Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	234,262	202,236	15.8	-
Operating income	19,434	14,360	35.3	-
Ordinary income	21,024	16,326	28.8	-
Net income	12,268	9,722	26.2	-
MT business
Sales	67,649	60,223	12.3	-Favorable currency translation due to the weak yen; increased orders in Asia and China
Operating income	10,226	8,107	26.1	-
AT business
Sales	141,859	120,898	17.3	-Favorable currency translation due to the weak yen; increased orders placed by Japanese OEMs; launch of sales at new business operation
Operating income	10,422	6,575	58.5	-

Contracts
<Nissan>
-The Company received an order for dry type multi-plate clutches and flywheel dampers for the 2014 Pathfinder Hybrid released by Nissan Motor Co., Ltd. in the U.S. The dry type multi-plate clutch and the flywheel damper are super-thin, high-performance type, which can be installed on front-wheel-drive hybrid vehicles (HVs). This is the first time for dry type multi-plate clutch is used on HVs. Friction material for the clutch has enhanced abrasion resistance and frictional vibration resistance, and has been jointly developed by Nissan and Exedy Friction Material Co., Ltd., Exedy's subsidiary in Thailand. (From an article in the Nikkan Jidosha Shimbun on January 22, 2014)

Awards
<JATCO>
-The Company announced that EXEDY America and EXEDY DYNAX Mexico both received Best Performance awards from Jatco Mexico, S.A. de C.V. (From a press release on August 29, 2013)

-EXEDY Shanghai received the Jatco Supplier Award from Jatco (Guangzhou) Automatic Transmission Ltd. in recognition of its production quality improvement efforts. (From a press release on August 29, 2013)

-The Company announced that it has received Jatco Ltd.'s the "2012 Jatco Supplier Award" in recognition of the development of its high-performance, low-cost torque converter. (From a press release on August 9, 2013)

<Daihatsu>

-The Company announced that it has received the "Special Quality Award" and an award for "Continuous Excellence in Quality" from Daihatsu. This is the 13th consecutive year that EXEDY has received awards from Daihatsu. (From a press release on April 17, 2013)

Outlook for FY ending 2015

(in million JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ended Mar. 31, 2014 (Actual Results)	Rate of Change (%)
Sales	245,000	234,262	4.6
Operating income	20,000	19,434	2.9
Ordinary income	19,000	21,024	(9.6)
Net income	11,500	12,268	(6.3)

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

R&D Expenditures

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
MT business	863	922	1,142
AT business	1,533	1,386	1,711
Others	685	736	696
New products	1,490	1,132	861
Total	4,573	4,177	4,411

R&D Structure

-The Company employs 437 engineers, which account for approximately 3 percent of its overall workforce (as of Mar. 31, 2014).
-R&D activities are conducted mainly at the following locations:

Name	Location
Japan
DYNAX Corporation	Hokkaido
Outside Japan
EXEDY Chongqing Co., Ltd.	Chongqing, China
EXEDY DYNAX SHANGHAI Co., Ltd.	Shanghai, China
EXEDY Friction Material Co., Ltd.	Chonburi, Thailand
EXEDY ENGINEERING ASIA Co., Ltd.	Chonburi, Thailand
EXEDY India Ltd.	Maharashtra, India

R&D Activities

MT business
-In the area of parts designed for passenger vehicles, the Company developed a duel-mass flywheel and a clutch with a high-performance damper that absorbs the vibration coming from direct-injection diesel engines and lean-burn engines crated to reduce environmental impact and meet the need for lower fuel consumption.

-Development achievements of commercial vehicle parts included manual transmission clutches as well as the computer units, actuator units and motor drivers of automated manual transmissions, which are manual transmission with automatic startup and gear changing functions.

AT business
-The Company is constantly making use of the latest computer systems to conduct research on wet-type clutches, in order to eliminate internal oil leaks, relieve surface pressure, and improve anti-slip performance.

-One development at the AT Business included the successful creation of a torque converter that reduces vibration when the low-speed clutch is disengaged while the lock-up range is increased to the low-speed gear range so as to lower fuel consumption. The Company has won new orders for this torque converter.

-DYNAX, which is a consolidated subsidiary of the Company, is developing friction materials for lock-up clutches and other components for automatic transmissions. It is working on wet type friction materials using non-woven fabrics. In the area of commercial vehicle products, DYNAX is engineering products for dual clutch transmissions. It is already mass producing wet type dual clutches, first for commercial vehicles.

Other business
-For hybrid vehicles, the Company is developing dampers to absorb vibration produced when the power source is switched between the engine and the motor. It is also engineering new products, including a damper with a torque limiter, which prevents situations when the engine has to operate under the maximum load level.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
MT Business	4,662	3,052	5,175
AT Business	16,943	11,216	12,451
Others	6,310	1,766	2,225
Total	27,915	16,034	19,852

MT business
-The Company invested to rationalize operations and increase production volumes at its own facilities as well as at its subsidiaries in Asia.

AT business
-The Company invested to increase production volumes at its own facilities as well as at its subsidiaries in Japan and Asia.

Planned Capital Investments

-The Group plans to spend JPY 26,000 million on capital investments in the fiscal year ending March 2015. Out of this, JPY 4,420 million will be invested in the manual transmission business and JPY 16,850 million in the automatic transmission business.