Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Overall
Sales	9,709	8,584	13.1	-
Operating income	582	658	(11.6)	-Greater costs were incurred such as initial startup costs for the production plant at a subsidiary in India, and costs for temporary production needed because of revamping a production plant.
Ordinary income	605	749	(19.2)
Current net income	528	909	(41.9)
Automotive device business
Sales	894	914	(2.2)	-Sales of automotive vaporizers fell.
Operating income	118	87	35.6	-
Gas device business
Sales	4,364	3,795	15.0	-Start of business with new customers and recovery in sales of gas injection systems for forklifts in North America.
Operating income	223	193	15.5	-

Recent Developments Outside Japan

<Thailand>
-The Company will establish a subsidiary in Nakhon Pathom, Thailand, to sell CNG and LPG-fueled engine components that are made in Japan to Japanese automakers. Through this subsidiary, the Company hopes to expand business and services in the Association of South-East Asian Nations (ASEAN) market, anticipating a greater demand for CNG vehicles. The new subsidiary Nikki (Thailand) Co., Ltd. (tentative name) will be set up in August 2013, capitalized at THB50 million (approx. JPY156.5 million). (From an article in the Nikkan Jidosha Shimbun on August 2, 2013)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Gas appliance business	37	34	45
Automotive device business	5	18	16
Overall	65	76	86

R&D Activities

-Development activities on ECUs (Electronic Control Units), which are needed by all the business divisions, in order to make them more compact; and research activities on new logic about control. In addition, development activities on exhaust-gas emissions regulations, technology to comply with product planning/designing, and development activities on technology to create products compliant with OBD (On Board Diagnosis) II .

Gas appliance business
-Development activities on electronically controlled fuel injection systems for CNG and LNG vehicles that use LNG, which has gained a lot of interest as an alternative energy; plus, development activities on engine-control technology related to these.

Automotive device business
-Development activities on high-pressure pumps used in alternative-fuel and low-energy devices.

Capital Investment

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	1,371	380	312
Automotive device business	34	21	7
Gas device business	953	241	192

-The Company focused investment on products and R&D areas expected to provide growth in the long term. It also made investments in labor savings, work rationalization and improved product liability.

Automotive device business
-The Company made capital investments in streamlining production.

Gas appliance business
-The Company invested in facilities and equipment corresponding to new models and more streamlined production.

Planned Capital Investments

(As of Mar. 2014)

Site Name	Location	Segment	Purpose	Planned investment (million JPY)	Start	Planned completion
Atsugi Plant	Atsugi city, Kanagawa Pref.	Automotive device business	To streamline manufacturing facilities, etc.	10	Apr. 2014	Mar. 2015
		Gas device business	To streamline manufacturing facilities, etc.	391	Apr. 2014	Mar. 2015
		Automotive device business, Gas device business, General-purpose carburetors (General-purpose equipment business)	To streamline manufacturing facilities, etc.	140	Apr. 2014	Mar. 2015