Business Report for Fiscal Year 2011
(From April 1, 2010 to March 31, 2011)

Turn the delight into reality

To Our Shareholders

Tokai Rika is grateful to its shareholders fortheir continued support.
We would additionally like to express our
sincere condolences to those affected by thestarted operation of a new plant in India, prepared to establish a
new company in Indonesia, and constructed a new plant in Brazil.
Furthermore, we demonstrated our uncompromising commitment toquality through a Group-wide effort to prevent serious productdefects.
Regarding financial results for the year under review, net sales
decreased 3,392 million yen from the previous year to 327,622
million yen. Ordinary income decreased 314 million yen to 20,058

million yen. Net income decreased 7,369 million yen to 5,234
million yen owing to the posting of provision for product warrants as
an extraordinary loss.
The Company paid out an interim dividend of 16 yen per share in
November 2010. The year-end dividend was 14 yen per share, 2
yen lower than the forecast. As a result, total dividends for the year
under review, including the interim dividend, amounted to 30 yen
per share.

Great East Japan Earthquake and deeply hopefor swift recovery of the impacted regions.
In this business report, we present theCompany’s business results for fiscal year 2011
(from April 1, 2010 to March 31, 2011) andKiyoshi Kinoshita

Yuzo Ushiyama

Chairman of the Board

President

report on the challenges and opportunities
ahead.

Review of Operations
In the fiscal year under review, the global economy was on amoderate recovery track thanks to expanding domestic demand
and rising exports from major economies together with the impact
of governments’ economic stimulus measures. However, the global
economy entered a downward trend owing to the completion of
economic stimulus measures, deteriorating labor markets, a credit
crunch since the middle of the fiscal year, the sharp increase in oil
prices toward fiscal year-end reflecting political instability in the
Middle East and North Africa, and the aftermath of the Great East
Japan Earthquake.
In the automotive industry, sales volumes increased from theprevious year in the U.S. and Russia whose economies are on arecovery track and in China, India and Brazil whose economies are
growing strongly. Big increases in sales volumes in China meantthat country retained its position as the world’s largest automobile
market for the second consecutive year. On the other hand, sales
volumes decreased slightly in Europe where economic recovery is
1faltering and in Japan where the government’s measure to promote
automobile sales ended and because of the earthquake.
Worldwide sales slightly exceeded the previous year’s level assluggish sales in advanced countries were offset by strong sales inemerging economies.
Prompted by rapid changes in the operating environment andchallenging conditions, such as the shift of growth markets fromadvanced countries to emerging economies and accelerated
localization owing to the strong yen, Tokai Rika Group implemented
a series of structural reforms, including consolidation of the
Nishibiwajima Plant into the Head Plant, restructuring of North
American operations, reshaping of the mirror business, andreallocation of resources from indirect operations. We also
reinforced development of products attuned to superior
environmental performance and the needs of compact cars.
Moreover, to reinforce manufacturing and to strengthen the supply
system in emerging economies, we expanded factories in China,

Challenges and Opportunities
In view of the expansion of the market for environmentally friendly
cars and compact cars and the shift of the center of gravity of the
global automotive market toward the emerging economies, as wellas the uncertainty of automobile sales in the aftermath of theearthquake in Japan, the Group expects fierce competition tocontinue. To overcome this adverse situation and achieve further
growth, the Group is addressing four key themes: quality, newproduct development, prevailing in Asia, and lean operation. For
quality, we are strengthening initiatives to prevent major trouble andare eliminating the quality risk at upstream organizations. With
regard to new product development, we are refining our coretechnologies to accelerate responses to diversifying needs andcommercialization. To prevail in Asia, we are striving to capture
vigorous demand in emerging economies centering on Asia. To
realize lean operations, we are continuing initiatives to reduce fixed
costs by thoroughly eliminating waste, unreasonableness, andinconsistency.

We are resolved to make a Group-wide effort to tackle thesechallenges with “speed,” “execution” and “follow-up” as ourwatchwords. Each one of us will face reality, be sensitive to thechange of the times, and take decisive action to achieve goodresults. At the same time, we will strive to enhance corporate value
by fulfilling our social responsibility, including legal compliance andsocial contribution.
Our goal is to become a global corporate group in demand
worldwide that is able to anticipate the future. We will introduce an
executive officer system to strengthen empowerment based on“speed,” “execution” and “follow-up” so as to achieve this goal.
In these endeavors, we request our shareholders to favor us with
their continued support and guidance.
June 2011❚ Maximum Support for People in the Disaster-struck Area
Tokai Rika Group made monetary and in-kind donations of goods and vehicles
amounting to a total of 50 million yen to aid victims and support the recovery ofareas affected by the Great East Japan Earthquake that occurred on March 11.
To deliver goods to people in the disaster-struck area as soon as possible, wesent support teams consisting of employees of Tokai Rika and affiliated companies to the affected area.

