800

59.39

60
600

40
20

400

0
-20

200

-40
0
(FY)

3/07

3/08

3/09

3/10

3/11

(billions of yen)70

-37.22
3/07

3/08

3/09

-60.45
3/10

3/11

951.66924.27931.09

3/09

3/10

3/11

Net assets per share

Consolidated operating income

(yen)

77

80

-60
(FY)

1,200

64

1,168.42
1,082.87

1,000

60

800

50
39

40
30

600
400

22

20
200

10
0
(FY)

0
3/07

3/08

3/09

3/10

3/11

(billions of yen)

44

3/07

3/08

Cash dividends per share

Consolidated net income(loss)
50

0
(FY)

(yen)

24

25

43

40

20

19
17

30
20

20

16

15
11

10

10

0
5

-10
-20
(FY)

-11
3/07

3/08

3/09

-19
3/10

3/11

0
(FY)

3/07

3/08

3/09

3/10

3/11

Annual Report 2011 02

About the Great East Japan Earthquake● The Company’s Damage Situation
1. We confirmed that all Group company employees were
unharmed.
2. We confirmed the safety of family members of Group
company employees.
3. We confirmed that Group companies’ buildings andfacilities were not damaged, and operations are proceedingas usual.

● Electric Power Conservation Measures
This summer, in eastern Japan, electric power shortages
require that peak power consumption be reduced 25%.
The Company is realizing this target reduction byintroducing rotating suspensions of operations, reevaluating
manufacturing processes, and implementing power conservation activities at all work sites.

JTEKT Group Support Situation
To contribute to relief activities and to the restoration andrecovery of areas directly impacted by the earthquake disaster,
the JTEKT Group provided assistance in the following ways.
● Support for Impacted Regions
・ The JTEKT Group donated ¥70 million to relief organizations.
・ JTEKT officers and employees undertook fund-raising activities.
・ Helped send supplies (food, paper masks, disposable pocket
heaters, etc.) to impacted regions through participation in the 1%
Club of the Japan Business Federation (Nippon Keidanren)● Support for Customers
To support renewed manufacturing operations by customers
directly impacted by the disaster, the Company established a
24-hour reception system for machine-tool service requests andprovided such service expeditiously to facilitate renewed manufacturing operations.

Capital Increases by Public Offering and Private Placement
In June and July of 2011, the Company implemented capital increases by means of the public offering and private placement ofshares.
Approximately 20,799,000 shares were issued and approximately ¥17.4 billion of funds was procured.
These funds have been allocated for future investments to repay funds used for the acquisition of the needle roller bearing businessof the Timken Company.
As a result of the capital increases, the number of outstanding shares rose to 342,186,000.

Global Business Activities
EPS Manufacturing Company in China Constructs
New Facility

Expanding the EPS Supply Systemin the South andNorth of India

A Group company manufacturing electric power steering(EPS)
products in China’s Fujian Province, JTEKT STEERING SYSTEMS(XIAMEN) CO., LTD. (JSSX), is constructing a new plant. As it isprojected that the use of EPS systems with outstanding fuelefficiency will become increasingly widespread in China’s rapidly
growing automobile market, JSSX is greatly expanding its production capacity. In addition, JSSX has received China Safety
Standardization Enterprise Class 1 certification from the ChineseState Administration of Work Safety. Operating as model factories
with outstanding safety features, JSSX plants will be contributing
to the improvement of labor conditions in China going forward.

A Group company manufacturing EPS products in India, JTEKTSONA AUTOMOTIVE INDIA LTD. (JSAI) has expanded its supply
system with the construction of three new plants—one in
Gurgaon, in the north of the country, and one each in Chennai and
Bangalore, in the south of the country. Operating as a company
with deep local roots, JSAI is aiming to capture more than 50% of
India’s steering systems product market.

