Financial Overview

(in 100 million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	28,222	25,299	9.8	-Sales increased thanks to greater vehicle production volumes at major customers both in Japan and overseas.
Operating profit	1,711	1,488	22.2	-
Ordinary income	1,894	1,587	22.9	-
Net income	900	775	39.9	-
Aisin Seiki Group
Sales	10,378	8,977	9.2	-Sales increased thanks to greater vehicle production volumes at major customers both in Japan and overseas.
Operating profit	592	524	23.0

Business Plan

In 2012, the Company formulated the Aisin Group Vision 2020, a new growth scenario that focuses on the following five areas:
1) To build a global business structure
<China>
-AW Suzhou Co., Ltd. released its first automatic transmission (AT) system off its production line in September, 2013. AT production will also begin at AW Tianjin Automotive Parts Co., Ltd., which is scheduled to be operational by the end of 2014. AW Tianjin Automotive Parts will have the capacity to produce 400,000 6-speed ATs for front-engine, front-wheel-drive vehicles per year.  

-Takaoka Lioho (Yunfu) Industries Co., Ltd., which is a subsidiary of Aisin Takaoka Co., Ltd., held an opening ceremony in Foshan, Guangdong Province in May 2013. The new facility will produce engine parts and brake components. The subsidiary will be capable of producing 2,500 tons of cast parts and 300,000 units of machined components each month.

<Brazil>
-Aisin AI and Advics will establish their own production facilities at Aisin Seiki's existing production base in Itu, Sao Paulo. At the new Brazilian plants, Aisin AI will produce manual transmissions, starting in August 2014, while Advics will manufacture brake parts, starting in October 2015. Aisin Seiki itself will add another new factory to the same site, planning to commence engine parts production there in February 2016.

<Indonesia>
-Aisin Seiki Co., Ltd. and Advics Co., Ltd. will build new plants on the Aisin Group's new production site in Karawang. The total investment by the two companies is expected to reach JPY 7.5 billion. Aisin Seiki plans to produce auto body components and engine parts, starting in January 2015, while Advics plans to produce brake boosters and drum brakes, starting in December 2014.

<Thailand>
-Hosei Brake Industry Co., Ltd., a subsidiary of Aisin Seiki Co., Ltd., will establish Hosei Brake (Thailand) Co., Ltd. at the Amata City Industrial Estate, Rayong to produce drum brakes. Investment in the new subsidiary is expected to reach THB 570 million (approximately JPY 1.8 billion). The new plant will have a land area of about 37,000 square meters and a floor area of about 11,000 square meters. The subsidiary will be capitalized at THB 324 million (approximately JPY 1 billion), of which 75 percent will be provided by Hosei Brake, 20 percent will be provided by ADVICS Asia Pacific Co., Ltd., and the remaining 5 percent will be provided by Toyota Tsusho Corporation. Production is scheduled to start in June 2014. Annual sales are expected to reach approximately THB 1.5 billion (JPY 4.5 billion) by 2017.

2) To become more competitive in core business areas
-The Company aims to achieve innovative cost reductions through its “Z Project” that covers the period between 2010 and 2015. The project is targeted at 20 product items including door locks, door frames, outside door handles, and dampers for hybrid vehicles. The Company is modifying its product structure to promote simplification and downsizing of its products, while increasing the utilization of low-cost materials. It is also increasing sharing of common parts, reducing part count, and simplifying and streamlining its facilities and tooling. Furthermore, the Company plans to begin producing high-priced products and functional components at its own facilities in order to become more cost competitive, as it aims to increase its presence in the global market.

3) To cultivate business that will become the Company's second pillar
-Since the Japanese automotive market is forecast to shrink on a long-term basis, the Company is cultivating new business to ensure sustainable growth. Addressing the needs for new distributed energy systems, the Company is developing the energy business as a second pillar of its operations after automotive components.

4) To ensure high profitability

5) To promote Corporate Social Responsibility (CSR) worldwide

Outlook for FY ending Mar. 31, 2015

(in 100 million JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ended Mar. 31, 2014 (Actual Results)	Rate of Change (%)
Sales	28,250	28,222	0.1
Operating income	1,720	1,711	0.5
Ordinary income	1,840	1,894	(2.9)
Net income	870	900	(3.3)

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

R&D Expenditure

(in 100 million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Aisin Seiki Group	651	564	507
Aisin Takaoka Group	13	11	11
Aisin AW Group	524	529	490
ADVICS Group	195	193	157
Others	58	51	47
Total	1,443	1,350	1,214

-During FY ending Mar. 31, 2015, the Company plans to invest 150 billion yen, 4.0% increased year-on-year Research and Development.

