annual report 2015 - jtekt .tetsuo agata seiho kawakami masakazu isaka atsushi kume hiroyuki...
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The Management (as of June 25, 2015)
Company nameHead oce locations
Number of employees
Nagoya head oceNo. 7-1, Meieki 4-chome, Nakamura-ku, Nagoya, Aichi Pref. 450-8515, JapanOsaka head oce No. 5-8, Minamisemba 3-chome, Chuo-ku, Osaka 542-8502, JapanManufacture and sale of steering systems, bearings, driveline components, machine tools, etc.45 billion yenConsolidated: 1,355 billion yen (as of March 31, 2015)Nonconsolidated: 649 billion yen (as of March 31, 2015)Consolidated: 43,912 (not including 5,432 part-time employees) (as of March 31, 2015)Nonconsolidated: 11,227 (not including 2,495 part-time employees) (as of March 31, 2015)
Members of the Audit & Supervisory Board
Chairman President Executive Vice-PresidentExecutive Vice-PresidentSenior Executive DirectorSenior Executive DirectorExecutive DirectorExecutive DirectorDirectorDirector
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Atsushi NiimiTetsuo AgataSeiho KawakamiMasakazu IsakaAtsushi KumeHiroyuki MiyazakiHiroyuki KaijimaShinji UetakeTakao Miyatani *Iwao Okamoto *
Masatake EnomotoHiroshi TakenakaKoichi Fukaya *Masaaki Kobayashi *Koei Saga *
Azuma AraiMasaki Kamikawa Keiji Araki Hidekazu OmuraTomokazu TakahashiKatsumi YamamotoKazunori ShimadaKazuhisa MakinoMakoto SanoYutaka MoriYoshikazu KonishiHiroshi IiNobutaka TakeokaMasayuki Watanabe Hirohito KimuraAkifumi TanakaToshifumi SakaiKunihiko YokotaTakao OkayasuToru Miyashita Hiroshi Fukae Haruhiko SegawaTakao InoueNobuya SuzukiHirofumi Matsuoka Kouichi YamanakaFrancis FortinTakumi MatsumotoKazunori HayashidaTsutomu Kimura
Annual Report 2015 For the scal year ended March 31, 2015
*Outside members of the Audit & Supervisory Board
01 Annual Report 2015
Message from the Top ManagementConsolidated Financial Highlights Overview by Business Segment Overview by Geographic AreaTopics
Financial data Consolidated Balance Sheet Consolidated Statement of Income and Retained Earnings Consolidated Statement of Cash Flows Nonconsolidated Balance Sheet Nonconsolidated Statement of IncomeStock Information
Net income (loss) per share(yen)
Net assets per share(yen)
Cash dividends per share(yen)
(billions of yen)
(billions of yen)
(billions of yen)
First and foremost, we would like to take this opportunity to extend our special thanks to our shareholders for your generous and ongoing support.In FY2014, the world economy as a whole demonstrated steady progress, as slowdown in the growth of emerging countries was balanced by factors
such as ongoing strong recovery in the U.S. and moderate recovery in Europe. Concerning the Japanese economy, demand did not fall as much as feared after last-minute purchases by consumers ahead of the consumption tax increase, and the economic climate was strong as a whole. However, a signicant decrease in demand occurred in the automotive industry, a major market for JTEKT, in the scal year second half.
In these circumstances, the JTEKT Group focused on achieving its Group Vision of Shaping a Better Future through the Spirit of No.1 and Only One, with all companies working as one to pursue activities based on the three key pillars of Building Value, Building Excellent Products, and Building Professionals.
The Steering Division of our Automotive Systems Business, in an eort to achieve the high levels of safety demanded in recent years, completed conformity with the automotive international standard ISO 26262, achieved redundancy in core parts (torque sensor detecting steering wheel operation and motor providing assist torque), and developed and commenced mass-production of a smaller, lighter, quieter column-type electric power steering (C-EPS) system. Also, to respond to requirements for greater fuel eciency in medium- and large-sized vehicles, we increased acceptance of orders for downstream-assist-type electric power steering systems, which oer a comfortable steering experience. Regarding supply capability, in order to respond to strong automotive demand worldwide, we strengthened production capability in countries around the world and in July 2014 commenced production of pinion-type electric power steering (P-EPS) in China.
