Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	57,207	73,560	(22.2)	-Revenue sharply dropped year-on-year in because of a significant decrease in engine production due to the stagnant construction equipment market in China.
Operating income	2,313	4,057	(43.0)	-Income decreased due to lower sales of engine parts.
Ordinary income	3,083	4,539	(32.1)	-
Current net income	1,867	2,477	(24.6)	-

Consolidating Operations with I Metal Technology Co., Ltd. and TDF Corporation

-The Company, I Metal Technology, Co., Ltd. and TDF Corporation announced that they (the three companies) reached an agreement to consolidate their operations through establishing a joint holding company by jointly transferring their equity shares.
-The new joint holding company, which is named IJT Technology Holdings Co., Ltd., is headquartered in Minato-ku, Tokyo and capitalized at 5.5 billion yen. Isuzu Motors will own 44% of the outstanding stock shares, making the holding company its subsidiary.
-The three companies will become wholly owned subsidiaries of IJT Technology Holdings.
-The three companies did not foresee much prospect for demand in Japan over the long term. Plus, with the emergence of strong OEMs in developing countries and with the extremely tough price competition in the market, the three companies decided that it would be better to consolidate each of their own management resources and technical expertise into one entity, in order to remain viable and develop their businesses while mutually cooperating and supplying to each other.

New Company

-The Company said it will set up a joint venture company in Indonesia with TDF, a forging company. Given a growing automobile market in the ASEAN region, the two companies will be jointly engaged in manufacture and sale of forged materials, machining of forging and stamping parts, assembly and sale of automobile parts in the country. The new joint venture will construct a local supply structure for Japanese automakers operating in Indonesia, where there is a strong demand for commercial vehicles and their production is on the increase. The new company tentatively called "PT. TJForge Indonesia" will be established at the Karawang Industrial Estate in West Java in December. (From an article in the Nikkan Jidosha Shimbun on Oct. 12, 2012)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	175	205	196

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, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	3,570	1,735	927

Capital investment for FY ended Mar. 31, 2013
- The Company continued to invest in increasing its production capacity and upgrading aging facilities.

New Facilities (automotive parts business)

(As of Mar. 31, 2013)

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.	600	Apr. 2013	Mar. 2014
		Processing equipment for drivetrain and power transmission parts, etc.	320	Apr. 2013	Mar. 2014
Moka Plant	Tochigi Pref., Japan	Processing equipment for engine parts, etc.	190	Apr. 2013	Mar. 2014
		Processing equipment for drivetrain and power transmission parts, etc.	40	Apr. 2013	Mar. 2014
P.T. Jibuhin Bakrie Indonesia	West Java, Indonesia	Processing equipment for engine parts, etc.	120	Jan. 2013	Dec. 2013
Jibuhin (Thailand) Co., Ltd.	Chonburi, Thailand	Processing equipment for power transmission parts, etc.	560	Jan. 2013	Dec. 2013
		Processing equipment for engine parts, etc.	2,120	Jan. 2013	Dec. 2013
		Production plant	160	Jan. 2013	Dec. 2013