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: 1,067 billion yen
Nonconsolidated: 622 billion yen
Consolidated: 41,714 (not including 4,971 part-time employees)
Nonconsolidated: 10,651 (not including 2,290 part-time employees)

Members of the Board and Directors
Directors
ChairmanVice Chairman
President
Executive Vice President
Executive Vice President
Executive Vice President
Senior Executive Director
Senior Executive Director
Executive Director
Executive Director
Executive Director

Atsushi Niimi
Shoji Ikawa
Tetsuo Agata
Takaaki Suzuki
Seiho Kawakami
Masakazu Isaka
Noriya Murase
Tetsuji Okuda
Shiro Nakano
Atsushi Kume
Hiroyuki Miyazaki

Member of the Audit & Supervisory Board
Masatake Enomoto
Hiroshi Fujii
Koichi Fukaya
Masaaki Kobayashi
Koei Saga

Officers
Executive Managing Officer
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 Kaijima
Masaki Kamikawa
Shinji Uetake
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
Toru Miyashita
Hiroshi Fukae
Haruhiko Segawa
Kenneth Hopkins

Printed in Japan

Annual Report2013
For the fiscal year ended March 31, 2013

Consolidated Financial Highlights

Message from the Top Management

Comparison of Five Fiscal Years

We would like to begin by extending our sincere appreciation to our shareholders for their support and understanding.
In the fiscal year ended March 31, 2013, the global economy continued to recover at a modest pace. The European economy remainedsluggish because of the debt crisis while the U.S. economy recovered with the improvement in employment. In China, the economy continued to gradually recover despite potential risks. Economies of emerging countries, chiefly in Asia, continued to post relatively strong growthin the fiscal year’s second half. In Japan, the economy was supported by demand associated with the Great East Japan Earthquake recovery
activities and by higher automobile sales fueled by the subsidy for sales of environment-friendly automobiles. Japan’s economic recovery ingeneral gained momentum in the fiscal year’s second half as the yen’s decline from its extremely high level improved the environment forexports.
In this operating environment, the JTEKT Group is promoting “Establishment of a strong foundation that is not vulnerable to changes”—
underpinned by safety, quality, timely product deliveries, and CSR. In addition, we took actions setting the stage for taking on challenges toachieve more growth including strengthening operations in emerging countries. We are also making our products even more attractive tocustomers and upgrading our capabilities involving monozukuri (Creative design, manufacturing through craftsmanship & Shop-floor
management) skills and creating proposals for our customers. During the past fiscal year, we made up-front investments and took otheractions to accomplish these goals.
We strived to reinforce production facilities to meet growing demand for our products in emerging markets. Furthermore, to supply
products that reflect the requirements of specific regions, we established a technical center in Brazil, the first of its kind in Latin America.
In October 2012, we completed construction of the Iga Test Course. This facility allows us to perform evaluations of steering systems, drive
trains and bearing units using automobiles under actual driving conditions. With this facility we will create even better proposals and morecompetitive products.
Regarding monozukuri improvement, we first perfect our core technologies internally and develop innovative manufacturing methods
and tools, then, we build global standardized production lines which can securely produce high quality products and we export thesefacilities to our overseas factories. In the Machine Tool business, we began to use standardized and common parts for the units of all typesof grinders, machining centers and cutting machines, and we are implementing a program to shorten delivery times to one-third of current
times by arranging production lines in a fishbone-shaped layout.
Looking at consolidated performance for the fiscal year, net sales increased by 14,855 million yen, or 1.4%, to 1,067,526 million yen. This
growth was attributable mainly to demand created by the Great East Japan Earthquake recovery projects and higher sales of automobiles inJapan because of the eco-car subsidy. Regarding profitability, operating income decreased by 6,499 million yen, or 18.2%, to 29,158 million
yen because of lower selling prices. Ordinary income fell by 4,409 million yen, or 11.4%, to 34,240 million yen. Net income increased by 559
million yen, or 4.2%, to 13,862 million yen. Regarding current dividends, a dividend of 9 yen per share was declared. The annual dividend pershare was 16 yen (interim dividend was 7 yen per share).
Although the global economy is expected to continue to recover in most regions, the outlook is still uncertain.
Taking this economic situation as an opportunity, we reinforced our management structure in order to capitalize on these opportunities.
The JTEKT Group will work even harder on activities to establish a strong foundation that is not vulnerable to changes and centered on safety,
quality, timely product deliveries and CSR. Seeking the highest possible quality in everything we do is another objective. We are determined
to make the JTEKT brand synonymous with reliability and confidence for our customers worldwide.
JTEKT and some of its subsidiaries have been under investigation since July 2011 with regard to bearing transactions that may haveviolated the Antimonopoly Act of Japan and the fair competition laws of other countries. Investigations are being performed by the Japan
Fair Trade Commission and by EU, United States and other authorities. In March 2013, the Japan Fair Trade Commission announced cease anddesist orders and surcharge payment orders related to this investigation. JTEKT was exempted from these orders because the company’s
application for the leniency program in June 2011 was approved by the commission. However, the commission found that violations hadtaken place at JTEKT.
We have a strong commitment to eliminating all behavior that
may be inconsistent with the Antimonopoly Act of Japan. Furthermore, we will establish a stronger framework for ensuring that all
employees of the JTEKT Group have a thorough understanding
and awareness of compliance. We want to earn greater publictrust for the entire JTEKT Group.
In closing, we ask our shareholders for their support as we
continue to move forward with the actions needed to achieve ourgoals.
ChairmanJune 2013

Atsushi Niimi

Vice Chairman

Shoji Ikawa

President

Net income (loss) per share

Consolidated net sales(billions of yen)

(yen)

1,200
1,000

1,052

1,017

1,067

40

Message from the Top Management
Consolidated Financial Highlights
・Overview by Business Segment
・Overview by Geographic Area
Topics01 Annual Report 2013

Financial 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

-40
200

FY2013-37.22-60

0(FY ending) FY2009 FY2010

FY2011FY2012FY2013(billions of yen)

(yen)

50

1,200

FY2010FY2011

1,063.74

39

40-60.45-80(FY ending) FY2009

Net assets per share

Consolidated operating income

1,000

35
29

30

951.66924.27931.09948.400(FY ending) FY2009 FY2010

FY2011FY2012

800
600

22
20

400
10

200

0
0
(FY ending) FY2009 FY2010

FY2011FY2012FY2013

FY2013

Cash dividends per share

Consolidated net income (loss)(billions of yen)