The Driveline Division, with the goal of improving protability, increased focus on select existing products, strove to reduce costs, promoted development of next-generation products, and pursued launch of high-pressure hydrogen supply valves and pressure-reducing valves with an eye toward the future popularization of fuel-cell vehicles.
In our Bearing Business, we worked to strengthen our business foundation. In Japan, we began improvement measures related to both production and sales structures. Regarding production, we strove to reorganize plants by product type and size, including the start of eorts to make the Kokubu Plant the mother plant for industrial machinery bearings and also to streamline the supply chain. Regarding the sales structure, we merged and acquired Koyo Sales Co., Ltd., which had been a consolidated subsidiary, in October 2014 and worked to strengthen our prompt-delivery capability, enhance our product lineup, and reduce inventory through a batch management system. Overseas, we pursued the reorganization of plants in Europe and China by product type and closed two plants in Europe (Moult plant of Koyo Bearings Vierzon Maromme SAS and Bilbao plant of Koyo Bearings Espana S.A.).
Further, to strengthen our product competitiveness and product proposal capability in the industrial machinery eld, we introduced new products to meet the needs of each specic industrial eld and also installed a new test machine for steel manufacturing products at our Large Size Bearing Engineering Development Center (Kashiwara City, Osaka Prefecture) to improve development and analysis capability and establish a business model exceeding customer expectations.
In the Machine Tools & Mechatronics Division, we announced new products and technologies essential to the production oor at JIMTOF2014 (27th Japan International Machine Tool Fair) held at the Tokyo Big Sight exhibition center from late October 2014, such as the e500H-GS gear skiving center, which both carries out gear skiving and integrates machining processes into one machine, and a real-time thermal displacement compensation function, which enables predictive thermal displacement compensation by adding a thermal displacement simulation function to machines. The e500H-GS won an award at the 2014 (57th) Best 10 New Products Awards held by Nikkan Kogyo Shimbun. In regard to production and delivery, in March 2015 we completed a project begun in 2011 to drastically improve production eciency, and production administration continues to work with the sales, design & development, purchasing and manufacturing functions to reduce lead time in all phases from order receipt to shipment.
The main issues we found in in FY2014 and need to take care of are to improve JTEKTs non-consolidated prot in Japan through reduction of increased xed costs and speeded-up actions for the production systems reorganization in bearings business and the machine tool & mechatronics business, and to strengthen response to some European and American customers in overseas.
Certain foreign antitrust authorities have conducted investigations of alleged violations of competition laws by JTEKT and certain JTEKT subsidiaries regarding past transactions involving bearings and other products. In Singapore, a decision was rendered in May 2014 that JTEKT and its local subsidiary had violated Singapores Competition Act, although there was exemption from the payment of nes, and in China, JTEKT in August 2014 was ordered to pay a ne of 109,360,000 RMB for violation of Chinas Anti-monopoly Act. Addition-ally, in November 2014, South Korean authorities found that JTEKT and its local subsidiary had violated its Fair Trade Act and ordered payment of a ne of 10,910,000,000 KRW and further lodged a criminal complaint against JTEKT and its subsidiary. While a decision was rendered in April 2015 nding violation of this law, JTEKT and its subsidiary were exempted from payment of nes, etc. because of cooperation with the authorities. Investigations by foreign antitrust authorities continue, and JTEKT Group is continuing to cooperate in a timely and appropriate manner. JTEKT takes such situations very seriously and is pursuing eorts to prevent recurrence, working tirelessly to improve the compliance awareness of all employees.
We deeply appreciate your continuous support and guidance.July 2015
Consolidated net sales
Comparison of Five Fiscal Years
Consolidated operating income
Consolidated net income (loss)
Consolidated Financial Highlights
Message from the Top Management
2011 2012 2013
02Annual Report 2015
Chairman of the BoardAtsushi Niimi
President and Member of the BoardTetsuo Agata
2014 2010(FY) 2011 2012 2013 2014