Team of Tokai Group employees delivering goods tothe disaster-struck area2Consolidated Financial Highlights

Net Sales

Business Performance by Geographic Region

Ordinary Income and
Net Income(100 million yen)

Ordinary Income
Net Income(100 million yen)

4,500

4,400

344

350

4,051
3,374 3,310

300
3,276

3,000

265

250

212

200

203

179

150
1,500

126

2007

2008

2009

2010

2011

0

52

Net Income per Share

200

2008

2009

2010

2011

Return on Equity (ROE)

(yen)

250

10 10
2007

Asia

20

Net sales increased 9,761 million yen (19.3%)
year on year to 60,214 million yen. Operating
income increased 2,263 million yen (31.5%)
to 9,452 million yen thanks to higher sales
and the impact of rationalization.

197.4515

150

Net sales increased 286 million yen (0.5%)
year on year to 57,793 million yen. Operating
income increased 316 million yen (21.1%) to
1,812 million yen thanks to higher sales andthe impact of rationalization.

139.54100
50Europe and elsewhere
5

11.77
0

2007

2008

2009

2010

2011

0

• Asia• Europe and Others

4.1%

16.4%

• North America

15.8%• Japan

2007

2008

2009

• Japan• North America• Asia• Europe and Others

3,000

750

750

200

2,000

500

500

150

1,000

2010

2011

Net sales decreased 903 million yen (5.6%)
year on year to 15,197 million yen. Operating
income decreased 634 million yen (67.8%)
to 301 million yen owing to lower sales.

250

250

50

0

2009

2010

2011

0

0

0

2009

2010

2011

2009

2010

2009

2011

2010

2011

*Net sales include intersegment sales.

Operating Income by Geographic Region (100 million yen)
• North America
30

100

50

15

75

0

0

50

△50

△15

25

△30

2009

2010

2011

• Europe and Others• Asia

100

△100

3

63.7%

Net Sales by Geographic Region (100 million yen)

• Japan10
57.95

Composition of Net Sales by Geographic Region

100

(%)

236.26

Net sales decreased 11,026 million yen(4.5%) year on year to 233,373 million yen.
Operating income decreased 727 million yen(9.3%) to 7,113 million yen owing to lower
sales and the impact of the appreciation of
the yen.

North America

100
50

0

200

Japan

10

5

0

0

2009

2010

2011

2009

2010

2011

2009

2010

2011

4

Tokai Rika’s Product Fields

TopicsConstruction of a New Plant Completed for TRBR,
a Subsidiary in Brazil

Establishment of TRI, the First Tokai Rika
Company in Indonesia

A handover ceremony was held on April 15, 2011, following
the completion of the construction of a new plant for TRBR
INDUSTRIA E COMERCIO LTDA. (TRBR), a subsidiary in Santa
Barbara d’Oeste, São Paulo, Brazil. In preparation for the startof operation in June, facilities and equipment are being
installed at the new plant. We intend to increase production
capacity to meet needs in the automotive sector in Brazil,
which is expanding.

We establish PT. TOKAI RIKA INDONESIA (TRI), the first Tokai
Rika company in Indonesia. Since the establishment of our first
ASEAN subsidiary in Thailand in 1994, we have steadily
expanded our business and TRI will become our fifth subsidiaryin ASEAN. Through TRI, we will vigorously and swiftly meet theneeds of our customers in Indonesia, where the car market isexpanding, and aim to lay a firm foundation for the business.

Human Machine Interface Systems, notably switches, to accurately relay human commands, security systems to prevent
unauthorized access to automobiles, and safety systems to protect human lives. In these three domains where people andautomobiles intersect, we deliver comfort, safety and security by fully utilizing the underpinning electronics technologies.

Switch/Interface

Security

Switches/Human Machine Interface Systems

Security Systems

Precise operability accurately conveying thedrivers’ commands, simplicity, and functional
elegance are the hallmarks of our products.

