Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	263,119	243,108	8.2	-Factors contributing to the performance included the Company’s improving productivity and reducing costs through innovative activities such as developing products that precisely respond to market needs, strengthening sales activities designed to increase new supply agreements, and eliminating waste in production processes and indirect functions.
Operating income	27,475	26,439	3.9
Ordinary income	30,148	28,580	5.5	-
Net income	17,760	13,822	28.5	-
Automotive products
Sales	185,451	169,927	9.1	-Operating income decreased as a result of poor performance as a whole in the Company’s so-called core revenue-generating regions. Although production volume increased in the U.S.A., the Company reported lower revenue in China, where production volume at Japanese OEMS dropped, and in emerging countries in Asia, where motorcycle production fell.
Operating income	21,824	22,823	(4.4)
Electronic Components
Sales	25,620	25,350	1.1	-Sales of LED products designed for the automotive and leisure markets grew.
Operating income	2,910	2,689	8.2
Applied Electronic Products
Sales	51,908	47,673	8.9	-Income increased as a result of the growing market mainly for automotive control panels.
Operating income	4,152	3,211	8.9

 

Outlook for FY ending Mar 31, 2014

（in million JPY）

	FY ending Mar 31, 2014 (Estimate)	FY ended Mar. 31, 2013 (Result)	Rate of Change (%)
Sales	302,000	263,119	14.8
Operating income	35,500	27,475	29.2
Ordinary income	37,800	30,148	25.4
Net income	22,200	17,760	25.0

The Fifth Medium-term Three Year Business Plan (April 2013 through March 2016)

1.　Setting up a System for Managing Cash-flow	-All Group companies are to generate cash regardless of what environmental circumstances they face, creating a framework to make effective use of the cash they created for the future growth of the Group. -Maximize cash generated through sales activities and enhance corporate value based on a solid financial structure.
2. Growing and Expanding into New Business Areas	-Raise the level of market information, and the analysis of such, to stay ahead of future developments. -Effectively execute schemes for “companywide innovation” that is the basis of creating new products and businesses.

Mass producing three new types of LED Headlamps

-In January 2013, the Company announced that it is mass-producing three new types of LED headlamps. The new product lineup will allow the company to cater to the requirements for each vehicle class, from economy cars to high-end vehicles.

• The projector-type, a compact headlamp requiring less installation space, is fitted to the Mitsubishi "i-MiEV".
• The low-cost, reflector-type headlamp is featured on the "Demio" by Mazda.
• The direct projection type, which has a wide illumination range, is equipped on the Honda "Acura RLX".

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	5,479	5,423	4,983
Automotive products	1,865	1,674	1,634

R&D Facilities

Name of Facilities	Location
Research & Development Laboratory	Yokohama City, Kanagawa Pref., Japan
Tsukuba Research Laboratory	Tsukuba City, Ibaraki Pref., Japan
Utsunomiya Technical Center	Utsunomiya City, Tochigi Pref., Japan
Yokohama Technical Center	Yokohama City, Kanagawa Pref., Japan
Opto Technical Center	Yokohama City, Kanagawa Pref., Japan

R&D Activities

1) Optoelectronics area
-High power white LEDs
-High power red/infrared LEDs
-High speed sensitive image sensors

2) Display area
-Super-high contrast LCDs
-Optical micro-scanners
-Display drive circuits

3) Source of light and illumination area
-Automotive lamps
-LED street lightings and indoor lightings
-Lighting power circuits and power sources

4) Software area
-Distribution light simulation systems
-Optical device optimal design tools

5) Materials and processing area

6) Styling and design of all products

7) Products utilizing above devices and technology

Product Development

Direct projection LED headlamp
-In January 2013, the Company announced that it developed a new direct projection LED headlamp that utilizes the Company's advanced lighting control technology and unique LED light source. The new headlamps are featured on the new Honda "Acura RLX", which was unveiled in November 2012. Compared to conventional headlamps, the new LED headlamp can provide more adjustable light distribution as well as a wider view created by a broad illumination range. In addition, the new headlamp is approximately 50 percent thinner than the previous version to improve the flexibility of the vehicle design. The lightweight and low-power lighting unit also contributes to enhancing fuel efficiency. (From an article in the Nikkan Jidosha Shimbun on Jan. 10, 2013)

High contrast LCD
-In April 2012, the Company announced that it has developed the Special-Pure Black Technology (S-PBT) liquid crystal display (LCD), which offers clear vision and high contrast image when viewed from any angle. In conventional LCDs, images have become unclear or hard-to-see from certain angles. The Company's engineers have overcome this challenge by introducing the orientation controlling technology for liquid crystal molecules, which essentially eliminates the concept of "view angle". The new technology is expected to be introduced to various electric devices such as car audio equipment, meters, information terminals and office automation equipment. (From an article in the Nikkan Jidosha Shimbun on April 21, 2012)

Technology Licensing-in Agreement

(As of Mar. 31, 2013)

Partner	Technology	Period
Hitachi Ltd.	Patent on LCD	Validity period of the patent
Nichia Corporation	Patent on White LED	Validity period of the patent

Technology Licensing-out Agreement

(As of Mar. 31, 2013)

Partner	Content	Term
Thai Stanley electric Public Co., Ltd. (Thailand)	Technology related to automotive lamps	April 1, 2012- March 31, 2015
SL Lighting Corporation (Korea)	Technology related to automotive lamps	April 1, 2009- March 31, 2014
Kenmos Technology Co., Ltd. (Taiwan)	Technology related to area light source	April 1, 2013- March 31, 2014
Lumax Industries Ltd. (India)	Technology related to automotive lamps	April 1, 2013- March 31, 2014

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	31,164	23,358	25,895
Automotive products	23,767	17,565	15,577

Plans for New Production Facilities

(As of Mar. 31, 2013)

Name (Location)	Type of facility	Total amount (in million JPY)	Start	Completion
Wuhan Stanley Electric Co., Ltd. (Wuhan, China)	Automotive business facilities	6,752	Jan. 2012	Aug. 2016