Turn the delight into reality

Business Report for Fiscal Year 2009(From April 1, 2008 to March 31, 2009)

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The outlook of Tokai Rika Group is expected to remain harsh, reflecting lower automobile sales. In order to overcome this situation, as a part of the structural reform project, we will strive to strengthen product cost competitiveness, the fundamentals of s u b s i d i a r i e s i n J a p a n a n d o v e r s e a s , a n d development of products attuned to superior environmental performance and compact cars. Also, w e w i l l w o r k t o i m p ro v e t h e e f f i c i e n c y o f manufacturing through SE activit ies, improve efficiency of indirect operations and deploy human resources in key initiatives. By realizing structural reform, we aim to cultivate a profitable business structure, accelerate improvement of product attractiveness and new product development, and create new added value.

Mid-term Business Policies

Adhering to the following three-year business policies throughout the Group, we aim to establish business infrastructure capable of weathering lower production levels and other changes in the operating environment:1. H igh product qua l i t y to sa t is fy cus tomer

expectations2. Reinforcement of business infrastructure capable

of withstanding deterioration of the operating environment (emergency measures to secure profits and structural reform)

3. Proactive activities as a corporate citizen

Tokai Rika is grateful to its shareholders for their continued support.In this business report, we present the Company’s business results for fiscal year 2009 (from April 1, 2008 to March 31, 2009) and report on the challenges and opportunities ahead.

Review of Operations

To Our Shareholders

1. To create products that satisfy customers and to contribute to a higher quality of life.2. To build an energetic and promising business organization by nurturing the spirit

of originality, enthusiasm and innovative challenges.3. To honor the language and spirit of the law and the ethics of every nation, and to

work in harmony with nature and local communities.

Business Philosophy

Challenges and Opportunitiesstarted initiatives to secure earnings and strengthen the fundamentals of the business. Meanwhile, in order to ensure high product quality to satisfy customer expectations even in a tough business environment, we put into practice jikotei kanketsu— a concept of defect-free process completion to ensure that no defect ive product leaves any production process. While striving to strengthen t echno logy deve lopmen t capab i l i t i e s and manufacturing capabilities in response to the trend toward computerization and systematization of automotive parts and to establish environmental engineering, we also improved our supply system in emerging economies by establ ishing a new company in South India and expanding a factory in Brazil.

In financial results for the year under review, net sales decreased 102,584 million yen (23.3%) year on year to 337,417 million yen as a result of a decrease in automobile production output and appreciation of the yen. Despite ongoing rationalization throughout operations, lower net sales and the strong yen led to lower profits. Ordinary income decreased 33,394 million yen (97.0%) to 1,020 million yen and net income decreased 20,219 million yen (95.0%) to 1,063 million yen.

The Company paid out an interim dividend of 24 yen per share in November 2008. However, the year-end dividend was 8 yen per share, 17 yen lower than that for the previous year, in v iew with the rapid d e t e r i o r a t i o n o f t h e C o m p a n y ’s f i n a n c i a l performance. As a result, total dividends for the year under review, including the interim dividend, amounted to 32 yen per share, 16 yen lower than for the previous year.

From the beginning of the fiscal year under review through to the middle of the year, a moderate slowdown of the developed economies due to financial turmoil and the hike in oil prices triggered by the subprime loan problems in the U.S. became evident. The greater financial instability since autumn 2008 put a crimp on economies throughout the world. The Japanese economy went into a recession as a sharp decline in personal consumption in the U.S. dealt a severe blow to exports.

In the automotive industry, sales volumes of large cars and luxury models plunged in the U.S. as high oil prices and a credit crunch prompted a shift to c o m p a c t c a r s a n d v e h i c l e s w i t h s u p e r i o r environmental performance. However, this shift could not offset the overall decline and the total automobile sales volume greatly decreased in the U.S. In Europe, the sales volume, which was robust at the beginning of the year under review, subsequently went into a steep decline as the U.S. financial crisis deepened. In the BRICs, the sales volume remained robust despite a temporary weakening that reflected the recessions of European and the U.S. economies. In Japan, as a result of the rapid deterioration of the economy, not only sales of regular passenger cars but also sales of subcompact cars declined. The weak domestic market coupled with lackluster exports brought about a great decline in production and sales volumes.

