Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of change (%)	Factors
Sales	101,524	102,206	(0.7)	1)
Operating Profit	8,139	9,268	(12.2)	-
Ordinary profit	8,735	9,159	(4.6)	-
Current net profit	5,418	4,903	10.5	- Due to a decrease in tax expense

Factors
1)
<Japan>
- Japanese OEM's production volumes, which were reduced in the first half-year by the Great East Japan Earthquake, recovered during the second half of the year. For the entire year as a whole, the Company's performance grew slightly year-on-year by 3%.  
- In addition to a slight increase in revenue from the sale of parts based on increased volume of new-vehicle production, sales significantly grew because of new-vehicle production and new facilities coming online overseas. This resulted in a 13.8% year-on-year increase in overall operating revenue, reaching 53,334 million yen. Profits generated in Japan increased 59.5% year-on-year to 5,769 million yen.

<North America>
- While production at mainly Japanese OEM transplants in North America was temporarily reduced because of the Great East Japan Earthquake, production levels quickly recovered afterwards. In addition, the economy as a whole came out of a slump after a while, so production levels continued to rise for the period.
- Operating revenue in terms of local currency was higher year-on-year, but with the continued strong yen, revenue actually was recorded as a 4.0% year-on-year decrease, to 31,233 million yen. Operating profit in North America fell 8.3% to 1,018 million yen.
- Since the automotive market in Mexico is viewed to have growth potential, the Company in March 2012 established its second production facility in Mexico. The new plant, Yorozu Automotive Guanajuato de Mexico, S.A. de C.V. (YAGM), located in Guanajuato, is scheduled to launch commercial production starting in October 2013.

<Asia>
- In China, performance quickly recovered from the impact on operations created by the Great East Japan Earthquake, as automotive production continued to be strong. However in Thailand, vehicle production decreased year-on-year, first because of the earthquake in Japan, and second because of the flooding in Thailand that caused production to come to a halt.
- Commercial production was launched at two, new facilities. The first one, Wuhan Yorozu Bao Mit Automotive.Co., Ltd. (W-YBM), which is the Company's second production facility in China, came online in October 2011. The other new plant, Yorozu JBM Automotive Tamil Nadu Private Limited (YJAT), which is the Company's first facility in India, came online in November, 2011.
- Operating revenue, which slightly increased by 0.8% year-on-year, was 30,076 million yen. Operating profit generated in Asia dropped significantly for the year, down 35.6% year-on-year to 2,884 million yen. This was the result of the prolonged period of lower production volumes during the period, as well as the initial start-up costs the Company incurred to bring new production facilities online.
- Yorozu Thailand (YTC) established a second production facility in April 2012 in Thailand. The new plant, Y-Ogura Automotive (Thailand) Co,. Ltd. (Y-OAT) in Rayong Province, Thailand, is scheduled to commence commercial production from August 2013.
- The Company, believing in the future of the Indonesian market, took advantage of what it believes to be a business opportunity, by establishing PT. Yorozu Automotive Indonesia (YAI) in Karawang Regency in February 2012. The new facility is scheduled to launch commercial production from August 2013 and deliver products to Nissan's and Suzuki's transplants in Indonesia.

- The Company is going to increase largely the purchasing volume of suspension components as well as production castings it procures from DK Austech Co., Ltd. based in Busan, Korea. The company is looking to raise the ratio of parts and components it sources from the Korean company, in which it has a stake, to 10 percent of the total procurement value by the business year ending March 2017 (FY2016). At the same time, the company is going to double from the level in FY2010 purchasing of production castings from Korea to nearly 50 percent of the total purchasing cost. By stepping up use of parts and materials made in Korea, which is strengthening its cost competitiveness in the international market due to the won depreciation, the company aims to improve profitability of its domestic business and support Japanese automakers' cost reduction efforts, as they are suffering from the impact of the yen appreciation. (From an article in the Nikkan Jidosha Shimbun on August 10, 2011)