(yen)

25

30
20

20

13

13

20
17

16

16

16

FY2011FY2012FY2013

15
11
10
-11

-20

07
08
08
09
10
10

FY2012

-20

400

-10

01
02
03
04
05-06

40.55

0

0

Contents

38.91

20

600

10

Tetsuo Agata

59.39

60

955
769

800

80

-30
(FY ending) FY2009

5-19
FY2010FY2011FY2012FY20130(FY ending) FY2009 FY2010

Annual Report 2013 02

Consolidated Financial Highlights

Message from the Top Management

Comparison of Five Fiscal Years

We would like to begin by extending our sincere appreciation to our shareholders for their support and understanding.
In the fiscal year ended March 31, 2013, the global economy continued to recover at a modest pace. The European economy remainedsluggish because of the debt crisis while the U.S. economy recovered with the improvement in employment. In China, the economy continued to gradually recover despite potential risks. Economies of emerging countries, chiefly in Asia, continued to post relatively strong growthin the fiscal year’s second half. In Japan, the economy was supported by demand associated with the Great East Japan Earthquake recovery
activities and by higher automobile sales fueled by the subsidy for sales of environment-friendly automobiles. Japan’s economic recovery ingeneral gained momentum in the fiscal year’s second half as the yen’s decline from its extremely high level improved the environment forexports.
In this operating environment, the JTEKT Group is promoting “Establishment of a strong foundation that is not vulnerable to changes”—
underpinned by safety, quality, timely product deliveries, and CSR. In addition, we took actions setting the stage for taking on challenges toachieve more growth including strengthening operations in emerging countries. We are also making our products even more attractive tocustomers and upgrading our capabilities involving monozukuri (Creative design, manufacturing through craftsmanship & Shop-floor
management) skills and creating proposals for our customers. During the past fiscal year, we made up-front investments and took otheractions to accomplish these goals.
We strived to reinforce production facilities to meet growing demand for our products in emerging markets. Furthermore, to supply
products that reflect the requirements of specific regions, we established a technical center in Brazil, the first of its kind in Latin America.
In October 2012, we completed construction of the Iga Test Course. This facility allows us to perform evaluations of steering systems, drive
trains and bearing units using automobiles under actual driving conditions. With this facility we will create even better proposals and morecompetitive products.
Regarding monozukuri improvement, we first perfect our core technologies internally and develop innovative manufacturing methods
and tools, then, we build global standardized production lines which can securely produce high quality products and we export thesefacilities to our overseas factories. In the Machine Tool business, we began to use standardized and common parts for the units of all typesof grinders, machining centers and cutting machines, and we are implementing a program to shorten delivery times to one-third of current
times by arranging production lines in a fishbone-shaped layout.
Looking at consolidated performance for the fiscal year, net sales increased by 14,855 million yen, or 1.4%, to 1,067,526 million yen. This
growth was attributable mainly to demand created by the Great East Japan Earthquake recovery projects and higher sales of automobiles inJapan because of the eco-car subsidy. Regarding profitability, operating income decreased by 6,499 million yen, or 18.2%, to 29,158 million
yen because of lower selling prices. Ordinary income fell by 4,409 million yen, or 11.4%, to 34,240 million yen. Net income increased by 559
million yen, or 4.2%, to 13,862 million yen. Regarding current dividends, a dividend of 9 yen per share was declared. The annual dividend pershare was 16 yen (interim dividend was 7 yen per share).
Although the global economy is expected to continue to recover in most regions, the outlook is still uncertain.
Taking this economic situation as an opportunity, we reinforced our management structure in order to capitalize on these opportunities.
The JTEKT Group will work even harder on activities to establish a strong foundation that is not vulnerable to changes and centered on safety,
quality, timely product deliveries and CSR. Seeking the highest possible quality in everything we do is another objective. We are determined
to make the JTEKT brand synonymous with reliability and confidence for our customers worldwide.
JTEKT and some of its subsidiaries have been under investigation since July 2011 with regard to bearing transactions that may haveviolated the Antimonopoly Act of Japan and the fair competition laws of other countries. Investigations are being performed by the Japan
Fair Trade Commission and by EU, United States and other authorities. In March 2013, the Japan Fair Trade Commission announced cease anddesist orders and surcharge payment orders related to this investigation. JTEKT was exempted from these orders because the company’s
application for the leniency program in June 2011 was approved by the commission. However, the commission found that violations hadtaken place at JTEKT.
We have a strong commitment to eliminating all behavior that
may be inconsistent with the Antimonopoly Act of Japan. Furthermore, we will establish a stronger framework for ensuring that all
employees of the JTEKT Group have a thorough understanding
and awareness of compliance. We want to earn greater publictrust for the entire JTEKT Group.
In closing, we ask our shareholders for their support as we
continue to move forward with the actions needed to achieve ourgoals.
ChairmanJune 2013

Atsushi Niimi

Vice Chairman

Shoji Ikawa

President

Net income (loss) per share

Consolidated net sales(billions of yen)

(yen)

1,200
1,000

1,052

1,017

1,067

40

Message from the Top Management
Consolidated Financial Highlights
・Overview by Business Segment
・Overview by Geographic Area
Topics01 Annual Report 2013

Financial 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

-40
200

FY2013-37.22-60

0(FY ending) FY2009 FY2010

FY2011FY2012FY2013(billions of yen)

(yen)

50

1,200

FY2010FY2011

1,063.74

39

40-60.45-80(FY ending) FY2009

Net assets per share

Consolidated operating income

1,000

35
29

30

951.66924.27931.09948.400(FY ending) FY2009 FY2010

FY2011FY2012

800
600

22
20

400
10

200

0
0
(FY ending) FY2009 FY2010

FY2011FY2012FY2013

FY2013

Cash dividends per share

Consolidated net income (loss)(billions of yen)

(yen)

25

30
20

20

13

13

20
17

16

16

16

FY2011FY2012FY2013

15
11
10
-11

-20

07
08
08
09
10
10

FY2012

-20

400

-10

01
02
03
04
05-06

40.55

0

0

Contents

38.91

20

600

10

Tetsuo Agata

59.39

60

955
769

800

80

-30
(FY ending) FY2009

5-19
FY2010FY2011FY2012FY20130(FY ending) FY2009 FY2010

Annual Report 2013 02

Overview 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
JTEKT & Consolidated subsidiaries: 139

Machine Tools
and Mechatronics Business

Automotive Components
Business (Steering Systems)

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

Steering system products are responsible forvehicle “turning” functions.

