Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factors
Overall
Sales	34,591	33,356	3.7	-Even though orders for automotive powdered metallurgical products notably fell especially from the 2nd and 3rd quarters, the Company was able to record both higher sales and profit year-on-year due to its effective cost-cutting initiatives such as reducing labor/production costs and adjusting its operations.
Operating income	1,287	1,228	4.8
Ordinary income	1,374	1,262	8.9	-
Net income	1,218	2,138	(43.0)	-
Powder metallurgy product business
Sales	32,629	31,386	4.0	-
Operating profit	2,411	2,281	5.7	-

New Company

<Indonesia>
-The Company announced that it has set up a new manufacturing subsidiary PT. Fine Sinter Indonesia in Karawang, West Java. The new company is capitalized at 4.8 million USD, approximately 400 million yen, and invested 95 percent by the Company and 5 percent by Toyota Tsusho Corporation. Production and sales of powder metal products are scheduled to begin in January 2013. In fiscal year 2015, the subsidiary will have approximately 110 employees, and its sales are expected to reach about 500 million yen. (From a press release on October 10, 2012)

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

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	36,300	34,591	4.9
Operating income	1,800	1,287	39.9
Ordinary income	1,700	1,374	23.7
Net income	900	1,218	(26.1)

R&D Expenditures

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	208	241	240

R&D Structure

Powder metallurgy product business
-The Company used to have a Technology Development Center and a  Production Technology Department, which were in charge of R&D for automotive parts. But the Company streamlined its organization in January 2010, integrating these two functions into the new Development, Production and Engineering Department.

-The Company and Toyota Motor launched a technical liaison team, which is setting the direction for developing sintered products and clarifying the individual roles and responsibilities in starting R&D activities.

-In the product sector for next-generation hybrid vehicles and electric vehicles, the Company is conducting joint-development activities with companies within the Toyota Group such as Toyota Motor, Toyota Central R&D Labs., Inc., Daihatsu, and Aishin Seiki.

R&D Activities

Materials
-In achieving its aim to reduce costs, the Company completed developing rare-earth metal materials incorporating high-strength sintered materials.

Valve seat materials
-The Company continually conducts R&D activities aimed at completing change-overs for developmental materials.

New Developments
-Development of magnetic materials and MIM (metal-powder injection molded) parts

Investment Expenditures

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	2,593	2,297	1,986
-Powder metallurgy product business	2,584	2,229	1,963

-Major capital investment in the powder metallurgical products business: 1,309 million yen for machinery and equipment.

Investments Outside Japan

-During fiscal year ended Mar. 2013, the Company invested to add new plants and increase production lines at the following subsidiary companies:

• Thai Fine Sinter Co., Ltd.
• Precision Sintered Products (Wuxi) Co., Ltd.
• American Fine Sinter Co., Ltd.

Planned Capital Investments

(As of Mar. 31, 2013)

Company Name	Location	Business	Planned investment	Start	Completion	Production capacity increase on completion
Thai Fine Sinter Co., Ltd.	Rayong, Thailand	Facilities and equipment, and also plant buildings, to produce powder metallurgy products	700 million THB	Jul. 2011	Jun. 2014	20%
American Fine Sinter Co., Ltd.	Ohio, USA	Facilities and equipment, and also plant buildings, to produce powder metallurgy products	10 million USD	Dec. 2012	Feb. 2014	25%
Precision Sintered Products (Wuxi) Co., Ltd.	Wuxi, China	Facilities and equipment, and also plant buildings, to produce powder metallurgy products	59 million RMB	Jan. 2013	Apr. 2014	5,000-ton increase in production capacity per year