Consolidated Financial Highlights

Transcription

1 Annual Report 8 For the year ended March 31, 8

2 Message from the Chairman and the President Consolidated Financial Highlights Annual Report 8 It is our pleasure to report to you on JTEKT's business performance for the fiscal year ended March 31, 8. Although Japan's economy performed strongly overall during this period thanks to growth in such areas as exports and private-sector capital expenditures, uncertainty over the economy's direction grew during the period's last half as a result of surges in raw material costs, financial market confusion caused by the subprime mortgage problem, dramatic shifts in exchange rates, and other factors. Regarding economies around the world, while Asian economies led by China maintained a high growth rate, the economies of America and other regions showed signs of receding. With such circumstances as a backdrop, the JTEKT Group endeavored during this period to strengthen its technology development capability, improve quality, and raise the efficiency of its manufacturing and sales structures. As a result of these and other efforts, consolidated sales of 1,157,595 million yen were achieved, an increase of 13,97 million yen, or 1.9 percent, over the previous term. Concerning profit, despite such negative factors as rising raw material prices and increased depreciation expense caused by corporate tax law revisions, consolidated operating income of 77,651 million yen was achieved, an increase of 13, million yen, or.1 percent, over the previous term. Consolidated net income was 43,446 million yen, a decline of 1,454 million yen, or 3. percent, from the previous term. An end-of-term dividend of 13 yen per share was issued, bringing the total dividend for the year to 4 yen per share (the interim dividend was 11 yen per share), an increase of 5 yen per share from the previous term. The JTEKT Group will strive to further strengthen its quality control structure, develop and provide new products that foresee market needs, and solidify its base of profitability through cost reduction activities in order to meet the expectations of customers and others. We hope for the continued support and understanding of our shareholders. August 8 Consolidated sales Consolidated operating income Consolidated net income (unit: billions of yen) (unit: billions of yen) (unit: billions of yen) , 1, , 1,5 1, /6 3/7 3/8 3/6 3/7 3/8 3/6 3/7 3/8 Net income per share Net assets per share Cash dividends per share (unit: yen) (unit: yen) (unit: yen) , 1, , , Chairman Takaya Yamada President Motohiko Yokoyama Contents 8 6 Message from the Chairman and the President Consolidated Financial Highlights New Products Information Global Topics Consolidated Statement of Income and Retained Earnings Consolidated Statement of Cash Flows Nonconsolidated Balance Sheet Nonconsolidated Statement of Income /6 3/7 3/8 3/6 3/7 3/8 3/6 3/7 3/8 4 Global Network / Domestic Network 5 Company Profile 14 Consolidated Balance Sheet 7 1

3 New Products Information Annual Report 8 Development of rack-cross type electric power steering - World's first application of electric power steering on full-sized SUV - A rack-cross type electric power steering (RC-EPS) system developed by JTEKT has been adopted by General Motors for use on two full-sized SUVs. Full-sized SUVs and pickup trucks conventionally have used hydraulic power steering systems, but the RC-EPS developed by JTEKT this time boasts world-class output for an EPS system, enabling it to become the world's first EPS system to be installed on a full-sized SUV or pickup truck. Conventionally it has not been possible to use EPS, which provides steering force by means of an electric