Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	46,500	44,852	3.7	-
Operating income	4,701	4,893	(3.9)	-Operating profit was lowe year-on-year because the Company ran up a tremendous amount of expenses due to the Great East Japan Earthquake.
Ordinary income	5,182	5,628	(7.9)	-
Current net income	3,404	3,544	(4.0)	-
Automotive Products
Sales	43,667	42,351	3.1	- Sales increased year-on-year as a result of the Company's accelerating its global expansion plans to meet increased demand in emerging countries especially in Asia.
Operating income	5,170	5,325	(2.9)	-

Recent Development outside Japan

 - The Company will start producing lithium-ion battery components at Piolax Corporation PA (Georgia), starting in the second half of 2012. The products will be used in the battery packs of the Nissan Leaf EVs sold in the U.S.A. Piolax has already been supplying components for the Leaf batteries in Japan, but the Georgia facility will become its first plant among Piolax' existing facilities in Europe, the U.S.A and China and other Asian countries outside Japan to manufacture battery parts. In line with automakers' move to step up EV production overseas, the company aims to boost sales in the area related to EVs by switching to local production. (From an article in the Nikkan Jidosha Shimbun on December 13, 2011)

- The Company plans to enhance its efforts in China to obtain local automakers as new customers. It will increase product-briefing opportunities for Chinese automakers in different regions for active promotion. The company has already supplied to Chery Automobile Co, Ltd. and Great Wall Motor Co., Ltd. It is currently reinforcing production capacity of the local subsidiary as well. PIOLAX aims to achieve in the near future 5 billion yen, its sales target in China, by aggressive activities featuring its supplying experiences and ability for smooth supply. (From an article in the Nikkan Jidosha Shimbun on June 18, 2011)

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	605	588	642
Automotive Products	390	353	347

R&D Structure

-R&D activities were conducted by the design department, development groups in each SBU, and the development division of the Company's subsidiary, Pilolax Medical Devices, Inc.

R&D Facilities

Yokohama Technical Center

Kanagawa Pref., Japan

R&D Activities

- The Company will accelerate development and production of automotive components for hybrid and electric vehicles. The company aims to develop and win new business of inverter components, in addition to supplying its existing motor and battery products. Leveraging its expertise in metal processing and plastic forming technologies, the company will add new items to its product line based on a target of tripling the division's sales to 3 billion yen by fiscal year 2015. Piolax' major automotive businesses include precision springs for drivetrain systems and opening and closing devices, as well as plastic fasteners for interior and exterior products. These products are used in vehicles made by Nissan Motor and other automakers worldwide. In the area of hybrid and electric cars, the company has already been manufacturing battery terminals, battery spacers, and insulators and cover terminals of motors. These components are used in vehicles such as the Leaf and the Fuga Hybrid manufactured by Nissan, the company's major customer. Nissan said it is aiming to increase its global sales of hybrid and electric vehicles to 700,000 units by fiscal year 2015. Other automakers have also announced their global expansion plans for their electrified vehicle businesses. In a bid to boost sales to the automotive industry, which is headed toward the environmentally friendly technology, Piolax is going to launch into a so far untapped inverter business to broaden its business opportunities. (From an article in the Nikkan Jidosha Shimbun on June 10, 2011)

Precision springs
-The Company developed low-cost materials for coil springs used in transmissions and engines.
-The Company developed and started mass-producing smaller, lighter, and more cost-efficient transmission units by using technology to analyze product stress and behavior in order to optimize the design.
-The Company put increased emphasis on developing composite springs designed to raise efficiency when being installed in transmission units.
-The Company also worked closely with assembly plants of its customers in order to develop products that best meet the requirements of the customers, while offering the Company's designing expertise.
-The Company increased joint development activities with and deliveries to automakers in emerging nations, while stepping up development programs with Japanese automakers.

Industrial fasteners
-The Company developed fasteners designed for sheets that run in size from thin to thick. Its new products include fasteners which require a minimum level of strength to be installed in vehicles, those with strong fastening power, and those that make dismantling of scrapped vehicles more efficient.
-The Company is working to develop lightweight products that contribute to improving fuel efficiency.
-The Company developed user-friendly net hooks for vehicle interiors.

Small units
-The Company developed resin parts for lock handles, side locks and dampers for glove boxes.

Fuel systems
-In the area of valves for plastic tanks, the Company enhanced the performance and reduced the manufacturing costs of rollover valves and inlet check valves.
-The Company's R&D activities in the area of valves for metal fuel tanks resulted in the development of standard products and as well as multi-functional products too, which both exceeded the performance of conventional ones at less cost.
-The Company has won increased orders for its fuel supply system components, in line with growing use of fuel injection systems on motorcycles.
-The Company is working on developing products for environmentally friendly vehicles such as those that run on alternative fuels and hybrids.
-The Company developed resin parts for lock handles, side locks and dampers for glove boxes.