145 billion yen

Equity - method companies:
Number of employees:

19
41,714 (4,971)*1

483 billion yen

North America

EuropeMachine Tool
BusinessJapan

Machine tools
and mechatronics Business

13.7

Asia, Oceania, and others*(excluding Japan)%

The CNC combination grinding center (TG4)Asia, Oceania, and others*(excluding Japan)

Electric power steering systems

Automotive Components
Business

1,067 45.3
29.8

(Steering Systems)

Bearing Business

%

Japan

Equity - method companies:
Number of employees:(Driveline Components)

11.2

Consolidated subsidiaries:

5
17,215 (2,870)*1

600

Bearing Business

Number of employees:

Machinery andAutomotive Components

200
539

500

Automotive Components
Business (Driveline Components)

500

522

541

119 billion yen

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

100

200

0
(FY ending)

183

146

145
94

50
0
(FY ending)

FY2009 FY2010 FY2011 FY2012 FY2013

FY2009 FY2010 FY2011 FY2012 FY2013

Asia, Oceania, and others*(excluding Japan)

26
Equity - method companies:
3
Number of employees: 7,150 (747)*1
Consolidated subsidiaries:

Electronically controlled four-wheel drive coupling (ITCC)

182

100

EuropeBearings for use in wind power generation equipment

150

437

400
300

17
2
5,503 (539)*1

Equity - method companies:

700%

Bearings facilitate the motion of rotating parts andreduce frictional resistance in all types ofmachinery and equipment.

North America

JTEKT & Consolidated subsidiaries: 41

Automotive Components
Business

318 billion yen*Includes South America■Sales Trend（billions of yen）%

billion yen

55
9Number of employees: 11,846 (815)*1
Consolidated subsidiaries:

Equity - method companies:

250
200
150

202

200
166

200
150

169
134

143

139
100

178

131
103

100
50

Skeleton model exhibit

03 Annual Report 2013

Hyper-Strong bearing for steelmaking
equipment

Type B Torsen

High Performance machining center

0(FY ending) FY2009 FY2010 FY2011 FY2012 FY2013

50
0(FY ending)

FY2009 FY2010 FY2011 FY2012 FY2013*1: The figure in parentheses is the average number of part-time employee, which is not included in the total.

Annual Report 2013 04

Overview 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
JTEKT & Consolidated subsidiaries: 139

Machine Tools
and Mechatronics Business

Automotive Components
Business (Steering Systems)

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

Steering system products are responsible forvehicle “turning” functions.

145 billion yen

Equity - method companies:
Number of employees:

19
41,714 (4,971)*1

483 billion yen

North America

EuropeMachine Tool
BusinessJapan

Machine tools
and mechatronics Business

13.7

Asia, Oceania, and others*(excluding Japan)%

The CNC combination grinding center (TG4)Asia, Oceania, and others*(excluding Japan)

Electric power steering systems

Automotive Components
Business

1,067 45.3
29.8

(Steering Systems)

Bearing Business

%

Japan

Equity - method companies:
Number of employees:(Driveline Components)

11.2

Consolidated subsidiaries:

5
17,215 (2,870)*1

600

Bearing Business

Number of employees:

Machinery andAutomotive Components

200
539

500

Automotive Components
Business (Driveline Components)

500

522

541

119 billion yen

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

100

200

0
(FY ending)

183

146

145
94

50
0
(FY ending)

FY2009 FY2010 FY2011 FY2012 FY2013

FY2009 FY2010 FY2011 FY2012 FY2013

Asia, Oceania, and others*(excluding Japan)

26
Equity - method companies:
3
Number of employees: 7,150 (747)*1
Consolidated subsidiaries:

Electronically controlled four-wheel drive coupling (ITCC)

182

100

EuropeBearings for use in wind power generation equipment

150

437

400
300

17
2
5,503 (539)*1

Equity - method companies:

700%

Bearings facilitate the motion of rotating parts andreduce frictional resistance in all types ofmachinery and equipment.

North America

JTEKT & Consolidated subsidiaries: 41

Automotive Components
Business

318 billion yen*Includes South America■Sales Trend（billions of yen）%

billion yen

55
9Number of employees: 11,846 (815)*1
Consolidated subsidiaries:

Equity - method companies:

250
200
150

202

200
166

200
150

169
134

143

139
100

178

131
103

100
50

Skeleton model exhibit

03 Annual Report 2013

Hyper-Strong bearing for steelmaking
equipment

Type B Torsen

High Performance machining center

0(FY ending) FY2009 FY2010 FY2011 FY2012 FY2013

50
0(FY ending)

FY2009 FY2010 FY2011 FY2012 FY2013*1: The figure in parentheses is the average number of part-time employee, which is not included in the total.

Annual Report 2013 04

Topics■Automotive Components Business■Brand Message

JTEKT began operating the Iga Test Course in October 2012 for the analysis and evaluation of
automotive steering systems, driveline units and bearings. At this course, we can fully utilize ourexpertise as a supplier of automotive systems to evaluate our products under actual driving conditions. Driving vehicles over surfaces that replicate various roads around the world allows us torelentlessly pursue the design of products with outstanding safety and ease of operation for every
road in the world. The objective is to make our products even more competitive and attractive.
Through this process, we are increasing the reliability of products that are standardized andavailable in a series of different versions.
In order for standardized products to precisely meet market requirements and market characteristics, technical centers have been located in various countries. JSATC (JTEKT Automotiva Brasil
Ltda. Technology Center) has been opened to help meet the rising demand in South America forelectric power steering by taking into account road conditions in this region and customers’
needs. Operating this center will therefore allow us to offer our customers proposals for highly
reliable products while heightening our presence in South America.
As for new product development, we are dedicated to making our products even morecompatible with the needs of society and customers. This is why we are working on
next-generation products with an emphasis on protecting the environment. One goal is making
all our products smaller and lighter, particularly our electric power steering systems. The development of column-type electric power steering (C-EPS), which has a unitized ECU and motor
configuration, reduced size by about 30% and weight by about 35% compared with previous
electric power steering systems.

