Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of change (%)	Factors
Overall
Sales	272,543	225,605	20.8	-
Operating income	17,054	9,032	88.8	-
Ordinary income	20,441	12,169	68.0	-
Net income	7,028	6,473	8.6	-
Transportation equipment components
Sales	261,005	214,960	21.4	-Both sales and income increased year-on-year, thanks to the launch of new products and increased vehicle sales in Japan, which were driven by last-minute, new-car buying demand before the consumption tax increase went into effect; and the continued, robust sales of automobiles in North America.
Operating income	16,275	8,666	87.8

Mid-term Management Plan

-The Company has announced its 10th mid-term business plan for a three-year period ending March 2017 (FY 2016). Its major goal is to achieve annual sales of JPY 320 billion, which will be an 11.7 percent increase from the result in FY 2013. The Company is poised to meet its target by strengthening support for automakers that are stepping up local production and sales on a global scale. (From an article in the Nikkan Jidosha Shimbun on May 10, 2014)

Outlook for FY ending Mar. 31, 2015

(in million JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ended Mar. 31, 2014 (Actual Results)	Rate of Change (%)
Sales	280,000	272,543	2.7
Operating income	18,000	17,054	5.5
Ordinary income	18,000	20,441	(11.9)
Net income	9,000	7,028	28.1

-The Company forecast its sales for fiscal year that ends March 2015 will increase by 2.7% compared to the result of FY ended March 2014, due to the increase of product sales to Honda and Renault-Nissan group.

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

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	683	387	411

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 2014.

• 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
• 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.

Product Development

Actuator for active force pedal
-The Company has placed actuator for active-force pedals on the market. This actuator, by applying counter force/reactive force, prevents drivers from applying too much pressure on the gas pedal and improves fuel consumption. In addition, working together with a body sensor, this product is capable of conveying all sorts of information to the driver through the pedal, such as approaching vehicles. This product, because it is the world’s first differently designed actuator for a gas pedal, has excellent properties in terms of layout and versatility. And its design lends it to being installed on vehicles afterward. It is currently being installed on mass-marketed hybrid cars launched in December 2013.

>>>Product which was showcased at Tokyo Motor Show 2013

Technology Licensing-in Agreement

(As of Mar. 31, 2014)

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.	Apr. 2002 - Mar. 2015
The Company	Donnelly (USA)	License agreement on rearview mirror systems fixed on the body, including turn signal light.	Oct. 2005 - Mar. 2024

 

Technology Licensing-out Agreement

(As of Mar. 31, 2014)

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. 2017

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	17,536	18,093	12,236
-Transportation equipment components	17,043	17,874	12,141

-During FY ended March 2014, the Company mainly invested in power-window motors and wiper motors four-wheel vehicles.

Investment outside Japan

<Philippines>
-The Company will beef up production capacity at its manufacturing subsidiary, Mitsuba Philippines Corporation. The subsidiary currently produces horns and motors for power windows, wipers, seats and electronically-controlled throttles at its three existing plants in the Philippines. The Company has begun constructing a new plant at an adjacent site to the No.2 plant, which currently produces motor components. At the same time, the three existing plants will boost production capacity by improving the equipment layout. (From an article in the Nikkan Jidosha Shimbun on October 4, 2013)

Planned Capital Investments

(As of Mar. 31, 2014)

Name	Facility type	Planned investment amount (in million JPY)	Construction start month	Planned completion month
The Company
R&D Center	R&D facilities	555	Apr. 2014	Mar. 2015
Akagi Plant	Machinery to manufacture new products	287	Apr. 2014	Mar. 2015
Onishi Plant	Machinery to manufacture new products	162	Apr. 2014	Mar. 2015
Niisato Plant	Machinery to manufacture new products	736	Apr. 2014	Mar. 2015
Tone Plant	Machinery to manufacture new products	365	Apr. 2014	Mar. 2015
Tomioka Plant	Machinery to manufacture new products	95	Apr. 2014	Mar. 2015
Fukushima Plant	Machinery to manufacture new products	26	Apr. 2014	Mar. 2015
Niigata Plant	Machinery to manufacture new products	183	Apr. 2014	Mar. 2015