TAKATA, Documento Oficial

Takata Corporation
Annual Report
2012
>> COVER >> CONTENTS >> FINANCIAL SECTION
Contents
Takata Principles
Profile 2
Financial Highlights
Message from the President
Total Safety Systems
Global Business Overview

Japan
10
12
The Americas
14
Europe
16
Asia
18
Research & Development
20
Global Regulations
26
Takata in the News
28
Environment
30
Society
31
Corporate Governance
32
Board of Directors, Corporate Auditors,

and Executive Officers
34
Financial Section
35
Investor Information
72
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.
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
>> COVER >> CONTENTS >> TAKATA PRINCIPLES >> FINANCIAL SECTION
Our mission - your safety.
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.
>> COVER >> CONTENTS >> PROFILE >> FINANCIAL SECTION
Profile
Takata Corporation is one of the worlds leading automotive safety systems
companies, supplying nearly all the worlds 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 Japans 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.
>> COVER >> CONTENTS >> FINANCIAL HIGHLIGHTS >> FINANCIAL SECTION
Financial Highlights
Takata Corporation and Subsidiaries
(Millions of yen except where indicated)
Fiscal years ended March 31
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
Total assets
155,312
150,789
145,379
175,200
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
48.5
47.6
45.5
46.0
51.6
7.6
12.0
4.7
(4.6)
13.0
15.4
10.9
28.3
(9.0)
7.8
Capital adequacy ratio (%)

Return on equity (%)
Price-to-earnings ratio (times)
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 no
outstanding 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 as
there were no outstanding potential shares of common stock.
Net sales
Operating income
Net income
Millions of yen
Millions of yen
Millions of yen
2012
2011
2010
2009
2008
382,737
13,618
2012
2011
390,876
385,499
2009
515,857
2011
26,818
2010
350,914
18,237
2010
14,654
2,845
2008
11,937
2012
2009
36,732
6,942
(7,319)
22,878
2008
Total assets
Net assets per share
Basic net income per share
Millions of yen
Yen
Yen
2012
329,718
2012
2011
323,928
2011
2010
2009
2008
330,040
315,352
339,010
2010
2009
2008
1,924.80
1,855.48
1,805.06
1,768.98
2,145.79
2012
143.55
2011
219.31
2010
2009
2008
84.62
(89.40)
280.89
>> COVER >> CONTENTS >> MESSAGE FROM THE PRESIDENT >> FINANCIAL SECTION
Message from the President

2012 marks 80 years since our founding. Under our new Global Vision
One World One Takata we are focused on becoming the worlds
leading global supplier of automotive safety systems.
Recovering from
natural disasters
Takatas 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 own
factories were outside the disaster zones, disruptions to the
wider supply chain brought production at many automakers 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
PRESIDENT AND COO
our exposure to customers severely constrained by the natural disasters, this is a noteworthy achieve-
Shigehisa Takada
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 Takatas 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 end
of the year was 48.5%, our credit rating from JCR remains at Aas 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 compensate 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 (cont.)
Growth strategy focuses on most promising markets
We are deeply
The global automotive safety parts market is valued at approximately 2 trillion and Takata is cur-
committed to growing
rently number two in the industry worldwide with a share of around 20%. Our goal is to become the
our business in China
global industry leader. Our current medium- to long-term management plan is to achieve Group sales
with both domestic and
of 500 billion and operating margin of 10%, and to achieve this we are focusing our resources on
global automakers,
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 worlds largest car market
and are aligning our

operations closely with
the unique needs of
this 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 essentially 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.
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.
Creating a truly global organization and outlook
For automakers,
Within our industry, the term globalization means more than doing business in global markets. For
globalization heralds
automakers, globalization heralds a dramatic shift in production capacity from mature markets to
a dramatic shift in
emerging economies, a strong trend toward international product standardization, and an increasing
production capacity
number of major local automakers looking beyond their own borders. As a result, auto parts manu-
from mature markets to
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-
emerging economies,
a strong trend toward
international product
petitiveness. We now have unified international teams with Associates aligned across our entire value
standardization, and an
chain, from development through to sales, so that we can address the specific needs of each global
increasing number of
automaker in each of their markets. Each value chain division has strategic priorities to pursue. For
major local automakers
example, In R&D we are focusing our new product development on crash avoidance and electronic
looking beyond their
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
own borders.
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 management 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 existing 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.
Championing safety: our evolving role
In some respects, our
Takatas growth as a pioneer in the automotive industry has been founded on providing safety prod-
terms of engagement
ucts. In some respects, our terms of engagement with the automotive industry have been relatively
with the automotive
simple: automakers built cars, and we supplied safety components. However, today society and our
industry have been
industry are undergoing substantial change, influenced by factors such as the stagnation of mature
relatively simple:
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
automakers built
cars, and we supplied
safety components.
reached the point where we can contribute to the safety of the automotive market and society on a
However, today society
broader front. This means carefully considering changes in the communities we serve. For example,
and our industry are
thirty years ago we played a pioneering role in promoting child seats in high-growth Japan. Now, we
undergoing substantial
need to consider what kind of safety systems are needed by the rapidly aging global population,
change, influenced
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
by factors such as
the stagnation of
mature markets,
emerging markets that are undergoing rapid motorization, giving us the opportunity to make use of
the rapid growth of
skills we have learned in mature markets. The same applies in environmental management, where
emerging economies,
we have adopted reduce, reuse, recycle programs with significant results in many of our plants.
the emergence of
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 inspirational 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
electric vehicles
and other responses
to environmental
concerns, and
heightened awareness
have no interest whatsoever in dwelling on our past achievements. The challenges and opportunities of
of safety and security
the future are far too great, and I will be working alongside our 37,000 group employees to ensure that
in societies around
Our missionyour safety continues to be a guiding force for safety in the world of transportation.
the world.
We very much appreciate your ongoing interest and support.
Shigehisa Takada
President
June 2012
>> COVER >> CONTENTS >> TOTAL SAFETY SYSTEMS >> FINANCIAL SECTION
Total Safety Systems

Takatas advanced safety technology:
Surrounding the lives it protects
1
Our product range encompasses the
full spectrum of passive and active
4
1
automotive safety technology, and

the results of our advanced research
and relentless attention to detail can
3
2
3
be found throughout the anatomy of

a carhelping to protect occupants
and even pedestrians, and to reduce
the impact of traffic accidents on
individuals and on society.
Seat belts
Airbag systems
Since commercializing Japans first seat belts in 1960, we have
Takata launched the first airbags in Japan in 1987. Since then
continued to improve the effectiveness and comfort of seat
we have continued to enhance our capabilities in the develop-
belts through innovation in areas such as textiles and weaving
ment, design and production of airbag systems and products,
technology. Recently we modified our motorized seat belt to
from airbag textiles to hazard detection control units and inflator
provide enhanced comfort and safety. In addition to automati-
technology, and today most of these operations are carried
cally tightening to restrain vehicle occupants when pre-crash
out in-house. In addition to driver and passenger airbags, side
sensors detect risk of collision, the new comfort function reduces
airbags, curtain airbags, and knee airbags that protect the legs
the pressure exerted by the seatbelt during normal driving, hold-
of front seat occupants, we have commercialized innovative
ing vehicle occupants in position during sudden braking or sharp
products such as the D-shape curtain airbag, which protects
turns. In 2010 we became the first in the world to commercialize
the head as well as helping prevent passenger ejection, and a
the airbelt, a new type of seat belt that inflates like an airbag at
far-side airbag that inflates between the left and right seats in
the time of impact. We also recently developed new state-of-
the event of a side collision to control the lateral movement of
the-art inkjet printing technology which allows us to create seat-
vehicle occupants. In 2009 we marked the launch of our Vacuum
belt webbing with patterns, words or logos in a variety of colors.
Folding Technology (VFT) which uses a proprietary packing
1 Driver seat belts (Motorized seat belts)

2 Passenger seat belts (Motorized seat belts)
3 Rear seat belts
process to reduce the size of airbags by up to 50% compared

to conventional airbags, with 35% less mass.
1 Driver airbags
2 Passenger airbags (Twin bag systems)
3 Knee airbags
4 Side airbags
5 Curtain airbags
6 Pedestrian head protection airbags
>> COVER >> CONTENTS >> TOTAL SAFETY SYSTEMS >> FINANCIAL SECTION
Total Safety Systems (cont.)

27.6
28.7
Other
Seat belts
Sales
by product
category
(FY2012)
43.6
6
%
Airbags
Other
TAKATA INNOVATION
This category includes steering wheels, electronic devices such as vehicle occupant sensors, collision 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 manufacturer with a strong track record that includes installing the worlds 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.
1 Steering wheels
2 Interior trim
3 Child seats
4 Satellite sensors
5 Electronic control units (ECUs)
6 Seat weight sensors (SWSs)
7 Pop-up hood devices
8 Lane departure warning systems
...the results of our advanced research and

relentless attention to detail can be found
throughout the anatomy of a carhelping
to protect occupants and even pedestrians,
and to reduce the impact of traffic accidents
on individuals and on society.
Front Center Airbag

From the passengers
perspective, 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 collisions
from 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 the
drivers seat, and is also
expected to provide benefit
in rollover crashes.
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW >> FINANCIAL SECTION
Global Business Overview
COUNTRIES1
The Americas
Japan
America
Brazil
Mexico
Uruguay
8/1/4
1,500
18/5/18
21,500
Our global headquarters is located in
Takatas regional headquarters for the
Tokyo, and in Japan Takata has eight
Americas is in Auburn Hills, Michigan.
manufacturing plants, two of which
We have five plants and three R&D
are located in the southwest island
facilities in the U.S. and nine plants in
of Kyushu, and one R&D facility. A
Mexico. In South America, we have
new cutting-edge servo sled test
three plants in Brazil, and a recently
facility is currently under construction
completed a plant in Uruguay. We
at our R&D facility, located in Shiga
currently have approximately 21,500
Prefecture. We have approximately
employees in the Americas.
PLANTS/R&D FACILITIES2/
CONSOLIDATED SUBSIDIARIES
EMPLOYEES3
MARKET SUMMARY
Japan
1,500 employees in Japan.
REGION NET SALES
REGION OPERATING INCOME
Millions of Millions
yen
of yen
yen
of yen
2012
2012 102,265 102,265
2011
2011
2010
2010
2009
2009
2008
2008
112,882 112,882
106,573 106,573
124,925 124,925
156,949 156,949
yen
of yen
2012
4,106
2012
2011
2011
2010
2010 6,699
2009
1,174
2009
2008
5,045
2008
yen
2012
2012
153,135 153,135
2012
2012
2011
2011
157,464 157,464
2011
2011
2010
2010
2010
2010 9
2009
2009
2009
2009
2008
2008
2008
2008
143,643 143,643
154,923 154,923
237,946 237,946
yen
yen
of yen
4,106
2012
2012
2011
2011
2010
2010
1,174
2009
2009
5,045
2008
2008
9,262
6,699
9,262
128
128
2012
2012
2011
2011
(1,699) (1,699)
2010
2010
(3,021) (3,021)
2009
2009
2008
2008
3,914
3,914
14,159 14,159
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
10
37,946
14,159
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW >> FINANCIAL SECTION
Global Business Overview (cont.)
Europe
Czech Republic Russia
Germany
South Africa
Morocco
Poland
Romania
Asia (excluding Japan)
15/4/22
11,500
China
India
Indonesia
Korea
Malaysia
Philippines
Singapore
Thailand
12/4/14
2,000
Takatas regional headquarters for
In the Asia region we have eleven
Europe is located in Aschaffenburg,
plants and three R&D centers in
Germany. We have fifteen factories
seven countries, including new plants
and four R&D facilities in the region,
in Indonesia and Tianjin and India,
and a new plant in Russia recently
and a new Technical Center
commenced operations. We have
in Shanghai, China. We have
also established a new plant in
approximately 2,000 employees in
Morocco to supply local and regional
the region excluding Japan.
COUNTRIES1
PLANTS/R&D FACILITIES2/
CONSOLIDATED SUBSIDIARIES
EMPLOYEES3
MARKET SUMMARY
OEMS mainly in Southern Europe.

We have a total of around 11,500
employees in the region.
2012
116,635
2012
2011
108,477
2011
2010
98,136
2010
2009
2008
112,132
144,472
2011
2010
2009
2008
2009
2008
76,188
82,320
72,750
68,295
73,709
REGION OPERATING INCOME
Millions of yen
Millions of yen
2012
REGION NET SALES
Millions of yen
Millions of yen
5,785
4,117
1,391
(3,383)
5,695
2012
2011
2010
2009
2008
3,581
9,625
8,660
7,245
9,319
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
11
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW: JAPAN >> FINANCIAL SECTION
Japan
Takata is an acknowledged pioneer in Japans 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 Takatas
global headquarters, playing a central role in group management, cost control
and product development strategy.
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 the
year, 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, Japans 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, supported 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.
Japan: Net sales by quarter

Millions of yen, rounded down
Japan: Operating income

by quarter
(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
Region as percentage
of total sales
1Q
18,747
2Q
3Q
1Q
26,454
28,184
(727)
1,820
2Q
1,725
3Q
18.6%
FY2011: 19.9%
4Q
28,881
4Q
T
A K ATA C O R
POR
AT I O N
N N U A L R E P O R T 2 0 Americas:
12
Americas:
Net
sales
byA quarter
by quarter
1,289
Operating income
of total sales
12
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW: JAPAN >> FINANCIAL SECTION
Japan (cont.)
Takata wins 2011 Good Design award for worlds first Airbelt
At Takata we have
The Good Design awards assess not only aesthetics but also how items contribute to better
been putting in place
lifestyles and society. In October 2011, Takata won a Good Design award for the worlds first com-
an operating structure
mercialized Airbelt for passenger vehicles, with judges recognizing the innovative design approach
to enable us to align
and Takatas active ongoing pursuit of higher levels of passenger safety.
more closely with our
Launched commercially in 2010, Takatas Airbelt features an airbag built into the webbing of
the seat belt, which on impact expands over the occupants 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.
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.
Japan
Auto Production Trends for Japan
Despite disruptions from the March 11

disaster, Japans vehicle production was
restored more rapidly than anticipated,
and surpassed pre-quake levels by
September 2011.
Thousands of vehicles
FY2013
FY2012
8,882 (Forecast)
8,575
FY2011
8,294
FY2010
8,320
FY2009
9,275
Source: IHS Worldwide Inc. Excluding trucks (as of July 2012)
Auto Production Trends for North America

of vehicles
T A K A T A C O R P O R A T I O N A N N U A L R E P O R T 2 0 Thousands
12
FY2013
13
14,822 (Forecast)
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW: THE AMERICAS >> FINANCIAL SECTION
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.

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 natural
disasters 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 opportunity 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
Japan:this
Net
sales
by quarter
income
OEMs,
broad
change
in product mix, along withJapan:
reducedOperating
production after
the natural
by quarter
disasters, affected Takata Americas overall performance.

Results were also affected by a oneMillions of yen, rounded down
time charge to warranty claims and legal fees associated with an ongoing investigation by the
18,747
1Q
1Q
U.S. Department of Justice.

2Q
26,454
(727)
1,820
2Q
Performance at Takata began to improve in the fourth quarter of the year, with Honda and
3Q
3Q
28,184 levels, and this improvement
Toyota
returning to full production
is expected to extend1,725
into the
following
year.
4Q
28,881
Americas: Operating income

by quarter
(Photos from top) Steering wheel

production, Brazil plant; Auburn Hills,
Michigan, U.S.; Servo sled facility,
Auburn Hills, Michigan, U.S.
18.6%
FY2011: 19.9%
1,289
4Q
Americas: Net sales by quarter
of total sales
of total sales
1Q
35,550
1Q
2Q
36,506
2Q
3Q
36,866
3Q
(334)
36.7%
950
(2,297)
FY2011: 37.0%
4Q
Europe: Net sales by quarter
44,215
4Q
1,809
Europe: Operating income

by quarter
T
A K AofT A
O R P down
O R AT I O N A N N U A L R E P O R T 2 0 1 2
Millions
yen,Crounded
of total sales
14
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW: THE AMERICAS >> FINANCIAL SECTION
The Americas (cont.)
We made two
New servo sled takes safety system testing

to frontier levels of accuracy
important acquisitions
Takatas new state-of-the-art servo sled facility in Auburn Hills, Michigan, in the United States began
during the year as
operations in the summer of 2011, bringing airbag and restraint testing in the Americas to a new
part of our drive to
level of sophistication. Technical advances in the servo sled enable Takata to shorten the product
be a global leader in
development cycle by creating a more precise correlation between servo sled test simulations and
transportation safety...
actual full-vehicle crash tests run by OEMs. For example, the new sled can simulate vehicle nosediving under heavy braking, enabling engineers to develop a more accurate picture of occupant
movement in collisionsand helping Takata provide an even higher level of service to local and
international automakers.
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.

FY2013
FY2012
8,882 (Forecast)
8,575
FY2011
8,294
FY2010
8,320
FY2009
9,275
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.
FY2013
14,822 (Forecast)
FY2012
13,719
FY2011
FY2010
12,425
9,782
10,842
FY2009
Auto Production Trends for Germany

15
FY2013
5,326 (Forecast)
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW: EUROPE >> FINANCIAL SECTION
Europe
Takatas 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.

