Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factors
Sales	457,053	359,331	27.2	1)
Operating income	39,133	24,219	61.6	-
Ordinary income	42,937	27,209	57.8
Net income	23,900	15,741	51.8

Factors
1) Sales
-The number of product orders the Company received increased, mainly in North America and China.

<Japan>
-The Company received larger orders from main customers. Royalty revenue also increased as a result of the Company's shifting production overseas.
-The Company began producing seats for Honda's new vehicles including the Fit, the N-WGN, and the Odyssey.

<Americas>
-Sales increased due to the favorable impact of a weaker yen. Larger orders from main customers also boosted sales in the region.

<China>
-Sales increased due to the favorable impact of a weaker yen. Larger orders from main customers also boosted sales in the region.
-The Company started producing seats for the Honda Crider which is sold exclusively in China.

<Asia, Europe>
-Sales increased due to the favorable impact of a weaker yen. Larger orders from main customers also boosted sales in the region.
-The Company began producing seats for Honda's new Mobilio in Indonesia. It also started manufacturing seats and interior products for the Honda City, and seats for the Honda Amaze in India.

New Plant

Gyoda plant has started its operations
-New plant has started its operations in Gyoda, Saitama Prefecture. The Company was producing automotive interior parts such as door trims at its three plants in Gyoda, Sayama, and Kawagoe cities in Saitama, but consolidated the parts production into the new plant. The new plant covers entire processes of door trim production from molding, processing, to assembly. The plant in Kawagoe will be closed in March 2014 as its production transfer has been completed. This consolidation is part of the company's efforts to restructure its production system in Japan. (From an article in the Nikkan Jidosha Shimbun on March 27, 2014)

<Thailand>
-The Company will establish a new automotive seat plant in Prachin Buri, Thailand. The new plant will start operations in March 2015, and supply products to Honda's compact car. Production of the car is planned to start at Honda's second plant in Thailand. TS Tech (Kabinburi) Co., Ltd. will be established in December with the capital of THB 800 million (JPY 2.5 billion). The plant will have an annual production capacity of 200,000 car seats and door trims. The company's total automotive seat production capacity in Thailand will increase to 500,000 units per year, combining the capacity of new plant and the existing plant in Saraburi (annual capacity: 280,000 units). (From an article in the Nikkan Jidosha Shimbun on November 28, 2013)

<India>
-The Company announced that it will resume construction of a new plant at its Indian consolidated subsidiary in Rajasthan in order to meet demand from its major customer. The new plant, which will begin operating in February 2014, will manufacture automotive seats and door trims. It will have a land area of 47,000 square meters and a floor area of 18,000 square meters. The subsidiary was established in February 2008 and was scheduled to become operational in 2009. The Company had suspended the plant construction project when its major customer postponed a plan to increase automotive production capacity in the country. (From an article in the Nikkan Jidosha Shimbun on August 8, 2013)

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

Outlook for FY ending Mar. 2015

(in millions of JPY)

	FY ending Mar. 2015 (Forecast)	FY ended Mar. 2014 (Actual Results)	Rate of Change (%)
Sales	438,000	457,053	(4.2)
Operating income	37,500	39,133	(4.2)
Ordinary income	40,000	42,937	(6.8)
Net income	22,700	23,900	(5.0)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Group	11,635	11,221	9,641

R&D Facilities

Name	Location
Technical Center	Tochigi Pref., Japan
Engineering Center	Tochigi Pref., Japan
Safety Technical Center	Tochigi Pref., Japan
TS Tech North America, Inc.	Ohio, U.S.A.
TS Tech Asian Co., Ltd.	Bangkok, Thailand
TS Tech Deutschland GmbH	Tappenbeck, Germany
Guangzhou TS Tech Automotive Interior Research & Development Co., Ltd.	Guangzhou, China

<China>
-The Company announced othat it will establish a new research and development company in Guangzhou, Guangdong Province, China in August 2013. The Company is poised to enhance its local development capability to meet the needs of its major customer Honda Motor. The new company, Guangzhou TS Tech Automotive Interior Research & Development Co., Ltd., will be capitalized at USD 800,000 (approximately JPY 80 million), fully provided by TS Tech (Hong Kong) Co., Ltd. This is TS Tech's first R&D subsidiary in China. The company intends to meet its customers' demand more promptly, aiming to win more orders. (From an article in the Nikkan Jidosha Shimbun on Jun 15, 2013)

R&D Activities

Automotive Business
<Japan, Americas>
1) Safety technology
-The Company aims to develop advanced driving safety technologies and products by carefully studying the safety regulations and standards in each country.
-The Company developed a seat that reduces drowsiness, and is working to turn the technology into a practical business solution. The technology was developed through a joint project with some universities.

