Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	25,707	28,343	(9.3)	-
Operating income	1,588	1,879	(15.5)	-
Ordinary income	1,650	1,917	(13.9)	-
Net income	1,014	966	5.0	-
Automotive Components
Sales	18,200	17,364	4.8	-Japan: Sales increased due to robust demand mainly for economy and hybrid vehicles because of eco-car sales incentives. -Outside Japan: Sales increased due to robust sales of economy cars in emerging-market countries mainly in Asia, and due to strong sales of multi-purpose vehicles designed for resource-rich countries.

New Factory

-The Company's subsidiary Metaltex established its Kyushu Plant in Fukuoka Prefecture. The plant began processing finished automotive transmission parts under a seamless production system.

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

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ending Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Sales	26,500	25,707	3.1
Operating income	1,700	1,588	7.0
Ordinary income	1,710	1,650	3.6
Net income	1,030	1,014	1.6

R&D Activities

-The Company continued developing its technology in the area of hollow forging in order to respond to the demand for lighter weight products that improve fuel consumption.

-The Company has worked on advancing digital engineering by conducting R&D activities that will lead to achieving a higher level of precision to strength analysis and lengthen the product-life of dies.  

-Based on a new production method, the Company successfully reduced six processes that were needed after the forging process to complete the production of shafts. This was made possible by combining hot-forming and cold-forming processes to make a single-unit shaft, which is a part that conventionally was built by welding two parts together. As a result, the Company achieved a net-shape ratio of 15%, which is the percentage of finished product to the mass of structural material (steel) used in forging. In addition, this new method achieved a cost-reduction of 20%.

Technology Licensing-out Agreement

(As of Mar. 31, 2013)

Partners	Country	Technology	The term of a contract
PT. Menara Terus Makmur	Indonesia	Manufacturing technology for forged products	Oct. 1996 - (Automatic renewal)

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	1,321	1,287	361

-The Company invested in facilities and equipment mainly for the machining line handling transmission parts at Metaltex Corporation's Kyushu Plant.

Planned Capital Investments

(As of Mar. 31, 2013)

Company	Location	Facilities & Activities	Total investment (in millions of yen)	Start date	Completion	Production capacity increase on completion
Metaltex Corporation Kyushu Plant	Fukuoka Pref., Japan	Facility for machining automotive parts	801	Nov. 2012	Nov. 2013	-