motor, on full-sized vehicles with weight over three tons because of insufficient output. In response to this situation, JTEKT strove to increase the output of its entire lineup of EPS systems and succeeded in developing not only the RC-EPS system above but also such other systems as a rack-coaxial type EPS system for application on the Lexus LS. JTEKT will continue efforts to increase the output of EPS to enable its application on a greater range of vehicles in order to further contribute to environmental protection. Development of lightweight hub unit for compact vehicles - 3% reduction in weight while maintaining rigidity and strength - JTEKT has developed a lightweight hub unit for compact vehicles that maintains the rigidity and strength of conventional hub units while having 3 percent less weight. Automakers, desiring both to reduce the weight below the springs in order to improve vehicle maneuvering and fuel efficiency and to expand the design freedom of axle periphery parts, have sought hub units with greater compactness. However, in recent years significant advances in vehicle behavior control have been made and various system control devices added to the vehicle, which has increased the weight placed on suspension parts. Accordingly, it has been essential while reducing size and weight to maintain hub unit rigidity and strength. To develop this new compact, lightweight hub unit, JTEKT utilized a design method it created based on its wealth of technology and knowhow related to testing and analysis. Development of low-torque thrust needle roller bearing - Automotive transmission bearing with 5% less rotational torque - JTEKT has developed a thrust needle bearing for automotive transmissions that improves automobile fuel efficiency by having roughly 5 percent less torque than the conventional product. Approximately to 15 bearings are used in each automobile, and automakers, facing increased pressure from fuel efficiency regulations aimed at reducing CO emissions, are seeking bearings of all types with less torque, smaller size, and lighter weight. In view of this situation, JTEKT has pursued the development of low-torque thrust needle bearings, some of which are used in each automatic transmission on average, in order to improve driveline efficiency. In the developed product, by changing the retainer's cross-sectional configuration, JTEKT achieved a roughly 5 percent reduction in rotational torque while maintaining life, high-speed operation, and wear characteristics equivalent to those of the conventional product. Rack output N (calculated with stroke ratio of 5mm/rev) 13,5 13, 1,5 1, 11,5 Conventional EPS range Developed product Expansion of EPS application to conventional hydraulic range Hydraulic range Further increased output 11,,,5 3, 3,5 4, 4,5 Overall vehicle weight (kg) Development of FV Series vertical machining centers - Aiming for major sales increase in th anniversary of entering the machining center field - JTEKT, based on a decision to become a major participant in the field of vertical machining centers, has developed four "FV Series" generalpurpose vertical machining centers. JTEKT has expanded its machine tool business over the years mainly through efforts to create a full lineup of horizontal machining centers, resulting in its being a top player in this field, offering a total of 3 such machines. Now, JTEKT has determined to utilize the technology it achieved enabling high productivity and high reliability in horizontal machining centers to create a full lineup of vertical machining centers and to expand its presence in this important market. Original "Eco-bag" distributed to all employees - Some 14, bags distributed to promote