Securities code: 7313 First Section, Tokyo Stock Exchange

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Transcription:

Comfort seat for minivan exhibited at the 43 rd Tokyo Motor Show 2013 Securities code: 7313 First Section, Tokyo Stock Exchange http://www.tstech.co.jp

Outline Michio Inoue President - Business Overview and Results Outline for FY2014-12 th Medium-Term Management Plan (April 2014 to March 2017) - Outline of Consolidated Forecasts for FY2015 Detail Kazuhiko Hikida Managing Director & Executive General Manager of the Corporate Business Administration Division -Consolidated Results for FY2014 -Consolidated Earnings Forecasts for FY2015

Outline Michio Inoue President - Business Overview and Results Outline for FY2014-12 th Medium-Term Management Plan (April 2014 to March 2017) - Outline of Consolidated Forecasts for FY2015 Detail Kazuhiko Hikida Managing Director & Executive General Manager of the Corporate Business Administration Division -Consolidated Results for FY2014 -Consolidated Earnings Forecasts for FY2015

Business Overview and Results Outline for FY2014 April 1, 2013 March 31, 2014

Results Outline for FY2014 [Results compared to FY2013] Consolidated FY2013 Sales ratio FY2014 Sales ratio Difference Year-on-year Net sales 359,331 100.0% 457,053 100.0% 97,772 27.2% Operating income 24,219 6.7% 39,133 8.6% 14,914 61.6% Ordinary income 27,209 7.6% 42,937 9.4% 15,728 57.8% Net income 15,741 4.4% 23,900 5.2% 8,159 51.8% [Results compared to FY2013] Non-consolidated FY2013 Sales ratio FY2014 Sales ratio Difference (Unit: Million yen) Year-on-year Net sales 85,800 100.0% 97,587 100.0% 11,787 13.7% Operating income 817 1.0% 2,365 2.4% 1,547 189.2% Ordinary income 5,605 6.5% 10,761 11.0% 5,155 92.0% Net income 4,355 5.1% 8,776 9.0% 4,420 101.5% Cash dividends per share (Unit: Million yen) 34 54 20 58.8% End of 1 st half 14 24 10 71.4% End of year 20 30 10 50.0% * Cash dividends per share in brackets are based on projected figures.

Business Overview and Results Outline for FY2014 - Review of 11 th Medium-Term Management Plan-

Medium-Term Management Plan Vision for 2020 2030 Level of global interior parts manufacturing giants To the highest peak, Mt. Everest 2020 INNOVATIVE QUALITY COMPANY World leader in component competitiveness 2010 GOOD QUALITY COMPANY World-class quality From beautiful Mt. Fuji 7

11 th Medium-Term Management Plan (April 2011 to March 2014) Evolution as a global company 11 th Medium-Term Management Plan Evolution as a global company Operating income margin Objective 6.0% Actual 8.6% Intensified efforts Honda s global growth partner Expand sales to companies other than Honda Three priority measures Bolster QCDDM competitiveness Construct an infrastructure of people capable of competing worldwide Develop as a leading company in CSR 8

Bolster QCDDM* competitiveness *Q(Quality) C(Cost) D(Development) D(Delivery) M(Management) Creation of a global operations framework Regional Headquarters TS TECH HONG KONG China The Americas Regional Headquarters TS TECH AMERICAS Regional Headquarters TS TECH ASIAN Asia and Europe Japan TS TECH Completed establishment of headquarters in each region Completed base for global operations 9

11 th Medium-Term Management Plan (April 2011 to March 2014) グローバル企業としての進化 Operating income margin Objective 6.0% Actual 8.6% 2011-2014 Intensified efforts Three priority measures Honda s global growth partner Expand sales to companies other than Honda Bolster QCDDM competitiveness Construct an infrastructure of people capable of competing worldwide Develop as a leading company in CSR 10

Honda s global growth partner Expansion of production capacity and development systems and completion of consolidations to meet customer needs INDONESIA CIKAMPEC Commenced operations at new plant CHINA Established new company as R&D base Entrance to office building INDIA RAJASTHAN Commenced operations at new plant (Automobile seat production) THAILAND Established new company as regional headquarters/r&d base SARABURI Commenced operations at new plant Decided to establish new company (Motorcycle seat production) KABINBURI Established new company 11

