Financial Overview

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	2,159,942	2,059,344	4.9	-
Operating income	76,790	86,946	(11.7)	-
Ordinary income	94,116	106,696	(11.8)	-
Net income	37,955	58,861	(35.5)	-
Automotive Business
Sales	1,070,650	991,246	8.0	-Sales grew year-on-year due to a recovery in production levels by Japanese OEMs after being negatively impacted by the Great East Japan Earthquake and the flooding in Thailand. However, sales for the year were lower in Europe because the market remained stagnant, and sales were lower in China because of the tense political situation between Japan and China.
Operating income	53,116	54,331	(2.2)	-Operating profit decreased year-on-year because the Company incurred higher expenses in fiscal year 2012 in building its global production organization and developing new products.

Joint Ventures

Steel Cord
-The Company announced that it held an opening ceremony for a new joint venture Sumiden Hyosung Steel Cord (Thailand) Co., Ltd., which was set up jointly with Hyosung Corporation, a major Korean manufacturer of textile tire cords. The two companies signed the joint venture agreement in December 2010. Based in Amata City Industrial Estate, Rayong Province, Thailand, the new company produces steel cords. It is capitalized at 1.13 billion Thai baht, 70 percent of which is provided by the Company and the remaining 30 percent provided by Hyosung. In 2014, the new company is expected to sell some 3,000 ton of steel cords annually with a turnover of approximately 5.5 billion yen. (From a press release on November 5, 2012)

Electric Vehicle Charging Connectors

-The Company and Sumitomo Wiring Systems, Ltd. announced on October 24 that they will establish a joint venture company with REMA Lipprandt GmbH & Co., KG, a charging connector manufacturer based in Bonn, Germany. The joint venture called "SUMI REMA EV Solutions GmbH" will be set up in the middle of November to develop and design electric vehicle charging connectors conforming to the "Combined Charging System", which is referred to as "Combo", the EV quick charge standards recommended by European and U.S. auto manufacturers. The Sumitomo Electric Group now manufactures charging connectors for electric vehicles in compliance with ordinary and quick charge standards called “CHAdeMO, which is predominant in the Japanese market. By offering products compliant with both standards in Japan and other areas, the Sumitomo Group intends to expand the EV components business, and plans to commercialize Combo-based connectors as early as 2013. (From an article in the Nikkan Jidosha Shimbun on Oct. 25, 2012)

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Sales	2,400,000	2,159,942	11.1
-Automotive Business	1,255,000	1,070,650	17.2
Operating income	100,000	76,790	30.2
Ordinary income	120,000	94,116	27.5
Net income	60,000	37,955	58.1

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

Mid-term Management Plan

-In 2013, the Company announced its mid-term management plan called 17 VISION, which will finish at the end of the fiscal year ending March 2018. Financial targets are as follows:

(in 100 millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ending Mar. 31, 2016 (Targeted)	FY ending Mar. 31, 2018 (Targeted by end of Mid-term Plan)
Sales	24,000	26,000	30,000
Operating income	1,000	1,300	1,800
Operating profit margin	4.2%	5.0%	6.0%
ROA (Rate of return on total assets)	5.0%	7.0%	9.0%

Automotive Business
-In order to meet the targeted objectives outlined in its mid-term management plan, the Company will further expand its operations involved with its mainstay product items, namely harnesses, connectors, and anti-vibration rubber; based on the following strategies.
1) Increase the share of sales to non-Japanese OEMs

• Increase its market share of harnesses, connectors, and anti-vibration rubber

2) Speed up new product development

• Better respond to the need for weight reduction (aluminum harnesses, etc.) and more modularization
• Increase sales of electronics products (central gateways, etc.)
• Develop and commercialize products for next-generation and eco-friendly vehicles (products for idling stop systems, etc.)

3) Reduce costs

• Pursue the idea of producing products at the optimum locations
• Enhance technology on automation

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	94,287	86,582	79,026
-Automotive Business	57,866	49,017	45,107

R&D Activities

Wire harnesses / In-vehicle electronic equipments
-R&D activities are mainly conducted at AutoNetworks Technologies, Ltd., which is jointly owned by the Company and Sumitomo Wiring Systems, Ltd. R&D activities are mainly focused on developing new products meeting safety, comfort and environmental needs.

-Wire harnesses:

• The Company is building harness architectures that can be mounted in next-generation vehicles' onboard systems, conducting R&D activities on elemental technologies needed to meet this need. 
• Also, in order to reduce vehicle weight and be environmental friendly, the Company is developing lighter weight harnesses. It has succeeded in this area, developing and starting mass-production of harnesses using aluminum, which is lighter in weight than copper.
• Moreover, the Company is continuing its R&D activities on high-voltage harnesses and connectors for the growing EV/HEV sector.

-In-vehicle electronics devices:

• The Company is now developing electronics devices such as PDs (power distributors) and next-generation in-vehicle LAN (Local Area Network) units in order to respond to the rapid advances taking place in IT. The Company is also launching systems with advanced features and/or networking capabilities.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	147,883	135,039	98,424
-Automotive Business	76,914	60,498	45,666

-The Company invested in the automotive business to increase production and improve the efficiency of wire harnesses and vibration isolating rubber.

Investment Outside Japan

<Thailand>
-The Company and Sumitomo Wiring Systems, Ltd. announced 4 that they would establish a new facility to produce aluminum electric wires for automobiles in Thailand. For the two companies, which began mass production of automotive aluminum wire harnesses in 2010, this is the first time to set up a manufacturing base for the products outside Japan. Demand for lightweight aluminum wires has been steadily expanding, as automakers are striving to reduce vehicle weight as a means of achieving better fuel efficiency. Anticipating an increase in demand in ASEAN countries and China, the two companies decided to build the Thai plant, which will serve as the supply hub to the Sumitomo Electric Group's worldwide operations. The new facility will be owned and operated by SEI Thai Electric Conductor Co., Ltd. (STEC), a local subsidiary of the Sumitomo Electric Group. It will be located within the premises of STEC at the Amata City industrial Estate, Rayong Province and begin commercial operations at a pace of 100 tons/month in September 2014. (From an article in the Nikkan Jidosha Shimbun on Mar. 5, 2013)

<Indonesia>
-The Company announced that it will start production of oil quenched and tempered wires in Indonesia. Demand for the materials used in engine valve springs and other vehicle parts is rising in the country, where Japanese auto parts suppliers are setting up plants to support Japanese automakers' expansion plans. A new, dedicated plant will be established at PT. Sumiden Serasi Wire Products (SWWP), the Company's subsidiary making prestressed concrete steel products. The Company will make an additional investment in SWWP to raise its capital to 51 million dollars. SWWP will construct a new production line, planning its operation launch in October 2013. With this expansion, the Group is expecting to step up its global production capacity for oil quenched and tempered wires to 18,000 tons a year, up by approximately 25 percent from the 2012 first-half level. (From an article in the Nikkan Jidosha Shimbun on Nov. 17, 2012)  

Investment Plan (FY ended Mar. 31, 2014)

-The Company plans to invest 160 billion yen.
-Its Automotive Business Division plans to invest 93 billion yen mainly in its facility that produces wire harnesses and vibration-isolating rubber.