environmental protection - JTEKT distributed an original "Eco-bag" for use in everyday shopping to each of its approximately 14, regular, temporary, and part-time employees as a part of the company's environmental protection activities. It is reported that shoppers in Japan use and discard some 3 billion plastic bags each year. JTEKT's aim in distributing these Eco-bags is both to contribute to environmental protection by reducing plastic bag consumption and also to convey President M. Yokoyama's personal request that each employee "keep environmental protection in mind in all home and community activities in order to promote the abundance of society." In this way and others, JTEKT together with all its employees is endeavoring to be an environmentally friendly "monozukuri" manufacturer. Global Topics JABR manufactures two-millionth steering gear in Brazil - Aiming to contribute further to the South American market - JTEKT Automotiva Brasil Ltda. (JABR), JTEKT's subsidiary in Brazil manufacturing steering gears for minvans, pickup trucks and a wide variety of passenger cars, manufactured its two-millionth steering gear around the end of 7, eight years after starting operations in JTEKT (Thailand) Co., Ltd. formed by merger of three subsidiaries - Strengthening operations in the ASEAN region - At the end of 7, JTEKT's three subsidiaries in Thailand merged to form JTEKT (Thailand) Co., Ltd. (JTC), which serves as the regional headquarters company for the ASEAN region. JTEKT had already established regional headquarters companies in Europe, North America and China, making JTC the fourth such company. As such, JTC will strive to contribute to JTEKT's global management of operations. 3 4

4 Global Network / Domestic Network Annual Report 8 Global Network Europe Regional headquarters R&D centers Steering plants Bearing plants Driveline component plants Sales bases / service centers 3 5 North America Regional headquarters 1 R&D centers Steering plants 4 Bearing plants 1 Driveline component plants 8 Total Sales bases / service centers 4 Total 13 1 Sales for the region /4 Koyo Seiko /5 JTEKT 3/6 (unit: billions of yen) /7 3/8 Asia/Oceania, etc. (excluding Japan) Regional headquarters R&D centers Steering plants Bearing plants 1 Driveline component plants 8 Sales for the region (unit: billions of yen) 1 87 Sales for the region /4 3/5 3/6 Koyo Seiko 81 JTEKT 7 (unit: billions of yen) 154 3/7 17 3/8 JTEKT AUTOMOTIVE DIJON SAINT-ETIENNE S.A.S. JTEKT TORSEN EUROPE S.A. Machine tool plants Sales bases / service centers Total 35 3/4 3/5 3/6 3/7 Koyo Seiko JTEKT 3/8 JTEKT AUTOMOTIVE SOUTH CAROLINA, INC. JTEKT AUTOMOTIVE TENNESSEE- VONORE CO. KOYO BEARINGS (EUROPE) LTD. TOYODA MITSUI EUROPE GMBH JTEKT (THAILAND) CO., LTD. JTEKT AUTOMOTIVE (THAILAND) CO., LTD. DALIAN KOYO WAZHOU AUTOMOBILE BEARING CO., LTD. TOYODA KOKI DO BRASIL INDUSTRIA E COMERCIO DE MAQUINAS, LTDA. KOYO CORPORATION OF U.S.A. [MANUFACTURING DIV.] Domestic Network Osaka head office No.5-8, Minamisemba 3-chome, Chuo-ku, Osaka, Tel Nagoya head office No.7-1, Meieki 4-chome, Nakamura-ku, Nagoya, Aichi Pref., , Japan Tel Research & development centers No.333, Toichi-cho, Kashihara, Nara Pref., No.4-1, Kokubu Higanjo-cho, Kashiwara, Osaka, No.1, Asahi-machi 1-chome, Kariya, Aichi Pref., Technical centers Chubu Technical Center No.1, Kotobuki-cho 1-chome, Toyota, Aichi Pref., Toubu Technical Center No.18-, Shiroyama 1-chome, Midori-ku, Yokohama, Kanagawa Pref., 6-6 Sales & Marketing Headquarters No.5-8, Minamisemba 3-chome, Chuo-ku, Osaka, Steering System Operations Headquarters No.333, Toichi-cho, Kashihara, Nara Pref., No.1-, Miyama, Shinpukuji-cho, Okazaki, Aichi Pref., Bearing & Driveline Business Operations