TAKATA,Documento Oficial
Transcript of TAKATA,Documento Oficial
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2012
Takata Corporation
Annual Report
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Contents
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2
>> CONTENTS
FORWARD-LOOKING STATEMENTS
The information provided in this document is not intended to be and should not be construed as an inducement to purchase or sell stock in Takata Corporation. You should
make any investment decisions relating to the stock in Takata Corporation on the basis of your own assessment and judgment. The information in this document includes
forward-looking statements and forecasts, as well as historical results. Please be informed that such forward-looking statements and forecasts are not guarantees of
future results, but rather are inherently risky and uncertain, and therefore actual results may be materially different. Takata Corporation does not assume any responsibility
for any damage resulting from the use of the information contained in this document.
Takata Principles 1
Profile 2
Financial Highlights 3
Message from the President 4
Total Safety Systems 8
Global Business Overview 10
Japan 12
The Americas 14
Europe 16
Asia 18
Research & Development 20
Global Regulations 26
Takata in the News 28Environment 30
Society 31
Corporate Governance 32
Board of Directors, Corporate Auditors,
and Executive Officers 34
Financial Section 35
Investor Information 72
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Our mission - your safety.
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 1
Takata Principles
Philosophy
We embrace the pioneer spirit of our founder and
are motivated by the preciousness of life.
Mission Statement
Develop innovative products and provide superlative quality and
services to achieve total customer satisfaction.
Respect various personalities and cultures and keep associates highly
motivated under one Takata name to pursue common goals.
Be an active member of the community and
contribute to a better society.
Takata Way
To communicate openly and effectively.
To adhere to Sangen-shugi.
To be committed in everything we do.
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Profile
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 2
>> PROFILE
Takata Corporation is one of the world’s leading automotive safety systems
companies, supplying nearly all the world’s major automakers with a product
range that includes seat belts, airbag systems, steering wheels, child seats,
and electronic devices such as satellite sensors and electronic control units.
Founded in 1933 as a textile company in Shiga Prefecture, Japan, Takata
began to focus on businesses relating to automotive safety systems from the
early 1950s. Since bringing Japan’s first seat belt to market in 1960, Takata
has grown organically and through acquiring and successfully integrating
businesses around the globe. Today, Takata has plants in 20 countries and is
one of the most vertically integrated manufacturers in the global automotive
safety industry, operating within a regional and global framework that
encompasses the entire value chain.
Takata continues to undertake advanced research into high-technology safety
systems and products, and has received numerous awards for innovation and
excellence in automotive safety. Takata is investing for growth in emerging and
mature markets worldwide, building on its strong relationships with global and
local automakers to provide consistently high quality, reliable supply, and close
alignment with end-user needs.
Takata remains firmly committed to contributing to society
as a technology and value leader in automotive safety
systems and products, as it seeks to realize its dream
of a society with zero fatalities from traffic accidents.
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Financial Highlights
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 3
2012 2011 2010 2009 2008
For the year:
Net sales ¥ 382,737 ¥ 390,876 ¥ 350,914 ¥ 385,499 ¥ 515,857
Operating income 13,618 26,818 14,654 2,845 36,732
Ordinary income 13,499 27,008 15,672 369 36,397
Net income 11,937 18,237 6,942 (7,319) 22,878
At year end:
Net assets ¥ 161,186 ¥ 155,312 ¥ 150,789 ¥ 145,379 ¥ 175,200
Total assets 329,718 323,928 330,040 315,352 339,010
Net assets per share (yen) ¥1,924.80 ¥1,855.48 ¥1,805.06 ¥1,768.98 ¥2,145.79
Basic net income per share (yen) 143.55 219.31 84.62 (89.40) 280.89
Diluted net income per share (yen) — — — — 276.44
Capital adequacy ratio (%) 48.5 47.6 45.5 46.0 51.6
Return on equity (%) 7.6 12.0 4.7 (4.6) 13.0
Price-to-earnings ratio (times) 15.4 10.9 28.3 (9.0) 7.8
Notes:
1. Net sales is presented exclusive of consumption tax. 2. Diluted net income per share is not shown for the fiscal year ended March 31, 2009 because the Company made a net loss and no dilution was recorded due to
there being no outstanding potential shares of common stock. Diluted net income per share is not shown for the fiscal year ended March 31, 2010 as there were nooutstanding potential shares of common stock with dilutive effects. Diluted net income per share is not shown for the fiscal years ended March 31, 2011 and 2012 asthere were no outstanding potential shares of common stock.
Takata Corporation and Subsidiaries
(Millions of yen except where indicated)
Fiscal years ended March 31
Net income
2012
2011
2010
2009
2008
11,937
18,237
6,942
(7,319)
22,878
Millions of yen
Operating income
2012
2011
2010
2009
2008
13,618
26,818
14,654
2,845
36,732
Millions of yen
Net sales
2012
2011
2010
2009
2008
382,737
390,876
350,914
385,499
515,857
Millions of yen
Net assets per share
2012
2011
2010
2009
2008
Yen
143.55
219.31
84.62
(89.40)
280.89
Total assets
2012
2011
2010
2009
2008
329,718
323,928
330,040
315,352
339,010
Millions of yen
1,924.80
1,855.48
1,805.06
1,768.98
2,145.79
Basic net income per share
2012
2011
2010
2009
2008
Yen
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Recovering fromnatural disasters
Takata’s performance for the fiscal year ended March 31,
2012 was deeply affected by two natural disasters: the
March 2011 earthquake in Japan, and the September
2011 flooding in Thailand. The impact on the automotive
industry has been well documented. Although our ownfactories were outside the disaster zones, disruptions to the
wider supply chain brought production at many automak-
ers to a halt. Sales and production at Takata during the
periods of disruption were inevitably hit hard, particularly in
Japan, Asia and the Americas. Despite such challenges, a
high pace of recovery efforts restored production far more
quickly than had at first seemed possible, and on a local
currency basis we managed to increase our consolidated net sales for the year by 2.6%. Considering
our exposure to customers severely constrained by the natural disasters, this is a noteworthy achieve-
ment. Taking currency translation effects into account, these issues led to a 2.1% net decrease in
consolidated sales to ¥382,737 million for the year.
The disruptions to the automotive industry had a severe impact on Takata’s profitability. Prior to the
resumption of full manufacturing in September 2011, we cut production at some locations by nearly
50%, and the lower overall capacity utilization ratio over the course of the year was one of the factors
that led to operating income falling 49.2% to ¥13,618 million. As a result, the operating profit margin
for the year was 3.6%.
Strong financial status maintained
Our financial position remains sound. Amid currency fluctuations and a troubled global economy we
have maintained a policy of ensuring high cash liquidity and an ability to capitalize on sustainable
growth opportunities over a three-to-five year time frame. Our shareholders’ equity ratio at the endof the year was 48.5%, our credit rating from JCR remains at A—as it has been since 2007—
and we issued a dividend of ¥30 per share for the year, the same level as in the previous year.
Slight increase in global automobile production
Given the unprecedented circumstances, it is perhaps unsurprising that the number of automobiles
manufactured globally showed only a small increase in fiscal 2012. Moderate economic recovery in
the US supported production growth. In Europe, excluding Germany, the economic slowdown
brought about by the financial crisis put the brakes on production. Emerging Asian markets like
China and India slowed from their rapid growth of the previous year. Major declines among Japanese
automakers were seen as a result of the natural disasters noted earlier. In Japan, production returned
to normal or higher-than-normal levels from the third quarter, but this could not completely compen-
sate for the massive disruptions in the first half of the year. Furthermore, the increases in production
occurred mostly in regions with low safety content per vehicle.
Message from the President
PRESIDENT AND COO
Shigehisa Takada
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 4
2012 marks 80 years since our founding. Under our new Global Vision—
One World One Takata—we are focused on becoming the world’s
leading global supplier of automotive safety systems.