The groundbreaking ceremony for JSSX’s new plant

JSAI facility opening ceremony(sake cask opening)

03 Annual Report 2011

JSAI facility opening ceremony(coconut splitting)Global Business Activities
North America

EuropeJapan

Asia, Oceania, and others(excluding Japan)

Asia, Oceania, and others(excluding Japan)■Transition of Sales（billions of yen）

Japan

North America

Europe

700

200

250

600

595

634

(excluding Japan)

500
437

150

154

146

145

200

200

231

170
539

500

150

300

134

94

100

166

200

188

150

400

120

143
100

131
103

87

100

200

50

3/08

3/09

3/10

3/11

0
(FY) 3/07

50

50

100
0
(FY) 3/07

Asia, Oceania, and others

3/08

3/09

3/10

3/11

New Plant in Indonesia—Strengthening the Business Foundation in the ASEAN Region—

Indonesia-based PT. JTEKT INDONESIA (JID) has constructed
a new plant that began production of EPS systems from June
2011. Going forward, the plant will work to strengthen its
cost-competitiveness through local procurement activities and tostrengthen its business foundation in Indonesia as well as the restof the ASEAN region.
■ Overview of JID(1) Corporate name: PT. JTEKT INDONESIA(2) Location: Suryacipta City of Industry, Karawang(3) Business activity: Manufacture and sale of electric power steeringsystems, starter clutches, etc.
(4) Capital: US$1 million (approximately ¥90 million)(5) Shareholding: JTEKT Group, 100%
(6) Plant size: 100,000m2 of total site area
(7) Number of employees: Approximately 200 (as of 2013)(8) Investment amount: Approximately ¥3 billion(9) Sales plan: Annual sales of approximately ¥6 billion (as of 2013)

0(FY) 3/07

3/08

3/09

3/10

3/11

0
(FY) 3/07

3/08

3/09

3/10

3/11

Signing of Letter of Intent Regarding Establishmentof a Bearing Business Joint Venture with Wafangdian Bearing Group Corporation
On September 28, 2010, JTEKT and China-based Wafangdian
Bearing Group Corporation (ZWZ) signed a letter of intent regarding the establishment of a joint venture for the manufacture andsales of automobile bearings in China.
JTEKT and ZWZ established an automobile wheel bearing
manufacturing joint venture in 1995 and have cooperated sincethat time.
The letter of intent calls for a new joint venture that would
engage in automobile wheel bearing business but also to potentially expand its operations to include cooperative business
related to the manufacture and sale of bearings for railway equipment, wind power generation equipment, and other kinds ofindustrial machinery.
Going forward, the joint venture will seek to expand its sales tolocally owned automobile manufacturers in China and earn a top
share of China’s automobile bearing market.
■ Overview of ZWZ(1) Corporate name: Wafangdian Bearing Group Corporation(2) Location: Wafangdian City, Liaoning Province(3) Business activity: Manufacture and sale of all types of bearings(4) Date of establishment: 1938
(5) Capital: RMB360 million (approximately ¥4.3 billion)(6) Annual sales: RMB5,800 million (approximately ¥72.5 billion)

Conceptual drawing of JID’s completed plant(7) Number of employees: Approximately 12,000

Annual Report 2011 04

Introduction of New Products and New Technologies
Enriching society through monozukuri manufacturing that contributes to the global environment

Development of High-Speed Bearings for Machine Tool Spindles
JTEKT has developed ultrahigh-speed angular contact ball bearings and cylindricalroller bearings for machine tool spindles.
The new products’ oil-air lubrication method enables the world’s top level of spindle
bearing performance. Compared with conventional products, they are capable ofhandling ultrahigh speeds 20% to 30% higher while reducing bearing temperature riseby 30% to 40%.
Offering both high-speed performance and high rigidity, the new bearings are able
to improve the cutting efficiency and processed surface quality attainable by machine
tools. By promoting sales of the new products as the top grade offerings within its High
Ability®* series of bearing products for machine tool spindles, JTEKT intends to become
a top supplier of machine tool bearings going forward.
* High Ability® is a registered trademark of JTEKT.

Angular contact ball bearings

Cylindrical roller bearings

Expanding the Application Scope of Electronically Controlled 4WD Couplings
By installing two of the electronically controlled 4WD couplings (ITCC®*) mass
manufactured by JTEKT on the rear differential of 4WD vehicles, it has become possible
to supplement ordinary 4WD control functions that control the distribution of power
to front and rear wheels with additional capabilities for controlling the distribution of
power between the left and right rear wheels.
This makes it possible to improve vehicles’ cornering performance, and it has
expanded the scope of application for ITCC products. Going forward, these products
will contribute to preventative automotive safety.
*An acronym representing “intelligent torque controlled coupling,” ITCC® for electronically controlled
4WD couplings is a registered trademark of JTEKT.

