Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factor
Overall
Sales	82,704	79,762	3.7	-Demand recovered, after the Company waited for market improvements in Japan and Asia.
Operating income	2,572	2,678	(4.0)	-Although the Company worked at cost-reduction activities such as eliminating sundry expenses and raising the efficiency of production operations, the Company’s results were nevertheless lower year-on-year because of the high evaluation of the yen, and rising wages in emerging-market countries.
Ordinary income	2,051	2,088	(1.8)	-
Net income	1,602	939	70.6	-
Automotive Components Division
Sales	58,780	56,942	3.2	-The Company waited for the recovery after the immediate drop in demand right after the Great East Japan Earthquake and hoped that that demand, which was supposed to be triggered by eco-car buying programs designed to stimulate sales, would be enough to prevent the Company from posting lower performance year-on-year. Through the year, the Company faced worsening market conditions due to the high evaluation of the yen, and other factors.
Operating income	2,390	2,336	2.3

Joint Ventures

-In April 2012, Pierburg Pump Technology GmbH, a subsidiary of the KSPG Group, has set up together with the Company another joint venture in Shanghai, China. The new company, Pierburg Mikuni Pump Technology (Shanghai) Corp., will be a 100-percent subsidiary of the joint venture Pierburg Mikuni Pump Technology Corporation, which was established in 2010. Pierburg Pump Technology GmbH holds an indirect 51-percent stake in the new venture, which will be capitalized at 14 million Chinese yuan, approximately 168 million yen. Through a jointly held company, the partners intend to develop, produce and market electric water pumps and variable oil pumps for the Chinese market. The market launch of the joint venture is scheduled for April 2012. (From a press release on April 2, 2012)

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	3,373	3,149	3,160
Automotive products	1,151	912	881

Automotive Products
-The Company is promoting R&D of control technology, actuator technology, sensing technology and material technology for computerized control fuel injection systems and engine components.
-The Company is making technological developments for CO2 reduction, as well as for reducing fuel consumption and vehicle electrification.

R&D Activities

-Development of air intake module for four-wheel vehicles and development of a new resin intake manifold.
-Development of a new electronically-controlled throttle body for four-wheel vehicles.
-Development of axle pedal modules .
-Development of continuously variable transmission systems.
-Development of variable valve-timing transmission (VVT), and new generation VVT.
-Development of new engine exhaust gas control valve.
-Development of an electric vacuum pumps for electric vehicles.
-Development of a new-type of oil pump.
-Development of new coolant circulation pumps and coolant controlling valves.
-Development of flow control valves and hydrogen sensors for fuel cell vehicles.
-Development of new pressure sensors and new position sensors.
-Development of new type of fuel valve for common-rail fuel-injection systems designed for diesel-engines.

Investment Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	4,991	3,290	3,787
Automotive products	4,446	2,888	3,231

-The automotive division focused its investment activities on building new plant facilities, developing new products, strengthening basic studies, launching production of new models, and streamlining operations.

New Equipment Installment (Automotive segment)

(As of Mar. 31, 2012)

Company/Plant	Location	Estimated amount of investment (in millions of JPY)	Period of the project
			From	To
Odawara Plant	Kanagawa Pref., Japan	220	Apr. 2012	Mar. 2013
Morioka Plant	Iwate Pref., Japan	530	Apr. 2012	Mar. 2013
Kikugawa Plant	Shizuoka Pref., Japan	622	Apr. 2012	Mar. 2013
Mikuni (Thailand) Co., Ltd.	Ayutthaya, Thailand	1,109	Jan. 2012	Dec. 2012
PT. Mikuni Indonesia	Bekasi, Indonesia	1,054	Jan. 2012	Dec. 2012
Mikuni India Private Limited	Rajasthan,India	464	Apr. 2012	Mar. 2013
Mikuni (Shanghai) Co., Ltd.	Shanghai, China	258	Jan. 2012	Dec. 2012
Mikuni Partec Co., Ltd.	Shizuoka Pref., Japan	215	Apr. 2012	Mar. 2013