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Growth strategy focuses on most promising markets
The global automotive safety parts market is valued at approximately ¥2 trillion and Takata is cur-
rently number two in the industry worldwide with a share of around 20%. Our goal is to become the
global industry leader. Our current medium- to long-term management plan is to achieve Group sales
of ¥500 billion and operating margin of 10%, and to achieve this we are focusing our resources on
emerging markets. These comprise a number of markets showing substantial, sustained growth, with
exciting long-term potential. Given the importance of these markets to the success of our strategy,
I would like to make some brief points about each of them, starting with China.
Expanding our network in China, the world’s largest car market
China has become the largest automotive market in the world. Nearly everything about this market
has increased in scale and sophistication, typified by how important the Shanghai Auto Show has
become on the international calendar. We are deeply committed to growing our business in China with
both domestic and global automakers, and are aligning our operations closely with the unique needs
of this market. An example of this approach is our new stand-alone technical center in Shanghai,
designed to enable a more rapid and focused response to specific local requirements.
India
India is another market with very high latent demand for automobiles. This emerging demand is essen-
tially an ongoing, secular trend. Despite the recent easing of growth amid fiscal tightening, we are
continuing to pursue our long-term strategy in this market, working closely with domestic and global
automakers to complement their expansion throughout the nation.
Thailand and Indonesia
After China, Thailand and Indonesia are the largest automotive markets in Asia. There is immense
activity and investment by major auto manufacturers in this region, and the outlook for automotive
growth is positive. We have a strong network of manufacturing plants, close to key manufacturers,
and have particularly strong relationships with the Japanese automakers that continue to enjoy very
high market share in this region.
Brazil and South America
Brazil is another nation with a strong secular growth trend. We have been active in Brazil for many
years and have very high market share as the leader in airbags and steering wheels. Our new Uruguay
plant began full production this year, shipping safety components to our assembly plants in Brazil.
As stricter safety regulations become progressively applicable to a broader range of vehicles in South
America, we are focusing intently on being first to capture the ensuing opportunities for growth.
Russia
Russia has become an increasingly significant element of the wider European automobile market, and
vehicle production volumes have shown impressive growth. Reflecting this, we have begun full scale
production at a new plant in the Western Russian district of Ulyanovsk, ideally placed to build on the
important relationships we have with leading manufacturers in the market.
Message from the President (cont.)
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 5
“We are deeply
committed to growing
our business in China
with both domestic and
global automakers,
and are aligning our
operations closely with
the unique needs of
this market.”
“Brazil is another nation
with a strong secular
growth trend. We have
been active in Brazil for
many years and have
very high market share
as the leader in airbags
and steering wheels.”
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Message from the President (cont.)
Creating a truly global organization and outlook
Within our industry, the term ‘globalization’ means more than ‘doing business in global markets’. For
automakers, globalization heralds a dramatic shift in production capacity from mature markets to
emerging economies, a strong trend toward international product standardization, and an increasing
number of major local automakers looking beyond their own borders. As a result, auto parts manu-
facturers are now expected to be able to provide uniform products in any region of the world. This
is a significant change in approach, and companies in our industry that fail to make the necessary
fundamental changes are unlikely to survive.
Anticipating this change in the industry, in April 2012 we aligned our value chain to enhance com-
petitiveness. We now have unified international teams with Associates aligned across our entire value
chain, from development through to sales, so that we can address the specific needs of each global
automaker in each of their markets. Each value chain division has strategic priorities to pursue. For
example, In R&D we are focusing our new product development on crash avoidance and electronic
systems, aiming to ensure strong differentiation in the market. In purchasing we are adopting more
efficient working capital management systems and driving down procurement costs. In manufacturing
we are putting in place stronger, more direct links with engineering, helping to create global standard
products and production processes that will increase our cost competitiveness. And at the manage-
ment level, we are committed to increasing the speed of our decision-making, with a slimmed-down
international management committee that can deliver resources to markets rapidly and effectively.
Through the global activities of our business units, we plan to show all our customers, wherever they
are in the world, that they have access to the very best safety products and services.
Growing our core and expanding into related areas
Our business strategy has two main elements: maximizing growth and profitability in our existing
business, and entering into new safety-related business areas. “Existing business” should not be
construed as meaning “doing exactly what we have always done.” We are making exciting advances
in airbags, seat belts and active safety systems, and in combination with regulatory advances in
growth markets and consumer sophistication in mature markets, this means that there are strong,
sustained opportunities for us to keep growing. An example of our continued development in an exist-
ing business area is the front center airbag we developed jointly with General Motors. We introduced
this world-first product in 2011 to provide additional protection to front seat occupants in side impacts,
and in doing so, proved once again that practical innovation is a powerful driver for business growth.
Safety Electronics is another area of innovation-based growth for Takata, as it lies at the heart of active
safety systems.
We have been making significant investments to ramp up our operations in new markets as well.
We have now taken the first steps in expanding our operations into Non-Automotive Safety systems,
most notably with the March 2012 acquisition of a BAE Systems subsidiary that produces seat belts
and other safety equipment for fixed wing aircraft, helicopters and race cars. This provides a credible
path into the aircraft industry and new markets outside of automobiles where we can both apply and
gain knowledge to grow the scale of our business, while remaining firmly within the field of safety that
has driven our business for so many decades.
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 6
“For automakers,
globalization heralds
a dramatic shift in
production capacity
from mature markets to
emerging economies,
a strong trend toward
international product
standardization, and an
increasing number of
major local automakers
looking beyond their
own borders.”
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Message from the President (cont.)
Championing safety: our evolving role
Takata’s growth as a pioneer in the automotive industry has been founded on providing safety prod-
ucts. In some respects, our terms of engagement with the automotive industry have been relatively
simple: automakers built cars, and we supplied safety components. However, today society and our
industry are undergoing substantial change, influenced by factors such as the stagnation of mature
markets, the rapid growth of emerging economies, the emergence of electric vehicles and other
responses to environmental concerns, and heightened awareness of safety and security in societies
around the world.
Given these changes, we recognize a need to reconsider our role in society. We believe we have
reached the point where we can contribute to the safety of the automotive market and society on a
broader front. This means carefully considering changes in the communities we serve. For example,
thirty years ago we played a pioneering role in promoting child seats in high-growth Japan. Now, we
need to consider what kind of safety systems are needed by the rapidly aging global population,
and by new modes of transport.
As part of this Total Safety approach, we are active in efforts to detect and prevent drinking and
driving, and have been active in initiatives to increase the correct installation of seat belts and child
seats so that every passenger in a vehicle can be kept safer. These needs are even more pressing in
emerging markets that are undergoing rapid motorization, giving us the opportunity to make use of
skills we have learned in mature markets. The same applies in environmental management, where
we have adopted reduce, reuse, recycle programs with significant results in many of our plants.
Acknowledging the past but focusing relentlessly on the future
In February 2011 we lost Juichiro Takada, the leader who made Takata what it is today. He was inspi-
rational in many ways, but in particular for the way he refused to give up until success was achieved,
no matter how tough the circumstances. Our Company now has an 80-year history of developing
technology and pursuing ever higher goals through both strong and weak economic cycles, but we
have no interest whatsoever in dwelling on our past achievements. The challenges and opportunities of
the future are far too great, and I will be working alongside our 37,000 group employees to ensure that
“Our mission—your safety” continues to be a guiding force for safety in the world of transportation.
We very much appreciate your ongoing interest and support.
Shigehisa Takada
President
June 2012
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 7
“In some respects, our
terms of engagement
with the automotive
industry have been
relatively simple:
automakers built
cars, and we supplied
safety components.
However, today society
and our industry are
undergoing substantial
change, influenced
by factors such as
the stagnation of
mature markets,
the rapid growth of
emerging economies,
the emergence of
electric vehicles
and other responses
to environmental
concerns, and
heightened awareness
of safety and security
in societies around
the world.”
