Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of change (%)	Factors
Overall
Sales	193,035	167,478	15.3	1)
Operating income	11,202	6,844	63.7
Ordinary income	11,457	7,527	52.2
Net income	6,433	3,896	65.1
Automotive components division
Sales of Exhaust System	117,048	99,891	17.2	-
Sales of Drive System	57,833	46,262	25.0

Factors
1) Sales
-Sales increased 15.3% year-on-year, operating income increased 52.2% year-on-year, and net profit increased 65.1% year-on-year, breaking all previous records in terms of profit, due to the following factors. The company expanded its product lineup for compact-car parts in Japan. It won a greater number of orders overseas. It initiated measures to strengthen its production operations and reduce fixed costs.

<Japan>
-Even though sales in Japan were 6.1% lower year-on-year due to the Company's winning fewer orders and the increased lineup of compact cars, operating income increased 36.3% due to favorable currency translation because of the weak yen and the Company's continued measures to reduce costs.

<North America>
-Sales increased 26.3% year-on-year due to increased customer orders and favorable currency translation because of the weak yen, in spite of the Company's incurring start-up costs at Yutaka Technologies De Mexico S.A. De C.V.

<Asia>
-Sales increased 25.9% year-on-year, thanks to the recovery from the flooding in Thailand, greater orders for motorcycle parts in Indonesia, and favorable currency translation because of the weak yen.

<China>
-Sales increased 49.9% year-on-year, thanks to a recovery from the sluggish sales that had resulted from the worsening political relations between Japan and China, and favorable currency translation because of the weak yen.

<Other Regions>
-Sales fell 1.4% year-on-year due to fewer orders in the U.K., even though the Company received a greater number of orders in Brazil.

Boosting production volume of torque converter

<China>
-The Company will reinforce its torque converter production capacity in China. A new production line will be added at its production subsidiary in Foshan, Guangdong Province in order to boost its annual production capacity by 50% from the 2013 level to 760,000 units in 2015. The supplier's customer, Honda Motor Co., Ltd., is currently expanding production in China and other countries. The Company is trying to catching up with the move by reinforcing its local supply volume in China, North America, and Southeast Asia. Besides China, the company began producing torque converters in Mexico and plans to increase its production capacity in Thailand. (From an article in the Nikkan Jidosha Shimbun on February 25, 2014)

<Thailand>
-The Company will boost its production volume of torque converters in Thailand to 598,000 units by 2016, up 63.3 percent from the 2012 level. Through this expansion, the company intends to meet growing demand from Honda Motor, which is setting up its second vehicle assembly plant in the country to boost production to 400,000 units, up 40 percent from the current level. In 2013, the Company will maintain the production level of 360,000 torque converters, the same as a year earlier. As demand from Honda is projected to increase in Southeast Asia, production volume of torque converters is expected to exceed 400,000 units in 2014 and to reach 500,000 units in 2015, up 20 percent year-on-year. The Company's second Thai plant is scheduled to become operational by the end of this year, which will significantly improve the company's exhaust parts production capacity. In the meanwhile, the company is going to make full use of the existing facility, which is capable of producing up to 400,000 torque converters a year. (From an article in the Nikkan Jidosha Shimbun on Jun 17, 2013)

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

Outlook for FY ending Mar. 31, 2015

(in millions of JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ended Mar. 31, 2014 (Actual Results)	Rate of Change (%)
Sales	205,000	193,035	6.2
Operating income	11,000	11,202	1.8
Ordinary income	11,000	11,457	4.0
Net income	6,200	6,433	3.6

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Japan	2,815	2,745	2,292
North America	125	104	94
Total	2,940	2,850	2,387

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 system
-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.

Drive system
-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 system
-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 system
-Completed development of exhaust-catalyst converters and noise-reduction devices for the Honda Fit, and started mass-producing them at its plants in Mie and Arashiyama in Japan.

Drive system
-Developed a low-cost torque converter for 1.5L CVTs equipped on the Honda Fit, launching mass-production of them at Yutaka Manufacturing.

<North America>
Exhaust system
-Completed development of a silencer for the Acura MDX, launching production at its subsidiary in North America, Alabama Cullman Yutaka Technologies LLC.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Group	14,211	8,403	5,708

<Japan>
-Investment of JPY 2,418 million to install production facilities to respond to new models, and streamline operations to reduce costs.

<North America>
-Investment of JPY 5,111 million mainly at Cardington Yutaka Technologies Inc. and Yutaka Technologies De Mexico S.A. De C.V. to manufacture new types of automobile parts and streamline operations.

<Asia>
-In response to the growing Asian market, investment of JPY 4,079 mainly at YS Tech (Thailand) Co., Ltd. and P.T. Yutaka Manufacturing Indonesia to increase production capacity and respond to new models.

<China>
-Investment of JPY 2,410 mainly in Foshan Fengfu Autoparts Co.,Ltd. to manufacture automotive parts for new models and increase production capacity.

Planned Capital Investments

(As of Mar. 31, 2014)

Name of company or subsidiary (Location)	Type of facility	Planned amount of investment (million JPY)	Start	Planned completion
Head Office YutakaPlant (Shizuoka Pref., Japan)	Manufacturing facilities for automobile parts etc., R&D facilities and other facilities	1,397	Dec. 2013	Mar. 2015
Mie Plant (Mie Pref., Japan)	Manufacturing facilities for automobile parts, etc.	99	Nov. 2013	Mar. 2015
Ranzan Plant (Saitama Pref., Japan)	Manufacturing facilities for automobile parts, etc.	607	Sep. 2013	Mar. 2015
Tochigi R&D Center (Tochigi Pref., Japan)	R&D facilities	281	Apr. 2014	Mar. 2015
Cardington Yutaka Technologies Inc. (Ohio, USA)	Manufacturing facilities for automobile parts, etc.	1,003	Apr. 2014	Mar. 2015
Yutaka Technologies De Mexico S.A. De C.V. (Guanajuato, Mexico)	Manufacturing facilities for automobile parts	1,754	Jun. 2014	Dec. 2014