The Iga Test Course

A JTEKT newspaper advertisement

The opening ceremony for JSATC

In January 2013, JTEKT unified all needle roller bearing products under the KOYO brand byphasing out the brand that came with the 2009 acquisition of the needle roller bearing businessof The Timken Company of the United States.

Certificate of Appreciation from Mitsubishi-Hitachi Metals Machinery
JTEKT received recognition from Mitsubishi-Hitachi Metals Machinery, Inc. as an outstanding
supplier for the ability to supply drive shafts, bearings, oil seals and other products with consistently high quality and on-time product deliveries.

An advertisement about the unification ofneedle roller bearing brands■Machine Tools and Mechatronics Business
Innovations are underway at the Kariya Plant to better enable this facility to create high-quality
products and cut lead times for supplying those products with the goal of strengthening the
profitability of the machine tools business. Mechatronics production processes will be moved
from the Higashi-Kariya Plant to centralize these operations in one location. In addition, the Kariya
Plant will use a fishbone layout in which the final assembly line is linked to many unit-processing
lines. This realignment to increase productivity by the standardization of production processes will
be completed by 2015.
For developing new products, we are building a system that goes beyond individual machines.
We want to offer customers comprehensive proposals covering all manufacturing activities,
including control technologies and process technologies. In the field of cam line and crank line
grinders, we have developed world class technologies for grinding including the TOYOPUC- GC70,
a CNC control unit with world leading numerical processing capability. Another example is theTough Vi, a CBN wheel spindle with a service life three times longer than previous products.
Furthermore, the outstanding performance of the TG 4 grinding center earned this product atechnology prize from The Japan Society for Abrasive Technology.
05 Annual Report 2013

■Awards for High Quality
GM Supplier Quality Excellence Award
In the current fiscal year, General Motors introduced the new GM Supplier Quality Award. Only
companies and business sites with outstanding operations that exceed all 13 strict quality
standards established by General Motors can receive this honor. Three JTEKT Group locations inJapan received this award: the Hanazono Plant, the Kagawa Plant and Daibea.

■Bearings BusinessWe will continue to propose new forms of value for our bearings. To accomplish this, we willrefine our technologies and perform assessments and analysis from the perspective of units basedon a thorough understanding of the environments in which bearings are used. By upgrading
global sales operations, we will precisely meet the requirements of customers worldwide. Supplying these bearings will contribute to making automobiles more fuel efficient and cutting CO2
emissions. Moreover, we will pursue business development to aim for significant advances in thefields of industrial machinery and machine tools.

To achieve JTEKT VISION 2015, the JTEKT Group is making progress in three areas: strengthening
sales capabilities, strengthening the product lineup and innovation in monozukuri .
This message incorporates a declaration to supply products with value for customers. Thisvision clearly defines the company’s strategic direction.
JTEKT started a nationwide newspaper advertising campaign in Japan in January 2013 that wascentered on the brand message “creating the next value.

GM Supplier Award

TDDK Outstanding Supplier Award
Koyo Bearings Deutschland GmbH (KBDE) and Koyo Deutschland GmbH (KD) received
outstanding supplier awards for excellence in quality and timely product deliveries from TD
Deutsche Klimakompressor GmbH (TDDK), a manufacturer of compressors for automotive air
conditioners.

Receiving Mitsubishi-Hitachi Metals Machinery Inc.
Certificate of Appreciation

Drawing of the planned realignment of the Kariya Plant■CSR
Conserving energy and utilizing renewable energy to ensure a stable supply of electricity andreduce environmental burden.
In 2012, JTEKT started using compact cogeneration systems at the Kokubu Plant, which is thecompany’s largest single consumer of electricity. These systems were placed at each production
process. In addition to energy from exhaust heat, the cold energy in cold water is being utilized. As
a result, this plant achieved a substantial improvement in its energy efficiency.
Cogeneration system at Kokubu Plant

The TG 4 grinding center

Annual Report 2013 06

Topics■Automotive Components Business■Brand Message

JTEKT began operating the Iga Test Course in October 2012 for the analysis and evaluation of
automotive steering systems, driveline units and bearings. At this course, we can fully utilize ourexpertise as a supplier of automotive systems to evaluate our products under actual driving conditions. Driving vehicles over surfaces that replicate various roads around the world allows us torelentlessly pursue the design of products with outstanding safety and ease of operation for every
road in the world. The objective is to make our products even more competitive and attractive.
Through this process, we are increasing the reliability of products that are standardized andavailable in a series of different versions.
In order for standardized products to precisely meet market requirements and market characteristics, technical centers have been located in various countries. JSATC (JTEKT Automotiva Brasil
Ltda. Technology Center) has been opened to help meet the rising demand in South America forelectric power steering by taking into account road conditions in this region and customers’
needs. Operating this center will therefore allow us to offer our customers proposals for highly
reliable products while heightening our presence in South America.
As for new product development, we are dedicated to making our products even morecompatible with the needs of society and customers. This is why we are working on
next-generation products with an emphasis on protecting the environment. One goal is making
all our products smaller and lighter, particularly our electric power steering systems. The development of column-type electric power steering (C-EPS), which has a unitized ECU and motor
configuration, reduced size by about 30% and weight by about 35% compared with previous
electric power steering systems.

The Iga Test Course

A JTEKT newspaper advertisement

The opening ceremony for JSATC

In January 2013, JTEKT unified all needle roller bearing products under the KOYO brand byphasing out the brand that came with the 2009 acquisition of the needle roller bearing businessof The Timken Company of the United States.

Certificate of Appreciation from Mitsubishi-Hitachi Metals Machinery
JTEKT received recognition from Mitsubishi-Hitachi Metals Machinery, Inc. as an outstanding
supplier for the ability to supply drive shafts, bearings, oil seals and other products with consistently high quality and on-time product deliveries.

