Financial Overview

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Remarks
Overall
Sales	15,939	16,199	(1.6)	-
Operating income	1,229	1,451	(15.3)	-
Ordinary income	1,418	1,594	(11.0)	-
Net income	839	780	(7.6)	-
Automotive parts production business
Sales	15,110	15,316	(1.3)	-In Japan: Demand fell as a result of lower sales that resulted from the end of eco-car sales incentives. -Outside Japan: There was a significant drop in exports to China.
Operating income	1,117	1,342	(16.8)	-

Business Plan

Re-launching production of hollow valves
- The Company will enhance production capacity of hollow valves, resuming mass production of them. In addition to upgrading the current production line for hollow valves at its Shizuoka plant by the end of this fiscal year, the Company will consider installation of an additional processing machine to boost production capacity. It used to be made in large volumes, but now in small volumes only for service parts. The Company has, however, decided to resume its mass production in expectation of increasing orders from Japanese automakers eager to improve fuel efficiency of vehicles. The engine valve supplier installed equipment for making hollow valves in 1989 and began mass production in 1991, primarily for Nissan. After completion of production of the engine fitted with hollow valves, hollow valves are now produced in small numbers. The Company will, however, restart their volume production in the hope of getting increased orders. (From an article in the Nikkan Jidosha Shimbun on Nov. 8, 2012)

Strategy for Overseas Operations
-In China, the Company started manufacturing products under its seamless production system at Fuji Valve (Guangdong) Corporation, producing materials up to conducting forging and machining operations.
-The Company is considering conducting new business operations outside Japan. 

Outlook for FY ending 2014

(in million JPY)

	FY ending Mar. 31, 2014 (Forecast)	FY ended Mar. 31, 2013 (Actual Results)	Rate of Change (%)
Overall
Sales	15,950	15,939	0.1
Operating income	1,000	1,229	(18.6)
Ordinary income	1,400	1,418	(1.3)
Net income	1,200	839	43.0

R&D Expenses

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall (Automotive parts business)	150	170	182

R&D Facility

-The OOZX Technical Center, located within the Shizuoka Plant premises, conducts R&D activities.

R&D Activities

-The Company worked to research and develop light-weight parts and highly abrasion-resistant materials, to establish technology for manufacturing valves with high-strength materials and to enhance its research system.

Mutual Technical Assistance Agreements

(As of Mar. 31, 2013)

Partner (Country)	Items	Contents	Period
TRW Automotive U.S. LLC (USA)	Engine valves	Approval for non-Exclusive rights for manufacturing, sales and use	Jan. 1 1996 - (Automatic renewal)
TRW Automotive GmbH (Germany)	Engine valves	Approval for non-Exclusive rights for manufacturing, sales and use	Jan. 1 1996 - (Automatic renewal)

Technology Licensing-out Agreements

(As of Mar. 31, 2013)

Partner (Country)	Items	Contents	Period
Shin Han Valve Ind. Co., Ltd. (Korea)	Engine valves	Approval for exclusive rights for manufacturing, sales of technology	Sep. 29, 2011 - Sep. 28, 2014
TRW Fuji Serina Co., Ltd. (Thailand)	Engine valves	Approval for non-exclusive rights for manufacturing, sales and use of technology	Jan. 1, 2011 - Dec. 31, 2015
TRW Fuji Valve Inc. (USA)	Engine valves, Valve adjusters, Cotters, Valve seats	Approval for non-exclusive rights for manufacturing, sales and use of technology	Sep. 15, 1988 - dissolution of JV
Shriram Pistons & Rings Limited (India)	Engine valves	Approval for non-exclusive rights for manufacturing, sales and use of technology	Dec. 5, 2012 - Dec. 4, 2019
Fuji Valve (Guangdong) Corporation (China)	Engine valves, Cotters, Retainers	Approval for non-exclusive rights for manufacturing, sales and use of technology	Oct. 1, 2010 - Sep. 30, 2013

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	949	636	567
-Automotive parts business	942	633	536

-For the fiscal year ending March 2013, the Company primarily invested in engine-valve production facilities at its automotive parts division.

Planned Capital Investments

(As of Mar. 31, 2013)

Facility (Location)	Facility type	Planned Investment Amount (in million JPY)	Start	Scheduled Completion
Shizuoka Factory (Shizuoka Pref., Japan)	Production facilities to manufacture engine valves	1,377	Mar. 2013	Mar. 2014
	Maintenance and renewal	245	Mar. 2013	Mar. 2014