Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	92,044	76,100	21.0	1)
Operating income	3,625	3,277	10.6	-
Ordinary income	3,339	2,853	17.0	-
Net income	1,629	856	90.3	-

Factors
1)
-Sales of tubes used in automobiles, transport equipment, and machinery, which are the Company's core products; and plastic products, increased year-on-year because of the continuing recovery in new-vehicle production levels at OEMs.

-Sales of every product item increased year on year, such as automotive tubes (for brake and fuel lines); braised parts for engine systems (for fuel-injection, water-cooling-circulation, and oil-cooling systems); plastic parts (for quick connectors, plastic tubes, etc.), and vehicle safety products (for seatbelts).

Overview by Region

<Japan>
-Operating revenue decreased 2.3% year-on-year to 41.013 billion yen because of lower sales of products destined for sale outside of Japan. This was in spite of sales increases that resulted from eco-car sales incentives and from the rise in demand for new vehicles that was triggered by the recovery that occurred in vehicle production, which had fallen the previous year as a result of the Great East Japan Earthquake. Operating profit increased 17.9% year-on-year to 3.032 million yen.

<North and South America>
-Operating revenue rose 65.8% year-on-year, to 27.921 billion yen, thanks to higher levels of new-vehicle production and increased new orders for products. The region posted an operating loss of 139 million yen because of expenses incurred for launching the production of products in line with new orders won. (The region had an operating profit of 198 million yen the previous fiscal year.)

<China>
-Operating revenue increased 22.1% year-on-year to 6.496 billion yen, even though it was negatively impacted by OEMs that adjusted their production volumes downward. The region posted an operating loss of 75 million yen because of higher expenses coupled with fewer product orders. In the previous fiscal year, the region reported an operating profit of 271 million yen.

<Asia>
-As a result of the growing automotive market in Southeast Asia, the region reported significant increases in higher operating revenue and profit. Operating revenue increased 42.1% to 12.115 million yen and operating profit increased 91.3% year-on-year to 994 million yen.

<Europe>
-Operating revenue increased 30.5% year-on-year to 4.499 million yen due to increased product orders from OEMs in the U.K. and other countries. The region recorded an operating profit of 244 million yen year-on-year due to effective cost reductions that were achieved by streamlining operations. In the last fiscal year, the regions reported an operating loss of 51million yen.

Russian Operations

- The Company announced that it has set up a new wholly-owned subsidiary, Sanoh Volga LLC, in Tolyatti, Samara Oblast, Russia. The new company, Sanoh's first manufacturing site in the country, started operations in February 2013 with some 100 employees. The new facility has a total floor area of 2,300 square meters and manufactures vehicle pipe products for brake and fuel-system tubing. (From a press release on April 5, 2013)

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	2,094	1,810	1,855

R&D Activities

New Mid-term Management Plan: GOAL 15
-The Company revised its mid-term management plan from FY2012, taking into consideration various aspects such as the current state of global affairs and possible future developments. It created a new, mid-term management plan called GOAL 15.
-GOAL 15 outlines 30 initiatives, among which are product development activities that will create new value going forward, development activities that will create lighter weight products that help lower environmental impact, and development activities to enhance the functionality of existing products.

Core Initiatives
-Developing lighter weight materials (such as plastics and aluminum) and processing methods
-Migrating from metal to plastics for high-pressure, fuel-injection rails; and fuel lines
-Developing new EGR systems and ultra-high-pressure, fuel-injection tubes
-Developing tube modules for EVs and HEVs
-Developing new production methods; and competitively priced products for the expanding global market, especially in developing countries.

Investment Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Japan	1,953	2,006	2,086
North and South America	2,838	1,910	1,450
Europe	200	94	78
China	673	928	248
Asia	1,226	603	307
Group	6,889	5,541	4,169

Investments in FY ended Mar. 31, 2013
-Investments were focused on improving productivity and renewal of equipment.