Ha r m

o n yB e t w e e n P e o p l e , C a r s a n d

Ea r t

h

Tokai Rika considers the environment as one of the company's major concerns, such as quality and cost. Our pro-environmental activities are an integral part of the Tokai Rika Group Policy, and the Mid-Range Environmental Plan defines specific activities and targets that have already been achieved and are to be accomplished by Year 2005. By these principles, Tokai Rika has implemented the environmental management system.The world of the environment is constantly changeing in drastic ways. In fact, in 2003, the regulations related to the zinc contamination in water and the volatile organic compound (VOC) emissions to the air were revised (in Japan). To keep up with such quick changes in the environmental world, the company must surely understand the current situation and establish a comprehensive environmental system. As a manufacturer, Tokai Rika has maintained and will always achieve the target of "Zero" emission going to landfills in order to continue our business today and in the future.For example, the reduction of the emission of air pollutants that affect the global warming is one of the activities on which we worked. We reduced the usage of sulfur hexafluoride that are used as gas to prevent oxidation, and we were able to drastically cut the carbon dioxide (CO2) emission to the air.We also have been working toward the reduction of various hazardous materials used in automotive parts by initially focusing on the materials banned by the EU's End-of Life (ELV) Directive (that reinforces the restriction of hazardous material use). In addition, we have reviewed raw materials used for our parts and product mechanisms to improve recycleability and attempted to produce smaller and lighter products for fuel usage reduction.Overseas, we have built new plants and promoted "the global environmental protection" and "the reduction of hazardous material use in production processes in consideration of local communities." As a global organization, Tokai Rika fortifies the environmental networking and initiates efforts for the protection of the environment.Tokai Rika is committed to the continual environmental improvement efforts. We always keep ourselves updated with the current environmental concerns, make appropriate actions to the issues and continue our best efforts to protect the environment throughout the world.

We will promote pro-environment actions in accordance with our business philosophy and action guidelines.Main action items: Energy and resource conservation, recycling, waste reduction, control of chemicals, etc.

We will comply with laws, fulfill commitments made to our local communities and customers and voluntarily establish environmental objectives and targets to support prevention of pollution.

We will establish an environmental committee and implement activities for continual improvement of the environment.

1

2

3

(established in April 1999)

Yoshihei IidaChairman,

Tokai Rika Co., Ltd.

Tokai RikaEnvironmental Committee

Headquarters andPlant Environmental Committee

Chairperson: Kiyoshi Kinoshita, President

CommitteeSecretariat

Glo

bal E

nviro

nm

ental C

on

ference

Green

Pu

rchasin

g C

om

mittee

(restructured in June 2003)

VC Center Environmental Committee

Production and Test Engineering BuildingEnvironmental Committee

Office Building Environmental Committee

Head Plant Environmental Committee

Nishibiwajima Plant Environmental Committee

Toyota Plant Environmental Committee

Otowa and Hagi Plant Environmental Committee

Lead-FreeSoldering Project

HexavalentChromium-FreeProject

ELV Step 2

Product DevelopmentEnvironmental Committee

ELV Subcommittee

IMDS Subcommittee

ProductionEnvironmental Committee

Legal ComplianceSubcommittee

Resource UtilizationImprovementSubcommittee

Energy SavingSubcommittee

Main activities Key Activities from April 2001 to March 2005

Establishment and Implementation ofEnvironmental Management System (EMS)

1

Compliance withRelevant Regulations

2

Prevention ofGlobal Warming

3

Control and reductionof hazardous materials

4

Waste Reduction andResource Conservation

5

Environmental ManagementPrograms for New Products

6

Improvementin Logistics7

Involvement ofSubsidiaries

8

Cooperationwith Suppliers

9

PR, education andcontributions to society

10

■Audit Findings by Registrar (December 16, 2003)

ContentFinding Corrective Action

Observation(Target Management)

Targets have been achieved. No review or adjustment has been made.

Will start to reestablish mid-term targets and review measurables.

Observation(Document Control)

Timing of the issuance, revision and review seems unclear for certain documents.

W i l l r e c a t e g o r z e documents (policies, standards, procedures, etc.)

Observation(Evaluation)

Evaluation and follow-ups on training were not sufficient.

Will revise the procedures and forms for contingencies and their preventive actions and tests.

Observation(Procedure Implementation)

R e d u n d a n c i e s i n implementation were found related to the procedure of

"Envi ronmenta l Legal Compliance Activities" due t o i t s i n a p p r o p r i a t e documentation.

Will continue to have meetings of the Legal Compliance Subcommittee, facilitate communication between the legal departments and plants, and closely and regularly review legal provisions.