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 effect
from 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.
Japan:
Net
sales
by quarter
Japan:
Operating
income
Growth
in the
Chinese
automotive market continued
to influence
outcomes
in Europe, with
by quarter
manufacturers of premium European brands in particular

Millions benefiting
of yen, roundedfrom
down further strong export
sales to China.
1Q
18,747
1Q
26,454
2Q
28,184
3Q
(727)
1,820
2Q
Results and outlook
of total sales
1,725
3Q
Net sales increased 7.5% to 116,635 million, led by sales to German automakers. This sales
18.6%
FY2011: 19.9%
28,881
1,289
4Q
growth
contributed to a 40.5%
increase in operating4Qincome 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 market.
ForemostNet
among
these
is the ongoing sovereign
debt crisis
and financial
market volatility,
Americas:
sales
byrisks
quarter
Americas:
Operating
income
Millions ofcaused
yen, rounded
which
a down
substantial slowdown in vehicle sales
the second half of the year under review.
byinquarter
Raw material prices are also a concern. On the positive side, regulatory developments in different
1Q
35,550 for higher sales
1Q
(334) safety products, and
European
nations are providing impetus
of airbags and other
we
We are tak2Q are building even closer relationships
2Qautomakers throughout Europe.
36,506 with leading
950
ing
further steps to optimize our pricing,
cost structure
and manufacturing
footprint, and expect to
3Q
3Q
(2,297)
36,866
44,215
Europe: Net sales by quarter

(Photos from top) Aschaffenburg, Germany;

R&D center, Berlin, Germany; Takata display
at Frankfurt Motor Show
36.7%
FY2011: 37.0%
compete strongly with our global peers in the year ahead.

4Q
of total sales
1,809
4Q
Europe: Operating income

by quarter
of total sales
1Q
2Q
3Q
30,403
28,688
27,061
2,005
1Q
2Q
3Q
1,077
1,267
28.9%
FY2011: 26.5%
4Q
30,484
Asia: Net sales by quarter
4Q
Asia: Operating income

by quarter
1,436
of total sales
16
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW: EUROPE >> FINANCIAL SECTION
Europe (cont.)
Network expansion and marketing in Europe
...regulatory
Supply capabilities strengthened in Eastern Europe
developments in
Takata is continuing to expand its plant network in Eastern Europe, which is an attractive loca-
different European
tion for automakers needing cost-effective, high quality manufacturing. During FY2012 we started
nations are providing
production at a new plant in Russia.
impetus for higher

sales of airbags
Takata displays safety technology at the Frankfurt Motor Show
and other safety
In September 2011, Takata showcased its safety technology at the Frankfurt Motor Show. The
centerpiece of our display was Takatas Vacuum Folding Technology, which dramatically reduces the
products, and we are
size of the airbag in the steering wheel while reducing design limitations and environmental impact.
building even closer
Also on display to the public was Takatas new hood airbag, currently under development.
relationships with
leading automakers
throughout Europe.
We are taking further
steps to optimize our
pricing, cost structure
and manufacturing
FY2013
8,882 (Forecast)
FY2012
footprint, and expect to
8,575
compete strongly with
FY2011
8,294
our global peers in
FY2010
8,320
the year ahead.
9,275
FY2009

FY2013
14,822 (Forecast)
FY2012
13,719
FY2011
12,425
9,782
FY2010
10,842
FY2009
Germany
Germany, Europes 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.
FY2013
5,326 (Forecast)
FY2012
5,800
FY2011
5,561
FY2010
5,136
FY2009
4,976
Auto Production Trends for China

of vehicles
T A K A T A C O R P O R A T I O N A N N U A L R E P O R T 2 0 Thousands
12
FY2013
17
17,135 (Forecast)
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW: ASIA >> FINANCIAL SECTION
Asia (excluding Japan)

Asia is central to Takatas growth strategy, bringing significant
opportunities as motorization and growth in the region continue.
We have developed a responsive network in Asias emerging markets,
and with manufacturing and distribution hubs in eight countries outside
Japan, including China and India, Takata is soundly positioned for the future.
Japan: Net sales by quarter

Japan: Operating income

by quarter
of total sales
Business
year18,747
in review
1Q
1Q
(727)
In
in the earlier part of the year
affected by
2QAsia, vehicle production26,454
2Q to March 2012 was adversely 1,820
the shortage of automotive parts following the March 2011 earthquake in Japan. The flooding in
28,184
3Q
1,725
3Q
Thailand in October 2011 also had a large impact on manufacturing and sales at Japanese auto28,881
4Q
18.6%
FY2011: 19.9%
1,289
4Q
makers in Thailand. The overall growth rate in the regions 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
Americas:and
Net outlook
sales by quarter
Americas: Operating income

by quarter
Net sales decreased 7.4% to 76,188 million and operating

income 62.8% to 3,581 million,
of total sales
reflecting lower sales after the earthquake and flooding, along with higher raw material and
35,550
1Q
personnel costs across Asia.

2Q
36,506
(334)
1Q
950
2Q
During FY2012, we started construction of a new plant in Jakarta, Indonesia, to manufacture
3Q
3Qproceeded on schedule
(2,297) and to budget, and
36,866 Construction
seat
belts, airbags and steering wheels.
full
44,215
4Q production at the plant will begin in 2013.
36.7%
FY2011: 37.0%
1,809
4Q
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 Chinas domestic market, where we are strengthening our supply
network
automakers
around Tianjin and securing
more
business opportunities
Europe:servicing
Net sales
by quarter
Europe:
Operating
income from our
by quarter
OEM
customers located in the Northern China region.
of total sales
1Q
2Q
3Q
30,403
28,688
27,061
2,005
1Q
1,077
2Q
1,267
3Q
(Photos from top) Tianjin, China; Shanghai,

China; Shanghai Technical Center
28.9%
FY2011: 26.5%
4Q
30,484
Asia: Net sales by quarter

1,436
4Q
Asia: Operating income

by quarter
of total sales
1Q
2Q
3Q
15,496
20,540
19,888
1Q
404
1,291
2Q
1,147
3Q
15.9%
FY2011: 16.6%
4Q
20,264
4Q
739
18
>> COVER >> CONTENTS >> GLOBAL BUSINESS OVERVIEW: ASIA >> FINANCIAL SECTION
Asia (excluding Japan) (cont.)
Close alignment with OEMs in the worlds largest market
We also completed
An important initiative by Takata in China during the year was our establishment of a separate
construction of our
entityTakata (Shanghai) Vehicle Safety Systems Technical Center Co., Ltd. located in Shanghai
new plant in Tianjin,
with full responsibility for product development, design and evaluation. China is now the worlds
our fourth plant
largest automobile producer, and global OEMs have undertaken large-scale investment in sales
in China after
networks and production plants, for local consumption and increasingly for export. Local OEMs are
Shanghai (two plants)
Auto Production
Trends
Japan
also gearing up their businesses and have rapidly become
competitive. By
creatingfor
a fast-moving,
and Changxing.
stand-alone technical center, Takata will be well positioned to collaborate directly with automakers
FY2013
Development of the
8,882 (Forecast)
in China, and to produce products that are closely aligned with local market needs.
FY2012
Tianjin plant is our
8,575
FY2011
8,294
latest initiative to
FY2010
8,320
meet growing demand

in Chinas domestic
9,275
FY2009
market, where we
are strengthening
Auto Production Trends for North America our supply network

servicing automakers
FY2013
14,822 (Forecast)
around Tianjin and
FY2012
13,719
FY2011
securing more business
12,425
opportunities from
our OEM customers
9,782
FY2010
located in the Northern
10,842
FY2009
China region.

FY2013
5,326 (Forecast)
FY2012
5,800
FY2011
5,561
FY2010
5,136
FY2009
4,976
China
China surpassed the United States in
2009 as the worlds 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.
Auto Production Trends for China

FY2013
17,135 (Forecast)
FY2012
15,847
FY2011
15,525
13,105
FY2010
FY2009
7,624
19
>> COVER >> CONTENTS >> RESEARCH & DEVELOPMENT >> FINANCIAL SECTION
Research & Development

R&Dthe key to our leadership
in safety technology
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 development 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 automotive 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 Groups 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 Takatas overall competitiveness.
Takatas pedestrian airbag, designed to

help reduce the seriousness of injuries to
pedestrians as impact with a vehicle occurs
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
1960
Seat belt
First in Japan to commercialize
two-point seat belts
in detail opportunities to both prevent accidents and minimize their impact on peoples 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.
20
Research & Development (cont.)
In January 2011, we established Takata Shanghai Safety Systems Technical Center Co., Ltd.
TAKATA DATA:
from the spin-off of the Development and Design Division of Takata (Shanghai) Automotive Component Co., Ltd., In China, now the worlds 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,
R&D
Investment
in FY2012
by region
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. Takatas 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 development process to ensure that commercialized products meet their respective specifications.
(Millions of yen)
Japan 5,032
Americas 6,576
Europe 5,721
Asia 1,297
Adjustment (366)
Total 18,261
(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 protection 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 divisions
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 product 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.
1962
1977
1987
2003
Crash test
Child restraint systems
Airbags
Motorized seat belts
First in Japan to conduct

public seat belt crash tests

child restraint systems

driver airbags

motorized seat belts
21
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 Childrens
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-
(Photos from top) Front Center Airbag;

Inkjet print seat belt
tions in areas such as night vision, obstacle detection

and avoidance, and near-infrared spectroscopy sensors
to detect alcohol impairment.
Development of globally competitive products
We 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 planning process, based on the core systems and products
developed through our R&D activities.
Pedestrian airbag
2005
2006
2010
2012
Twin bag systems
Motorcycle airbags
Airbelts
Three-point seat belt
First in world to commercialize

twin bag systems

motorcycle airbags

safety Airbelts
First in world to develop fully

detachable three-point seat belt
22

CLOSEUP: ECHIGAWA TEST CENTER 1/3
Takatas global R&D program uses advanced technology and materials to

continually 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 Takatas dream of reducing fatalities from traffic accidents to zero
Takatas 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, Takatas
testing division is tasked with devising and optimizing
product protocols that validate the performance and
quality of products.
EchigawaJapans largest
The Echigawa Plant, situated in Shiga Prefecture,
about 50km (31 miles) north of Kyoto and just a short
drive from Takatas first seat belt factory, is home to
Japans most comprehensive testing facilities. Within
this complex, which has more than 500 employees, testing engineers work in collaboration
An engineer explains the role of

test dummies
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 Takatas
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
The scale of the testing

facilities at Echigawa
contrasts with the size
Teams of engineers, armed with state-of-the-art equipment, spend their days conducting
of Takatas products,
highly specific tests, tailored to each product and each vehicle model fitted with Takata
most of which can be
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
held comfortably in
one hand. This scale
conducted in less than the blink of an eye, they provide engineers with detailed insight into
helps Takata to
the performance of Takatas products. This is achieved with the help of numerous sensors
conduct more detailed
and sophisticated high-speed cameras, which allow engineers to capture and analyze the
testing, to better meet
vital milliseconds of each event.
customer requirements
and compete in the
global arena.
23

The use of crash test dummies is fundamental to

servo sled testing. Despite their outward similarity
to simple fashion manikins, they are actually sophisticated 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 information 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
Preparing the test subjects
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 its not
as simple as reducing noise: they aim to minimize any irritating tones, and consider how
particular sounds, such as the definitive click of a seat belt buckle or the whirr of a seat
belt retractor, contribute to safety.
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
Takata is constantly working to diversify its testing solutions
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.
24

A global working culture

A visit to the packed dining hall at lunchtime shows
just how global Takatas operations have become.
Despite being in a semi-rural area in heartland
Japan, there is a real diversity of peoplelocal and
international, male and female, new graduates and
experienced veterans. These people typify Takatas
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 environment has enabled Takata to develop people who are extremely passionate about their
Takatas new research facility at

Echigawa, due to be completed
during 2012
workeven at lunchtimeand this has helped the company to consistently produce

technological breakthroughs. Over the years, some of Takatas 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
Takatas test facilities are evolving as the scope of protection systems expands. Adjacent
to the main testing laboratories, construction is well underway on Takatas 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
A visit to the packed

dining hall at lunchtime
shows just how global
Takatas operations
have become. Despite
in crash scenario simulationand judging by Takatas track record, it will contribute
being in a semi-rural
to further innovation in the world of transportation safety systems.
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
Takatas global working
culture, chosen not
only for their technical
abilities, but also for
their ability to present
and defend new ideas.
25
>> COVER >> CONTENTS >> GLOBAL REGULATIONS >> FINANCIAL SECTION
Global Regulations
Regulation as a driver of growth
A key driver of growth in the automotive safety products and systems industry
is 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 drivers 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.
BRAZIL
CONTRAN
Resolution 311/09
(established, April 7, 2009)
INew car projects,
local or imported:
Implementation Penetration
date rate
January 1st 2011
10%
January 1st 2012
30%
January 1st 2013
100%
IICars under production,

local or imported:
date
rate
January 1st 2010
8%
January 1st 2011
15%
January 1st 2012
30%
January 1st 2013
60%
January 1st 2014
100%
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.
ARGENTINA
Government-industry
agreement on automotive
safety standards*
date
rate
January 1st 2010
10%
January 1st 2011
15%
January 1st 2012
30%
January 1st 2013
60%
January 1st 2014
100%
*Acta Acuerdo ANSV-SICPYMEADEFA-CIDOA de Fecha 16 de

Noviembre de 2009
26
>> COVER >> CONTENTS >> GLOBAL REGULATIONS >> FINANCIAL SECTION
Global Regulations (cont.)
Europe
INDUSTRY NEWS
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 for
current 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.
NCAP
(New Car
Assessment
Program):
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 for
technological competition
between automakers.
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.
27
>> COVER >> CONTENTS >> TAKATA IN THE NEWS >> FINANCIAL SECTION
Takata in the News

FY2012: Making headlines in the pursuit of safety
During the year to March 31, 2012 Takata made headlines with important
new safety product developments, motor sport partnerships, and industry
awards in many areas of our business. Some highlights are listed below.
Takata wins GM Supplier of the Year Award

for 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 GMs suppliers in 2011 as part of the
companys global product and performance achievement.
WEC team TOYOTA Racing chooses Takata

for full harness seat belts
In January 2012, Takata became official supplier of full harness seat belts to Toyota
Motor Corporations 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 Japans 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 Takatas full harness seat belts.
It also showcases Takatas commitment to being at the forefront of innovation, in this instance
alongside the sophisticated hybrid racing propulsion system of Toyotas WEC vehicles.
Takata acquires two subsidiaries

of safety systems manufacturer BAE
In 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.
28
>> COVER >> CONTENTS >> TAKATA IN THE NEWS >> FINANCIAL SECTION
Takata in the News (cont.)
Takata wins Ford World of Excellence Award

At Ford Motor Companys 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 demonstrating superior quality, delivery and cost performance.
Ford president and CEO Alan Mulally thanked all of Fords suppliers for continuing to embrace the ONE Ford mindset while Tony Brown, Fords 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.
Japans 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 incorrect 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. Passengers 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 worlds first fully detachable three-point seat belt, detachable at both shoulder anchor and lap anchor with a simple onetouch 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.
29
>> COVER >> CONTENTS >> ENVIRONMENT >> FINANCIAL SECTION
Environment
Maximizing innovation to
minimize 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 Takatas business activities, and to use innovation in R&D, manufacturing and distribution 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 majority of Takatas plants are ISO
14001 certified, and all employees and management are involved in ongoing environmental education and training initiatives.
Highland Industries Achieves 100% Recyclable Status

Highland 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 Highlands 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 productssuch 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 companys 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
Our aim is to minimize

the environmental
impact of Takatas
business activities,
and to use innovation
in R&D, manufacturing
and distribution to
in the EU. The regulation also applies to products manufactured and imported from outside the EU.
improve environmental
When the REACH initiative became effective in 2007, Takata immediately started an internal REACH
performance at each
program, and since then has maintained systems throughout our Group companies globally to
stage of our products
ensure that Takata materials and products comply with this regulation.
lifecycles.
30
>> COVER >> CONTENTS >> SOCIETY >> FINANCIAL SECTION
Society
Earning trust through social contribution
Throughout our decades of developing automotive safety technology,
we have endeavored to earn the trust of society while increasing the
corporate value of Takata by approaching our work with sincerity and
commitment. We contribute to society in a broader sense through our
engagement in cutting-edge safety research, through our involvement
in safety awareness campaigns and other community activities, and by
supporting humanitarian relief in disaster zones.
TPC Reaching Out Program: Typhoon Sendong

In December 2011, huge parts of the Southern Philippine cities of
Cagayan de Oro and Iligan were devastated by floods caused by Typhoon Sendong.
Leveraging its capabilities in airbag fabric manufacturing, and with the assistance of the Export
Processing Zone Authority (EPZA), Takata (Philippines) Corporation (TPC) donated fabric cuts to
flood victims to use as tents or house coverings.
TPC also partnered with a non-governmental organization in Cagayan de Oro in charge of
distributing relief items to victims, and facilitated the distribution of hot soup, canned food, bedding, utensils, and clothes to victims at evacuation centers. The much-needed aid was provided on
Christmas Eve and New Years Eve, helping to bring cheer to the affected families.
Donation for Disaster Relief in Thailand