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Seat belts
Since commercializing Japan’s first seat belts in 1960, we have
continued to improve the effectiveness and comfort of seat
belts through innovation in areas such as textiles and weaving
technology. Recently we modified our motorized seat belt to
provide enhanced comfort and safety. In addition to automati-
cally tightening to restrain vehicle occupants when pre-crash
sensors detect risk of collision, the new comfort function reduces
the pressure exerted by the seatbelt during normal driving, hold-
ing vehicle occupants in position during sudden braking or sharp
turns. In 2010 we became the first in the world to commercialize
the airbelt, a new type of seat belt that inflates like an airbag at
the time of impact. We also recently developed new state-of-
the-art inkjet printing technology which allows us to create seat-
belt webbing with patterns, words or logos in a variety of colors.
Driver seat belts (Motorized seat belts)
Passenger seat belts (Motorized seat belts)
Rear seat belts
Airbag systems
Takata launched the first airbags in Japan in 1987. Since then
we have continued to enhance our capabilities in the develop-
ment, design and production of airbag systems and products,
from airbag textiles to hazard detection control units and inflator
technology, and today most of these operations are carried
out in-house. In addition to driver and passenger airbags, side
airbags, curtain airbags, and knee airbags that protect the legs
of front seat occupants, we have commercialized innovative
products such as the D-shape curtain airbag, which protects
the head as well as helping prevent passenger ejection, and a
far-side airbag that inflates between the left and right seats in
the event of a side collision to control the lateral movement of
vehicle occupants. In 2009 we marked the launch of our Vacuum
Folding Technology (VFT) which uses a proprietary packingprocess to reduce the size of airbags by up to 50% compared
to conventional airbags, with 35% less mass.
Driver airbags
Passenger airbags (Twin bag systems)
Knee airbags
Side airbags
Curtain airbags
Pedestrian head protection airbags
Takata’s advanced safety technology:
Surrounding the lives it protects
Our product range encompasses the
full spectrum of passive and active
automotive safety technology, and
the results of our advanced research
and relentless attention to detail can
be found throughout the anatomy of
a car—helping to protect occupants
and even pedestrians, and to reduce
the impact of traffic accidents on
individuals and on society.
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Total Safety Systems
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Total Safety Systems (cont.)
Seat belts
28.7%Other
27.6%
Airbags
43.6%
Salesby productcategory (FY2012)
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 9
Other
This category includes steering wheels, electronic devices such as vehicle occupant sensors, colli-
sion sensors, electronic control units (ECUs) for controlling airbag inflation, interior trim products such
as door panels and consoles, and child seats. In 2000, Takata acquired Petri AG, a German manu-
facturer with a strong track record that includes installing the world’s first airbags into commercially
produced vehicles. In 2009 we developed and commercially launched SafeTrak, a lane departure
warning system, which mitigates the risk of accidents caused by unintentional lane departures that
can result from lapses in driver concentration.
Steering wheels
Interior trim
Child seats
Satellite sensors
Electronic control units (ECUs)
Seat weight sensors (SWSs)
Pop-up hood devices
Lane departure warning systems
TAKATA INNOVATION
Front Center Airbag
From the passenger’sperspective, there are
two possible types of side
collisions. One occurs close
to the occupant (the near
side). The other happens
on the opposite side from
the occupant (the far side).
Current available inflatable
devices address near side
scenarios.
However, to provide
supplemental protection
to passengers in collisionsfrom both sides, Takata
has worked in partnership
with General Motors to
develop a Front Center
Airbag which inflates
between the left and right
front seats, and serves
as an energy-absorbing
cushion between the driver
and front seat passenger
in both near and far
side-impact crashes. The
tubular airbag is mounted
in the right side of thedriver’s seat, and is also
expected to provide benefit
in rollover crashes.
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“...the results of our advanced research and
relentless attention to detail can be found
throughout the anatomy of a car—helping
to protect occupants and even pedestrians,
and to reduce the impact of traffic accidents
on individuals and on society.”
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Global Business Overview
18/5/188/1/4
21,5001,500
Japan America
Brazil
Mexico
Uruguay41
Our global headquarters is located in
Tokyo, and in Japan Takata has eight
manufacturing plants, two of which
are located in the southwest island
of Kyushu, and one R&D facility. A
new cutting-edge servo sled test
facility is currently under construction
at our R&D facility, located in Shiga
Prefecture. We have approximately
1,500 employees in Japan.
Takata’s regional headquarters for the
Americas is in Auburn Hills, Michigan.
We have five plants and three R&D
facilities in the U.S. and nine plants in
Mexico. In South America, we have
three plants in Brazil, and a recently
completed a plant in Uruguay. We
currently have approximately 21,500
employees in the Americas.
COUNTRIES1
PLANTS/R&D FACILITIES2 /
CONSOLIDATED SUBSIDIARIES
MARKET SUMMARY
REGION NET SALES
REGION OPERATING INCOME
EMPLOYEES3
1. Countries in which Takata has a presence 2. Includes sled, testing and local application engineering facilities
3. Approximate as of March 31, 2012; full-time employees only
Millions of yen
2012
2011
2010
2009
2008
Millions of yen
1,174
2012
2011
2010
2009
2008
102,265
112,882
106,573
124,925
156,949
4,106
9,262
6,699
5,045
Millions of yen
2012
2011
2010
2009
2008
Millions of yen
128
(1,699)
(3,021)
2012
2011
2010
2009
2008
153,135
157,464
143,643
154,923
237,946
14,159
3,914
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 10
Japan The Americas
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Global Business Overview (cont.)
15/4/22 12/4/14
11,500 2,000
Czech Republic
Germany
Morocco
Poland
Romania
China
India
Indonesia
Korea
Malaysia
87Philippines
Singapore
Thailand
Russia
South Africa
Takata’s regional headquarters for
Europe is located in Aschaffenburg,
Germany. We have fifteen factories
and four R&D facilities in the region,
and a new plant in Russia recently
commenced operations. We have
also established a new plant in
Morocco to supply local and regional
OEMS mainly in Southern Europe.
We have a total of around 11,500
employees in the region.
In the Asia region we have eleven
plants and three R&D centers in
seven countries, including new plants
in Indonesia and Tianjin and India,
and a new Technical Center
in Shanghai, China. We have
approximately 2,000 employees in
the region excluding Japan.
COUNTRIES1
PLANTS/R&D FACILITIES2 /
CONSOLIDATED SUBSIDIARIES
MARKET SUMMARY
REGION NET SALES
REGION OPERATING INCOME
EMPLOYEES3
1. Countries in which Takata has a presence 2. Includes sled, testing and local application engineering facilities
3. Approximate as of March 31, 2012; full-time employees only
Millions of yen
2012
2011
2010
2009
2008
Millions of yen
1,391
(3,383)
2012
2011
2010
2009
2008
116,635
108,477
98,136
112,132
144,472
5,785
4,117
5,695
Millions of yen
2012
2011
2010
2009
2008
Millions of yen
2012
2011
2010
2009
2008
76,188
82,320
72,750
68,295
73,709
3,581
9,625
8,660
7,245
9,319
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 11
Europe Asia (excluding Japan)
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Japan
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 12
Business year in review
The automotive industry in Japan faced its greatest ever challenge in the aftermath of the March
2011 Great East Japan Earthquake. Vehicle production and sales fell drastically in the first half of theyear, despite the sometimes astonishingly rapid restoration of domestic manufacturing and logistics
infrastructure, the disaster still had a significant impact on autoparts suppliers such as Takata.
Automotive production levels began to normalize from August as remaining production and
distribution hurdles were overcome, and total vehicle production in Japan for the year reached
8.5 million, an increase of 3.4%.
Results and outlook
Net sales decreased 9.3% to ¥102,265 million, and operating income fell 55.7% to ¥4,106
million. These figures largely reflected operating losses in the first quarter followed by recovery
of results as vehicle production picked up again in the second quarter.