In these circumstances, Tokai Rika Group faced unprecedented difficulty because of the sharp decline in automobile sales and production cuts by our customers as they sought to reduce inventories. In a bid to overcome this situation, we implemented emergency measures to secure profits. At the same time, we launched a structural reform project and

In these endeavors devoted to the development of Tokai Rika, we ask our shareholders for their continued understanding and support.

June 2009

Kiyoshi Kinoshita

President

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Topics Tokai Rika’s Product Fields

Door mirror with foot lampPure wood steering wheel

Wheel cover Ornament* The steering wheel business is co-operated with Toyoda Gosei Co., Ltd.

ConnectorsLa Lock hallway

immobilizer key system

Seatbelt equipped with pre-tensioner &

force-limiter functions

Ｓａｆｅｔｙ

Electroshifter Steering switch

Ｓｗｉｔｃｈ

ＳｅｃｕｒｉｔｙSmart key portable

device and emergency key

Multi-function switches

Immobilizer system

Smart entry & start system

Ｏｔｈｅｒｓ

Switch:Human-machineinterface

Easy-to-use parts that accurately convey drivers’ commands offer precise operability and functional elegance.

Security systemsSophisticated mechanical and electronic antitheft functions ensure security and ease of use.

Our safety devices protect drivers and passengers in the event of collision. We make full use of dynamic collision testing and other types of testing to achieve high-level safety assurance. We also offer functional products that enhance visibility.

Safety systems

Automotive accessoriesWe propose original designs in wheel covers, ornaments, and other products forcustomization to enhance the appeal of vehicles.

Automotive electronics productsWe offer function control, status detection products,and various types ofconnectors in response to the trendtoward hybrid automobiles and the progress of automotive electronics.

Housing facilities and equipmentWe offer hallway smart keys, window lock monitoring systems, and other products meeting today’s housing security needs.

Others

Perspective illustration of TRMN

* The steering wheel business is co-operated with Toyoda Gosei Co., Ltd.

Donation of goods and tree planting to commemorate the 60th anniversary

Goods donated to Oguchi-cho

Truck donated to Kiyosu City

Van donated to Toyokawa City

Tree planting in Oguchi-cho

Tree planting in Kiyosu City

Tree planting in Toyokawa City

As part of a project to commemorate Tokai Rika’s 60th anniversary, we donated a welfare vehicle and other goods to the three municipalities where we have factories and also planted trees.

Donation:• 4 items of exercise equipment in a park at the Oguchi-cho Senior Citizens Welfare Center

(installation completed in November 2008)• 1 emergency vehicle for Kiyosu City (Toyota Dyna Power Lift delivered in August 2008)• 1 welfare vehicle for Toyokawa City (Toyota Noah with a slope at the back delivered in

September 2008)Tree planting:• Oguchi-cho and Kiyosu City in October 2008• Toyokawa City in March 2009

World’s first steering wheel and shifter knob made of real wood impregnated with special resinTokai Rika, in collaboration with Miroku Techno Wood Co., Ltd. and Kochi Prefectural Industrial Technology Center, developed a steering wheel and a shifter knob that capitalize on the texture of genuine wood. These new products are made of real wood impregnated with special resin to harden the wood in order to make the products withstand moisture and scratching, while retaining the texture and the touch of natural wood. Our steering wheel and shifter knob are the world’s first automotive interior parts manufactured using this method. They were first adopted for the Toyota Crown Majesta, released in March 2009 in the Japanese market.

Construction of TRMN startedOn January 19, 2009, a groundbreaking ceremony for Tokai Rika Minda India Pvt. Ltd. (TRMN) was held. TRMN was established in August 2008 as a joint venture with N. K. Minda Group and is our second base in India following Mindarika Pvt. Ltd. The plan calls for completion of construction of the plant in February 2010 and start of operation in November 2010.

Human/machine interfaces, 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 and automobiles intersect, we deliver comfort, safety and security by fully utilizing the underpinning electronics technologies.