Sophisticated mechanical and electronic antitheft functions ensure both security and ease ofuse.
Electro Shiftmatic

Smart Key Portable Device
and Emergency Key

Consolidation of the Nishibiwajima Plant into the Head Plant

Start of Mass Production by TRMN, a New Company in India
TOKAI RIKA MINDA INDIA Private Limited (TRMN), our secondbase in India established in August 2008, held an opening ceremony on February 6. Following the candle lighting by the main
guest and the unveiling of a monument, a ribbon cutting washeld. As planned, TRMN has started mass production of seatbelts, key sets, and immobilizers, etc., for new vehicles to be
produced in India and deliveries have been proceeding smoothly.

A ceremony was held on October 29, 2010, to mark the final
shipment from the Nishibiwajima Plant, and on that day theplant ended its 62-year history.
The Nishibiwajima Plant started operation in August 1948 at
the site where the Company was founded. The plant served as
an assembly base for switches for many years. In view of thechange in the business environment in line with computerization and with the aim of improving production efficiency andstrengthening competitiveness through integrated production
from parts production through to assembly, production functions have been concentrated at the Head Plant.

The original plant
5

Multi-Function Switch

Push Start Switch

Remote Key and Receiver

SafetyElectronics & Others

Safety Systems

Electronics & Others

Our safety devices include seatbelts to protect drivers and passengers in the event ofcollision, stylish steering wheels optimized forexcellent handling, and mirrors that enable toenhance visibility.

Door Mirror with Side-Turn
Lamp and Foot Illumination

Immobilizer◆ Automotive Electronics
Products◆ Housing Facilities and Equipment

Seatbelt Equipped with
Pre-Tensioner

Real Wood Steering Wheel (*)* The steering wheel business is co-operated with Toyoda Gosei Co., Ltd.

Applying technologies originallyemployed in automotive applications, we offer convenient Power Supply ECU
products meeting today’s We offer products forhousing-security needs.
function control and status detection as well as
La Lock, Hallway Immobilizer Key Systemvarious types of connec◆ Automotive Accessories We are a source of vehicle tors in response to thedecor characterized by continued computerization
design flair. These prod- of controls in automobiles.
ucts allow owners toenhance the appeal of
their vehicles through customization.
6

Consolidated Financial Statements

Non-consolidated Financial Highlights

Consolidated Balance Sheets (Millions of yen)

Ordinary Income and
Net Income

Net Sales
As of March
31, 2011

As of March
31, 2010

ASSETS
Current assets

150,976

151,620

Cash and deposits

27,15623,484

Notes and accounts receivable

41,64359,796

Marketable securities

45,47934,811Inventories

22,46021,640Other

14,235

11,887

Fixed assets

108,727

118,11769,932

74,113

Buildings and structures

26,17327,933

Other

43,75846,179

2,024

2,518

Tangible fixed assets

Intangible fixed assets
Investments and other assets
Total assets

36,771

41,485

259,704

269,737

Consolidated Statements of Income (Millions of yen)

As of March
31, 2011
LIABILITIESCurrent liabilities
Notes and accounts payable
Accrued expenses
Other
Long-term liabilities
Long-term borrowings
Liability for retirement benefits
Other
Total liabilities
Net Assets
Shareholders' equity
Common stock
Capital surplus
Retained earnings
Less: Treasury stock, at cost
Accumulated other comprehensive income
Net unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Stock acquisition rights
Minority interests
Total net assets
Total liabilities and net assets

7

327,622
279,82047,802
28,895
18,9061,582
430
20,05867
12,7197,405
3,303(1,819)
5,922
688
5,234

72,95438,716
10,77523,462
25,625
7,878
16,748998
98,57979,78946,25010,34923,18926,397
8,286
17,094
1,014
106,187

165,778
22,85625,134
124,833(7,045)(9,117)(42)(9,074)662
3,801
161,125
259,704

164,189
22,85625,134
123,234(7,035)(4,908)507(5,415)524
3,744
163,550
269,737

331,014283,60747,406
29,374
18,032
2,847
506
20,372
14
54
20,331
5,605
1,409
13,317713
12,603(100 million yen)

3,500
3,000

3,023

3,226
2,482

30,95632,650Cash flows from investing activities(11,428)(9,213)