Honda s global growth partner Expansion of production capacity and development systems and completion of consolidations to meet customer needs Suzuka Plant Saitama Plant Receiving orders for production for N-WGN Restructuring in Japan Consolidation at Saitama Plant Saitama Plant (Gyoda) Strengthening the organization to receive orders for light automobiles Production system specializing in products for light automobiles Establishment of a sales liaison office in the plant Response to customer SKI (Suzuka bulk system) New interior plant New seat plant Aiming to expand orders received for light automobiles Enhancing production efficiency and developing production technology Global base for manufacturing 12

Expand sales to customers other than Honda Acquired commercial rights from VW(development through production)/ Received order for trim covers from MAZDA GERMANY MEXICO Relocated and expanded sales/ research & development base Established new company as base to supply components in the Americas Scheduled to start operations in October 2014 HUNGARY Established new company (Completed plant building) VW Third seats for new SUV Strengthening components business with view to sales to customers other than Honda MAZDA3 trim covers Commenced production for MAZDA 13

Business Overview and Results Outline for FY2014 - Business Overview for FY2014 -

15 Key Models Entering Production during FY2014 Honda 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Automobiles Motorcycles Red: New model/full model change Black: Minor model change ODYSSEY CTX1300 Japan ACCORD HYBRID FIT N-WGN CBR400R CTX700N FITSHUTTLE Americas RDX TL CR-V (North America) ACCORD FourTraxRancher CIVIC China CRIDER CRF110F ( export ) ACCORD CRF125F Asia and Europe AMAZE (India) ACTIVA (India) SCV125 (India) CITY (India) CITY (Thailand) MOBILIO (Indonesia) SUZUKI SUBARU Kawasaki YAMAHA KX85 (Kawasaki) CARRY (SUZUKI) Ninja1000 (Kawasaki) ESTRELLA (Kawasaki) Raptor 700R (YAMAHA) HAYABUSA 1300 (SUZUKI)

16 Key Models Entering Production during FY2014 Honda N-WGN New model Delivering a comfortable car interior for everyone at a low price Debut: November 2013 Production site: Japan Order: Seats Cost and weight cutting measures Specifications: Reduced weight and cost through purposeful specifications, including the use of two rear seat rails Manufacturing: Built special-purpose manufacturing line to ensure the smooth flow of products and profitability even for products for light automobiles Purchasing: Established base cost for products for light automobiles through rigorous costcutting activities

17 Key Models Entering Production during FY2014 Honda ODYSSEY Full model change Debut: November 2013 Production site: Japan Order: Seats Supreme comfort everyone will appreciate Premium cradle seat Technology: When the back rest is reclined, the front part of the seat lifts to provide gentle support. Also has generous long-slide function, an articulated structure in the backrest, and a built-in ottoman *Develops the concept of the Relax Seat (pictured on the right) exhibited at the 42 nd TMS.

18 Key Models Entering Production during FY2014 Honda MOBILIO New model Prototype-less development promptly reflecting local needs Debut: January 2014 Production site: Indonesia Order: Seats Cost-cutting measures Development: First seat independently developed at local research & development site Challenges: First prototype-less development (CAE development), and fastest-ever development in the shortest-ever timeframe Procurement: Actively used new local suppliers Specifications: Tailored specifications (reduced cost) to meet local needs according to local market research

12 th Medium-Term Management Plan April 2014 to March 2017

12 th Medium-Term Management Plan (April 2014 to March 2017) Establishment of position as a global company Net sales 500 billion Operating income 45 billion Intensified efforts Honda s global growth partner 2014-2017 Expand sales to customers other than Honda Four priority measures Bolster QCDDM competitiveness Construct an infrastructure of people capable of competing worldwide Conduct CSR activities 20

12 th Medium-Term Management Plan (April 2014 to March 2017) 2020 World leader in component competitiveness Attractive products that exceed customer expectations New product development Creation of unprecedented value Innovative Production engineering Creation of technologies enabling low-cost manufacturing dominance Investment of management resources (people, goods, money and information) 21

12 th Medium-Term Management Plan (April 2014 to March 2017) 2020 World leader in component competitiveness Component strategies Functional cooperation Frames Devices Trim covers New product development Creation of innovative production engineering Establishment of optimum process flow Door trims Regional characteristics Japan The Americas China Asia and Europe Development Purchasing Sales Production Administration Planning & strategy formulation New technologies & new products Production engineering efficiency & quality Global procurement HR development & finances Pursue component strategies at a global level 22