New Company

- The Company announced on February 13 that it is going to establish two new subsidiaries in Mexico and Thailand to manufacture and sell automotive suspension components and related products. Each of the new facilities will become Yorozu's second plant in respective countries, whose automotive markets are rapidly growing. In Mexico, the company is investing 900 million pesos (approximately 5 billion yen) to establish Yorozu Automotive Guanajuato de Mexico, S.A. de C.V. (tentative name) in Guanajuato as early as the end of this month. The new company, which will be capitalized at 536 million pesos (approximately 3 billion yen), will be owned by the Yorozu Group, while capital participations by a Japanese trading house and Mexican companies are also expected. Sales target for 2015, when the facility is fully operated, are set at 800 million pesos (approximately 4.5 billion yen). In Thailand, Yorozu will invest 1.6 billion baht (approximately 4 billion yen) to form next month Y-Ogura Automotive (Thailand) Co,. Ltd. (Y-OAT) in Rayong, where Yorozu's first Thai plant is already located. Y-OAT is expected to generate 1.8 billion baht (approximately 4.5 billion yen) in sales when its production lines run at full throttle in 2015. (From an article in the Nikkan Jidosha Shimbun on February 15, 2012)

- The Company announced on October 27 that it will establish PT. Yorozu Automotive Indonesia to produce and sell automotive suspension systems and related components in Indonesia. The new subsidiary will be formed at the Mitra Karawang Industrial Estate in January 2012 and start production operations in October 2013. Yorozu is intending to bring the plant up to full-scale production by 2015 with a workforce of some 340. Sales are expected to reach 3.6 billion yen by the same year. Yorozu is investing approximately 6 billion yen in the Indonesian project. (From an article in the Nikkan Jidosha Shimbun on October 28, 2011)

Contracts

- The Company will start production of a splash guard, one of brake parts ordered by Volkswagen (VW), in February 2012. The component will be produced at Yorozu Mexicana, its production facility in Aguascalientes, and supplied to VW for the Jetta and Beetle models being produced at the Mexican plant in Puebla and the Passat, which began to be produced at the new plant in Chattanooga, Tennessee. Another component, an oil pan will begin to be produced in October for delivery to VW's engine plant in Guanajuato, Mexico. This is the first time for Yorozu to have ever entered into business with VW. As VW has re-entered into local production in the U.S. as part of reinforcement of its North American strategy, Yorozu has vigorously expanded production facilities in the U.S. and Mexico, which has contributed to winning this business. (From an article in the Nikkan Jidosha Shimbun on December 14, 2011)

- Yorozu Automotive Tennessee, Inc. (YAT) was awarded additional program business from three Japanese OEM transplants in North America, to which it already delivers parts to their current vehicle lineup. YAT began delivering parts for the new "Toyota Camry" from September 2011, to Honda's latest model "CR-V" from last November, and to the new "Nissan Altima" from May 2012.
- Yorozu Mexicana S.A. de C.V. (YMEX) won its first program business from Volkswagen, to supply brake parts. YMEX started supplying the parts from April 2012.
- Last November 2011, the Company's facilities in China started new deliveries of parts to Toyota, and also began delivering parts to Nissan's Chinese transplant, for the "Venucia brand", in March 2012.
- The company started deliveries in Thailand to Suzuki,, which recently launched new operations in the country. The company began supplying parts to the "Swift" from February 2012. On another note, the Company also began supplying parts independently to the "Ford Focus".

- As of the end of FY2012, the Company developed the following achievements in technology, successfully winning new program business for them and launching sales.

Japan
Honda: front lower-arm/rear axel beam for the "N BOX"
Daihatsu: rear beams (stamped parts) for the "Mira e:S"
Hino: cab mounts for the "Dutro"

U.S.A.
Nissan: front and rear suspension members, and brake pedals for the "Infiniti JX35"
   
China, Mexico
Nissan: front suspension members and rear beams for the "Sunny (Versa) "

Other:
The Company supplied rear trailing arms to "Honda CR-V" in Japan, China, U.S.A., Mexico, and Thailand.

Awards

- The Company was awarded an R&D Award from Honda for its weight-reducing technology that is being featured on Honda's latest light-weight vehicle the N-Box.
- The Company won a Quality Award from Hino in North America for the first time.  
- Yorozu Mexicana (YMEX) was recognized by Honda de Mexico by winning awards for quality, cost, and delivery. This is the fifth year straight for the YMEX to win the Quality Award from Honda de Mexico, ever since it won its first supply agreement from the company in 2007.
- The Company, after winning the Quality Award from Nissan Mexicana last year, won the same award this year.