Looking ahead, Japan’s auto industry appears likely to remain under severe pressure from
the strength of the yen, compounded by other factors such as a shrinking domestic automotive
market, uncertain energy supply amid the continued shutdown of nuclear power plants, and
increasing energy costs. Japanese automakers are shifting more of their production to growth
markets and low cost manufacturing locations, and exporting fewer cars from Japan. Despite
these problems, we expect a moderate level of economic recovery to continue in Japan, sup-
ported by demand from disaster reconstruction and recovery measures.
At Takata we have been putting in place an operating structure to enable us to align more
closely with our automaker customers in every market, including Japan, and we are therefore
adjusting capacity and production within an overall framework of global growth for our business.
(Photos from top) Takata Corporation
Headquarters, Tokyo; Takata won a 2011
Good Design award for its Airbelt, a unique
fusion of existing airbag and seat belt
technologies
>> GLOBAL BUSINESS OVERVIEW: JAPAN
Takata is an acknowledged pioneer in Japan’s automotive safety systems market,
with a history of more than 50 years of innovation, technological development
and commitment to ever higher levels of automotive safety. Japan is Takata’s
global headquarters, playing a central role in group management, cost control
and product development strategy.
Japan: Operating incomeby quarter
Japan: Net sales by quarter Region as percentageof total sales
Millions of yen, rounded down
Millions of yen, rounded down
(727)
1,820
1,725
1,289
1Q
2Q
3Q
4Q
18,747
26,454
28,184
28,881
1Q
2Q
3Q
4Q 18.6%
FY2011: 19.9%
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Japan (cont.)
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 13
Japan
Despite disruptions from the March 11
disaster, Japan’s vehicle production was
restored more rapidly than anticipated,
and surpassed pre-quake levels by
September 2011.
Takata wins 2011 Good Design award for world’s first Airbelt
The Good Design awards assess not only aesthetics but also how items contribute to better
lifestyles and society. In October 2011, Takata won a Good Design award for the world’s first com-
mercialized Airbelt for passenger vehicles, with judges recognizing the innovative design approach
and Takata’s active ongoing pursuit of higher levels of passenger safety.
Launched commercially in 2010, Takata’s Airbelt features an airbag built into the webbing of
the seat belt, which on impact expands over the occupant’s head, shoulder and chest. Because
the belt inflates between the shoulder and head, it can reduce lateral head movement and provide
protection from impact with structural objects or other passengers inside the vehicle.
“At Takata we have
been putting in place
an operating structure
to enable us to align
more closely with our
automaker customers
in every market,
including Japan,
and we are therefore
adjusting capacity and
production within an
overall framework of
global growth for
our business.”
>> GLOBAL BUSINESS OVERVIEW: JAPAN
FY2013
FY2012
FY2011
FY2010
FY2009
8,882 (Forecast)
8,575
8,294
8,320
9,275
Auto Production Trends for JapanThousands of vehicles
Source: IHS Worldw ide Inc. Exclu ding trucks (as of J uly 2012)
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The Americas
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 14
Business year in review
Vehicle production in the Americas increased almost 10%, or over one million vehicles,
for the year under review, despite disruptions to the supply chain in the aftermath of naturaldisasters in Asia. Higher sales in the fourth quarter supported this increase in production.
Developments at Takata included the opening of our Uruguay facility, which began shipping
airbag components, and the commissioning of our new Servo Sled crash test laboratory in
Auburn Hills, Michigan, which now provides the most accurate crash data analysis available
in the industry.
We made two important acquisitions during the year as part of our drive to be a global leader
in transportation safety, purchasing BAE Systems subsidiaries BAE Systems Safety Products Inc.,
(based in Pompano Beach, Florida, USA) and Schroth Safety Products GmbH (based in Arnsberg,
Germany), now renamed Takata Protection Systems Inc. These acquisitions give us the opportu-
nity to extend our expertise to other transportation markets, such as airline and motor sports.
Results and outlook
Net sales in the Americas declined by 2.7% year on year to ¥153,135 million, and operating
income fell 96.7% to ¥128 million. Although production volumes at Ford, Chrysler, General
Motors, Hyundai and Nissan increased, helping to fill volume gaps left by several Japanese
OEMs, this broad change in product mix, along with reduced production after the natural
disasters, affected Takata America’s overall performance. Results were also affected by a one-
time charge to warranty claims and legal fees associated with an ongoing investigation by the
U.S. Department of Justice.
Performance at Takata began to improve in the fourth quarter of the year, with Honda and
Toyota returning to full production levels, and this improvement is expected to extend into thefollowing year.
(Photos from top) Steering wheel
production, Brazil plant; Auburn Hills,
Michigan, U.S.; Servo sled facility,
Auburn Hills, Michigan, U.S.
>> GLOBAL BUSINESS OVERVIEW: THE AMERICAS
Takata began operations in North America in 1984, and through
organic growth and acquisitions we have become a leading safety
systems supplier throughout North and South America. In addition to
the United States, we operate plants in Mexico, Brazil and Uruguay. A new
advanced crash test research laboratory located in Auburn Hills, Michigan
supports development programs of major U.S., European and Asian automakers.
36.7%FY2011: 37.0%
Americas: Operating incomeby quarter
Americas: Net sales by quarter Region as percentageof total sales
Millions of yen, rounded down
Millions of yen, rounded down
1Q
2Q
3Q
4Q
35,550
36,506
36,866
44,215
1Q
2Q
3Q
4Q
(334)
950
(2,297)
1,809
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The Americas (cont.)
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 15
North America
North America, the key market for the
Americas region, has seen stable growth
in vehicle production since 2010, and is
forecast to continue to grow in 2013.
New servo sled takes safety system testingto frontier levels of accuracy
Takata’s new state-of-the-art servo sled facility in Auburn Hills, Michigan, in the United States began
operations in the summer of 2011, bringing airbag and restraint testing in the Americas to a new
level of sophistication. Technical advances in the servo sled enable Takata to shorten the product
development cycle by creating a more precise correlation between servo sled test simulations and
actual full-vehicle crash tests run by OEMs. For example, the new sled can simulate vehicle nose-
diving under heavy braking, enabling engineers to develop a more accurate picture of occupant
movement in collisions—and helping Takata provide an even higher level of service to local and
international automakers.
“We made two
important acquisitions
during the year as
part of our drive to
be a global leader in
transportation safety...
These acquisitions give
us the opportunity to
extend our expertise
to other transportation
markets, such as
airline, military and
motor sports. We have
also begun working in
the aerospace industry,
supplying specialized
airbags for private
space shuttles.”
>> GLOBAL BUSINESS OVERVIEW: THE AMERICAS
FY2013
FY2012
FY2011
FY2010
FY2009
14,822 (Forecast)
13,719
12,425
9,782
10,842
Auto Production Trends for North AmericaThousands of vehicles
Source: IHS Worldw ide Inc. Exclu ding trucks (as of J uly 2012)
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Europe
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 16
Business year in review
The year under review saw continued variability in the automotive markets of Europe. In Western
Europe, the number of new car registrations eased 1.3%, with a considerable stabilizing effectfrom the German market, which recorded a growth in registrations of 6%. This was largely able to
compensate for lower sales in other key markets, such as France (down 18%), Italy (down 15%),
and Great Britain and Spain (each down 4%).
Meanwhile, the Eastern European market grew substantially, largely driven by a 38.7% increase
in Russia, where consumers purchased nearly 2.7 million new vehicles.
Growth in the Chinese automotive market continued to influence outcomes in Europe, with
manufacturers of premium European brands in particular benefiting from further strong export
sales to China.
Results and outlook
Net sales increased 7.5% to ¥116,635 million, led by sales to German automakers. This sales
growth contributed to a 40.5% increase in operating income to ¥5,785 million. During FY2012 we
increased European production capacity, with the construction of a new plant in Russia for seat
belts, airbags and steering wheels, and expansion of a plant in Romania.