Thailand experienced its worst floods in more than 50 years when floodwaters swept across 60 of
the countrys 77 provinces over a period of several months late in 2011, swamping factories and
destroying more than 10 percent of the nations rice farms. Hundreds of lives were lost and millions
were affected by the deluge.
As a gesture of solidarity with the flood victims and their affected families in a nation with which
Takata has deep business ties, Takata Corporation and TAKATA-TOA CO., LTD. (TTC) contributed
10 million and 1 Million Thai Baht respectively towards rescue and restoration efforts in Thailand.
TTC presented the donation to Thailands Prime Minister Yingluck Shinawatra on October 17, 2011.
Supporting the Activities of

Mothers Against Drunk Driving (MADD)
Driving under the influence of alcohol is the most frequently committed violent crime in the U.S.,
and Takata has worked together with MADD for many years, supporting its activities to reduce the
We contribute to
devastating impact of this antisocial behavior. MADD was founded in 1980 by a group of mothers
society in a broader
following a hit-and-run incident in California caused by a habitually drunk driver that resulted in
sense through our
the death of a minor. Our alliance with MADD is a natural fit, as we are both committed to protect-
engagement in
ing lives and improving social norms in the field of transportation. Buckled up, sober drivers are
cutting-edge safety
fundamental to traffic safety, and we plan to continue our affiliation with MADD as one part of our
responsibility as a supplier of automotive safety systems and products.
research, through
our involvement in
safety awareness
campaigns and other
community activities,
and by supporting
humanitarian relief
in disaster zones.
31
>> COVER >> CONTENTS >> CORPORATE GOVERNANCE >> FINANCIAL SECTION
Corporate Governance
Fundamental philosophy
Our policy at Takata is to grow Group business and increase shareholder value
over the long term via sustainable improvement in earnings power. We believe
that achieving this aim requires management that is both efficient and transparent,
and that ensuring the transparency of management is important for the effective
function of corporate governance mechanisms. Balancing the two elements of
efficiency and transparency is a management priority.
We have a number of initiatives and structures in place through which we seek to enhance
compliance systems, promote timely and efficient decision-making, and ensure transparency in
operational execution. These relate primarily to:
Strengthening monitoring and supervisory functions
Constructing internal control systems for the entire Group, including overseas subsidiaries,
and ensuring the appropriate operation of these systems
Enhancing accountability through measures to improve timely disclosure
Organization and internal controls

Executive officer system
We believe that our system of executive officers enables us to respond rapidly and appropriately
to changes in the business environment. The board of directors is the body responsible for overall
decision-making and supervision of Takata policy, while the executive officers have the role of
supervising the execution of business operations. Through separating functions in this way,
we aim to realize an efficient form of management that facilitates the maintenance of a strong
competitive position.
Decision-making process
The board is the supreme decision-making body for the whole Group, responsible for all key
decisions relating to Takatas overall operations. The board of directors meets regularly once per
month, and holds extraordinary meetings as necessary. The board currently comprises five
directors, including one external director.
A joint management council, comprising all directors and executive officers, convenes regularly
more than 12 times per year, with the aim of ensuring company-wide integration of operational
decision making.
Operational execution
Takata Corporation has nine executive officers, each of whom is directly involved in the execution of
operations through being allocated responsibility for either a business function or a region. Through
the joint management council, the board of directors maintains a comprehensive grasp of the status
of operational execution in all divisions, while also providing directives to each division as appropriate through the executive officers.
The executive officers are responsible for executing operations in a timely and proper manner,
and provide the board of directors with proposals and reports on a range of operational matters.
32
>> COVER >> CONTENTS >> CORPORATE GOVERNANCE >> FINANCIAL SECTION
Corporate Governance (cont.)
An internal audit office reports directly to the President, as a self-inspection function concerning
the status of the execution of operations. Internal auditors undertake operational audits of each
division and of subsidiaries. Internal auditors are also allocated overseas at each regional controlling
company in the Americas, Europe and Asia, to audit subsidiaries either independently or jointly with
the internal audit office at company headquarters in Tokyo. The audit office collaborates and shares
information with the corporate auditors and the independent auditors, with the aim of maximizing
the effectiveness of auditing activities.
Monitoring of management
The audit committee comprises four auditors, including two external auditors. Corporate auditors
attend meetings of the board of directors, monitor the activities of management, and undertake
operational audits of each division and subsidiary in line with auditing policies and plans that they
have prepared.
In addition to exchanging opinions and discussing matters as necessary to increase the validity
and effectiveness of audits, corporate auditors implement joint audits with the internal audit office
and engage in a variety of measures to stay abreast of pertinent company information.
The Companys business execution, management auditing and internal control structure is as
shown below.
General Shareholders Meetings
Appointments, dismissals
Appointments, dismissals
(Accounting audit)
Application, reports
Appointments,
dismissals
Audit Committee
Financial and
operational audit
Management Committee
President
Executive orders
Business Divisions
Communication
Domestic and overseas affiliated companies
Collaboration
Internal Audit Office
Directors, Executive Officers
Independent Auditors
Board of Directors
(Overall Group management)
Supervision, reports
33
>> COVER >> CONTENTS >> BOARD OF DIRECTORS, CORPORATE AUDITORS, AND EXECUTIVE OFFICERS >> FINANCIAL SECTION
Board of Directors, Corporate Auditors,

and Executive Officers
President and COO

Shigehisa Takada*
Executive Directors/Executive Officers

Yoshiyasu Kikuchi*, Corporate Planning Division and Risk Management Division
Noriyuki Kosugi*, Customer Business Unit 2 and Operations Division
Yasuhiko Ueno*, Customer Business Unit 1
Hiroshi Nishioka*, External Executive Director
*Member of the board
Corporate Auditors
Mitsugu Hamamura (Full-time)
Kazuo Morita (Full-time)
Fumihiko Kawamura
Chihaya Takada
Executive Officers
Robert Fisher, Global Headquarters of Americas Operations
Heinrich Binder, Global Headquarters of Europe Operations
Yoshihiko Tanaka, Human Resources, Customer Business Unit 3 and Global Headquarters of Asia Operations
Claus Rudolf, Engineering Division
Shinichi Tanaka, Purchasing Division
Yoichiro Nomura, Finance Division
As of June 2012
34
Financial Section
Managements Discussion and Analysis
36
Consolidated Balance Sheets
44
Consolidated Statements of Income
46
Consolidated Statements of Comprehensive Income
47
Consolidated Statements of Changes in Net Assets
48
Consolidated Statements of Cash Flows
50
Notes to Consolidated Financial Statements
51
Independent Auditors Report
71
35
Managements Discussion and Analysis

Net sales
390,876
382,737
2011
2012
350,914
400,000
300,000
200,000
100,000
2010
2008
2009
Years ended March 31
Operating income and

operating income margin
Millions of yen
Percent
75,000
10
7.1
6.9
4.2
60,000
3.6
26,818
14,654
30,000
2,845
15,000
13,618
45,000
36,732
0.7
2012
2011
2010
2009
2008
Net income
18,237
30,000
6,942
20,000
10,000
11,937
Millions of yen
(7,319)
(10,000)
2012
2011
2010
(20,000)
2009
and, except for Germany, vehicle production and sales were sluggish. Germany did enjoy robust exports, mainly to
the US and China, on the back of a weaker Euro. In Asia, 2011 was the second year in a row that China was the
worlds largest manufacturer and market for automobiles, but neither China nor India grew as strongly as they had
in the previous year. In Thailand, vehicle production decreased across the board due to damage to the supply chain
for auto parts for Japanese automakers following flooding there. In Japan, automakers expected to recover from the
slowdown in production following the earthquake in the first half and stepped up vehicle production from the summer;
by the second half, it was clear that a recovery in both vehicle production and sales was underway.
Takata continued to pursue growth in existing and new businesses, focusing management resources on Asia and
other growth emerging markets.
In Takatas manufacturing plant network, the Tianjin plant in China continued full operations that began late last
year, with new plant construction underway in the promising market of Indonesia, where robust growth in vehicle
sales and production continues, and in Russia, where a new plant is expected to be fully operational by the first half
of 2013. Takata also increased production capacity for airbag cushions, amid ongoing growth in global demand for
airbags. In the Americas, a new plant was constructed in Uruguay to produce airbag cushions, targeting the markets
of Brazil and Argentina, where front airbags are progressively becoming mandatory in new vehicles.
In Europe, the plant in Romania has been expanded, as has an Asian plant in the Philippines. All of these efforts
are aimed at increasing capacity in order to capture new demand in each of these regions.
During the fiscal year, solid progress was also made in other business areas. This included the acquisition of two
subsidiaries of BAE Systems: BAE Systems Safety Products Inc. in the United States and Schroth Safety Products
GmbH in Germany. These businesses produce safety systems for aircraft, motor sports and other areas, and represent Takatas first steps in expanding business beyond automotive safety systems.
The automotive industry is changing rapidly, influenced by such factors as the burgeoning development and
increasing popularity of electric vehicles, increasing competition in China, India and other emerging markets with the
rise of local automakers, and strengthening safety regulations and legislation worldwide. Recognizing the need to
remain positioned effectively as the environment changes, Takata continued to invest aggressively in R&D during the
year under review. Construction has commenced on additional cutting-edge crash test facilities in the Echigawa plant
in Japan, and completion of this facility will mean that Japan, North America, Europe, and Asia will have the same
level of crash test functionality, creating truly global R&D capabilities.
In new products, Takata and GM jointly developed a front center airbag, which will be in installed in GMs 2013
models. This airbag is fitted between the front seats and is designed to reduce impact forces between passengers
if front seat vehicle occupants collide in an accident. Also under development is the worlds smallest driver airbag,
which has been considerably reduced in size, as well as a driver airbag with a hooded shape to provide additional
head protection. In the area of active safety, which incorporates technology to sense and ameliorate potential accidents, Takata has further increased the development of high value-added products.
The Takata Group aims to be a genuinely global company that meets the needs of its customers around the world,
expanding into growth markets, establishing vertically integrated global systems of production, and aggressively
investing in R&D in order to achieve long-term sustainable growth.
500,000
22,878
During the fiscal year, the U.S. economy continued to expand at a moderate pace with improvements seen in both
employment and consumer spending figures, despite an overall lack of strength. In Europe, as the debt crisis in
Greece and elsewhere stemming from the broader financial crisis continued to worsen from mid-year, sentiment
among both companies and consumers deteriorated, resulting in negative growth among Euro member nations on
the back of falling capital expenditures and consumer spending. Germany alone remained healthy, as a weaker Euro
helped exports, although without the strength to lift the overall European economy.
In China, India, and broader Asia, which have long driven global economic growth, reduced exports to North
America and Europe along with monetary tightening resulted in an increased sense of uncertainty for the future
of their economies as their high growth rates continued to soften. In Thailand, economic activity was severely constrained following massive flooding that suspended domestic manufacturing, resulting in a substantial downturn
in Thailands economy for the second half of the year. In Japan, the Great East Japan Earthquake caused a sharp
economic decline during the first half of the year, with demand in the second half shored up by recovery efforts. The
steep rise in the Japanese yen, however, caused a rapid decline in exports and prevented Japan from attaining full
economic recovery following the earthquake.
Against this economic backdrop, vehicle production and sales in North America did relatively well. Compared to
Japanese automakers, which witnessed declines in sales following the earthquake in Japan and flooding in Thailand,
North America automakers achieved strong growth. Europe did not escape the effects of the economic downturn,
385,499
600,000
Operating environment and market overview
515,857
Millions of yen
2008
Note: The information presented below is based on extracts from material originally released in Japanese. The original material
remains definitive. All comparisons are with the previous fiscal year (the year ended March 31, 2011) unless stated
otherwise.
36
Managements Discussion and Analysis (cont.)
100
143.55
84.62
200
(100)
(200)
2008
RESULTS BY GEOGRAPHIC REGION

Global revenue structure
The Takata group of companies operates in the three key regions of the Americas, Europe, and Asia (including Japan).
Takata has a global revenue structure, significant portions of which derive from each of these regions. Takatas
management structure is organized into four units corresponding to Japan, the Americas, Europe, and Asia. Net sales
and operating income by geographical region were as follows.
219.31
300
2012
Consolidated ordinary income decreased by 50.0% to 13,499 million. Net income, which was alleviated by a
withdrawal of deferred income taxes due to a new tax treaty that came into effect between Japan and Holland, fell
by 34.5% to 11,937 million.
400
2011
Consolidated ordinary income and net income
Yen
2010
Although the Takata Group did not suffer any direct damage to its network as a result of the two natural disasters
affecting the year under review, the earthquake and flooding had a material impact on business performance. Sales
decreased during the first half following the earthquake in Japan, and capacity utilization decreased in the second
half after flooding in Thailand. The result for the fiscal year was a decline in consolidated net sales of 2.1% to
382,737 million. During the year, company-wide cost cutting, improved efficiencies, and comprehensive streamlining of management continued; however, in addition to the sales and capacity utilization issues referred to above,
a one-time expense stemming from quality issues in the third quarter contributed to a 49.2% decline in operating
income to 13,618 million
2009 (89.40)
Consolidated net sales and operating income
280.89
ANALYSIS OF RESULTS
Total assets
330,040
323,928
329,718
2010
2011
2012
400,000
315,352
In Japan, vehicle production and sales fell drastically in the first half of the year following the earthquake; however,
from August production levels began to normalize. For Takata, this meant operating losses in the first quarter followed
by recovery of results as vehicle production picked up again in the second quarter. However, this recovery was not
sufficient to return full-year performance to the level of the previous year, and full-year net sales in Japan declined
9.3% to 102,265 million for the year. Operating income for the Japan operations fell by 55.7% to 4,106 million,
reflecting the reduced sales and increases in R&D and SG&A.
339,010
Millions of yen
(1) Japan
300,000
200,000
(2) The Americas

100,000
2009
2008
In the Americas, vehicle production and sales recovered and are trending above the level of economic recovery.
Vehicle output in the U.S. recorded double-digit growth year on year, although production at Japanese automakers declined in the face of parts shortages following the earthquake. Production at U.S. automakers increased
significantly. Automobile sales in Brazil also progressed favorably. With robust sales to both North American and
European automakers, offset by sluggish sales to Japanese automakers, net sales in the Americas declined by 2.7%
to 153,135 million. Deteriorating profitability caused by higher raw material costs, increased R&D expenses, the
recording of a provision and other factors resulted in a 96.7% decline in operating income to 128 million.
(3) Europe
Within Europe, the automotive market in Germany was relatively firm as Germany remained the main engine of economic growth, but sales in southern Europe slumped due to the impact of the ongoing financial crisis in the region. In
Germany, domestic vehicle sales increased year on year, and the weak euro supported robust export sales throughout
the year to the U.S. and China. Takatas overall sales in Europe increased 7.5% to 116,635 million, led by sales to
German automakers, and this sales growth contributed to a 40.5% increase in operating income to 5,785 million.
(4) Asia
In Asia, overall economic growth moderated and previously strong growth in automobile sales showed some signs of
easing, influenced by the scaling down of a vehicle subsidy scheme in the world largest automobile market, China,
and also by economic slowdown in India, which has been showing significant and rapid market development. Japanese automakers suffered from a severe shortage of auto parts in the first half, following the earthquake in Japan,
and were affected by lengthy plant shutdowns in Thailand following the massive flooding in October. Accordingly,
vehicle production activities for the fiscal year stagnated. For Takata, the resulting decrease of vehicle production
among Japanese automakers drove down Asian sales by 7.4% to 76,188 million. Operating income in Asia fell
62.8% to 3,581 million on lower sales, higher raw material and personnel costs across Asia.
37

(Millions of yen)
Net sales
(1) Sales to
external customers
(2) Inter-segmental sales
or transfers
Total
Segment income
Asia
Eliminations and
Corporate (Note 1)
Japan
The Americas
Europe
Total
71,022
140,465
110,476
60,772
382,737
31,243
12,670
6,159
15,415
102,265
4,106
153,135
128
116,635
5,785
76,188
3,581
Consolidated
(Note 2)
382,737
65,488
(65,488)
448,225
13,602
(65,488)
15
382,737
13,618
Notes: 1. Eliminations and corporate in segment operating income of 15 million includes 88 million in eliminations of inter-segment sales and minus 72 million in goodwill amortization.
2. Segment operating income is adjusted to operating income in the consolidated statements of income.
150,000
161,186
155,312
150,789
200,000
2010
Millions of yen
145,379
Total assets at the end of the fiscal year were 329,718 million, of which the greater proportion was current assets of
221,995 million (67.3%). Fixed assets were 107,723 million (32.7%). The current ratio of 211.3% and the ratio of
fixed assets to long-term capital of 48.0% demonstrate the relative stability of Takatas financial position.
Despite the negative impact of the foreign currency translation effect, total assets as of March 31, 2012 had
increased by 5,790 million compared to one year earlier, mainly due to an increase in accounts receivable and
other factors.
Net assets
2009
1. Total assets
175,200
FINANCIAL POSITION
100,000
2. Liabilities
Total net assets as of March 31, 2012 were 161,186 million, an increase of 5,874 million compared with the end
of the previous fiscal year. This included shareholders equity of 160,068 million, consisting mainly of capital of
41,862 million, capital surplus of 42,328 million, and retained earnings of 113,280 million. The capital adequacy
ratio was 48.5%.
2012
2011
3. Net assets
50,000
2008
Total liabilities at the end of the fiscal year were 168,532 million, comprising current liabilities of 105,064 million
and long-term liabilities of 63,468 million. The ratio of total liabilities to total assets was 51.1%.
Compared to one year earlier, total liabilities as of March 31, 2012 had decreased 83 million.
Capital adequacy ratio

