Comparative Consolidated Balance Sheets (Summary)

(Millions of yen)

FY2013
As of March 31,
2013		 FY2014
As of March 31,
2014
ASSETS
Current assets 10,292 11,770
Fixed assets 8,177 8,469
Tangible fixed assets 6,932 7,232
Non-Tangible Fixed Assets 204 191
Investments and others assets 1,040 1,045
Total assets 18,469 20,240
LIABILITIES
Current liabilities 10,437 8,892
Fixed Liabilities 3,960 6,606
Total liabilities 14,397 15,499
NET ASSETS
Shareholders' equity 4,934 5,571
Common stock 1,000 1,000
Capital surplus 256 256
Retained earnings 3,682 4,323
Treasury stock -4 -8
Total accumulated other comprehensive income -878 -843
Valuation gain (loss) on other securities 21 58
Foreign exchange adjustment -899 -353
Warrants 16 12
Total net assets 4,072 4,741
Total liabilities and net assets 18,469 20,240

Total assets at the end of FY2014 totaled ¥20,240 million, rising ¥1,770 million from the end of the previous fiscal year. Key factors in this development are as follows.

Assets
Assets at fiscal year-end totaled ¥20,240 million, increasing ¥1,770 million from the end of the previous fiscal year. Cash and time deposits increased, and trade notes and accounts receivable rose due to an increase in net sales. Thus, total amount of current assets increased ¥1,478 million. Acquisition of machinery bolstered tangible fixed assets by ¥300 million. The current ratio at fiscal year-end was 132.4%, improving (increasing) 33.8 points from the end of the previous fiscal year.
*Current ratio
Current ratio is an index of a company's ability to make short-term payments (due within one year). It is a key measure of the soundness of a company’s financial position. (Current ratio = current assets ÷ current liabilities)

Liabilities
Liabilities totaled ¥15,449 million at fiscal year-end, increasing ¥1,102 million against the end of the previous fiscal year. While current liabilities declined ¥1,545 million, long-term liabilities grew ¥2,646 million. This result reflected the conversion of some short-term borrowings to long-term borrowings and an increase in liabilities for retirement benefits.

Net Assets
Total net assets at the end of the fiscal year under review reached ¥4,741 million, marking a ¥668 million increase from the end of the previous fiscal year. With the appropriation of net income, retained earnings grew by ¥640 million. The yen’s depreciation engendered a ¥545 million decrease in negative balance in the accounting of foreign currency adjustment, but accumulated adjustment for retirement benefits declined ¥548 million. This figure was the result of changes to accounts processing resulting from application of new accounting standard for retirement benefits.
The equity ratio at fiscal year-end stood at 23.4%, an increase of 1.4 points compared with the end of the previous fiscal year.

Comparative Consolidated Profit and Loss Statements (Summary)

(Millions of yen)

FY2013
As of March 31, 2013		 FY2014
As of March 31, 2014
Net sales 23,551 27,100
Cost of sales 18,752 21,260
Gross profit 4,798 5,840
Selling, general and administrative expenses 4,371 5,020
Operating income 426 820
Non-operating revenues 429 334
Non-operating expenses 314 333
Ordinary income 542 820
Extra ordinary gain 191 36
Extra ordinary loss 85 48
Net Income before Income Taxes 648 808
Corporate, Inhabitant and Enterprise Taxes 146 152
Corporate Tax Adjustments 23 -26
Net income 478 682

Net Sales
Domestic net sales declined, restrained by offshoring of customer production and contraction in the Company’s hinge operations. However, overseas net sales advanced under the influence of a weaker yen. Net sales increased 15.1% over the previous fiscal year to ¥27,100 million.

Operating Income
The rise in net sales and a decrease in cost pushed operating income 92.1% higher than the figure for the previous fiscal year, to ¥820 million. The ratio of operating income to net sales was 3.0%, 1.2 points higher than in the previous fiscal year

Non-operating Income
Non-operating income decreased ¥95 million due to a decline in foreign exchange gains from the previous fiscal year.

Ordinary Income
Ordinary income swelled 51.3% from the previous fiscal year.

Extraordinary Income
Insurance income declined significantly due to flood damage at plants in Thailand. Extraordinary income declined ¥154 million from the previous fiscal year.

Net Income
Net income surged 42.8% over the previous fiscal year.

Comparative Consolidated Statements of Cash Flows (Summary)

(Millions of yen)

FY2013
As of March 31, 2013		 FY2014
As of March 31, 2014
Cash flows from operating activities 1,857 1,835
Cash flows from investing activities -1,275 -1,045
Cash flows from financing activities -1,002 -546
Effect of exchange rate changes on cash and cash equivalents 248 139
Net increase (decrease) in cash and cash equivalents -171 382
Cash and cash equivalents at the beginning of year 2,534 2,362
Cash and cash equivalents at the end of quarter 2,362 2,745

Cash Flow
Cash flows from operating activities increased ¥1,835 million. Principal factors included an increase in income or loss before income taxes and minority interests of ¥159 million and withholding of funds due to depreciation and amortization.
Cash flows from investing activities retreated ¥1,045 million, with key factors including capital investments in Japan and in the newly built Changzhou Plant in China.
Cash flows from financing activities eased ¥546 million. A key factor was the repayment of interest-bearing debt. As a result of the above, the Company’s balance of cash and cash equivalents at the end of the fiscal year amounted to \2,745 million, a ¥382 million increase from the previous fiscal year.