Other products
-The Company is developing products (for batteries and motors) made from copper and frame-resistant resin materials. These products are for use on electric and hybrid electric vehicles.
-The Company has been working on developing environmentally friendly technologies compliant with the Japan Automobile Manufacturers Association's directive calling for voluntary reductions of volatile organic compounds and other environmentally harmful substances. It is also following both the End-of-Life (ELV) Vehicle Directive and the Restriction of Hazardous Substances (RoHS) in effect in Europe. Also, the Company has been working closely with its European operations in developing technologies that meet European REACH (Registration, Evaluation and Authorisation of CHemicals).

Technology licensing-in Agreement

(As of Mar. 31, 2012)

Company	Product	Contract Detail	Term
Norma Germany GmbH	Automotive fuel delivery components	Approved use of patent	September 18, 1995 - August 17, 2000. This contract renews annually
Norma Germany GmbH	Plastic fuel tank components	Approved use of patent	Added to the contract above
Norma Germany GmbH	Plastic fuel tank components	Approved use of patent	December 13, 2001 - December 12, 2006. This contract renews annually

Technology licensing-out Agreement

(As of Mar. 31, 2012)

Company	Product	Contract Details	Term
Piolax of Taiwan Inc. (Taiwan)	Metallic and plastic fasteners	Manufacturing technology	From October 6, 1987 through October 5, 1992. To be renewed every 10 years.
Taiwan Houmu Industrial Co., Ltd. (Taiwan)	Pressure springs, torsion springs and valve springs	Manufacturing technology	From November 1, 1978 through October 31, 1983. To be renewed every 5 years.
Piolax Corp. (USA)	Precision plastic clips, precision springs, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	For an indefinite period from April 1, 1993.
Piolax Ltd. (UK)	Precision plastic clips, precision springs, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	For an indefinite period from August 8, 1995.
Piolax Co., Ltd. (Korea)	Precision plastic clips, precision springs, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	From June 20, 1996 through June 19, 2006. To be renewed each year.
Piolax (Thailand) Ltd. (Thailand)	Precision plastic clips, precision springs, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	For an indefinite period from August 10, 2000.
Dongguan Piolax Co., Ltd. (China)	Precision plastic clips, precision spring, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	From July 1, 2004 through June 30, 2014. To be renewed each year.
Piolax Mexicana, S.A. de C.V.	Precision plastic clips, precision spring, and related assembly products for the automotive and electronics industry.	Covers technology, engineering and marketing services	For an indefinite period from January 1, 2011.

Capital Investment

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Automotive Products	3,548	3,048	2,365

-The Company spent 1,882 million yen in Japan and 1,728 million yen outside Japan.

Investments Outside Japan

<Thailand>
- The Company is going to start producing components of continuously variable transmissions (CVTs) in Thailand in 2013. The company has been manufacturing CVT parts in Japan, China and Mexico, but this is the first time for it to produce them in Southeast Asia. It will install new equipment at its existing Thai plant to improve its supply network in Asia, based on the goal of increasing its overseas sales from the current 30 percent in this business year to 40 percent by the year ending March 2015. The expansion will allow the company to supply its products locally to major transmission manufacturer Jatco's (headquarters: Fuji City, Shizuoka Prefecture) first CVT plant in Thailand, which is scheduled to start production in 2013. When the expansion is completed, the Piolax facility will have the capacity to manufacture metal parts such as snap rings and compression coil spring for 500,000 vehicles a year. Aiming to meet the needs of its customers for local supply and the growing demand in the Asian market, the company will spend hundreds of millions of yen on dedicated production equipment. (From an article in the Nikkan Jidosha Shimbun on February 20, 2012)

- The Company announced expansion of its plant in the Eastern Seaboard Industrial Estate in Rayong, Thailand by acquiring the land and building adjacent to the existing plant with an investment of about 300 million yen. The land area will be expanded by 7,278 square meters to 18,567 square meters, while the building by 3,820 to 8,246 square meters. (From a press release on May 26, 2011)

Planned capital investments (automobile related facilities)

(As of Mar. 31, 2012)

Company Office	Business	Expected Investment (Thousands of yen)	From	To	Purpose of the investment
The Company	Production facilities and dies	1,431	Apr. 2012	Mar. 2013	Investment was focused on updating equipment, mainly to improve production efficiency. Only a minor increase was made in terms of production capacity.
Subsidiaries in Japan	Production facilities and dies	117	Apr. 2012	Mar. 2013	Investment was focused on updating equipment, mainly to improve production efficiency. Only a minor increase was made in terms of production capacity.
Subsidiaries outside Japan	Production facilities and dies	2,353	Jan. 2012	Dec. 2012	Since a wide range of products are made at facilities outside Japan, the level of increase in production capacity is unclear.