Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of change (%)	Factors
Overall
Sales	225,605	207,803	8.6	-
Operating income	9,032	7,928	13.9	-
Ordinary income	12,169	7,266	67.5	-
Net income	6,473	2,917	121.9	-
Transportation equipment components
Sales	214,960	197,868	8.6	-Even though the Company faced a very harsh business operating environment, its sales increased year-on-year, thanks to the strong recovery in sales of new vehicles in the U.S.A. However, the drop in vehicle sales in Japan after the eco-car sales incentives ended and the economic slowdown in developing-country markets triggered by the debt crisis in Europe greatly impacted performance, as did also the boycott on Japanese-brand vehicles in China.
Operating income	8,666	8,397	3.2	-

Business Plan

Boosted Production of Brushless Motors for Electric Power Steering Systems
-The Company is planning to boost its global production of brushless motors for electric power steering systems. By fiscal year 2016, the Company aims to raise its yearly production volume of motors for 6 million vehicles, up 20 percent from its FY2013 forecast. Preparing for increase in supply to Toyota Motor and Volkswagen, the Company will expand output especially in China and Japan. Although brushed motors are widely used in existing electric power steering systems, requirements for brushless motors are projected to rise for their high levels of durability and performances. (From an article in the Nikkan Jidosha Shimbun on Mar. 15, 2013)

Expanding Sales of Power-controlled Wipers to Japanese OEMS
-The Company is poised to expand sales of its controlled wipers targeting Japanese car manufacturers. The wipers, featuring control units to enhance functions, have already been supplied to Volkswagen. Besides improvements in functions, the wipers contribute to reducing vehicle weight. The Company has recently won the first contract to supply the new wipers for Japanese auto maker's flagship model. The controlled wiper incorporating a control unit has a function that can optimally manage the motion of the motor. (From an article in the Nikkan Jidosha Shimbun on Dec. 5, 2012)

Restructuring

<Mexico>
-The Company will amalgamate its three subsidiaries in Mexico as of January 1, 2013. Through the business merger, the Company will expedite its decision making and improve cost competitiveness. Of the three subsidiaries in State of Nuevo Leon that manufacture and sell auto parts including die-cast parts, Corporacion Mitsuba de Mexico (CMM) will be a surviving company by absorbing the remaining two. (From an article in the Nikkan Jidosha Shimbun on Nov. 9, 2012)

Outlook for FY ending Mar. 31, 2014

(in millions of JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Sales	240,000	225,605	6.4
Operating income	12,000	9,032	32.9
Ordinary income	13,000	12,169	6.8
Net income	8,000	6,473	23.6

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	387	411	487
-Transportation equipment components	N.A.	360	399

R&D Structure

-In Japan, R&D activities at the Group are mainly conducted at the Mitsuba Technical Center in Kiryu, Gunma Prefecture; and at the Yokohama Technical Center.

-Outside Japan, the Company has technical centers in the U.S.A., Italy, Germany, Thailand, the Philippines, India, Vietnam, and China. These centers work in close collaboration with the centers in Japan while continuing to globalize the Company's R&D capacities.

-In further developing advanced technologies, the Company collaborates with external organizations such as universities, the Tsukuba office of the National Institute for Materials Science, and others, conducting joint R&D activities.

R&D Activities

-The Company is conducting R&D activities on new actuators, which form the basis of its core technology in the areas of motor technology and control technology; and on keys, which form the basis of component technology. Also, the Company is working on developing new systems in which advanced control technology, new sensor technology, and drive principles have been incorporated.

-The Company launched production of the following products during the fiscal year that ended March 2013.

• Front wiper system
• Rear wiper system
• Window washer system
• Door  mirrors
• Horns
• Power window motor
• Seat motor
• Sun roof motor
• Door lock actuator
• Power sliding door system
• Fan motor
• Electric Power Steering motor
• Starter motor for four-wheel vehicle
• Oil pump motor
• Fuel pump
• AC generator
• Controller

-Currently, the Company is conducting joint R&D activities in the area of component technology to raise product reliability, researching next-generation systems and actuators.

Technology Licensing-in Agreement

(As of Mar. 31, 2013)

Contractor Name	Name of other party	Agreement Details	Contract Period
Corporacion Mitsuba de Mexico, S.A. de C.V.	Ichikoh Industries (Japan)	Exercising the usage of patents and expertise in manufacturing automotive components in Mexico.	Between Dec. 1993 and the time the Company discontinues production of related products
The Company	Donnelly (USA)	License agreement on rearview mirror systems fixed on the body, including turn signal light.	Between Sep. 2005 and the time when the patent expires

 

Technology Licensing-out Agreement

(As of Mar. 31, 2013)

Partner	Agreement Details	Contract Period
Shihlin Electric & Engineering Corp. (Taiwan)	Production technology license and operational license for motorcycles / automobiles electric parts	From Aug. 1998 (automatic renewal)
Armstrong Auto Parts Sdn. Bhd. (Malaysia)	Production technology license and operational license for motorcycles / automobiles electric parts	From May 1992 (automatic renewal)
Smith (South Africa)	Licensing of manufacturing technology for wiper motors for automobiles	From Mar. 1979 (automatic renewal)
APM Automotive Holdings Berhad (Malaysia)	Licensing of technology for wiper motors and washers etc. for automobiles	Apr. 2007 - Apr. 2013

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	18,093	12,236	9,237
-Transportation equipment components	17,874	12,141	9,011

-The Company invested in facilities and equipment at its Transportation equipment components, including at subsidiaries located inside and outside Japan, to produce power-window motors and wiper motors four-wheel vehicles, and other products.

Planned Capital Investments

(As of Mar. 31, 2013)

Name	Facility type	Planned investment amount (in million JPY)	Construction start month	Planned completion month
The Company
R&D Center	R&D facilities	452	Apr. 2013	Mar. 2014
Akagi Plant	Machinery to manufacture new products	310	Apr. 2013	Mar. 2014
Onishi Plant	Machinery to manufacture new products	310	Apr. 2013	Mar. 2014
Niisato Plant	Machinery to manufacture new products	726	Apr. 2013	Mar. 2014
Tone Plant	Machinery to manufacture new products	360	Apr. 2013	Mar. 2014
Tomioka Plant	Machinery to manufacture new products	179	Apr. 2013	Mar. 2014
Fukushima Plant	Machinery to manufacture new products	27	Apr. 2013	Mar. 2014
Niigata Plant	Machinery to manufacture new products	418	Apr. 2013	Mar. 2014