Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	104,786	92,044	13.8	1)
Operating income	4,612	3,625	27.2	-
Ordinary income	4,774	3,339	43.0	-
Net income	2,188	1,629	34.3	-

Factors
1) Sales
-Sales of tubes for automobiles and transportation equipment devices increased 13.8% year-on-year, thanks to greater production of tubes as a result of the continued, higher volumes of automotive production outside Japan.

-By product, sales of automotive brake and fuel tubes significantly increased year-on-year. Sales of brazing products used in fuel injection, radiation, and oil cooling for engine systems, and plastic tubes, increased year-on-year. Sales of safety products such as those for seatbelts decreased year-on-year.

Overview by Region

<Japan>
-Sales increased 0.6% year-on-year, thanks to the last-minute new-car-buying demand that resulted before the consumption tax increase, even though overall automotive sales in Japan are generally decreasing.

<North and South America>
-Sales increased 23.5% year-on-year, thanks to increased volumes of products supplied as a result of new orders, and favorable currency translation.

<Europe>
-Sales increased 35.1%, thanks to greater orders from OEMs in the U.K., etc., and favorable currency translation.

<China>
-Even though sales showed an increase by 38.3% year-on-year, the segment actually posted a loss of JPY 381 million due to costs incurred for building a new production plant.

<Asia>
-Sales increased 15.2% year-on-year, thanks to the growing automotive market in Southeast Asia, and favorable currency translation.

Recent Development Outside Japan

<Russia>
-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)

Acquisition

-The Company has converted Geiger Automotive GmbH, a Germany-based automotive plastic parts supplier, into its wholly-owned subsidiary, effective October 29, 2013. The total purchase price was approximately JPY 44.37 billion (USD 44 million).

Award

-The Company announced that its Indonesian subsidiary, P.T. Sanoh Indonesia, has received the Best Quality, Cost and Time Delivery 2012 award from PT. Nissan Motor Indonesia (NMI). P.T. Sanoh Indonesia supplies fuel pipes and brake tubes to NMI. (From a press release on July 26, 2013)

-The Company announced that its Indian subsidiary, STI Sanoh India Ltd., has received the 2012 Best Supplier Award from Renault-Nissan Automotive India Private Limited (RNAIPL). STI Sanoh India's Chennai Plant supplies fuel pipes and brake tubes to RNAIPL. The subsidiary has also been honored with the 2012 SQF Award in recognition of its product quality improvement efforts. (From a press release on July 1, 2013)

Outlook for FY ending Mar. 2015

(in million JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ending Mar. 31, 2014 (Actual Results)	Rate of Change (%)
Sales	120,000	104,786	14.5
Operating income	5,800	4,612	25.8
Ordinary income	5,300	4,774	11.0
Net income	2,500	2,188	14.3

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	2,394	2,094	1,810

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.
-The fiscal year that ended March 2014 was a turning point for GOAL 15. The Company developed environmentally friendly, lighter weight automotive parts a new, energy-saving production method, and advanced 30 initiatives to create products and technology in order to launch new lines of business for value-added products and new products.

Investment Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Japan	2,158	1,953	2,006
North and South America	2,466	2,838	1,910
Europe	263	200	94
China	1,404	673	928
Asia	1,338	1,226	603
Group	7,629	6,889	5,541

Investments in FY ended Mar. 31, 2014
-Investments were focused on improving productivity and renewal of equipment.