An advertisement about the unification ofneedle roller bearing brands■Machine Tools and Mechatronics Business
Innovations are underway at the Kariya Plant to better enable this facility to create high-quality
products and cut lead times for supplying those products with the goal of strengthening the
profitability of the machine tools business. Mechatronics production processes will be moved
from the Higashi-Kariya Plant to centralize these operations in one location. In addition, the Kariya
Plant will use a fishbone layout in which the final assembly line is linked to many unit-processing
lines. This realignment to increase productivity by the standardization of production processes will
be completed by 2015.
For developing new products, we are building a system that goes beyond individual machines.
We want to offer customers comprehensive proposals covering all manufacturing activities,
including control technologies and process technologies. In the field of cam line and crank line
grinders, we have developed world class technologies for grinding including the TOYOPUC- GC70,
a CNC control unit with world leading numerical processing capability. Another example is theTough Vi, a CBN wheel spindle with a service life three times longer than previous products.
Furthermore, the outstanding performance of the TG 4 grinding center earned this product atechnology prize from The Japan Society for Abrasive Technology.
05 Annual Report 2013

■Awards for High Quality
GM Supplier Quality Excellence Award
In the current fiscal year, General Motors introduced the new GM Supplier Quality Award. Only
companies and business sites with outstanding operations that exceed all 13 strict quality
standards established by General Motors can receive this honor. Three JTEKT Group locations inJapan received this award: the Hanazono Plant, the Kagawa Plant and Daibea.

■Bearings BusinessWe will continue to propose new forms of value for our bearings. To accomplish this, we willrefine our technologies and perform assessments and analysis from the perspective of units basedon a thorough understanding of the environments in which bearings are used. By upgrading
global sales operations, we will precisely meet the requirements of customers worldwide. Supplying these bearings will contribute to making automobiles more fuel efficient and cutting CO2
emissions. Moreover, we will pursue business development to aim for significant advances in thefields of industrial machinery and machine tools.

To achieve JTEKT VISION 2015, the JTEKT Group is making progress in three areas: strengthening
sales capabilities, strengthening the product lineup and innovation in monozukuri .
This message incorporates a declaration to supply products with value for customers. Thisvision clearly defines the company’s strategic direction.
JTEKT started a nationwide newspaper advertising campaign in Japan in January 2013 that wascentered on the brand message “creating the next value.

GM Supplier Award

TDDK Outstanding Supplier Award
Koyo Bearings Deutschland GmbH (KBDE) and Koyo Deutschland GmbH (KD) received
outstanding supplier awards for excellence in quality and timely product deliveries from TD
Deutsche Klimakompressor GmbH (TDDK), a manufacturer of compressors for automotive air
conditioners.

Receiving Mitsubishi-Hitachi Metals Machinery Inc.
Certificate of Appreciation

Drawing of the planned realignment of the Kariya Plant■CSR
Conserving energy and utilizing renewable energy to ensure a stable supply of electricity andreduce environmental burden.
In 2012, JTEKT started using compact cogeneration systems at the Kokubu Plant, which is thecompany’s largest single consumer of electricity. These systems were placed at each production
process. In addition to energy from exhaust heat, the cold energy in cold water is being utilized. As
a result, this plant achieved a substantial improvement in its energy efficiency.
Cogeneration system at Kokubu Plant

The TG 4 grinding center

Annual Report 2013 06

Financial data
Consolidated Statement of Cash Flows

Consolidated Statement of Income
and Retained Earnings

Consolidated Balance Sheet
March 31, 2013

for the year ended March 31, 2013

for the year ended March 31, 2013ASSETS

Millions of yen

Thousands of
U.S. dollars

2013

2013

Current assets:￥

Cash

53,390＄ 567,680

Time dsposits

2,714

28,854

Short-term investments

40,534

430,979

209,784

2,230,561

Notes and accounts receivable:
Trade
Unconsolidated subsidiaries and affiliates

13,700145,666

Other

19,276

204,951

242,760

2,581,178

Allowance for doubtful accounts(842)(8,955)

241,918

2,572,223

Inventories

163,955

1,743,278

Deferred tax assets

14,853

157,929

Other current assets
Total current assets

21,518228,792

538,882

5,729,735

Investments and advances:
Investments in securities

56,309598,709

Investments in and advances to unconsolidated
subsidiaries and affiliates

15,516

164,974

71,825

763,683

Property, plant and equipment:
Buildings and structures

238,940

2,540,564

Machinery and equipment

748,331

7,956,740

Lease assets
Accumulated depreciation

3,108

33,047990,379

10,530,351(724,448)(7,702,800)

265,9312,827,551

Land

58,349620,404

Construction in progress

61,164650,331385,444

4,098,286

Deferred tax assets

14,112150,061

Other assets

16,670177,251

Total assets￥1,026,933 ＄10,919,016

LIABILITIES AND NET ASSETS

Millions of yen

Thousands of
U.S. dollars

2013

2013

Current liabilities:
Short-term loans￥ 85,562 ＄ 909,750
Current portion of long-term debt
41,749443,903
Notes and accounts payable:
Trade189,0812,010,427
Unconsolidated subsidiaries and affiliates
14,465
153,807
Construction
26,085277,353
Other
13,700145,672
243,331

Income tax payable
Accrued expenses
Other current liabilities
Total current liabilities
Long-term debt
Accrued indemnities from retirement benefit plan
Accrued severance indemnities for members of
the board of directors and corporate auditors
Deferred tax liabilities
Other liabilities
Total liabilities

2,587,259

4,473

47,56140,440429,980

18,897200,924

434,452

4,619,377

137,847

1,465,685

59,469632,309

Net sales

Thousands of
U.S. dollars

2013

2013

￥ 1,067,527 ＄ 11,350,632

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

Millions of yen

140,453

1,493,382

Depreciation and amortization

111,295

1,183,354

Equity in earnings of unconsolidated subsidiaries

29,158310,028(7,730)(8,460)(89,956)(400)(4,251)(12,807)(136,167)

1,512

16,07849,934

530,930(610)(6,488)1

10(93,565)(994,836)

1,713

18,211(5,796)(61,623)(327)(3,478)(2,440)(25,948)

15,615

Notes and accounts payable

Foreign currency exchange gain, net

5,203

55,327

Bonuses to directors and corporate auditors(1,330)(14,144)

2,293

24,378(6,691)(71,138)(1,910)(20,309)27,248289,719

Payment of income taxes
Other, net
Net cash provided by

Equity in earnings of unconsolidated

Income before income taxes

operating activities
Cash flows from investing activities:
Increase in time deposits
Decrease in marketable securities

16,522

1,481

15,744

Income taxes:

7,887

83,860Current

11,071

117,714642,690

6,833,497

Deferred

474

5,041

consolidated subsidiaries

1,840

19,564

Increase in loans receivable

Net income

13,863

147,400

Other, net

Purchases of property, plant and equipment

Minority interests in net income ofProceeds from sales of property,
plant and equipment
Increase in investments in securities

Consolidated retained earnings:(101,024) (1,074,152)

