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: 1,052 billion yen
Nonconsolidated: 588 billion yen
Consolidated: 39,834 (not including 4,677 part-time employees)
Nonconsolidated: 10,385 (not including 1,982 part-time employees)

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

Motohiko Yokoyama
Shoji Ikawa
Takaaki Suzuki
Seiho Kawakami
Hitoshi Shimatani
Masakazu Isaka
Tetsuji Okuda
Shiro Nakano
Atsushi Kume
Noriya Murase
Takeshi Uchiyamada

Corporate auditors
Corporate Auditor
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

Motoyasu Nakamura
Yusuke Horiuchi
Azuma Arai
Hiroyuki Miyazaki
Hiroyuki Kaijima
Tomokazu Takahashi
Masaki Kamikawa
Shinji Uetake
Yoshio Tsuji
Keiji Araki
Yutaka Mori
Hidekazu Omura
Katsumi Yamamoto
Kazunori Shimada
Toshiyuki Atsumi
Kazuhisa Makino
Yoshikazu Konishi
Hiroshi Ii
Nobutaka Takeoka
Masayuki Watanabe
Hirohito Kimura
Akifumi Tanaka
Toshifumi Sakai
Kunihiko Yokota
Takao Okayasu

Printed in Japan

Annual Report2012
For the year ended March 31, 2012

Consolidated Financial Highlights

Message from the Chairman and the President

Comparison of Five Fiscal Years

First and foremost, we would like to take this opportunity to extend a special thanks to our shareholders for their generous, ongoingsupport.
In the fiscal year ended March 31, 2012, the global economy staged a mild recovery. Although the economic situation in the
euro-zone deteriorated due to the European debt crisis, there was underlying strength in the U.S. economy, as evidenced by the
improved employment situation there. Moreover, although economic growth slowed in Asia, including China, growth rates continued

Net income (loss) per share

Consolidated net sales(billions of yen)

1,200

1,157

to be as high as before, and the global economy was generally in a moderate expansionary phase. The Japanese economy was weighed
down by a number of events that made challenging conditions worse, including a drop in production brought about by the Great East

1,000Japan Earthquake, floods in Thailand, and the sustained appreciation of the yen. Signs of economic recovery began to emerge at the end

800

(yen)

1,052

1,017

955

80

supply responsibilities it had to its customers. In response to the problems of supply chain disruption and power shortages that the

38.91

40
20

400

0

earthquake so clearly exposed, we verified what components would be at risk and realigned the supply chain, including second- and

200

-20

third-tier suppliers, as well as made progress with component standardization. As a result of these initiatives, we were able to make rapid,

0
(FY)

-60
(FY)

flexible adjustments to procurement and production when Thailand was struck by the floods. Furthermore, we set a voluntary target of

59.39

60
600

Amid this management environment, the JTEKT Group sought to minimize the impact of the earthquake and took pains to fulfill the135.58

120
100

769

of the fiscal year, as the strength of the yen was corrected by worldwide monetary easing, and automobile sales increased following areinstatement of the subsidy on sales of environment-friendly automobiles.

140

-40
3/08

3/09

3/10

3/11

3/12

-37.22
3/08

3/09-60.45
3/10

3/11

3/12

a maximum of 25% for reducing power consumption as our contribution to nationwide energy-saving measures in the summer months.
In addition to utilizing renewable energy and introducing energy-saving equipment, we made efforts to improve productivity byintegrating hardening patterns in the heat-treatment process and achieved results.
Looking at consolidated performance for the fiscal year, net sales amounted to 1,052,671 million yen—up 97,200 million yen, or
10.2%, from the level in the previous year—owing to recovery from the Great East Japan Earthquake that struck in March 2011, andrecovery in domestic sales brought about by the increase in automobile sales caused by the reinstatement of the subsidy on sales ofenvironment-friendly automobiles. Regarding profitability, our operating income decreased by 4,267 million yen, or 10.7%, from theprevious year, to 35,657 million yen, as a consequence of the sustained appreciation of the yen, lower selling price levels, and the impactof the floods in Thailand. Ordinary income decreased by 1,613 million yen, or 4.0%, to 38,649 million yen, and net income fell by 6,749

Net assets per share

Consolidated operating income(billions of yen)

(yen)

77

80

1,200

70
1,000

60

The year-end cash dividend was set at 9 yen per share. Consequently, including the interim cash dividend of 7 yen per share, cash

39

40
30

dividends applicable to the fiscal year amounted to 16 yen per share.
The JTEKT Group will emphasize the establishment of a solid management base—underpinned by safety, quality, timely product20

deliveries, and CSR—that is not susceptible to change. Also, from a customer perspective, the Group will at the same time work to reform

10

its management and sales capabilities, product strengths, and monozukuri (fundamental manufacturing activities) as challenges on theway to its next growth phase. By these initiatives, the JTEKT brand will be propelled to a position where customers from around the world

0(FY)

951.66924.27931.09948.40

3/09

3/10

3/11

3/12

800

50

million yen, or 33.7%, to 13,303 million yen due to tax revisions.

1,168.42

35

600
400

22

200
0
3/08

3/09

3/10

3/11

3/12

0
(FY)

3/08

feel it synonymous with reliability and peace of mind.
The Company and some of its subsidiaries are currently under investigation by the Japanese authorities on suspicion of having violated the Japan

Cash dividends per share

Consolidated net income (loss)

Antimonopoly Act. We are also under investigation by the authorities in(billions of yen)

(yen)

Europe for allegedly having contravened EU competition law. The Group is50

cooperating fully with both investigations, which are still under way.
The Group is treating very seriously the facts under investigation and40

tightening up its compliance procedures.

June 2012

01 Annual Report 201220
17

Chairman

Motohiko Yokoyama

20

20

President

Shoji Ikawa

13

16

16

3/11

3/12

15
11

10

Contents
Message from the Chairman and the President
Consolidated Financial Highlights
Overview by Business Segment
Overview by Geographic Area
Topics24

30

We gratefully ask all our shareholders to maintain their unstinting
support and encouragement.