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Consolidated Financial Statements

Consolidated Balance Sheets

Consolidated Statements of Income Consolidated Cash Flow Statements

(Millions of yen)

(Millions of yen) (Millions of yen)

As of March As of March As of March As of March31, 2009 31, 2008 31, 2009 31, 2008

ASSETS

Current assets 97,523 140,421

Cash and cash equivalents 16,060 19,695

Notes and accounts receivable 35,766 68,858

Marketable securities 12,564 18,652

Inventories 20,349 22,976

Other 12,782 10,238

Fixed assets 129,061 130,452

Tangible fixed assets 80,057 83,974

Buildings and structures 27,689 27,148

Other 52,367 56,825

Intangible fixed assets 3,136 2,229

Investments and other assets 45,867 44,247

Total assets 226,584 270,873

LIABILITIESCurrent liabilities 56,630 90,306

Notes and accounts payable 28,928 55,442Accrued expenses 7,741 10,129Other 19,959 24,733

Long-term liabilities 19,574 18,616Long-term borrowings 1,308 —Liability for retirement benefits 17,360 17,182Other 905 1,433

Total liabilities 76,204 108,923Net AssetsShareholders' equity 153,069 157,031

Common stock 22,856 22,856Capital surplus 25,142 25,130Retained earnings 112,118 116,204Less: Treasury stock, at cost (7,047) (7,160)

Valuation and translation adjustments (6,246) 1,666Net unrealized gain on available-for-sale securities (1,322) 1,525Foreign currency translation adjustments (4,923) 141

Stock acquisition rights 360 187Minority interests 3,196 3,064

Total net assets 150,379 161,950Total liabilities and net assets 226,584 270,873

Consolidated Financial Highlights

Ordinary IncomeNet Income

Net Sales

2008 200920072006

2008 200920072006

2005

4,500 350

300

250

200

150

100

50

0

3,000

1,500

02008 2009200720062005

2005 2008 2009200720062005

(100 million yen)

Ordinary Income andNet Income(100 million yen)

Net Income per Share

(yen) (%)

Return on Equity (ROE)

250 20

15

10

5

200

150

100

50

0 0

Year ended Year endedMarch 31, 2009 March 31, 2008

Net sales 337,417 440,001Cost of sales 302,710 373,099Gross profit 34,706 66,902Selling, general and administrative expenses 33,895 33,526Operating income 811 33,376Non-operating income 1,795 1,928

Interest and dividend income 941 829Other 854 1,099

Non-operating expenses 1,586 890Interest expenses 388 557Foreign exchange losses 1,035 —Other 162 333

Ordinary income 1,020 34,414Extraordinary gains 1 307Extraordinary losses 118 2,082Income before income taxes and minority interests 902 32,639Income taxes—current 132 8,946Income taxes—deferred (1,034) 1,237Minority interests in income 741 1,173Net income 1,063 21,282

Year ended Year endedMarch 31, 2009 March 31, 2008

Cash flows from operating activities 20,066 43,961

Cash flows from investing activities (25,253) (31,784)

Cash flows from financing activities (3,720) (5,089)

Effect of foreign currency translation adjustments on cash and cash equivalents (1,667) (1,562)

Net increase in cash and cash equivalents (10,574) 5,525

Cash and cash equivalents at beginning of year 35,419 29,894

Increase in cash and cash equivalents from newly consolidated subsidiary 80 —

Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation (12) —

Increase in cash and cash equivalents resulting from merger 94 —

Cash and cash equivalents at end of year 25,008 35,419

( ) ( )( )

( ) ( ) ( ) ( )

( )

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Segment Information Non-consolidated Financial Highlights

0

1,000

2,000

3,000

100

200

300

-1,000 -100

0

300

600

900

20

40

60

-300 -20

0

300

600

50

100

0

150

300

0

20

40

Japan

Asia

North America

Europe and Others

Sales

Operating income(right scale)

2006

2006

2007 2008 20092006

2006

2007 2008 2009

2007 2008 2009

2007 2008 2009

0

1,000

2,000

3,000

100

200

300

-1,000 -100

0

300

600

900

20

40

60

-300 -20

0

300

600

50

100

0

150

300

0

20

40

Japan

Asia

North America

Europe and Others

Sales

Operating income(right scale)

