Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factor
Overall
Sales	81,942	82,704	(0.9)	-Sales were lower because the European and Indian markets were stagnant.   -For the majority of the fiscal year, the yen remained strong against other currencies.
Operating income	2,262	2,689	(15.9)	-Operating income suffered because demand in Europe for motorcycle parts was stagnant. -The Company incurred costs because of irregular operations and the arrangements it made to find substitute production operations so as to recover from the damage caused by the flooding in Thailand. -Wages rose in developing countries.
Ordinary income	2,131	2,051	3.9	-
Net income	1,408	1,602	(12.1)	-
Automotive Components Division
Sales	57,287	58,780	(2.5)	-Even though the Company’s revenue rose because of new product launches for eco-cars in the ASEAN market, revenue and income in Japan suffered as a result of changes made to its product range.
Operating income	2,100	2,484	(15.5)

Joint Ventures

Automotive heaters
-In April 2013, the Company established a 50-50 joint-venture Eberspaecher Mikuni Climate Control Systems Corporation with the German company Eberspaecher, a manufacturer of climate-control systems, at its Odawara Plant. The new company, which began commercial operations in May, is mainly producing automotive heaters.

Electric water pumps/adjustable-flow oil pumps
-In April 2012, the Company formed a joint venture in Shangahi, China, with Pierburg Pump Technology. The new company, Pierburg Mikuni Pump Technology (Shanghai) Corp., is a wholly owned subsidiary of Pierburg Mikuni Pump Technology Corporation, another joint-venture company that the two partners established in 2010. This latest joint-venture is capitalized at 14 million yuan (approximately 168 million yen) and develops, manufactures, and sells electric water pumps and adjustable-flow oil pumps for the Chinese market.

Outlook for FY ending Mar. 2014

(in millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Sales	89,000	81,942	8.6
Operating income	3,500	2,262	54.7
Ordinary income	3,000	2,131	40.8
Net income	1,800	1,408	27.8

>>>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	1,448	1,267	1,025
-Automotive products	1,317	1,151	912

R&D Facilities

-The Company's Odawara Plant is in charge of conducting overall R&D activities and developing new business sectors.

R&D Activities

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.

-As of the end of March 2013, the Company was conducting the following 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.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	5,914	4,991	3,290
-Automotive products	5,358	4,446	2,888

-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.

Investment Outside Japan

-On October 2013, the Company announced that its U.S. subsidiary, Mikuni American Corporation, will make an additional investment of approximately USD 4.2 million (approximately JPY 420 million) in its Mexican subsidiary, Mikuni Mexicana S.A. de C.V. The Company is going to appropriate the fund in casting and processing facilities including the building in order to increase its manufacturing capability. This is in line with the Company's regional strategy which plans to propulsive its automotive related business in the Americas. (From a press release on Oct. 28, 2013)

Planned Capital Investments (Automotive segment)

(As of Mar. 31, 2013)

Company/Plant	Location	Estimated amount of investment (in millions of JPY)	Period of the project
			From	To
Odawara Plant	Kanagawa Pref., Japan	480	Apr. 2013	Mar. 2014
Morioka Plant	Iwate Pref., Japan	455	Apr. 2013	Mar. 2014
Kikugawa Plant	Shizuoka Pref., Japan	298	Apr. 2013	Mar. 2014
Mikuni (Thailand) Co., Ltd.	Ayutthaya, Thailand	688	Jan. 2013	Dec. 2013
PT. Mikuni Indonesia	Bekasi, Indonesia	647	Jan. 2013	Dec. 2013
Mikuni India Private Limited	Rajasthan,India	981	Apr. 2013	Mar. 2014
Mikuni (Shanghai) Co., Ltd.	Shanghai, China	547	Jan. 2013	Dec. 2013
Mikuni Partec Co., Ltd.	Shizuoka Pref., Japan	250	Apr. 2013	Mar. 2014