CASH FLOWS
Cash and cash equivalents (cash) as of March 31, 2012 was 67,263 million, 25,603 million lower than at the
end of the previous fiscal year.
Percent
60
51.6
46.0 45.5
50
A summary of cash flows in the year under review is as follows.
47.6
48.5
40
Operating activity cash flows

Net cash provided by operating activities was 3,573 million (compared to 23,034 million provided in the previous
fiscal year). This amount of increase of 19,461 million was mainly because the combined total of net income before
income taxes and depreciation and amortization was less than that of the previous fiscal year, and the increase in
accounts receivables was greater than in the previous year.
30
20
10
2012
2011
2010
2009
Net cash used in investing activities was 26,791 million (compared to net cash of 16,188 million used in the
previous year). This was mainly due to an increase in capital expenditure and the acquisition of shares of subsidiary
companies.
2008
Investing activity cash flows
Financing activity cash flows
Capital expenditure
Net cash used in financing activities was 556 million (compared to net cash of 7,393 million used in the previous
year). The main contributory factors were an increase in short-term debt and a decrease in commercial paper.
Millions of yen
40,000
36,226
50,000
10,000
19,422
15,712
10,221
20,000
19,129
30,000
38
10
2012
2011
2010
2008
2009
Capital expenditure
PRODUCTION, ORDERS AND SALES

Production
Millions of yen
Fiscal year ended March 31, 2012
447,167
97.6%
106.1%
93.5%
96.9%
30,000
Notes: 1. Figures shown are based on sales prices and prior to internal transfers between segments.
2. Above figures do not include consumption tax, etc.
20,000
10,221
89.8%
40,000
Orders
10,000
2009
2008
Takata and its consolidated subsidiaries manufacture and sell products across a wide range of types. Since the
automakers that are Takatas customers adhere to just-in-time production methods, the timeframe between the
placement of orders to Takata Group and the time of delivery is extremely short. It is therefore not possible to indicate
the scale of orders in terms of monetary value or volume.
19,422
Total
76,820
2012
Asia
115,187
15,712
Europe
153,410
2011
The Americas
2010
Japan
101,748
19,129
Production
As percentage
of previous year
36,226
50,000
Sales
Fiscal year ended March 31, 2012
Sales
As percentage
of previous year
Japan
71,022
The Americas
140,465
91.5%
97.1%
Europe
110,476
Asia
60,772
106.7%
93.4%
Total
382,737
97.9%
Notes: 1. Inter-segment sales have been eliminated.

2. Above figures do not include consumption tax, etc.
PLANS FOR CONSTRUCTION/RETIREMENT OF FACILITIES

As of March 31, 2012
Plans for major projects in the construction of new facilities and retirement of existing facilities are outlined as follows.
(1) Construction of new facilities

As part of its production activities, Takata Group establishes new factories and R&D facilities, while continuously
renewing and expanding production line facilities in existing factories and R&D assessment facilities.
The main new facilities of which construction is planned during the fiscal year ending March 31, 2013 are listed
below.
Estimated
investment amount
Company Name
Location
Business
segment
Takata
Corporation
Echigawa
(Shiga Pref.)
Japan
SERVO SLED
test equipment
Asia
Manufacturer
of seat belts,
airbags, steering
components;
evaluation facility
Europe
Manufacturer
of seat belts,
airbags, steering
components
TAKATA INDIA
PRIVATE LIMITED
TAKATA RUS LLC
Chennai &
Neemrana
(India)
Ulyanovsk
(Russia)
Outline of
facilities
Amount
Total amount already paid
(Million yen) (Million yen)
1,979
4,382
2,126
Funding method
Date commenced
Scheduled
completion date
902
Retained
earnings
June 2011
Aug. 2012
2,799
Retained
earnings,
borrowing
Jan. 2008
Mar. 2014
700
Retained
earnings,
borrowing
Nov. 2010
Apr. 2012
(2) Retirement of facilities

Aside from the routine retirement of facilities for the purpose of renewal, the Company has no major plans for the
retirement of its existing facilities.
39

TAKATA GROUP COMPANIES
Name
Location
Capital
Main business activities
Percentage of
voting rights (%)
Relationship
Consolidated Subsidiaries
Taku
(Saga Prefecture)
Aschaffenburg
(Germany)
Takata Kyushu Corporation *1

TAKATAEurope GmbH *1
TAKATA Sachen GmbH
TAKATA AG *4
TAKATA Romania S.R.L.*1
TAKATASouth Africa(Pty.) Ltd
TAKATAParts,s.r.o.
TAKATAParts Polska Sp.zo.o.*1
TAKATA SibiuS.R.L.
TakataInternational FinanceB.V. *1
TakataAsiaPteLtd
100
Manufacture of Takata seat belts and

airbags. Concurrently posted directors: 1
100 (99.3)
100 (100)
100 (94)
Sale of raw materials for airbags, etc.

Sale of raw materials for airbags,
seat belts, etc.
100 (100)
Sale of raw materials for seat belts, etc.
ZAR0 million
Europe regional holding company

Manufacture and sale of airbags and
inflators
European headquarters; manufacture and
sale of automotive safety products; R&D
Manufacture and sale of seat belts and
other products
Manufacture and sale of seat belts,
airbags, and other products
100 (100)
EUR1 million
EUR31 million
EUR9 million
Manufacture of airbags and other products

Manufacture of seat belts and airbags
Manufacture of base fabric for airbags
100 (100)
100 (100)
100 (100)

Sale of raw materials for airbags
EUR409 million
Overseas subsidiary holding company
100
SGD36 million
Procurement and sale of seat belt and

airbag components
100 (100)
Procurement of raw materials for seat

belts and airbags, etc. Concurrently
posted directors: 2
JPY70 million
EUR3 million
Saxony (Germany)
Aschaffenburg
(Germany)
EUR1 million
Arad (Romania)
Capetown
(South Africa)
Doln Kaln
(Czech Republic)
Krzeszw (Poland)
Sibiu (Romania)
Amsterdam
(The Netherlands)
EUR32 million
Singapore
EUR10 million
Manufacture of seat belt and airbag

components
51 (51)
Manufacture and sale of seat belt webbing,
base fabric for airbags, and airbags
100 (100)
Procurement and sale, etc., of raw

materials for seat belts and airbags
Procurement and sale of raw materials for
seat belts, and receipt of royalties, etc.
THB200 million

90 (90)
Procurement of raw materials for airbags,

sale of raw materials for seat belts, and
receipt of royalties, etc. Concurrently
posted directors: 1
KRW49,107 million
Sale of seat belts, airbags, and other

products
100 (100)
Manufacture of seat belts, airbags,

and other products
100 (100)
Procurement and sale of seat belts,

airbags and other products, and receipt
of royalties, etc.
TAKATACPISINGAPOREPTELTD
Singapore
Takata(Philippines)Corporation*1
Laguna (Philippines) USD35 million
TAKATA-TOA CO., LTD.
Bankok (Thailand)
TAKATA KOREA CO., LTD. *1
Seoul (Korea)
Manufacture of seat belt components and

airbags
USD8 million
Takata (Shanghai) Automotive

Component Co., Ltd. *4
Shanghai (China)
RMB165 million
TAKATA (CHANGXING) SAFETY SYSTEMS

CO., LTD.
Chngxing (China)
RMB140 million
TAKATA INDIA PRIVATE LIMITED.

TakataAmericas *1
Gurgaon (India)
INR800 million
North Carolina (U.S.)
TKHOLDINGSINC. *1, 4
IrvinAutomotiveProductsInc.
HighlandIndustries,Inc.
North Carolina (U.S.) USD0 million

Michigan (U.S.)
USD0 million
North Carolina (U.S.) USD0 million
TAKATA BRASIL S.A. *1
So Paulo (Brazil)
BRL192 million
Manufacture of inflators
Americas regional holding company
Americas headquarters, holding company;
manufacture and sale of automotive safety
products; R&D
Manufacture and sale of other products
Manufacture and sale of other products
100 (99.6)
100 (100)
100 (100)
Sale of airbag components and

procurement of inflators, etc.
Sale of seat belt components, etc.
Concurrently posted directors: 1
Sale of seat belt and airbag components,

and procurement of inflators, etc.
Concurrently posted directors: 1
98.7 (98.7)
100
75 (75)
100 (100)
Others: 35 Companies
Equity method Affiliates, etc.: 1 Company
Notes: 1. Specified subsidiary
2. None of the above companies issue security registration statements or financial reports
3. Figures in parentheses after Percentage of voting rights indicate indirect holdings through subsidiaries.
4. Net sales (excluding internal sales between consolidated subsidiaries) of the following subsidiaries exceeds 10% of
consolidated net sales. Figures shown below include internal transactions between consolidated subsidiaries.
(Millions of yen, rounded down)
Net sales
Ordinary income
Net income
Net assets
Total assets
TK HOLDINGS INC.
TAKATA AG
Takata (Shanghai) Automotive

Component Co., Ltd.
103,627
(3,785)
2,759
49,678
73,943
56,234
(395)
(460)
19,057
58,572
43,722
3,590
2,804
23,357
34,887
40

EMPLOYEES
(1) Consolidated
Business segment
Japan
The Americas
Europe
Asia
Total
Employees as of March 31, 2012

1,308 (356)
21,489
(431)
11,765
(674)
2,296 (1,789)
36,858 (3,250)
*Notes: The number of employees reflects full-time employees, excluding Takata Group staff seconded to companies outside the
Group, but including people seconded to Takata Group from outside companies. The figure in brackets denotes the average
number of temporary employees (including part-time and seasonal staff) engaged during the past year.
(2) Non-consolidated
Employees
969 (92)
Average period of
employment
13.1 years
Average age
38.7
Average annual salary

5,784,009
*Notes: 1. Represents the Japan business segment

2. The number of employees reflects full-time employees, excluding Takata Group staff seconded to companies outside the
Group, but including people seconded to Takata Group from outside companies. The figure in brackets denotes the average
number of temporary employees (including part-time and seasonal staff) engaged during the past year.
3. Average annual salary represents figures as of March 31, 2012, and includes annual bonuses and non-standard salary.
(3) Labor Unions

The union organization pertaining to Takatas operations is The Japanese Federation of Textile, Chemical, Food,
Commercial, Service and General Workers Unions. As of March 31, 2012 a total of 889 employees were members
of this organization.
To date, no particular areas of conflict have arisen between management and employees, and relationships are
proceeding appropriately.
DIVIDENDS
Takata maintains a principle of utilizing retained earnings for capital investment in future growth areas, while also
ensuring a sound financial position by utilizing retained earnings to repay loans as appropriate. At the same time the
Company positions returns to shareholders as a key management priority and maintains the basic principle of making
stable dividend payments from a long-term perspective.
The Company has a basic policy of paying dividends twice per year in the form of interim and year-end payments.
It is stipulated in the Companys articles of incorporation that the distribution of surplus through the payment of
dividends shall be determined by a resolution of the board of directors in accordance with Article 459, clause 1 of
the Companies Act in Japan.
The total dividend for the fiscal year ended March 31, 2012 was 30.0 per share, comprising the interim dividend
of 15.0 per share and a year-end dividend of 15.0 per share implemented following resolution of a board of
directors meeting on May 23, 2012. Details of dividends paid with respect to the fiscal year ended March 31, 2012
are as shown below.
Total dividend
(Million yen)
1,247
1,247
Date of resolution
Nov. 29, 2011
May 23, 2012
Per share dividend ()

15
15
SHARE PRICE INFORMATION

(1) Share price range over past five fiscal years
Fiscal years
ended March:
High ()
Low ()
2008
4,780
1,920
2009
2,630
554
2010
2,437
805
2011
2,750
1,593
2012
2,535
1,453
Note: Share prices indicated are based on quotes from Tokyo Stock Exchange (1st section)
(2) Monthly share price range over past six months

Month
High ()
Low ()
Oct. 2011
1,987
1,524
Nov. 2011
1,944
1,498
Dec. 2011
1,683
1,453
Jan. 2012
1,835
1,541
Feb. 2012
2,135
1,727
Mar. 2012
2,222
2,009
Note: Share prices indicated are based on quotes from Tokyo Stock Exchange (1st section)
41

STRATEGY AND KEY ISSUES
While there is economic uncertainty in the European and U.S. markets, along with indications of a slowdown in growth in China, India and other
emerging economies, in the longer term worldwide production of automobiles is expected to show stable growth. As automobile production
increases, we aim to expand our market share of existing markets while strengthening our design, planning and production to grow share in
emerging markets.
In the field of active safety, which encompasses next-generation safety products business, we will enhance our research and development
structure, including our basic research, and enhance our ability to realize products and systems that effectively address customer needs. In
customer service, we are optimizing our organization, including our approach to human resources, so that we can respond throughout the Group
on a global basis with rapid and effective decision-making.
Meanwhile, we are continuing with rigorous measures to control costs in the face of rising raw material prices, for example by developing
products with reduced material requirements and by shifting to low cost countries for manufacturing, so that we can maintain a management
foundation that is competitive in the global environment.
RISK AND RISK MANAGEMENT

Outlined below are the primary risks faced by Takata Corporation and its subsidiaries and affiliated companies (collectively the Company) in its
business activities that have been identified as having the potential to have a significant impact on the decisions of investors. Information is also
presented with regard to other matters, considered likely to be important to investors making judgments about the Company, that are not necessarily
risk factors, with the aim of ensuring active disclosure of information to investors.
Based on an awareness and understanding of these risks, the Company takes measures to prevent and reduce risks, and to respond appropriately in case any such risks occur.
The risk factors outlined below are those identified by the Company as of the release of this report.
1. Overseas business development, competition

As the Company conducts development, manufacturing and sale of automotive safety systems and products for vehicles in the Americas, Europe,
and Asia (including Japan), its business is strongly affected by automotive industry trends in these regions. Market trends in each region may have
a significant impact on the performance of the Company due to changes in customer order volumes and product prices.
The Company faces severe competition in each region with oligopolies of competitors. To succeed in these conditions, it will need to pursue
further cost reduction, enhance its tri-polar R&D framework in Asia, the Americas and Europe, and actively examine opportunities for M&A. If failure
of these initiatives should cause the Company to decline in comparative terms, the Companys performance could be adversely affected.
In addition to being affected by crude oil prices, interest rates, taxation and other factors relating to the economic environment, automobile sales
trends in each region are also affected by legal regulations, and any such changes in the economic or regulatory environment have the potential
to impact the Companys performance.
Other factors that might influence the success of the Companys overseas business include local conflicts, terrorism, natural disasters, the
outbreak of pandemic diseases, differing social and labor customs, conditions related to social infrastructure development, and transfer pricing
taxation and other tax-related issues.
2. Reliance on specific customers

As the automobile market in each country where the Company operates is an oligopoly comprising a small number of participants, the Companys
sales are highly dependent on key customers. The groups that form the Companys four top customers by sales volume accounted for 45.0% of
consolidated net sales in FY2011 (Honda Motor Co., Ltd., Toyota Motor Corporation, Ford Motor Company and Nissan Motor Co., Ltd.) and 40.8%
in the fiscal year under review (Honda Motor Co., Ltd., Toyota Motor Corporation, Daimler AG, and Volkswagen Group).
The Company is focusing on developing sales to new sales destinations in order to reduce reliance on specific customers. It should be noted
that because the Companys sales are affected by the sales volumes of each vehicle model equipped with the Companys products, reductions in
the total sales volumes at key customers do not necessarily have an immediate impact on the sales of the Company. Nonetheless, declining sales
volumes at major customers, changes in sales of particular vehicle models, and changes in the business strategies adopted by customers all have
the potential to affect the business performance of the Company.
3. Price competition
The automotive parts industry is characterized by severe downward pressure on pricing due to extremely intense price competition between peer
companies and also continual demands from automakers to lower prices.
In response to these business conditions, the Company continues to pursue cost-reduction programs while endeavoring to differentiate itself
from its competitors by producing high value added products. If demand for lower unit prices outpaces these initiatives, the Companys performance
may be adversely affected.
4. Fluctuations in raw materials costs

Materials used in the seat belts, airbags and other items that constitute the Companys products include yarn, resin, steel and non-ferrous metals, the
prices of which fluctuate according to the global supply and demand and the economic conditions in each region where the materials are produced.
The Company makes every effort to avoid increased purchase costs and to seek advantages of scale, such as standardizing parts and reducing
the number of companies from which materials are purchased, but in instances where raw material costs increase and cannot be reflected in higher
unit prices, the Companys performance may be adversely affected.
42

