2．JTEKT Through the Lens of Intellectual Property Data

JTEKT aims to transform itself into a comprehensive solution provider by leveraging the intellectual property it has accumulated over the years. In this section, we introduce our core strengths using key intellectual property data.

1）Accumulated Intellectual Property

Before the merger in 2006, Koyo Seiko and Toyoda Machine Works had filed approximately 25,000 patent applications in Japan, including utility models and filings by group companies. Since the merger, JTEKT has pursued new value creation by integrating the technologies of both companies. Nearly 20 years later, the total number of patent filings has reached approximately 40,000ーclear evidence of the deepening and expansion of our technological capabilities. Behind these patents lies an even greater volume of know-how, which holds value equal to or greater than the patents themselves. This accumulated intellectual property is the foundation of JTEKT's competitive strength and underpins our ability to achieve sustainable growth in the global marketplace.

Cumulative Number of Japanese Patent Applications Filed by JTEKT Group (including utility models)

2）Two Core Strengths

Our strength lies in possessing world‑class technological capabilities and market competitiveness in two distinct fields: automotive components and industrial machinery. In the automotive sector, as a member of the Toyota Group, we supply highly competitive products globally. In particular, our steering systems hold the No.1 share in the global market.
For more than 20 years since the establishment of JTEKT, we have focused our development investments, creating innovative products while steadily building a strong intellectual property portfolio. Going forward, we will continue to lead the global market by developing systems and solutions that support next‑generation mobility, including EVs, autonomous driving, and Software‑Defined Vehicles (SDVs).

Cumulative Number of Patent Applications for Steering Systems (Global family count since 2006)

We offer a broad lineup of steering systemsーfrom those for compact cars to large vehicles, including electric, hydraulic, and steer‑by‑wire (SBW) systemsーto meet diverse customer needs. Supporting this strength, we hold the No.1 position worldwide in the number of patent applications filed.

In the industrial machinery segment, we provide foundational productsーsuch as bearings and machine toolsーto customers around the world. Nearly a century has passed since our founding, during which we have consistently played an essential role in supporting industrial development globally.

Cumulative Number of Patent Applications for Machine Tools (Cutting and Grinding) (Japanese applications since 2006)

A distinctive feature of our machine tool technologies is that we possess both major machining capabilitiesーcutting and grinding. In these technological domains, we file the highest number of patent applications among Japan's leading machine tool manufacturers.

3）New Core Competencies

At the time of the 2006 merger, our R&D activities were primarily focused on strengthening the competitiveness of our core businesses. However, as technological integration progressed, we expanded our R&D scope to lay the foundation for new business creation. As a result, the share of patent applications related to our core businessesーwhich accounted for approximately 75% at the time of the mergerーhas declined to around 55% today, while the share in growth areas has increased from roughly 25% to about 45%.This shift reflects our ongoing commitment to investing in new technological domains and foundational technologies. The new technologies generated through these efforts are becoming emerging core competencies for JTEKT, expanding the range of solutions we can provide. This continued deepening and broadening of our technological base not only enhances the value we deliver to customers but also creates new business opportunities that contribute to solving social issues.

JTEKT Group Patent Application Technology Fields

3．Aiming to Become a Solution Provider

Across a wide range of businessesーincluding the development, production, and sales of automotive components, bearings, and machine tools, as well as after‑sales servicesーwe have built a unique portfolio of intellectual assets. As new social challenges continue to emerge, we aim to remain a company that the world truly needs by connecting the technologies we have cultivated and proactively proposing solutions.To fully leverage our technological strengths, we are establishing Technology Platforms that bring together our core technical competencies. By integrating technologies across business boundaries, we seek not only to enhance the added value of existing products but also to deliver solutions in new domains, including next‑generation mobility and social infrastructure.

Our Intellectual Property Activities

1．Basic Policy

Under the Medium‑Term Business Plan formulated in 2024, we are advancing our growth through a dual‑axis approach:
Axis I: Adding higher value to existing products
Axis II: Challenging new business areas
First, by combining the diverse core technologies and core competencies we have cultivated over many years, we strengthen the added value of our existing product portfolio and improve investment efficiency (Axis I). The resources generated through these initiatives are then reinvested to propose solutions in new domains based on emerging issues and customer needs (Axis II).Through these two axes, we will drive our transformation into a solution provider.

