Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	238,967	271,650	(12.0)	-
Operating income	5,421	3,378	60.5	-
Ordinary income	5,598	3,391	65.1	-
Net income	1,779	(1,849)	-	-
Japan
Sales	130,156	179,524	(27.5)	-Sales were lower due to a decrease in the volume of program business for auto assembly.
Ordinary income	71	(250)	-	-
Americas
Sales	45,507	31,853	42.9	-Sales rose due to a tremendous increase in orders.
Ordinary income	397	(1,346)	-	-
China
Sales	15,722	17,339	(9.3)	-Ordinary income fell year-on-year due to the Company’s winning fewer orders because of a slowdown in production at OEMS caused by the tense situation in China.
Ordinary income	2,128	2,413	(11.8)	-
Asia
Sales	47,581	42,932	10.8	-Sales rose due to increased orders at its consolidated subsidiaries.
Ordinary income	3,331	3,003	10.9	-

Contracts

- The Company has been awarded its first plastic fuel tank business from three Japanese automakers in Japan and Thailand. Following the start of delivery to one of these companies, it will also begin to supply the product to the other two customers in 2013. Up until now, the Company's plastic fuel tanks have been featured mainly on Honda vehicles, with the only other application being their installation on Toyota models built in Thailand. Sales of fuel tanks, which are the Company's mainstay business, accounted for some 23 percent of the company's total auto parts business in the year ended March 2012. Switching from metal to plastic provides weight saving benefits and superior formability, which contributes to a high degree of vehicle design flexibility. For this reason, plastic fuel tanks are expected to take hold in the global market, including in emerging countries. In efforts to explore new customers, the company is poised to enhance its capabilities for making technology-based proposals. (From an article in the Nikkan Jidosha Shimbun on August 3, 2012) 

Recent Development in Japan

- The Company made clear its intention of winning the business of the majority of structural body parts of the next-generation minivehicle now under development by Honda. Supported by brisk sales of Honda's "N-BOX" model, the Company forecasts its sales for this fiscal term ending March 2013 will increase to 46.6 billion yen (approx. $583 million) by a staggering 52.7 percent from the previous year. Sheet metal components are the company's main product line, accounting for 26 percent of its total vehicle parts sales during the period from April to September 2012. The Company has got orders for 70 percent of unpainted body sheet metal components for the new "N BOX". Though slightly lower, almost the same level of orders has been assured for the new "N-ONE." Hereafter, however, other stamping parts suppliers of the Honda Group are also showing an interest in entering into this business targeted at forthcoming minivehicle models. This will possibly bring a decline to the Company's share. (From an article in the Nikkan Jidosha Shimbun on Nov. 1, 2012)

Procurement Activities

Increasing Procurement of Parts and Materials In-house
-The Company is shifting to procuring plastic materials for fuel tanks on its own, as it aims to become more competitive in the plastic fuel tank business. Up until now the company has been partly relying on materials and components provided by Honda, its parent company. By gradually switching to a self-supporting system, the company will step up efforts to develop lighter and more high-strength materials, while creating a strong procurement network to source materials from worldwide resin suppliers. The initiative is part of the company's efforts to gain new customers and increase its global sales to customers other than the Honda Group as well. (From an article in the Nikkan Jidosha Shimbun on Feb. 5, 2013)      

>>>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	4,721	4,092	3,378

R&D Facilities

Facility	Location
Tochigi R&D Center	Tochigi Pref., Japan
Saitama R&D Center	Saitama Pref., Japan
Yachiyo of America Inc.	Ohio, U.S.A.

R&D Activities

• Mass-production of technology to mass-produce fuel tanks for new vehicle models
• Mass-production of sun-roofs for new model vehicles
• Development of fuel tanks for new vehicle models
• Development of sun-roofs for new model vehicles
• Development of a metal-honeycomb, high-density cell carrier for motorcycles, which meets exhaust gas emissions regulations both in and outside Japan.
• Research and development of new-design resin fuel tanks
• Research and development of new types of sunroofs and related technologies
• Research and development of environmentally friendly auto parts
• Research and development of press forming technology capable of handling semi-melted aluminum materials
• Research and development on driver-assist systems for vehicles transporting the physically challenged.
• The Company conducted R&D activities in order to launch business into new sectors.