12 th Medium-Term Management Plan (April 2014 to March 2017) Expand sales to customers other than Honda Global cooperation structure Asia THAILAND China Europe DEUTSCHLAND Appointing personnel responsible for sales to customers other than Honda in each region Establishing regional development structure The Americas Japan Director in charge of new business development Development and Engineering Division Sales Division Corporate Purchasing Division Appointing personnel in charge of sales to customers other than Honda in each functional division Manufacturing Division Corporate Quality Assurance Division Strengthen structure for each region/function and rigorously conduct regional development and sales activities through global cooperation 23

Outline of Consolidated Forecasts for FY2015

25 Outline of Consolidated Forecasts for FY2015 Assumptions for the consolidated forecasts (predictions) Japan The Americas Increase in production of seats for light automobiles (new models) despite a slowdown in demand due to changes in the tax system Reduction of expenses Decrease in order volume (decrease in high value added models) as compared to the previous fiscal year's strong sales owing to the economic recovery Increase in expenses, mainly due to the launch of a new factory China Asia and Europe Increase in production of locally developed automobiles in the middle class Increase in labor costs Decrease in production due to the abolition of tax privileges and political instability in Thailand Ordered model makeup focusing on low cost automobiles

26 Outline of Earnings Forecasts for FY2015 [Results compared to FY2013] (Unit: Million yen) Consolidated FY2013 Sales ratio FY2014 Forecast Sales ratio Difference Year-on-year Net sales 457,053 100.0% 438,000 100.0% -19,053-4.2% Operating income 39,133 8.6% 37,500 8.6% -1,633-4.2% Ordinary income 42,937 9.4% 40,000 9.1% -2,937-6.8% Net income 23,900 5.2% 22,700 5.2% -1,200-5.0% Cash dividends per share 54 ( 60) 6 11.1% End of 1 st half 24 ( 30) 6 25.0% ( 注 ) 1 株当たり配当の ( ) は予定です End of year 30 ( 30) 0 0.0% * Cash dividends per share in brackets are based on projected figures.

Outline Michio Inoue President - Business Overview and Results Outline for FY2014-12 th Medium-Term Management Plan (April 2014 to March 2017) - Outline of Consolidated Forecasts for FY2015 Detail Kazuhiko Hikida Managing Director & Executive General Manager of the Corporate Business Administration Division -Consolidated Results for FY2014 -Consolidated Earnings Forecasts for FY2015

Consolidated Results for FY2014

Outline of Consolidated Results for FY2014 [Results compared to FY2013 / Results compared forecasts (Oct. 29)] (Unit: Million yen) FY2013 (Actual) Revised forecasts (Oct. 29) FY2014 Actual results Year-on-year Change from forecasts Net sales 359,331 441,000 457,053 27.2% 3.6% Operating income 24,219 34,500 39,133 61.6% 13.4% Ordinary income 27,209 37,000 42,937 57.8% 16.0% Net income 15,741 21,000 23,900 51.8% 13.8% Capital investment 11,377 20,500 19,960 75.4% -2.6% Depreciation 7,332 8,400 8,628 17.7% 2.7% R&D expenses 11,221 10,690 11,635 3.7% 8.8% Exchange rates USD CNY Full year average 83.09 Full year average 12.64 Full year average 96.93 Full year average 15.60 Full year average 100.21 Full year average 15.89 Cash dividends per share 34 ( 48) ( 54) * Cash dividends per share in brackets are based on projected figures <<Year-on-year>> [Net sales] - Increase in revenue due to exchange rate impacts - Increase in revenue with increased order volumes mainly in the Americas and China [Operating income/ordinary income/net income] - Increase in income due to the increase in revenue and cost cutting [Capital investments] - Restructuring in Japan and construction of new plants in Thailand and Indonesia <<Compared to forecasts (Oct. 29)>> [Net sales] - Increase in revenue due to exchange rate impacts - Increase in revenue with increased order volumes from major customers [Operating income/ordinary income/net income] - Increase in income given the effect of a weak yen - Increase in income due to cost cutting, etc. 29

Net Sales According to Business Segment [Results compared to FY2013] 30 Revenue rose in all businesses due to an increase in ordered models Other 1.0% Motorcycles 1.9% Automobiles 97.1% 359,331 6,800 3, 527 6,800 349,003 +1,263 (Up 35.8%) +55 (Up 0.8%) +96,403 (Up 27.6%) 457,053 4, 791 6,855 445,406 2013 FY2013 年 3 月期 2014 FY2014 年 3 月期 (Unit: Million yen) Other 1.0% Motorcycles 1.5% Automobiles 97.5%

