Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of change (%)	Factor
Overall
Sales	60,384	52,019	16.1	-
Operating income	3,026	4,775	(36.6)	-Even though the Company continued its cost-cutting initiatives to improve its performance, operating income was lower year-on-year due to the production slowdown caused by the Great East Japan Earthquake, and due to the rise in the cost of materials.
Ordinary income	3,140	5,453	(42.4)	-
Net income	1,655	3,828	(56.8)	-
Automotive parts division
Sales	55,799	47,811	16.7	1)
Operating income	2,482	4,281	(42.0)

Factors
1) Automotive parts division
-Even though auto production in Japan was negatively impacted by the Great East Japan Earthquake and the flooding in Thailand, performance for the year as a whole ended up to be slightly higher year-on-year. This was the result of several positive factors such as the recovery in production in the second half of the year by OEMs due to a rise in demand because of the eco-car sales-incentive programs and the tax reductions on eco-cars. Also, the financial results outside Japan were also favorable year-on-year due to the increase in auto production in the U.S.A, which resulted in greater operating revenue because of higher sales.

-Operating profit, unfortunately, ended up being lower year-on-year due to the production slowdown caused by the Great East Japan Earthquake, and due to the rise in the cost of materials.

New Company

-The Company announced on Nov. 11 that Nishikawa of America, Inc. (NOA), its 100% subsidiary in the U.S., will establish a subsidiary in Guanajuato, Mexico, Nishikawa Cooper Mexico S.A. de C.V. It will manufacture, process and sell automotive rubber parts. The Company aims to establish a local production base in South America in order to serve customers overseas and expand sales. While the capital amount is yet to be decided, NOA will hold 100% at the time of establishment and Cooper Standard Automotive Mexico S.A. (CSA) plans to acquire 20% after mass production begins in 2013. Meanwhile, in India, Nishikawa Rubber will raise its shares in its equity method affiliate, Anand Nishikawa Co., Ltd., to 50% from current 20% by the end of this month. The objective is to enhance its strategy for the automotive market in India. The name of the subsidiary will be changed to ALP Nishikawa Co., Ltd. (From an article in the Nikkan Jidosha Shimbun on November 12, 2011)

Outlook for FY ending Mar. 31, 2013

(in millions JPY)

	FY ending Mar. 31, 2013 (Forecast)	FY ended Mar. 31, 2012 (Actual Result)	Rate of Change (%)
Sales	66,000	60,384	9.3
Operating income	4,000	3,026	32.2
Ordinary income	4,150	3,140	32.2
Net income	2,200	1,655	32.9

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	214	230	-
Automotive parts	140	149	162

 

R&D Activities

1) Development of technology to make more lightweight products
-In responding to the need for products that are even more lightweight, the Company has already developed lighter weight and thinner, glass run channels, door inner seals, and trunk seals, making them from plastics and foam, based on its technological expertise in the field. These products are known to contribute to weight reduction. Based on this, the Company is now increasing production of these products that still meet the same standards in terms of weight and specs compared to existing products, delivering more of them for installation on new vehicle models.

-The Company is continuing its R&D activities to further reduce product weight based on the concepts of "less", "hybrid", and "modular".

2) Development of technology to reduce noise
-The Company is continuing to research foaming technology, looking into deep plowing, different types of materials, and compounds in order to further improve noise reduction of door-hole seals and of other areas not related to doors. In this regard, the Company is aiming to launch sales of new products in line with this research.

-In working to improve the cost performance of door-seal materials, the Company is researching the optimum combination of materials and parts that do not lower noise-reduction performance.

3) Development of technology to comply with environmental needs
-The Company is continuing to develop (1) energy-efficient production lines that eliminate material loss when making seals, (2) next-generation seals for eco-friendly cars such as hybrids, and (3) new materials that make use of plant-based resources.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	3,617	2,324	2,091
Automotive parts	3,483	-	2,004

Automotive parts
-The Company invested in facilities and equipment to produce new-type seals. It is also investing to rationalize its operations under the aim of lowering costs.

 

Planned Capital Investments

(As of Mar. 31, 2012)

Plant	Equipment to be introduced	Estimated amount of investment (in million JPY)	Project Period
			From	To
The Company
Shiraki Plant (Hiroshima Pref., Japan)	-Manufacturing equipment for automotive seals -Components for general industry	335	Dec. 2011	Mar. 2013
Asa Plant (Hiroshima Pref., Japan)	-Manufacturing equipment for automotive seals -Components for general industry	898	Dec. 2011	Mar. 2013
Yoshida Plant (Hiroshima Pref., Japan)	-Manufacturing equipment for automotive seals and interior/exterior components -Manufacturing equipment for exterior walls for housing	670	Dec. 2011	Mar. 2013
Mihara Plant (Hiroshima Pref., Japan)	-Manufacturing equipment for automotive door seals. -Manufacturing equipment for exterior walls for housing	750	Nov. 2011	Mar. 2013
Others	-Buildings and R&D equipment and others	505	Jan. 2012	Mar. 2013
Domestic subsidiaries
Nishikawa Bussan (Hiroshima Pref., Japan)	-Manufacturing equipment for automotive seals -Manufacturing dies	156	-	Mar. 2013
Seiwa Kougyo Co., Ltd. (Hiroshima Pref., Japan)	-Manufacturing equipment for automotive seals -Components for general industry	20	Mar. 2012	Mar. 2013
Nishikawa Big Ocean Co., Ltd. (Hiroshima Pref., Japan)	-Manufacturing equipment for automotive seals	153	Mar. 2012	Mar. 2013
Nishikawa Rubber Yamaguchi (Yamaguchi Pref., Japan)	-Manufacturing equipment for automotive seals	223	Mar. 2012	Mar. 2013
Overseas subsidiaries
Nishikawa Cooper LLC. (Delaware, USA)	-Manufacturing equipment for automotive seals	971	Dec. 2011	Dec. 2012
Nishikawa Tachaplalert Rubber Co., Ltd. (Nakhonratchasima, Thailand)	-Manufacturing equipment for automotive seals	1,100	Dec. 2011	Dec. 2012
Shanghai Nishikawa Sealing System Co., Ltd. (Shanghai, China)	-Manufacturing equipment for automotive seals	395	Dec. 2011	Dec. 2012
Guangzhou Nishikawa Sealing System Co., Ltd. (Guangzhou, China)	-Manufacturing equipment for automotive seals	224	Dec. 2011	Dec. 2012
Nishikawa Cooper Mexico S.A. de C.V. (Guanajuato, Mexico)	-Buildings and manufacturing equipment for automotive seals	1,339	Dec. 2011	Jun. 2013