Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change	Factors
Overall
Sales	105,887	103,800	2.0	-While sales in Japan were lower year-on-year, outside Japan they were higher.
Operating income	997	1,366	(27.0)	-
Ordinary income	711	888	(19.9)	-
Net income	(167)	1,420	-	-
Die Casting Division - Japan
Sales	60,630	65,114	(6.9)	-Orders for products destined for export dropped.
Operating income	601	1,463	(58.9)	-Along with lower sales, the Company incurred higher expenses temporarily in line with consolidating the Tokai Plants.
Die Casting Division - North America
Sales	22,886	18,761	22.0	-Orders from major customers in Japan recovered, after having fallen because of the Great East Japan Earthquake. In addition, orders also increased as a result of strong new-car sales on the heels of the moderate economic recovery in the U.S.A.
Operating income	744	314	136.9	-Orders increased year-on-year, along with the Company reducing a certain amount of expenses related to a delay in production in Mexico last year.
Die Casting Division - Asia
Sales	16,736	13,723	22.0	-In addition to the sales generated by its new production plant in Hefei, China, which came online in the summer of 2011, orders increased after its plants in Guangzhou, China, and in India, launched commercial production of new products.
Operating income	(521)	(504)	-	-The Company incurred an increase in fixed costs due to the prior investment costs in India and Hefei.
Aluminum Division
Sales	3,840	3,744	2.6	-The volume of orders the Company received were strong the entire year.
Operating income	50	(42)	-	-Market selling prices were stagnant, caused mainly by the high valuation of the yen, but the Company gained some specific benefits from the increased volume of orders and cost-cutting initiatives.

Recent Development Outside Japan

Increase the share of overseas sales of its aluminum die-cast products
-The Company is poised to increase the share of overseas sales of its aluminum die-cast products from the current 33 percent to about 55 percent by March 2015. Demand for Its flagship die-cast products is growing overseas as car manufacturers step up their production. The Company is planning to make capital investments in the range of 10 billion yen a year. It is currently expanding production capacity at its plants in China and Mexico along the strategy of constructing a comprehensive production system of die-cast products from casting to final processing overseas. The Company aims to increase overseas sales by reinforcing global supply capacity, including opening of new facilities. (From an article in the Nikkan Jidosha Shimbun on May 25, 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
Total	489	882	940

R&D Structure

-The Company will improve development capabilities at its overseas plants. It will install 3D modeling devices and analyzers at five facilities overseas, mainly for manufacturing aluminum die-casting products including engine blocks and transfer cases. It aims to reduce the lead-time from trial production to mass production and to improve production technology. As the Company expects that overseas sales ratio should exceed 50% of its sales as early as 2015, it is accelerating its efforts to strengthen development capabilities overseas. (From an article in the Nikkan Jidosha Shimbun on Jun. 8, 2012)

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, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Total	11,472	14,088	7,929
-Die Casting Division	11,457	14,081	7,890

Major Facilities Completed in FY ended Mar. 31, 2013 (Die-Cast Business)

Company Name (Location)	Details/Activities
Ahresty Wilmington Corp. (USA)	Additional production facilities
Ahresty Mexicana, S.A. de C.V. (Mexico)	Additional production facilities
Guangzhou Ahresty Casting Co., Ltd. (Guangdong China)	Additional production facilities
Hefei Ahresty Casting Co., Ltd. (Anhui, China)	Additional production facilities

Investments in Japan
-The Company is going to increase production capacity at the Toyohashi Plant in Aichi Prefecture by more than 50 percent. After the planned shutdown of its Hamamatsu Plant (Shizuoka Prefecture) at the end of this fiscal year, the Company will move the production equipment in Hamamatsu to its Toyohashi Plant, which will be thereafter called the Tokai Plant. Installing some additional equipment, the Tokai Plant will become one of the largest die-casting facilities in Japan. The Company has already started transferring furnaces and die-casting machines from Hamamatsu, while replacing aging equipment with new ones and improving production efficiency in Toyohashi. Some of the production equipment in Hamamatsu will be sent to Ahresty's facilities in Mexico and India, which will raise the Group's production capacity outside Japan. (From an article in the Nikkan Jidosha Shimbun on Jun. 27, 2012)

Investments Outside Japan
<Mexico>
-Ahresty Mexicana, S.A. de C.V. has completed expansion of its casting and production facilities, which started in the spring 2012 for boosting capacity. As a next step, the Mexican subsidiary is going to enlarge its die making facility to build up die production and maintenance operations. The Company has already added 2,600 square meters of building area to its existing plant on 100,000 square meters of land, which increased the overall building area to 31,000 square meters.

• The number of die casting machines has been raised to 17, while the Company is going to add 4 more by early 2013.
• The Company will also construct 3 more machining lines in addition to the 22 lines it already established.
• Furthermore, by the middle of December 2012, its die making facility will be extended by 1,200 square meters in building area with its total building area reaching 2,800 square meters.

Planned Capital Investment

(As of Mar. 31, 2013)

Name	Location	Type of facility	Planned investment (in millions of  JPY)	Start month	Planned completion	Increased capacity upon completion
Ahresty Pretech Corporation	Shizuoka Pref., Japan	Facility processing die-cast products	700	Jan. 2013	Dec. 2013	-
Ahresty Wilmington Corp.	Ohio, USA	Facility producing die-cast products	500	Apr. 2013	Mar. 2014	19% increase
		Facility processing die-cast products	1,500	Apr. 2013	Mar. 2014	-
Ahresty Mexicana, S.A. de C.V.	Zacatecas, Mexico	Facility producing die-cast products	400	Jan. 2013	Dec. 2013	3% increase
		Facility processing die-cast products	1,200	Jan. 2013	Dec. 2013	-
Guangzhou Ahresty Casting Co., Ltd.	Guangdong, China	Facility processing die-cast products	700	Jan. 2013	Dec. 2013	-
Hefei Ahresty Casting Co., Ltd.	Anhui, China	Facility producing die-cast products	700	Jan. 2013	Dec. 2013	85% increase
		Facility processing die-cast products	700	Jan. 2013	Dec. 2013	-
Ahresty India Private Limited	Haryana, India	Facility producing die-cast products	100	Apr. 2013	Mar. 2014	6% increase
		Facility processing die-cast products	300	Apr. 2013	Mar. 2014	-