Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	44,768	41,543	7.8	-
Operating income	3,775	3,372	12.0	-
Ordinary income	3,856	3,328	15.9	-
Current net income	2,504	1,671	49.9	-

Highlights for FY ended Mar. 31, 2012
1) New program business
-The Company was successful in winning a large volume of new program business as a result of its dynamic sales activities directed toward truck makers, construction and industrial equipment/machinery makers, and engine manufacturers.

2) Cost reduction initiatives
-The Company, which worked to reduce its cost structure company-wide, lowered the costs for materials, improved productivity, and strove to achieve effective cost control by lowering expenses.

3) Development of low-priced products and eco friendly products
- The Company responded to greater demand for low-cost vehicles destined for emerging-market countries, and for environmentally friendly products that save energy, by actively developing products that meet such demands from truck makers, construction and industrial equipment/machinery makers, and engine manufacturers based in and outside Japan.

4) Expanding business overseas
-In meeting the growing demand for commercial-vehicle parts at its production facilities in China and India, the Company established a joint-venture company in China with Changchun FAW Sihuan Brake Company to manufacture and sell commercial-vehicle brakes and related parts. In India, the Company turned TBK India Private Ltd. into a subsidiary. In addition, the Company expanded its operations at existing subsidiaries and affiliated companies in Thailand, the U.S.A., and China.

Joint Ventures

-The Company said that it had signed on August 1 an agreement with China-based FAW Sihuan Brake to establish a joint venture company for production and sales of brake-related products used in commercial vehicles. A new company will go into operation on October 1. It will take over from FAW Sihuan Brake trademarks and property rights concerning hubs, drums and other brake-related components, manufacturing equipment, land of about 60,000 square meters, plant buildings and related equipment. TBK will invest about 840 million yen in cash. The new company expects to generate 12.5 billion yen in sales in 2012. The joint venture partner is a company of the FAW Sihuan Group, one of key suppliers for China's largest automaker FAW. (From an article in the Nikkan Jidosha Shimbun on August 3, 2011)

Acquisitions

-The Company announced on September 20, 2011 that it has increased its equity stake in TBK India Private Limited (TBKI), turning the joint venture into its subsidiary. In addition, TBK will acquire the preferred shares to be issued by TBKI, which plans to use the capital raised to purchase land and establish an additional plant for increasing capacity. TBKI will thereafter function as the group's global supply hub, as the fast-growing Indian market is increasingly gaining its importance as a major supply center to automakers based in Japan, the U.S. and Europe, while rapidly strengthening the relationship with ASEAN economy. The new plant will be located in Satara district, Maharashtra. It is expected to be completed in March 2012. (From an article in the Nikkan Jidosha Shimbun on September 21, 2011)

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Group	1,050	1,007	837
Brake production facilities	451	510	425
Engine Components	599	496	331
Other divisions	-	-	80

-R&D expenditure on new product development amounted to 74 million yen in FY ended Mar. 31, 2012.

R&D Section

-The R&D activities are promoted by No.1 Development Dept., No.2 Development Dept., New Products Development Dept. and the Experiment Department.
-The Group has a total of 80 researchers, which account for about 5.5 percent of its entire workforce.

Brake Business
-An increasing number of the Company's air wedge drum brakes, which all Japanese OEMs are  installing, are being equipped on more vehicle models produced by both Japanese and non-Japanese OEMs.
-The Company's next-generation brake, which is an air-disk brake, is now being developed as a module. The Company is now working on creating proprietary pads, rotors and other parts, and preparing for future applications.
-The Company is conducting research and development activities, which are focusing on safer, environmentally friendly, and energy-saving products, accumulating its technology and passing it on to engineers for the future.

Engine Components
-The company promoted the improvement and development of water and oil pumps for engines of small, medium, and heavy-duty vehicles and buses.

Other divisions
-The use of retarder has expanded for medium, and heavy-duty vehicles and buses, as it is regarded as a suitable device for engines designed to meet the exhaust emission regulations.
-The Company worked on enhancing its product mix of retarders, in addition to increasing the number of vehicle models on which they can be adopted.

Licensing of Technology to Other Companies

(As of Mar. 31, 2012)

Name of the contractor	Country	Contract item	Contract coverage	Contract period
TBKK (Thailand) Co., Ltd.	Thailand	Automotive brakes, camshafts, oil pumps, water pumps	1. To set the rights for establishing industrial property rights. 2. To supply technical information 3. To grant manufacture and sales licenses	Mar. 29, 1990 - 10 years from sales launch (then automatic extension every year)
Sangsin Brake Co., Ltd.	Korea	Brakes for large vehicles	Same as above	Jan. 14, 1994 10 years from mass production starting date (then automatic extension every year)
Full Win Developments Ltd.	China	Brake linings	Same as above	Aug. 1, 2002 10 years from the effective date (then automatic extension every year)
Hangzhou TBK-APG Brakes Co., Ltd.	China	Same as above	Same as above	July 30, 2003 10 years from mass production starting date (then automatic extension every year)
Chang chun TBK Shili Auto Parts Co., Ltd.	China	Friction materials for brakes used in commercial vehicles	Same as above	Dec.22, 2005 10 years from mass production starting date (then automatic extension every year)
TBK America, Inc.	USA	Water pumps and oil pumps for automobiles	Same as above	Nov. 15, 2006 10 years from the initial payment date (then automatic extension every year)
Sangsin Brake Co., Ltd.	Korea	Electromagnetic retarders	Same as above	From Sep. 30, 2010 10 years from mass production starting date (then automatic extension every year)
TBK India Private Ltd.	India	Water pumps and oil pumps for automobiles	Same as above	From Jun. 28, 2011 10 years from mass production starting date

Capital Investment

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Japan	1,647	1,068	-
Asia	687	209	-
North America	40	18	-
Automotive Components	2,376	1,296	1,490

Major investment projects
Japan: 552 million yen for engine component business, 331 million yen for brake business
Asia: 245 million yen for engine component business