Net cash used by investing activities

Balance at beginning of the year

200,8022,135,059

Cash dividends(5,471)(58,171)￥ 209,194 ＄ 2,224,288

Cash flows from financing activities:
Decrease in short-term loans(5,986)(63,651)

Increase in long-term debt

7,569

80,482

Cash dividends(6,690)(71,133)(730)(7,761)

Net cash used by financing activities(5,837)(62,063)

Exchange difference of cash and cash equivalents

4,192

44,572Other, net
Per share:
Net income
Cash dividends
outstanding (thousands)(24,378)
17,239(30,347)

Balance at end of the year

(2,293)
1,622

1,469

Loss on sales or disposal of property,

470,376(727)(2,854)yen

U.S. dollars￥ 40.55＄ 0.43

16.00

0.17

Weighted average number of common shares

Conversion rate: ￥94.05 per U.S. dollar

and affiliates

44,239Notes and accounts receivable

1,554

Net assets:
Shareholders' equity:
Common stock:
Authorized - 1,200,000 thousand shares
Issued - 342,186 thousand shares
45,591
484,757
Capital surplus
108,238
1,150,851
Retained earnings
209,1942,224,288
Less: Treasury shares(385)(4,097)
Evaluation and conversion difference:
Unrealized gain on other securities
16,650177,038
Translation adjustments on foreign currency
financial statements(15,604)(165,913)
Minority interests in consolidated subsidiaries
20,559218,595
Total net assets
384,243
4,085,519
Total liabilities and net assets￥1,026,933 ＄10,919,016￥ 27,248 ＄ 289,719

Income before income taxes

Interest expense

and items listed below

2013

9,857,250

Interest and dividend income

Other, net

2013

Cash flows from operating activities:

Inventories

subsidiaries and affiliates

Thousands of
U.S. dollars

927,074

Other income (expenses):plant and equipment, net

Millions of yen

341,894

341,894(52,735)(560,713)

Cash and cash equivalents at beginning of the year 146,625

1,559,015

Net decrease in cash and cash equivalents
Cash and cash equivalents at end of the year

￥ 93,890 ＄ 998,302

As of March 31, 2013, JTEKT had 138 consolidated subsidiaries and 19 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., TLD.
KOYO SALES CO., LTD.
DAIBEA CO., LTD.
UTSUNOMIYA KIKI CO., LTD.
HOUKO CO., LTD.
TOYODA VAN MOPPES LTD.

07 Annual Report 2013

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

FUJI KIKO CO., LTD.
MITSUI SEIKI KOGYO CO., LTD.

Annual Report 2013 08

Financial data
Consolidated Statement of Cash Flows

Consolidated Statement of Income
and Retained Earnings

Consolidated Balance Sheet
March 31, 2013

for the year ended March 31, 2013

for the year ended March 31, 2013ASSETS

Millions of yen

Thousands of
U.S. dollars

2013

2013

Current assets:￥

Cash

53,390＄ 567,680

Time dsposits

2,714

28,854

Short-term investments

40,534

430,979

209,784

2,230,561

Notes and accounts receivable:
Trade
Unconsolidated subsidiaries and affiliates

13,700145,666

Other

19,276

204,951

242,760

2,581,178

Allowance for doubtful accounts(842)(8,955)

241,918

2,572,223

Inventories

163,955

1,743,278

Deferred tax assets

14,853

157,929

Other current assets
Total current assets

21,518228,792

538,882

5,729,735

Investments and advances:
Investments in securities

56,309598,709

Investments in and advances to unconsolidated
subsidiaries and affiliates

15,516

164,974

71,825

763,683

Property, plant and equipment:
Buildings and structures

238,940

2,540,564

Machinery and equipment

748,331

7,956,740

Lease assets
Accumulated depreciation

3,108

33,047990,379

10,530,351(724,448)(7,702,800)

265,9312,827,551

Land

58,349620,404

Construction in progress

61,164650,331385,444

4,098,286

Deferred tax assets

14,112150,061

Other assets

16,670177,251

Total assets￥1,026,933 ＄10,919,016

LIABILITIES AND NET ASSETS

Millions of yen

Thousands of
U.S. dollars

2013

2013

Current liabilities:
Short-term loans￥ 85,562 ＄ 909,750
Current portion of long-term debt
41,749443,903
Notes and accounts payable:
Trade189,0812,010,427
Unconsolidated subsidiaries and affiliates
14,465
153,807
Construction
26,085277,353
Other
13,700145,672
243,331

Income tax payable
Accrued expenses
Other current liabilities
Total current liabilities
Long-term debt
Accrued indemnities from retirement benefit plan
Accrued severance indemnities for members of
the board of directors and corporate auditors
Deferred tax liabilities
Other liabilities
Total liabilities

2,587,259

4,473

47,56140,440429,980

18,897200,924

434,452

4,619,377

137,847

1,465,685

59,469632,309

Net sales

Thousands of
U.S. dollars

2013

2013

￥ 1,067,527 ＄ 11,350,632

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

Millions of yen

140,453

1,493,382

Depreciation and amortization

111,295

1,183,354

Equity in earnings of unconsolidated subsidiaries

29,158310,028(7,730)(8,460)(89,956)(400)(4,251)(12,807)(136,167)

1,512

16,07849,934

530,930(610)(6,488)1

10(93,565)(994,836)

1,713

18,211(5,796)(61,623)(327)(3,478)(2,440)(25,948)

15,615

Notes and accounts payable

Foreign currency exchange gain, net

5,203

55,327

Bonuses to directors and corporate auditors(1,330)(14,144)

2,293

24,378(6,691)(71,138)(1,910)(20,309)27,248289,719

Payment of income taxes
Other, net
Net cash provided by

Equity in earnings of unconsolidated

Income before income taxes

operating activities
Cash flows from investing activities:
Increase in time deposits
Decrease in marketable securities

16,522

1,481

15,744

Income taxes:

7,887

83,860Current

11,071

117,714642,690

6,833,497

Deferred

474

5,041

consolidated subsidiaries

1,840

19,564

Increase in loans receivable

Net income

13,863

147,400

Other, net

Purchases of property, plant and equipment

Minority interests in net income ofProceeds from sales of property,
plant and equipment
Increase in investments in securities

Consolidated retained earnings:(101,024) (1,074,152)