Net Sales According to Product; Automobile Segment [Results compared to FY2013] 31 Revenue increased, particularly in seats and doors 445,406 (Unit: Million yen) Other 3.4% Roofs 0.5% Doors 7.7 % Seats 88.4 % 349,003 1,791 11,877 1,791 26,858 308,476 +1,499 (Up 12.6%) -1,154 (Down 64.4%) +8,386 (Up 31.2%) +87,672 (Up 28.4%) 13,376 636 35,244 396,148 Other 3.0% Roofs 0.1% Doors 7.9% Seats 89.0% FY2013 FY2014 2013 年 3 月期 2014 年 3 月期

32 Results According to Segment (Net Sales) Japan The Americas Year-on-year +11,033(Up 11.8%) Oct. 29 forecast +2,246(Up 2.2%) 214,628 199,210 Year-on-year + 42,565(Up 24.7%) Oct. 29 forecast +15,418(Up 7.7%) ( Million yen) 93,862 FY2013 Actual 102,650 104,895 FY2014 Oct. 29 Actual forecast Reasons for year-on-year rise/fall Increase in revenue due to increased order volumes from major customers Increase in revenue due to increase in royalties Reasons for rise/fall from Oct. 29 forecast Increase in revenue due to difference in model makeup ( Million yen) 172,063 FY2013 Actual FY2014 Oct. 29 forecast Actual Reasons for year-on-year rise/fall Increase in revenue due to increased order volumes from major customers Increase in revenue due to exchange rate impacts Reasons for rise/fall from Oct. 29 forecast Increase in revenue due to increased order volumes from major customers Increase in revenue due to exchange rate impacts Exchange rate impact Year-on-year Oct. 29 forecasts +35,624 million yen + 6,394 million yen China Asia and Europe 104,063 97,870 Year-on-year + 32,151(Up 44.7%) Oct. 29 forecast +6,193(Up 6.3%) Reasons for year-on-year rise/fall Increase in revenue due to increased order volumes from major customers Increase in revenue due to exchange rate impacts Year-on-year +17,603(Up 35.1%) Oct. 29 forecast - 39(Down 0.1%) Reasons for year-on-year rise/fall Increase in revenue due to increased order volumes from major customers Increase in revenue due to exchange rate impacts (Million yen) 71,911 Reasons for rise/fall from Oct. 29 forecast 67,850 Increase in revenue due to exchange rate impacts 50,207 Increase in revenue due to increased order volumes from major customers FY2013 Actual FY2014 Oct. 29 Actual forecast Exchange rate impact Year-on-year +22,256 million yen Oct. 29 forecasts + 2,213 million yen (Million yen) FY2013 Actual 67,811 FY2014 Oct. 29 Actual forecast Reasons for rise/fall from Oct. 29 forecast Exchange rate impact Year-on-year +10,752million yen Oct. 29 forecasts + 14 million yen

33 Results According to Segment (Operating Income) Japan The Americas 7,080 6,893 Year-on-year +1,570(Up 29.5%) Oct. 29 forecast -186(Down 2.6%) Reasons for year-on-year rise/fall Increase in income due to a rise in revenue Increase in income due to a rise in royalties 10,212 12,240 16,334 Year-on-year +6,122(Up 60.0%) Oct. 29 forecast +4,094(Up 33.5%) Reasons for year-on-year rise/fall Increase in income due to a rise in revenue Increase in income due to exchange rate impacts (Million yen) 5,323 5.7% 6.9% 6.6 % Operating income margin FY2013 Actual FY2014 Oct. 29 Actual forecast Reasons for rise/fall from Oct. 29 forecast Decrease in income as a result of increased costs (Million yen) 5.9% 6.1% FY2013 Actual 7.6 % Operating income margin FY2014 Oct. 29 forecast Actual Reasons for rise/fall from Oct. 29 forecast Increase in income due to a rise in revenue Increase in income reflecting cost cutting Exchange rate impact Year-on-year +2,507 million yen Oct. 29 forecasts + 361 million yen China Asia and Europe 12,520 13,970 Year-on-year +5,780(Up 70.6%) Oct. 29 forecast +1,450(Up 11.6%) Year-on-year +3,115(Up 63.9%) Oct. 29 forecast +244(Up 3.2%) 8,190 Reasons for year-on-year rise/fall Increase in income due to a rise in revenue Increase in income due to exchange rate impacts 7,750 7,994 Reasons for year-on-year rise/fall Increase in income due to a rise in revenue Increase in income due to exchange rate impacts (Million yen) Reasons for rise/fall from Oct. 29 forecast Increase in income due to a rise in revenue Exchange rate impact Year-on-year +3,068 million yen Oct. 29 forecasts + 319 million yen (Million yen) 4,878 11.4% 12.8% 13.5 % 11.4% 11.8 % 9.7% FY2013 Actual Operating income margin FY2014 Oct. 29 Actual forecast FY2013 Actual Operating income margin FY2014 Oct. 29 Actual forecast Reasons for rise/fall from Oct. 29 forecast Increase in income reflecting cost cutting Exchange rate impact Year-on-year + 1,104 million yen Oct. 29 forecasts -2 million yen

