Financial Overview

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Sales	303,097	271,361	11.7	-Revenue increased due to a recovery in automotive production in Japan and robust sales in North America and ASEAN.
Operating income	11,300	(1,645)	-	-Income increased due to thorough cost-cutting initiatives such as reducing materials expenses, improved profit margins based on higher operating levels, and favorable exchange rates because of the low valuation of the yen.
Ordinary income	11,713	(1,645)	-	-
Net income	922	3,935	(76.6)	-Net income decreased due to an extraordinary loss for a one-time withdrawal of welfare pension funds.

Performance by Region
<Japan>
-Operating revenue increased 10.9% year-on-year due to a recovery in auto production volumes in Japan because of eco-car sales incentive programs and the like; and due to robust exports to North America and ASEAN.  
-Operating income was 10,020 million yen (compared to a 3,588 million yen operating loss in FY2012) because of improved profit margins based on higher operating levels and favorable exchange rates because of the high valuation of the yen.

<USA>
-Operating revenue increased 24.1% year-on-year due to increased automotive production volumes at North American and Japanese OEMs.
-Operating income increased 104.6% year-on-year due to improved profit margins based on higher operating levels and improved cost-cutting measures.

<ASEAN>
-Operating revenue increased 35.3% year-on-year due to increased automotive production volumes at Japanese OEMs.
-Operating income increased 61.2% year-on-year due to improved profit margins based on higher operating levels and improved cost-cutting measures.

<China>
- Operating revenue barely increased, rising 0.4% year-on-year. This is due to lower production volumes because of the consumer trend in China to avoid buying Japanese vehicles, in spite of increased volumes of products designed for Europe and the launch of production at Asmo Hangzhou Xiaoshan Small Motor Co., Ltd. in August.
-The Company suffered an operating loss of 898 million yen because of expenses incurred with the launch of operations at Asmo Hangzhou Xiaoshan Small Motor Co., Ltd. For reference, the Company achieved an operating income of 113 million yen in FY2012.

Awards

-In March 2013, the Company was awarded several VE/VA awards from Mazda.
-The Company was awarded the "Excellence in Product Quality Award" from Hino Motors in March 2013.
-In August 2012, Toyota awarded the Company its Technical Development Award, recognizing the Company’s development of a front-wiper motor with a highly efficient, speed-reduction mechanism.

Business Strategy

Strengthening Competitiveness
-In establishing technology independent of rare resources, and new designs for motors incorporating revolutionary technology that are “world firsts”, the Company is working on differentiating itself from its competitors. In addition, the Company is advancing in-house development of brushless-motor control circuits and developing new products and production methods. Based on a global vision to completely standardize products and parts and minimize the sizes of facilities and equipment, the Company is speeding up its efforts in decisive and innovative product creation based on strengthening its expertise in the area of downsizing and processing technology. In line with this, the Company is advancing initiatives to increase in-house production of its mainstream products.

Strengthening Sales
-The Company is actively initiating ways to increase sales of next-generation products and onboard motor control-circuits, which incorporate innovative technology, working to expand new applications and uses for these products. In addition, the Company is conducting a wide range of sales activities in sectors new to the company, including new markets and developing countries.

Expanding Global Operations
-The Company has successfully launched production facilities in China, ASEAN, India and other countries by both upgrading existing facilities and adding new ones.  Besides making new advances in launching business operations and investing in new businesses in emerging-market countries, the Company is working to localize production and procurement operations that take into account currency fluctuations, and revolutionize global logistics.

Improving Profitability and Building a　Sound Management Structure to Ensure Sustained Business Growth
-The Company is developing core human resources that will become the driving force behind worldwide growth targeting the next generation. In addition the Company is localizing management. It is also creating a system that will enable workers at all of its production facilities to view production information.
-Under the aim of enhancing its quality-control framework, such as setting up new quality-control departments, the Company is strengthening EDER (Early Detection, Early Resolution) activities throughout the entire Group, including its production facilities that have new and upgraded facilities.

R&D Expenditure

(in millions JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	13,172	12,237	11,624

R&D Activities

-In developing products for the future, the Company is working on brushless motors and drive-control technology that can respond to new systems equipped on vehicles. In addition, the Company is developing motor technology that further pursues making motors smarter, more compact, more efficient, and less resource-reliant by creating single-unit motors.

Product Development

Front Wiper Motor
-By incorporating a highly efficient, speed-reduction mechanism in its compact and lighter front-wiper motor based on multipolarization technology, the Company succeeded in developing an even smaller and more energy-saving motor.

Electric Fan Motor
-As for products that the Company produces in China, it developed an electric fan motor by locally procuring and assembling parts and materials. The fan is already scheduled to be equipped on some vehicle models.

Technological Licensing-in Agreements

(As of Mar. 31, 2013)

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, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	16,559	11,678	9,779

-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, 2014 is expected to be 16,500 million yen.

Investment Outside Japan

<China>
-The Company held a ceremony to mark completion of its new Chinese plant, Asmo Hangzhou Xiaoshan Small Motor Co., Ltd. The plant is expected to begin its operations in August 2012, and supply small motors for automobiles. (From a press release on July 26, 2012)
-In fiscal year 2012, the Company invested 2,860 million yen in its plant buildings and production facilities manufacturing compact motors.

-The Company upgraded and expanded facilities at Tianjin Asmo Automotive Small Motor Co., Ltd.

<Indonesia>
-The Company expanded its existing production facilities in Indonesia, PT.Asmo Indonesia.

<India>
-The Company started moving its motor production plant in India.

Planned Capital Investments

(As of Mar. 31, 2013)

Company name	Location	Type of facility	Planned total investment (million JPY)
Main plant	Shizuoka Pref., Japan	Facility producing small motors	7,300
PT. Asmo Indonesia	West Java, Indonesia	Facility producing small motors, etc.	2,300