2006

2006

2007 2008 20092006

2006

2007 2008 2009

2007 2008 2009

2007 2008 2009

0

1,000

2,000

3,000

100

200

300

-1,000 -100

0

300

600

900

20

40

60

-300 -20

0

300

600

50

100

0

150

300

0

20

40

Japan

Asia

North America

Europe and Others

Sales

Operating income(right scale)

2006

2006

2007 2008 20092006

2006

2007 2008 2009

2007 2008 2009

2007 2008 2009

0

1,000

2,000

3,000

100

200

300

-1,000 -100

0

300

600

900

20

40

60

-300 -20

0

300

600

50

100

0

150

300

0

20

40

Japan

Asia

North America

Europe and Others

Sales

Operating income(right scale)

2006

2006

2007 2008 20092006

2006

2007 2008 2009

2007 2008 2009

2007 2008 2009

0

1,000

2,000

3,000

100

200

300

-1,000 -100

0

300

600

900

20

40

60

-300 -20

0

300

600

50

100

0

150

300

0

20

40

Japan

Asia

North America

Europe and Others

Sales

Operating income(right scale)

2006

2006

2007 2008 20092006

2006

2007 2008 2009

2007 2008 2009

2007 2008 2009

Business Performance by Geographical Region

(100 million yen)

Sales Breakdown by Product Type(Millions of yen)

Year ended Year endedMarch 31, 2009 March 31, 2008

Amount % Amount %

Auto

mot

ive p

arts

busin

ess Switches 119,160 35.3％ 157,116 35.7％

Seatbelts 71,114 21.1 94,421 21.5Key locks 70,187 20.8 90,715 20.6Shift levers 27,139 8.0 33,675 7.7Automotive mirrors 11,791 3.5 15,060 3.4Steering wheels 11,197 3.3 17,032 3.9Exteriors 4,601 1.4 5,423 1.2Others 15,216 4.5 21,129 4.8Subtotal 330,409 97.9 434,574 98.8

General electrical parts and other businesses 7,008 2.1 5,426 1.2Net sales 337,417 100.0 440,001 100.0

General electrical partsand other businesses

2.1%

Switches35.3%

Seatbelts21.1%

Key locks20.8%

Others4.5%

Exteriors 1.4%

Shift levers8.0%

Automotive mirrors3.5%

Steering wheels3.3%

Net Sales3,374

(100million yen)

Cash Dividends

(yen)

Full yearInterim

200920062005

50

40

30

20

10

02007 2008

200920062005

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2005

250

200

150

100

50

0

-50

2007 2008

20092006 2007 2008

Net Sales

(100 million yen)

Ordinary IncomeNet Income

Ordinary Income andNet Income(100 million yen)

Year-end Cash Dividend

At the 62nd annual general meeting of shareholders held on June 18,

2009, the Company’s proposal to pay the year-end dividend to

shareholders on the record date of March 31, 2009, was approved.

1. Year-end cash dividend: 8 yen per share

2. Effective date (Date on which payment of year-end dividends starts) :

June 19, 2009

( ) ( )

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Stock Information (as of March 31, 2009)

0

6,000

12,000

18,000

2,000

3,000

1,000

4,000

32

　112111098765432112111098765

　　4

20092007 2008

Stock Price and Trading Volume

(thousands of shares) (yen)

Stock price (right scale)Trading volume

Composition of Shareholders by Shareholder Type

45.2%Corporations in Japan26.2%

Foreign entities12.3%

Financial institutions

11.9%Individuals

4.2%Treasury stock0.2%Securities firms

Directors and Corporate Auditors (as of June 18, 2009) Corporate Overview (as of March 31, 2009)

The Tokai Rika Website provides a range of information on the Company. Public notices are also posted on the website. We encourage you to visit it.

