Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Sales	154,518	135,376	14.1	1)
Operating Income	11,392	9,779	16.5	-
Ordinary Profit	11,815	8,864	33.3	-
Net Income	7,537	13,727	(45.1)	-

Factors

1)
<Japan>
-Sales increased during the first half of the year because production levels at customers recovered. However, during the second half of the year, sales fell year-on-year, but only slightly, because both production and sales volume of auto-body parts decreased because of lower vehicle production and sales levels at its customers, which resulted after the eco-car sales incentives ended. Sales for die facilities increased.
-Operating revenue increased 3.1% year on year to 48,966 million yen. Operating profit for the region, which was 3,353 million yen, decreased year-on-year by 7.2%.

<North America>
-Performance was stronger year-on-year, right from the start of the year because of increased production volumes at its major customers.
-Operating revenue increased 27.3% year on year to 55,566 million yen. Operating income for the region increased 56.6% to 1,874 million yen.

<Europe>
-Production volumes at major customers in Europe recovered. Sales of die production equipment fell.
-Operating revenue rose slightly to 9,730 million yen, a slight 1.9% year-on-year increase. Operating profit for the region decreased 4.0% to 1,113 million yen.

<Asia>
-Some operations achieved higher productions levels year on year. In addition, production volumes at major customers recovered after having suffered damage because of the flooding that took place last year in the country.
-Operating revenue increased 49.4% year-on-year to 23,439 million yen. Operating profit for the region also rose, to 3,370, which was a 36.1% year-on-year increase.

<China>
-Production levels at the Company’s major customers recovered. However, there was resistance in the market to buy Japanese-branded vehicles, which was due to the worsening political relations between Japan and China. This caused production levels at major customers to fall.
-Operating revenue was 21,690 million yen, which was 12.3% lower year-on-year. Operating profit for the region fell 6.1% year-on-year, down to 1,054 million yen.

<South America>

-Sales were lower due to negative currency translation. Production levels at major customers recovered.

-Operating revenue increased 34.0% year on year to 5,784 million yen. Operating profit for the region was 707 million yen. In the previous fiscal year, the region suffered an operating loss of 38 million yen.

Major Contracts

- The Company, a Honda-affiliated supplier of body structural parts, received the first contract from BMW to supply stamped parts for MINI models. Delivery is scheduled to begin this fall. Currently, approximately 70 percent of the Company's consolidated sales are generated through business with Honda. Meanwhile, the supplier is increasing business with Japanese automakers other than Honda, aiming to expand profit-earning opportunities. In Europe, the company's revenue is affected by a slowdown in automotive sales due to the economic stagnation. By winning new contracts from European automakers, the Company is poised to raise the operational level of its UK plants. The contracts the company has received from BMW include small and middle-sized stamping parts for two models. After starting delivery of stamped parts for one BMW model in November 2013, the company will also begin supplying those components for the other model in the summer of 2014. Production will take place at G-TEKT Europe Manufacturing Ltd. in the UK. (From an article in the Nikkan Jidosha Shimbun on May. 17, 2013)

Plant Consolidation

- The Company will realign its production operations in the Kanto region to enhance support to Honda, which will commence production at its new Yorii Factory in Saitama Prefecture this July. By the summer of this year, the Honda-affiliated supplier of body structural parts will consolidate parts production into its Saitama Plant (Fukaya, Saitama Prefecture), switching from conducting it both at the Saitama Plant and the Hamura facility (Tokyo). The Fukaya facility will thereafter be the company's sole supply hub for Honda's two vehicle assembly plants in Saitama: the Yorii Factory; and the Sayama Factory. Through this integration, the Company aims to cut down on administration cost and streamline operational efficiency. After the transfer project is completed, the Company's Hamura facility will engage in development of engineering technologies to serve as the company's major R&D base. Honda will utilize the new Yorii Factory to produce mainly compact vehicles, including its flagship Fit series. Meanwhile, the automaker is intending to establish highly efficient production lines to produce more than 10 vehicle models at the existing Sayama Factory. Based on the customer's such production strategy in the region, the Company aims to create a lean production and supply structure, under which it can meet the customer's requirements for high-mix production as well. (From an article in the Nikkan Jidosha Shimbun on Feb. 22, 2013)
 

Recent Development Outside Japan

<USA>
- The Company announced that it has established G-TEKT North America Corporation in Ohio, U.S.A. to mass-produce hot stamping products. Local demand for high-strength and lightweight hot stamping components is growing in the North American market, as automakers are working to reduce vehicle weight. The new subsidiary is capitalized at 22 million dollars (approximately 2.2 billion yen) fully invested by The Company. G-TEKT North America will take over the Group's development operations in the region that have been carried out at the Company's existing U.S. subsidiary, which also handles sales operations. Faced with increasing demand from its major customer Honda to engineer products for new vehicle models, the Company is poised to enhance its development capability and efficiency in the market through the separation of its sales and development functions. (From an article in the Nikkan Jidosha Shimbun on May. 27, 2013)

<Indonesia>
- The Company announced that it will acquire the 50 percent of the shares of PT. Auto-Body Manufacturing Indonesia from H-One Co., Ltd. to turn the joint venture into its wholly-owned subsidiary. The 50-50 joint venture was established in February 2013. Through this agreement, the Company is dissolving its joint venture with H-One with an eye toward integrating Auto-Body Manufacturing Indonesia with PT. G-TEKT Indonesia Manufacturing, another local subsidiary. (From a press release on April 26, 2013)