As for our intellectual property (IP) strategy, our initiatives under Axis IーAdding higher value to existing productsーfocus on IP activities that protect and strengthen our businesses. To secure and sustain competitiveness, we file patents comprehensively to build a robust patent portfolio. At the same time, we conduct thorough freedom‑to‑operate analysis during development to ensure that our products do not infringe third‑party IP rights.Under Axis IIーChallenging new business areasーwe expand our efforts beyond strengthening our patent portfolio. We engage in a broader set of IP activities, including IP landscape analysis, open strategies, branding strategies, and partnership agreements, to promote partnerships and cultivate new markets.We call this integrated and more proactive approach to IP management "Solution IP Plus."

2．Promotion Structure

We ensure alignment between our management policies and our Group‑wide intellectual property (IP) strategy through the Intellectual Property Committee and the Group IP Management Meeting, each held once a year. At the FY2024 Intellectual Property Committee, we deliberated and decided on the IP policy and related initiatives that support our transformation into a solution provider.
The Patent Strategy Review Meeting, held twice a year, formulates IP strategies tailored to each business domain and executes IP activities that genuinely contribute to business performance. For example, in the Patent Strategy Review Meeting for the Automotive Components Business, we set target numbers for patent applications appropriate for the world's No.1 steering system manufacturer and define priority areas for building our patent portfolio. In parallel, at all Development Meetings, we verify patent clearance for third‑party rights and ensure that no development results are omitted from patent filings.
The Branding Meeting, also held twice a year, ensures consistency between the Group's branding policy and individual product branding from the perspectives of technology, sales, corporate communications, and business strategy. For products, technologies, and solutions, we assess the need to establish product brands and promote branding initiatives that communicate customer value and highlight our technological strengths.
Furthermore, the Counterfeit Measures Working Group, held twice a year, formulates global anti‑counterfeiting strategies and enables the strategic allocation of resources and planned implementation in regions and countries where infringement risks are high.

3．Intellectual Property Activities that Co-Create Solutions

Our company is advancing its transformation into a solution‑oriented business. We identify societal challenges and customer needs, co-create solutions with partners, and deliver these solutions to society and our customers through appropriate business models. The core competencies generated through this process are incorporated into our Technology Platform, where they serve as a foundation for the development of future solutions. Throughout this transformation, we recognize that intellectual property (IP) plays an essential role.

To accurately understand societal issues and customer needs, we leverage IP landscape analysis, making strategic use of intellectual property information. When formulating optimal business models, we apply insights from IP landscape analysis for positioning and then establish IP utilization strategiesーdetermining, for example, whether to adopt a closed strategy to strengthen competitiveness or an open strategy to promote partnerships. Furthermore, in the process of creating solutions, we protect our core competencies by building comprehensive patent portfolios and ensuring the confidentiality of key technical know‑how. These initiatives reinforce and expand our Technology Platform, strengthening the foundation for generating future solutions and supporting our evolution into a solution provider.

1）Solution IP Plus

Under "Axis II: Challenging new business areas" within our two‑axis management approach, we take an integrated approach to a wide range of IP‑related activitiesーnot only protecting our core competencies, but also promoting partnerships and expanding market opportunities. These activities include IP landscape analysis, open strategies, brand strategies, and the development of partnership agreements, all of which work collectively to support co‑creation and drive growth in new business areas.

Teams across relevant departments work together to conduct multifaceted examinations, such as:
"What are the customer needs?"
"What solutions should we provide, and under what business model?"
"Which existing seeds can be utilized?"
"What new seeds need to be created?"
"How should we promote the widespread adoption of the product or service?"
Based on this value‑creation story, we carry out a wide range of intellectual property activities in an integrated manner.