Headquarters No.4-1, Kokubu Higanjo-cho, Kashiwara, Osaka, No.5-3, Tado-cho 1-Chome, Takahama, Aichi Pref., Machine Tool & Mechatronics Headquarters No.1, Asahimachi 1-Chome, Kariya, Aichi Pref., Plants Kokubu Plant Kariya Plant Tokushima Plant Okazaki Plant Tokyo Plant Kagawa Plant Nara Plant Higashikariya Plant Toyohashi Plant Tadomisaki Plant Hanazono Plant Kameyama Plant Branch offices, business offices Tokyo Branch Office Higashinihon Branch Office Kitakanto Branch Office Hamamatsu Branch Office Toyota Branch Office I Toyota Branch Office II Nagoya Branch Office Kansai Branch Office Nishinihon Branch Office Utsunomiya Business Office Mito Business Office Chiba Business Office Hokuriku Sales Office Kobe Business Office Okayama Business Office Kyushu Business Office Fukuoka Sales Office Distribution centers Kansai Distribution Center Kawai Distribution Center Chubu Distribution Center Kanto Distribution Center Major related companies KOYO MACHINE INDUSTRIES CO., LTD. TOYOOKI KOGYO CO., LTD. KOYO SEALING TECHNO CO., LTD. CNK CO., LTD. KOYO THERMO SYSTEMS CO., LTD. KOYO ELECTRONICS INDUSTRIES CO., LTD. KOYO SALES, LTD. DAIBEA CO., LTD. UTSUNOMIYA KIKI CO., LTD. HOUKO CO., LTD. TOYODA VAN MOPPES LTD. 5 6

5 Financial data Consolidated Balance Sheet Annual Report 8 March 31, 8 ASSETS Current assets: Cash Time deposits Short-term investments Notes and accounts receivable: Trade Unconsolidated subsidiaries and affiliates Other Allowance for doubtful accounts Inventories Deferred tax assets Other current assets Total current assets Investments and advances: Investments in securities Investments in and advances to unconsolidated subsidiaries and affiliates Property, plant and equipment: Buildings and structures Machinery and equipment Accumulated depreciation Land Construction in progress Deferred tax assets Other assets Total assets 8 8 6, ,38 36,788 1,65 18,479 67,919 (1,36) 66,883 13,43 18,53 7,55 57, 46,1,345 68,485 3,6 718,5 91,615 (648,185) 73,43 55,957 6,17 355,514,896, ,8 As of March 31, 8, JTEKT had 93 consolidated subsidiaries and 11 affiliates accounted for by the equity method. The main ones of each type are shown below. (Consolidated subsidiaries) KOYO MACHINE INDUSTRIES CO., LTD. TOYOOKI KOGYO CO., LTD. KOYO SEALING TECHNO CO., LTD. CNK CO., LTD. KOYO THERMO SYSTEMS CO., LTD. KOYO ELECTRONICS INDUSTRIES CO., LTD. KOYO SALES, LTD. DAIBEA CO., LTD. UTSUNOMIYA KIKI CO., LTD. HOUKO CO., LTD. TOYODA VAN MOPPES LTD. JTEKT (THAILAND) CO., LTD. JTEKT AUTOMOTIVE TENNESSEE- MORRISTOWN, INC. JTEKT AUTOMOTIVE TENNESSEE- VONORE CO. JTEKT AUTOMOTIVE LYON S.A.S. JTEKT AUTOMOTIVE DIJON SAINT-ETIENNE S.A.S. JTEKT AUTOMOTIVE VIRGINIA, INC. JTEKT AUTOMOTIVE (THAILAND) CO., LTD. KOYO CORPORATION OF U.S.A. KOYO BEARINGS (EUROPE) LTD. KOYO ROMANIA S.A. TOYODA MACHINERY USA CORP. 64,44 9,935 9,976,363,391 16,74 184,443,674,8 (,344),663,764 1,31,76 18,184 7,415 5,6,478 46,5 3,7 683,547,3,45 7,166,43 9,198,675 (6,469,558),79, ,511 6,766 3,548,394 8,534 6,757 9,79,7 (Affiliates accounted for by the equity method) FUJIKIKO CO., LTD. MITSUI SEIKI KOGYO CO., LTD. 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 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 Net assets: Shareholders' equity: Common stock: Authorized - 1,, thousand shares Issued - 31,37 thousand shares Capital surplus Retained earnings Less: Treasury shares Evaluation and conversion difference: Unrealized gain on other securities Translation adjustments on foreign currency financial statements Minority interests in consolidated subsidiaries Total net assets Total liabilities and net assets Conversion rate:.19 per U.S. dollar ,98 34,34 199,9 15, 18,55 17,855 5,69 13,376 38,39 18,187 4,916 98, 64,775,75 4, ,7 36,855 99,53 17,333 (355) 15,58 6,365 17, ,98 974,8 559, ,69 1,988, , , ,11,51, ,55 383,19 181,54 4,1,364 9, ,518 7,45 43,487 7,1 5,6, , ,146,169,7 (3,545) 154,79 63, ,55 3,93,59 9,79,7 7 8

