Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Sales	348,478	303,097	15.0	-Sales increased due to increased vehicle production and the positive impact of a weaker yen.
Operating income	17,506	11,300	54.9	-Operating income and ordinary income rose year-on-year due to capacity utilization gains as a result of the Company’s streamlining efforts and increased sales. Favorable currency translation because of weaker yen was another factor to the better performance. These improvements offset increases in expenses and labor costs related to new product releases.
Ordinary income	18,689	11,713	59.6
Net income	17,473	922	1,795.1	-Net income dramatically increased from the previous year when the Company posted an extraordinary loss for a one-time withdrawal of welfare pension funds.

Performance by Region
<Japan>
-Sales increased 8.5 percent year-on-year thanks to growth in exports to North America and China. Weaker yen also contributed to the improvement.
-Operating profit rose 80.3 percent year-on-year due to improved capacity gains as a result of the Company's streamlining efforts and increased sales. Weaker yen was another factor to the better performance.

<North America>
-Sales increased 37.2 percent year-on-year due to growth in vehicle production volumes at North American and Japanese automakers. The impact of weaker yen also boosted sales.
-Although the Company reported significant expenses for launching new products, operating income rose 15.8 percent year-on-year due to improved capacity utilization gains as a result of increased sales, which more than offset the cost increase.

<ASEAN>
-Sales rose 27.1 percent year-on-year supported by increased vehicle production by Japanese automakers and the impact of weakened yen.
-Although the Company reported capacity utilization gains due to increased sales, operating income fell 80.1 percent year-on-year. Income dropped, because PT. Asmo Indonesia suffered currency translation losses due to the depreciation of Indonesian Rupiah and also posted considerable amortization expenses.

<China>
-Sales rose 70.4 percent year-on-year because Japanese automakers increased their production volumes and the impact of weaker yen boosted the Company's revenue.
-The Company reported a larger operating loss of JPY 1,932 million (operating loss for FY ended March 2013: JPY 898 million) due to costs incurred for launching full-scale production at Asmo (Hangzhou Xiaoshan) Small Motor Co. Ltd. Initial costs for producing new products at Tianjin Asmo Automotive Small Motor Co., Ltd. also affected profitability.

Entering into the Myanmar market

-In 2013, the Company announced that it will perform manual assembly of washer hoses  in Myanmar. Production will take place at a rented facility in Yangon and will start in January 2014. The factory will handle labor-intensive, sub-assembly processes for small components. These components will be installed on products produced at Asmo's Indonesian plant. The Myanmar operation will also consider assemblying brush holders and other components in the future. The company will invest JPY 80 million in the new operation, and will expect to achieve JPY 340 million in yearly sales by 2015. The Yangon plant will serve as Asmo’s second production base in Southeast Asia, and will become the Denso Group’s first manufacturing site in Myanmar. (From an article in the Nikkan Jidosha Shimbun on October 3, 2013)

Awards

-The Company was awarded several VE/VA awards from Mazda.
-Toyota awarded the Company its Technical Development Award, recognizing the Company's development of power window motors.
-Johnson Controls Automotive Seating awarded the Company Supplier Performance Awards in silver. (From a press release on October 18, 2013)

R&D Expenditure

(in millions JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	13,913	13,172	12,237

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

Power window motor
-In 2013, the Company developed the world's first power window motor with an up/down anti-jam function. The new control motor automatically stops the window when a piece of clothing or a body part is detected not only in the closing cycle but also in the open cycle.

-In 2013, the Company developed the world's first power window motor with an up/down anti-jam function. Currently, there are various vehicles that have power windows with an anti-pinch feature, which prevents foreign objects from being caught in a closing window. Asmo's new control motor automatically stops the window when a piece of clothing or a body part is detected during both the open and close cycles. The advanced control device is expected to improve vehicle safety. Asmo has already won its first order, and will soon start production of the motor at its main plant in Shizuoka. It will continue to market the product to automakers. (From an article in the Nikkan Jidosha Shimbun on December 24, 2013)

Rear camera washer
-The washer system removes dust and dirt from the rear camera to maintain clear visibility.

Technological Licensing-in Agreements

(As of Mar. 31, 2014)

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, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Japan	12,552	6,362	7,034
North America	4,737	1,424	596
ASEAN	5,700	2,808	2,623
China	3,284	5,053	1,442
Others	1,080	982	342
Consolidated elimination	(737)	(71)	(360)
Overall	26,617	16,559	11,678

-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.

Planned Capital Investments

(As of Mar. 31, 2014)

Company name	Location	Type of facility	Planned total investment (million JPY)
Main plant	Shizuoka Pref., Japan	Facility producing small motors	14,630
Asmo North Carolina, Inc.	North Carolina, USA	Facility producing small motors	3,100
PT. Asmo Indonesia	West Java, Indonesia	Facility producing small motors, etc.	2,100