An ITCC and a control unit

Development of Machine Tools that Pioneer a New Frontier—The Launch of the “e” Series
Aiming to help customers reduce their costs, JTEKT has developed three “e” seriesmodels.
Designed to pursue “cutting of obsessively high quality,” “e” series products offer
compact machine structures while also providing features—such as those related tooperation, maintenance, tooling changes, and line organization—that help customers
realize lower costs over their product life cycles.
The “e” series reduces the time for tooling changes and realizes the reduction ofprocesses for cylindrical grinders by improving in the method for attaching grinding
heads and workpieces to cylindrical grinders.
Also, the machining center realized the compact structure but increased the rigidity.
These efforts have borne fruit in the realization of numerous processing variations.
Going forward, JTEKT will continue to pursue ways of reducing its customers’ costs
while also opening up new frontiers of manufacturing.

e300G cylindrical grindere640Vvertical machining center

AwardsWe received an award for our advanced integrated technology.
We continue to develop our technologies.

Project Award Received at Lexus LFA Line-Off Ceremony
At a reception following the line-off ceremony held at the Motomachi plant of
Toyota Motor Corporation for the Lexus LFA super sports car, JTEKT was presented witha project award for its “torque tube ASSY.”
The Lexus LFA incorporates numerous JTEKT products—such as the C-EPS columntype EPS system and the TORSEN® torque sensing differential for full-time 4WD—andthe project award was given to JTEKT in recognition of the Company’s overall contribution to the Lexus LFA’s development.
05 Annual Report 2011

The line-off ceremony

e500H
horizontal machining center

CSR (Corporate Social Responsibility)
JTEKT tries to create opportunities to interact with locals as a member of the community and as a good corporate citizen.

Promoting and Explaining CSR Activities
Issuance of JTEKT’s CSR Report 2010
JTEKT has issued its CSR Report 2010, which presents information on the Company’s CSR activities
during fiscal 2009 as well as on the results of those activities. Aiming to help all kinds of stakeholders
easily gain an understanding of JTEKT’s CSR philosophy and programs, the report offers information
organized from economic, societal, and environmental perspectives.
(The CSR Report 2010 can be obtained in portable document format (pdf ) from the Company’s website
at the following address: http://www. jtekt. co.jp/ e/csr/en_ rep.html)

Issuance of the CSR Handbook
Aiming to help each individual employee understand and share information on JTEKT’s CSR policies
and to thereby strengthen JTEKT’s commitment to earnestly work to help resolve societal problems, theCompany has prepared the CSR Handbook. It is hoped that employees will always keep a copy of thehandbook with them so that they can strive to apply the Company’s CSR policies in their day-to-day work
activities.

JTEKT’s CSR Report 2010

Creation of an Internal Reporting System in China
JTEKT Group companies in China have created an internal reporting system that began operatingfrom October 2010. The system, which enables employees who are concerned or dissatisfied withspecific situations to make reports to an outside legal office, is designed to facilitate the Company’sefforts to proactively solve problems. JTEKT has long believed that, rather than simply stemming fromwage and work environment issues, labor problems are associated with human dignity situations thatshould be addressed through efforts to improve employees’ motivation as well as the quality of employees’ lives. In this and other ways, JTEKT intends to make sustained efforts to further strengthen its compliance activities going forward.

The CSR Handbook

Contributing to Society
Extracurricular Solar Car Course
To give the next generation of societal leaders firsthand knowledge about
how solar energy can be used to power automobiles, JTEKT organized an
extracurricular solar car course that was attended by approximately 40 pupils
from the Kokubuhigashi Elementary School in Kashiwara City, Osaka.

A scene from the extracurricular course

Tree-Planting Activities in Thailand
A Thailand-based JTEKT Group company—JTEKT AUTOMOTIVE(THAILAND) CO., LTD. (JATH)—has planted approximately 200 tree saplingsin Thailand’s Khao Chamao/Khao Wong National Park, which has diverse
flora and fauna and is a popular recreation area for residents of nearby
communities. JATH has a strong sense of its responsibilities to society andplans to promote CSR activities going forward as a means of contributing toThailand’s societal development.

