Financial Overview

(in million JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of change (%)	Factors
Overall
Sales	158,405	179,417	(11.7)	-Performance was significantly lower in all aspects year-on-year due to the Great East Japan Earthquake and the flooding in Thailand worsening constraints that had already been put on the supply chain.
Operating income	5,086	11,496	(55.8)
Ordinary income	5,149	11,135	(53.8)
Net income	2,493	6,106	(59.1)
Automotive components division
Sales	135,244	156,921	(13.8)	-

 <Japan>
-In line with the Company's tremendous efforts to successfully lower costs and set up economic measure during the fourth quarter of the fiscal year, it was able to win a greater number of orders for new business. However, the terrible impact on business caused by the Great East Japan Earthquake and the flooding in Thailand resulted in a temporary worsening of financial results due to the huge drop in orders. As a result, operating revenue was 80.88 billion yen, a 12.4% year-on-year decrease; and operating profit was 1.822 billion yen, a 40.7% decrease year-on-year.

<North America>
-In North America, the Company temporarily received fewer orders for new business from its customers who had been affected by the Great East Japan Earthquake. Its business situation also worsened temporarily because of the flooding in Thailand, which worsened the Company's performance. These factors, along with negative currency translation, caused operating revenue to drop year-on-year by 5.8%, or to 47.756 billion yen, and caused an operating loss of 823 million yen, in spite of a recovery in orders during the fourth quarter. (The region during the previous fiscal year recorded an operating profit of 431 million yen.)

<Asia>
-In addition to a huge drop in orders in the Asian Region because of production stoppages at its major customers who had been affected by the flooding in Thailand, the Company in November 2011 transferred the equity shares it owned in Yutaka Autoparts Pune Private Limited, in India, which thereby lowered the volume of revenue that the Indian company until then had contributed to the consolidated financial results. As a result, operating revenue was 15.094 billion yen, a 24.1% year-on-year decrease.  Operating profit was 1.652 million yen, a 46.2% decrease year-on-year.

<China>
-The operations in China received fewer orders for new business from customers who had been affected by the Great East Japan Earthquake. In addition, the country saw huge price rises in the costs of materials. Plus, the high evaluation of the yen caused negative currency translation when reporting local financial results in yen. In the end, operating revenue was 24.827 billion yen for the year, a 7% year-on-year decrease; and operating revenue was 2.31 billion yen, a 41.1% year-on-year decrease.

<Other Regions>
-Operating revenue in other regions was down 33.6% year-on-year, to 6.039 billion yen, because of fewer orders the regions won for new business and because of negative currency translation. Operating profit was 183 million yen, a 78.3% year-on-year decrease.

New Company

-The Company  announced that it will form a new wholly owned subsidiary in Guanajuato, Mexico to manufacture and sell exhaust systems and driveline components for vehicles. The new company, capitalized at 27 million USD (approximately 2 billion yen), will start operations in April 2014. (From a press release on December 27, 2011)

Restructuring

-The Company said it has signed a basic agreement to sell its all stake in a joint venture subsidiary in China, Chongqing Jinfeng Mechanical Co., Ltd. to its joint venture partner and chairman. The joint venture, which is now owned 60 percent by Yutaka Giken and 40 percent by the partner, manufactures and sells exhaust catalytic converters, motorcycle brake discs and forging flanges. (From a press release on September 7, 2011)

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

Outlook for FY ending Mar. 31, 2013

(in millions of JPY)

	FY ended Mar. 31, 2013 Forecast	FY ended Mar. 31, 2012 Result	Rate of Change (%)
Sales	170,000	158,405	7.3
Operating income	8,300	5,086	63.2
Ordinary income	8,200	5,149	59.3
Net income	4,000	2,493	60.4

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Group	2,387	2,330	2,201
Japan	2,292	2,228	2,138
North America	94	101

R&D Structure

-Tochigi Development Center, which consists of Development Sections No.1, No.2, No.3 and No.4 and the Production Technology Office, mainly promote R&D activities.

<Japan>
Exhaust parts
-The Development Section No. 1 and the Production Technology Office focused on further advancement of eco-friendly technologies, like improving the cleaning of exhaust gases, fuel-efficiency and reducing noise, etc. Developed production technology and carried out R&D on exhaust systems, which improved both its product competitiveness and productivity.