25

43

10

0

01
02
03
04
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

5

-10
-20
(FY)

-11
3/08

3/09

-19
3/10

3/11

3/12

0
(FY)

3/08

3/09

3/10

Annual Report 2012 02

Consolidated Financial Highlights

Message from the Chairman and the President

Comparison of Five Fiscal Years

First and foremost, we would like to take this opportunity to extend a special thanks to our shareholders for their generous, ongoingsupport.
In the fiscal year ended March 31, 2012, the global economy staged a mild recovery. Although the economic situation in the
euro-zone deteriorated due to the European debt crisis, there was underlying strength in the U.S. economy, as evidenced by the
improved employment situation there. Moreover, although economic growth slowed in Asia, including China, growth rates continued

Net income (loss) per share

Consolidated net sales(billions of yen)

1,200

1,157

to be as high as before, and the global economy was generally in a moderate expansionary phase. The Japanese economy was weighed
down by a number of events that made challenging conditions worse, including a drop in production brought about by the Great East

1,000Japan Earthquake, floods in Thailand, and the sustained appreciation of the yen. Signs of economic recovery began to emerge at the end

800

(yen)

1,052

1,017

955

80

supply responsibilities it had to its customers. In response to the problems of supply chain disruption and power shortages that the

38.91

40
20

400

0

earthquake so clearly exposed, we verified what components would be at risk and realigned the supply chain, including second- and

200

-20

third-tier suppliers, as well as made progress with component standardization. As a result of these initiatives, we were able to make rapid,

0
(FY)

-60
(FY)

flexible adjustments to procurement and production when Thailand was struck by the floods. Furthermore, we set a voluntary target of

59.39

60
600

Amid this management environment, the JTEKT Group sought to minimize the impact of the earthquake and took pains to fulfill the135.58

120
100

769

of the fiscal year, as the strength of the yen was corrected by worldwide monetary easing, and automobile sales increased following areinstatement of the subsidy on sales of environment-friendly automobiles.

140

-40
3/08

3/09

3/10

3/11

3/12

-37.22
3/08

3/09-60.45
3/10

3/11

3/12

a maximum of 25% for reducing power consumption as our contribution to nationwide energy-saving measures in the summer months.
In addition to utilizing renewable energy and introducing energy-saving equipment, we made efforts to improve productivity byintegrating hardening patterns in the heat-treatment process and achieved results.
Looking at consolidated performance for the fiscal year, net sales amounted to 1,052,671 million yen—up 97,200 million yen, or
10.2%, from the level in the previous year—owing to recovery from the Great East Japan Earthquake that struck in March 2011, andrecovery in domestic sales brought about by the increase in automobile sales caused by the reinstatement of the subsidy on sales ofenvironment-friendly automobiles. Regarding profitability, our operating income decreased by 4,267 million yen, or 10.7%, from theprevious year, to 35,657 million yen, as a consequence of the sustained appreciation of the yen, lower selling price levels, and the impactof the floods in Thailand. Ordinary income decreased by 1,613 million yen, or 4.0%, to 38,649 million yen, and net income fell by 6,749

Net assets per share

Consolidated operating income(billions of yen)

(yen)

77

80

1,200

70
1,000

60

The year-end cash dividend was set at 9 yen per share. Consequently, including the interim cash dividend of 7 yen per share, cash

39

40
30

dividends applicable to the fiscal year amounted to 16 yen per share.
The JTEKT Group will emphasize the establishment of a solid management base—underpinned by safety, quality, timely product20

deliveries, and CSR—that is not susceptible to change. Also, from a customer perspective, the Group will at the same time work to reform

10

its management and sales capabilities, product strengths, and monozukuri (fundamental manufacturing activities) as challenges on theway to its next growth phase. By these initiatives, the JTEKT brand will be propelled to a position where customers from around the world

0(FY)

951.66924.27931.09948.40

3/09

3/10

3/11

3/12

800

50

million yen, or 33.7%, to 13,303 million yen due to tax revisions.

1,168.42

35

600
400

22

200
0
3/08

3/09

3/10

3/11

3/12

0
(FY)

3/08

feel it synonymous with reliability and peace of mind.
The Company and some of its subsidiaries are currently under investigation by the Japanese authorities on suspicion of having violated the Japan

Cash dividends per share

Consolidated net income (loss)

Antimonopoly Act. We are also under investigation by the authorities in(billions of yen)

(yen)

Europe for allegedly having contravened EU competition law. The Group is50

cooperating fully with both investigations, which are still under way.
The Group is treating very seriously the facts under investigation and40

tightening up its compliance procedures.

June 2012

01 Annual Report 201220
17

Chairman

Motohiko Yokoyama

20

20

President

Shoji Ikawa

13

16

16

3/11

3/12

15
11

10

Contents
Message from the Chairman and the President
Consolidated Financial Highlights
Overview by Business Segment
Overview by Geographic Area
Topics24

30

We gratefully ask all our shareholders to maintain their unstinting
support and encouragement.

25

43

10

0

01
02
03
04
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

5

-10
-20
(FY)

-11
3/08

3/09

-19
3/10

3/11

3/12

0
(FY)

3/08

3/09

3/10

Annual Report 2012 02

Summary by Business Segment

JTEKT is a unique company, even by global standards, with a product portfolio that includes machine parts, machine tools, and automobile parts.

Overview by Geographic Area
Consolidated subsidiaries:

Machine Tooland Mechatronics Business

Steering System Business

443 billion yen

149 billion yen

Steering system products are responsible forvehicle “turning” functions.

Machine tool and mechatronics products aremachines that make other machines that
support Japan’s industrial craftsmanship andmanufacturing capabilities.

140
20
39,834 (4,677)*1

Equity - method companies:
Number of employees:

North America
EuropeMachine Tool
Business

Japan

Electric power steering systems

Machine tools
and mechatronics

Asia, Oceania, and others*(excluding Japan)

14.2

％

Camshaft grinding machine

Asia, Oceania, and others*(excluding Japan)

Driveline components

11.4

％

1,052 42.2

Steering systems％

billion yen

Japan

32.2

％

Consolidated subsidiaries:

Equity - method companies:

Equity - method companies:

700

119 billion yen

Bearing Business

Number of employees:
200

634
500

522

339 billion yen
Bearings facilitate the motion of rotating partsand reduce frictional resistance in all types ofmachinery and equipment.

100
0
(FY)

50

3/08

3/09

3/10

3/11

3/08

3/09

3/10

3/11

3/12

Asia, Oceania, and others*(excluding Japan)

26
Equity - method companies:
3
Number of employees: 7,515 (710)*1
Consolidated subsidiaries:

Bearings for use in wind power generation equipment

0
(FY)

3/12

EuropeElectronically controlled four-wheel drive coupling (ITCC)

94

100

200

146

145

150

437

400
300

182

170

539

500

Machinery andAutomotive Components

1724,935 (579)*1

Consolidated subsidiaries:

600

Driveline component products transmit drive
power and are responsible for vehicle “running”
functions.