＜Example＞ Solution IP Plus for Pairdriver®

Achieving a society with zero traffic accidents requires the advancement and widespread adoption of autonomous driving technologies. Our Pairdriver® system controls the steering angle so that the vehicle can accurately follow the trajectory it determines. While it will take considerable time before fully autonomous drivingーwhere drivers are not involved at allーbecomes commonplace, drivers will need to operate the vehicle in coordination with the system during this transitional period. Pairdriver® enables seamless cooperation between the driver and the vehicle, providing enhanced safety and peace of mind. In addition, because it can be used not only on highways but also in urban areas and parking environments, it represents an Only One technology capable of accelerating the adoption of autonomous driving. We are currently building a patent portfolio of approximately 60 domestic and international patents, including those under examination, securing a No.1 & Only One position in this field. Furthermore, we continue to pursue research and development aimed at expanding and enhancing system functionality, while strategically strengthening and broadening our patent portfolio.

To expand the adoption of Pairdriver®, which supports the advancement and spread of autonomous driving, in addition to selling EPS (Electric Power Steering) systems equipped with Pairdriver®, we are also considering licensing the software. When providing Pairdriver®, we enter into partnership agreements, keeping the core elements closed while making the interface open, in order to maximize value.

We are also promoting branding initiatives that communicate the value of Pairdriver® from a customer's perspective. Pairdriver® enables the driver and the vehicle to operate as a seamless "pair," providing enhanced safety and peace of mind. To accelerate the advancement and broader adoption of autonomous driving, co‑creation with automakers is essential, and this intent is reflected in the product's name and logo.

As part of our branding activities, we offer test‑drives at our proving ground in Iga City, Mie Prefecture, where many customers, including automaker engineers, have experienced Pairdriver® and given positive feedback.

2）Utilization of Intellectual Property Information ー IP Landscape Analysis

Across the company, relevant departments share and utilize IP information in various situations. In product planning, for example, IP information is used to understand the latest technology trends and industry developments, supporting the development of competitive new products.
In creating new solution businesses, we effectively apply IP information at each stage of the process--from identifying customer challenges and analyzing competitors to formulating business strategies and business models--thereby enabling more refined and well‑grounded business planning.

Flow of Creating Solution Businesses

＜Example＞ Promoting social contribution through the broader deployment of Libuddy®

Our high‑heat‑resistant lithium‑ion capacitor Libuddy®, developed using our proprietary technologies, offers an exceptionally wide operating temperature range of -40 to 85°C, delivering output density and durability far beyond conventional products. These characteristics enable smaller, lighter, higher‑performance, and maintenance‑free power supply systems, contributing to the reduction of environmental impact and helping address societal challenges such as labor savings.To accelerate the social implementation of this technology, we make active use of IP landscape analysis. By analyzing several thousand patent documents related to power‑supply technologies and focusing on the technical challenges within each domain, we identify markets and applications where Libuddy®'s strengths can be fully leveraged. Based on this analysis, our technical teams conduct further evaluation, and our sales teams then engage in proposal activities targeting new customers.In this way, by utilizing patent information to connect customer needs with our core competencies, we are working to create new business opportunities.

3）Strategic Utilization of Intellectual Property ー Open & Close Strategy

To secure future competitiveness and promote partnerships, we protect our core competencies through patent portfolios and proprietary know‑how, expand our Technology Platform, and leverage these capabilities to create new solutions.To maximize the value generated from these technologies, we implement and advance an Open & Close Strategy. In open domains, we encourage other companies to use our technologies to foster partnerships and expand market size. In close domains, we limit external use to secure our share and maintain a competitive edge. By combining these approaches effectively, we promote the broader adoption of our technologies while strengthening our business advantage.

4）Creation and Protection of Core Competencies ーBuilding Patent Portfolios

We are increasing R&D investment in new domains that contribute to solving societal challenges and creating new businesses. In these new areas, we focus on thoroughly protecting our core competencies and building robust patent portfolios. At the same time, as the value of software and big data continues to rise, we protect our core competencies not only through patent filings but also by maintaining the confidentiality of proprietary know‑how.Going forward, we will leverage these intellectual assets to foster partnerships and drive growth in emerging business domains.