5. Fluctuations in foreign exchange rates
The Company conducts large-lot transactions denominated in foreign currencies, mainly U.S. dollars and euros.
As the Companys foreign subsidiaries prepare their financial reports denominated in their local currency, which must then be translated into
Japanese yen for consolidated accounting purposes, the Companys performance is subject to exchange rate fluctuation.
While considering trends in foreign exchange rates, the Company also undertakes foreign exchange hedging, such as forward exchange
contracts in relation to purchasing and sales transactions between countries or regions with different currencies. However, because it is difficult to
completely eliminate the risks associated with foreign exchange rate fluctuation, such fluctuation may have an adverse impact on the Companys
performance.
6. Fluctuation in interest rates

The Company finances part of its capital expenditure and working capital needs with borrowings from financial institutions, as well as through the
issuance of commercial papers and bonds.
The Company aims to reduce interest rate fluctuation risk through the use of financial instruments such as derivatives and borrowing at fixed
interest rates. However, interest rate fluctuations in the future could have an influence on the Companys results in the form of an increase or
decrease in interest payment obligations.
7. Continuity of supply
The Companys policy is to optimize the locations of manufacturing plants, with plants throughout the regions of the Americas, Europe and Asia
(including Japan) between which the Company can exchange parts and semi-finished goods. This policy ensures that the Company is not overly
dependent on specific manufacturing plants.
The Company purchases certain important raw materials and major parts from a limited number of suppliers. However, even if the Companys
raw materials and parts procurement is disrupted due to production shutdowns or other problems at key suppliers, the Company can in principle
exchange parts and semi-finished goods between plants in different locations.
In cases where production at a specific location is disrupted for a period of time due to factors such as damage from earthquakes or fires, the
Companys performance may be adversely affected, due to resulting compensation burden, or loss of certain business due to damage to customer
trust or other related factors.
8. Product quality
The Company recognizes that it manufactures and sells products directly concerned with human life, and in implementing the principle of Quality
First, the Company makes every effort to ensure product quality and maintain and enhance its quality assurance system.
However, there is no guarantee that product-related quality issues will not arise, and large-scale product recalls and/or product liability may
arise. In addition to taking out insurance against product liability litigation, the Company has set aside reserves against recalls and defects and
made provisions against compensation incidences in the future with partial insurance coverage. Despite these measures, it is not possible to
guarantee that the Companys reserves and insurance coverage will be sufficient to cover any such compensation burden. As a result, in cases
when material quality issues arise, a decrease in the creditworthiness of the Company or the emergence of compensation awards may adversely
affect the Companys performance.
9. Intellectual property
The Company is endeavoring to develop technology and know-how that differentiates it from competitors in the market. The Company strives to
protect its proprietary technology through securing patents and other such methods, and engages in risk management to avoid infringing on the
intellectual property rights of other companies.
However, the risk remains that products the Company currently markets or brings to market in the future might infringe on the intellectual
property rights of third parties. In addition, the issuance of patents or other intellectual property rights of which the Company is not aware might lead
to litigation and claims for damages from third parties. These factors may adversely affect the Companys performance.
10. Legal proceedings

The Company conducts global operations around the world, and endeavors to maintain strict compliance with the laws and regulations of each
country in which it operates. However, the risk remains that legal proceedings may arise from litigation or from investigations by regulatory authorities. These factors may adversely affect the Companys performance.
DISCLAIMER
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.
43
Consolidated Balance Sheets

Takata Corporation and Consolidated Subsidiaries

March 31, 2012
March 31, 2011
ASSETS
Current assets
Cash
Notes and accounts receivable
Marketable securities
Inventories (note 1)
Deferred income taxes
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible assets
Buildings and structures
Accumulated depreciation (note 4)
Buildings and structures (net)
Machinery and equipment
Machinery and equipment (net) (note 3)
Land
Construction in progress
Other
Other (net)
Total tangible assets
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other (note 2)
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
69,600
75,454
4,546
47,152
8,351
17,894
(1,004)
221,995
81,762
65,204
13,700
43,831
8,056
12,244
(836)
223,962
63,247
(37,631)
25,616
100,562
(79,064)
21,497
12,302
9,943
38,646
(32,682)
5,964
75,323
61,201
(36,463)
24,737
98,177
(76,270)
21,907
12,598
8,082
36,933
(31,756)
5,176
72,502
1,476
3,117
4,594
634
2,414
3,048
15,832
8,360
3,636
(24)
27,805
107,723
329,718
15,790
4,491
4,160
(28)
24,414
99,966
323,928
See accompanying notes to the consolidated financial statements.
44
Consolidated Balance Sheets (cont.)


March 31, 2012
March 31, 2011
LIABILITIES
Current liabilities
Accounts payable
Short-term borrowings
Commercial paper
Current portion of long-term borrowings
Accrued expenses
Accrued income taxes
Warranty reserve
Other
Total current liabilities
Long-term liabilities
Bonds
Long-term borrowings
Reserve for retirement benefits
Reserve for directors retirement benefits
Other (note 3)
Total long-term liabilities
Total liabilities
NET ASSETS
Shareholders equity
Capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders equity
Accumulated other comprehensive income
Unrealized gains on available-for-sale securities
Deferred losses on hedging instruments
Foreign currency translation adjustments
Adjustment of pension liabilities at foreign subsidiaries
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets
28,817
15,517
2,000
15,045
12,877
1,905
9
14,607
14,284
105,064
25,845
6,908
5,000
16,966
13,056
4,838
175
14,299
15,037
102,128
20,000
23,687
8,120
8,080
501
3,078
63,468
168,532
10,000
36,671
5,895
8,104
2,343
3,472
66,487
168,615
41,862
42,328
113,280
(0)
197,470
41,862
42,328
103,838
(0)
188,028
4,632
(82)
(41,625)
(326)
(37,401)
1,117
161,186
329,718
4,188
(26)
(37,579)
(306)
(33,723)
1,008
155,312
323,928
45
Consolidated Statements of Income

Net sales
Cost of sales (note 1)
Gross profit
Selling, general and administrative expenses (notes 2 and 3)
Operating income
Non-operating income
Interest income
Dividend income
Foreign currency exchange gain
Insurance return
Gain on adjustment of special retirement benefits (note 4)
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign currency exchange loss
Financing fees
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Special gains
Gain on adjustment of special retirement benefits (note 4)
Settlement Proceeds (note 5)
Total special gains
Special losses
Loss on disposal of fixed assets (note 6)
Impairment losses (note 7)
Effect of adoption of accounting standard for asset retirement obligations
Total special losses
Net income before income taxes
Income taxes (current)
Income taxes (deferred)
Total income taxes
Net income before minority interests
(Loss) Income attributable to minority interests
Net income

Year ended
Year ended
March 31, 2012
March 31, 2011
382,737
390,876
318,466
316,335
64,270
74,540
50,652
47,722
13,618
26,818
1,099
259

358
904
2,622
969
193
107
269

649
2,189
1,175
168
287
382
726
2,740
13,499
1,205

203
77
512
1,999
27,008
1,140
275
1,415
13,499
3,658
(1,823)
1,835
11,664
(273)
11,937
244
1,321
75
1,640
26,783
8,417
(61)
8,356
18,426
189
18,237
46
Consolidated Statements of Comprehensive Income

Net income before minority interests

Other comprehensive income
Unrealized gains (losses) on available-for-sale securities
Deferred (losses) gains on hedging instruments
Total other comprehensive income (notes 1 and 2)
Comprehensive income
Total comprehensive income attributable to:
Shareholders of Takata Corporation
Minority interests

Year ended
Year ended
March 31, 2012
March 31, 2011
11,664
18,426
443
(56)
(4,013)
(19)
(3,645)
8,018
8,259
(240)
(450)
10
(11,011)
(132)
(11,583)
6,843
6,687
155
47
Consolidated Statements of Changes in Net Assets


Year ended
Year ended
March 31, 2012
March 31, 2011
SHAREHOLDERS EQUITY
Capital
Balance at the end of previous period
Balance at the end of current period
Capital surplus
Retained earnings
Changes during the period
Dividends
Net income
Transfer to adjustment of pension liabilities at foreign subsidiaries*1
Total changes during the period
Treasury shares
Balance at end of previous period
Acquisition of treasury shares
Total shareholders equity
Dividends
Net income
41,862
41,862
41,862
41,862
42,328
42,328
42,328
42,328
103,838
87,921
(2,494)
11,937

9,442
113,280
(2,494)
18,237
174
15,917
103,838
(0)
(0)
(0)
(0)
(0)
(0)
188,028
172,110
(2,494)
11,937

(0)
9,442
197,470
(2,494)
18,237
174

15,917
188,028
48
Consolidated Statements of Changes in Net Assets (cont.)


Year ended
Year ended
March 31, 2012
March 31, 2011
ACCUMULATED OTHER COMPREHENSIVE INCOME
Net changes of items other than those in shareholders equity
Deferred gains on hedging instruments
Net changes of items other than those in shareholders equity*1
Total accumulated other comprehensive income
MINORITY INTERESTS
TOTAL NET ASSETS
Dividends
Net income
4,188
4,638
443
443
4,632
(450)
(450)
4,188
(26)
(36)
(56)
(56)
(82)
10
10
(26)
(37,579)
(26,601)
(4,046)
(4,046)
(41,625)
(10,977)
(10,977)
(37,579)
(306)
(19)
(19)
(326)
(306)
(306)
(306)
(33,723)
(21,999)
(3,678)
(3,678)
(37,401)
(11,724)
(11,724)
(33,723)
1,008
109
109
1,117
330
330
1,008
155,312
150,789
(2,494)
11,937

(0)
(3,568)
5,874
161,186
(2,494)
18,237
174

(11,394)
4,523
155,312
677
*1: Net changes of items other than those in shareholders equity and Transfer to adjustment of pension liabilities at foreign subsidiaries are related to the adopted ASC715 (formerly Statements of
Financial Accounting Standards (SFAS) 158) in foreign subsidiaries. An actuarial loss/gain and a prior service cost that were unrecognized in the past were newly recognized as liabilities on the balance
sheet, and related adjustments were booked here in the net assets category. ASC refers to the Accounting Standard Codification systemized by the Financial Accounting Standards Board.
49
Consolidated Statements of Cash Flows


Year ended
Year ended
March 31, 2012
March 31, 2011
Operating activities
Net income before income taxes
Depreciation and amortization
Loss on disposal of fixed assets
Impairment losses
Increase in allowance for doubtful accounts
Increase in reserve for retirement benefits
(Decrease) Increase in reserve for directors retirement benefits
Increase (Decrease) in warranty reserve
Exchange loss (gain)
Interest and dividend income
Interest expenses
Increase in notes and accounts receivable
Increase in inventories
Increase in accounts payable
Increase in accrued expenses
Increase in other current assets
Increase (Decrease) in other current liabilities
(Decrease) Increase in other non-current liabilities
Other
Subtotal
Interest and dividend received
Interest paid
Payments for business restructuring
Income taxes paid
Net cash provided by operating activities
Investing activities
Net (increase) decrease in time deposits
Net increase in negotiable certificates of deposit
Purchases of fixed assets
Proceeds from sales of fixed assets
Purchases of intangible assets
Purchases of subsidiaries shares
Other
Net cash used in investing activities
Financing activities
Net increase (decrease) in short-term borrowings
(Decrease) Increase in commercial paper
Proceeds from long-term borrowings
Repayment of long-term borrowings
Proceeds from issuance of bonds
Purchases of treasury shares
Payments of dividends
Payments of dividends to minority interests
Proceeds from minority interests
Net cash used in financing activities
Effects of exchange rate changes on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (note)
13,499
13,266

186
313
(1,842)
464
127
(1,359)
1,175
(11,218)
(3,900)
3,397
353
(2,985)
236
(311)
775
12,177
1,359
(1,296)
(379)
(8,286)
3,573
26,783
14,497
244
1,321
148
168
437
(3,097)
(65)
(1,163)
1,205
(5,518)
(4,729)
1,589
3,023
(2,888)
(846)
989
(907)
31,191
1,163
(1,218)
(288)
(7,814)
23,034
(4,179)

(19,683)
796
(639)
(2,628)
(456)
(26,791)
457
(700)
(15,046)
299
(665)

(532)
(16,188)
8,668
(3,000)
2,700
(16,780)
10,000
(0)
(2,494)
(32)
382
(556)
(1,829)
(25,603)
92,866
67,263
(1,316)
2,000
1,115
(16,871)
10,000

(2,494)
(23)
197
(7,393)
(4,795)
(5,344)
98,210
92,866
50
Notes to Consolidated Financial Statements

BASIS OF PRESENTATION
The accompanying consolidated financial statements of Takata Corporation (the Company) and its consolidated subsidiaries are prepared on the basis of
accounting principles generally accepted in Japan, which are different in certain respects as to the application and disclosure requirements of International
Financial Reporting Standards, and are compiled from the consolidated financial statements prepared by the Company as required by the Financial Instruments
and Exchange Law of Japan.
SIGNIFICANT ACCOUNTING POLICIES

1. SCOPE OF CONSOLIDATION
(1) Consolidated subsidiaries
The number of consolidated subsidiaries as of March 31, 2012 was as follows:
Number of companies
March 31, 2012

58
During the fiscal year ended March 31, 2012 (FY2012) the number of consolidated subsidiaries was increased from 53 to 58 due to the establishment
or acquisition of two subsidiaries in the Americas, two subsidiaries in Europe, and one subsidiary in Asia.
(2) Non-consolidated subsidiaries

There are currently no applicable items in this category.
2. EQUITY METHOD
(1) Affiliated companies accounted for by the equity method
The number of affiliated companies accounted for by the equity method as of March 31, 2012 was as follows:
Number of companies
March 31, 2012

1
As of March 31, 2012, Syntec Seating Solutions LLC was an affiliated company accounted for by the equity method.
(2) Non-affiliated companies in which material equity interest is held

The Company holds between 20% and 50% of the voting rights in the following entities:
Dalphi Metal Espana S.A.
Dalphi Metal Seguridad S.A.
Dalphi Metal Internacional S.A.
Dalphi Metal Portugal S.A.
However, as the Company is unable to exercise material influence on these entities, they are not treated as affiliated companies.
(3) Fiscal year-ends of companies accounted for by the equity method

Where fiscal year-ends of affiliated companies accounted for by the equity method differ from the fiscal year end of the Company, consolidated financial
statements for the Company are prepared based on provisional account closing provided by the affiliated companies as of the consolidated fiscal year-end.
3. FISCAL YEAR-END OF CONSOLIDATED SUBSIDIARIES

Among consolidated subsidiaries in FY2012, a total of 15 companies, including Takata (Shanghai) Automotive Component Co., Ltd., have fiscal years that end
on December 31. For the preparation of consolidated financial statements, those consolidated subsidiaries provide financial information as of March 31 made
by provisional account closing or make necessary adjustments regarding major transactions occurring after January and before March 31. The fiscal year-ends
of all other consolidated subsidiaries coincide with that of the Company.
4. SIGNIFICANT ACCOUNTING POLICIES

(1) Accounting principles applied for foreign subsidiaries
Foreign subsidiaries apply the accounting principles generally accepted in the United States (US GAAP).
(2) Valuation policy and method for major assets

a) Investments in marketable securities classified as available-for-sale securities are carried at their fair value with changes in unrealized gains or losses
reported in the separate component of net assets, net of applicable income taxes. The cost of securities sold is based on the moving average method.
b) Non-marketable securities classified as available-for-sale securities are stated at cost with the moving average method.
c) Derivatives are valued using the fair value method.
d) Inventories are valued at cost with cost being determined principally by the average cost method for domestic companies. (Balance sheet value is calculated
by writing book value down based on decrease in profitability.) Inventories are valued at the lower of cost or market with cost being determined by the first-in,
first-out method for foreign subsidiaries.
51
Notes to Consolidated Financial Statements (cont.)