Cash flows from financing activities(4,795)5,612

Effect of foreign currency translation
adjustments on cash and cash equivalents(1,598)271

Net increase in cash and cash equivalents

13,13329,320Cash and cash equivalents at beginning of year

54,32925,008Cash and cash equivalents at end of year

67,46254,329

190

150

129

124

117

100

1,500

121

78
42

50

1,000
500

0

0

-50

2007

2008

2009

2010

Cash Dividends

2011-23 -29
2007

2008

2009

2010

2011

Year-end Cash Dividend

Full year
InterimAt the 64th annual general48

meeting of shareholders held on
June 15, 2011, the Company’s

40
34

Cash flows from operating activities

2,363

2,000

50

Year ended
Year ended
March 31, 2011 March 31, 2010

235

200
2,481

2,500

Ordinary Income
Net Income(100 million yen)

250

(yen)

Consolidated Cash Flow Statements (Millions of yen)

Year ended
Year ended
March 31, 2011 March 31, 2010
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary gains
Extraordinary losses
Income before income taxes and minority interests
Income taxes—current
Income taxes—deferred
Income before minority interests
Minority interests in income
Net income

As of March
31, 2010

32

30
23

32

dividend to shareholders on the30

record date of March 31, 2011,24

was approved.

20

16

14
10
0

proposal to pay the year-end

1

Year-end cash
dividend

14 yen per share

2

Effective date (Dateon which payment ofyear-end dividends
starts)June 16, 2011

8

2007

2008

2009

2010

2011

8

Stock Information

Corporate Profile (as of March 31, 2011)(as of March 31, 2011)

Total number of shares
Total number of shares authorized to be issued

200,000,000

Number of shares issued and outstanding

94,234,171

Number of shareholders

Composition of Shareholders by
Shareholder Type

Number of shares

Shareholder

Equity29,367
8,839
5,226
4,161
2,375
2,367
1,238
953

31.16
9.38
5.54
4.41
2.52
2.51
1.31
1.01

933

0.99

792

0.84

Head office:3-260 Toyota, Oguchi-cho, Niwa-gun, Aichi 480-0195,
Japan
Tel: +81-587-95-5211

Corporations in Japan 45.2%
Financial institutions 26.1%
Foreign entities
12.3%
Individuals
11.6%
Treasury stock
4.2%
Securities firms
0.6%

Note: The Company holds 3,917 thousand shares of treasury stock but is excluded from the major shareholders
listed above.

Stock Price and Trading Volume

Stock price (right scale)
Trading volume
(yen)
3,000

(thousands of shares)

2,000
1,000

18,00012,000
6,000

9

5

6

7

Paid-in capital:
22.8 billion yen
Number of employees:
15,110 (consolidated)
6,000 (non-consolidated)(thousands of shares) participation (%)

Toyota Motor Corporation
Denso Corporation
Japan Trustee Services Bank, Ltd. (Trust Account)
The Master Trust Bank of Japan, Ltd. (Trust Account)
The Dai-ichi Life Insurance Company
National Mutual Insurance Federation of Agricultural Cooperatives
Japan Trustee Services Bank, Ltd. (Trust Account 9)
Tokai Rika Employee Stock Ownership Plan
Trust & Custody Services Bank, Ltd. (Securities
Investment Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account 4)

2009
4

Executive Management (as of June 15, 2011)

9,138

Major shareholders (Top 10)

0

Corporate Overview

8

9

10

11

12

2010
1

2

3

4

5

6

7

8

9

10

11

12

2011
1

2

3

Main plants and offices:
Head Plant, Toyota Plant, Otowa Plant, Hagi Plant (These
4 plants are in Aichi prefecture)
Tokyo Office (Yokohama), Osaka Office (Osaka),
Hiroshima Office (Hiroshima prefecture)
Tohoku Technical Center (Yamagata prefecture)
Consolidated subsidiaries:
27 (8 in Japan, 5 in North America, 10 in Asia, 4 inEurope and elsewhere)
Affiliates accounted for by the equity method:
6 (3 in Japan, 1 in North America, 2 in Asia)*Chairman of the Board

