Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	84,905	82,050	3.5	-
Operating income	1,787	1,204	48.4	-
Ordinary income	2,491	2,504	(0.5)	-
Current net income	810	1,288	(37.1)	-

Factors by Region
<Japan>
-Although sales fell 1.7% year-on-year, operating income increased 4.9% year-on-year due to lower depreciation costs, etc.

<North America>
-Sales increased 19.5% year-on-year and business operated in the black as a result of greater numbers of new vehicles being produced.

<China>
-Sales increased 41.6% year-on-year and business operated in the black as a result of greater numbers of new vehicles being produced.

<Asia>
-Sales increased 2.2% year-on-year. However, operating income decreased 60.7% mainly because of higher costs the Company's subsidiary in Indonesia incurred for raw materials due to the weak rupiah.

New Company

<China>
-The Company established Xiaogan Zhongxing Automotive Components Co., Ltd. in Hubei, China. With a total floor area of approximately 9,400 square meters, the new plant will commence production of suspension springs and precision springs in the first half of 2015. There are expected to be 20 employees by October 2015.

Awards

<Suzuki>
-The Company announced that it has received the Best Partner Award from Suzuki Motor Corporation. (From a press release on February 4, 2014)

<Daihatsu>
-The Company announced that it has received the New Move Special Contribution Award from Daihatsu Motor Co., Ltd. This award was given in recognition of its contribution to improving the Move's competitiveness and reducing its lead-time. (From a press release on April 16, 2013)

<Nissan>
-In October 2013, the Company has received the Quality Excellence Award from Nissan.

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

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	312	293	307

R&D Facilities

-Technical Center (Aichi Pref., Japan)

R&D Activities

Suspension Spring Business
-The Company was actively conducting R&D activities in order to make its production lines more compact, increase its efficiencies even more, and enhance its robustness, aiming to maintain its profitability and competitive strength amidst falling production levels in Japan of suspension coil springs, stabilizers, and leaf springs.

-The Company is developing higher strength materials and stronger treatment processes, making better use of local materials overseas and developing and researching cheaper materials both in and outside Japan.

Precision Spring Business
-In order to create designs that meet the requirements for quality and performance by making use of inexpensive materials overseas and low-cost materials, the Company is continuing activities to enhance its proprietary designs so as to be able to reflect the results of its expertise and data in its products.

-The Company is gradually installing its compact production line, for which it won an engineering award from Toyota, at its plants outside Japan. The compact production line uses a new type of process capable of making rings one at a time.

-By adding a new production method for special materials, the Company was able to increase the performance and reduce the weight of new products that it started producing outside Japan.

-The Company is developing a new use for springs which are being used in technology created to lower fuel consumption. Many of them are already at the commercialization stage.

Cable Business
-In addition to making use of low-cost, local materials, the Company is actively and continually advancing the use of locally procured parts also.

-The Company is developing technology on drawn wire and stranded wire in order to make use of low-cost materials outside Japan. It has already started producing some of these, with plans to continue these R&D activities in the fiscal year that ends in March 2015.  

-In its operations outside Japan, the Company is actively procuring good but low-cost parts locally, while at the same time making use of its highly efficient, productive, and slim compact production line to assemble them. Going forward, this production line is expected to greatly expand the Company's business.

Technology licensing-out Agreement

(As of Mar. 31, 2014)

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.	Mar. 31, 1984	Five years (with provision for automatic extension)
Metal Textiles Corporation	USA	Knitted wire meshes	Jun. 1, 1994	Five years (with provision for automatic extension)
Knitmesh Limited	UK	Knitted wire meshes	Apr. 1, 1991	Five years (with provision for automatic extension)
Dura Automotives Systems, Inc.	USA	Control cables	Jun. 2, 1995	Ten years (with provision for automatic extension)
Rozmas Celik Sanayi Ve Ticaret A.S.	Turkey	Automotive chassis springs	Feb. 20, 2010	Until the project is terminated

Investment Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	3,457	6,661	3,835

Investment outside Japan

<Thailand>
-The Company will invest JPY 700 million to establish a new plant in Thailand by the middle of 2014. The new plant will be the third plant of the Company's production subsidiary, Chuo Thai Cable Co., Ltd. It will produce precision springs and cables starting June 2014. The plant is being established to supply more parts to meet Toyota Motor Corporation's increased production. The new plant will be built in Hemaraj Rayong Industrial Land in Rayong, Thailand. The 9,600-square-meter plant will be built on a 33,465-square-meter plot. The Company will consider adding new production items at the new plant in the future to improve its competitive edge in Thailand. (From an article in the Nikkan Jidosha Shimbun on October 31, 2013)

Planned Capital Investments

(As of Mar. 31 2014)

	Planned amount of investment (in million yen)	Investment plans
Japan	2,250	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	850	Production equipment to manufacture suspension springs, precision springs and control cables.
Asia	1,350	Production equipment to manufacture suspension springs, precision springs and control cables.
Total	4,700	-