For the year ahead, significant risks are coloring expectations for the European automotive mar-
ket. Foremost among these risks is the ongoing sovereign debt crisis and financial market volatility,
which caused a substantial slowdown in vehicle sales in the second half of the year under review.
Raw material prices are also a concern. On the positive side, regulatory developments in different
European nations are providing impetus for higher sales of airbags and other safety products, and
we are building even closer relationships with leading automakers throughout Europe. We are tak-
ing further steps to optimize our pricing, cost structure and manufacturing footprint, and expect tocompete strongly with our global peers in the year ahead.
(Photos from top) Aschaffenburg, Germany;
R&D center, Berlin, Germany; Takata display
at Frankfurt Motor Show
>> GLOBAL BUSINESS OVERVIEW: EUROPE
Takata’s manufacturing presence in Europe began in the U.K. in 1988. In 2000 we
acquired PETRI AG, a major German manufacturer of steering wheels, airbag systems
and other safety products. Today, our geographically diverse European footprint serves
automakers from Europe and around the world, supported by an advanced R&D
center that hosts the latest sled crash testing and product development facilities.
30,484
28.9%
FY2011: 26.5%
Europe: Operating incomeby quarter
Europe: Net sales by quarter Region as percentageof total sales
Millions of yen, rounded down
Millions of yen, rounded down
2,005
1,077
1,267
1,436
1Q
2Q
3Q
4Q
30,403
28,688
27,061
1Q
2Q
3Q
4Q
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Europe (cont.)
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 17
Germany
Germany, Europe’s key market, has
been resilient amid the faltering
European economy, benefiting from
exports of luxury vehicles to China on
the back of a weaker euro.
Network expansion and marketing in Europe
Supply capabilities strengthened in Eastern Europe
Takata is continuing to expand its plant network in Eastern Europe, which is an attractive loca-
tion for automakers needing cost-effective, high quality manufacturing. During FY2012 we started
production at a new plant in Russia.
Takata displays safety technology at the Frankfurt Motor Show
In September 2011, Takata showcased its safety technology at the Frankfurt Motor Show. The
centerpiece of our display was Takata’s Vacuum Folding Technology, which dramatically reduces the
size of the airbag in the steering wheel while reducing design limitations and environmental impact.
Also on display to the public was Takata’s new hood airbag, currently under development.
“...regulatory
developments in
different European
nations are providing
impetus for higher
sales of airbags
and other safety
products, and we are
building even closer
relationships with
leading automakers
throughout Europe.
We are taking further
steps to optimize our
pricing, cost structure
and manufacturing
footprint, and expect to
compete strongly with
our global peers in
the year ahead.”
>> GLOBAL BUSINESS OVERVIEW: EUROPE
FY2013
FY2012
FY2011
FY2010
FY2009
5,326 (Forecast)
5,800
5,561
5,136
4,976
Auto Production Trends for GermanyThousands of vehicles
Source: IHS Worldw ide Inc. Exclu ding trucks (as of J uly 2012)
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Asia (excluding Japan)
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 18
Business year in review
In Asia, vehicle production in the earlier part of the year to March 2012 was adversely affected by
the shortage of automotive parts following the March 2011 earthquake in Japan. The flooding in Thailand in October 2011 also had a large impact on manufacturing and sales at Japanese auto-
makers in Thailand. The overall growth rate in the region’s automotive markets is easing, partly
reflecting factors such as the scaling down of a vehicle subsidy program in China and monetary
tightening measures in India.
Results and outlook
Net sales decreased 7.4% to ¥76,188 million and operating income 62.8% to ¥3,581 million,
reflecting lower sales after the earthquake and flooding, along with higher raw material and
personnel costs across Asia.
During FY2012, we started construction of a new plant in Jakarta, Indonesia, to manufacture
seat belts, airbags and steering wheels. Construction proceeded on schedule and to budget, and
full production at the plant will begin in 2013.
We also completed construction of our new plant in Tianjin, our fourth plant in China after
Shanghai (two plants) and Changxing. Development of the Tianjin plant is our latest initiative
to meet growing demand in China’s domestic market, where we are strengthening our supply
network servicing automakers around Tianjin and securing more business opportunities from our
OEM customers located in the Northern China region.
(Photos from top) Tianjin, China; Shanghai,
China; Shanghai Technical Center
>> GLOBAL BUSINESS OVERVIEW: ASIA
Asia is central to Takata’s growth strategy, bringing significant
opportunities as motorization and growth in the region continue.
We have developed a responsive network in Asia’s emerging markets,
and with manufacturing and distribution hubs in eight countries outside
Japan, including China and India, Takata is soundly positioned for the future.
Asia: Operating incomeby quarter
Asia: Net sales by quarter Region as percentageof total sales
Millions of yen, rounded down
Millions of yen, rounded down
404
1,291
1,147
739
1Q
2Q
3Q
4Q 15.9%
FY2011: 16.6%
20,264
15,496
20,540
19,888
1Q
2Q
3Q
4Q
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Asia (excluding Japan) (cont.)
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 19
China
China surpassed the United States in
2009 as the world’s largest auto producer,
making it our key market in the Asia
region. China continues to achieve strong
growth in vehicle production, and is
forecast to grow further in 2013.
Close alignment with OEMs in the world’s largest market
An important initiative by Takata in China during the year was our establishment of a separate
entity—Takata (Shanghai) Vehicle Safety Systems Technical Center Co., Ltd. located in Shanghai—
with full responsibility for product development, design and evaluation. China is now the world’s
largest automobile producer, and global OEMs have undertaken large-scale investment in sales
networks and production plants, for local consumption and increasingly for export. Local OEMs are
also gearing up their businesses and have rapidly become competitive. By creating a fast-moving,
stand-alone technical center, Takata will be well positioned to collaborate directly with automakers
in China, and to produce products that are closely aligned with local market needs.
“We also completed
construction of our
new plant in Tianjin,
our fourth plant
in China after
Shanghai (two plants)
and Changxing.
Development of the
Tianjin plant is our
latest initiative to
meet growing demand
in China’s domestic
market, where we
are strengthening
our supply network
servicing automakers
around Tianjin and
securing more business
opportunities from
our OEM customers
located in the Northern
China region.”
>> GLOBAL BUSINESS OVERVIEW: ASIA
FY2013
FY2012
FY2011
FY2010
FY2009
17,135 (Forecast)
15,847
15,525
13,105
7,624
Auto Production Trends for ChinaThousands of vehicles
Source: IHS Worldw ide Inc. Exclu ding trucks (as of J uly 2012)
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R&D—the key to our leadership
in safety technology
Research & Development
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 20
1960Seat belt
First in Japan to commercialize
two-point seat belts
PRODUCT HISTORY
Forging new paths in automotive safety for six decades
Since beginning research into seat belts in 1952, Takata has been driven by the pursuit of
ever more effective automotive safety systems and products. In our relentless search for
progress we analyze real and potential accident scenarios from every perspective, exploring
in detail opportunities to both prevent accidents and minimize their impact on people’s lives.
Motivated by this strong sense of purpose, Takata continues to evolve today, advancing
with each groundbreaking achievement toward the realization of a safer future.
>> RESEARCH & DEVELOPMENT
Takata’s pedestrian airbag, designed to
help reduce the seriousness of injuries to
pedestrians as impact with a vehicle occurs
R&D has shaped the evolution of Takata since our establishment,
and it remains fundamental to our global business strategy. Our
heavy emphasis on R&D in every aspect of our business helps us
both respond to the diverse needs of different markets and set
the agenda for safety systems of the future.