Net cash used by investing activities

Balance at beginning of the year

200,8022,135,059

Cash dividends(5,471)(58,171)￥ 209,194 ＄ 2,224,288

Cash flows from financing activities:
Decrease in short-term loans(5,986)(63,651)

Increase in long-term debt

7,569

80,482

Cash dividends(6,690)(71,133)(730)(7,761)

Net cash used by financing activities(5,837)(62,063)

Exchange difference of cash and cash equivalents

4,192

44,572Other, net
Per share:
Net income
Cash dividends
outstanding (thousands)(24,378)
17,239(30,347)

Balance at end of the year

(2,293)
1,622

1,469

Loss on sales or disposal of property,

470,376(727)(2,854)yen

U.S. dollars￥ 40.55＄ 0.43

16.00

0.17

Weighted average number of common shares

Conversion rate: ￥94.05 per U.S. dollar

and affiliates

44,239Notes and accounts receivable

1,554

Net assets:
Shareholders' equity:
Common stock:
Authorized - 1,200,000 thousand shares
Issued - 342,186 thousand shares
45,591
484,757
Capital surplus
108,238
1,150,851
Retained earnings
209,1942,224,288
Less: Treasury shares(385)(4,097)
Evaluation and conversion difference:
Unrealized gain on other securities
16,650177,038
Translation adjustments on foreign currency
financial statements(15,604)(165,913)
Minority interests in consolidated subsidiaries
20,559218,595
Total net assets
384,243
4,085,519
Total liabilities and net assets￥1,026,933 ＄10,919,016￥ 27,248 ＄ 289,719

Income before income taxes

Interest expense

and items listed below

2013

9,857,250

Interest and dividend income

Other, net

2013

Cash flows from operating activities:

Inventories

subsidiaries and affiliates

Thousands of
U.S. dollars

927,074

Other income (expenses):plant and equipment, net

Millions of yen

341,894

341,894(52,735)(560,713)

Cash and cash equivalents at beginning of the year 146,625

1,559,015

Net decrease in cash and cash equivalents
Cash and cash equivalents at end of the year

￥ 93,890 ＄ 998,302

As of March 31, 2013, JTEKT had 138 consolidated subsidiaries and 19 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., TLD.
KOYO SALES CO., LTD.
DAIBEA CO., LTD.
UTSUNOMIYA KIKI CO., LTD.
HOUKO CO., LTD.
TOYODA VAN MOPPES LTD.

07 Annual Report 2013

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

FUJI KIKO CO., LTD.
MITSUI SEIKI KOGYO CO., LTD.

Annual Report 2013 08

Financial data
Nonconsolidated Balance Sheet

Nonconsolidated Statement of Income
for the year ended March 31, 2013

March 31, 2013ASSETS

Millions of yen

Thousands of
U.S. dollars

2013

2013

Current assets:
Cash
Short-term investments

LIABILITIES AND NET ASSETS

Millions of yen

Thousands of
U.S. dollars

2013

2013

Current liabilities:￥

5,596 ＄

59,50440,500430,622

Notes and accounts receivable:

Short-term loans
Current portion of long-term debt

Millions of yen

2013

Net sales￥ 32,750 ＄ 348,219
33,000350,877

Notes and accounts payable:

Thousands of
U.S. dollars

2013＄ 6,614,533

565,817

6,016,128

56,280598,405(share quantities in units of 1,000)

49,012

521,124

7,268

77,281

1. Number of authorized shares: 1,200,000
Number of issued shares:
342,186
2. Number of shareholders:
21,5503. Major (top 10) shareholders

Cost of sales
Gross profit
Selling, general and administrative expenses

Trade110,878

1,178,925

Operating income

Subsidiaries and affiliates

50,484

536,784

Other income (expenses):

Construction

21,885

232,701

Interest and dividend income

11,355

120,739

Other

3,597

38,241

Interest expense(1,494)(15,882)

186,844

1,986,651

Foreign currency exchange gain, net

3,755

39,929(753)(8,010)(6,294)(66,932)

6,569
13,83774,483791,954

Subsidiaries and affiliates

100,296

1,066,406

Other

10,757

114,377

185,536

1,972,737

(46)

(492)

185,490

1,972,245

Inventories

42,286449,614

Income tax payable

532

5,660

Deferred tax assets

10,196

108,412

Accrued expenses

15,929169,366

Other current assets

5,349

56,868Other current liabilities

15,911

169,173

289,417

3,077,265

284,966

3,029,946

Long-term debt

95,0001,010,101

Current

1,550

Accrued indemnities from retirement benefit plan

38,018404,228

Deferred

1,195

Other liabilities

2,210

23,499￥ 11,092＄ 117,935

420,194

4,467,774

Total current assets

Total current liabilities

Other, net
Income before income taxes

Investments in securities
Investments in and advances to39,939424,655

subsidiaries and affiliates

230,498

2,450,804

270,437

2,875,459

Buildings and structures

124,700

1,325,888

Net assets:

Net income

Machinery and equipment

382,399

4,065,912

Shareholders' equity:

Cash dividends

1,081

11,500Common stock:508,180

5,403,300

Total liabilities

Property, plant and equipment:

Lease assets
Accumulated depreciation

Per share:

Denso Corporation

18,371

Japan Trustee Services Bank, Ltd.

15,052

69,844

Nippon Life Insurance Company

12,361

147,125

Toyota Industries Corporation

7,813

Sumitomo Mitsui Trust Bank, Ltd.

7,635

16,481

Resona Bank, Ltd.

6,749

12,709Sumitomo Mitsui Banking Corporation

6,366

Toyota Tsusho Corporation

5,969(413,081) (4,392,138)

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

outstanding (thousands)
45,591

484,757
1,150,775

95,099

1,011,162

Capital surplus

Land

39,983425,122

Retained earnings

136,451

1,450,830

Construction in progress

17,290183,840

Less: Treasury shares(347)(3,692)

152,372

1,620,124

Evaluation and conversion difference:

6,242

66,371

Unrealized gain on other securities

7,414

78,828Other assets
Total assets￥ 725,882 ＄ 7,718,047

Total net assets
Total liabilities and net assets

yen

U.S. dollars￥ 32.44＄ 0.34

16.00

0.17

Weighted average number of common shares

108,230

Deferred tax assets

Net income

15,763

167,603

305,688

3,250,273

341,933

No. of shares
77,23520,063

Income taxes:
Investments and advances:

Shareholder
Toyota Motor Corporation
The Master Trust Bank of Japan, Ltd.

