Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	31,360	30,658	2.3	-
Operating income	2,137	1,725	23.9	-
Ordinary income	2,741	1,864	47.0	-
Net income	1,867	968	92.9	-
Functional Precision Materials
Sales	3,975	3,918	1.5	-
Functional Precision Components
Sales	18,016	16,814	7.1	-Even though sales were lower after the eco-car sales incentives ended, sales for the year as a whole were higher due to tremendous increases in sales in the USA and China for products used for engines.

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 (%)
Sales	32,000	31,360	2.0
Operating income	2,400	2,137	12.3
Ordinary income	2,400	2,741	(12.4)
Net income	1,700	1,867	(8.9)

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

Mid-term Management Plan

-The Company established its mid-term management plan called Plan 37500. Under the Plan, the Company aims to increase its global share of automotive products, which will be based on precision metal plasticity processing, its core technology; digital products; and optical communications products. It will work to achieve operating revenue of 37.5 billion yen in fiscal year 2014. Its strategies for achieving these objectives are outlined below:

1) Expand Sales
-Along with developing markets for the products that it developments such as reactor coils for hybrid vehicles, the Company is developing new uses for its products that already have a high share of the global market.

2) Strengthen global production operations-In order to maintain its predominance while competing with manufacturers in developing countries, forecasting that demand in Asia and the U.S.A. will grow, and responding to currency risks and other risks, the Company will implement the following initiatives.

• Strengthen its three-region, global production structure based on operations in Japan, the U.S.A, and Asia, by continually investing.
• Launch production in China based on its joint-venture company manufacturing wire for valve springs, so as to respond to growing demand.

3) Enhance technical functions responsible for new-product development
-Speed up development of brand-new products such as processed terminal posts/pins and laminated electromagnetic steel sheet coils for hybrid cars, ensuring this by enhancing its production functions.

4) Reduce costs
-Lower costs by reducing production processes, developing materials that can be handled by compact production lines, and upgrade production lines that raise productivity.

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	786	703	523

R&D Activities

1) R&D Group (Japan)
Development of a terminal bus bar for PHVs
-The Company developed a process that freely forms flat wires and thus greatly reduces mechanical loss when, compared to traditional stamping processes. Furthermore, the Company, by developing insulating coating technology, was able to develop a terminal bus bar that no longer needs a plastic insulating cover. Launched commercial production from January 2013.

2) Functional Precision Materials (Japan)
Development of precision-rolled materials for high-torque spiral springs
-Aiming for a high torque level in its spiral springs used in automotive seatbelts, the Company worked on raising the strength of precision-rolled materials that form the core raw materials. In this context, the Company succeeded in developing rolled materials combined with processability of main springs that maintain their strength, by optimizing the material components and production conditions.

3) Functional Precision Components (Japan)
Development of mainsprings for new, variable valve train systems
-The Company developed mainsprings that use irregularly shaped cross section materials that achieve the same level of quality as valve springs, for new, variable valve train systems in next-generation engines. The Company has won a firm order from a non-Japanese OEM, planning to launch production from fiscal year 2013.

Development of highly retractable springs for seatbelt retractors
-The Company succeeded in developing a retractor that has 10% more retracting power than existing retractors by developing precision-rolled materials for high-torque springs made of precision functional materials, and through combining irregular-shape rolling technology and high deformation of springs. As a result, the Company was able to reduce the product weight by making the spring material thinner and reducing the length, which lead to a significant savings in costs. Planning to launch commercial production in FY2013, the Company is now actively conducting validation activities at customer locations.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
-Functional Precision Materials (Japan)	125	340	221
Functional Precision Materials Total	125	340	221
-Functional Precision Components (Japan)	501	586	715
-Functional Precision Components (USA)	355	88	26
-Functional Precision Components (Asia)	75	52	82
Functional Precision Components Total	931	726	823
Other	589	580	1,211
Grand Total	1,767	1,646	2,255

-The Company's main investment activities were for increasing its production volumes, improving productivity, reducing costs, raising product quality, and enhancing the environmental responsiveness of its products.

Functional Precision Materials
-The Company invested primarily in improvement of productivity of valve spring materials, precise deformed materials and quality.

Functional Precision Components
-Capital investments were mainly for reducing costs of automotive parts, improving productivity, and helping the environment.

Planned Capital Investments

(As of Mar. 31, 2013)

Company or Office Name	Facilities	Expected Investment (in millions of JPY)	Project period
			From	To
The Company (Kyoto, Japan)	Manufacturing facility (Functional Precision Materials)	520	Apr. 2013	Mar. 2014
The Company (Kyoto, Japan)	Manufacturing facility (Functional Precision Components)	643	Apr. 2013	Mar. 2014
Suncall America Inc. (Indiana, USA)	Manufacturing facility (Functional Precision Components)	228	Jan. 2013	Dec. 2013
Suncall High Precision (Thailand) Ltd. (Chonburi, Thailand)	Manufacturing facility (Functional Precision Components)	162	Jan. 2013	Dec. 2013
Suncall (Guangzhou) Co., Ltd (Guangzhou, China)	Manufacturing facility (Functional Precision Components)	165	Jan. 2013	Dec. 2013