Financial Overview

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of change (%)	Factors
Overall
Sales	167,478	158,405	5.7	1)
Operating income	6,844	5,086	34.6
Ordinary income	7,527	5,149	46.2
Net income	3,896	2,493	56.3
Automotive components division
Sales	147,912	135,244	9.4	-

1)
-Sales and profit increased year-on-year, with the Company seeing a recovery in new program business agreements since the Great East Japan Earthquake and the flooding in Thailand. In addition initiatives that strengthened its production organization and reduced fixed costs also contributed to the improved financial results. However, there were negative factors impacting business. These included a decrease in business won in China due to stagnant sales resulting from the tense relations between Japan and China, and an increase in the content ratio of parts for compact cars in Japan.

 <Japan>
-Operating revenue decreased 6.9% year-on-year and operating profit decreased 4.0% year-on-year. This negative performance was the result of an increase in the content ratio of parts for compact cars in Japan and a temporary slump in new business won in China due to stagnant sales resulting from the tense relations between Japan and China. This was in spite of several positive factors that contributed to financial performance. These included a recovery in new program business agreements since the Great East Japan Earthquake and the flooding in Thailand, favorable currency translation in the fourth quarter because of the lower valuation of the yen, and effective cost-cutting measures.

<North America>
-Business performance in North America improved year-on-year, with operating revenue increasing 35.7% and operating profit rising to 567 million yen. (In the previous fiscal year, the region posted an operating loss of 823 million yen.) Contributing to the improved results were the significant recovery in new program business won from customers and the favorable currency translation resulting from the lower valuation of the yen.

<Asia>
-Operating revenue increased 19.6% year-on-year and operating profit increased 15.8% due to an influx of new business won from customers after business in the area recovered from last year's flooding.

<China>
-Operating revenue fell 10.9% year-on-year and operating profit fell 5.0% year-on-year down because of the sharp drop in sales of Japanese brand vehicles resulting from the tense situation between Japan and China. However, the Company did experience an increase in new orders right after the economy recovered from the Great East Japan Earthquake.

<Other Regions>
-Operating revenue increased 30.7% year-on-year and operating profit increased 151.4% year-on-year because of the greater number of new orders won from customers and favorable currency translation.

New Company

-The Company announced that it has established its subsidiary, Yutaka Technologies de Mexico S.A. de C.V., in Guanajuato, Mexico. The company already announced its plan to form its Mexican subsidiary in December 2011. The new subsidiary, which will begin its operations in January 2014, will manufacture and sell exhaust systems and driveline components for automobiles. (From a press release on April 10, 2012)

Shifting Production to Outside Japan

Boosting Production Volume in North America
-The Company is boosting production volume of torque converters and exhaust systems in North America by 40 to 80 percent in 2016 from the level in 2012. This dramatic raise will be made possible by an increase in production at the company's plant in Mexico, which is slated to go into operation in 2014, as localized production of components advances in place of imports from Japan. Sales in North America are projected to exceed those in Japan for the first time in this fiscal year ending March 2013. Yutaka Giken is aiming to improve profitability in North America by optimizing production operations and increasing production volume at the Mexican facility. (From an article in the Nikkan Jidosha Shimbun on Dec. 7, 2012)

Increasing Local Procurement
-The Company is going to increase the percentage of local sourcing at its major overseas plants. By 2013, the local content ratio of its drivetrain products such as torque converters and exhaust systems made at these facilities will be raised to 90 percent. Components that have been shipped from Japan to the company's offshore plants will be increasingly switched to those made locally or in other low-cost countries. In China, where the company currently procures about 70 percent of components locally, Yutaka is expecting to heighten the percentage to nearly 100 percent, while starting to supply such components to its production bases in North America and other regions. Given political risks, however, the company is intending to position its Thai facility as a substitute for the China plant to maintain cost advantages. (From an article in the Nikkan Jidosha Shimbun on Oct. 25, 2012)

Restructuring

-The Company announced that it will dissolve its U.S.-based subsidiary South Carolina Yutaka Technologies Inc. Yutaka Giken has decided to end the subsidiary's operations of motorcycle parts business and to integrate its automotive parts business into two other consolidated-subsidiaries, based in the U.S. The subsidiary is expected to stop its production activities as of the end of June 2012. (From a press release on April 10, 2012)

>>>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 ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Sales	181,000	167,478	8.1
Operating income	9,000	6,844	31.5
Ordinary income	8,700	7,527	15.6
Net income	4,000	3,896	2.7

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Japan	2,745	2,292	2,228
North America	104	94	101
Total	2,850	2,387	2,330

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 No. 4 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 commercialized a new exhaust catalytic convertor for the Honda Accord. The convertor is being manufactured at Cardington Yutaka Technologies Inc.

Powertrain parts

-The Company developed a torque convertor designed for new-types of CVTs. Cardington Yutaka Technologies Inc. launched commercial production of the convertor, which is being equipped on the Honda Accord sold in North America.

-The Company developed a flywheel for full or strong hybrid vehicles, producing it at Yutaka Manufacturing.

<North America>
Exhaust parts
-Upon the completion of a silencer for the Acura MDX, Alabama Cullman Yutaka Technologies LLC, the Company's consolidated subsidiary in North America, launched commercial production of it from 2013.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Group	8,403	5,708	4,901

<Japan>
-The Company invested 3,413 million in Japan. Focus of its investment activities were set on introducing new equipment and streamlining operations for cost reduction, especially at its main operations.

<North America>
-The Company invested 2,728 million yen in its North American operations, focusing on Cardington Yutaka Technologies Inc. to produce new products.

<Asia>
-The Company invested 1,453 million yen at YS Tech (Thailand) Co., Ltd. and  P.T. Yutaka Manufacturing Indonesia. and other facilities to deal with vehicle models changes and expand production capacity.

Southeast Asia
-The Company is boosting its production capacity of exhaust parts in Southeast Asia by 60 percent to 500,000 units a year during fiscal year 2013. This enhancement is to deal with increasing orders from Honda, which is expanding its production capacity in the region. In Thailand, Yutaka Giken will construct a new plant to increase its annual production capacity to 360,000 units by the end of this year. The company has already acquired the new factory site, three times as large as the existing site, with considering transferring all of its operations of the existing facility to the new plant. Yutaka Giken will also expand its existing plant in Indonesia to develop production capacity of 130,000 units by the beginning of 2014. (From an article in the Nikkan Jidosha Shimbun on Mar. 1, 2013)

China
-The Company invested 657 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, 2013)

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	1,009	Jul. 2012	Mar. 2014	Slight increase
Mie Plant (Mie Pref., Japan)	Manufacturing facilities for automobile parts, etc.	723	Nov. 2012	Mar. 2014	Slight increase
Ranzan Plant (Saitama Pref., Japan)	Manufacturing facilities for automobile parts, etc.	1,033	Nov. 2012	Mar. 2014	Slight increase
Tochigi R&D Center (Tochigi Pref., Japan)	R&D facilities	850	Apr. 2013	Mar. 2014	Slight increase
Cardington Yutaka Technologies Inc. (Ohio, USA)	Manufacturing facilities for automobile parts, etc.	2,102	Apr. 2013	Mar. 2014	Slight increase
Yutaka Technologies De Mexico S.A. De C.V. (Guanajuato, Mexico)	Land, plant building、 Manufacturing facilities for automobile parts	2,889	Apr. 2012	Dec. 2013	-