Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Remarks
Overall
Sales	16,299	15,939	2.3	-
Operating income	1,362	1,229	10.8	-
Ordinary income	1,907	1,418	34.5	-
Net income	1,387	839	65.3	-
Automotive parts production business
Sales	15,563	15,110	3.0	-Japan: Demand remained low due to lower-than-expected vehicle sales prior to the consumption tax hike in April 2014. -Overseas: Sales volume increased especially in China after Fuji Valve (Guangdong) went into full-scale operation.
Operating income	1,256	1,117	12.4	-

Business Plan

Increasing production volume of hollow engine valves
-The Company will sharply increase the annual production volume of hollow engine valves to 10 million units in the fiscal year to end in March 2015 (FY 2014) and to 20 million units in FY 2016 from five million units in FY 2013. The Company expects that the high-value added hollow type will account for over 50% in exhaust valve market in a few years as a result of the spread of fuel-efficient engines. It will propose the hollow engine valves for Japanese OEMs' compact cars and minicars to expand the number of models that feature the hollow engine valves. (From an article in the Nikkan Jidosha Shimbun on April 25, 2014)

New Company

<Mexico>
-In 2014, the Company announced that it will establish a subsidiary to manufacture and sell automotive engine valves in Aguascalientes, Mexico in May 2014. The new company, which will be tentatively called Fuji Oozx Mexico S.A. de C.V., will be capitalized at JPY 200 million (USD 1.97 million). It is expected to become operational by the end of 2014.

<Indonesia>
-The Company will start producing engine valves at its new plant in Indonesia by the autumn of 2014. In August 2013, the Company has formed PT. Fuji Oozx Indonesia, its first subsidiary and engine valve plant in the country. The plant's initial annual production capacity will be 6 million for the fiscal year ending March 2015 (FY2014), and will be lifted to 15 million in FY2017. Production increase in the first phase for FY2015-FY2017 will further be enhanced in the second and third phases. Recently, Japanese automakers are expanding production in Indonesia. The Company hopes to meet demands for engine valves with high durability made by Japanese suppliers.

Outlook for FY ending Mar. 2015

(in million JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ended Mar. 31, 2014 (Actual Results)	Rate of Change (%)
Overall
Sales	16,500	16,299	1.2
Operating income	1,100	1,362	(19.2)
Ordinary income	1,450	1,907	(24.0)
Net income	1,000	1,387	(27.9)

R&D Expenses

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall (Automotive parts business)	175	150	170

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, 2014)

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, 2014)

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, 2014
PT. FUJI OOZX INDONESIA (Indonesia)	Engine valves, Cotters, Retainers, etc.	Approval for non-exclusive rights for manufacturing, sales and use of technology	Sep. 26, 2013- Sep. 25, 2016

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	2,696	949	636
-Automotive parts business	2,694	942	633

-For the fiscal year ended March 2014, the Company primarily invested in engine-valve production facilities at its automotive parts division.

Planned Capital Investments

(As of Mar. 31, 2014)

Facility (Location)	Facility type	Planned Investment Amount (in million JPY)	Start	Scheduled Completion
Shizuoka Factory (Shizuoka Pref., Japan)	Production facilities to manufacture engine valves	987	Mar. 2014	Mar. 2015
	Maintenance and renewal	381	Mar. 2014	Mar. 2015