Kiyoshi Kinoshita

Managing Director

Tadanao Hamamoto*President

Yuzo Ushiyama

Managing Director

Hitoshi Hirano*Executive Vice President

Shigeru KatoManaging Director

Mikihiro Mori

*Executive Vice President

Kiyoshi Tsunekawa

Managing Director

Kenji Kawaguchi

Senior Managing Director

Makoto Goto

Managing Director

Hiroyuki Nakamura

Senior Managing Director

Hitoshi Iwata

Managing Director

Tadashi Wakiya

Senior Managing Director

Shoji Ishida

Managing Director

Masaharu Tanino

Managing Director

Mineo Hattori

Director

Shinji Shirasaki

Standing Corporate Auditor
Standing Corporate Auditor

Hiroshi Nishio
Yuji Nishimura

Corporate Auditor
Corporate Auditor
Corporate Auditor

Kyoji Sasazu
Mitsuhisa Kato
Masaki Horie

Corporate Officer
Corporate Officer
Corporate Officer
Corporate Officer

Kouji Buma
Yoshihiro Obayashi
Masaki Matsuyama
Koki Sato

Corporate Officer
Corporate Officer
Corporate Officer
Corporate Officer

Mikio Kato
Kazuhiko Noguchi
Masakazu Goto
Yoshihiro Tanaka

Note: Persons marked with an asterisk (*) are representative directors.

Major Overseas Consolidated Subsidiaries and Affiliates
Consolidated Subsidiaries

Affiliates

TRAM, Inc.

U.S.A.

TRP, Inc.

Philippines

TGR Technical Center, LLC

U.S.A.

TRMI, Inc.

U.S.A.

TOKAI RIKA ASIA CO., LTD.

Thailand

Shinchang Electrics Co., Ltd.

South Korea

TAC Manufacturing, Inc.

U.S.A.

TOKAI RIKA (THAILAND) CO., LTD.

ThailandSTF Co., Ltd.

South Korea

TRIN, Inc.

U.S.A.

Thai Seat Belt Co., Ltd.

ThailandMINDARIKA PRIVATE LIMITED

India

TRQSS, Inc.

CanadaTOKAI RIKA MINDA INDIA Private Limited

India

Tianjin Tokairika Automotive Parts Co., Ltd.

China

TRB Limited

U.K.

Wuxi Risho Technology Co., Ltd.

China

TRCZ s.r.o.

Czech

Foshan Tokairika Automotive Parts Co., Ltd. China

Tokai Rika Belgium N.V.

Belgium

Rica Auto Parts Co., Ltd.

TRBR INDUSTRIA E COMERCIO LTDA. Brazil

Taiwan10

Shareholder Information
Business year:
Annual general meeting ofshareholders:Record date for distributionof surplus:
Number of shares constituting
one unit of stock:
Stock code:
Registration of transfer ofshares:Transfer agent:
Agency administration
office:Listing stock exchanges:
Method of public notice:

From April 1 to March 31 of the following year
June
Year-end dividend: March 31
Interim dividend: September 30
100 shares
6995

The Chuo Mitsui Trust and Banking Co., Ltd.
3-33-1 Shiba, Minato-ku, Tokyo
Stock Transfer Agent Department, Nagoya Branch,
The Chuo Mitsui Trust and Banking Co., Ltd.
3-15-33 Sakae, Naka-ku, Nagoya 460-8685, Japan
Tel: 0120-78-2031 (Toll free in Japan)
Tokyo Stock Exchange, Nagoya Stock ExchangeElectronic public notice
If electronic public notice is unavailable, the Company
shall post a public notice in the Nihon Keizai Shimbun.
(Public notices will be posted on the following website)
http://www.tokai-rika.co.jp/

Notice:1. Receipt of uncollected dividends
Please contact the transfer agent indicated above.

2. Address change, purchase and sale of shares constituting less than
one trading unit, and specification of the method of receiving dividends
Please contact the securities firm with which you have your securities account.
If you have a special account, please contact The Chuo Mitsui Trust and Banking
Co., Ltd., which is the agent for managing special accounts.
•Toll-free number: 0120-87-2031 (24 hours, automated voice guidance)•Website: http://www.chuomitsui.co.jp/person/p_06.html

3. Dividend Statement
A dividend statement sent by the Company to shareholders upon payment of dividends also serves as the payment advice pursuant to the Act on Special Measuresconcerning Taxation. It may be used as evidence when filing a final tax return.
Please retain the dividend statement for your final tax return.

Visit Our Website
The Tokai Rika Website provides a range of
information on the Company. Public notices arealso posted on the website. We encourage you
to visit us online.

http://www.tokai-rika.co.jp/