(3) Depreciation and amortization of fixed assets

a) Tangible fixed assets
Depreciation of property, plant and equipment is computed by the declining-balance method for the Company and its domestic subsidiaries and by the straightline method for foreign subsidiaries.
The estimated useful lives for such assets are as follows:
Buildings and structures
Other
545 years
28 years
220 years
b) Intangible fixed assets

Intangible fixed assets are amortized using the straight-line method. Software intended for internal use is amortized over an estimated useful life of 2-5 years.
Intangible fixed assets for which a useful life can be estimated are amortized over the estimated period.
c) Lease assets
Finance lease transactions executed on or before March 31, 2008 that do not involve a transfer of ownership are accounted for using the same method as
operating leases for the Company and its domestic consolidated subsidiaries.
(4) Allowances and reserves
a) Allowance for doubtful accounts
Allowances for notes and accounts receivable, loan receivables and other doubtful accounts are established to cover such possible losses. For normal
receivables, allowances are calculated based on credit loss history. For certain receivables that have been identified as being of particular concern about
default, the receivables are considered separately and allowances are provided for the estimated uncollectible amount. For foreign subsidiaries, allowances are
determined primarily based on the estimated uncollectible amount for designated receivables.
b) Warranty reserve
Estimated future costs of product warranties and product liability obligations are accrued based on historical experience and present circumstances.
c) Reserve for retirement benefits
The Company and its consolidated subsidiaries provide a reserve for employees retirement benefits at the balance sheets date based on the estimated
amounts of projected benefit obligation and the fair value of plan assets at the end of each fiscal year.
An unrecognized transition obligation (829 million) is being amortized using the straight-line method over a period of 15 years. Prior service cost is
amortized using the straight-line method over 15 years, within the average remaining service period of employees at the time of occurrence. Actuarial gain
or loss is amortized over 15 years using the straight-line method, within the average remaining service period of employees at the end of each consolidated
balance sheet date, and expensed from the following fiscal year.
d) Reserve for directors retirement benefits
In order to provide retirement benefits for directors and executive officers, a certain required amount based on internal rules at the balance sheet date is reserved.
(5) Foreign currency translation
Assets and liabilities denominated in foreign currencies are translated into Japanese yen at the current exchange rate on the balance sheet date. Gains and losses
resulting from the translation are recognized in the consolidated statements of income as incurred. The assets and liabilities of foreign subsidiaries are translated
into Japanese yen at the current exchange rate on the balance sheet date, and revenue/gain and expense/loss in the income statements are translated at the
annual average exchange rate. Differences arising from the translation are presented as translation adjustments and minority interests in net assets.
(6) Hedge accounting
Deferral hedge accounting is applied to derivatives which qualify as hedges, under which unrealized gain or loss is deferred. In addition, the special method is
applied to certain interest rate swaps. In accordance with a special measure under the Accounting Standard for Financial Instruments, the Company does not
carry certain interest rate swap contracts at fair value, and offsets interest received on the interest rate swaps with those paid on hedged transactions, as long
as these interest rate swap contracts meet the specific criteria under the standard.
Hedging instruments and hedged items
The following is a summary of hedging financial instruments used by the Company and consolidated subsidiaries in FY2012 along with the hedged items.
Hedging instruments
Hedged items
Interest rate swap contracts

Forward exchange contracts
Currency option contracts
Interest on borrowings
Accounts payable and accounts receivable in foreign currency
Hedging policy
The Company and its consolidated subsidiaries use derivatives to hedge currency fluctuation risks and fluctuation risks of interest rates, based on the
Companys internal Market Risk Management Policy.
52

Assessment of hedge effectiveness

Effectiveness of hedging is assessed by comparing the cumulative changes in cash flows or the changes in fair values of hedged items with the corresponding
changes in the hedging derivative financial instruments. Assessment of hedge effectiveness is not undertaken for interest rate swaps and caps accounted for
under the special method.
(7) Amortization of goodwill and amortization period
Goodwill is amortized using the straight-line method over an effective period not exceeding 20 years from the fiscal year of its origination. The amortization
period is primarily 12 years.
(8) Cash and cash equivalents in the consolidated statements of cash flows
Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn at any time and short-term investments with a maturity of three
months or less when purchased which can be easily converted to cash and are subject to little risk of change in value.
(9) Accounting for consumption tax
Transactions subject to consumption tax are recorded at amounts exclusive of consumption tax.
CHANGE IN PRESENTATION
Change in presentation of consolidated statements of income
Previously, the Company included equity in losses of affiliates in Other in Non-operating expenses. However, effective for FY2012, equity in losses of affiliates
is listed as an individual line entry in Non-operating expenses due to the materiality of this item exceeding 10% of non-operating expenses.
Accordingly, the presentation of this item for the previous year has been revised to reflect this change. As a result, in the consolidated statements of income
for FY2011, the Other amount of 590 million in Non-operating expenses has been represented as 77 million for Equity in losses of affiliates and 512
million for Other.
Change in presentation of consolidated statements of cash flows
Previously, in the Investing activities section of the consolidated statements of cash flows, the Company recorded Increase in time deposits and Proceeds
from refund of time deposits. However, because of the short deposit period and rapid revolving period, the presentation of these items has been changed to
Net decrease (increase) in time deposits.
Accordingly, the presentation of this item for the previous year has been revised to reflect this change. As a result, in the consolidated statements of cash
flows for FY2011, the Increase in time deposits amount of (284 million) and Proceeds from refund of time deposits amount of 741 million have been
represented as Net decrease in time deposits of 457 million.
SUPPLEMENTAL INFORMATION
Adoption of Accounting Standard for Accounting Changes and Error Corrections
Effective from FY2012, the Company has adopted the Accounting Standard for Accounting Changes and Error Corrections (Accounting Standards Board
of Japan (ASBJ) Statement No. 24 of December 4, 2009) and the Guidance on Accounting Standard for Accounting Changes and Error Corrections (ASBJ
Guidance No. 24 of December 4, 2009), for accounting changes and corrections of past errors made after the beginning of the fiscal year.
Temporary difference related to dividends from undistributed earnings of overseas subsidiaries
Previously, tax obligations arising from the receipt of dividends from the undistributed earnings of overseas subsidiaries were recorded as deferred tax liabilities
at estimated amounts. However, because the Convention between Japan and the Kingdom of the Netherlands for the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with Respect to Taxes on Income came into effect on December 29, 2011, a portion of these deferred tax liabilities have been
reversed. As a result, the amount of income taxes (deferred) decreased by 3,399 million compared to the previous method, and net income for FY2012
increased by the same amount.
NOTES TO THE CONSOLIDATED BALANCE SHEETS

(1) Inventories as of March 31, 2012 and March 31, 2011 were as follows:
Item
Products and finished goods
Work in process
Raw materials and supplies
Total
March 31, 2012

8,019
7,985
31,148
47,152
March 31, 2011

8,818
6,224
28,788
43,831
(2) Investments in non-consolidated subsidiaries and affiliates as of March 31, 2012 and March 31, 2011 were as follows:
Item
Other investments (investments in affiliates)
Total
March 31, 2012

164
164
March 31, 2011

569
569
53

(3) Assets pledged as collateral as of March 31, 2012 and March 31, 2011 were as follows:
Item
Total
March 31, 2012

57
57
March 31, 2011

234
234
Liabilities secured by the above collateral as of March 31, 2012 and March 31, 2011 were as follows:
Item
Other non-current liabilities
Total
March 31, 2012

297
297
March 31, 2011

219
219
(4) Accumulated impairment losses are included in accumulated depreciation as of March 31, 2012 and March 31, 2011.
(5) Contingent liabilities
TK Holdings Inc., a U.S. subsidiary of Takata, became the subject of an investigation conducted by the Federal Bureau of Investigation on February 8, 2011. TK
Holdings Inc. has been cooperating fully with the ongoing investigation. Takata Groups understanding is that the investigation relates to anti-trust regulations.
Although it is possible that Takata Group may incur a loss as a result of this investigation, making any such estimation is difficult at this stage, and potential
impact from this investigation is uncertain.
NOTES TO THE CONSOLIDATED STATEMENTS OF INCOME

(1) Inventories as of the end of the year were recorded at book values according to the lowering of their profitability, and valuation losses for inventories of 112
million and gains on reversal of valuation for inventories of 158 million were included in cost of sales for FY2012 and FY2011, respectively.
(2) In FY2012 and FY2011, major items included in selling, general and administrative expenses were as follows:
Item
Freight outward
Salaries
Provision for allowance for bad debt
Retirement benefit expenses
Provision for reserve for directors retirement benefits
Research and development expenses
Commissions
FY2012
6,728
11,082
276
392
60
18,261
6,135
FY2011
6,990
11,055
77
655
537
16,058
3,949
(3) Research and development expenses of 18,261 million and 16,058 million in FY2012 and FY2011, respectively, are included in general expenses and
production costs.
(4) For FY2012 and FY2011, gain on adjustment of special retirement benefits relates to a partial reduction in payment obligations for special retirement
benefits concomitant with business reorganization in Europe, following progress in reallocating personnel in the region.
(5) For FY2011, settlement proceeds were received for damage incurred as a result of malfunctioning during the process of developing software in the Company.
(6) Loss on disposal of fixed assets in FY2011 was as follows:
Software
Software in progress
Total
FY2011
39
204
244
(7) Impairment losses

FY2012
There are no applicable items for the year under review.
54

FY2011
Impairment losses for FY2011 are recognized at the Company and its foreign consolidated subsidiaries. In the case of foreign consolidated subsidiaries,
impairment losses are recorded in accordance with ASC 360 (Property, Plant and Equipment), which has replaced the previous SFAS 144 (Accounting for the
Impairment or Disposal of Long-Lived Assets).
The net book values of certain factories of the Company that have been combined or made idle were reduced to net sales value estimated as the recoverable
value based on real estate appraisals. As a result, impairment losses of 313 million on land and 48 million on buildings and structures were recorded,
amounting to a total of 366 million.
The net book values of manufacturing facilities for electronic components in consolidated subsidiaries in Asia were reduced to the estimated recoverable
value due to deteriorating profitability stemming from sluggish orders. Taking into account future cash flows, the estimated recoverable value has been recorded
as zero. As a result, impairment losses of 161 million on machinery and equipment were recorded.
The net book values of ERP systems and manufacturing facilities for airbag components in consolidated subsidiaries in the Americas and Asia were reduced
to the estimated recoverable value due to indication of impairment stemming from continued suspension of production and uncertainty regarding the schedule
for resumption. The estimated recoverable value is based on anticipated future cash flows; however, taking into account that these are non-operating assets,
the estimated recoverable value has been recorded as zero. As a result, impairment losses on software of 266 million have been recorded at consolidated
subsidiaries in the Americas, while at consolidated subsidiaries in Asia, 164 million in impairment losses on buildings and 361 million in impairment losses
on construction in progress have been recorded.
NOTES TO THE CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For FY2012
1. Reclassification adjustments related to other comprehensive income

Amount incurred during the period
Unrealized losses on hedging instruments
Reclassification adjustments
Adjustment of pension liabilities at overseas subsidiaries
Reclassification adjustments
Total other comprehensive income before tax effect
Tax effect
Total other comprehensive income
128
128
(102)
14
(88)
(4,013)
(4,013)
(89)
46
(42)
(4,015)
369
(3,645)
2. Tax effect on other comprehensive income

Before tax effect
128
(88)
(4,013)
(42)
(4,015)

Unrealized gains on hedging instruments
Adjustment of pension liabilities at overseas subsidiaries
Total other comprehensive income
Tax effect
314
32

22
369
After tax effect

443
(56)
(4,013)
(19)
(3,645)
NOTES TO THE CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

FY2012
1. Number and type of shares issued and treasury stock
(shares)
Number of shares as of
March 31, 2011
Shares issued
Common stock
Total
Treasury stock
Common stock (Note)
Total
83,161,700
83,161,700
296
296
Increase

50
50
Decrease
Number of shares
as of March 31, 2012
83,161,700
83,161,700
346
346
Note: The increase of treasury common stock arose from the purchase of shares of less than one voting unit.
55

2. Share subscription rights and treasury share warrants

There are no applicable items for the year.
3. Dividends
(1) Dividends paid
Resolution
Type of stock
Total dividends paid
Dividend per share
Cut-off date
Effective date
Board meeting on
May 20, 2011
Common stock
1,247 million
15
March 31, 2011
June 13, 2011
Board meeting on
November 29, 2011
Common stock
1,247 million
15
September 30, 2011
December 9, 2011
(2) Dividends for which the effective date is in the following fiscal year
Resolution
Type of stock
Total
Dividends paid
Source of dividends
Dividend
per share
Cut-off date
Effective date
Board meeting on
May 23, 2012
Common stock
1,247 million
Retained earnings
15
March 31, 2012
June 11, 2012
FY2011
1. Number and type of shares issued and treasury stock
(shares)
Number of shares as of
March 31, 2010
Shares issued
Common stock
Total
Treasury stock
Common stock
Total
83,161,700
83,161,700
296
296
Increase
Number of shares
as of March 31, 2011
Decrease
83,161,700
83,161,700
296
296
2. Share subscription rights and treasury share warrants

There are no applicable items for the year.
3. Dividends
(1) Dividends paid
Resolution
Type of stock
Total dividends paid
Dividend per share
Cut-off date
Effective date
Board meeting on
May 20, 2010
Common stock
1,247 million
15
March 31, 2010
June 8, 2010
Board meeting on
November 30, 2010
Common stock
1,247 million
15
September 30, 2010
December 3, 2010
(2) Dividends for which the effective date is in the following fiscal year
Resolution
Type of stock
Total
Dividends paid
Source of dividends
Dividend
per share
Cut-off date
Effective date
Board meeting on
May 20, 2011
Common stock
1,247 million
Retained earnings
15
March 31, 2011
June 13, 2011
NOTES TO THE CONSOLIDATED STATEMENTS OF CASH FLOWS

The reconciliation of cash in the consolidated balance sheet with cash and cash equivalents in the consolidated statements of cash flows as of March 31,
2012 and 2011 is as follows.
Cash
Securities account
Time deposits with maturities exceeding 3 months and negotiable certificates
of deposit
Cash and cash equivalents
March 31, 2012

69,600
4,546
March 31, 2011

81,762
13,700
(6,883)
(2,595)
67,263
92,866
56

LEASE TRANSACTIONS
Lessees accounting
1. Finance lease transactions other than those in which ownership of the leased assets is considered to have transferred to the lessee
Finance lease transactions executed on or before March 31, 2008 that do not involve a transfer of ownership are accounted for using the same method as
operating leases for the Company and its domestic consolidated subsidiaries, and the results are summarized as follows:
(1) Assumed amount of acquisition cost, accumulated depreciation and net book value at end of period
March 31, 2011
Other
Acquisition cost
Accumulated
depreciation
Net book value as of

March 31, 2011
There are no applicable items as of March 31, 2012
(2) Future lease payments due

Due within one year

Due after one year
Total
March 31, 2011

1

1
There are no applicable items as of March 31, 2012
(3) Lease payments, accumulated depreciation and interest paid

As of March 31, 2012 and March 31, 2011
Lease payments
Accumulated depreciation
Interest paid
March 31, 2012

1
1
0
March 31, 2011

1
1
0
(4) Depreciation method

Depreciation is calculated on a straight-line basis over the period of the lease, assuming a residual value of zero.
(5) Method of calculating interest paid

Interest paid is calculated as the difference between total lease payments and the acquisition price of the leased items, and is allocated to each period
according to the interest method.
2. Operating lease commitments

Future minimum lease payments subsequent to the year end for noncancelable operating leases are summarized as follows:
Due within one year

Due after one year
Total
March 31, 2012

949
1,571
2,520
March 31, 2011

1,019
1,888
2,907
Note: No impairment losses have been allocated to lease assets.
FINANCIAL INSTRUMENTS
1. Status of financial instruments
(1) Policy concerning financial instruments
Takata Group procures necessary funds for its business operations, including capital expenditure, from retained earnings deriving from its business activities
as well as through bank loans, issuance of bonds and other financing. Any temporary cash surplus is invested in highly liquid financial assets. In principle,
derivatives are not used for speculative purposes. However, derivatives may be used with the aim of reducing interest rate burden in circumstances where the
outlook is deemed to be sufficiently clear.
(2) Nature of financial instruments and their associated risks

Receivables such as notes and accounts receivables are exposed to the credit risk of the customer.
Marketable securities are mainly held on a short-term basis, with due measures undertaken to ensure adequate safety, and these holdings are principally
in negotiable certificates of deposit and MMF.
Investment securities, principally in long-term holdings of equities and categorized as Other securities, are exposed to market price fluctuation risk.
Payables such as notes and accounts payable are settled on a short-term basis.
57

Short-term funding is procured using short-term borrowings and commercial paper, and long-term funding is procured using long-term borrowings and
bond issuance. Long-term borrowings are made chiefly for the purpose of capital expenditure, using fixed or floating interest rates flexibly as appropriate after
taking into account market trends and costs.
Derivative transactions are used to hedge against interest rate fluctuation that affects interest paid on long-term borrowings and bonds, along with currency
fluctuations associated with foreign currency denominated receivables and payables arising from transactions between Group companies, and consist of
interest rate swaps, forward exchange contracts and currency options. For details of hedging instruments, hedged items, hedging policy and assessment of
hedge effectiveness, please refer to (6) Hedge accounting, Hedging policy in 4. SIGNIFICANT ACCOUNTING POLICIES.
(3) Risk management for financial instruments

(i) Credit risk (customer default risk) management
Takata Group follows internal credit management rules according to which the department responsible at each subsidiary controls the receivable balance
of each customer, while monitoring the financial position of each customer to enable early detection and mitigation of potential difficulties in collection of
receivables, which could arise should the financial position of a customer deteriorate.
Derivate transactions are limited to financial institutions with corporate customers that have strong credit ratings, and credit risk is therefore deemed to
be negligible.
(ii) Market risk (exchange rate and interest rate fluctuation risk) management
Although Takata Group has foreign currency-denominated receivables and payables arising from transactions within and between Takata Group entities, it
endeavors to mitigate exchange rate fluctuation risk through the use of a single transaction currency throughout the Company to the fullest extent possible.
In addition, currency balances that give rise to a foreign currency position are hedged on an ongoing basis using forward exchange contracts and currency
options. The Company also uses fixed interest loans and interest rate swaps to mitigate risks associated with interest rate fluctuation affecting repayment on
borrowings, flexibly selecting either fixed or floating interest rate structures after close consideration of market interest rate trends.
In available-for-sale securities, the Company limits its investments to low risk short-term securities. In investment securities, the Company limits its holdings
to the shares of well-rated corporations, and in general those with which it has already conducted transactions as part of a business relationship.
The Company ensures that each organizational department responsible, both in the Company and in its consolidated subsidiaries, follows the procedures
prescribed in the Companys Market Risk Management Policy.
(4) Note concerning fair value of financial instruments

Fair value of financial instruments is based on quoted prices in active markets. If a quoted price is not available an alternative method of rational valuation
is used. The results of valuation may differ according to the assumptions adopted, since rational valuation includes variable factors. The contract amounts
indicated for derivatives in the note on DERIVATIVE TRANSACTIONS below do not reflect market risk.
2. Fair values of financial instruments

The carrying value of financial instruments, as recorded in the consolidated balance sheets for the fiscal years ended March 31, 2012 and 2011, their fair value,
and the differences are as follows. Financial instruments whose fair value cannot be reliably determined are not included. (see Note 2.)

