Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	329,292	263,119	25.1	-Sales and operating income increased year-on-year. The Company worked on developing new products that best meet the needs of the global market, stepped up its marketing efforts to win more contracts, while expanding production capacity. It also boosted productivity by dramatically streamlining both its production processes and administrative operations.
Operating income	36,864	27,475	34.2
Ordinary income	40,097	30,148	33.0	-
Net income	24,345	17,760	37.1	-
Automotive products
Sales	244,030	185,451	31.6	-Sales and operating income increased year-on-year. Its performance was supported by growth in vehicle sales in the Americas and China, and a rise in motorcycles sales in Asia.
Operating income	26,889	21,824	23.2
Electronic Components
Sales	29,500	25,620	15.1	-Sales and operating income increased year-on-year thanks to a rise in sales of LED and LCD products for automobiles.
Operating income	5,144	2,910	76.8
Applied Electronic Products
Sales	55,291	51,908	6.5	-Sales and operating income increased year-on-year due to growth in sales of in-vehicle control panels.
Operating income	4,850	4,152	16.8

New Company

-In August 2013, the Company said it has formed a new company in Shenzhen, China to sell electronic equipment in the Chinese market. The establishment will enable the Group to strengthen its sales functions to respond to the needs of customers more quickly and efficiently. The sales affiliate will also have integrated procurement functions to supply materials to other group companies as well. The new company was established in July with a capital of CNY 2 million (JPY 32 million). (From an article in the Nikkan Jidosha Shimbun on August 27, 2013)

The Fifth Medium-term Three Year Business Plan (April 2014 through March 2017)

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 “company-wide innovation” that is the basis of creating new products and businesses.

Outlook for FY ending Mar 31, 2015

（in millions of JPY）

	FY ending Mar 31, 2015 (Estimate)	FY ended Mar. 31, 2014 (Result)	Rate of Change (%)
Sales	345,000	329,292	4.8
Operating income	42,000	36,864	13.9
Ordinary income	45,000	40,097	12.2
Net income	27,500	24,345	13.0

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	5,346	5,479	5,423
Automotive products	2,367	1,865	1,674

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

Technology Licensing-in Agreement

(As of Mar. 31, 2014)

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, 2014)

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, 2014 - March 31, 2017
Lumax Industries Ltd. (India)	Technology related to automotive lamps	April 1, 2014 - March 31, 2015

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	27,652	31,164	23,358
Automotive products	19,054	23,767	17,565

Investment in Japan

-In April 2014, the Company announced that it will move Stanley Miyagi Works Co., Ltd., its wholly-owned subsidiary, to a new larger plant within the same city of Tome, Miyagi Prefecture. Groundbreaking for the new plant will take place in September 2014, and operations are scheduled to start in September 2015. The Company will invest approximately JPY 3.8 billion in the project. Stanley Miyagi Works currently produces architectural LED lighting products and optical lens for computers. Through this expansion, it will start producing automotive aftermarket parts, and will plan to manufacture automotive electric equipment as well in the future. (From an article in the Nikkan Jidosha Shimbun on April 12, 2014)

Plans for New Production Facilities

(As of Mar. 31, 2014)

Name (Location)	Type of facility	Total amount (in millions of  JPY)	Start	Completion
Stanley Miyagi Works Co., Ltd. (Miyagi Pref., Japan)	Automotive business facilities, Applied electronic products business facilities	3,830	Sep. 2014	Aug. 2015
Wuhan Stanley Electric Co., Ltd. (Wuhan, China)	Automotive business facilities	7,297	Jan. 2012	Aug. 2016