■Newly ISO 14001-Certified Companies in 2003

LocationRegion

Asia

North America

TRT (Thailand) MINDARIKA (India)

QSS (Canada)

Items

1) Pollution prevention and

resource conservation /

reuse activities

2) Supplemental activities for environment

3) Management activities

4) R&D activities

5) Community activities

6) Remedies for environmental damages

■Investments and Expenses

Investments

Subtotal

Total

Expenses

2307.3

215.9

276.7

176.4

0

118.4

177.3

26.6

10.2

1001.5

66.8

394.6

347.8

0

0

394.9

100.8

0.8

1305.7

(Unit: million yen)

■Economic Effects of Environmental Protection Activities

767.3―

Effect

Total

Volume(ton/year)

Value of effect (million/yen)

547

211.6

8.7

10,308t

9,130t-CO2

269t

Sales of recycled materials (iron, nonferrous metals, plastics, oil, etc.)

Cost reduction by energy saving (CO2 reduction volume)

Reduction of waste disposal costs and other relevant costs (reduction of waste amount)

RawMaterials

ResinUrethaneZincAluminumMagnesiumIronCopperSoldering Materials

GlassSilver

4,061 t568 t

4,864 t524 t

2,087 t11,536 t

2,153 t

34 t45 t32 t

WaterResources

City Water

Industrial Water

Ground Water

222 km3

93 km3

300 km3

Energy

Electricity

Heavy Oil

KerosenePetroleum gasCity gasElectricity from cogeneration

77,152 MWh

109 k 13 k

93 t 5,850,000m3

5,353 MWh

Others

Chemicals (Washing agents) Paper Wrapping paper

140 t

1,698 million sheets267 t

Air emission

CO2 65,288 t-CO2

Recycling

Recycled materials12,265 t

Waste Water

Sewage water

Effluent115 km3

445 km3

Waste

Direct to landfillIn-process waste for recycling

Unwanted / unnecessary waste

23 t

627 t

12,915 t

Air emission (logistics)

CO2 1,218 t-CO2

Products

Production

●Toyota Group EMS: Environmental assessment indices are reported monthly.●Tokai Rika Group EMS: Promotion of environmental activities is expanded to

the subsidiaries and suppliers.

●Each facility maintains and evaluates a list of relevant regulations to ensure compliance.●Hazardous Material Control & Safety Manager, Pollution Control Manager and other

qualified specialists (e.g. specialist on vibration and noise regulations) are appointed.

●In-house power generation rate is to increase by cogeneration system installation.●Energy conservation actions are taken for equipment with high energy consumption.●The company stops all operations to shut off electricity on scheduled holidays.

●Identification of hazardous materials●Reduction of hazardous materials emission

●Promotion of "Zero Emission"●Improvement of resin yield●Removal of incinerators (by the end of 2002)●Reduction of intermediate waste for recycling processing

●A system is to be established to control hazardous materials contained in the products.●Countermeasures are to be developed and taken for hazardous material

control, such as development of alternatives.●Use of recyclable materials and design of light-weight products are promoted.

●Reduction of CO2 emissions●Reduction of packaging materials usage

●Domestic and Overseas subsidiaries are to establish an EMS and become ISO 14001-certified.

●Activities of supplier association: energy conservation, waste reduction, and hazardous material reduction

●Green procurement: Purchase of eco-products is encouraged, and supplier evaluation criteria are to be defined.

●Participation in volunteer activities is encouraged.●Environmental reports are released periodically to publicize the company's

environmental information.

※Activities to support recycling and disposal of our products and packages, environment-friendly purchasing (green procurement), etc.

Tokai Rika's environmental objective in relation to product development is to minimize

impacts to the environment. Our activities cover the hexavalent chromium-free and lead-free

projects to reduce the use of hazardous materials, the management of hazardous materials

contained in our products, and the making products lighter for fuel-efficiency improvement.

■PCB(Printed circuit board) with Lead-Free Reflow Soldering

Elimination of Hexavalent Chromium

Lead-Free soldering for new products

Mid-Term Objectives

June 2006

July 2005 -

■Hexavalent Chromium-Free Slot Parts

■Lighter-Weight Retractor

7.3％ lighter than previous type

■Relation between ELV, IMDS and Regulations

Tokai Rika

③

①

②

④

Regulations

ELVDirective

Materials /Parts Makers

Request for information related to regulations, including ELV

Information sharing via IMDS

IMDSRequest for investigation on part materials OEMs

5% reduction from 1990

10% reduction from 1990

Mid-Term Objectives

End of 2005

End of 2010

Tokai Rika has established mid-term quantitative targets for energy

conservation, focusing on the reduction of CO2 that is the cause of the global

warming. We have launched various activities, including the elimination of

energy waste and energy conservation by technology improvement.