Our integrated global R&D structure combines global develop-
ment programs with regional initiatives meeting specific customer
requirements, and encompasses the entire spectrum of safety
systems, from passive safety through to active safety. Our goal
is to facilitate groundbreaking innovation that pushes the limits of
current technology while at the same time bringing high quality,
reliable and robust safety features to the widest possible automo-
tive population. This means that our R&D success is measured as
much by creating innovative products as it is by developing cost-competitive safety products that
tap rapidly growing demand in emerging markets where pricing can be a key barrier to regulatory
change and consumer adoption.
Global R&D structure
Takata Group’s integrated R&D structure encompasses bases in Japan and the rest of Asia,
North America and Europe. Each of our key regions maintain a complete and independent R&D
structure with full engineering capabilities, and at the same time work together on a cooperative
basis to build Takata’s overall competi tiveness.
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(Millions of yen)
Japan 5,032
Americas 6,576
Europe 5,721
Asia 1,297
Adjustment (366)
Total 18,261
TAKATA DATA:
R&DInvestmentin FY2012by region
Research & Development (cont.)
In January 2011, we established Takata Shanghai Safety Systems Technical Center Co., Ltd.
from the spin-off of the Development and Design Division of Takata (Shanghai) Automotive Com-
ponent Co., Ltd., In China, now the world’s largest automotive market, it has become essential for
Takata to grow its business through the development, design and manufacture of products that
meet local market needs, and accordingly, we have established this new company in Shanghai to
handle local product development, design, evaluation and testing.
In late 2011 we completed construction of a new automotive sled test facility in Auburn Hills,
Michigan in the U.S. This facility uses a new type of sled to test automotive occupant safety restraint
systems for high-speed frontal and lateral impact conditions. It enables simulation that is much closer
to actual crash G forces, which follow an irregular pattern of sharp peaks owing to the presence of the
engine and other parts within the car. Takata’s network of advanced test sleds will be further enhanced
with the completion during 2012 of another cutting-edge facility in Echigawa, Japan.
In each region we work closely with automakers from the earliest stages of the technical devel-
opment process to ensure that commercialized products meet their respective specifications.
(1) Research and Development Division
This division focuses on areas including frontal impact passenger protection systems, side impact
and rollover passenger protection systems, pedestrian protection systems, motorcycle rider protec-
tion systems, crash avoidance and driver support systems. The Research and Development Division
pursues development of devices such as inflators and electronics through an integration of field
research, lab-based R&D, and protection safety system design. Another key area of the division’s
research is child restraint systems.
(2) Customer Relations and Engineering Division (product commercialization activity)
This division focuses on understanding customers’ needs and assessing the scale, characteristics
and potential of the market. Based on this assessment, the Research and Development Division
develops safety systems and related devices that can be presented to customers as specific prod-
uct examples. In this way, the accumulated experience and technical resources of the entire Group
can be used to create compelling customer proposals that not only meet existing needs but also
open the door to new possibilities in automotive safety.
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 21
>> RESEARCH & DEVELOPMENT
1987Airbags
First in Japan to commercialize
driver airbags
1977Child restraint systems
First in Japan to commercialize
child restraint systems
2003Motorized seat beltsFirst in Japan to commercialize
motorized seat belts
1962Crash test
First in Japan to conduct
public seat belt crash tests
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Research & Development (cont.)
Key initiatives in R&D
Impact biomechanics
By undertaking detailed analysis of actual traffic accident data from around the globe, we are
able to develop and test systems that reduce the risk of injuries or fatalities in the real world.
Our approach incorporates cutting-edge research into the biomechanics of crash injuries conducted
in collaboration with government agencies and leading research institutions such as The Children’s
Hospital of Philadelphia.
Proprietary new safety systems
Through our R&D activities we aim to develop proprietary new integrated safety systems, rather
than only engineering individual products or parts. Our approach encompasses passive safety,
which reduces the risk of injury to vehicle occupants in the event of an accident, and active safety,
in which detection systems help to prevent or reduce the severity of accidents. The scope of our
safety systems R&D covers all types of accident scenarios, including frontal impacts, side or rollover
impacts, collisions with pedestrians, and motorcycle impacts, along with groundbreaking applica-
tions in areas such as night vision, obstacle detection
and avoidance, and near-infrared spectroscopy sensors
to detect alcohol impairment.
Development of globally competitive productsWe aim to use technological advancements to maintain
the competitiveness of Takata Group, developing and
promoting around the world new safety systems based
on innovative ideas. In developing applications for the
technology we create, we present customers with
proposals from an early stage in their new vehicle plan-
ning process, based on the core systems and products
developed through our R&D activities.
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 22
(Photos from top) Front Center Airbag;
Inkjet print seat belt
>> RESEARCH & DEVELOPMENT
2006Motorcycle airbags
First in world to commercialize
motorcycle airbags
2012Three-point seat belt
First in world to develop fully
detachable three-point seat belt
2010Airbelts
First in world to commercialize
safety Airbelts
2005Twin bag systems
First in world to commercialize
twin bag systems
Pedestrian airbag
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Research & Development (cont.)
Takata’s ability to create innovative safety products
from one year to the next is made possible through
the passion, creativity, and attention to detail of its
people. As automotive technology rapidly evolves
and global safety regulations advance, Takata’s
testing division is tasked with devising and optimizing
product protocols that validate the performance and
quality of products.
Echigawa—Japan’s largest
The Echigawa Plant, situated in Shiga Prefecture,
about 50km (31 miles) north of Kyoto and just a short
drive from Takata’s first seat belt factory, is home to
Japan’s most comprehensive testing facilities. Within
this complex, which has more than 500 employees, testing engineers work in collaboration
with other business divisions, including seat belt manufacturing, parts procurement, R&D,
and prototype creation.
The scale of the testing facilities at Echigawa contrasts with the size of Takata’s
products, most of which can be held comfortably in one hand. This scale helps Takata to
conduct more detailed testing, to better meet customer requirements and compete in the
global arena.
Advanced testing facilities
Teams of engineers, armed with state-of-the-art equipment, spend their days conducting
highly specific tests, tailored to each product and each vehicle model fitted with Takata
products. Their largest piece of testing equipment is the crash test sled. Sled testing allows
engineers to reproduce the conditions of a full-scale crash test in a controlled environment
at a fraction of the cost of an actual vehicle crash test. Although most of the tests are
conducted in less than the blink of an eye, they provide engineers with detailed insight into
the performance of Takata’s products. This is achieved with the help of numerous sensors
and sophisticated high-speed cameras, which allow engineers to capture and analyze the
vital milliseconds of each event.
CLOSEUP: ECHIGAWA TEST CENTER 1/3
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 23
Takata’s global R&D program uses advanced technology and materials tocontinually extend the frontiers of automotive safety. Even more important than this
technology, however, are the people that turn great ideas into safer transportation.
This Closeup feature takes a behind-the-scenes look at the Echigawa Plant in
Shiga Prefecture, Japan, where teams of dedicated engineers are working to
realize Takata’s dream of reducing fatalities from traffic accidents to zero
“The scale of the testing
facilities at Echigawa
contrasts with the size
of Takata’s products,
most of which can be
held comfortably in
one hand. This scale
helps Takata to
conduct more detailed
testing, to better meet
customer requirements
and compete in the
global arena.”
An engineer explains the role of
test dummies
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The use of crash test dummies is fundamental to
servo sled testing. Despite their outward similarity
to simple fashion manikins, they are actually sophis-
ticated pieces of engineering. The dummies vary in
weight, size and proportion depending on the human
form they simulate, and each dummy incorporates
hundreds of sensors, designed to capture informa-
tion on impact forces, acceleration, position and
other such data. Close inspection of a typical adult
male dummy reveals that the body is of a humanlike
weight, with tough, rubbery skin.
Evolution of testing solutions
For some products, testing goes beyond the core
issues of safety, performance and quality to incorporate other aspects of the consumer
experience. For example: what does it sound like? The increase in hybrid and electric
vehicle technology has both changed and reduced the sounds generated by some
vehicles, prompting greater focus on the sounds emitted by components such as seat belt
buckles. Sound test engineers at the recently upgraded sound laboratory say that it’s not
as simple as reducing noise: they aim to minimize any irritating tones, and consider howparticular sounds, such as the definitive click of a seat belt buckle or the whirr of a seat
belt retractor, contribute to safety.
