Financial Overview

(in millions of JPY)

	FY ended Mar. 2013	FY ended Mar. 2012	Rate of change (%)	Factors
Overall
Sales	177,288	186,711	(5.0)	-Performance was down for the year due to lower sales in Europe and the U.S.A., although the Company experienced sales growth in the OEM market in Japan and the developing countries in Southeast Asia.
Operating income	3,210	7,873	(59.2)	-Performance was down for the year due to the lower content-rate of the Company’s higher priced products on OEMs’ vehicles and higher expenditures for R&D activities.
Ordinary income	3,326	7,193	(53.8)
Net income	1,358	7,532	(82.0)

Contracts

- The Company was awarded a contract to supply its car navigation system with smartphone connectivity for the new Suzuki Spacia mini-vehicle coming to the market on March 15. The navigation device offering significantly improved usability will be introduced as factory-installed optional equipment. Its advanced functions include the interactive touch screen with pinch-in and pinch-out finger feature to adjust the map scale. This is the first time for the Company to introduce the pinch-to-zoom function into a factory-installed navigation device. The smartphone interface is supported by the Company's “Smart Access” cloud service to provide value-added connectivity to drivers. The company will manufacture the navigation system at Clarion Manufacturing and Service Co., Ltd. in Koriyama, Fukushima Prefecture. (From an article in the Nikkan Jidosha Shimbun on Feb. 27, 2013)

Mid-term Management Plan

Forging Mid-term Plan under the Slogan: Migrating From Automotive Information Device Manufacturer to Information Systems Provider
- The Company announced its new mid-term business plan covering through the year ending March 2015 (FY2014). Its sales target is set at 220 billion yen, a 17.8 percent increase from the FY2011 result, while its operating profit margin is set at over 5 percent, a significant gain over 4.2 percent in FY2011. In order to achieve these goals, the company is going to step up development of information communication systems using cloud computing services to connect in-vehicle devices and external information terminals, while improving technical and sales capabilities in Europe, the U.S. and the emerging markets to engineer and offer products that meet the needs of local markets. In addition, it will work on expanding its supply capacity in the emerging nations where automakers are increasing their production volumes.

- Based on the slogan, “Evolving from an automotive information equipment supplier to an information system provider”, the Company is planning to release technology that connects smartphones with in-vehicle electronic devices such as car navigation systems or audio systems displays. It will also develop new products employing information communication technologies it supplied for the Nissan Leaf. In the area of communication between cockpit devices and external communication terminals, the company will adopt the Smart Access telematics service, an advanced version of the service the Company and Hitachi developed jointly for the Nissan Leaf. The Smart Access will be available from June through navigation systems on vehicles sold in Japan and the U.S. The service will then be introduced to all vehicles with the Company's navigation systems.

- The Company is also intending to provide driving and car maintenance information, as well as anti car-theft system through the telematics service, which will be connected to car navigation systems.

- In the area of production, the Company will support car manufacturers' global expansion plans by establishing a new plant in Thailand, expanding its existing facility in Mexico, and starting production in India through a local manufacturer in 2013. In addition, it will reinforce its operations based on its five-region sales and development structure of North and South Americas, Europe, China, ASEAN countries, and Japan. By developing and supplying products that best meet the requirements of each market, the company aims t to win new business. (From an article in the Nikkan Jidosha Shimbun on May 21, 2012)

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

Outlook for FY2014

(in million of JPY)

	FY ending Mar. 2014 (Estimate)	FY ended Mar. 2013 (Actual Results)	Rate of Change (%)
Sales	193,000	177,288	8.9
Operating income	3,700	3,210	15.3
Ordinary income	3,000	3,326	(9.8)
Net income	1,400	1,358	3.1

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 2013	FY ended Mar. 2012	FY ended Mar. 2011
Overall	15	14	142

R&D Activities
-The Company successfully developed the following technologies during its 2012 fiscal year;

• Created "Smart Access", a cloud-based telematics service designed for automotive use.
• By applying technology on image recognition, the Company was able to capture camera images of near-approaches of vehicles passing on highways and lane departure preventions. (Designed for the U.S. market)
• Worked on the diversifying onboard audio/cabin-acoustics technology.
• Developed a fully digital speaker.

Technology Licensed-in

(As of Mar. 31, 2013)

Partner	Country	Outline of Licensing Agreement	Contract period
Discovision Associate	U.S.A.	Licensed patent on manufacturing optical disc players	Dec. 1, 1994 to the patent expiry date
Vehicle Information and Communication System Center	Japan	License on the use of VICS technical information	Nov. 28, 1995 - expiry date agreed by two parties
Google Inc.	U.S.A.	License on the use of voice-recognition and retrieval technology	Apr. 30, 2013 - Aug. 31, 2016

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 2013	FY ended Mar. 2012	FY ended Mar. 2011
Total	4,298	3,361	1,601

Investment in Japan

-The Company invested 804 million yen in production equipment/facilities, dies, and other equipment.

Investment Outside Japan

<Americas>
-The Company invested 382 million yen in renewing equipment and facilities for the EMS operations at Electronica Clarion, S.A. de C.V.

<Europe>
-The Company invested 149 million yen in its European operations.

<Asia/Australia>
-The Company invested 2,961 million yen to renew plant facilities in China, manufacture dies for products to be used on new-model vehicles, and facilities and equipment for the launch of operations at a new plant in Thailand.