2) Environmental technology
-The Company is studying recycling technologies for materials and components used in its products. It also aims to make lighter products by using fewer parts and optimizing product designs, in order to help automakers improve vehicle fuel economy. 

3) Technology responding to product appeal and comfort
-In line with making variable seat arrangements and positions possible, the Company is developing various seat-positioning mechanics. In addition, it is commercializing easy-to-use products and strengthening its R&D capabilities in the area of electric/electronic auto parts, which are all designed from the customers' points of view.
-As measures to improve visual appearances and product appeal of its seats and interior components, the Company is developing various processing technologies and design techniques to create a high-quality feel. 

Product Development

Cost and weight reduction of mini-vehicle seats
-The Company intends to achieve a significant cost cutting and weight reduction of its mini-vehicle seats. The company will optimize the design and specifications of seats exclusively for mini-vehicle applications, aiming to cut production costs by 20-30 percent and reduce product weight by 15 percent in the next generation models. It will also enhance productivity by establishing an integrated production structure, which includes welding of seat frames to seat assembly. The company believes such cost cutting efforts will lead to more orders, as Honda is expanding production and sales of mini-vehicles in Japan. (From an article in the Nikkan Jidosha Shimbun on Apr. 22, 2013)

Capital Investment

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013
Japan	5,380	5,082
Americas	6,698	2,857
China	654	658
Asia/Europe	7,227	2,778
Total	19,960	11,377

Major Capital Investment Projects

(As of Mar. 31, 2014)

Plant	Location	Investment targets	Planned amount of investment (in millions of JPY)	Start	End
Saitama Plant	Saitama Pref., Japan	Buildings, and facilities and equipment to produce seats and interior products for four-wheel vehicles.	1,133	Apr. 2014	Mar. 2015
Suzuka Plant	Suzuka City, Mie Pref., Japan	Buildings, and facilities and equipment to produce seats and interior products for four-wheel vehicles.	591	Apr. 2014	Mar. 2015
Technical Center	Tochigi Pref., Japan	Prototyping and test facilities for interior products.	722	Apr. 2014	Mar. 2015
TS Tech USA Corporation	Ohio, U.S.A.	Buildings, and facilities and equipment to produce seats and interior products for four-wheel vehicles.	744	Apr. 2014	Mar. 2015
TS Tech Americas, Inc.	Ohio, U.S.A.	Prototyping and test facilities of die and mold for interior products.	711	Apr. 2014	Mar. 2015
TriMold, LLC.	Ohio, U.S.A.	Buildings, and facilities and equipment to produce seats and interior plastic products for four-wheel vehicles.	566	Apr. 2014	Mar. 2015
TS Tech Indiana, LLC.	Indiana, U.S.A.	Equipment to produce seats and interior products for four-wheel vehicles.	758	Apr. 2014	Mar. 2015
TS Tech Canada Inc.	Ontario, Canada	Buildings, and facilities and equipment to produce seats and interior products for four-wheel vehicles.	1,323	Apr. 2014	Mar. 2015
TST Manufactuaring de Mexico S de RL de CV.	Guanajuato, Mexico	Buildings, and facilities and equipment to produce seats and interior products for four-wheel vehicles.	1,028	Apr. 2014	Mar. 2015
TS Tech do Brasil Ltda.	Sao Paulo, Brazil	Buildings, and facilities and equipment to produce seats and interior products for four-wheel vehicles.	1,537	Jan. 2014	Dec. 2014
Guangzhou TS Automotive Interior Systems Co., Ltd.	Guangdong, China	Equipment to produce seats and interior products for four-wheel vehicles.	1,363	Jan. 2014	Dec. 2014
Wuhan TS-GSK Auto Parts Co., Ltd.	Hubei, China	Buildings, and facilities and equipment to produce seats and interior products for four-wheel vehicles.	733	Jan. 2014	Dec. 2014
TS Tech (Thailand) Co., Ltd..	Saraburi, Thailand	Equipment to produce seats and interior products for four-wheel vehicles.	1,589	Jan. 2014	Dec. 2014
TS Tech Sun Rajasthan Pvt. Ltd.	Rajasthan, India	Equipment to produce seats and interior products for four-wheel vehicles.	501	Apr. 2014	Mar. 2015
TS Tech (Kabinburi) Co., Ltd.	Prachin Buri, Thailand	Buildings, and facilities and equipment to produce seats and interior products for four-wheel vehicles.	1,850	Apr. 2014	Mar. 2015