Reasons for Increase/Decrease in Ordinary Income [Results compared to FY2013] 34 Ordinary income increased, reflecting increased order volumes from major customers, exchange rate impacts, and cost reductions Fluctuating sales & changes to model makeup 7,706 14,913(Up 61.6%) Exchange rates 6,680 Reduced costs 2,355 Fluctuating material costs 408 Increased SG&A expenses -2,238 39,133 (Unit: Million yen) 24,219 6.7% Operating income margin 8.6% Operating income margin FY2013 Actual FY2014 Actual 2012 年 3 月期 2012 年 3 月期

Reasons for Increase/Decrease in Ordinary Income [Results compared to forecasts (Oct 29)] 35 Ordinary income rose, primarily reflecting increased order volumes from major customers and exchange rate effects. 34,500 Fluctuating sales & changes to model makeup 2,984 4,633(Up13.4%) Exchange rates 678 Fluctuating material costs 170 Reduced costs 439 Increased SG&A expenses 362 (Unit: Million yen) 39,133 24,219 6.7% 7.8% Operating income margin 8.6% Operating income margin 1900/1/1 FY2012 FY2013 1900/1/2 1900/1/3 1900/1/4 1900/1/5 1900/1/6 1900/1/7 1900/1/8 FY2014 Actual Forecasts Oct. 29 Actual

Quarterly Results Net sales 16,945 (Up 18.8%) 20,057 (Up 22.5%) 106,862 109,176 28,158 (Up 31.8%) 32,562 (Up 35.5%) 116,741 124,275 Operating income 4,780 (Up 90.5%) 4,710 (Up 82.5%) 2,435 (Up 34.2%) 10,423 10,063 2,966 (Up 48.7%) 9,565 9,060 91,713 89,916 89,118 88,582 5,712 5,283 7,129 4,420 6,094 4,108 5,151 5,518 5,331 1,481 (Million yen) (Million yen) 613 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 第 1 四半期 1Q 第 2 四半期 2Q 第 3 四半期 3Q 第 4 四半期 4Q 第 1 四半期 1Q 第 2 四半期 2Q 第 3 四半期 3Q 第 4 四半期 4Q FY2013 FY2014 FY2013 FY2014 36

Consolidated Earnings Forecasts for FY2015

38 Outline of Consolidated Earnings Forecasts for FY2014 [Forecasts compared to results for FY2013] FY2014 (Actual) Sales ratio FY2015 (Forecasts) Sales ratio Difference (Unit: Million yen) Change Net sales 457,053 100.0% 438,000 100.0% -19,053-4.2% Operating income 39,133 8.6% 37,500 8.6% -1,633-4.2% Ordinary income 42,937 9.4% 40,000 9.1% -2,937-6.8% Net income 23,900 5.2% 22,700 5.2% -1,200-5.0% Capital investment 19,960 20,000 40 0.2% Depreciation 8,628 9,600 972 11.3% R&D expenses 11,635 13,400 1,765 15.2% Exchange rates (full year averages) USD: 100.21 CNY: 15.89 USD: 100.0 CNY: 16.1 [Net Sales] - Decrease in revenue with decreased order volumes mainly in Thailand and North America [Operating income/ordinary income/net income] - Decrease in income due to a decrease in revenue [Main capital investments] - Restructuring in Japan and decrease in investment in new factory in Asia, etc. - Increase in investment in the Americas and China 1st half (Actual) 2nd half (Actual) 1st half(forecasts) 2nd half(forecasts) Net sales 216,037 241,016 213,000 225,000 Operating income 20,485 18,647 16,500 21,000 Ordinary income 21,809 21,128 17,800 22,200 Net income 12,738 11,162 9,900 12,800