■Secondary Pump Control System for Air Conditioning

Pressure Sensor

WaterFlow

SensorController

Production Equipment /Air ConditionerInverter

Motor Cooling Water Pump

Pressure Gauge

Pipe

Main Valve (Open)

Water Tank

M

P

■Cogeneration System with High Power Generation Efficiency

Substation

City Gas

Gas Engine

Equipment in Plant

Hot WaterHeat Regenerator

Hot Water- FeedType Refrigerator

Waste GasSteam Boiler

Existing SteamBoiler Steam Heater

for Plating

BoilerCogeneration System Plant

Plant Heating

Plant Cooling

Steam Header

Steam

HotWater

ColdWater

49％of Electricity

Usage

Electricity Usage Reduction:

750MWh

Energy Saving

Effect: 70% at Maximum

Energy Saving Effect:

25％

TargetActual

60,61060,000

40,000

20,000

0

64,442 67,044

58,643 57,579

65,288

■CO2 Emission

,90

,01… ,

02,03

,04

,05

（t-CO2）

38％of Thermal Energy

Usage

Last year, we were able to achieve the targets of waste reduction and

resource conservation before the target date defined in the mid-term plan by

promoting the 3R activities - "Reduce," "Reuse" and "Recycle." Tokai Rika

newly established the Year 2010 Plan to tackle new environmental challenges.

※Soil Best Method: Recycling technique that adds modification and solidification agents into waste soil.

,90 … …… …

,05

,02

2,000

（t）

1,000

0 ,03

1,918

901

575627

■Landfills ■In-Process Recyclable Materials

（t）

,90

,05

0

5,000

10,000

15,000

■Unwanted/Unnecessary Materials

6,837

,02

11,697

,03

12,91513,673

TargetActual

,90 … … …,

95,05

,02

2,000

（t）

1,000

0 ,03

1,190

2,023

23 2423

New Challenge: 98％ reduction from 1995

Target in Mid-Term Plan: 50％ reduction from 1990

New Challenge: 70％ reduction from 1990

ZeroEmissionAchieved

WasteSoil

Stirring Granulation Screening TreatedSoil

SoilProduct

■Sludge Recycling

Collected &Transported

Used as Backfilling forpublic construction

＜General Soil Recycling＞

Processedby Soil Best Method

Sludge

■Recycling of　Waste Plastics into Energy

Transportation＜Outside Recycler＞

RPFCompany Incinerator

151t

＜Previously＞

CO2 Emission

39.45t-CO2

CO2 Emission (Transportation)

0.028t-CO2

CO2 Emission (Electricity)

0.245t-CO2

RPF Processing: 151t

※New targets

98% Reduction from 1995 by End of 2005

70% Reduction from 1990by End of 2005

50% Reduction from 1990 by End of 2005

Mid-Term Objectives

Waste to Landfills

In-Process Recyclable Waste

Unwanted/Unnecessary Materials

※

※

※K-Liner (Tokai Rika’s term): Reusable and foldable divider that is made out of one-piece cardboard.

For the prevention of pollution, Tokai Rika is reducing and eliminating

hazardous material use from production through the comprehensive

system, called the Pollution Release and Transfer Register (PRTR),

and the use of Material Safety Data Sheets.

Tokai Rika promotes the purchase of raw materials, parts and office

supplies with less impact on the environment. We also make efforts to

minimize environmental impacts at the stage of logistics and product

transportation.

20% Reduction from 2000 (22t) by End of 2005

Mid-Term Objectives

Emission ofHazardous Materialsregulated by PRTR

■Guidelines

■Tokai Rika’s Policy for Environment Protection

■Requests for Suppliers　・Establishment of Environmental Management System

　・Hazardous Material Control

■Implementation of Guidelines

■Attachments　・ISO 14001 Certification Survey

　・Environmental Management Program Survey

　・List of Banned Materials

　・List of Materials for Use Reduction

　・List of Hazardous Materials for Use

　・Chemical Composition Report

5% Reduction from1998 by End of 2005

23% Reduction from1999 by End of 2005

Mid-Term Objectives

CO2 Emission by Transportation:

Usage of Packing & Packaging Materials:※New Target was established because the original target was accomplished.

K-Liner

■Flow of PRTR-Regulated　Hazardous Materials　 (Unit: kg/year)

Hazardous Materials Used

140,430 (15 Materials)

Air

20,999Discharge after Reduction (Process)

32,522Facility

Water

191Waste

11,739Recycling

1,886

Products

73,093

Raw Materials / Materials

■Emission of PRTR-Regulated Hazardous Materials

,96

（t）

0

10

20

30

40

50

60

70

80 74

,97

38

,98

21

,99

18

,00

28

,01

27

,02

20

,03

21

,04

23

,05

22

Classification of Materials was revised due to the enactment of the

regulation.