Number of Patent Applications / Proportion of Patent Applications Related to New Technology Areas and New Fields

We aim to become a solution provider that creates the future of mobility society. Key technologies shaping this future include electrification (EV), advanced driver assistance and autonomous driving (AD/ADAS), software‑defined vehicles (SDV), and cockpit innovation. We continue to advance development in these areas and file patents to protect the results of these efforts.

Number of patent applications related to next-generation mobility technologies Duplicate counts included

We identify key development themes for each businessーapproximately 30 themes per yearーand set target numbers for patent applications. Based on these targets, we systematically carry out invention discovery and patent filing activities.

＜Example＞ Building a patent portfolio for the steer-by-wire (SBW) system

We have been advancing the development of Steer‑by‑Wire (SBW) systemsーan emerging next‑generation steering technologyーahead of other companies, and through continued patent filing activities, we now hold the No.1 patent portfolio in this field.

SBW system can increase steering design flexibility, reduce vehicle weight, and expand the available interior space.
Our SBW system is installed in the Lexus RZ launched in December 2025.

4．Branding Activities

In 2022, to achieve greater synergy across our business divisions and to truly operate as a unified company following the merger, we consolidated the "Koyo" and "TOYODA" brandsーpreviously used in parallel in the Industrial Machinery & Bearings and Machine Tools & Systems businessesーinto the unified JTEKT brand.
Subsequently, the corporate brands of JTEKT Group companies were also unified under JTEKT, and the entire JTEKT Group has been working to strengthen recognition of the JTEKT brand and foster a broader base of JTEKT fans.

1）JTEKT Brand to the World

To protect the JTEKT brand ー the face of the JTEKT Group ー we maintain trademark rights for the name "JTEKT" globally. In countries such as China, ASEAN nations, and Latin America, where counterfeiting and trademark squatting pose significant risks, we also obtain trademark protection for "捷太格特," the Chinese‑character representation of JTEKT, as well as for the designs of our branded packaging. These trademark rights play an important role in eliminating counterfeit goods, preventing unauthorized trademarks, and enhancing brand value ー contributing to stronger global trust and recognition of the JTEKT brand.

Countries Where the "JTEKT" Trademark Is Registered

To ensure that the JTEKT brand conveys a unified image to stakeholders, we strictly standardize elements of the logo, including its form and colors. We have created the "JTEKT Logo Use Manual" in multiple languages and thoroughly disseminate the usage rules across our domestic and overseas Group companies.

As one of the initiatives to promote the penetration of the JTEKT brand and foster JTEKT fans, we utilize the mascot characters "J‑Nyan" and "TEK‑NYAN" to create opportunities for recognition, understanding, and empathy toward our Mission, Vision, and Values. To prevent trademark disputes with third parties, we obtain wide‑ranging trademark registrations not only for our business domain but also for goods used as novelties, thereby supporting our branding activities through intellectual property rights.

JTEKT Group Mascot Characters

'J-Nyan' (white) is a bright and energetic girl. Her eyes are bearings, her nose and mouth are steering, and her stomach motif is a machine tool. Her whiskers are inspired by the 'passion' in the JTEKT logo's E.
'TEK-NYAN' (gray) is a laid-back boy with exceptional concentration. Combining the facial parts and tail forms 'JTEKT.' His whiskers are shaped as e (earth), s (society), and c (customer), representing our basic principle "for the Earth, society & customers.'

2）Branding activities for products, technologies, and solutions, etc.

Branding of products, technologies, solutions, etc. is promoted company-wide with participation from engineering, planning/administration, sales, public relations, and intellectual property departments. In principle, we use the JTEKT brand; however, for products with significantly higher added value than existing ones, we establish original product brands (e.g., Pairdriver®, Libuddy®) that highlight the value we provide to customers and showcase our technological strengths. We also obtain trademark rights for product brands in major countries and regions where we operate and utilize the brands in public relations and sales activities.