CLOSEUP: ECHIGAWA TEST CENTER 2/3
Research & Development (cont.)
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 24
“For some products,
testing goes beyond
the core issues of
safety, performance
and quality to
incorporate other
aspects of the
consumer experience.
The increase in hybrid
and electric vehicle
technology has both
changed and reduced
the sounds generated
by some vehicles,
prompting greater
focus on the sounds
emitted by components
such as seat belt
buckles.”
Preparing the test subjects
Takata is constantly working to diversify its testing solutions
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A global working culture
A visit to the packed dining hall at lunchtime shows
just how global Takata’s operations have become.
Despite being in a semi-rural area in heartland
Japan, there is a real diversity of people—local and
international, male and female, new graduates and
experienced veterans. These people typify Takata’s
global working culture, chosen not only for their
technical abilities, but also for their ability to present
and defend new ideas.
The animated conversations that take place in
the dining hall are part of what differentiates Takata
around the world. Engineers at Takata are given the
opportunity to redefine the industry, to be inventive,
and to focus on details that others might consider irrelevant. This kind of work environ-
ment has enabled Takata to develop people who are extremely passionate about their
work—even at lunchtime—and this has helped the company to consistently produce
technological breakthroughs. Over the years, some of Takata’s ideas have been greeted
skeptically by customers in their early stages, but in many cases these ideas have
eventually become the industry standard.
Future expansion
Takata’s test facilities are evolving as the scope of protection systems expands. Adjacent
to the main testing laboratories, construction is well underway on Takata’s new research
facility, due to be completed during 2012. The new facility will feature next-generation
testing equipment, including a new crash sled that incorporates the latest advances
in crash scenario simulation—and judging by Takata’s track record, it will contribute
to further innovation in the world of transportation safety systems.
CLOSEUP: ECHIGAWA TEST CENTER 3/3
Research & Development (cont.)
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 25
“A visit to the packed
dining hall at lunchtime
shows just how global
Takata’s operations
have become. Despite
being in a semi-rural
area in heartland
Japan, there is a real
diversity of people—
local and international,
male and female,
new graduates and
experienced veterans.
These people typify
Takata’s global working
culture, chosen not
only for their technical
abilities, but also for
their ability to present
and defend new ideas.”
Takata’s new research facility at
Echigawa, due to be completed
during 2012
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Global Regulations
Regulation as a driver of growth
A key driver of growth in the automotive safety products and systems industryis a general trend toward tougher safety regulations. New safety directives are
being issued in major markets worldwide, and enhanced safety standards are
also being progressively introduced in emerging markets.
EXAMPLES OF RECENT REGULATORY DEVELOPMENTS INCLUDE:
The Americas
U.S.
Revision of Federal Motor Vehicle Safety Standard (FMVSS) 214 This regulation for light vehicles (less than or equal to 3,855kg) requires a minimum percentage of
all vehicles marketed to be fitted with enhanced side impact protection (the evaluation now includes
oblique pole tests in addition to moving deformable barrier tests), increasing yearly from 20% from
September 1, 2010 to 100% in 2014.
Federal Motor Vehicle Safety Standard (FMVSS) 226 (newly established)
Established on January 13, 2011, FMVSS226 is a regulation aimed at reducing the incidence of
ejections of vehicle occupants through side windows in collisions. This regulation (for all passenger
vehicles, light truck vehicles and buses less than or equal to 4,536kg) will require advanced side
impact protection system that covers both front and rear seats, increasing yearly from 25% from
September 1, 2013 to 100% in 2016.
Insurance Institute for Highway Safety (IIHS) Vehicle ratings,
Frontal Small Overlap testing (from 2012) (newly established)
IIHS Vehicle ratings will adopt Frontal Small Overlap testing, and its rating results will be published in
the middle of 2012. The test will be carried out with an adult male dummy in the driver’s seat at an
impact speed of 64km/h, and an overlap rate of 25% between the driver side of the vehicle and the
barrier. The result will be indicated under a four-scale rating by criteria of dummy injury measures,
structural integrity, and more subjective kinematics and restraints.
LATIN AMERICA
LATIN NCAP (from October 18, 2010)
Established on October 18, 2010, the Latin New Car Assessment Program is based on Euro NCAP,
although its scope of evaluation is limited to offset frontal impact tests.
BRAZIL
CONTRAN Resolution 311/09 (established, April 7, 2009)
This regulation makes it mandatory for passenger and light commercial vehicles to be fitted with
front seat airbags. It is being applied progressively to all new types of vehicles from 2011 through
2013 and to all vehicles from 2010 through 2014.
CONTRAN Resolution 221/07 (established January 30, 2007)
This regulation introduces frontal impact criteria (an offset deformable barrier test similar to that
required by European regulations or a full-wrap rigid barrier test similar to that required by US
regulations). New types of vehicle must comply with this regulation from January 2012, while current
production models will be required to comply from January 2014.
ARGENTINA
Government-industry agreement on automotive safety standards*(effective November 16, 2009)
This regulation and agreement makes it mandatory for passenger and light commercial vehicles to
be fitted with frontal airbags. It is being applied progressively to all vehicles from 2010 through 2014.
BRAZIL
CONTRANResolution 311/09(established, April 7, 2009)
I–New car projects,local or imported:
Implementation Penetrationdate rate
January 1st 2011 10%
January 1st 2012 30%
January 1st 2013 100%
II–Cars under production,local or imported:
Implementation Penetration
date rate
January 1st 2010 8 %
January 1st 2011 15%
January 1st 2012 30%
January 1st 2013 60%
January 1st 2014 100%
ARGENTINA
Government-industryagreement on automotivesafety standards*
Implementation Penetrationdate rate
January 1st 2010 10%
January 1st 2011 15%
January 1st 2012 30%
January 1st 2013 60%
January 1st 2014 100%
*Acta Acuerdo ANSV-SICPYME- ADEFA-CIDOA de Fecha 16 deNoviembre de 2009
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Global Regulations (cont.)
Europe
European New Car Assessment Program (Euro-NCAP)
On July 13, 2010, Euro NCAP announced the start of a new reward system known as Euro-NCAP
Advance for emerging safety technologies such as lane departure warning, blind spot monitoring,
attention assist, autonomous braking and emergency warnings.
Japan
Revision of the Road Traffic Law (effective June 1, 2008)
This revision makes it legally mandatory to wear seat belts in the rear passenger seats.
Revision of Technical Standards for Seat Belts
(effective October 1, 2006, completely adopted from July 1, 2012)
This revision makes it legally mandatory to equip 3-point seat belts with retractors for all seats in
passenger vehicles not exceeding 9 seats in capacity or 3,500kg in weight.
Revision of Japan New Car Assessment Program (JNCAP) (from FY2011)
This five-level scale rating for overall impact safety performance, which takes effect from FY2011,
will be based on full-wrap frontal impact tests, offset frontal impact tests, side impact tests, rear
impact tests, pedestrian protection tests and evaluation result of seatbelt reminder equipment.
In the pedestrian protection section, an additional leg form test will be included.
Asia
CHINA
Revision of China New Car Assessment Program (C-NCAP) (from latter half of 2012)
The test protocol for C-NCAP is scheduled to be revised from the latter half of 2012. The testing
speed for offset frontal impact tests will be increased to 64km/h from the current 56km/h, and
rear seat female dummy injury tests will be newly included in the assessment. C-NCAP will also
be expanded to include an evaluation of advanced safety systems equipment such as Safety Belt
Reminder (SBR), Side/Curtain Airbags, ISOFIX anchorages and Electrical Stability Control (ESC).