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

Shareholder Information
as of March 2013

￥ 622,097

Trade

Allowance for doubtful accounts

Stock Information

341,933

4. Breakdown of shareholders (100% = total issued shares)
Self-owned shares
254(0.1%)
Individuals
30,012(8.7%)
Foreign companies
75,842(22.2%)
Japanese companies
124,411(36.4%)

Financial organizations
104,110(30.4%)
Securities companies
7,555(2.2%)￥ 725,882 ＄ 7,718,047

Conversion rate: ￥94.05 per U.S. dollar

09 Annual Report 2013

Annual Report 2013 10

Financial data
Nonconsolidated Balance Sheet

Nonconsolidated Statement of Income
for the year ended March 31, 2013

March 31, 2013ASSETS

Millions of yen

Thousands of
U.S. dollars

2013

2013

Current assets:
Cash
Short-term investments

LIABILITIES AND NET ASSETS

Millions of yen

Thousands of
U.S. dollars

2013

2013

Current liabilities:￥

5,596 ＄

59,50440,500430,622

Notes and accounts receivable:

Short-term loans
Current portion of long-term debt

Millions of yen

2013

Net sales￥ 32,750 ＄ 348,219
33,000350,877

Notes and accounts payable:

Thousands of
U.S. dollars

2013＄ 6,614,533

565,817

6,016,128

56,280598,405(share quantities in units of 1,000)

49,012

521,124

7,268

77,281

1. Number of authorized shares: 1,200,000
Number of issued shares:
342,186
2. Number of shareholders:
21,5503. Major (top 10) shareholders

Cost of sales
Gross profit
Selling, general and administrative expenses

Trade110,878

1,178,925

Operating income

Subsidiaries and affiliates

50,484

536,784

Other income (expenses):

Construction

21,885

232,701

Interest and dividend income

11,355

120,739

Other

3,597

38,241

Interest expense(1,494)(15,882)

186,844

1,986,651

Foreign currency exchange gain, net

3,755

39,929(753)(8,010)(6,294)(66,932)

6,569
13,83774,483791,954

Subsidiaries and affiliates

100,296

1,066,406

Other

10,757

114,377

185,536

1,972,737

(46)

(492)

185,490

1,972,245

Inventories

42,286449,614

Income tax payable

532

5,660

Deferred tax assets

10,196

108,412

Accrued expenses

15,929169,366

Other current assets

5,349

56,868Other current liabilities

15,911

169,173

289,417

3,077,265

284,966

3,029,946

Long-term debt

95,0001,010,101

Current

1,550

Accrued indemnities from retirement benefit plan

38,018404,228

Deferred

1,195

Other liabilities

2,210

23,499￥ 11,092＄ 117,935

420,194

4,467,774

Total current assets

Total current liabilities

Other, net
Income before income taxes

Investments in securities
Investments in and advances to39,939424,655

subsidiaries and affiliates

230,498

2,450,804

270,437

2,875,459

Buildings and structures

124,700

1,325,888

Net assets:

Net income

Machinery and equipment

382,399

4,065,912

Shareholders' equity:

Cash dividends

1,081

11,500Common stock:508,180

5,403,300

Total liabilities

Property, plant and equipment:

Lease assets
Accumulated depreciation

Per share:

Denso Corporation

18,371

Japan Trustee Services Bank, Ltd.

15,052

69,844

Nippon Life Insurance Company

12,361

147,125

Toyota Industries Corporation

7,813

Sumitomo Mitsui Trust Bank, Ltd.

7,635

16,481

Resona Bank, Ltd.

6,749

12,709Sumitomo Mitsui Banking Corporation

6,366

Toyota Tsusho Corporation

5,969(413,081) (4,392,138)

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

outstanding (thousands)
45,591

484,757
1,150,775

95,099

1,011,162

Capital surplus

Land

39,983425,122

Retained earnings

136,451

1,450,830

Construction in progress

17,290183,840

Less: Treasury shares(347)(3,692)

152,372

1,620,124

Evaluation and conversion difference:

6,242

66,371

Unrealized gain on other securities

7,414

78,828Other assets
Total assets￥ 725,882 ＄ 7,718,047

Total net assets
Total liabilities and net assets

yen

U.S. dollars￥ 32.44＄ 0.34

16.00

0.17

Weighted average number of common shares

108,230

Deferred tax assets

Net income

15,763

167,603

305,688

3,250,273

341,933

No. of shares
77,23520,063

Income taxes:
Investments and advances:

Shareholder
Toyota Motor Corporation
The Master Trust Bank of Japan, Ltd.

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

Shareholder Information
as of March 2013

￥ 622,097

Trade

Allowance for doubtful accounts

Stock Information

341,933

4. Breakdown of shareholders (100% = total issued shares)
Self-owned shares
254(0.1%)
Individuals
30,012(8.7%)
Foreign companies
75,842(22.2%)
Japanese companies
124,411(36.4%)

Financial organizations
104,110(30.4%)
Securities companies
7,555(2.2%)￥ 725,882 ＄ 7,718,047

Conversion rate: ￥94.05 per U.S. dollar

09 Annual Report 2013

Annual Report 2013 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: 1,067 billion yen
Nonconsolidated: 622 billion yen
Consolidated: 41,714 (not including 4,971 part-time employees)
Nonconsolidated: 10,651 (not including 2,290 part-time employees)

Members of the Board and Directors
Directors
ChairmanVice Chairman
President
Executive Vice President
Executive Vice President
Executive Vice President
Senior Executive Director
Senior Executive Director
Executive Director
Executive Director
Executive Director

Atsushi Niimi
Shoji Ikawa
Tetsuo Agata
Takaaki Suzuki
Seiho Kawakami
Masakazu Isaka
Noriya Murase
Tetsuji Okuda
Shiro Nakano
Atsushi Kume
Hiroyuki Miyazaki

Member of the Audit & Supervisory Board
Masatake Enomoto
Hiroshi Fujii
Koichi Fukaya
Masaaki Kobayashi
Koei Saga

Officers
Executive Managing Officer
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 Kaijima
Masaki Kamikawa
Shinji Uetake
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
Toru Miyashita
Hiroshi Fukae
Haruhiko Segawa
Kenneth Hopkins

Printed in Japan

Annual Report2013
For the fiscal year ended March 31, 2013