＜Example＞ Branding of Libuddy®

Libuddy® is our high‑heat‑resistant lithium‑ion capacitor. It boasts an industry‑leading operating temperature range and offers excellent durability, safety, and reliability.
When used together with a battery, it enhances existing power sources with greater output and endurance, enabling compact, high‑performance, and maintenance‑free power systems.The name "Libuddy" reflects our intention for this high‑heat‑resistant lithium‑ion capacitor to serve as a "buddy" to existing power sources across various industries, as well as to other energy‑storage devices such as lithium‑ion batteries and fuel cells.In the logo design, the "L" in Libuddy is stylized as a check mark and colored in blue (representing low temperatures) and red (representing high temperatures).
This design visually expresses:
①the industry‑leading operating temperature range of -40°C to 85°C, usable in both low‑ and high‑temperature environments;
②high durability under continuous high‑load operation;
③excellent safety resulting from the use of low‑flammability materials; and
④high reliability cultivated through automotive applications.

Going forward, we will raise awareness of Libuddy® not only in the automotive industry but also among customers in a wide range of fields, such as machine tools, construction machinery, railways, and transportation infrastructure, while providing power‑supply solutions tailored to their specific needs.

5．Intellectual Property Activities that Protect the Business

1）Development Framework That Treats Intellectual Property as Quality (IP Infringement Prevention)

We regard issues related to other companies' intellectual property rights as part of our quality considerations and ensure strict compliance so that our products do not infringe on any third‑party rights. We define the necessary IP activities for each stage of development, and no project can pass the Quality Gate unless it has first passed the Patent & Agreement Gate.
At each gate, we verify that:
・all necessary agreements have been executed and appropriately fulfilled;
・no problematic third‑party patents or other rights exist (avoidance of third‑party patents or the necessary license acquisitions have been completed);
・the results of development are fully protected through patents or other appropriate means.
Through these checks, we identify potential IP issues in a timely manner and ensure they are resolved with certainty.

2）Anti-Counterfeit Measures

Counterfeit products of our bearings have been identified worldwide. Many counterfeit products do not guarantee quality or safety, posing significant risks to customer safety and damaging our brand.
Recognizing anti‑counterfeit measures as a corporate social responsibility, we are intensifying efforts to eliminate counterfeit products with the objectives of protecting customers, safeguarding our brand, securing our business, and contributing to society.

Initiatives

To ensure that counterfeit products are not manufactured, not sold, and not purchased, we implement a wide range of anti‑counterfeit measures globally at each stage of the counterfeit distribution process.In particular, we focus our efforts on regions known to be major sources of counterfeit distribution, including China, Southeast Asia, the Middle East, and Latin America.

Customs Seizure

To prevent counterfeit products from entering and circulating in the market, we implement customs seizures of counterfeit products in cooperation with customs authorities in varuous countries. In particular, to prevent the outflow of counterfeit products from China ー the main manufacturing and distribution source ー to other countries, we place special emphasis on suspension measures at Chinese customs.
Every year, we visit the General Administration of Customs in Beijing as well as local customs offices, engaging in lobbying activities to raise awareness of the risks posed by counterfeit products and methods for authenticity determination.
By deepening collaboration with the Chinese authorities through these activities, both the number of customs seizures and the quantity of seized items have been increasing.

Seizure of counterfeit products of our bearings by Chinese customs

Anti‑Counterfeiting Measures on E-commerce (EC) Sites

We implement anti‑counterfeit measures targeting EC sites in China and ASEAN. We regularly conduct authenticity verification for bearings sold on EC sites bearing our brand, and as soon as counterfeit products are identified, we request the deletion of the relevant sales pages.Particularly for Chinese EC sites, we have continuously implemented anti‑counterfeit measures since 2019. As a result, the number of suspected counterfeit bearings has been significantly reduced since 2020. Even after the COVID‑19 pandemic shifted the main battleground of counterfeit sales from physical stores to EC sites, we have curbed the increase in suspected counterfeit products.

Sales Trends of Suspected Counterfeit Products on Chinese E-commerce Sites

Development and Utilization of an Authenticity Verification System

Some counterfeits are so elaborately imitated that they are indistinguishable from genuine products. Therefore, we have introduced a system that allows easy authenticity verification simply by scanning the two-dimensional code affixed to the bearing package box with a smartphone app.
Through pocketbooks and videos, we actively promote use of the authenticity　verification system to customers and customs authorities in each country.