Carrying value (*4)
Fair value (*4)
(1) Cash and cash equivalents

(2) Notes and accounts receivable (*1)
(3) Marketable securities and investment securities
69,600
74,449
15,711
69,600
74,449
15,711
Unrealized gain (loss)
Total assets
(1) Accounts payable
(2) Short-term borrowings
(3) Commercial paper
(4) Accrued income taxes
(5) Bonds
(6) Long-term borrowings (*2)
Total liabilities
Derivative transactions (*3)
159,760
(28,817)
(15,517)
(2,000)
(1,905)
(20,000)
(38,732)
(106,972)
(212)
159,760
(28,817)
(15,517)
(2,000)
(1,905)
(19,160)
(38,741)
(106,142)
(212)

839
(8)
831

*1. Allowance for doubtful accounts is deducted from trade and notes receivable.
*2. Long-term borrowings includes long-term borrowings payable within one year and other long-term borrowings.
*3. Credit or debt occurring as a result of derivative transactions are recorded as net amounts. Net debt is indicated by brackets ( ).
*4. Liabilities are indicated by brackets ( ).
58


Carrying value (*4)
Fair value (*4)
(1) Cash and cash equivalents

(2) Notes and accounts receivable (*1)
81,762
64,368
24,497
81,762
64,368
24,497
Total assets
(1) Accounts payable
(2) Short-term borrowings
(3) Commercial paper
(4) Accrued income taxes
(5) Bonds
(6) Long-term borrowings (*2)
Total liabilities
Derivative transactions (*3)
170,628
(25,845)
(6,908)
(5,000)
(4,838)
(10,000)
(53,638)
(106,230)
(292)
170,628
(25,845)
(6,908)
(5,000)
(4,838)
(10,000)
(53,786)
(106,377)
(292)

(147)
(147)

*1. Allowance for doubtful accounts is deducted from trade and notes receivable.
*2. Long-term borrowings includes long-term borrowings payable within one year and other long-term borrowings.
*3. Credit or debt occurring as a result of derivative transactions are recorded as net amounts. Net debt is indicated by brackets ( ).
*4. Liabilities are indicated by brackets ( ).
Note 1.
Method for calculation of fair value of financial instruments, available-for-sale securities and derivative transactions
Assets
(1) Cash and cash equivalents (2) Notes and accounts receivable
The fair value of cash and cash equivalents and notes and accounts receivable is approximate to book value due to the short timeframe in which they are
settled, and these items are therefore recorded at book value.
The fair value of marketable securities and investment securities is measured at the quoted market price of the stock exchange. The fair value of marketable
securities, which consist of negotiable certificates of deposit and MMF, are approximate to book value due to the short timeframe in which they are settled,
and this item is therefore recorded at book value.
Liabilities
(1) Accounts payable (2) Short-term borrowings (3) Commercial paper (4) Accrued income taxes
Fair value is approximate to book value due to the short timeframe in which they are settled, and these items are therefore recorded at book value.
(5) Bonds (6) Long-term borrowings
Fair value of bonds and long-term borrowings is calculated using the present value, which is the sum of principal and interest discounted at the estimated rate
for procuring a similar loan at the time of calculation.
Derivative transactions
Please refer to the note on DERIVATIVE TRANSACTIONS.
Note 2.
Financial instruments whose fair value cannot be reliably determined
Classification
Stocks in non-listed companies
March 31, 2012

4,666
March 31, 2011

4,993
Note: Marketable securities and investment securities do not include these financial instruments for which it is extremely difficult to determine fair value because no quoted market price is available.
59

Note 3.
Cash and cash equivalents, notes and accounts receivable with contractual maturities occurring after the settlement date
FY2012
Due within one year

Marketable securities and investment securities
Available-for-sale securities with expiration date
Other
Total
Commercial paper
Bonds
Total
Due after one year and

within five years
Due after five years and

within ten years
Due after ten years
69,600
74,449
4,546
148,596
15,517
2,000

15,045
32,562

23,687
23,687

20,000

20,000
FY2011
Due within one year

Marketable securities and investment securities
Available-for-sale securities with expiration date
Other
Total
Commercial paper
Bonds

within five years
Due after five years and

within ten years
Due after ten years
81,762
64,368
13,700
159,830
6,908
5,000

16,966

36,671

10,000

28,875
36,671
10,000
Total
SECURITIES
1. Details of marketable available-for-sale securities
March 31, 2012

Type
Acquisition cost
Carrying value
March 31, 2011

Unrealized gain
(loss)
Acquisition cost
Carrying value
Unrealized gain
(loss)
Securities with carrying value

exceeding acquisition cost
1. Stocks
2. Bonds
3. Others
Sub total
3,230

3,230
10,456

10,456
7,226

7,226
3,624

3,624
10,670

10,670
7,045

7,045
666
100
4,546
5,313
8,543
609
100
4,546
5,255
15,711

(57)

(57)
7,168
33
100
13,700
13,833
17,457
27
100
13,700
13,827
24,497

(6)

(6)
7,039
Securities with carrying value not

exceeding acquisition cost
1. Stocks
2. Bonds
3. Others
Sub total
Net total
Note: For FY2012 and FY2011, unlisted securities (recorded in the consolidated financial statements at totals of 4,666 million and 4,993 million respectively) are deemed excessively difficult to
assign a fair value to, as they are not traded in the market. Accordingly, they are not included in the above table.
2. Sales of available-for-sale securities

This disclosure is omitted as the total amount of gains (losses) on sales are not material for both FY2012 and FY2011.
60

DERIVATIVE TRANSACTIONS
Derivative transactions for which hedge accounting is not applied
1. Currency-related
For FY2012
Classification
Type of transaction
Contract amount
Portion due after one year
Fair value
Non-market transaction
Forward exchange
contracts:
(Thousands of euros)
(Thousands of euro)
(Millions of yen)
(Millions of yen)
Remnimbi short
commitment
1,650
(6)
(6)
Romanian leu short

commitment
84,000
88
88
Yen long commitment
64,327
104
104
Romanian leu long

commitment
10,200
18
18
Note: The fair value of transactions is based on prices disclosed by financial institutions.
For FY2011
Classification
Type of transaction
Contract amount
Fair value
Forward exchange
contracts;
Euro short commitment
(Thousands of euros)
197,341
(Thousands of euro)
(Millions of yen)
(337)
(Millions of yen)
(337)
2. Interest-rate related
For FY2012
Classification
Type of transaction
Contract amount
Fair value
Interest rate swap

contracts:
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
Fixed receivables and

variable payables
10,000
10,000
184
184
Variable receivables and

fixed payables
10,000
10,000
(44)
(44)
Contract amount
Fair value
(Millions of yen)
10,000
(Millions of yen)
10,000
(Millions of yen)
8
(Millions of yen)
8
Contract amount
Fair value
(Thousands of US dollars)
(Millions of yen)
Accounts receivable
17,500
(36)
Accounts receivable
Accounts receivable
17,700
33,400
9
(105)
For FY2011
Classification
Type of transaction
Interest rate swap
contracts; fixed
receivables and
variable payables
Derivative transactions for which hedge accounting is applied

1. Currency-related
For FY2012
Hedge accounting method
Type of transaction
Basic method
Forward exchange
contracts
US dollar
short commitment
Currency option contracts
US dollar long put options
US dollar short call options
Hedged items
61

For FY2011
Basic method
Type of transaction
Currency option contracts;
US dollar long put options
Hedged items
Contract amount
30,000

Fair value
(Millions of yen)
37
Hedged items
Contract amount
Fair value
(Millions of yen)
7,486
(Millions of yen)
4,706
(Millions of yen)
(87)
Hedged items
Contract amount
Fair value
(Millions of yen)
12,512
(Millions of yen)
7,486
(Millions of yen)
(146)
Accounts receivable
2. Interest rate-related
For FY2012
Special method for
interest rate swaps
Type of transaction
Interest rate swap
contracts;
Variable receivables
and fixed payables
For FY2011
Special method for
interest rate swaps
Type of transaction
Interest rate swap
contracts;
variable receivables
and fixed payables
EMPLOYEES PENSION AND RETIREMENT BENEFITS

1. Outline of retirement benefit plan
The Company and its domestic subsidiaries provide a defined contribution pension plan and a lump sum severance payment plan. Lump sum payments are
calculated according to a points system, with employees accumulating points during the term of their employment.
Certain foreign subsidiaries provide defined contribution and defined benefit pension plans.
In certain circumstances additional retirement payments may also be payable.
2. Liabilities for employees pension and retirement benefits
The following table sets forth the funded status of the retirement benefit plan as of March 31, 2012 and 2011.
Retirement benefit obligations

Plan assets
Unfunded benefit obligations
Unrecognized transition obligation
Unrecognized actuarial gain or loss
Unrecognized prior service cost
Net amount recorded on consolidated balance sheet
Prepaid pension costs
Reserve for retirement benefits
March 31, 2012

(7,859)
94
(7,764)
(75)
290
(531)
(8,080)

(8,080)
March 31, 2011

(7,787)
66
(7,720)
(95)
286
(574)
(8,104)

(8,104)
3. Employees pension and retirement benefit expenses

Service cost
Interest cost
Expected return on plan assets
Amortization of translation obligation
Amortization of actuarial gain or loss
Amortization of prior service cost
Other (Note)
Total retirement benefit expenses
FY2012
243
330
(3)
(19)
37
(66)
289
811
FY2011
295
332
(3)
(19)
34
(66)
364
937
Note: Other represents the amount of premiums paid into defined contribution pension plan.
62

4. Assumptions used in calculating retirement benefit obligation
Method of allocating estimated amount of all retirement benefits

to be paid at future retirement dates
Discount rate
The Company and domestic consolidated subsidiaries:
Foreign consolidated subsidiaries:
Expected rate of return on plan assets
Foreign subsidiaries:
Amortization of prior service cost (note 1)
Amortization of actuarial gain or loss (note 2)
Amortization of translation obligation
FY2012
FY2011
The straight-line method over the

estimated years of service of the
eligible employees
The straight-line method over the

estimated years of service of the
eligible employees
2.00%

5.25 to 8.13%
2.00%

5.30 to 8.13%
Mainly 5.00%
15 years
15 years
15 years
Mainly 5.00%
15 years
15 years
15 years
Note 1: Expenses are amortized using the straight-line method for a certain number of years within the average remaining service period of employees as incurred.
Note 2: At the Company and domestic subsidiaries, actuarial gain or loss is amortized on a straight-line basis over a certain number of years within the average remaining service period of
employees as recognized at the end of each applicable financial year, and expensed from the following year. At foreign subsidiaries a corridor approach is used for the amortization of
actuarial gain or loss.
STOCK OPTIONS
No items are applicable for FY2012 and FY2011.
DEFERRED INCOME TAXES

1. Major components of deferred tax assets and liabilities
Deferred tax assets:

Inventories
Fixed assets
Accrued expenses and warranty reserve
Reserve for employees retirement benefits
Reserve for directors retirement benefit
Tax losses carried forward
Tax credit
Other
Total gross deferred tax assets
Valuation allowance
Total deferred tax assets
Deferred tax Liabilities:
Undistributed earnings at foreign subsidiaries
Unrealized gain on other securities
Other
Total deferred tax liabilities
Net deferred tax assets
March 31, 2012
March 31, 2011
1,547
4,777
7,918
1,742
177
5,132
816
1,498
23,610
(6,733)
16,877
1,673
5,054
9,060
1,872
948
3,972
1,030
1,476
25,089
(10,317)
14,771
(5,733)
(2,536)
(26)
(8,295)
8,581
(5,310)
(2,851)
(133)
(8,295)
6,476
Net deferred tax assets are included in the following accounts on the balance sheet as of March 31, 2012 and 2011, respectively.
Current assetsDeferred income tax asset

Fixed assetsDeferred income tax asset
Current liabilitiesDeferred income tax liability
Non-current liabilitiesDeferred income tax liability
March 31, 2012

8,351
8,360
(9)
(8,120)
March 31, 2011

8,056
4,491
(175)
(5,895)
63

2. Main reconciliation items between the statutory income tax rate and the effective income tax rate
Statutory tax rate
Adjustments:
Expenses not deductible for tax purposes
Credit for research and development expenses
Lower tax rates applied to foreign subsidiaries
Deferred tax liabilities on undistributed earnings
Change in valuation allowance
Adjustment of deferred tax assets at end of period due to change in tax rate
Other
Effective income tax rate
March 31, 2012

40.5%
March 31, 2011

40.5%
0.8%
(1.1%)
(13.9%)
(20.4%)
5.7%
4.5%
(2.5%)
13.6%
1.6%
(0.9%)
(9.4%)
0.5%
(0.7%)
(0.4%)
31.2%
Adjustment of amounts of deferred tax assets and deferred tax liabilities due to changes in tax rate for income taxes
In line with the promulgation on December 2, 2011 of the Act for Partial Revision of the Income Tax Act, etc. for the Purpose of Creating Taxation System
Responding to Changes in Economic and Social Structures (Act No. 114 of 2011) and Act on Special Measures for Securing Financial Resources Necessary
to Implement Measures for Reconstruction following the Great East Japan Earthquake (Act No. 117 of 2011), effective the fiscal year starting April 1, 2012,
the statutory corporate income tax rate has been lowered, and a special corporate income tax for recovery has been introduced. As a result, the normal effective
statutory tax rate, which is used in the calculation of deferred tax assets and deferred tax liabilities, has changed from the previous level of 40.5% to 37.8% for
those resulting from temporary differences expected to be eliminated in the period from the fiscal year starting April 1, 2012 to the fiscal year starting April 1,
2014 and to 35.4% for those resulting from temporary differences expected to be eliminated from the fiscal year starting April 1, 2015 onwards.
The effect of this change was to decrease deferred tax assets (net of deferred tax liabilities) by 243 million, and increase income taxes (deferred) by 606
million yen, unrealized gains on available-for-sale securities by 367 million, and deferred losses on hedging instruments by 3 million.
BUSINESS COMBINATIONS
1. Overview of business combination
Business combination resulting from acquisition
(1) Name and main business of acquired companies
Name of acquired companies:
BAE Systems Safety Products, Inc.

Schroth Safety Products GmbH
Main business:
Manufacture and sale of seat belts and other vehicle safety systems
(2) Main reasons for business combination
Expansion of business relating to safety systems for vehicles other than passenger automobiles
(3) Date of business combination: March 5, 2012
(4) Legal form of business combination: Acquisition of shares for cash consideration
(5) Name of company after business combination
The name BAE Systems Safety Products, Inc. changed to Takata Protection Systems, Inc.
(6) Percentage of voting rights acquired: 100%
(7) Main basis of identification of acquirer
Takata Group offered to acquire all shares of the acquired companies for a cash consideration.
2. Period in which results of acquired companies are included in financial statements

As the acquisition date is deemed to be March 31, 2012, the results of the acquired companies are not included in the consolidated financial statements.
3. Acquisition cost of acquired companies and breakdown

Price of acquisition
Expenses directly related to acquisition (advisory fees, etc.)
Total acquisition cost
(Millions of yen)
2,566
143
2,710
4. Amount of goodwill incurred, reasons for incurrence and amortization method and period
(1) Amount of goodwill incurred
914 million
(2) Reasons for incurrence
As the acquisition cost exceeds the net amount allocated to the assets and liabilities assumed, the excess amount has been recorded as goodwill.
(3) Amortization method and period
Straight-line amortization over period in which investment effects last (5 years)
64

5. Amount and main constituents of assets and liabilities assumed on date of business combination
(Millions of yen)
Current assets
Fixed assets
Total assets
Current liabilities
Long-term liabilities
Total liabilities
1,039
1,378
2,417
461
159
621
6. Estimated amount of impact on consolidated statements of income for the fiscal year and method of estimation assuming that the
business combination has been completed on the first day of the fiscal year
The disclosure is omitted, as the amount of impact is negligible.
ASSET RETIREMENT OBLIGATIONS

This disclosure is omitted due to immateriality.
RENTAL PROPERTY
The Company is maintaining buildings and sites of former factories in an idle state, where operations have ceased due to factory closures and transfers.
Carrying value
At start of period
Change during year
At end of period
Fair value at end of period
March 31, 2012
March 31, 2011
1,510
(227)
1,282
1,455
1,571
(60)
1,510
1,685
Notes:
1. Carrying value is equal to acquisition cost minus accumulated depreciation and accumulated impairment losses.
2. The changes during the year ended March 31, 2012 are mainly attributable to a 217 million decrease in idle property concomitant with the sales of idle factory buildings in Asia. The changes
during the year ended March 31, 2011 are mainly attributable to a 313 million increase in idle property concomitant with partial factory closures along with a 365 million decrease attributable to the re-commissioning of idle property in the Americas.
3. Fair value at the end of the period is calculated based on valuations by external consultants.
SEGMENT INFORMATION
SEGMENT INFORMATION
1. Overview of reporting segments
Takata Group operates globally in the manufacture and sale of automotive safety systems and products, and is managed under the four regions of Japan, the
Americas, Europe, and Asia. Each region is managed as an independent unit, expanding business activities based on the development of a comprehensive
strategy for each region. The Groups results are therefore reported based on these four segments. In each segment, Takata handles a wide range of automotive
safety products, including seat belts and airbags, along with steering wheels, interior trim, child seats, and many other items.
The main countries and regions in segments other than Japan are:
The Americas:
United States, Brazil and Mexico
Europe:
Germany, Holland, Romania, Poland, the Czech Republic
Asia:
China, the Philippines, Thailand, South Korea and India
2. Method of calculating amounts for net sales, operating income or loss, assets, liabilities, and other items by reporting segment
The accounting method used for business segments is the same as that described in SIGNIFICANT ACCOUNTING POLICIES. Inter-segment sales are calculated
based on third-party transaction prices.
65

3. Net sales, operating income or loss, assets, liabilities, and other items by reporting segment
FY2012
Japan
The Americas
Europe
Asia
Total
71,022
31,243
140,465
12,670
110,476
6,159
60,772
15,415
382,737
65,488
Total
102,265
Segment operating income
4,106
Segment assets
190,558
Other items
2,189
Goodwill amortization

Investment in equity method affiliates
Increase in tangible fixed assets or
3,406
intangible fixed assets
153,135
128
142,248
116,635
5,785
149,436
76,188
3,581
67,145
4,309

164
4,231

6,329
6,069
Net sales
Sales to external customers
Inter-segment sales or transfers
Eliminations and
Corporate
(Note 1.)