6 Financial data Consolidated Statement of Income and Retained Earnings Consolidated Statement of Cash Flows Annual Report 8 For the year ended March 31, 8 For the year ended March 31, 8 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Other income (expenses): Interest and dividend income Interest expense Foreign currency exchange loss, net Loss on sales or disposal of property, plant and equipment, net Equity in loss of unconsolidated subsidiaries and affiliates Income before income taxes and items listed below Income taxes: Current Deferred Minority interests in net income of consolidated subsidiaries Net income Consolidated retained earnings: Balance at beginning of the year Net decrease due to the change in scope of consolidation Cash dividends Balance at end of the year 8 8 1,157, ,639 7,956 13,35 77,651,68 (4,547) (3,) (1,877) (453) (3,165) (,64) 67,7,66 (1,866),785 43, ,4 (1,193) (6,74) 17,333 11,553,995 9,478,38,75,613 1,3, ,3 6,34 (45,385) (3,37) (18,73) (4,53) (31,59) (6,35) 668,997 6,189 (18,69) 7, ,641 1,814,588 (11,95) (67,117),169,7 Cash flows from operating activities: Income before income taxes Depreciation and amortization Equity in loss of unconsolidated subsidiaries and affiliates Notes and accounts receivable Inventories Notes and accounts payable Bonuses to directors and corporate auditors Payment of income taxes Net cash provided by operating activities Cash flows from investing activities: Decrease in time deposits Increase in marketable securities Purchases of property, plant and equipment Proceeds from sales of property, plant and equipment Increase in investments in securities Increase in loans receivable Net cash used in investing activities Cash flows from financing activities: Increase in short-term loans Increase in long-term debt Cash dividends Net cash used in financing activities ,7 51,9 453 (5,39) (5,14) (1,781) (646) (5,56) 4, 84,763 6 (13) (6,37) 1,67 (,844) (84) (869) (63,4) (1,894) 7,178 (7,34) (4) (13,64) 668,997 59,934 4,53 (53,795) (5,51) (17,7) (6,45) (5,8),74 846, 66 (13) (6,551) 16,67 (8,388) (8,7) (8,676) (631,16) (18,69) 71,646 (73,99) (44) (13,389) Per share: Net income Cash dividends Weighted average number of common shares outstanding (thousands) Yen ,37 U.S. dollars ,37 Exchange difference of cash and cash equivalents Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Net increase due to the change in scope of consolidation Cash and cash equivalents at end of the year 1,17 9,69 7,146 1,788 83,563 11,698 96,113 7,9 17, ,44 9

7 Financial data Nonconsolidated Balance Sheet Annual Report 8 March 31, 8 ASSETS Current assets: Cash Short-term investments Notes and accounts receivable: Trade Subsidiaries and affiliates Other Allowance for doubtful accounts Inventories Deferred tax assets Other current assets Total current assets Investments and advances: Investments in securities Investments in and advances to subsidiaries and affiliates Property, plant and equipment: Buildings and structures Machinery and equipment Accumulated depreciation Land Construction in progress Deferred tax assets Other assets Total assets 8 8 4,39 1, 9, ,99 11,45 15,75 (5) 15,653 45,839,49,745 3,36 8,5 167, , ,59 387,34 5,93 (377,37) 1,986 38,997 9,99 171,91 8,173 15,49 69,867 43,5 9,6 91,954 1,116, ,35,15,955 (519),15, ,516 4,76 7,1,994,666 84,684 1,668,577 1,953,61 1,18,45 3,864,994 4,993,446 (3,765,9) 1,7,54 389,3 99,5 1,715,861 81,575 15,3 6,895,566 LIABILITIES AND NET ASSETS Current liabilities: Short-term loans Current portion