Annual Report 2011 06

Financial Data
Consolidated Balance Sheet
March 31, 2011ASSETS

Millions of yen

Thousands of
U.S. dollars

2011

2011

Current assets:Cash￥ 64,513 ＄ 775,868

Time deposits

4,166

50,100

Short-term investments

49,032589,683

Trade151,357

1,820,290

Unconsolidated subsidiaries and affiliates

18,241

219,368

Other

17,625211,967

187,2232,251,625(983)(11,817)

Notes and accounts receivable:

Allowance for doubtful accounts

186,240

2,239,808

Inventories

130,998

1,575,447

Deferred tax assets

15,152

182,224

Other current assets

11,779141,655

461,880

5,554,785

34,826

418,836

19,296232,060

54,122650,896

Buildings and structures

205,7452,474,382

Machinery and equipment

667,1968,024,006

Total current assets
Investments and advances:
Investments in securities
Investments in and advances to unconsolidated
subsidiaries and affiliates
Property, plant and equipment:

Lease assets

2,702

32,497875,643

10,530,885(655,862)(7,887,697)

219,7812,643,188

Land

56,060674,204

Construction in progress

14,486174,208

290,327

3,491,600

1,969

23,67733,922407,966

Accumulated depreciation

Deferred tax assets
Other assets
Total assets￥842,220 ＄10,128,924

Millions of yen

Thousands of
U.S. dollars

2011

2011

￥ 63,693＄ 765,997

18,479222,236

137,574
13,8889,231
11,476
172,169

1,654,532
167,025
111,015138,0132,070,585

5,522
32,806
20,515313,184

66,417394,539
246,719
3,766,493

Long-term debt
123,923
Accrued indemnities from retirement benefit plan 57,333
Accrued severance indemnities for members of
the board of directors and corporate auditors 3,283
Deferred tax liabilities
1,468
Other liabilities
6,942
Total liabilities
506,133

1,490,358
689,513

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term loans
Current portion of long-term debt
Notes and accounts payable
Trade
Unconsolidated subsidiaries and affiliates
Construction
Other

Income tax payable
Accrued expenses
Other current liabilities
Total current liabilities

Net assets:
Shareholders' equity:
Common stock:
Authorized - 1,200,000 thousand shares
Issued - 342,186 thousand shares
45,591
548,303
Capital surplus
108,238
1,301,716
Retained earnings
195,036
2,345,589
Less: Treasury shares(381)(4,587)
Evaluation and conversion difference:
Unrealized gain on other securities
9,357
112,529
Translation adjustments on foreign currency
financial statements(39,489)(474,912)
Minority interests in consolidated subsidiaries
17,735
213,293
Total net assets
336,087
4,041,931
Total liabilities and net assets￥842,220 ＄10,128,924

Conversion rate: ￥83.15 per U.S. dollar
As of March 31, 2011, JTEKT had 135 consolidated subsidiaries and 20 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.

07 Annual Report 2011

(Affiliates accounted for by the equity method)
JTEKT (THAILAND) CO., LTD.
JTEKT AUTOMOTIVE TENNESSEE-MORRISTOWN, INC.
JTEKT AUTOMOTIVE TENNESSEE-VONORE CO.
JTEKT AUTOMOTIVE LYON S.A.S.
JTEKT AUTOMOTIVE DIJON SAINT-ETIENNE S.A.S.
JTEKT AUTOMOTIVE VIRGINIA, INC.
JTEKT AUTOMOTIVE (THAILAND) CO., LTD.
KOYO CORPORATION OF U.S.A.
KOYO ROMANIA S.A.
KOYO BEARINGS (EUROPE) LTD.
TOYODA MACHINERY USA CORP.

39,487
17,65783,485
6,086,993

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

Consolidated Statement of Cash Flows

Consolidated Statement of Income
and Retained Earnings

For the year ended March 31, 2011

For the year ended March 31, 2011
Thousands of
U.S. dollars

Millions of yen

2011

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

2011￥955,470＄11,490,925

Cash flows from operating activities:

811,4709,759,118

Income before income taxes

144,000

1,731,807

Depreciation and amortization

104,075

1,251,652

Equity in loss of unconsolidated subsidiaries

39,925

480,155

Other income (expenses):

and affiliates(23,880)(8,889)(106,906)(13,207)(158,839)

4,317

51,915

13,865Inventories(35,422)

Notes and accounts payable

Foreign currency exchange loss, net(1,459)(17,550)

Bonuses to directors and corporate auditors

1,985

23,880(4,292)(51,618)(6,715)(80,763)

33,210399,392

Current

8,790

105,717

Deferred

1,501

18,046Equity in loss of unconsolidated
subsidiaries and affiliates
Other, net

2,866￥ 20,053＄

in scope of consolidation
Balance at end of the year
Per share:
Net income
Cash dividends

71,14360,320725,442(1,242)(14,930)