TargetActual

※Data for 1996-1999 were collected in accordance with different criteria (classification of chemicals, regulation threshold, etc.)

※

Under the company's business philosophy, "To work in harmony with nature and local communities," Tokai Rika

actively participates in community involvement and volunteer activities and exchanges communication with local

communities by disclosing our environmental information. The training, education and workshop on the

environment, health and safety are a vital part of Tokai Rika's environmental activities.

Year 2001 Edition

Year 2002 Edition

Year 2003 Edition

Tokai Rika's Environmental Reports

※Adopt-A-Highway: Cleaning program for areas surrounding public roads that is established by the Michigan Department of Transportation.

Tokai Rika encourages and supports all Tokai Rika Group companies to become ISO 14001-certified. By the LCA※

activities, we try to minimize environmental impacts throughout the world.※Life Cycle Assessment: To identify and analyze the consumption of resources and emissions of hazardous materials for a product throughout its life cycle and then evaluate the productﾕs

compliance to environmental regulations.

Safety Check

※Hiyari-Hatto: Associate makes suggestions regarding fearful or startling incidents that did not become major accidents but need to be informed for the prevention of accidents in the future.※※Kiken Yochi: To detect and inform dangers in advance

3-260 Toyota, Oguchi-cho, Niwa-gun, Aichi 480-0195, JapanTEL:(0587)95-5211 / FAX:(0587)95-1917

Environmental Committee Chairman:

Yasuhiro Miyake,Member of the Board

■ISO 14001 Surveillance Audit

Major

Minor

Observation

0

0

1

■ISO 14001 Surveillance Audit

Major

Minor

Observation

0

0

0

480 Izumi-machi, Nishibiwajima-cho, Nishikasugai-gun, Aichi 452-0015, JapanTEL:(052)501-8141 / FAX:(052)501-0233

Environmental Committee Chairman:

Kazuhisa Kubota,Member of the Board

※Two-fluorescent bulb lighting fixture that requires one high-efficiency fluorescent bulb for illumination and one dummy (non-lighting) bulb for the electric circuit, instead of two regular bulbs.

■ISO 14001 Surveillance Audit

Major

Minor

Observation

0

0

0

■ISO 14001 Surveillance Audit

Major

Minor

Observation

0

0

1

2-47-1 Konosu-cho, Toyota, Aichi 471-0836, JapanTEL:(0565)28-1141 / FAX:(0565)28-5792

Environmental Committee Chairman:

Hiroki Iwasa,Member of the Board

Otowa Plant: 1 Aza-Hirayama, Oaza-Akasaka, Otowa-cho, Hoi-gun, Aichi 441-0295, Japan TEL:(0533) 88-4111 / FAX:(0533)88-2244 Hagi Plant: 1-3 Aza-Nakayama, Oaza-Hagi, Otowa-cho, Hoi-gun, Aichi 441-0201, Japan TEL:(0533) 88-7051 / FAX:(0533)88-7055

Environmental Committee Chairman:

Takaoki Tsuchiya,Member of the Board

ThresholdNitrogen:Below 60mg/Phosphorus: Below 8mg/

Otowa Plants

Hagi Plants

Issued in: June 2004Issued by: Environment Administration Dept., Production Facilities & Environment Div., Tokai Rika, Co., Ltd.For inquiries: Tokai Rika Co., Ltd. 3-260 Toyota, Oguchi-cho, Niwa-gun, Aichi 480-0195, Japan TEL (0587) 95-9002 FAX (0587) 95-1261 URL http://www.tokai-rika.co.jp (This report is also available on Tokai Rika internet homepage.)Next Issue: Scheduled in June 2005

This environmental report is:・ Made out of100% recycled paper;・ Printed in biodegradable ink made from soybeans with reduced volume of petroleum-based solvents・ Printed by the “Zero-Water” printing method without containing hazardous chemicals; and・ Printed by an ISO 14001-certified printing company.・ Bound by not metal but thread, for safety recycling.

Tokai Rika Co., Ltd

August 30, 1948

￥15.0 billion (as of March 31, 2004)

Automotive switches, key/ lock sets, seatbelts, airbags, shift levers, electronic parts, steering wheels, connectors, mirrors,

resin wheel covers, ornaments, child safety seats, household electric appliances, electronic medical devices, measuring

instruments, and electronic parts for agricultural and construction machinery

Subsidiaries—4 (Japan), 14 (Overseas)

Affiliates —4 (Japan), 6 (Overseas)

Name

Establishment

Capital

Major Products

Tokai Rika

Group Companies