of long-term debt Notes and accounts payable: Trade Subsidiaries and affiliates Construction Other 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 Total liabilities Net assets: Shareholders' equity: Common stock: Authorized - 1,, thousand shares Issued - 31,37 thousand shares Capital surplus Retained earnings Less: Treasury shares Evaluation and conversion difference: Unrealized gain on other securities Total net assets Total liabilities and net assets 8 8 8,75 16,71 8,694 47,57 17,9 6,97 179,455 6,7 16,57 14,191 61,817 85, 45,863 1,1 393,881 36,855 99, ,6 (37) 14,7 96,986 69,867 86,955 16,5 1,84, ,814 17,599 6,855 1,791,14 67,67 165, ,6,613, 848, ,761 11,987 3,931, , ,75 1,459,87 (3,63) 146,741,964,8 6,895,566 Conversion rate:.19 per U.S. dollar 11 1

8 Financial data Nonconsolidated Statement of Income Company Profile Annual Report 8 For the year ended March 31, 8 Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Other income (expenses): Interest and dividend income Interest expense Foreign currency exchange loss, net Loss on sales or disposal of property, plant and equipment, net Income before income taxes Income taxes: Current Deferred Net income Per share: Net income Cash dividends Weighted average number of common shares outstanding (thousands) , ,519 86,657 53,533 33,14 6,738 (1,61) (,655) (1,16) (,988) (1,38) 31,74 11, (1,71),454 Yen ,37 6,818,6 5,953,8 864,96 534,316 33,6 67,47 (1,581) (6,497) (1,133) (9,88) (13,79) 316,818 9,791 (17,87) 4,114 U.S. dollars ,37 Profile Company name Head office locations Main business Capital Sales Number of employees Nagoya head office No.7-1, Meieki 4-chome, Nakamura-ku, Nagoya, Aichi Pref.,, Japan Osaka head office No.5-8, Minamisemba 3-chome, Chuo-ku, Osaka, 54-85, Japan Manufacture and sale of steering systems, bearings, driveline components, machine tools, etc. 36 billion yen Consolidated: 1,157 billion yen Nonconsolidated: 683 billion yen Consolidated: 3,54 Nonconsolidated:,3 Members of the Board and Officers Directors Chairman Vice Chairman President Executive Vice President Executive Director Executive Director Executive Director Director Takaya Yamada Kohshi Yoshida Motohiko Yokoyama Toshikatsu Taniguchi Taisuke Senoo Masakazu Nagai Nobuyoshi Hisada Tetsuo Inui Takaaki Suzuki Kazuro Kajiwara Hiroshi Itoh Takao Yoneda Hitoshi Shimatani Takeshi Uchiyamada Corporate auditors Managing officers Executive Executive Executive Takuo Sugiyama Kazuo Takeda Kiyohiko Yamazaki Koichi Fukaya Kyoji Sasazu Toshihiko Daido Jiro Nakano Masakazu Isaka Kenji Sasaki Hideo Kuwabara Masaji Yamamoto Toshio Hirokawa Hiroshi Fujii Hiroyuki Kaijima Ryuichi Kakui Yoshio Sakai Tomizou Nakaya Masayuki Kitamura Hisashi Matsumoto Hisami Takagi Kiyohiro Iritani Noriya Murase Motoyasu Nakamura Naoyasu Sugimoto Shirou Nakano Yusuke Horiuchi Azuma Arai Tomokazu Takahashi Shareholder Information as of March 8 (share quantities in units of 1,) 1. Number of authorized shares: 1,, Number of issued shares: 31,37. Number of shareholders: 1,19 3. Major (top ) shareholders Shareholder Toyota Motor Corporation The Master Trust Bank of Japan, Ltd. Denso Corporation Japan Trustee Services Bank, Ltd. Nippon Life Insurance Company Toyota Industries Corporation Resona Bank, Ltd. The Sumitomo Trust and Banking Co., Ltd. Sumitomo Mitsui Banking Corporation Toyota Tsusho Corporation No. of shares 7,435,859 17,611 16,98 1,361 7,493 6,749 6,79 6,366 5, Breakdown of shareholders (% = total issued shares) Self-owned shares 3 (.1%) Individuals 3,671 (7.4%) Foreign companies 53,75 (16.7%) Japanese companies 119,643 (37.%) Financial organizations 116,947 (36.4%) Securities companies 7,15 (.%) 13 14

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