Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	53,547	51,981	3.0	-
Operating income	4,702	4,666	0.8	-
Ordinary income	5,602	4,919	13.9	-
Net income	3,332	2,957	12.7	-
Bearing business
Sales	35,802	34,872	2.7	-Automotive products: Reaping the benefits brought about by increased production volumes at Japanese OEMS in and outside Japan, the Company was able to increase sales and operating income.
Operating income	4,046	3,864	4.7

Reorganization

<China>
-The Company announced additional investment in Oiles Suzhou Corp., its consolidated subsidiary in Jiangsu, China, turning the subsidiary into a Specified Subsidiary. Oiles Suzuhou Corp., which manufactures and sells oil-less bearings, plans to make facility investment of 1, 935 million yen between FY2012 and FY2017 in an aim to increase its production capacity. In order to provide a part of the facility investment cost, the parent company has decided to increase the capital amount of Oiles Suzuhou and underwrite all the cost. (From an article in the Nikkan Jidosha Shimbun on May 24, 2012)

<India>
-The Company announced that it will inject an additional capital of 355 million Indian rupees (approximately 568 million yen) into its consolidated subsidiary Oiles India Private Limited in July 2012. After the capital injection, the subsidiary will become a specified subsidiary of the Company. (From a press release on May 8, 2012)

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

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Overall
Sales	58,800	53,547	9.8
Operating income	6,000	4,702	27.6
Ordinary income	6,600	5,602	17.8
Net income	3,900	3,332	17.0

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Group	2,346	1,937	2,286
-% of Sales	4.4%	3.7%	4.4%
Bearing business	1,542	1,301	1,640

R&D Employees

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Total	177	163

R&D Facilities

-The Company has a technical center at its Fujisawa Sales Office located in Kanagawa Prefecture.

R&D Activities

Bearings business
-During the fiscal year ended Mar. 2013, the Company conducted the following R&D activities:.

• Developing improvements to parts for four-wheel and two-wheel vehicles.
• Developing new products designed for next-generation vehicles.
• Developing low-cost materials by making use of its technological expertise in the areas of friction, abrasion, and lubrication.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Group	4,054	2,263	1,871
Bearings business	3,313	1,992	1,730

Planned Capital Investments for Bearing Facilities

(As of Mar. 31, 2013)

Company or Office	Purpose of Investment	Planned amount (in millions of JPY)	Construction start	Planned completion
Fujisawa Plant (Kanagawa Pref., Japan)	Testing and R&D facilities	1,676	Oct. 2011	Mar. 2014
	Production facility	667	Jun. 2007	Mar. 2014
Shiga Plant (Shiga Pref., Japan)	Production facility	1,168	Oct. 2011	Mar. 2014
Oita Plant (Oita Pref., Japan)	Production facility	495	Jan. 2012	Mar. 2014
Ashikaga Plant (Tochigi Pref., Japan)	Testing and R&D facilities, Production facility	981	Jan. 2011	Mar. 2014
Luby Industrial Company Ltd. (Fukushima Pref., Japan)	Production facility	50	Apr. 2013	Jul. 2013
Oiles America Corporation (North Carolina, USA)	Production facility	611	Apr. 2011	Oct. 2013
Oiles Suzhou Corporation (Jiangsu, China)	Production facility	1,288	Feb. 2011	Apr. 2014
Oiles (Thailand) Company Limited (Rayon, Thailand)	Production facility	145	Dec. 2012	Jun. 2013
Other subsidiaries	Production facility	129	-	-