Financial overview

(in million USD)

	FY ended Mar.31,2014	FY ended Mar.31,2013	Rate of change	Factors
Overall
Sales	2,097.62	2,059.69	1.84%	Note:1)
Operating profit	233.49	212.92	9.66%	-
Profit before taxation	242.99	218.01	11.46%
Profit after taxation	214.90	196.89	9.15%
Automotive Products Group (APG)
Sales	1,436.80	1,303.9	10.19%	Note:2)

1)
-The 1.84% increase in total sales to US$2,097.62 million reflected strong demand from automotive customers, lower sales to industrial customers, fluctuations of foreign exchange rate and divestment of non-core business.

2)
-The Automotive Products Group (“APG”), the largest operating division, achieved sales of US$1,436.80 million – an increase of 10% compared to a year earlier. All the major regional markets reported healthy growth, with the strongest performance being in the Asia. 

 Automotive Products Group

-Excluding nonrecurring items, sales in FY2013/14 amounted to US$1,436.80 million, 7% increase. All the major regional markets reported healthy growth.

<By Regions>
-Excluding currency effects, sales growth from FY2012/13 to FY2013/14: Overall 7%, Asia 4%, Europe 10%, Americas 1%.

-In China, the Company maintained strong growth momentum in Asia. This is driven by the success of the Company's cooling fan products, electric windows, engine fuel management products and electric steering application products.

-In Europe, the Company's sales turnover increased, especially sales of engine cooling fans, electric parking brakes, engine air management products, HVACs and electric windows application products increased.

-In the Americas, the Company's turnover increased, including engine cooling systems, power shift gearbox transmissions, drivelines, engine air flows and fuel management application products. Engine cooling fan business is mainly engaged in manufacture and sales of cooling fan modules to original equipment manufacturers (OEM) and tier 1 customers. It increased 12% in the Americas.

-The Company continues to invest in cutting-edge applications for the development of cost-effective, lightweight, high power density motors and subsystems and products which will strengthen safety, improve fuel efficiency and reduce products emission.
 

Business Reduction

- In February 2013, the Company sold Saia-Burgess Controls at 100.0 million euros to Honeywell International. Saia-Burgess is an European-based non-core business. It is engaged in the manufacture and assembly of programmable logic controllers. Its turnover in 2012 is 69.9 million dollars.

R&D Structure

- Engineering centers are located in Hong Kong, Germany, Switzerland, UK, Italy, Japan, China, Israel and the USA.

New Products

-The Company announced a cinching latch motor platform for automotive power tailgate closure. This new motor platform provides the industry's highest power density in a compact package. Compared with existing motor technology, the new platform is 15 percent smaller, but can deliver a 20 percent higher torque for fast and reliable cinching actuation. The cinching motor platform has integrated electronics with advanced EMC suppression. The motor supports a range of power tailgates used in full size SUVs, compact SUVs and hatchbacks. (From a press release on March 18, 2014)

-In March 2014, the Company announced a powerful platform for electric power steering (EPS) system. This EPS brush motor platform employs innovative design features to generate the industry’s highest steering power and to achieve the lowest cogging torque. Compared with existing brush motor technology, it delivers 20 percent higher steering power and 10 percent lower cogging torque. In addition, the motor is 10 percent lighter than existing brush motors, offering high fuel economy. The EPS motor is expected to provide a cost effective and efficient steering solution. (From a press release on March 12, 2014)

-The Company announced a high torque motor platform for electric park brake (EPB) systems. This new motor platform delivers the industry’s highest braking torque and longest operation cycles within a compact package. The EPB motors delivers 15% higher torque, 60% more operation cycles and advanced electromagnetic compatibility. This new motor platform is designed for caliper, drum and cable type electric parking brakes. (From a press release on February 11, 2014)

-The Company announced a compact dive platform for automotive power liftgate struts. This new drive provides the industry’s highest driving & holding torque in the smallest diameter packages. The compact drive system also integrates precise position sensors and electromagnetic compatibility (EMC) suppression circuitry. The drive system is reportedly designed for SUVs and hatchbacks.  (From a press release on November 27, 2013)

-The Company released new compact and lightweight motors for power seat systems. The motor technology offers low vibration, high electromagnetic compatibility, superior durability and clear and consistent position signals. They are 25 percent smaller and 25 percent lighter than existing products, and are suitable for compact seat designs. The new motors can be customized to avoid seat track resonance. (From a press release on September 3, 2013)

Capital investment

(in million USD)

	FY ended Mar.31,2014	FY ended Mar.31,2013	FY ended Mar.31,2012
Total	96.9	82.6	91.3

Overseas Investment

-The Company announced that it is currently constructing a new plant in Nis, Serbia. The construction project started in October 2013, and production is scheduled to begin in Fall 2014. The new 10,000-square-meter facility will have production lines to make plastic components and metal parts for automakers such as BMW, Volvo, and Jaguar. The company will initially hire 250 people at the factory, planning to expand the workforce to 1,050 by July 2016. The Serbian government has indirectly invested EUR 9 million in this project. (From news releases issued by multiple sources on March 12, 2013)