Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Sales	168,220	147,117	14.3	-
Operating income	11,312	9,136	23.8	-
Ordinary income	10,941	8,680	26.0	-
Net income	6,314	6,057	4.2	-
Automotive parts division
Sales	127,292	115,222	10.5	1)

Factors
1)
-In Japan, the production volume of commercial-vehicle parts for standard and compact trucks was severely impacted at the beginning of the fiscal year by the Great East Japan Earthquake, causing a steep drop in production. However, from the second quarter and after, when product demand recovered, the Company was fortunately able to continue manufacturing products at a solid pace. During the third and forth quarters demand for the Company's products grew even greater, thanks to the eco-car sales incentives programs that were launched.

-Sales of products destined for export were negatively affected by the Great East Japan Earthquake during the first quarter. However, from the second quarter and after, the demand for standard and compact trucks grew higher than it had been for the same reporting periods the previous year. As a result, production volume for the entire year stayed around the same level as it was the year before.

Acquisitions

-The Company will increase its capital in its consolidated subsidiary in China, PK Manufacturing (Suzhou) Co., Ltd., by 5.7 million USD in late June 2012. As a result, the capital of PK Manufacturing (Suzhou) will increase to 11.7 million USD, and PK Manufacturing (Suzhou) will become a specified subsidiary of Press Kogyo. The subsidiary manufactures and sells construction and agricultural machinery products and automotive parts. (From a press release on March 12, 2012)

Divestitures

-The Company announced on August 4 that it will transfer to UD Trucks portion of its equity in PK-UD Axle Co., its consolidated subsidiary in Zhejiang, China. When the company was established, Press Kogyo owned 55 percent of stocks, and UD Trucks 45 percent. The stock transfer will be finalized on August 5 for $545,000 (approximately 42.5 million yen), increasing the stake held by UD Trucks to 51 percent. The subsidiary was founded in November 2005 at the Xiaoshan Economic & Technological Development Zone in Hangzhou, Zhejiang Province to manufacture wheel axles for heavy-duty trucks and buses. It generated 11,465, 000 yuan in sales in the fiscal term ended December 2008, but the amount failed to reach the original target. The company has been staying dormant since January 2009. (From an article in the Nikkan Jidosha Shimbun on August 5, 2011)

Outlook for FY ending Mar. 2013

(in millions of JPY)

	FY ending Mar. 31, 2013 (Forecast)	FY ended Mar. 31, 2012 (Actual Results)	Year-on-year Fluctuation (%)
Sales	180,000	168,220	7.0
Operating income	11,500	11,312	1.7
Ordinary income	11,000	10,941	0.5
Net income	5,600	6,314	(11.3)

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

R&D Expenditures

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	249	185	198

R&D Activities

-The Company is focusing on developing its major products such as axles and frames based on a medium- and long-term prospective.
-The Company worked on reducing development and production lead-time, improving product quality, and developing elemental technologies for the next-generation products and production lines.
-The Company launched a new team consisting of the plant technology division, the product design division, and the production method development division to establish and enhance its proprietary technologies. The integrated development team has also been working on studies to introduce new production technologies that contribute to greenhouse gas mitigation and development of next generation products.
-The company established advanced testing and evaluation methods leveraging its superior designing and testing capabilities, and database for strength levels. It also developed more sophisticated finite element method (FEM) analysis technology. The Company has thereby enhanced its assessment technologies and reduced development lead-time, improving its capabilities to design and propose new technologies.
 
<Automotive parts division>
-Under the theme of offering environmentally responsive products, the Company worked on developing forming technologies for high strength materials and optimum product designs to achieve weight reduction. It has also worked on establishing crash analysis technologies to enhance the safety of its products.
-The Company is trying to respond to diversifying product specifications by combining common parts with other parts, without sticking to the conventional idea about how products should be designed. It is also developing elemental technology that can be used to reduce costs.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Automotive components	10,042	3,993	-
Construction machinery components	1,390	1,280	-
Others	2	2	-
Overall	11,435	5,275	7,420

-The Company focused its investment activities on building up its production operations, promoting labor savings, enhancing production efficiency, and improving the reliability of its products in order to respond to new program business for frames, axles, suspensions, and construction machinery cabs, which are its main products.

Investment Outside Japan

<Indonesia>
-The Company has decided to start production in Indonesia, aiming to start out with manufacture of cabins for construction vehicles in the fall of 2012. The company is going to invest over 1 billion yen in the new facility, which will have the capacity to produce several thousand cabins per year. The Company is now choosing the construction site for the new plant in Karawang in the suburbs of Jakarta. The plant is expected to add commercial vehicle axles to its product line in 2013 or later. (From an article in the Nikkan Jidosha Shimbun on May 19, 2011)

Planned Capital Investments (Automotive components)

(As of Mar. 31, 2012)

Name	Purpose	Planned amount of investment (in millions of JPY)	Start month	Planned completion
Utsunomiya Plant (Shimotsuke City, Tochigi Pref.)	Production equipment for axles	2,100	June, 2011	Feb. 2013