Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	126,783	105,887	19.7	-Increased orders as a result of the strong automotive market, favorable currency translation, etc.
Operating income	4,449	997	346.2	-
Ordinary income	4,012	711	464.3	-
Net income	6,272	(167)	-	-
Die Casting Division - Japan
Sales	62,228	60,630	2.6	-Increased domestic demand before the consumption tax hike in April 2014, increased production volume for the strong North American market, and a recovery in production for the Chinese market
Operating income	3,656	601	508.3	-Changed depreciation method and enhanced productivity
Die Casting Division - North America
Sales	33,906	22,886	48.2	-Increased orders as a result of the strong automotive market in the U.S.A., favorable currency translation, etc.
Operating income	509	744	(31.6)	-Higher fixed expenses as a result of making capital improvements.
Die Casting Division - Asia
Sales	24,143	16,736	44.3	-Japanese OEMs operating in China are showing signs of recovery in terms of production volumes, which resulted in the Company winning greater orders. In India also, the Company won more orders as a result of commencing mass production of a new product.
Operating income	180	(521)	-	-Income increased as a result of higher sales.
Aluminum Division
Sales	4,657	3,840	21.3	-Higher product selling prices and greater number of product orders.
Operating income	(6)	50	-	-In addition to being unable to add cost increases for raw materials into the selling prices of products, utility expenses such as crude oil, electricity, and gas also increased significantly.

Business Plan

Mid-term management plan
-The Company announced its new mid-term management plan. Under the plan, the company aims to achieve operating profit ratio of 5.0 percent (an increase of 1.5 percentage point from the fiscal year ended in March 2014 (FY 2013)) on sales of JPY 143 billion in 2017 (up 12.8 percent from FY 2013). The Company will expand sales of aluminum die-cast parts to North America and Asia where demand is growing. In an effort to increase profitability, the Company will enhance productivity at its plants in China and India while increasing orders for products with appropriate prices. (From an article in the Nikkan Jidosha Shimbun on May 30, 2014)

Improve productivity of its overseas plants
-The Company will focus on improving productivity of its plants outside Japan to respond to lower-than-anticipated profitability of its foreign subsidiaries in India, China, Mexico and other locations built or expanded in the past three years. The company will send a special team to each plant to improve productivity and enhance maintenance capability of the local staff. The Company's overseas market is expanding, but the company will halt investing in the construction of planned new plants for the time being to prioritize improving productivity of the existing factories. (From an article in the Nikkan Jidosha Shimbun on Jun 17, 2013)

Contracts

<Nissan>
-The Company announced that it started supplying engine blocks to Dongfeng Nissan Passenger Vehicle Company, Nissan's Chinese joint venture, in August 2013. This will be the first time that Ahresty's engine blocks will be used in Nissan vehicles. Engine block production is taking place at Hefei Ahresty Casting Co., Ltd. in Hefei, Anhui Province.　(From an article in the Nikkan Jidosha Shimbun on September 24, 2013)

<Volkswagen>
-Guangzhou Ahresty in China began producing and delivering to the Volkswagen Group brackets for 1.8L and 2.0L TFSI engines, which are being produced at Volkswagen FAW Engine (Dalian) Co., Ltd. and Shanghai Volkswagen Automotive Co., Ltd. These engines are being mounted on the Audi A4L, Q5, etc.

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

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Total	457	489	882

R&D Facilities

Name	Location
Technical Center	Aichi Pref., Japan

R&D Activities

-With the automotive market expanding worldwide, the Company is developing production technology to improve productivity in order to ensure that the Company has competitive strength and the capability to respond the global market as a die-cast maker.
-As part of its efforts to develop product proposals based on market analysis, the Company is developing suspension and chassis/body-frame parts from highly ductile materials that make use of the Company's proprietary vacuum technology.
-The Company is developing new die-cast materials to satisfy its customer' need for lighter weight products.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Total	10,518	11,472	14,088
-Die Casting Division	10,492	11,457	14,081

-Major facilities completed in FY ended Mar. 31, 2014 (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

Investment outside Japan

<China>
-The Company announced that it began the second-phase of a construction project at the third plant of its Chinese subsidiary, Guangzhou Ahresty Casting Co., Ltd., in October. Plans include constructing an office building and a parts warehouse. The establishment of the third plant, whose factory building was already built in the first phase, will allow the subsidiary to integrate operations performed at nearby three rented factories. This will allow the Company to improve the efficiency of its logistics system to meet increasing production volumes. When this project is completed in September 2014, the new plant will have 31 die casting machines with a casting capacity of 2,600 tons per month. (From an article in the Nikkan Jidosha Shimbun on October 28, 2013)

<USA>
-The Company announced that it has commenced an expansion work at Ahresty Wilmington Corporation, its U.S. subsidiary in the state of Ohio. The expansion project, planned to be completed in the middle of June, is to increase production capacity. A warehouse area and a designated space to prepare for the delivery will be secured, while new casting machines and processing lines will be added in the existing building. Installation of new facilities had begun in March, prior to the plant expansion. This time, a 2,664-square-meter building will be built adjacent to the existing factory with an area of approx. 30,180 square meters. Four new die-casting machines will be added to the existing 22 units, while the number of machine processing lines will be increased to 38 lines from current 34. (From an article in the Nikkan Jidosha Shimbun on Apr. 9, 2013)

<Mexico>
-The Company started expanding the floor space and increasing forging facilities at Ahresty Mexicana S.A. de C.V., its forging plant in Mexico, planning to complete the project in September 2014. The expanded floor space will be 920 sq. meters, on which five die-cast machines will be installed in August 2015. Production capacity will be doubled by the end of the fiscal year that ends March 2016.

Planned Capital Investment

(As of Mar. 31, 2014)

Name	Location	Type of facility	Planned investment (in million JPY)	Start month	Planned completion	Increased capacity upon completion
Ahresty Wilmington Corp.	Ohio, USA	Facility producing die-cast products	870	Apr. 2014	Mar. 2015	-
		Facility processing die-cast products	2,260	Jul. 2013	Mar. 2015	-
Ahresty Mexicana, S.A. de C.V.	Zacatecas, Mexico	Facility producing die-cast products	1,830	Apr. 2014	Mar. 2015	15% increase
		Facility processing die-cast products	1,140	Apr. 2014	Mar. 2015	-
Guangzhou Ahresty Casting Co., Ltd.	Guangdong, China	Facility producing die-cast products	1,290	Jul. 2013	Mar. 2015	4% increase
		Facility processing die-cast products	800	May 2013	Mar. 2015	-
Hefei Ahresty Casting Co., Ltd.	Anhui, China	Facility producing die-cast products	1,160	Apr. 2014	Mar. 2015	12% increase
		Facility processing die-cast products	180	Apr. 2014	Mar. 2015	-
Ahresty India Private Limited	Haryana, India	Facility producing die-cast products	900	Apr. 2014	Mar. 2015	22% increase
		Facility processing die-cast products	60	Apr. 2014	Mar. 2015	-