Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of change (%)	Factors
Overall
Sales	29,179	29,200	(0.1)	-
Operating income	403	837	(51.9)	-
Ordinary income	684	944	(27.5)	-
Net income	1,468	1,040	41.2	-
Electrical Component Business
Sales	12,087	12,572	(3.9)	-Even though sales to truck OEMs in Southeast Asia were strong, sales year-on-year decreased because of lower sales in China due to stagnant demand in the construction equipment market.
Operating income	1,023	1,032	(0.9)	-

Recent Development Outside Japan

<Thailand>
-The Company will develop and offer low cost electric parts designed exclusively for Thailand at its joint venture, which will go into full-scale production of electric parts for automobiles in early 2013. By developing new products like starters with fewer parts and reduced fabrication processes, the electrical product manufacturer is set to introduce low-cost competitive components to meet local needs in Thailand. The plant scheduled to commence trial production early next year has begun to install new production equipment, and also is providing training in Japan to its manufacturing staff. Sawafuji is aiming to expand sales leveraging cost advantages in a bid to achieve 2.2 billion yen in sales in 2015. (From an article in the Nikkan Jidosha Shimbun on Sep. 12, 2012)

Management Policies

-The Company's main growth strategies and major challenges are as follows:
1) Strengthening technological capabilities:

• Launch operations in new business areas: respond to the growing EV and HV requirements for commercial vehicles
• Redevelop technology on electric-power generation, renew its ELEMAX electric-power-generation system
• Renew the refrigerator business

2) Redevelop the Niita Plant operating structure

• Reorganize the Niita Plant
• Dramatically improve productivity

3) Strength the sales structure

4) Develop human resources

R&D Expenses

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	948	812	626
-Electrical Component Business	491	421	307

R&D Activities

Electrical Component
-Currently developing small and light, and high-powered electrical components that are in compliance with new regulations on mid-to-large-sized diesel-powered vehicles.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	1,068	242	286

-The Company made investments in equipment mainly for improving profitability and streamlining production operation. 

Planned Capital Investment

(As of Mar. 31, 2013)

Company / Location	Facilities	Expected Investment (In millions of JPY)	Start	Planned completion	Capacity increase after completion
The Company, Nitta Factory (Gunma Pref., Japan)	Facilities to produce electrical parts	531	Apr. 2013	Mar. 2014	-