Consolidated
(Note 2.)
(65,488)
382,737

448,225
13,602
549,388
(65,488)
15
(219,669)
382,737
13,618
329,718
2,462

13,193

164

72

13,193
72
164
3,618
19,422
19,422
Notes:
1. Eliminations and corporate in segment operating income of 15 million includes 88 million in eliminations of inter-segment sales and 72 million in goodwill amortization. Eliminations and
corporate in segment assets of 219,669 million corresponds to elimination of inter-segment sales.
2. Segment operating income is adjusted to operating income as recorded in the consolidated statements of income.
FY2011
Japan
The Americas
Europe
Asia
Total
77,593
35,289
144,675
12,789
103,531
4,946
65,076
17,244
390,876
70,268
Total
112,882
Segment operating income
9,262
Segment assets
195,610
Other items
2,430
Goodwill amortization

Investment in equity method affiliates
Increase in tangible fixed assets or
1,529
intangible fixed assets
157,464
3,914
136,854
108,477
4,117
145,637
82,320
9,625
61,958
5,088

569
4,332

6,132
4,465
Net sales
Inter-segment sales or transfers
Eliminations and
Corporate
(Note 1.)

Consolidated
(Note 2.)
(70,268)
390,876

461,145
26,919
540,060
(70,268)
(101)
(216,131)
390,876
26,818
323,928
2,574

14,425

569

72

14,425
72
569
3,584
15,712
15,712
Notes:
1. Eliminations and corporate in segment operating income of 101 million includes 29 million in eliminations of inter-segment sales and 72 million in goodwill amortization. Eliminations and
corporate in segment assets of 216,131 million corresponds to elimination of inter-segment sales.
2. Segment operating income is adjusted to operating income as recorded in the consolidated statements of income.
RELATED INFORMATION
1. Results by product or service

FY2012
Seat belts
109,996
Airbags
167,022
Other
105,718
Total
382,737
Seat belts
113,870
Airbags
179,150
Other
97,854
Total
390,876
FY2011
66

2. Results by geographical segment

(1) Net sales
FY2012
Japan
71,667
United States
103,891
Germany
63,554
China
42,658
Other
100,965
Total
382,737
Total
390,876
Note: Country and regional segments are categorized on the basis of geographic proximity to customer locations.
FY2011
Japan
78,287
United States
121,547
Germany
60,984
China
43,690
Other
86,366
United States
16,964
Germany
12,334
Other
31,108
Total
75,323
United States
15,758
Germany
13,099
Other
29,871
Total
72,502
(2) Tangible fixed assets
FY2012
Japan
14,916
FY2011
Japan
13,772
3. Results by customer
No single customer accounts for more than 10% of Takata Groups net sales. As such, there are no applicable items for a breakdown of sales by customer in
FY2012 and FY2011.
INFORMATION CONCERNING IMPAIRMENT LOSSES ON FIXED ASSETS BY REPORTING SEGMENT

FY2012
No items are applicable.
FY2011
Japan
The Americas
366
Europe
266
Eliminations and
Corporate
Asia
688
Total
1,321
INFORMATION CONCERNING GOODWILL AMORTIZATION AND UNAMORTIZED BALANCE BY REPORTING SEGMENT

FY2012
Japan
Amortization

Unamortized balance
The Americas

Europe

914
Asia
Eliminations and
Corporate
72
562
Total
72
1,476
Note: Eliminations and Corporate relates to a business merger implemented before April 1, 2010. As such, it is not categorized by reporting segment.
FY2011
Japan
Amortization

Unamortized balance
The Americas

Europe

Asia

Eliminations and
Corporate
72
634
Total
72
634
Note: This information relates to a business merger implemented before April 1, 2010. As such, it is not categorized by reporting segment.
INFORMATION CONCERNING GAINS ON NEGATIVE GOODWILL BY REPORTING SEGMENT

No Items are applicable.
67

INFORMATION ON RELATED PARTIES

For FY2012
TRANSACTIONS WITH RELATED PARTIES
(1) Transactions between the Company and related parties
a) Company directors, major shareholders (individuals only), etc.
Type
Name
Location
Capital
(Millions of yen)
Type of
business, or
occupation
Percentage of
Relationship
voting stock
with Company
owned by Takata
Corporation
(owned in Takata
Corporation) (%)
Transaction
details
Transaction
amount
(Millions of yen)
Account of
balance
Balance at
fiscal year-end
(Millions of yen)
Company in
which directors
or close
relatives hold a
majority of the
voting stock
STT
Inc.
(see Note)
Shinagawa-ku
Tokyo
100
Manufacture
and sale of
lubricants
Raw material
purchasing, etc.
(see Note)
190
Accounts
payable
23
Raw material
purchasing, etc.
Information on conditions of transactions and policy for determination of conditions, etc.

Note: Takata Corporations president Shigehisa Takada and close relatives hold 90% of the voting rights (including indirect holdings) of STT Inc. Transactions with STT Inc. are based on
consideration of normal transaction conditions and market prices.
(2) Transactions between the Companys consolidated subsidiaries and related parties
Type
Name
Location
Capital
Type of
business, or
occupation
Percentage of
Relationship
voting stock
with Company
owned by Takata
Corporation
(owned in Takata
Corporation) (%)
Transaction
details
Transaction
amount
(Millions of yen)
Account of
balance
Balance at
fiscal year-end
(Millions of yen)
Company in
which directors
or close
relatives hold a
majority of the
voting stock
STT
Inc.
(see Note)
Shinagawa-ku
Tokyo
100 million
Manufacture
and sale of
lubricants
Raw material
purchasing, etc.
Raw material
purchasing, etc.
(see Note)
1,372
Accounts
payable
147
Company in
which directors
or close
relatives hold a
majority of the
voting stock
STT (Philippines) Laguna

Inc.
Philippines
Peso 3 million
Manufacture
and sale of
lubricants
Raw material
purchasing, etc.
Raw material
purchasing, etc.
(see Note)
826
Accounts
payable
115

Note: Takata Corporations president Shigehisa Takada and close relatives hold 90% of the voting rights (including indirect holdings) of STT Inc. and STT (Philippines) Inc. is its subsidiary.
Transactions with both companies are based on consideration of normal transaction conditions and market prices.
For FY2011
TRANSACTIONS WITH RELATED PARTIES
(1) Transactions between the Company and related parties
Type
Name
Location
Capital
(Millions of yen)
Type of
business, or
occupation
Percentage of
Relationship
voting stock
with Company
owned by Takata
Corporation
(owned in Takata
Corporation) (%)
Transaction
details
Transaction
amount
(Millions of yen)
Account of
balance
Balance at
fiscal year-end
(Millions of yen)
Company in
which directors
or close
relatives hold a
majority of the
voting stock
STT
Inc.
(see Note 1)
Shinagawa-ku
Tokyo
100
Manufacture
and sale of
lubricants
Raw material
purchasing, etc.
Raw material
purchasing, etc.
(see Note 1)
121
Accounts
payable
16
Company in
which directors
or close
relatives hold a
majority of the
voting stock
TKR Co., Ltd.

(see Note 2)
Minato-ku
Tokyo
10
Holding of real
estate
None
Purchase of
real estate
(see Note 2)
186

Note 1: Takata Corporations president Shigehisa Takada and close relatives hold 85% of the voting rights (including indirect holdings) of STT Inc. Transactions with STT Inc. are based on
Note 2: Takata Corporations president Shigehisa Takada and close relatives hold 100% of the voting rights (including indirect holdings) of TKR Co., Ltd. The price of real estate acquisitions is
determined with reference to a registered valuer.
68

(2) Transactions between the Companys consolidated subsidiaries and related parties
Type
Name
Location
Capital
Type of
business, or
occupation
Percentage of
Relationship
voting stock
with Company
owned by Takata
Corporation
(owned in Takata
Corporation) (%)
Transaction
details
Transaction
amount
(Millions of yen)
Account of
balance
Balance at
fiscal year-end
(Millions of yen)
Company in
which directors
or close
relatives hold a
majority of the
voting stock
STT
Inc.
(see Note)
Shinagawa-ku
Tokyo
100 million
Manufacture
and sale of
lubricants
Raw material
purchasing, etc.
Raw material
purchasing, etc.
(see Note)
1,203
Accounts
payable
91
Company in
which directors
or close
relatives hold a
majority of the
voting stock
STT (Philippines) Laguna

Inc.
Philippines
Peso 3 million
Manufacture
and sale of
lubricants
Raw material
purchasing, etc.
Raw material
purchasing, etc.
(see Note)
1,279
Accounts
payable
76

Note: Takata Corporations president Shigehisa Takada and close relatives hold 90% of the voting rights (including indirect holdings) of STT Inc. Transactions with STT Inc. are based on
PER SHARE INFORMATION

FY2012
FY2011

1,924.80
143.55

1,855.48
219.31
Note 1: Diluted net income per share has been omitted due to no residual shares.
Note 2: Calculations for basic net income per share are based on the following:
(Millions of yen, rounded down, unless stated otherwise)
Years ended:
Net income
Net income related to common stock
Average number of shares outstanding during period (Thousands of shares)
March 31, 2012

11,937
11,937
83,161
March 31, 2011

18,237
18,237
83,161
SIGNIFICANT SUBSEQUENT EVENTS

No items are applicable.
ADDITIONAL CONSOLIDATED FINANCIAL INFORMATION

Corporate bond details
Company name
Bond
Issue date
Takata Corporation
No. 1 Unsecured
Straight Bond
December 15, 2010
Takata Corporation
No. 2 Unsecured
Straight Bond
March 6, 2012
Total
Balance as of
March 31, 2011
(Millions of yen)
Balance as of
March 31, 2012
(Millions of yen)
Interest rate
(% per year)
Collateral
Maturity date
10,000
10,000
1.02
None
December 15, 2017
10,000
0.85
None
March 6, 2019
10,000
20,000
Borrowing details
Category
Balance as of
March 31, 2011
(Millions of yen)
6,908
Long-term borrowings due within 1 year
16,966
Lease financing due within 1 year

Long-term borrowings (excluding portion due within 1 year)
36,671
Lease financing (excluding portion due within 1 year)

Other interest-bearing debt
Commercial paper (due within 1 year)
5,000
Total
65,546
Balance as of
March 31, 2012
(Millions of yen)
Average interest rate

(% per year)
Repayment date
15,517
15,045

23,687

0.9%
1.6%

1.8%

20132015

2,000
56,249
0.1%

Notes:
1. Average interest rate is the weighted average on the borrowings balance outstanding at end of period
2. Anticipated repayment amount of long-term borrowings (excluding portion due within 1 year) over 5 years from March 31, 2012 are as follows:
69


within two years
(Millions of yen)
Due after two years and

within three years
(Millions of yen)
11,369
7,832
Long-term borrowing
Due after three years and

within four years
(Millions of yen)
4,484
Due after four years and

within five years
(Millions of yen)
Asset retirement obligation details

Under Article 92, clause 2 of the Regulations on Presentation of Financial Statements, the amount of asset retirement obligations as of the start and end of the
fiscal year ended March 31, 2012 has been omitted as it does not exceed 1% of total liabilities and net assets.
Other
Consolidated financial information by quarter

(Cumulative period)
Net sales (Millions of yen)
Net income before tax (Millions of yen)
Net income (Millions of yen)
Net income per share (Yen)
First quarter
86,117
1,110
394
4.74
Second quarter
181,753
5,574
3,068
36.90
Third quarter
276,545
7,390
7,539
90.67
Fiscal year
382,737
13,499
11,937
143.55
(Accounting period)
Net income per share (Yen)
First quarter
4.74
Second quarter
32.16
Third quarter
53.76
Fourth quarter
52.87
70
Independent Auditors Report
71
Investor Information
Company outline
Shares
Shigehisa Takada
Listed exchanges:

Tokyo Stock Exchange

1st Section
Stock code 7312
Capital:
41,862 million
Number of shares authorized:
325,473,600
Number of employees:
36,858
Number of shares issued: 83,161,700
Company name:
Takata Corporation
President:
(consolidated)
Business:

Manufacture and sale of seat

belts, airbags, steering wheels,
child restraint systems, etc.
Production facilities:
53 plants in 20 countries
Number of shareholders:
9,852
Major shareholders
Top ten shareholders as of March 31, 2012
Shareholder
Head office
TKJ Corporation
12-31 Akasaka 2-Chome

Minato-ku, Tokyo, 107-8508 Japan
www.takata.com
Shareholder composition
0.3 %
Securities companies
13.9 %
(231 thousand shares)
Individual and
other shareholders
(11,576 thousand shares)
17.6 %
Financial
institutions
0.0 %
Shares held
(thousands)
% of total
43,361
52.1
Shigehisa Takada
3,650
4.4
The Master Trust Bank of Japan, Ltd.
2,772
3.3
Japan Trustee Services Bank, Ltd.
2,332
2.8
Akiko Takada
1,711
2.1
National Mutual Insurance Federation of

Agricultural Cooperatives
1,616
1.9
Mellon Bank Treaty Clients Omnibus Account
1,475
1.8
State Street Bank and Trust Company
1,332
1.6
Sumitomo Mitsui Banking Corporation
1,300
1.6
Honda Motor Co., Ltd.
1,000
1.2
Treasury stock
(0 thousand shares)
Visit our website

A wide range of regularly updated corporate and investor
information is available at our global website www.takata.com
as of
March 31, 2012
(14,671 thousand
shares)
12.8 %
55.3 %
Foreign corporations
Other corporations
72

TAKATA, Documento Oficial

Uploaded by

Copyright:

Available Formats

TAKATA, Documento Oficial

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

TAKATA, Documento Oficial

Uploaded by

Copyright:

Available Formats

What is Takata Corporation's mission statement?

What is Takata Corporation's mission statement?

What are the three parts of Takata's philosophy?

What are the three parts of Takata's philosophy?

Takata Corporation

>> COVER >> CONTENTS >> FINANCIAL SECTION

Message from the President

Total Safety Systems

Global Business Overview

Research & Development

Takata in the News

Board of Directors, Corporate Auditors,

Our mission - your safety.

>> COVER >> CONTENTS >> PROFILE >> FINANCIAL SECTION

Takata remains firmly committed to contributing to society

For the year:

Net assets per share (yen)

Basic net income per share (yen)

Diluted net income per share (yen)

Capital adequacy ratio (%)

Net assets per share

Basic net income per share

Message from the President

PRESIDENT AND COO

Strong financial status maintained

Slight increase in global automobile production

Message from the President (cont.)

Growth strategy focuses on most promising markets

our business in China

with both domestic and

Expanding our network in China, the worlds largest car market

and are aligning our

Thailand and Indonesia

Brazil and South America

Brazil is another nation

Message from the President (cont.)

Creating a truly global organization and outlook

from mature markets to

major local automakers

looking beyond their

Growing our core and expanding into related areas

Message from the President (cont.)

Championing safety: our evolving role

In some respects, our

with the automotive

industry have been

However, today society

and our industry are

and by new modes of transport.

the rapid growth of

Acknowledging the past but focusing relentlessly on the future

of safety and security

We very much appreciate your ongoing interest and support.

Total Safety Systems

Our product range encompasses the

full spectrum of passive and active

automotive safety technology, and

be found throughout the anatomy of