Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	504,518	516,982	(2.4)	1)
Operating income	20,415	29,952	(31.8)	-
Ordinary income	20,287	27,549	(26.4)	2）
Net income	8,971	17,116	(47.6)	-
Automotive component business
Sales	460,292	469,059	(1.9)	3)
Operating income	18,115	24,222	(25.2)	4)

Factors
1)
-The Automotive Parts Division had lower production volumes in the first half of the year because of the Great East Japan Earthquake. However, during the second half of the year, new-vehicle production recovered overwhelmingly, with greater numbers of vehicle units being produced. As a result of these factors, performance overall ended up to be around the same level as it was the previous year. On the other hand, though, the Optoelectronics Division's performance decreased year-on-year to 504.5 billion yen (a 2.4% year-on-year drop) because of the heated price-war among chip manufacturers overseas.

2）
- Both the Automotive Parts Division and the Optoelectronics Division strived to reduce operating costs. However, there was too much turmoil in the markets and too much fluctuation in currencies. As a result, operating profits dropped year-on-year by 31.8%, to 20.4 billion yen; ordinary profit was 20.2 billion yen, a 26.4% year-on-year decrease; and current net profit was 8.9 billion yen, a year-on-year decrease of 47.6%.

3）
-Due to the impact caused by the Great East Japan Earthquake and the flooding in Thailand, operating revenue slightly decreased for the year to 460.2 billion yen, a 1.9% year-on-year drop compared to the 469 billion recorded during the previous year. This was in spite of a recovery in production during the fourth quarter. If negative currency translation is not factored in, the performance this year would have been on par with that of the previous year.

4）
-Profits by region were 18.1 billion yen, which is a 25.2% decrease year-on-year compared to the 24.2 billion yen recorded during the previous year. Impacting the results were the earthquake in the Japan and the flooding in Thailand, besides adjustments to product mix and product selling prices.

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

Restructuring

-The Company is set to restructure its Japanese domestic production, starting with expansion of the supply capacity in the Northeast region of Japan as early as in fiscal 2013. Toyoda Gosei, which currently conducts only assembly work of some components on the premises of the Iwate Plant of Kanto Auto Works, has an intention of establishing a local supply network, including at the site of the Miyagi Plant of Central Motor Co. It is now studying various ideas like expansion of the workshop within customers' facilities or setup of its own new off-site facility, hoping to finalize the concrete plan by this summer. (From an article in the Nikkan Jidosha Shimbun on January 12, 2012)

Financial Overview for FY ending Mar. 31, 2013

(in million of JPY)

	FY ending Mar. 31, 2013 (forcast)	FY ended Mar. 31, 2012	Year-on-year Fluctuation
Sales	560,000	504,518	55,482
Operating income	30,000	20,415	9,585
Ordinary income	31,500	20,287	11,213
Net income	19,000	8,971	10,029

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Automotive Parts Business	21,900	21,900	23,000
Non-Automotive Parts Business	3,900	3,600	3,000
Total	25,800	25,500	26,000

 

R&D Structure

-R&D activities are conducted globally through cooperation among several organizations within the Company: the R&D Center; Production Technology Development Center; Development, Engineering and Production Engineering Departments at each business segment; Technology Management Department; Material Engineering Department, and its subsidiaries outside Japan, namely Toyota Gosei North America Corporation and Toyota Gosei Europe.

R&D Facilities

Kitajima Technical Center	Aichi Pref. Japan
Miwa Technical Center	Aichi Pref. Japan

R&D Activities

-The Company developed and commercialized the following new products and technologies: airbags for light-weight driver seats, plane-emission LED room-light units, the recycling technology of opening trim, light-weight radiator hose, plastic fuel-lids, and others.
-Development of materials, products, and production methods that are capable of complying with all aspects of environmental regulations.
-Development of all-composite, high-pressure hydrogen tanks for fuel-cell vehicles.

Patent License Contracts for Innovations in Technology

(As of Mar. 31, 2012)

Company	Country	Contract	Period
Eaton Corporation	USA	A patent license agreement for fuel valves.	Feb. 10, 1999 - Feb. 18, 2013
Autoliv Development AB	Sweden	A patent license agreement for curtain airbags.	Feb. 5, 2001 - Feb. 20, 2016
Stant Manufacturing, Inc.	USA	A patent license agreement for quick turn fuel caps.	Apr. 2, 2001 - Oct. 18, 2014
Intier Automotive Interiors of America	USA	A patent and expertise license agreement for urethane spray surfaces	Nov. 18, 2002 - May 10, 2014
Daimler AG	Germany	A patent for a cover used in millimeter-wave radar	Nov. 10, 2011 - Sep. 23, 2019

Technical Assistance Contracts

(As of Mar. 31, 2012)

Company	Country	Contract	Period
Stant Manufacturing, Inc.	USA	An expertise license agreement for conductive fuel caps	Nov. 17, 1998 - Dec. 21, 2018
Magna Steyr Fuel Systems	Germany	A patent license agreement for conductive fuel caps.	Feb. 26, 2004 - Dec. 21, 2018
Orbitronics Co., Ltd.	Pakistan	An expertise license agreement for steering wheels	Dec. 29, 2006 - Dec. 28, 2014
Pong Codan Rubber (M) Co., Ltd.	Malaysia	A technological licensing agreement on weather-strips	Jul. 16, 2007 - Jul. 15, 2012

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Automotive Parts Business	33,100	36,100	29,300
Non-Automotive Parts Business	4,400	10,700	4,900
Group	37,600	46,900	34,300

-The company will invest 37.6 billion yen mainly in its Automotive Parts Business and Optical Electronics Business.

Automotive Parts Business
-The Company invested 33.1 billion yen in order to ready its production facilities to handle new products, and to increase production capacity mainly in emerging-market countries.

Capital Investment Plan (FY ending Mar. 31, 2013)

-The Company plans to make a capital expenditure of 39,000 million yen company wide so it can install new equipment and additional equipment. Of this amount, it will invest 36,900 million yen in its Automotive Parts Business on equipment (to produce automotive parts) and dies.

Investment Outside Japan

-The Company announced that it will strengthen the business structure of Toyoda Gosei Private Limited (TGIN), its subsidiary in India. While it used to be engaged in only final molding in its rubber sealing operation by importing half-finished products (extruded components) from Japan, TGIN is planning to introduce new production processes from material blending to extrusion in order to conduct a comprehensive production of rubber products by May 2012. It has also decided to accept capital participation from an Indian company, Minda Investment Ltd., thus changing the company name to "Toyoda Gosei Minda India Private Limited". The investment share is 82.1% by Toyoda Gosei, 12.9% by Minda and 5.0% by Toyota Tsusho Corporation. (From a press release on December 2, 2011)