Financial Overview

(in million JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Sales	271,361	273,210	(0.7)	-The Company recorded lower sales year-on-year because of the flooding in Thailand and negative currency translation, even though auto sales recovered in both North America and Japan.
Operating income	(1,645)	4,430	-	-In spite of the Company’s comprehensive initiatives to cut costs, the Company reported lower operating income year-on-year because of the soaring prices of raw materials such as copper, iron, and rare-earth minerals; and because of negative currency translation due to the high evaluation of the yen.
Ordinary income	(1,645)	3,640	-	-
Net income	3,935	1,466	168.4	-Net income rose significantly year-on-year because of an extraordinary profit the Company recorded. This extraordinary profit resulted from the difference in cost it had recorded in FY ended March, 2010 as an extraordinary loss to cover the expenses for a steering-motor issue in North America.

Performance by Region
<Japan>
-In Japan, the Company recorded a slight increase of 0.4% year-on-year in operating revenue, which resulted from a greater volume of vehicle units being produced because of eco-car sales-incentive programs.
-The Company recorded an operating loss of 3,588 million yen because of the soaring prices of materials, and negative currency translation. (The Company recorded an operating profit of 2,138 million yen for the fiscal year that ended March 2011.)

<USA>
-In spite of greater product sales in North America to both Japanese and Non-Japanese OEMs, which increased their vehicle production volumes, the Company recorded a 6.2% drop in operating revenue year-on-year due to negative currency translation.
-Operating profit decreased 63.2% year-on-year because of the soaring prices of raw materials, and because of negative currency translation.

<ASEAN>
-Operating revenue decreased 4.6% year-on-year because of negative currency translation and the flooding in Thailand. This was in spite of the fact that the Company exported a greater volume of products to North America.
-The Company was successful in significantly reducing its purchasing costs while increasing its productivity. As a result, it recorded a 61.7% increase year-on-year in operating profit, despite the soaring prices of raw materials, and negative currency translation.

<China>
-Operating revenue decreased 6.4% year-on-year as a result of its automotive customers reducing their production volumes because of the Great East Japan Earthquake and the flooding in Thailand.
-Operating profit significantly decreased year-on-year by 78.1%, because of the gap between the drop in operating revenue and the level of operating capacity.

Awards

-The Company was awarded an Excellence in Product Quality Award from Hino Motors in March 2012.
-In February 2012, Toyota Motors awarded the Company an Excellence in Product Quality Award.

Business Strategy

Strengthening Competitiveness
-The Company will strive to develop products that become the first of their kind in the world, working to create products featuring revolutionary technology. The Company will also aim to differentiate its products from those of its competitors. In addition to this, the Company plans to develop products that are immune to the rising costs of raw materials, planning to use technology that either reduces or eliminates the need for rare-earth minerals.

Strengthening Sales
-The Company will heavily invest to develop next-generation products and smart motors that feature revolutionary technology, increasing sales to a wider range of customers such as OEMs based in Europe, North America and developing countries. In addition to this, the Company will strengthen both its sales and R&D operating structures so as to offer products with greater uses. This will also enable the Company to grow its business in new sectors.

Expanding global operations
-In strengthening its production operations in China, the ASEAN Region, India and elsewhere, the Company will commit to developing new products and new business in developing countries. It will also further increase the ratio of local procurement in terms of parts and facilities, creating a truly unified and global production and supply structure throughout the entire Group.

R&D Expenditure

(in millions JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	12,237	11,624	10,308

R&D Activities

-In looking toward the future, the Company is developing technology on brushless motors and drive-control motors that will work with new automotive systems. Also, the Company is conducting further R&D activities on motors, striving to make them smaller, lighter, and more efficient. This is in addition to designing them so they require fewer resources such as rare-earth minerals. 

-In the pursuit of improving product quality and developing more appealing products, the Company is conducting joint R&D activities with universities and other research organizations on fundamental technology.

Product Development

Four-pole wiper motor
-The Company developed a motor that is more compact and lighter in weight than conventional motors, but is still able to provide the same level of power. This was possible because the Company designed a magnetic circuit, the motor's power source, capable of producing two times the power of conventional ones. It achieved this by using multipolarization, i.e., changing the design so that instead of there being one magnet to two poles there are now two magnets to four poles. This motor also lowers fuel consumption and CO2 emissions.

Motor for electric VVT (Variable Valve Timing)
-The Company developed a motor for electric VVT (Variable Valve Timing) by optimizing the motor's magnetic circuit. As a result, this motor can be mounted on compact vehicles because it is 30% thinner than existing ones. It also reduces fuel consumption.

Brushless blower motor with controller
-Compared to existing motors, this new brushless motor is more compact, lighter in weight, more efficient, and quieter based on multipolarization and its new vibration-damping design. This motor lowers fuel consumption used by the climate control system, and is also easier to install and quieter.

Technological Licensing-in Agreements

(As of Mar. 31, 2012)

Partner	Country	Product	Contractual Coverage	Contract Period
Canon Inc.	Japan	Ultrasonic wave motors	-Licensing of patented technologies and receiving of technical information	Jan. 1, 1998 - Dec. 31, 2017

Capital Expenditure

(in millions JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	11,678	9,779	6,648

-The Company invested in order to prepare for the production of next-release products, increase its production capacity, and improve its product quality and reliability.

-Capital expenditure for FY ending Mar. 31, 2013 is expected to be 15,400 million yen.

Investment Outside Japan

<China>
-The Company announced that it had held a groundbreaking ceremony of its third production facility in China at the Hangzhou Jiangdong Industrial Zone. The new plant will produce about 10 million motors a year, including electric power steering motors and anti-lock brake motors. The first-phase construction is scheduled to complete in March 2012, and the plant is expected to go into operation in August of the year. (From a press release on September 4, 2011)

-The expansion project to add 12,000sq. meters of space at Tianjin Asmo Automotive Small Motor Co., Ltd. has been completed. The new area, which will launch operations from August 2011, was built to increase business and raise the level of local procurement.

<Indonesia>
-The Company committed to expanding its existing production facilities in Indonesia in order to further expand demand in and outside the ASEAN Region and build its competitive advantages.

<India>
-The Company decided to move and expand its motor production plant in India.

Planned Capital Investments

(As of Mar. 31, 2012)

Company name	Location	Type of facility	Planned total investment (million JPY)
Main plant	Shizuoka Pref., Japan	Facility producing small motors	5,500
Tianjin Asmo Automotive Small Motor Co., Ltd.	Tianjin, China	Facility producing small motors	2,500