<India>
- The Company, a Honda-affiliated supplier of body structural parts, will start supplying its products made in India to Thailand by this fall. Demand has been growing rapidly from the Thai market, where Japanese automakers are expanding their production volumes. As an immediate measure to keep up with such requirements, the Company has decided to utilize its Indian facility despite high shipping costs to Thailand. This will also allow the company to improve capacity utilization of the Indian plant, operating rate of which has been falling. (From an article in the Nikkan Jidosha Shimbun on Mar. 18, 2013)

<Thailand>
- The Company announced that its Thai subsidiary G-TEKT Eastern Co., Ltd. plans to set up a second plant, which will manufacture and sell automotive parts.  The Company will invest approximately 1.46 billion baht, approximately 4 billion yen, in this project. The new plant, which will be established in Gateway City Industrial Estate, Chachoengsao Province, will cover a land area of about 67,000 square meters, with a total floor area of about 16,000 square meters. (From a press release on November 9, 2012)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	415	199	199

R&D Structure

- R&D activities involving new technologies and new products are conducted at the Company's main Technology Development Department.

- 18 engineers work at the Product Development Section as of March 2013.

R&D Activities

-Major R&D activities and achievements in the FY, which ended Mar. 31, 2013
1. Developing hot-press technology
2. Developing forming technology to manufacture high tensile strength steel sheets
3. Developing non-destructive inspection technology to test spot-welded points.
4. Developing precision stamping technology for precision,  heavy sheet-metal.
5. Developing technology to create forming simulations
6. Developing technology that contributes to reducing vehicle weight

Technology Contract Offered by the Company

(As of Mar. 31, 2013)

Partner	Country	Details	Period
Jefferson Industries Corporation	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2003.10.01-2006.09.30 automatic extension every year thereafter
Jefferson Elora Corporation	Canada	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1997.03.31-2002.03.30 automatic extension every 5 years thereafter
Jefferson Southern Corporation	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2001.05.31-2006.05.30 automatic extension every year thereafter
Austin Tri-Hawk Automotive Inc.	USA	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1998.01.25-2001.01.24 automatic extension every year thereafter
G-KT do Brasil Ltda.	Brazil	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1997.05.30-2002.05.29 automatic extension every year thereafter
Auto Parts Alliance (China) Ltd.	China	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2011.07.01 - 2016.06.30
Wuhan Auto Parts Alliance Co., Ltd.	China	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2011.04.01 - 2016.03.31
G-TEKT Europe Manufacturing Ltd.	U.K.	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2000.02.01 - 2004.01.31 automatic extension every year thereafter
G-TEKT (Thailand) Co., Ltd.	Thailand	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1997.04.01 - 2002.03.31 automatic extension every year thereafter
G-TEKT Eastern Co., Ltd.	Thailand	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	1996.05.01 - 2001.04.30 automatic extension every year thereafter
G-TEKT India Private Ltd.	India	Nonexclusive license involving production, use, and sales rights regarding technological and production expertise on automotive parts, stamping dies, and jigs	2008.06.26 - 2013.06.25 automatic extension every year thereafter

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	18,181	12,698	5,813

Capital Investments in FY ended Mar. 31, 2013
- The company invested in Japan and Asia mainly to install facilities and equipment to produce products for new-model vehicles coming on the market. The Company also invested to acquire a hot-stamping machine in Japan. In Asia, the company invested to construct a new plant building and acquire machinery in order to increase production capacity.

Recent Investment in Japan

-New models: "N-ONE", "Fit", "Accord", Acura models, "Forester"

Recent Investment Outside Japan

<North America>
-New models: "Acura  (Civic)", "Accord", "RAV4 (long-wheelbase version)"

<China>
-New models: "Camry (including Hybrid), "CR-V", "Elysion", "RVR"

<Asia>
-New models: "Civic", "Brio", "CR-V"

<Europe>
-New models: "CR-V", "Corolla"

<South America>
-New program business: "Corolla", "Frontier"

Planned Capital Investments

(As of Mar. 31, 2013)

Plant	Location	Equipment to be installed	Estimated amount of investment (in millions of yen	From	To	Purpose of investments
Saitama Plant	Saitama Pref., Japan	Equipment for manufacturing auto parts (dies, jigs and tools)	2,996	-	-	Dealing with model changes
Austin Tri-Hawk Automotive Inc.	Indiana, U.S.A.	Equipment for manufacturing auto parts (stamping and welding equipment)	4,040	Jul. 2012	Jul. 2016	Increasing production capacity
G-TEKT (Thailand) Co., Ltd.	Ayutthaya, Thailand	Equipment for manufacturing auto parts (dies, jigs and tools)	3,601	-	-	Dealing with model changes
PT. G-TEKT Indonesia Manufacturing	Karawang, Indonesia	Plant designated for new production New facilities	4,025	Mar. 2012	Dec. 2016	-
Auto Parts Alliance (China) Ltd.	Guangzhou, Guangdong Province, China	Equipment for manufacturing auto parts (dies, jigs and tools)	6,255	-	-	Dealing with model changes
G-TEKT Eastern Co., Ltd.	Rayong, Thailand	Equipment for manufacturing auto parts (stamping and welding equipment)	3,097	Sep. 2012	Aug. 2014	Increasing production capacity
PT. G-TEKT India Private Ltd.	Rajasthan, India	Plant designated for new production New facilities	2,457	-	-	Dealing with model changes