Owari Precise Products Co., Ltd. Business Report FY ended 2014

Owari Precise Products Co., Ltd. Business Report FY ended Mar. 2014

Business Highlights

Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of change (%)	Factors
Sales	15,372	14,712	4.5	1)
Operating income	841	675	24.6	-
Ordinary income	1,091	975	11.9	-
Net income	852	568	50.0	-

Factors
1) Sales
-Sales were higher year-on-year, thanks to increased new-vehicle sales of both compact and passenger cars in Japan and to strong exports, especially to Europe.

R&D

R&D Expenses

(in thousands JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	3,522	3,852	2,489

R&D Activities

Japan
-In the screw business, the Company is developing plastic tapping screws, screws that can’t be screwed in at an angle, etc.
-In the precision forged products business, the Company is developing its own R&D activities, finding its own ways to respond to the hollowing-out of production in Japan caused by the general migration of production from Japan to locations outside the country. The Company is developing synchronizer rings, carbon rings, and low-priced materials so as to be able to maintain demand in Japan.

Technology Licensed-in Agreement

(As of Mar. 31, 2014)

Company	Country	Products under agreement	Details of agreement	Contract period
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, 2014 to Apr. 22, 2017
		Torx Plus		From Jan. 1, 2012 to Dec. 31, 2015
		Strux		From Jun. 20, 2013 to Jun. 19, 2016
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 Jul. 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, 2014 to Jun. 14, 2015
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
Magni Japan, Inc.	Japan	High corrosion-resistant coating agent for metal fittings	1. Establishing the usage rights to trademark rights. 2. Consenting to both manufacturing and sales rights 3. Providing technical information	From Dec. 1, 2012 to Nov. 30, 2015

Technology Licensed-out Agreement

(As of Mar. 31, 2014)

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

Investment Activities

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	1,220	1,309	412
-Buildings and structures	N.A.	587	N.A.
-Machinery	656	552	166

-The Company invested to revamp its production lines, improve productivity, and maintain and renew facilities.

<Japan>
-The Company invested JPY 177 million yen in a multistage, parts-forming machine for the purpose of increasing its product range. The Company invested JPY 274 million yen to reduce its risk exposure from any multistage renewal of aging heat-treatment plants and reduce the risks associated with constantly expanding the number of its production sites.

<Thailand>
-The Company invested 128 million yen in machinery in order to manufactures products based on new orders.