Visit Our Website

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

1. Total number of shares

Total number of shares authorized to be issued 200,000,000

Number of shares issued and outstanding 94,234,171

2. Number of shareholders 9,977

3. Major shareholders (Top 10)

ShareholderNumber of shares

(thousands of shares)Equity

participation (%)

Toyota Motor Corporation 29,367 31.16

Denso Corporation 8,839 9.38

Japan Trustee Services Bank, Ltd. (Trust Account) 6,417 6.80

The Master Trust Bank of Japan, Ltd. (Trust Account) 3,629 3.85

Japan Trustee Services Bank, Ltd. (Trust Account 4G) 3,440 3.65

The Dai-Ichi Mutual Life Insurance Company 2,375 2.52

Deutsche Bank A.G. London-PB Non-treaty Clients 613 1,047 1.11Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account) 980 1.04

Tokai Rika Employee Stock Ownership Plan 868 0.92

Aioi Insurance Co., Ltd. 730 0.77Note: The Company holds 3,917 thousand shares of treasury stock but is excluded from the major

shareholders listed above.

President Kiyoshi Kinoshita

Executive Vice President Yuzo Ushiyama

Executive Vice President Takaoki Tsuchiya

Executive Vice President Shigeru Kato

Senior Managing Director Yoshiteru Sasaki

Senior Managing Director Takafumi Mizuno

Senior Managing Director Kiyoshi Tsunekawa

Managing Director Takashi Kawaharazaki

Managing Director Makoto Goto

Managing Director Hitoshi Iwata

Managing Director Mineo Hattori

Managing Director Shoji Ishida

Managing Director Tadanao Hamamoto

Managing Director Hitoshi Hirano

Managing Director Mikihiro Mori

Director Ikuzou Kojima

Director Kenji Kawaguchi

Director Hiroyuki Nakamura

Director Tadashi Wakiya

Director Kouji Buma

Director Yoshihiro Obayashi

Full-time Corporate Auditor Kazuhisa Kubota

Full-time Corporate Auditor Hiroshi Nishio

Corporate Auditor Yoshio Uesaka

Corporate Auditor Yasuhiko Ichihashi

Corporate Auditor Shinji Shirasaki

Paid-in capital: 22.8 billion yen

Number of employees:

14,838 (consolidated) 5,912 (non-consolidated)

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

Main plants and offices:

Head Plant, Nishibiwajima Plant, Toyota Plant, Otowa Plant, Hagi Plant (These 5 plants are in Aichi prefecture)

Tokyo Office (Yokohama), Osaka Office (Osaka), Hiroshima Office (Hiroshima prefecture)Tohoku Technical Development Center (Yamagata prefecture)

Consolidated subsidiaries:

28 (8 in Japan, 6 in North America, 10 in Asia, 4 in Europe and elsewhere)

Affiliates accounted for by the equity method:

6 (3 in Japan, 1 in North America, 2 in Asia)

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Shareholder Information

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 a special account is opened for you because you do not have a securities account

with a securities firm, please contact The Chuo Mitsui Trust and Banking Co., Ltd., which is the agent for managing special accounts.

•Toll-freenumber:0120-87-2031(24hours,automatedvoiceguidance) •Website:http://www.chuomitsui.co.jp/person/p_06.html

3. Notification concerning payment of dividends on listed stock In accordance with the 2008 amendment of the Act on Special Measures concerning

Taxation (Act No. 23, April 30, 2008), it is mandatory to send payment notifications concerning dividends to be paid from January 2009 onward to shareholders, indicating the amount of dividends and the amount of withholding tax.

Payment notifications will be sent to shareholders who receive dividends in exchange for dividend receipts at the end of the year or the beginning of the following year. In the case of shareholders who have specified direct deposit as a method of payment, dividend statements, which are sent to them when paying dividends, will be treated as payment notifications. These documents can be used as evidence when filing an income tax return.

Business year: From April 1 to March 31 of the following yearAnnual general meeting of shareholders:

June

Record date for distribution of surplus:

Year-end dividend: March 31Interim dividend: September 30

Number of shares constituting one unit of stock:

100 shares

Stock code: 6995Registration of transfer of shares:

Transfer agent: The Chuo Mitsui Trust and Banking Co., Ltd.3-33-1 Shiba, Minato-ku, Tokyo

Agency administration office:

Stock Transfer Agent Department, Nagoya Branch, The Chuo Mitsui Trust and Banking Co., Ltd.3-15-33 Sakae, Naka-ku, Nagoya 460-8685, JapanTel: 0120-78-2031 (Toll free in Japan)

Listing stock exchanges: Tokyo Stock Exchange, Nagoya Stock ExchangeMethod of public notice:

Electronic public noticeIf 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/

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