Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Sales	34,216	38,196	(10.4)	-
Operating income	239	693	(65.4)	-
Ordinary profit	294	469	(37.2)	-
Net profit	130	259	(49.6)	-
Transportation-equipment clutch division
Sales	24,231	28,016	(13.5)	-
Operating income	323	464	(30.3)	-

Recent Development in China

- On May 29, the Company announced that it has established a new subsidiary, Ogura Clutch (Chang Xing) Co., Ltd. for production and sales of clutches and brakes for transport and industrial equipment in Zhejiang Province, China on May 13. The subsidiary will be the additional base to expand production and sales of the Company's products in the Chinese market, as well as to acquire new customers and meet the demands of its existing customers. The operation will start in April 2014. (From an article in the Nikkan Jidosha Shimbun on May 31, 2013)

Awards

-The Company announced that its U.S. subsidiary, Ogura Corporation, has received the "World Excellence Gold Award" from Ford Motor Company. The subsidiary supplies differential locking devices for Ford's pickup trucks. Production of these parts is handled by Ogura Clutch (Dong Guan) Co., Ltd. in China, while final processing, assembling, and testing are performed by Ogura Corporation. The Company plans to boost its production capacity for differential locking devices to 550,000 units a year from the current level of 150,000 units. (From a press release on June 4, 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	334	345	364
Transportation-equipment clutch division	161	159	-

Transportation Equipment Business
-The Company predicts that there will be market demand for its products in connection with forecast changes being made to automobiles in the future, so is working to develop lighter, quieter, energy-efficient, and low-power clutches; torque limiters for external-control compressors; and other products.

Clutches and related products under development

• Super-charger clutches
• Sliding-door clutches
• Power-rear-door clutches
• Power-luggage door clutches
• Diff-lock clutch brakes
• Water-pump clutches

Other products under development

• Superchargers designed for supercharged engines
• Air-pumps for regeneration devices with filters designed to remove diesel-engine exhaust gas.
• Air-pumps and hydrogen pumps for fuel cells

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Transportation-equipment clutch division	322	343	248

Transportation Equipment Business
-The Company made capital improvements to its Akabori and Kohbayashi Plant to enhance and rationalize the production facilities and equipment and make them environmentally compliant, in addition to investing in dies needed for its various products.

Planned Capital Investments (Transportation-equipment clutches)

(As of Mar. 31, 2013)

Name (Location)	Planned total investment (in million JPY)	Starting month	Planned completion	Capacity increase upon completion
Plant No.1, Plant No.2 (Kiryu-shi, Gumma Pref., Japan)	195	Apr. 2013	Mar. 2014	Practically none, as this is to improve product quality
Plant No.3 (Gumma Pref., Japan)	87	Apr. 2013	Mar. 2014	Practically none, as this is to improve product quality
Akabori Plant (Gumma Pref., Japan)	312	Apr. 2013	Mar. 2014	Practically none, as this is to improve product quality
Kohbayashi Plant (Gumma Pref., Japan)	126	Apr. 2013	Mar. 2014	Practically none, as this is to improve product quality
Ogura Corporation Head office plant (Michigan, USA)	52	Jan. 2013	Dec. 2013	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura Clutch do Brasil Ltda. Head office plant (Sao Paulo, Brazil)	20	Jan. 2013	Dec. 2013	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura Clutch (Dong Guan) Co., Ltd. Head office plant (Guangdong, China)	85	Jan. 2013	Dec. 2013	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura Clutch Thailand Co., Ltd. Head office plant (Rayong, Thailand)	96	Jan. 2013	Dec. 2013	An increase will be achieved, as this project is to add new facilities