INDIA
Frontal Impact Standard – AIS-098/
Side Impact Standard – AIS-099
The government of India is planning to adopt frontal and side impact requirements as part of its
regulations. The effective date will be around 2016 for new types of vehicles and around 2019 forcurrent production models. The technical standards, AIS-098 (frontal impact) and AIS-099 (side
impact), are already available and are similar in content to European regulations.
ASEAN
ASEAN NCAP (from 2012) (newly established)
Established in 2012, the ASEAN New Car Assessment Program is based on Euro NCAP, although
its scope of evaluation is limited to offset frontal impact tests. The rating result is published
separately as adult occupant protection and child occupant protection in the latter half of 2012.
INDUSTRY NEWS
NCAP(New CarAssessmentProgram): An industry-run
program designed to
provide consumers with
information on the safety
of vehicle types, based
on a star rating system.
NCAPs have been adopted
in Japan, the U.S., Europe,
China, South Korea,
Australia, South America,
and, as of 2012, ASEAN.
The programs, methods
and criteria of tests
vary between regions.
Unlike safety regulations
issued by government
authorities, NCAPs have
no legal force, but their
tests often involve stricter
criteria than are required
by government safety
standards, making them
important arenas fortechnological competition
between automakers.
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Takata wins GM Supplier of the Year Awardfor the second year running
General Motors recognized Takata as one of its best global automotive suppliers at the 2011
General Motors Supplier of the Year award during the 20th annual awards presentation held at the
Detroit Institute of the Arts. This is the second year running that Takata has received the Supplier of
the Year Award, after it made history in 2010 by becoming the first individual supplier to receive the
award in all three safety product categories.
The award recognizes the significant contributions of GM’s suppliers in 2011 as part of the
company’s global product and performance achievement.
WEC team TOYOTA Racing chooses Takatafor full harness seat belts
In January 2012, Takata became official supplier of full harness seat belts to Toyota
Motor Corporation’s TOYOTA Racing, competing in the FIA World Endurance
Championship (WEC). This world endurance racing championship features an
eight-race schedule that includes the legendary Le Mans 24 Hours race and an
event at Japan’s Fuji International Speedway.
The selection of Takata as official supplier reflects the confidence racing car
drivers have in the safety, weight efficiency and driver operability of Takata’s full harness seat belts.
It also showcases Takata’s commitment to being at the forefront of innovation, in this instance
alongside the sophisticated hybrid racing propulsion system of Toyota’s WEC vehicles.
Takata acquires two subsidiaries
of safety systems manufacturer BAEIn March 2012, Takata completed the acquisition of two BAE subsidiaries, BAE Systems Safety
Products Inc. (based in Pompano Beach, Florida, USA), and Schroth Safety Products GmbH
(based in Arnsberg, Germany). The two companies manufacture and market a range of safety
systems-related products, including seat belts for airplanes and helicopters, passenger safety
equipment for military vehicles, along with seat belts and HANS (head and neck support) devices
for motor sport. Through these acquisitions, Takata aims to strengthen its business in motor sport
and enter the aircraft safety arena, leveraging technological expertise gained in automotive safety
systems to expand business in new areas.
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 28
Takata in the News
FY2012: Making headlines in the pursuit of safety
During the year to March 31, 2012 Takata made headlines with importantnew safety product developments, motor sport partnerships, and industry
awards in many areas of our business. Some highlights are listed below.
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Takata wins Ford World of Excellence Award
At Ford Motor Company’s annual supplier event, Takata received the prestigious
“Gold” World of Excellence Award for Automotive Electronics Excellence, for its
restraints electronics units produced in Shanghai, China. Takata was one of just 12
suppliers to achieve the “Gold” distinction, the highest level achievable, for demon-
strating superior quality, delivery and cost performance.
Ford president and CEO Alan Mulally thanked all of Ford’s suppliers for con-
tinuing to embrace the ONE Ford mindset while Tony Brown, Ford’s group vice
president, Global Purchasing, recognized the hard work and dedication of all its suppliers.
Robert Fisher, Executive Vice President, Takata Corporation said, “Receiving both the Ford
and GM awards tells us we are moving in the right direction, and that helps improve automotive
safety worldwide.”
Japan’s first ISOFIX child seat promotes correct fitting
Incorrect fitting of child seats has been recognized as a problem around the globe, with research in
Japan finding that more than 60% of child seats are not fitted optimally. A large proportion of incor-
rect fitting arises from insufficient tightening of the vehicle seat belt. This issue is being addressed
internationally through the adoption of the ISOFIX standard connector system, which eliminates the
need to adjust seatbelt tension. Takata has contributed to ISOFIX global standardization since its
early stages, and in July 2011 Takata launched the takata04-i fix, the first ISOFIX child seat in Japan
to meet new ECER 44/04 European standards.
Detachable 3-point belt system
Motor homes and other multi-purpose vehicles pose special challenges for occupant safety. Pas-
sengers need to be strapped in safely while on the road and mobile, but when parked up to sleep,
or when changing the seating configuration for different loads, seat belts can be an obstruction.
Until recently most rear and utility seats in motor homes have been fitted with two-point lap belts.
However, new domestic technical standards in Japan from July 2012 require that all rear seats have
three-point seat belts.
In February 2012, Takata addressed these issues with the launch of the world’s first fully detach-
able three-point seat belt, detachable at both shoulder anchor and lap anchor with a simple one-
touch operation. This not only permits utility seats to be easily changed from one mode to another,
but also removes nearly the entire lap belt assembly from seats in the full flat position, increasing
passenger comfort while enabling all occupants to enjoy the protection of three-point seat belts.
TA K ATA C O R P O R AT I O N A N N U A L R E P O R T 2 0 1 2 29
Takata in the News (cont.)
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Maximizing innovation tominimize environmental impact
In pursuing our core business of protecting human life, we are guided by a fundamental
respect for nature, the source of all life. Our aim is to minimize the environmental impact
of Takata’s business activities, and to use innovation in R&D, manufacturing and distribu-
tion to improve environmental performance at each stage of our products’ lifecycles.
At the design stage, we are developing lighter, more compact products that reduce
the use of raw materials while contributing to vehicle fuel efficiency. At our production
facilities, we have adopted environmental management systems to conserve energy and reduce
water consumption, while reducing and recycling waste. We are also committed to minimizing the
use of restricted and hazardous substances in order to curb the long-term impact of our products
after their end of their useful lives.
Environmental Management System (ISO 14001)
We set quantitative environmental targets at all of our plants and facilities, encompassing energy
conservation, waste material reduction, recycling and more. The majori ty of Takata’s plants are ISO
14001 certified, and all employees and management are involved in ongoing environmental educa-
tion and training initiatives.
Highland Industries Achieves 100% Recyclable StatusHighland Industries, Inc., a leader in industrial and automotive textile product solutions, and affiliate
of the Global Takata Group, completed an 18-month environmental stewardship project to become
a landfill waste free manufacturing company. Highland formed a partnership with ICE Recycling
(Industrial Conservation Engineering) to develop a systematic approach to reaching the goal of
“landfill free”, with ICE providing training for Highland’s employees on the proper ways to collect and
segregate waste. Under the system, segregated waste is compacted and shipped to locations for
recycling into a variety of end products—such as carpet fibers, flower pots and composite lumber.
The “Landfill free” goal was reached on September 30, 2011, when the last dumpster of plant waste
was transported to the local landfill.
The company’s plants have received awards for their environmental achievements, including The Honda Green Factory Award, North Carolina Waste Reduction Award, Forsyth County Special
Environmental Company of the Year Award and Special Recognition Award from the South Carolina
State Treasurer Office.
REACH
REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) is an EU (European)
regulation that makes companies responsible for assessing and managing the risks posed by
chemicals and providing appropriate safety information to users.
Companies that fail to comply with REACH are not allowed to produce and distribute chemicals
in the EU. The regulation also