North America

42
5
Number of employees: 16,771 (2,748)*1

Bearings

Driveline Component Business*Includes South America■Transition of Sales（billions of yen）

250

55
10
Number of employees: 10,613 (640)*1
Consolidated subsidiaries:

Equity - method companies:
200

231

166

200

200

169

150

134

150
120

143

178

131
103

100

100
50

50
0
(FY)

3/08

3/09

3/10

3/11

3/12

0
(FY)

3/08

3/09

3/10

3/11

3/12

*1: The figure in parentheses is the average number of part-time employee, which is not included in the total.

03 Annual Report 2012

Annual Report 2012 04

Summary by Business Segment

JTEKT is a unique company, even by global standards, with a product portfolio that includes machine parts, machine tools, and automobile parts.

Overview by Geographic Area
Consolidated subsidiaries:

Machine Tooland Mechatronics Business

Steering System Business

443 billion yen

149 billion yen

Steering system products are responsible forvehicle “turning” functions.

Machine tool and mechatronics products aremachines that make other machines that
support Japan’s industrial craftsmanship andmanufacturing capabilities.

140
20
39,834 (4,677)*1

Equity - method companies:
Number of employees:

North America
EuropeMachine Tool
Business

Japan

Electric power steering systems

Machine tools
and mechatronics

Asia, Oceania, and others*(excluding Japan)

14.2

％

Camshaft grinding machine

Asia, Oceania, and others*(excluding Japan)

Driveline components

11.4

％

1,052 42.2

Steering systems％

billion yen

Japan

32.2

％

Consolidated subsidiaries:

Equity - method companies:

Equity - method companies:

700

119 billion yen

Bearing Business

Number of employees:
200

634
500

522

339 billion yen
Bearings facilitate the motion of rotating partsand reduce frictional resistance in all types ofmachinery and equipment.

100
0
(FY)

50

3/08

3/09

3/10

3/11

3/08

3/09

3/10

3/11

3/12

Asia, Oceania, and others*(excluding Japan)

26
Equity - method companies:
3
Number of employees: 7,515 (710)*1
Consolidated subsidiaries:

Bearings for use in wind power generation equipment

0
(FY)

3/12

EuropeElectronically controlled four-wheel drive coupling (ITCC)

94

100

200

146

145

150

437

400
300

182

170

539

500

Machinery andAutomotive Components

1724,935 (579)*1

Consolidated subsidiaries:

600

Driveline component products transmit drive
power and are responsible for vehicle “running”
functions.

North America

42
5
Number of employees: 16,771 (2,748)*1

Bearings

Driveline Component Business*Includes South America■Transition of Sales（billions of yen）

250

55
10
Number of employees: 10,613 (640)*1
Consolidated subsidiaries:

Equity - method companies:
200

231

166

200

200

169

150

134

150
120

143

178

131
103

100

100
50

50
0
(FY)

3/08

3/09

3/10

3/11

3/12

0
(FY)

3/08

3/09

3/10

3/11

3/12

*1: The figure in parentheses is the average number of part-time employee, which is not included in the total.

03 Annual Report 2012

Annual Report 2012 04

Topics
Business-Related
Construction of the Iga Test Course

Integrated Brand Logo Established

JTEKT is constructing a test course in Iga City*1, Mie Prefecture for the assess-*1: Iga City in Mie Prefecture is located 80 kilometers southwest of Nagoya.

JTEKT has established an integrated brand logo to express how the Company’s threebusiness brands are positioned and to clarify their integration. Supporters of industrial
development, Koyo and Toyoda combined their respective bearing and machine toolbusinesses as well as their automotive parts businesses to form JTEKT. As a system supplier,
JTEKT is determined to make an extensive contribution to forming a prosperous society
through its proven technological capabilities.
The design of the central “T” is based on the ancient Greek word tekton (meaning aperson who possesses superior technical skills, i.e., technology), from which the name JTEKT
is derived.

Local Production of Bearings Started in Indonesia

JTEKT Vision 2015 Updated

ment and analysis of its original automobile steering systems, drive systems,
and bearing units. Completion of the course is scheduled for September 2012.
This test course will provide various types of road surfaces and road conditions,
Architect’s drawing of the completed course
including a straight road for high-speed tests, a handling test road with avariety of configurations, a turning test road, a road for abnormal noise evaluation, and other types of test roads. These various testing conditions will enable JTEKT to fully evaluate its products and, thereby, contribute to consumer satisfaction by proposing originally standardized
products and a new series of products as well as thereby reducing development expenses and shortening lead times.

In response to market expansion in Indonesia, where economic growth is expected, PT.
JTEKT INDONESIA (JID) commenced local integrated production of an electronic power
steering (EPS) system in October 2011 and also started the local production of bearings inDecember 2011.
The Indonesian automobile market is currently ranked second in Southeast Asia, and that
local motorcycle market is ranked third in the world. Further growth is also expected against
a background of a population of more than 230 million. By expanding local procurement andenhancing its competitiveness, JID has its sights set on a 70% share of the Indonesian market
for EPS products and a 30% share of that for bearings.

Artist’s impression of Plant 1

Technology and Quality-Related
Artist’s impression of the completed No. 2 bearing plant

Bearing Manufacturing Plant Established in India
JTEKT established India’s first bearing manufacturing facility at Koyo Bearings India Pvt. Ltd.
(KBIN) in Bawal, where production will begin in November 2012. Wholly owned subsidiary
KBIN’s Bawal plant will set up a system to supply its products to Japanese and local automobile and motorcycle makers as well as to makers of general industrial machinery, including
construction and agricultural machines.
JTEKT will work to increase its overall business in India, by strengthening its competitiveness through the promotion of local procurement as it also strengthens its matrix sales
capabilities by integrating its bearing and machine tool sales networks to offer a wider line ofproducts and services to their respective customer bases.