>>>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	1,354	1,473	1,353

R&D Structure

- With the aim of improving its development capability and shorten development lead-time, the company is going to transfer and integrate its development and production engineering operations, which include prototyping and testing functions, to Yorozu Tochigi, its production base. 

R&D Activities

- The Company developed suspension components for new vehicle models by using new materials and introducing innovative designs and production methods. It has applied for a patent for the new technology.
- The Company has developed the world's first rear axle beam using the tailored blank method. The rear axle beam is used on the N Box mini passenger vehicle to be launched by Honda on December 16. The adoption of the tailored blank technology enabled the company to reduce part count from nine to five, while slashing the product weight by 30 percent from 18.6 kilograms to 12.9 kilograms. The technique also contributes to cutting down on the number of stamping dies required from 43 to 35, leading to lower equipment cost. (From an article in the Nikkan Jidosha Shimbun on December 6, 2011)

Technological Contracts

(As of Mar. 31, 2012)

Name	Country	Contract coverage	Period
Auto chassis International	France	The Contract covers various business activities for rear beams for a passenger car (the YN5) manufactured by Suzuki in China. ACI is in charge of design and development of the relevant part and Yorozu in charge of production engineering, preparatory work for mass-production and production activities in China (YBM). ACI has given Yorozu a non-exclusive license.	May 1, 2005 - Until production of the relevant passenger car is terminated
Jay Bharat Maruti Ltd.	India	To license out non-exclusive rights to produce rear beams the Company designed and developed for the Suzuki YV4. To sell related production equipment to manufacture these products and dispatch engineers to give technical assistance.	March 1, 2009 - Until production of the relevant vehicle is terminated

Capital Investment

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	11,737	4,785	4,283

Capital investments in FY ended Mar. 31, 2012
- The Company invested 1,944 million yen in Japan, 2,484 million yen in North America, and 7,309 million yen in Asia mainly to deal with vehicle-model changes.

Investments Outside Japan

- The Company is aiming to increase the percentage of overseas sales, which now stands at about 60 percent to around 85 percent over the next three to four years. While constructing a second plant in both Thailand and Indonesia, the company will study the possibility of entering into the Brazilian market as well. Being adversely affected by the strong yen, which is seriously hurting its profitability, the company is going to step up its production structure outside Japan to enhance support to Japanese automakers, its major customers that are boosting production overseas. (From an article in the Nikkan Jidosha Shimbun on January 30, 2012)

New Facilities

(As of Mar. 31, 2012)

Business establishment	Purpose	Planned investment (thousand yen)	Start	Planned completion
Lend-lease contract (Yorozu Tochigi Corp.)	Upgrading stamping control equipment	74	Aug. 2012	Aug. 2012
	Installing facilities for new vehicle models	40	Apr. 2011	Oct. 2012
Lend-lease contract (Yorozu Oita Corp.)	Installing facilities for new vehicle models	1,077	Dec. 2010	Sep. 2012
Lend-lease contract (Syonai Yorozu)	Installing facilities for new vehicle models	78	Apr. 2012	Nov. 2012
Yorozu Automotive Tennessee, Inc.	Installing facilities for new vehicle models	3,821	Mar. 2012	Sep. 2012
Yorozu Mexicana SA. de C.V.	Installing facilities for new vehicle models	373	Sep. 2011	Nov. 2012
Yorozu (Thailand) Co.,Ltd.	Installing facilities for new vehicle models	1,751	Jan. 2012	Dec. 2012
Yorozu Bao Mie Automotive Co.,Ltd.	Installing facilities for new vehicle models	964	Nov. 2011	Jul. 2012
Whuhan Yorozu Bao Mit Automotive Co., Ltd.	Installing facilities for new vehicle models	1,919	Aug. 2011	Jan. 2013
Yorozu JBM Automotive Tamil Nadu Pvt Ltd.	Installing stamping and other production facilities	1,954	Nov. 2011	Aug. 2012
PT. Yorozu Automotive Indonesia	Constructing plant and auxiliary buildings	1,492	May 2012	Jun. 2013
	Installing stamping production facilities	2,087	May 2012	Aug. 2013
	Installing an ERP system and other equipment	136	May 2012	Aug. 2013