Financial Overview

(in million JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of change (%)	Factors
Overall
Sales	240,534	221,413	8.6	-
Operating income	10,554	7,006	50.6	-
Ordinary income	7,304	5,241	39.4	-
Current net income	3,918	2,072	89.1	-
Automotive/Industrial component business
Sales	154,031	139,011	10.8	-The Company's business in automotive wheels, especially for trucks, recovered from the middle of the fiscal year due to increased demand that resulted from the improvement in production volumes in Japan.
Operating income	10,392	7,666	35.6	-Operating profit increased year-on-year as a result of the Company's thorough and successful cost-cutting initiatives.

Contracts

-The Company will bring to the market a new steel wheel for passenger vehicles. The advanced steel wheel achieves a high level of design flexibility comparable to that of aluminum wheels. The company has already won a new program to supply the steel wheel for some trim levels of the all-new SUV model coming to the market as early as this year. In addition to achieving improved design flexibility, the new steel wheel is cost efficient. Moreover, some of the steel wheels in particular sizes can be made lighter than aluminum wheels of the same sizes. The new business is expected to open up opportunities for the company to accelerate marketing activities on a global basis, as demand for low-cost and fuel-efficient products are further growing. (From an article in the Nikkan Jidosha Shimbun on February 23, 2012)

Recent Developments Outside Japan

<China>
-The Company is increasing production capacity of steel wheels for passenger cars in China within the next three years one and half times more than the present level. The Company is set to boost capacity through a massive improvement in productivity without resorting to large scale investments, including in installation of new production equipment. This capacity expansion, a measure in response to expanding automobile production in China by Japanese, U.S. and European automakers will be addressed by making the most of its existing equipment. At its Japanese domestic plants for production of wheels, the Company is now working on streamlining production equipment and workforce with the aim of improving efficiency by 30-40 percent. It plans to enhance efficiency in production by realigning production lines and speeding up each process at its Chinese subsidiary as well.(From an article in the Nikkan Jidosha Shimbun on February 6, 2012)

New Company

-The Company announced on September 13 that Topy Fasteners, Ltd., its subsidiary in Matsumoto City, Nagano Prefecture, will establish a production company in the suburbs of Hanoi, Vietnam in October to manufacture industrial fasteners and stamped products. New operations are scheduled to start in November 2012. In line with the establishment, the Group will transfer production of motorcycle components from its Thai subsidiary to Vietnam, allowing the Thai facility to focus on automotive components. The new company in Vietnam will be called Topy Fasteners Vietnam Co., Ltd. (From an article in the Nikkan Jidosha Shimbun on September 14, 2011)

Outlook for FY ending Mar. 31, 2013

(in billions JPY)

	FY ending Mar. 31, 2013 (Forecast)	FY ended Mar. 31, 2012 (Actual Results)	Rate of Change (%)
Overall
Sales	253.0	240.5	5.2
Operating income	11.5	10.6	8.5
Ordinary income	10.5	7.3	43.8
Current net income	5.7	3.9	46.2
Automotive and Industrial Machinery Parts
Sales	162.8	154.0	5.7
Operating income	10.9	10.4	4.8

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

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	1,271	1,245	1,288
Automotive& Industrial Machinery Components	541	557	747

Automotive & Industrial Machinery Components
-The Company conducted research on solutions that reduce weight, improve quality, cut costs, and reduce development lead time. It also did research and development on new products.

-The Company achieved favorable results for its mainstay products, namely automotive steel and aluminum wheels, in terms of improving the accuracy of technology to conduct analysis and evaluations, developing and mass-producing new products, cutting costs, and improving the quality of existing products.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	8,982	7,170	7,659
Automotive& Industrial Machinery Components	5,893	4,559	4,520

Investment in Japan

-The Company announced on March 27 that it will install the state-of-the-art steelmaking equipment at its Toyohashi Factory in Aichi Prefecture. The Company is aiming to improve its competitive edge in cost by replacing the aging equipment and promoting energy conservation, as well as boosting productivity. The new equipment is scheduled to be introduced to the facility starting in March next year and commissioned in April 2015. Expenses for acquiring new assets, which include electric furnaces, continuous cast equipment and peripherals are estimated at around 28 billion yen. (From an article in the Nikkan Jidosha Shimbun on March 29, 2012)