Artist’s impression of the new Bawal plant after completion

Eco Package Proposed

05 Annual Report 2012

Building Development Processes toward Adaptation of Automobile Industry
Functional Safety Standard ISO 26262
Utilizing IBM Japan Ltd. requirement management and development management tools, JTEKT has secured traceability in its control
system development processes that conforms to ISO 26262 requirements, the functional safety standard covering automotive electronic
control systems. Developing processes and technologies that are in compliance with functional safety standards in its European business,
JTEKT is recognized by European automakers as fulfilling European functional safety requirements. As a company that delivers safety andpeace of mind to its customers, JTEKT will work to remain ISO 26262-compliant.
*What Is ISO 26262?
ISO 26262 is the international standard covering the functional safety of electronic control systems installed in automobiles. Defining proper processes covering in detail entire productdevelopment lifecycles, the standard calls for mechanisms that reduce the risk of failures to be incorporated into development processes. The standard came into effect late in 2011.

A Shinto ceremony was conducted to purify
the site prior to the start of construction.

JTEKT exhibited at the 42nd Tokyo Motor Show, which was held at
Tokyo Big Sight in December 2011, and also at AUTO EXPO 2012,
which was staged in New Delhi, India, in January 2012.
As a systems supplier that is targeting the No. 1 position in terms of
the high level of its contribution to the natural environment, JTEKT
proposed a skeleton model of its Eco Package (a total approach to
reducing fuel consumption). JTEKT also exhibited a range of productsthat support the key concepts of environment, safety, and comfort,
including a variety of cutting-edge EPS systems; state-of-the-art
bearings and driveline components; and machine tools that support
automobile production.

In 2006, JTEKT drew up in its JTEKT Vision 2015, by which it aimed to merge two corporate cultures and climates as well as bring to fruition
aspects of its corporate philosophy. This time, because of changes in the business environment and the need to respond to globalization,
JTEKT updated the original vision. While supplying new value based on technology, JTEKT is working to develop business in emerging
countries and expand its business fields, building customer trust and acting as a company conducting monozukuri (fundamental manufacturing activities).

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.

Compliance Promotion Office Established
In November 2011, JTEKT established a Compliance Promotion Office as a new office dedicated to the promotion of compliance activities
and also appointed 23 persons, mainly managing officers, to serve as Compliance Officers (18 in Japan and 5 overseas). From the end ofJanuary through March 2012, the Compliance Promotion Office conducted compliance checks at a total of 160 internal departments andgroup companies both in Japan and overseas. JTEKT also educates employees on compliance as a part of rank-based training and throughe-learning activities, and the Legal Department periodically conducts compliance training at all sites. By these and other means, JTEKT is
striving to raise awareness among employees of all levels of the need for compliance in daily business activities.

Skeleton model exhibit

Support Provided to Areas Affected by Thai Floods
When the floods struck Thailand in August 2011, the JTEKT Group provided the following for reconstruction assistance in the affected areas:●Donation of 5 million baht (approx. 12.5 million yen)
Tokyo Motor Show

AUTO EXPO in New Delhi, India●Restored to operation 199 machines belonging to 35 local customer companies

Annual Report 2012 06

Topics
Business-Related
Construction of the Iga Test Course

Integrated Brand Logo Established

JTEKT is constructing a test course in Iga City*1, Mie Prefecture for the assess-*1: Iga City in Mie Prefecture is located 80 kilometers southwest of Nagoya.

JTEKT has established an integrated brand logo to express how the Company’s threebusiness brands are positioned and to clarify their integration. Supporters of industrial
development, Koyo and Toyoda combined their respective bearing and machine toolbusinesses as well as their automotive parts businesses to form JTEKT. As a system supplier,
JTEKT is determined to make an extensive contribution to forming a prosperous society
through its proven technological capabilities.
The design of the central “T” is based on the ancient Greek word tekton (meaning aperson who possesses superior technical skills, i.e., technology), from which the name JTEKT
is derived.

Local Production of Bearings Started in Indonesia

JTEKT Vision 2015 Updated

ment and analysis of its original automobile steering systems, drive systems,
and bearing units. Completion of the course is scheduled for September 2012.
This test course will provide various types of road surfaces and road conditions,
Architect’s drawing of the completed course
including a straight road for high-speed tests, a handling test road with avariety of configurations, a turning test road, a road for abnormal noise evaluation, and other types of test roads. These various testing conditions will enable JTEKT to fully evaluate its products and, thereby, contribute to consumer satisfaction by proposing originally standardized
products and a new series of products as well as thereby reducing development expenses and shortening lead times.

In response to market expansion in Indonesia, where economic growth is expected, PT.
JTEKT INDONESIA (JID) commenced local integrated production of an electronic power
steering (EPS) system in October 2011 and also started the local production of bearings inDecember 2011.
The Indonesian automobile market is currently ranked second in Southeast Asia, and that
local motorcycle market is ranked third in the world. Further growth is also expected against
a background of a population of more than 230 million. By expanding local procurement andenhancing its competitiveness, JID has its sights set on a 70% share of the Indonesian market
for EPS products and a 30% share of that for bearings.

Artist’s impression of Plant 1

Technology and Quality-Related
Artist’s impression of the completed No. 2 bearing plant

Bearing Manufacturing Plant Established in India
JTEKT established India’s first bearing manufacturing facility at Koyo Bearings India Pvt. Ltd.
(KBIN) in Bawal, where production will begin in November 2012. Wholly owned subsidiary
KBIN’s Bawal plant will set up a system to supply its products to Japanese and local automobile and motorcycle makers as well as to makers of general industrial machinery, including
construction and agricultural machines.
JTEKT will work to increase its overall business in India, by strengthening its competitiveness through the promotion of local procurement as it also strengthens its matrix sales
capabilities by integrating its bearing and machine tool sales networks to offer a wider line ofproducts and services to their respective customer bases.

Artist’s impression of the new Bawal plant after completion

Eco Package Proposed

05 Annual Report 2012

Building Development Processes toward Adaptation of Automobile Industry
Functional Safety Standard ISO 26262
Utilizing IBM Japan Ltd. requirement management and development management tools, JTEKT has secured traceability in its control
system development processes that conforms to ISO 26262 requirements, the functional safety standard covering automotive electronic
control systems. Developing processes and technologies that are in compliance with functional safety standards in its European business,
JTEKT is recognized by European automakers as fulfilling European functional safety requirements. As a company that delivers safety andpeace of mind to its customers, JTEKT will work to remain ISO 26262-compliant.
*What Is ISO 26262?
ISO 26262 is the international standard covering the functional safety of electronic control systems installed in automobiles. Defining proper processes covering in detail entire productdevelopment lifecycles, the standard calls for mechanisms that reduce the risk of failures to be incorporated into development processes. The standard came into effect late in 2011.

A Shinto ceremony was conducted to purify
the site prior to the start of construction.

