Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change	Factors
Overall
Sales	103,800	99,022	4.8	-
Operating income	1,366	3,765	(63.7)	-
Ordinary income	888	3,557	(75.0)	-
Net income	1,420	1,481	(4.1)	-
Die Casting Division - Japan
Sales	65,114	65,624	(0.8)	-During the first half of the year, business was depressed as a result of lower production volumes at Japanese OEMs, whose operations had been disrupted by the Great East Japan Earthquake. In the second half of the year, business was negatively affected by the flooding in Thailand. In spite of this, operating revenue for the year as a whole was on the same level as that of the previous year, thanks to a recovery in production after the Earthquake and subsequent auto sales increases that resulted from the reintroduction of eco-car sales-incentive programs.
Operating income	1,463	1,929	(24.2)	-Operating profit significantly fell year on year because of a tremendous drop in orders for new business.
Die Casting Division - North America
Sales	18,761	16,020	17.1	-The drop in demand by its major customers who had been affected by the Great East Japan Earthquake early in the fiscal year was temporary, recovering by the latter part of the first half of the year. Also, due to increased orders of new program business in Mexico, the region’s operating revenue increased year-on-year.
Operating income	314	1,029	(69.5)	-Operating profit was lower because of the added expenses incurred to make up for the slow response to boost production capacity to handle the increased business won in Mexico.
Die Casting Division - Asia
Sales	13,723	11,666	17.6	-In China, there was a temporary reduction in new orders caused by the Great East Japan Earthquake, since by summer and after, new orders for program business returned to normal levels, thanks to robust auto sales. In India, even though operations were negatively impacted by lower new-vehicle sales because of the increase in the price of gasoline and by lower production levels at some of its customers, the Company was still able to increase revenue year-on-year, thanks to increased orders that resulted from the sales launches of new products.
Operating income	(504)	723	-	-The region suffered an operating loss for the year, caused by the sudden drop in sales in China because of the Great East Japan Earthquake. In India, which is still in the process of growing, the Company incurred initial start-up expenses.
Aluminum Division
Sales	3,744	3,524	6.2	-The Company was still able to increase operating revenue year-on-year, thanks to the sales recovery during the second half of the year that made up for the reduction in new orders caused by the Great East Japan Earthquake during the first half of the year.
Operating income	(42)	(13)	-	-In spite of the Company’s successful efforts to lower some costs, operating profit was flat, remaining at the same level as that of the previous year due to depressed selling prices of products due to the high evaluation of the yen.

Recent Developments Outside Japan

-The Company is poised to increase overseas sales in its key business, die casting, to over 40 billion yen, which will account for 40 percent of its total sales, as early as in fiscal 2012 year. The Company is aiming to achieve this target by boosting production capacity and productivity at its overseas production facilities to meet a growing requirement from local automakers to increase their local sourcing ratio of components. The Company will expand two plants in China and also seek early recovery of investment by increasing sales in the Asian region as a whole. Simultaneously, it will make efforts to improve productivity further in other overseas facilities, including in North America in a bid to enhance profitability of its global operations. (From an article in the Nikkan Jidosha Shimbun on November 28, 2011)

<China>
-The Company announced that it held an opening ceremony for its Chinese subsidiary Hefei Ahresty Casting Co., Ltd. The subsidiary was set up in August 2010 and began its operation in July 2011. It is now ready for volume production. Hefei Ahresty Casting is engaged in die-casting and machining. (From a press release on November 30, 2011)

Business Reorganization

-Since the Company is forecasting lower demand for diecast products in the Japan Region, it is consolidating the operations of its Hamamatsu Plant and Toyohashi Plant into one plant, which it will name the Tokai Plant. The consolidation and reorganization is aimed for completion around March 2013.

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Total	882	940	875

R&D Facilities

Name	Location
Technical Center	Aichi Pref. Japan

R&D Activities

-The Company is advancing activities to improve the processes involved with producing suspension parts that use a NI diecast machine installed in the Higashi Matsuyama Plant, working to standardize products so as to increase their competitive advantages. In addition, the Company is developing suspension parts based on high ductile materials in which the Company has applied its proprietary vacuum technology, aiming to commercialize products for hybrid and new-generation-diesel vehicles.
-The Company is conducting R&D activities on joining/junction technology for application on auto-body-frame parts, aluminum-cast chassis parts, plastics, and steel sheets. 

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Total	14,088	7,929	6,070
Die Casting Division	14,081	7,890	6,056

Major Facilities Completed in FY ended Mar. 31, 2012 (Die-Cast Business)

Company Name	Details/Activities
The Company	New production facilities
Ahresty Tochigi Corporation	Additional production facilities
Ahresty Mexicana, S.A. de C.V.	Additional production facilities
Guangzhou Ahresty Casting Co., Ltd.	Additional production facilities
Ahresty India Private Limited	Additional production facilities
Hefei Ahresty Casting Co., Ltd.	Additional production facilities

Investment Activities Outside Japan
<China>
-The Company will greatly increase its production capacity in China by expanding the facility of Guangzhou Ahresty, which manufactures die-casting products. The subsidiary has obtained a license to use 21,000 square meters of land adjacent to its existing plant, which allows for plant expansion. The expansion project will involve installation of eight additional die-casting machines and construction of nine new machining lines, which is expected to raise the plant's production capacity for casting components by 30 percent. Investment in this project is likely to reach around 6.3 billion yen over the next two years. The Group will step up its production capability and improve operational efficiency to meet buoyant demand for die cast products in China. (From an article in the Nikkan Jidosha Shimbun on October 4, 2011)

Planned Capital Investment

(As of Mar. 31, 2012)

Name	Location	Type of facility	Planned investment (in millions of  JPY)	Start month	Planned completion	Increased capacity upon completion
The Company, Tokai plant	Aichi Pref., Japan	Facility producing die-cast products	900	Apr. 2012	Mar. 2013	-
Ahresty Tochigi Corporation	Tochigi Pref., Japan	Facility producing die-cast products	700	Apr. 2012	Mar. 2013	-
		Facility processing die-cast products	200	Apr. 2012	Mar. 2013	-
Ahresty Mexicana, S.A. de C.V.	Zacatecas, Mexico	Facility producing die-cast products	1,300	Jan. 2012	Dec. 2012	16% increase
		Facility processing die-cast products	3,800	Jan. 2012	Dec. 2012	-
Guangzhou Ahresty Casting Co., Ltd.	Guangdong, China	Facility producing die-cast products	900	Jan. 2012	Dec. 2012	18% increase
		Facility processing die-cast products	2,400	Jan. 2012	Dec. 2012	-
Hefei Ahresty Casting Co., Ltd.	Anhui, China	Facility producing die-cast products	300	Jan. 2012	Dec. 2012	-
		Facility processing die-cast products	400	Jan. 2012	Dec. 2012	-