 Product Development

New Extra-wide Sunroof
-On November 22, the Company announced that it has developed a new sunroof with an extra-wide opening extending to the edge of the windshield, while maintaining a strong and rigid vehicle body as that of vehicles mounted with conventional inner sliding sunroofs. The company was able to expand the opening portion to the upper most edge of the windshield by minimizing the thickness of the front roof rail. The Company will boost sales activities, targeting the Chinese and North American markets in which the installation rate of sunroof systems is high. (From an article in the Nikkan Jidosha Shimbun on Nov. 24, 2012)  

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Japan	5,060	6,050
Americas	4,451	1,122
China	946	1,703
Asia	3,580	2,574
Overall	14,038	11,450

<Japan>
-The Company mainly invested to prepare production facilities in order to respond to new business, renew facilities and equipment, and install testing facilities and equipment.

<Americas>
-In the Americas, the Company mainly invested to prepare production facilities in order to respond to new business, renew facilities and equipment, and build a new plant.

<China>
-In China, the Company invested mainly to increase production capacity and expand plant buildings.

<Asia>
-In Asia, the Company invested to build new plants, prepare production facilities in order to respond to new business, and increase production capacity.

Investments in Japan

Upgrading production lines at the Yokkaichi Plant
- The Company, a manufacturer of auto parts and finished vehicles, will streamline its mini-vehicle production lines at its Yokkaichi Plant (Mie Prefecture, Japan) based on its plan to produce between 50,000 and 60,000 units a year. The company, which is already revamping some of its vehicle assembly lines, is also planning modification of its coating line during the term of the next three-year business plan starting in April 2014. While orders for passenger cars are currently declining, production volume of commercial vehicles is projected to remain at the current level in the foreseeable future. In order to correspond to shrinking vehicle production, the Company aims to improve productivity of its assembly operations by developing more efficient and flexible production lines. (From an article in the Nikkan Jidosha Shimbun on Mar. 27, 2013)

Planned Capital Investments

(As of Mar. 31, 2013)

Company/Facility (Location)	Facility Details	Planned Investment Total (in million yen)	Start	End (Scheduled)	Remarks
Kashiwabara Plant (Saitama Pref., Japan)	Production facilities	761	Mar. 2012	Mar. 2014	Improving environment, Responding to new business
Yokkaichi Factory (Mie Pref., Japan)	Production facilities	764	May 2013	Mar. 2014	Renewing facilities/equipment, Responding to new business, Improving environment
Suzuka Plant (Mie　Pref., Japan)	Production facilities	217	Apr. 2013	Jan. 2014	Responding to new business
Kameyama Branch (Mie Pref., Japan)	Production facilities	315	Mar. 2013	Jan. 2014	Renewing facilities/equipment, Responding to new business
Tochigi R&D Center (Tochigi Pref., Japan)	R&D facilities	429	Mar. 2013	Feb. 2014	Installing testing facilities
Saitama R&D Center (Sayama, Saitama Pref.)	R&D facilities	327	Apr. 2013	Sep. 2013	Installing testing facilities
US Yachiyo Inc. (Ohio, USA)	Production facilities	208	Apr. 2013	Mar. 2014	Renewing facilities, reducing energy consumption, rationalizing operations, improving the environment
AY Manufacturing, Ltd. (Ohio, USA)	Production facilities	247	Apr. 2013	Mar. 2014	Renewing facilities, reducing energy consumption, rationalizing operations, preparing for new orders
Yachiyo Mexico Manufacturing S.A. de C.V. (Guanajuato, Mexico)	Production facilities	1,714	Jun. 2012	Dec. 2013	Constructing new plant facilities
Yachiyo Zhongshan Mfg. Co., Ltd. (Guangdong, China)	Production facilities	2,119	Jan. 2012	Dec. 2013	Responding to new business, Increasing production capacity
Siam Goshi Mfg. Co., Ltd. (Rayong Province, Thailand)	Production facilities	1,177	Apr. 2012	Dec. 2013	Responding to new business, Initiating labor-saving activities, rationalizing
Goshi-Thanglong Auto-Parts Co., Ltd (Hanoi, Vietnam)	Production facilities	432	Aug. 2012	Dec. 2013	Increasing production capacity, Responding to new business
Goshi India Auto Parts Private Limited (Haryana, India)	Production facilities	374	Mar. 2013	Mar. 2014	Preparing for new orders, renewing facilities
Yachiyo India Manufacturing Private Ltd. (Rajasthan, India)	Production facilities	343	Jan. 2013	Nov. 2013	Preparing for new orders, renewing facilities, reducing energy consumption, rationalizing operations
P.T. Yachiyo Trimitra Indonesia (Karawang Regency, Indonesia)	Production facilities	1,747	May 2012	Dec. 2013	Constructing new plant facilities