99

1,187

(27,082)(325,700)

financing activities
Cash flows from investing activities:
Decrease in marketable securities
Proceeds from sales of property,
plant and equipment

22,242(43,733)

Increase in loans receivable(201)(2,412)Other, net(935)(11,249)(31,148)(374,595)

Net cash provided by investing activities￥176,037

1,849(3,636)34,470＄ 2,117,105

Cash flows from financing activities:
3,267

39,286

Decrease in short-term loans(35,815)(430,730)(4,320)(51,961)

Increase in short-term loans

9,766

117,451￥195,036＄ 2,345,589

Proceeds from issuance of common stock

17,424

209,553

Cash dividends(5,273)(63,415)

Other, net(915)(11,004)(14,813)(178,145)

Yen

U.S. dollars￥59.39＄0.71

Net cash provided by financing activities

16.00

0.19

Exchange difference of cash and cash equivalents(2,553)(30,708)

Net increase in cash and cash equivalents

11,806

141,994

Cash and cash equivalents at beginning of the year

99,3391,194,696

Net increase due to the change in scope of consolidation

2,368

28,474Weighted average number of common shares
outstanding (thousands)

5,916

241,159

Net increase due to the change
Cash dividends

Other, net

Increase in investments in securities

Consolidated retained earnings:
Balance at beginning of the year

(90,532)

Purchases of property, plant and equipment

Minority interests in net income of
Net income(1,895)(7,528)

Increase in time deposits

Income taxes:

consolidated subsidiaries(158)

Payment of income taxes
Net cash used by

Income before income taxes
and items listed below

585,044(1,987)

1,153(13,918)2011

Notes and accounts receivable(2,945)(1,157)2011

48,646

Interest expense

plant and equipment, net

Thousands of
U.S. dollars￥ 33,210 ＄ 399,392

Interest and dividend income

Loss on sales or disposal of property,

Millions of yen

337,623

337,623

Cash and cash equivalents at end of the year

￥113,513 ＄1,365,164

Annual Report 2011 08

Financial Data
Nonconsolidated Balance Sheet
March 31, 2011ASSETS

Millions of yen

Thousands of
U.S. dollars

2011

2011

Current assets:
Cash
Short-term investments

LIABILITIES AND NET ASSETS

Millions of yen

Thousands of
U.S. dollars

2011

2011

Current liabilities:￥ 4,642 ＄

55,827

Short-term loans

49,000589,296

Current portion of long-term debt

Notes and accounts receivable:￥ 28,750 ＄ 345,761
15,000180,397

Notes and accounts payable:Trade60,441

726,898

Trade

87,096

1,047,461

Subsidiaries and affiliates

79,781

959,480

Subsidiaries and affiliates

39,154

470,877

Other

10,210122,785

Construction

6,630

79,736

150,432

1,809,163

(34)

(409)

Allowance for doubtful accounts

Other

4,176

50,224137,056

1,648,298

150,398

1,808,754

Income tax payable

400

4,809

Inventories

40,119482,494

Accrued expenses

14,019168,593

Deferred tax assets

11,715140,884

Other current liabilities

Other current assets

4,938

59,386

260,8123,136,641

Total current assets
Investments and advances:
Investments in securities

26,759321,815

Investments in and advances tosubsidiaries and affiliates

14,435

173,608

209,660

2,521,466

Long-term debt

94,0001,130,487

Accrued indemnities from retirement benefit plan

39,050469,626

1,719

20,672

Total current liabilities

Accrued severance indemnities for members of
the board of directors and corporate auditors
Other liabilities

1,154

13,883

345,583

4,156,134

45,591

548,303

Capital surplus

108,230

1,301,629

Retained earnings

127,138

1,529,014(343)(4,128)

8,713

104,788289,3293,479,606

192,552

2,315,719

219,3112,637,534

Buildings and structures

116,998

1,407,070

Machinery and equipment

367,364

4,418,090

Shareholders' equity:

1,287

15,473

Common stock:485,649

5,840,633

Total liabilities

Property, plant and equipment:

Lease assets
Accumulated depreciation
Land
Construction in progress(393,197) (4,728,765)
92,452

1,111,868

38,916

468,021

Net assets:

Authorized - 1,200,000 thousand shares
Issued - 342,186 thousand shares

Less: Treasury shares

5,453

65,585

136,821

1,645,474

Evaluation and conversion difference:

Deferred tax assets

11,806

141,988

Unrealized gain on other securities

Other assets

6,162

74,103

Total net assets

Total assets

Conversion rate: ￥83.15 per U.S. dollar

09 Annual Report 2011

￥634,912 ＄7,635,740

Total liabilities and net assets￥634,912 ＄7,635,740

Stock Information

Nonconsolidated Statement of Income
For the year ended March 31, 2011

Millions of yen

Thousands of
U.S. dollars

2011

2011

￥547,103＄6,579,715

493,936

5,940,307

53,167

639,408

44,307532,858

8,860

106,550

Interest and dividend income

9,526

114,566

Interest expense(1,556)(18,708)(309)(3,715)(1,431)(17,210)(2,637)(31,719)

3,593

43,214

Income before income taxes and items listed below 12,453

149,764

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income (expenses):Foreign currency exchange loss, net
Loss on sales or disposal of property,
plant and equipment, net
Other, net

Income taxes:

Shareholder Information
as of March 2011
(share quantities in units of 1,000)

1. Number of authorized shares: 1,200,000
Number of issued shares:
342,186
2. Number of shareholders:
21,1803. Major (top 10) shareholders
Shareholder
Toyota Motor Corporation

No. of shares
77,235The Master Trust Bank of Japan, Ltd.

25,079Japan Trustee Services Bank, Ltd.

19,312Denso Corporation

18,371

Nippon Life Insurance Company

12,361

Toyota Industries Corporation

7,813

Resona Bank, Ltd.

6,749

Current

400

4,810

The Sumitomo Trust and Banking Co., Ltd.

6,729

Deferred

1,451

17,444

Sumitomo Mitsui Banking Corporation

6,366

Net income￥ 10,602＄ 127,510

National Mutual Insurance Federation ofAgricultural Cooperatives

6,327

Per share:

Yen

U.S. dollars

Net income￥31.40＄0.38

Cash dividends

16.00

0.19

337,646

337,646

Weighted average number of common shares
outstanding (thousands)

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

Self-owned shares
249(0.1%)
Individuals
24,739(7.2%)

Financial organizations
122,230(35.7%)

Foreign companies
60,016(17.5%)
Japanese companies
126,850(37.1%)

Securities companies
8,100(2.4%)

Annual Report 2011 10

Company Profile
ProfileCompany nameHead office locations

Main businesses
CapitalSales
Number of employees

Nagoya head office
No. 7-1, Meieki 4-chome, Nakamura-ku, Nagoya, Aichi Pref. 450-8515, Japan
Osaka head office
No. 5-8, Minamisemba 3-chome, Chuo-ku, Osaka, 542-8502, Japan
Manufacture and sale of steering systems, bearings,
driveline components, machine tools, etc.
45 billion yen
Consolidated: 955 billion yen
Nonconsolidated: 547 billion yen
Consolidated: 36,775
Nonconsolidated: 9,906

Members of the Board and Officers
Directors
ChairmanPresident
Executive Vice President
Senior Executive Director
Senior Executive Director
Senior Executive Director
Executive Director
Executive Director
Director

Motohiko Yokoyama
Shoji Ikawa
Takaaki Suzuki
Seiho Kawakami
Hitoshi Shimatani
Masakazu Isaka
Ryuichi Kakui
Masayuki Kitamura
Takeshi Uchiyamada

Corporate auditors
Standing Corporate Auditor
Standing Corporate Auditor
Corporate Auditor
Corporate Auditor
Corporate Auditor

Masatake Enomoto
Hiroshi Fujii
Koichi Fukaya
Atsushi Niimi
Masaaki Kobayashi

Managing officers
Executive Managing Officer
Executive Managing Officer
Executive Managing Officer
Executive Managing Officer
Executive Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer
Managing Officer

Hisashi Matsumoto
Noriya Murase
Motoyasu Nakamura
Tetsuji Okuda
Shiro Nakano
Hiroyuki Kaijima
Atsushi Kume
Yusuke Horiuchi
Azuma Arai
Tomokazu Takahashi
Hirokazu Takii
Masaki Kamikawa
Shinji Uetake
Hiroyuki Miyazaki
Yoshio Tsuji
Keiji Araki
Yutaka Mori
Hidekazu Omura
Katsumi Yamamoto
Kazunori Shimada
Toshiyuki Atsumi
Kazuhisa Makino
Yoshikazu Konishi
Hiroshi Ii
Nobutaka Takeoka

Printed in Japan