39 Forecasts According to Segment (Net Sales) Japan The Americas Year-on-year -3,575(Down 3.4%) Year-on-year -16, 668(Down7.8%) 104,895 101,320 Reasons for year-on-year rise/fall Increase in revenue with higher order volumes from major customers Decrease I revenue reflecting decline in sales of components supplied overseas 214,628 197,960 Reasons for year-on-year rise/fall Decrease in revenue with lower order volumes from major customers (Million yen) FY2014 FY2015 2013 年 3 月期 2014 年 3 月期 Actual Forecasts 見通し (Million yen) FY2014 Actual 実績 FY2015 Forecasts 見通し 2013 年 3 月期 2014 年 3 月期 Exchange rate impact -32 million yen China Asia and Europe Year-on-year +3,286 (Up 3.2%) Year-on-year -5,381(Down 7.9%) 104,063 107,350 Reasons for year-on-year rise/fall Increase in revenue with higher order volumes from major customers Decrease in revenue reflecting exchange rate impacts Decrease in revenue due to a change in the model makeup 67,811 62,430 Reasons for year-on-year rise/fall Decrease in revenue due to a change in the model makeup Decrease in revenue reflecting exchange rate impacts (Million yen) FY2014 FY2015 2013 年 3 月期 2014 年 3 月期 Actual Forecasts 実績見通し Exchange rate impact +820 million yen (Million yen) FY2014 FY2015 2013 年 3 月期 2043 年 3 月期 Actual 実績 Forecasts 見通し Exchange rate impact - 924 million yen

40 Forecasts According to Segment (Operating Income) Japan The Americas Year-on-year +2,566 (Up 37.2%) 16,334 Year-on-year -2,334(Down14.3%) 6,893 9,460 Reasons for year-on-year rise/fall Increase in income due to higher volumes Increase in income due to cost cutting 14,000 Reasons for year-on-year rise/fall Decrease in income due to a decrease in revenue Increase in income due to cost cutting ( Million yen) (million yen) 6.6% 9.3 % 7.6% 7.1 % Operating income Operating income margin margin FY2014 Actual China 13,970 14,480 Year-on-year +509 (Up 3.6%) Reasons for year-on-year rise/fall Increase in income due to an increase in revenue Increase in income attributable to exchange rate impacts Decrease in income due to a change in model makeup (Million yen) (million yen) Asia and Europe 7,994 6,160 13.4% 13.5 % 11.8% 9.9% Operating income Operating income margin Exchange rate impact + 107 million yen margin FY2014 Actual FY2015 Forecasts FY2015 Forecasts FY2014 Actual FY2014 Actual FY2015 Forecasts FY2015 Forecasts 2012 年 3 月期 2013 年 3 月期 Exchange rate impact +1 million yen Year-on-year -1,834 (Down 22.9%) Reasons for year-on-year rise/fall Decrease in income due to a decrease in revenue Decrease in income due to a change in model makeup Exchange rate impact -143 million yen

41 Reasons for Increase/Decrease in Ordinary Income [Forecasts compared to results for FY2014] Decrease in income due to decreased order volumes from major customers and change in model makeup -1,633(Down 4.2%) (Unit: Million yen) 39,133 Fluctuating sales & changes to model makeup 5,331 Fluctuating material costs 703 Reduced costs 3,700 Increased SG&A expenses 735 Exchange rates 34 37,500 8.6% 8.6% Operating income margin Operating income margin FY2014 Actual FY2015 Forecasts 2014 年 3 月期 2015. 年 3 月期

42 Capital Investment and Depreciation Capital investments are expected to increase in FY2015, reflecting the construction of a new interior plant in the Saitama Plant and new plants in Thailand, Mexico, Indonesia and other locations. FY2013 Actual FY2014 Actual FY2015 Forecasts Capital investment (Unit: Million yen) Japan 5,082 5,380 4,250 Americas 6,698 8,300 Total 19,960 20,000 11,377 2,857 FY2013 FY2014 FY2015 FY2013 FY2014 FY2015 FY2013 FY2014 FY2015 China Asia and Europe Depreciation (Unit: Million yen) 7,227 Total 2,600 2,779 4,850 7,332 8,628 9,600 659 654 FY2013 FY2014 FY2015 FY2013 FY2014 FY2015 FY2013 FY2014 FY2015

Forward-looking statements and earnings forecasts contained in this presentation represent TS TECH s assumptions based on information currently available and are subject to a degree of risk and uncertainty. Therefore, please bear in mind that actual results may vary significantly from the forward-looking statements contained in this presentation due to a range of variable factors. IR inquiries TS TECH Co., Ltd. Public Relations Section. Administration Department Phone: 048 462 1136