JTEKT exhibited at the 42nd Tokyo Motor Show, which was held at
Tokyo Big Sight in December 2011, and also at AUTO EXPO 2012,
which was staged in New Delhi, India, in January 2012.
As a systems supplier that is targeting the No. 1 position in terms of
the high level of its contribution to the natural environment, JTEKT
proposed a skeleton model of its Eco Package (a total approach to
reducing fuel consumption). JTEKT also exhibited a range of productsthat support the key concepts of environment, safety, and comfort,
including a variety of cutting-edge EPS systems; state-of-the-art
bearings and driveline components; and machine tools that support
automobile production.

In 2006, JTEKT drew up in its JTEKT Vision 2015, by which it aimed to merge two corporate cultures and climates as well as bring to fruition
aspects of its corporate philosophy. This time, because of changes in the business environment and the need to respond to globalization,
JTEKT updated the original vision. While supplying new value based on technology, JTEKT is working to develop business in emerging
countries and expand its business fields, building customer trust and acting as a company conducting monozukuri (fundamental manufacturing activities).

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.

Compliance Promotion Office Established
In November 2011, JTEKT established a Compliance Promotion Office as a new office dedicated to the promotion of compliance activities
and also appointed 23 persons, mainly managing officers, to serve as Compliance Officers (18 in Japan and 5 overseas). From the end ofJanuary through March 2012, the Compliance Promotion Office conducted compliance checks at a total of 160 internal departments andgroup companies both in Japan and overseas. JTEKT also educates employees on compliance as a part of rank-based training and throughe-learning activities, and the Legal Department periodically conducts compliance training at all sites. By these and other means, JTEKT is
striving to raise awareness among employees of all levels of the need for compliance in daily business activities.

Skeleton model exhibit

Support Provided to Areas Affected by Thai Floods
When the floods struck Thailand in August 2011, the JTEKT Group provided the following for reconstruction assistance in the affected areas:●Donation of 5 million baht (approx. 12.5 million yen)
Tokyo Motor Show

AUTO EXPO in New Delhi, India●Restored to operation 199 machines belonging to 35 local customer companies

Annual Report 2012 06

Financial Data
Consolidated Statement of Cash Flows

Consolidated Statement of Income
and Retained Earnings

Consolidated Balance Sheet
March 31, 2012

For the year ended March 31, 2012

For the year ended March 31, 2012ASSETS

Millions of yen

Thousands of
U.S. dollars

2012

2012

Current assets:￥ 53,625 ＄Cash652,456

Time deposits

2,034

24,748

Short-term investments

93,035

1,131,945

Trade196,733

2,393,637

Unconsolidated subsidiaries and affiliates

14,038170,803

Notes and accounts receivable:

Other
Allowance for doubtful accounts

24,260295,169

235,0312,859,609(859)(10,455)

234,172

2,849,154

Inventories

154,576

1,880,713

Deferred tax assets

14,259173,492

Other current assets
Total current assets

12,576

153,014564,277

6,865,522

Investments and advances:
Investments in securities

41,062499,592

Investments in and advances to unconsolidated
subsidiaries and affiliates

13,842

168,418

54,904

668,010

Property, plant and equipment:
Buildings and structures

213,325

2,595,515

Machinery and equipment

690,176

8,397,321

Lease assets

2,838

34,523906,339

11,027,359(683,434)(8,315,288)

222,905

2,712,071

Land

55,970680,977

Construction in progress

29,415357,896308,290

3,750,944

18,235

221,869

Accumulated depreciation

Deferred tax assets
Other assets
Total assets

13,968

169,943￥959,674 ＄11,676,288

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

2012

2012

￥ 87,316 ＄ 1,062,364

25,402
192,870
13,37917,692
17,463
241,404

309,058
2,346,643
162,788
215,252
212,466
2,937,149
72,229413,783
149,245
4,943,828

Long-term debt
142,391
Accrued indemnities from retirement benefit plan 58,854
Accrued severance indemnities for members of
the board of directors and corporate auditors
2,914
Deferred tax liabilities
1,762
Other liabilities
5,079
Total liabilities
617,333

1,732,459
716,072
35,45021,44061,8037,511,052

Net assets:
Shareholders' equity:
Common stock:
Authorized - 1,200,000 thousand shares
Issued - 342,186 thousand shares
45,591
554,707
Capital surplus
108,238
1,316,919
Retained earnings
200,8022,443,147
Less: Treasury shares(383)(4,663)
Evaluation and conversion difference:
Unrealized gain on other securities
10,968133,451
Translation adjustments on foreign currency
financial statements(40,960)(498,361)
Minority interests in consolidated subsidiaries
18,085220,036
Total net assets
342,341
4,165,236
Total liabilities and net assets￥959,674 ＄11,676,288

Thousands of
U.S. dollars

Millions of yen

2012

Net sales

5,937
34,00912,265406,333

2012￥1,052,671＄12,807,775

Cash flows from operating activities:

903,462

10,992,363

Income before income taxes

149,209

1,815,412

Depreciation and amortization

113,551

1,381,565

Equity in earnings of unconsolidated subsidiaries

35,658433,847

Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income (expenses):(Affiliates accounted for by the equity method)
JTEKT (THAILAND) CO., LTD.
JTEKT AUTOMOTIVE TENNESSEE-MORRISTOWN, INC.
JTEKT AUTOMOTIVE TENNESSEE-VONORE LLC
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.

Thousands of
U.S. dollars

2012

2012

￥ 31,530 ＄ 383,622
46,740568,685

and affiliates(2,036)(24,772)

Notes and accounts receivable(42,533)(517,502)

1,484

18,054Inventories(22,029)(268,023)

Interest expense(3,373)(41,045)

Notes and accounts payable

54,480662,853(184)(2,237)

Bonuses to directors and corporate auditors(378)(4,593)

Payment of income taxes(11,913)(144,944)(2,709)(32,961)

Other, net(4,983)(60,628)

subsidiaries and affiliates

2,036

24,772

48,878594,698

Other, net(1,382)(16,808)(4,128)(50,225)

2,145

26,104

31,530383,622(2)(26)(56,435)(686,646)

Current

11,981

145,769

Proceeds from sales of property,

Deferred

4,353

52,969plant and equipment

1,163

14,154

1,893

23,027

Increase in investments in securities(1,250)(15,202)(385)(4,687)