R&D Activities

-The Company is expanding the scope of its R&D activities. In addition to developing advanced systemized components, modularized parts, and ITS-related products for automobiles, the Company is also performing scientific research on living environment and ecology. It is also carrying out research on fuel cell system, laser technologies, and other cutting-edge technologies.   

-Major R&D achievement during FY ended March 2014 included the development of both a multi-lock type, variable valve timing (VVT) control system and a parking support system.

Product Development

Multi-lock-type, variable valve timing (VVT) control system
-The Company has developed the world's first multi-lock-type, variable valve timing (VVT) control system. VVT systems are designed to control the timing of valve actuations according to the engine's working conditions. Adoption of the technology leads to lower emissions and improved fuel economy. Aisin Seiki's new VVT device uses a cost-competitive hydraulic system instead of an expensive electronic system, while offering higher performances in terms of emissions and fuel-efficiency levels. The company has begun supplying the advanced VVT technology for Nissan's new Pathfinder Hybrid, which was launched in the U.S. in October 2013. It has already won new orders for two more models which are scheduled for release by 2015. (From an article in the Nikkan Jidosha Shimbun on November 5, 2013)

Autonomous driving technologies
-The Company is accelerating its development activities in the area of autonomous driving technologies. During the 2010s, the company will continue its focus on reducing drivers' burden especially in low-speed ranges. In 2003, Aisin Seiki and Toyota Motor Corporation jointly developed Intelligent Parking Assist (IPA) system, the industry's first technology to help direct the vehicle into a tight parking space. Aisin Seiki intends to create further advanced technologies to offer increased safety and convenience to drivers by leveraging this IPA concept. Needs for autonomous technologies vary by driving environments and purposes in each market. The company believes that those that can lessen the burden and stress behind the wheel are the most required in Japan. It has thereby decided to place priority on meeting such demand in the Japanese domestic market. (From an article in the Nikkan Jidosha Shimbun on September 24, 2013) 

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Aisin Seiki Group	81,673	76,944	61,324
Aisin Takaoka Group	25,377	32,711	23,919
Aisin AW Group	74,854	66,632	52,955
ADVICS Group	13,180	11,412	8,239
Others	10,413	7,741	6,113
Elimination	(763)	(409)	(1,753)
Overall	204,736	195,032	150,798

-During FY ended March 2014, the Company focused on up-front investments including projects related to redesigned new vehicles, productivity improvement projects, and business infrastructure development projects in key market areas.

Investment Outside Japan

<Thailand>
-Hosei Brake Industry Co., Ltd., a subsidiary of Aisin Seiki Co., Ltd., announced that it will establish a new manufacturing company to produce drum brakes in Amata City Industrial Estate, Rayong, Thailand. With an investment of THB 570 million (approximately JPY 1.8 billion), the new company, Hosei Brake (Thailand) Co., Ltd., will have a land area of about 37,000 square meters and a floor area of about 11,000 square meters. It will be capitalized at THB 324 million (approximately JPY 1 billion), of which 75 percent will be provided by Hosei Brake, 20 percent will be provided by ADVICS Asia Pacific Co., Ltd., and the remaining 5 percent will be provided by Toyota Tsusho Corporation. Production is scheduled to start in June 2014. Sales are expected to reach approximately THB 1.5 billion (JPY 4.5 billion) in 2017. (From a press release on September 26, 2013)

<China>
-Takaoka Lioho (Yunfu) Industries Co., Ltd., which is a subsidiary of Aisin Takaoka Co., Ltd., held an opening ceremony in Foshan, Guangdong Province on May 14, 2013. A total of CNY 360 million was invested in the first phase of the construction project. The new facility, which will produce engine parts and brake components, plans to increase the number of its product items to 20 by the end of 2013. The subsidiary will be capable of producing 2,500 tons of cast parts and 300,000 units of machined components each month. (From a press release on May 15, 2013)

Planned Capital Investments

(As of Mar. 31, 2014)

	Planned investment (in million JPY)	Mainly for the following facilities
Aisin Seiki Group	111,800	Facilities to produce vehicle bodies and engines
Aisin Takaoka Group	19,500	Metal-casting facilities
Aisin AW Group	84,200	Facilities for producing drivetrains
ADVICS Group	26,100	Facilities for producing brakes and chassis
Others	15,000	Facilities for producing drivetrains
Elimination	(16,600)	-
Total	240,000	-