Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	76,693	76,416	0.4	-Performance was down year-on-year due to several negative factors that impacted the Company's business. These included the Great East Japan Earthquake and the flooding in Thailand that caused production stoppages and adjustments to production operations, and negative currency translation due the high evaluation of the yen.
Operating income	1,202	2,087	(42.4)
Ordinary income	1,584	2,044	(22.5)
Current net income	717	1,763	(59.3)

<Japan>
-Operating revenue, which was 66.59 billion yen, a 3.4% year-on-year increase, rose because of greater sales that resulted from higher production volume by its customers during the second half of the year, in spite of the impact on production caused by the Great East Japan Earthquake in the first half of the year. On the other hand, operating profit fell to 2.894 billion yen, a 2.3% year-on-year decrease, because of fluctuations in product selling prices and because of negative currency translation due to the high evaluation of the yen.

<North America>
-Operating revenue, which was 5.71 billion yen, was lower by 24.4% year-on-year due to a decrease in new orders and due to negative currency translation. The region posted an operating loss of 463 million yen, which was worse that the 96 million-yen loss reported for the previous fiscal year.

<China>
-Due to winning fewer orders for new business while incurring higher expenses for labor, the Chinese region's operating revenue decreased 2.9% year-on-year to 3.216 billion yen. In addition, this year the region posted an operating loss of 52 million yen. Last fiscal year the region reported an operating profit of 229 million yen.

<Asia>
-Even though the Company's subsidiaries in Indonesia and Taiwan reported greater revenue for the year, the operations in Thailand reported a drop in revenue for the year due to the horrendous damage caused by the flooding in the country. Operating revenue for the region decreased 3.1% year-on-year, to 7.693 billion yen. Operating profit was significantly lower at 569 million yen, a 26.0% year-on-year decrease.

New Company

-The Company considers setting up a new plant in northeastern Japan, the Tohoku district. The idea is to establish local production operations in order to be prepared for its major customer Toyota Motor Corp.'s plan to expand vehicle production in Tohoku. Currently, the Company production facilities in Japan are located only in the Chubu and Kyushu districts, and Chuhatsu Techno Co., Ltd. for design and development, Hachinohe, Aomori Pref., is its only affiliated company in Tohoku. Chuo Spring will start searching for a site and a business structure for the most efficient supply operation to Toyota's plants in Tohoku. It will begin a feasibility study in FY2012 and work out details of the plan that should include local production of chassis springs, precision springs and control cables. (From an article in the Nikkan Jidosha Shimbun on January 19, 2012)

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2011	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	307	305	325

R&D Activities

Suspension Spring Business
-The Company developed a new coating technology for zero emission vehicles and started to mass-produce stabilizers using the environmentally friendly method. Also, the Company completed the installation of production facilities and equipment and started mass production of coil springs based on this new production method.

-The Company continues to develop high-strength materials and reinforcement treatment techniques that contribute to reducing weight and improving performance of its products.

-The Company is developing low cost materials.

Precision Spring Business
-The Company finished developing high-precision springs such as valve springs utilizing high-strength materials and high-strength stainless steel springs.
-The Company validated production conditions that can utilize lower priced local materials and can be adapted to produce single-unit items on more compact production lines.

Technology licensing-out Agreement

(As of Mar. 31, 2012)

Suppliers	Country	Contents of contract	Date of Contract	Contract period
Supreme Spring (A Division of Metindustrial (Proprietary) Ltd.)	South Africa	Chassis springs for automobiles and railroad cars.	1984.03.31	Five years (with provision for automatic extension)
Metal Textiles Corporation	USA	Knitted wire meshes	1994.06.01	Five years (with provision for automatic extension)
Knitmesh Limited	UK	Knitted wire meshes	1991.04.01	Five years (with provision for automatic extension)
Dura Automotives Systems, Inc.	USA	Control cables	1995.06.02	Ten years (with provision for automatic extension)
Mubea, Inc.	USA	Automotive chassis springs	2005.06.30	Until the project is terminated
Rozmas Celik Sanayi Ve Ticaret A.S.	Turkey	Automotive chassis springs	2010.02.20	Until the project is terminated
Muhr Und Bender KG	Germany	Automotive chassis springs	2008.06.10	Until the project is terminated

Investment Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	3,835	3,411	1,278

 

Planned Capital Investments

(As of Mar. 31 2012)

	Planned amount of investment (in millions of yen)	Investment plans
Japan	2,700	Production equipment to manufacture suspension springs, precision springs, and control cables. Dies and jigs.
North America	250	Production equipment to manufacture control cables, precision springs.
China	700	Production equipment to manufacture suspension springs, precision springs and control cables.
Asia	450	Production equipment to manufacture suspension springs, precision springs and control cables.
Total	4,100	-

<Indonesia>
-The Company announced on September 27, 2011 it will establish a new subsidiary for engineering in Indonesia. The subsidiary P.T. Chuhatsu Techno Indonesia will be set up in Bekasi, West Java in early January 2012 by a 100 percent injection of capital valued at 10 million yen by Chuo Spring. The new company headed by Keiji Hasegawa, director at Chuo Spring, will be engaged in design and development of equipment and products by 10 employees to be hired by the end of 2012. The company is expecting 13 million yen in sales in 2012, 15 million in 2013 and 16 million in 2014 for each business year ending March. (From an article in the Nikkan Jidosha Shimbun on September 28, 2011)

<China>
-The Company announced on July 27, 2011 that it will relocate the plant of its subsidiary, "Kunshan Chuho Spring Co., Ltd, which produces valve springs and other products in Jiangsu Province in China. A new plant will be built at a relocated site and is expected to go into operation in June 2012. Investment will amount to approximately 1.1 billion yen. The building area of 12,415 square meters will be six times as large as that of the current facility. Annual production volume of springs for general use like seat springs will be substantially increased from the current 400,000 to 2.6 million. (From an article in the Nikkan Jidosha Shimbun on July 28, 2011)