Loss on sales or disposal of property,
plant and equipment, net

Net cash provided by

Equity in loss of unconsolidated

Income before income taxes
Income taxes:

consolidated subsidiaries

Increase in marketable securities

Increase in loans receivable￥

13,303＄

161,857

Consolidated retained earnings:
Balance at beginning of the year

Cash flows from investing activities:

Purchases of property, plant and equipment

Minority interests in net income of
Net income

financing activities

Decrease in time deposits

and items listed below

Other, net
Net cash used by investing activities￥ 195,036(1,449)(17,633)(56,213)(683,936)＄ 2,372,986

Cash flows from financing activities:

Net decrease due to the change
in scope of consolidation(2,066)(25,131)

Increase in short-term loans

22,428272,885

Cash dividends(5,471)(66,565)

Increase in short-term loans

24,814

301,909￥ 200,802＄ 2,443,147

Cash dividends(6,981)(84,942)(741)(9,015)

Net cash provided by financing activities

39,520480,837

Exchange difference of cash and cash equivalents(201)(2,446)

Balance at end of the year

Other, net

Per share:
Net income

Yen

U.S. dollars

Net increase in cash and cash equivalents

31,984

389,153￥38.91＄0.47

Cash and cash equivalents at beginning of the year

113,513

1,381,110

16.00

0.19

Net increase due to the change in scope of consolidation

842

10,245

341,897

341,897

286

3,472

Weighted average number of common shares(Consolidated subsidiaries)

Millions of yen

Interest and dividend income

Cash dividends

As of March 31, 2012, JTEKT had 140 consolidated subsidiaries and 20 affiliates accounted for by the equity method.
The main ones of each type are shown below.

07 Annual Report 2012

Thousands of
U.S. dollars

Foreign currency exchange loss, net

Conversion rate: ￥82.19 per U.S. dollar

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.

Millions of yen

outstanding (thousands)

Increase in cash and cash equivalents resulting
from merger
Cash and cash equivalents at end of the year

￥146,625 ＄1,783,980

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

Annual Report 2012 08

Financial Data
Consolidated Statement of Cash Flows

Consolidated Statement of Income
and Retained Earnings

Consolidated Balance Sheet
March 31, 2012

For the year ended March 31, 2012

For the year ended March 31, 2012ASSETS

Millions of yen

Thousands of
U.S. dollars

2012

2012

Current assets:￥ 53,625 ＄Cash652,456

Time deposits

2,034

24,748

Short-term investments

93,035

1,131,945

Trade196,733

2,393,637

Unconsolidated subsidiaries and affiliates

14,038170,803

Notes and accounts receivable:

Other
Allowance for doubtful accounts

24,260295,169

235,0312,859,609(859)(10,455)

234,172

2,849,154

Inventories

154,576

1,880,713

Deferred tax assets

14,259173,492

Other current assets
Total current assets

12,576

153,014564,277

6,865,522

Investments and advances:
Investments in securities

41,062499,592

Investments in and advances to unconsolidated
subsidiaries and affiliates

13,842

168,418

54,904

668,010

Property, plant and equipment:
Buildings and structures

213,325

2,595,515

Machinery and equipment

690,176

8,397,321

Lease assets

2,838

34,523906,339

11,027,359(683,434)(8,315,288)

222,905

2,712,071

Land

55,970680,977

Construction in progress

29,415357,896308,290

3,750,944

18,235

221,869

Accumulated depreciation

Deferred tax assets
Other assets
Total assets

13,968

169,943￥959,674 ＄11,676,288

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

2012

2012

￥ 87,316 ＄ 1,062,364

25,402
192,870
13,37917,692
17,463
241,404

309,058
2,346,643
162,788
215,252
212,466
2,937,149
72,229413,783
149,245
4,943,828

Long-term debt
142,391
Accrued indemnities from retirement benefit plan 58,854
Accrued severance indemnities for members of
the board of directors and corporate auditors
2,914
Deferred tax liabilities
1,762
Other liabilities
5,079
Total liabilities
617,333

1,732,459
716,072
35,45021,44061,8037,511,052

Net assets:
Shareholders' equity:
Common stock:
Authorized - 1,200,000 thousand shares
Issued - 342,186 thousand shares
45,591
554,707
Capital surplus
108,238
1,316,919
Retained earnings
200,8022,443,147
Less: Treasury shares(383)(4,663)
Evaluation and conversion difference:
Unrealized gain on other securities
10,968133,451
Translation adjustments on foreign currency
financial statements(40,960)(498,361)
Minority interests in consolidated subsidiaries
18,085220,036
Total net assets
342,341
4,165,236
Total liabilities and net assets￥959,674 ＄11,676,288

Thousands of
U.S. dollars

Millions of yen

2012

Net sales

5,937
34,00912,265406,333

2012￥1,052,671＄12,807,775

Cash flows from operating activities:

903,462

10,992,363

Income before income taxes

149,209

1,815,412

Depreciation and amortization

113,551

1,381,565

Equity in earnings of unconsolidated subsidiaries

35,658433,847

Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income (expenses):(Affiliates accounted for by the equity method)
JTEKT (THAILAND) CO., LTD.
JTEKT AUTOMOTIVE TENNESSEE-MORRISTOWN, INC.
JTEKT AUTOMOTIVE TENNESSEE-VONORE LLC
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.

Thousands of
U.S. dollars

2012

2012

￥ 31,530 ＄ 383,622
46,740568,685

and affiliates(2,036)(24,772)

Notes and accounts receivable(42,533)(517,502)

1,484

18,054Inventories(22,029)(268,023)

Interest expense(3,373)(41,045)

Notes and accounts payable

54,480662,853(184)(2,237)

Bonuses to directors and corporate auditors(378)(4,593)

Payment of income taxes(11,913)(144,944)(2,709)(32,961)

Other, net(4,983)(60,628)

subsidiaries and affiliates

2,036

24,772

48,878594,698

Other, net(1,382)(16,808)(4,128)(50,225)

2,145

26,104

31,530383,622(2)(26)(56,435)(686,646)

Current

11,981

145,769

Proceeds from sales of property,

Deferred

4,353

52,969plant and equipment

1,163

14,154

1,893

23,027

Increase in investments in securities(1,250)(15,202)(385)(4,687)

Loss on sales or disposal of property,
plant and equipment, net

Net cash provided by

Equity in loss of unconsolidated

Income before income taxes
Income taxes:

consolidated subsidiaries

Increase in marketable securities

Increase in loans receivable￥

13,303＄

161,857

Consolidated retained earnings:
Balance at beginning of the year

Cash flows from investing activities:

Purchases of property, plant and equipment

Minority interests in net income of
Net income

financing activities

Decrease in time deposits

and items listed below

Other, net
Net cash used by investing activities￥ 195,036(1,449)(17,633)(56,213)(683,936)＄ 2,372,986

Cash flows from financing activities:

Net decrease due to the change
in scope of consolidation(2,066)(25,131)

Increase in short-term loans

22,428272,885

Cash dividends(5,471)(66,565)

Increase in short-term loans

24,814

301,909￥ 200,802＄ 2,443,147

Cash dividends(6,981)(84,942)(741)(9,015)

Net cash provided by financing activities

39,520480,837

Exchange difference of cash and cash equivalents(201)(2,446)

Balance at end of the year

Other, net

Per share:
Net income

Yen

U.S. dollars

Net increase in cash and cash equivalents

31,984

389,153￥38.91＄0.47

Cash and cash equivalents at beginning of the year

113,513

1,381,110

16.00

0.19

Net increase due to the change in scope of consolidation

842

10,245

341,897

341,897

286

3,472

Weighted average number of common shares(Consolidated subsidiaries)

Millions of yen

Interest and dividend income

Cash dividends

As of March 31, 2012, JTEKT had 140 consolidated subsidiaries and 20 affiliates accounted for by the equity method.
The main ones of each type are shown below.

07 Annual Report 2012

Thousands of
U.S. dollars

Foreign currency exchange loss, net

Conversion rate: ￥82.19 per U.S. dollar

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.

Millions of yen

outstanding (thousands)

Increase in cash and cash equivalents resulting
from merger
Cash and cash equivalents at end of the year

￥146,625 ＄1,783,980

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

Annual Report 2012 08

Financial Data
Nonconsolidated Balance Sheet

For the year ended March 31, 2012

March 31, 2012ASSETS

Millions of yen

Thousands of
U.S. dollars

2012

2012

Current assets:
Cash
Short-term investments￥ 5,283 ＄
93,00064,272

1,131,525

2012

2012

Short-term loans
Current portion of long-term debt

￥ 48,751 ＄ 593,146
16,000

194,671

639,187(share quantities in units of 1,000)

47,515578,108

5,020

61,079

1. Number of authorized shares: 1,200,000
Number of issued shares:
342,186
2. Number of shareholders:
20,8903. Major (top 10) shareholders

717,707

Other income (expenses):

138,651

Interest and dividend income

12,383

150,660

Other

4,481

54,522

Interest expense(1,588)(19,320)

197,453

2,402,398

Foreign currency exchange loss, net

387

4,713

Income tax payable

81

988

Loss on sales or disposal of property,

508,569

Accrued expenses

15,043

183,024

plant and equipment, net(1,095)(13,326)

10,449127,130

Other current liabilities

13,830168,276

Other, net(1,258)(15,304)

4,448

54,116291,158

3,542,503

8,829

107,423

348,128

4,235,648

Income before income taxes and items listed below 13,849

168,5022,350,535

(41)

(499)

193,149

2,350,036

Inventories

41,799Deferred tax assets
Other current assets

Investments and advances:
29,193355,186

Investments in and advances toTotal current liabilities
Long-term debt

113,000

1,374,863

Income taxes:

Accrued indemnities from retirement benefit plan

39,019474,738

Current

1,050

12,775

Deferred

3,636

44,239￥ 9,163＄ 111,488

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

207,572

2,525,512

236,765

2,880,698

Buildings and structures

119,688

1,456,234

Machinery and equipment

373,094

4,539,406

Shareholders' equity:

1,161

14,134

Common stock:493,943

6,009,774

Other liabilities
Total liabilities

1,389

16,893

1,042

12,682445,608

5,421,679

Property, plants and equipment:(405,196) (4,929,997)

Net assets:

Per share:

Yen

U.S. dollars

Net income￥26.80＄0.33

Cash dividends

16.00

0.19

341,935

341,935

Weighted average number of common shares
outstanding (thousands)
45,591

554,707

Capital surplus

108,230

1,316,832

Retained earnings

130,830

1,591,796(345)(4,199)10,286125,144294,592

3,584,280

Issued - 342,186 thousand shares

88,747

1,079,777

38,864472,856

Construction in progress

10,549128,353

138,160

1,680,986

Evaluation and conversion difference:

10,096

122,832

Unrealized gain on other securities

7,051

85,795

Total net assets￥740,199 ＄9,005,959

Net income

Shareholder
Toyota Motor Corporation

No. of shares
77,235

Japan Trustee Services Bank, Ltd.

19,685The Master Trust Bank of Japan, Ltd.

18,892Denso Corporation

18,371

Nippon Life Insurance Company

12,361

National Mutual Insurance Federation ofAgricultural Cooperatives

8,807

Toyota Industries Corporation

7,813

Resona Bank, Ltd.

6,749

The Sumitomo Trust and Banking Co., Ltd.

6,729

Sumitomo Mitsui Banking Corporation

6,366

As of April 1, 2012, The Sumitomo Trust and Banking Co., Ltd., merged with The Chou Mitsui Trustand Banking Company, Limited, and Chuo Mitsui Asset Trust and Banking Company, Limited, to form
Sumitomo Mitsui Trust Bank, Limited.

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

Authorized - 1,200,000 thousand sharesLand

09 Annual Report 2012

52,535

11,396

193,190

Conversion rate: ￥82.19 per U.S. dollar

6,524,385

58,988

187,518

Total assets

536,239

Construction

1,235,348

15,412Other assets

Gross profit
Selling, general and administrative expenses＄7,163,572

Subsidiaries and affiliates

101,533

Deferred tax assets

Cost of sales

2012

Shareholder Information
as of March 2012

￥588,774

Operating income

Other

Accumulated depreciation2012

Net sales

Thousands of
U.S. dollars

1,491,518

Subsidiaries and affiliates

Lease assets

Millions of yen

122,588927,669

subsidiaries and affiliates

Thousands of
U.S. dollars

Trade76,245Investments in securities

Millions of yen

Notes and accounts payable:

Trade

Total current assets

LIABILITIES AND NET ASSETS
Current liabilities:

Notes and accounts receivable:

Allowance for doubtful accounts

Stock Information

Nonconsolidated Statement of Income

Less: Treasury shares

Total liabilities and net assets￥740,199 ＄9,005,959

Self-owned shares
251(0.1%)
Individuals
24,986(7.3%)
Foreign companies
61,766(18.0%)
Japanese companies
127,288(37.2%)