Powertrain parts
-The Development Section No. 2 and the Production Technology Office focused on R & D and production technology development in further efforts to reduce the size and weight of parts and improve fuel-efficiency, etc, which improved both its product competitiveness and productivity.

<North America>
Exhaust parts
-The R&D division of Cardington Yutaka Technologies Inc., a consolidated subsidiary of the Company, developed technologies to improve productivity in making high performance exhaust system by engineering advanced gas purification technology, fuel saving technology, and noise absorbing technology.

R&D Activities

<Japan>
Exhaust parts
-The Company completed development of an exhaust-gas catalyst converter for the "N-Box". Production of the converter is being carried out by the Company's Mie Manufacturing.
-For the Japan market, the Company developed a complete exhaust-gas system for the "CR-V", from an exhaust-gas catalyst converter up to a silencer. Production of these system products are being conducted at the Company's Arashiyama Manufacturing.

Powertrain parts
-The Company developed a torque converter for the "CR-V" and "Odyssey". The Company's Yutaka Manufacturing has started producing these converters.
-The torque converter with multi-plate lock-up clutch, which had been produced at Yutaka Manufacturing, has started to be produced at Alabama Cullman Yutaka Technologies LLC in the U.S.A. The converter being produced in the U.S.A. is being equipped on the Odyssey designed for sale in North America.

<North America>
Exhaust parts
-As a means of locally procuring exhaust system parts for vehicles specified for sale in North America, the Company's Cardington Yutaka Technologies Inc. in the U.S.A. began mass-producing such parts for the "CR-V" and "RDX". 

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Group	5,708	4,901	3,722

Japan
-The Company invested 1,953 million in Japan. Focus of its investment activities were set on introducing new equipment to deal with model changes and streamlining operations for cost reduction, especially at its main operations.

North America
-The Company invested 1,258 million yen in its North American operations, focusing on Cardington Yutaka Technologies Inc. to produce new products for remodeled vehicles.

Asia
-The Company invested 1,216 million yen at P. T. Yutaka Manufacturing Indonesia. and other facilities to deal with vehicle models changes and expand production capacity.
-The Company, Shizuoka Pref., Japan plans to increase production capacity of its automobile muffler in Indonesia by FY 2013. Since its customer, Honda Motor Co., Ltd., is expected to expand automobile production, it will build a new building at the site of P.T. Yutaka Manufacturing Indonesia, its local subsidiary, in order to enhance the automobile muffler production capacity. The company will finalize the plan during FY 2012 in an aim to start operations during FY 2013. In Asia, demands for both motorcycles and automobiles are growing and Japanese manufacturers have announced investment plans for production expansion one after another. In Indonesia, demands for automobiles are expanding steadily and it is expected that parts suppliers will increase investment there. (From an article in the Nikkan Jidosha Shimbun on March 1, 2012)

China
-The Company invested 1,128 million yen to deal with model changes and expand production capacity especially at Foshan Yutaka Auto Parts Co., Ltd.

Planned Capital Investments

(As of Mar. 31, 2012)

Name of company or subsidiary (Location)	Type of facility	Planned amount of investment (million JPY)	Start	Planned completion	Expected level of increase in capacity
Head Office YutakaPlant (Shizuoka Pref., Japan)	Manufacturing facilities for automobile parts etc., R&D facilities and other facilities	606	Jul. 2011	Mar. 2013	Slight increase
Mie Plant (Mie Pref., Japan)	Manufacturing facilities for automobile parts, etc.	661	Aug. 2011	Mar. 2013	Slight increase
Ranzan Plant (Saitama Pref., Japan)	Manufacturing facilities for automobile parts, etc.	665	Sep. 2011	Mar. 2013	Slight increase
Tochigi R&D Center (Tochigi Pref., Japan)	R&D facilities	495	Apr. 2012	Mar. 2013	Slight increase
Cardington Yutaka Technologies Inc. (Ohio, USA)	Manufacturing facilities for automobile parts, etc.	1,320	Apr. 2012	Mar. 2013	Slight increase