Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	73,560	66,191	11.1	1)
Operating income	4,057	3,672	10.5	-
Ordinary income	4,539	3,928	15.6	-
Current net income	2,477	2,433	1.8	-

Factors
1)
-In Japan, even though demand in the truck market was temporarily reduced because of the Great East Japan Earthquake, demand actually increased for the year as a whole, thanks to an effective recovery, and support from government assistance in the forms of eco-car subsidies and tax reductions. Outside Japan, while demand was temporarily suppressed because of the flooding in Thailand, strong growth overall was seen, especially in emerging-market countries.

Highlights by business segment

Propeller shafts
- The Company supplies the majority of its propeller shafts to Isuzu Motors. Its propeller shafts are also used in the Nissan Patrol, a large SUV sold in Africa and North America; the Isuzu D-Max pickup truck manufactured in Thailand; as well as the Hino Profia and UD Trucks' Quon large trucks. (Interview findings by MarkLines, November 2011)

Engine production business for Isuzu's industrial vehicles
- The V-shaped recovery of the industrial engine market in China has made a significant contribution to the Company's business performance. The Company's 2,000-6,500cc diesel engines are used as power sources of hydraulic shovels, power generators, and other construction machinery sold in China. Based on an OEM contract with Isuzu Motors, the Company manufactures diesel engines at the Moka Plant in Tochigi Prefecture, and conductｓ processing and assembling operations at its home plant in Ebina, Kanagawa Prefecture. It has four engine production lines in total, with a capacity of manufacturing more than 10,000 engines a month. (Interview findings by MarkLines, November 2011)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	205	196	118

R&D Structure

-Under its partnership with JBK Services, which mainly involves R&D activities, the Company is jointly researching and developing automotive parts used in diverse powertrains.
-Part of the activities in advanced technological products are being conducted jointly with Isuzu.

R&D Activities

Automotive parts
-The Company developed various types of propeller shafts primarily for medium and light-duty trucks, power take off systems to meet various needs for mounting and engine components like rocker arms and flywheels.
- The Company developed propeller shafts and drive plates for compact vehicles targeted at the overseas markets. It also engineered engine components for fuel efficient vehicles.
- The Company conducted assessment of new engines that operate on next generation fuels.

Capital Investment

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	1,735	927	1,286
Engine parts business	-	-	110
Automotive parts division	-	-	1,176

Capital investment for FY ended Mar. 31, 2012
- The Company continued to invest in increasing its production capacity and upgrading aging facilities.

New Facilities (automotive parts business)

(As of Mar. 31, 2012)

Name	Location	Type of facility	Planned total investment (in millions of JPY)	Construction start month	Planned completion month
Head Office/ Ebina Plant	Kanagawa Pref., Japan	Processing equipment for power transmission parts, etc.	770	Apr. 2012	Mar. 2013
		Processing equipment for drivetrain and power transmission parts, etc.	490	Apr. 2012	Mar. 2013
Moka Plant	Tochigi Pref., Japan	Processing equipment for engine parts, etc.	420	Apr. 2012	Mar. 2013
		Processing equipment for drivetrain and power transmission parts, etc.	110	Apr. 2012	Mar. 2013
P.T. Jibuhin Bakrie Indonesia	Karawan, Indonesia	Processing equipment for engine parts, etc.	120	Jan. 2012	Dec. 2012
Jibuhin (Thailand) Co., Ltd.	Chonburi, Thailand	Processing equipment for power transmission parts, etc.	590	Jan. 2012	Dec. 2012
		Processing equipment for engine parts, etc.	490	Jan. 2012	Dec. 2012
		Production plant	500	Jan. 2012	Dec. 2012