Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of change (%)	Factors
Sales	14,132	14,742	(4.1)	1)
Operating income	714	890	(19.8)	-
Ordinary income	688	783	(12.1)	-
Net income	329	257	28.0	-

Factors
1) Sales
-Operating performance decreased year-on-year because the Company's business was impacted by the Great East Japan Earthquake during the first half of the year and by the flooding in Thailand during the second half of the year. As a result, business throughout Asia was in a slump.

-Sales of precision-forged products were lower year-on-year by 8.3%. One factor for the decrease was the drop in sales of synchronizer-rings that are used in manual-transmission vehicles, of which a majority are sold overseas.

R&D Expenses

(in thousands JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	2,489	2,344	3,492
Precision forged products	-	-	2,935
Screws	-	-	557

R&D Activities

Japan
-In order to deliver lower cost products, the Company worked to develop and find materials both in and outside Japan that can still maintain the same level of performance but at lower cost. Also, the Company developed high-strength bolts, tapping screws for use on plastics, non-loosening screws, and carbon synchros, which are designed to respond to environmental needs and requirements for lighter products.

Technology Licensed-in Agreement

(As of Mar. 31, 2012)

Company	Country	Products under agreement	Details of agreement	Contract period
Japan Fastener Research & Engineering Co., Ltd.	Japan	Tap Tight	1. Establishing the usage rights to trademark rights. 2. Consenting to both manufacturing and sales rights 3. Providing technical information	From Jan. 1, 2012 to Dec. 31, 2012
Acument Global Technologies, Inc.	Netherlands	Torx	1. Establishing the usage rights to trademark rights. 2. Consenting to both manufacturing and sales rights 3. Providing technical information	From Apr. 23, 2011 to Apr. 22, 2014
		Torx Plus		From Jan. 2, 2012 to Dec. 31, 2015
		Strux		From Jun. 20, 2010 to Jun. 19, 2013
Ejot GmbH & Co. KG, Industrial Fastener Division	Germany	PT screws	1. Establishing the usage rights to trademark rights. 2. Consenting to both manufacturing and sales rights 3. Providing technical information	From Jun. 21, 2004 to July 27, 2018
		Delta PT screws
ITW Automotive C&F Japan	Japan	Locks	1. Establishing the usage rights to trademark rights. 2. Consenting to both manufacturing and sales rights 3. Providing technical information	From Jun. 15, 2012 to Jun. 14, 2013
MAThread, Inc.	USA	MATheard	1. Establishing the usage rights to trademark rights. 2. Consenting to both manufacturing and sales rights 3. Providing technical information	From Oct. 30, 2009 to Oct. 29, 2024
		MATpoint

Technology Licensed-out Agreement

(As of Mar. 31, 2012)

Company	Country	Products under agreement	Details of agreement	Contract period
Hexas Precision (Jiaxing) Co., Ltd.	China	Bolts	Technical assistance regarding production, application and sales	From Sep. 1, 2011 to Aug. 31, 2014

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	412	160	105
Machinery	166	96	43
-Precision forged products	-	-	16
-Screws	-	-	26

-The Company invested mainly in machinery to maintain and update facilities.

-The Company invested 75 million yen in Japan for machinery and equipment.

-In order to prepare for production in response to new program business won, the Company will invest 64 million yen in facilities and equipment in India.

Investment in Japan

-The Company announced that it held a groundbreaking ceremony to expand its screw plant in Mino, Gifu Prefecture, Japan. The completion is expected at the end of January 2013. (From a press release issued in June, 2012)

Planned New Facilities

(As of Mar. 31, 2012)

Company	Location	Target of Investment	Planned Investment Total	Start	End (Scheduled)	Capacity Increase after Completion
Mino Plant	Gifu Pref., Japan	New plant facilities	511 million yen	Aug. 2012	Jan. 2013	-
		Heat treatment furnace	189 million yen	Sep. 2012	Feb. 2013	47 million parts more per month
Owari Precision Products (India) Pvt. Ltd.	Bangalore, India	Facilities and equipment for manufacturing shift-shafts and synchronizer rings	172 million Rs.	Jan. 2011	Dec. 2012	81,000 parts more per month