Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	55,581	55,339	0.4	-
Operating income	5,220	5,695	(8.3)	-
Ordinary income	5,992	5,648	6.1	-
Net income	3,735	3,294	13.4	-
Domestic Belt Division
Sales	25,692	26,474	(3.0)	-
Operating income	5,991	6,618	(9.5)	-
Overseas Belt Division
Sales	20,636	19,843	4.0	-Asia: Strengthening both the production and sales structures needed to respond to the growth in demand in emerging-market countries improved performance year-on-year. -U.S.A.: Sales of belts to Japanese OEM transplants in the U.S.A. were about the same level as they were the previous fiscal year. -Europe: Sales decreased year-on-year due to lower consumption in the region caused by the economic recession.
Operating income	784	1,232	(36.4)	-

Recent Developments Outside Japan

Strengthening the European Operating Structure
-The Company is reorganizing the sales structure at its automotive belt business in Europe as fast as it can. As a result, the Company already consolidated the Dutch sales office into its sales office in Germany, increasing the number of local staff and strengthening the organization. In addition, the Company is already underway with making more aggressive product presentations to German OEMs, Renault, and Nissan affiliates, aiming to increase its content ratio in vehicles built in Europe, such as cars designed to be marketed globally. The Company will enhance its supply structure, coordinating with production plants in Poland and India in order to respond to local demand generated by heightened sales activities. The Indian plant, which is positioned to supply products within India and neighboring countries, will also produce products for the European market, enabling the Company to expand its supply network.

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	58,000	55,581	4.4
Operating income	4,700	5,220	(10.0)
Ordinary income	4,300	5,992	28.2
Net income	2,900	3,735	(22.4)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	2,088	2,092	2,070
-Domestic Belt Business	1,224	1,253	1,215
-Overseas Belt Business

R&D Structure

-R&D is conducted through cooperation among the R&D Department, engineering departments of other divisions, as well as development departments in subsidiaries.
-R&D is conducted also through closely cooperating with universities and research institutes and through jointly developing products with other companies, especially on advanced technologies.
-R&D activities for both the domestic and overseas belt businesses are being conducted mainly at the Company itself and at Mitsuboshi Belting Giken Co., Ltd.

R&D Activities

Domestic Belt Business
-In FY ended Mar. 2012, the Company succeeded in developing the following products:

• Energy-saving V belts
• Auto-tensioners
• Low-friction ribbed belts
• Timing belts for ultra high-loads

Product Development

Low-energy V Belt
-The Company said that it has added the "Premium" belt with improved energy efficiency to its "e-Power" V belt series for use in generators and air conditioning equipment, and put the new product onto the market. The "e-Power Premium" belt, the surface of which is wrapped with a special cover, is capable of saving a high amount of energy and also achieving a high level of quietness when operated under repeated start-and-stop usage. The new belt, which has special notches inside, has reduced bending loss. In addition, compound of high hardness chloroprene rubber helps to improve conveyance performance by curbing deformation at high load. The Company expects the product will be applicable to wider areas for its high energy saving benefit and quietness. (From an article in the Nikkan Jidosha Shimbun on April 4, 2012)

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	2,203	1,654	1,591
-Domestic Belt Business	460	625	935
-Overseas Belt Business	1,521	894	473

Domestic Belt Business
-Invested 64 million yen in facilities and equipment for testing and R&D at its Ayabe operations.

Oversees Belt Business
-The majority of the capital investments that the Company made was done outside Japan in equipment and facilities producing belts.

Planned Capital Investments

(As of Mar. 31, 2013)

Company/ Facility (Location)	Business Segment	Objective or equipment to be installed	Planned amount of investment (in million JPY)	Start	Planned completion
Shikoku Plant (Kagawa Pref., Japan)	Domestic Belts	Upgrading belt production equipment	84	Mar. 2012	Nov. 2013
Nagoya Plant (Aichi Pref., Japan)	Domestic Belts	Upgrading belt production equipment	49	Apr. 2013	Sep. 2013
Mitsuboshi Overseas Headquarters Private Limited (Singapore)	Overseas Belt	Upgrading belt production equipment	170	Jun. 2012	May 2013
	Overseas Belt	Upgrading belt production equipment	1,830	Oct. 2012	Dec. 2013