Financial organizations
117,223(34.3%)

Securities companies
10,669
(3.1%)

Annual Report 2012 10

Financial Data
Nonconsolidated Balance Sheet

For the year ended March 31, 2012

March 31, 2012ASSETS

Millions of yen

Thousands of
U.S. dollars

2012

2012

Current assets:
Cash
Short-term investments￥ 5,283 ＄
93,00064,272

1,131,525

2012

2012

Short-term loans
Current portion of long-term debt

￥ 48,751 ＄ 593,146
16,000

194,671

639,187(share quantities in units of 1,000)

47,515578,108

5,020

61,079

1. Number of authorized shares: 1,200,000
Number of issued shares:
342,186
2. Number of shareholders:
20,8903. Major (top 10) shareholders

717,707

Other income (expenses):

138,651

Interest and dividend income

12,383

150,660

Other

4,481

54,522

Interest expense(1,588)(19,320)

197,453

2,402,398

Foreign currency exchange loss, net

387

4,713

Income tax payable

81

988

Loss on sales or disposal of property,

508,569

Accrued expenses

15,043

183,024

plant and equipment, net(1,095)(13,326)

10,449127,130

Other current liabilities

13,830168,276

Other, net(1,258)(15,304)

4,448

54,116291,158

3,542,503

8,829

107,423

348,128

4,235,648

Income before income taxes and items listed below 13,849

168,5022,350,535

(41)

(499)

193,149

2,350,036

Inventories

41,799Deferred tax assets
Other current assets

Investments and advances:
29,193355,186

Investments in and advances toTotal current liabilities
Long-term debt

113,000

1,374,863

Income taxes:

Accrued indemnities from retirement benefit plan

39,019474,738

Current

1,050

12,775

Deferred

3,636

44,239￥ 9,163＄ 111,488

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

207,572

2,525,512

236,765

2,880,698

Buildings and structures

119,688

1,456,234

Machinery and equipment

373,094

4,539,406

Shareholders' equity:

1,161

14,134

Common stock:493,943

6,009,774

Other liabilities
Total liabilities

1,389

16,893

1,042

12,682445,608

5,421,679

Property, plants and equipment:(405,196) (4,929,997)

Net assets:

Per share:

Yen

U.S. dollars

Net income￥26.80＄0.33

Cash dividends

16.00

0.19

341,935

341,935

Weighted average number of common shares
outstanding (thousands)
45,591

554,707

Capital surplus

108,230

1,316,832

Retained earnings

130,830

1,591,796(345)(4,199)10,286125,144294,592

3,584,280

Issued - 342,186 thousand shares

88,747

1,079,777

38,864472,856

Construction in progress

10,549128,353

138,160

1,680,986

Evaluation and conversion difference:

10,096

122,832

Unrealized gain on other securities

7,051

85,795

Total net assets￥740,199 ＄9,005,959

Net income

Shareholder
Toyota Motor Corporation

No. of shares
77,235

Japan Trustee Services Bank, Ltd.

19,685The Master Trust Bank of Japan, Ltd.

18,892Denso Corporation

18,371

Nippon Life Insurance Company

12,361

National Mutual Insurance Federation ofAgricultural Cooperatives

8,807

Toyota Industries Corporation

7,813

Resona Bank, Ltd.

6,749

The Sumitomo Trust and Banking Co., Ltd.

6,729

Sumitomo Mitsui Banking Corporation

6,366

As of April 1, 2012, The Sumitomo Trust and Banking Co., Ltd., merged with The Chou Mitsui Trustand Banking Company, Limited, and Chuo Mitsui Asset Trust and Banking Company, Limited, to form
Sumitomo Mitsui Trust Bank, Limited.

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

Authorized - 1,200,000 thousand sharesLand

09 Annual Report 2012

52,535

11,396

193,190

Conversion rate: ￥82.19 per U.S. dollar

6,524,385

58,988

187,518

Total assets

536,239

Construction

1,235,348

15,412Other assets

Gross profit
Selling, general and administrative expenses＄7,163,572

Subsidiaries and affiliates

101,533

Deferred tax assets

Cost of sales

2012

Shareholder Information
as of March 2012

￥588,774

Operating income

Other

Accumulated depreciation2012

Net sales

Thousands of
U.S. dollars

1,491,518

Subsidiaries and affiliates

Lease assets

Millions of yen

122,588927,669

subsidiaries and affiliates

Thousands of
U.S. dollars

Trade76,245Investments in securities

Millions of yen

Notes and accounts payable:

Trade

Total current assets

LIABILITIES AND NET ASSETS
Current liabilities:

Notes and accounts receivable:

Allowance for doubtful accounts

Stock Information

Nonconsolidated Statement of Income

Less: Treasury shares

Total liabilities and net assets￥740,199 ＄9,005,959

Self-owned shares
251(0.1%)
Individuals
24,986(7.3%)
Foreign companies
61,766(18.0%)
Japanese companies
127,288(37.2%)

Financial organizations
117,223(34.3%)

Securities companies
10,669
(3.1%)

Annual Report 2012 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: 1,052 billion yen
Nonconsolidated: 588 billion yen
Consolidated: 39,834 (not including 4,677 part-time employees)
Nonconsolidated: 10,385 (not including 1,982 part-time employees)

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

Motohiko Yokoyama
Shoji Ikawa
Takaaki Suzuki
Seiho Kawakami
Hitoshi Shimatani
Masakazu Isaka
Tetsuji Okuda
Shiro Nakano
Atsushi Kume
Noriya Murase
Takeshi Uchiyamada

Corporate auditors
Corporate Auditor
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

Motoyasu Nakamura
Yusuke Horiuchi
Azuma Arai
Hiroyuki Miyazaki
Hiroyuki Kaijima
Tomokazu Takahashi
Masaki Kamikawa
Shinji Uetake
Yoshio Tsuji
Keiji Araki
Yutaka Mori
Hidekazu Omura
Katsumi Yamamoto
Kazunori Shimada
Toshiyuki Atsumi
Kazuhisa Makino
Yoshikazu Konishi
Hiroshi Ii
Nobutaka Takeoka
Masayuki Watanabe
Hirohito Kimura
Akifumi Tanaka
Toshifumi Sakai
Kunihiko Yokota
Takao Okayasu

Printed in Japan

Annual Report2012
For the year ended March 31, 2012