Growing Globally - MITSUBA

Fiscal Year Ended March 31, 2015

Printed in Japan

MITSUBA Corporation

MITSUBA Corporation1-2681 Hirosawa-cho, Kiryu-shi, Gunma 376-8555, Japan

TEL. +81 (277) 52-0111 (pilot number) / FAX. +81 (277) 52-5160

Contents

Profile ............................................C2Outline of the Company ................C2Six-Year Summary............................ 1Corporate History ............................ 1Message from the Management ...... 2Review of Operations....................... 4Financial Section .............................. 6

http://www.mitsuba.co.jp/english/

"Growing Globally"

0613105_MITSUBA_AR_2015(E)_Cover.indd 1 2015/06/12 10:41:58

Independent Auditor’s Report

To the Shareholders and the Board of Directors ofMITSUBA Corporation

We have audited the accompanying consolidated fi nancial statements of MITSUBA Corporation and its subsidiaries, which comprise the consolidated balance sheet as of March 31, 2015, and the consolidated statement of comprehensive income, statement of changes in net assets and statement of cash fl ows for the year then ended, and a summary of signifi cant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidated fi nancial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated fi nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these consolidated fi nancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in Japan. Th ose standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated fi nancial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated fi nancial statements. Th e procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the consolidated fi nancial statements in order to design audit procedures that arc appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated fi nancial statements.We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the consolidated fi nancial statements present fairly, in all material respects, the fi nancial position of MITSUBA Corporation and its subsidiaries as of March 31, 2015, and their fi nancial performance and cash fl ows for the year then ended in accordance with accounting principles generally accepted in Japan.

Th e accompanying consolidated fi nancial statements as of and for the year then ended March 31, 2015 have been translated into U.S. Dollars solely for the convenience of the reader. We have reviewed the translation and, in our opinion, the fi nancial statements expressed in Yen have been translated into U.S. Dollars on the basis set forth in Note 1 to the consolidated fi nancial statements.

June 19, 2015Tokyo, Japan

17

Shares Issued :150,000,000 sharesOutstanding :45,581,809 sharesNumber of Shareholders :3,645Number of Employees :3,982(As of March 31, 2015)

Chairman of the Board and Chief Executive Offi cerNoboru HinoRepresentative Director, PresidentYuichi NagaseRepresentative DirectorYoshikazu TakahashiRepresentative DirectorKenichi MitaDirector, Executive Adviser Tsuneo AkutoDirectorKatsuo TakaharaDirectorMitsukazu KudoAudit & Supervisory Board MemberKoji KobayashiAudit & Supervisory Board MemberTeruhide MitsuhashiAudit & Supervisory Board Member (External)Noritaka TsukagoshiAudit & Supervisory Board Member (External)Akira Fujiwara

Outline of the Company

Head Offi ce :1-2681 Hirosawa-cho, Kiryu-shi, Gunma 376-8555, JapanTel 81-277-51-0111Fax 81-277-52-5160Established :March 8, 1946Paid-in Capital :¥9,885 millionStock Listed :Tokyo Stock Exchange First Section

Mitsuba Corporation is one of the foremost manufacturers of automotive electronic components.With the transportation equipment-related operations regarded as our core business, we will consolidate our group strength and eff ectively use our business resources in order to promote global growth and improved profi tability.Th e 10th Mid-term Management Plan has entered its second year and we are further expanding our brand by developing appealing products that meet customer needs, strengthening our production technology for those products, and engaging in proactive proposal-based marketing. Also, while responding to the movement of increased domestic production of automobile manufacturers in Japan, we are

investing mainly in Mexico, India, and Southeast Asia where continued growth is expected to build an optimal global production and supply system. In addition, we will strengthen our global quality assurance system to increase the added value and achieve sustainable profi tability of the entire group.Mitsuba will fulfi ll its corporate responsibilities towards the society and develop into a promising company accepted by stakeholders worldwide. Th rough such eff orts, Mitsuba will continue to pursue the realization of its corporate philosophy: “To provide pleasure and safety to the people of the world.”

Profi le

Directors, Auditors Offi cersPresident, Chief Operating Offi cerYuichi NagaseExecutive Vice President, Executive Offi cerYoshimasa KimuraSenior Managing Offi cerYoshikazu TakahashiSenior Managing Offi cerKenichi MitaManaging Offi cerHiroyuki OtakiManaging Offi cerMasayuki OyamaManaging Offi cerTakashi NaraManaging Offi cerShigeo SekitaManaging Offi cerTakumi TadaManaging Offi cerKatsuyoshi KitadaOperating Offi cerShingo NishikawaOperating Offi cerTokuyu TanahashiOperating Offi cerHisashi OgataOperating Offi cerNobuyuki TakeOperating Offi cerHideo Higeta

Operating Offi cerMasayoshi ShiratoOperating Offi cerMasanori ShojiOperating Offi cerYutaka NozueOperating Offi cerKunihiko AraiOperating Offi cerMasamichi MogiOperating Offi cerKeiji KiuchiOperating Offi cerHideyuki MinamiOperating Offi cerShigeru TakeiOperating Offi cerKunio NagaiOperating Offi cerJun AbeOperating Offi cerRyu SaitoOperating Offi cerKoji MizunoOperating Offi cerHaruki InamuraOperating Offi cerHideo Imai(As of June 19, 2015)


1

History

1946 Mitsuba Electric Mfg. Co., Ltd. was founded in Kiryu, Gunma Prefecture. Production and sale of generator lamps for bicycles began.

1951 Production and sale of auto horns began as the fi rst auto related business.

1956 Production and sale of wiper motors began.

1960 Production and sale of starters for small motorcycles began.

1970 Ryomo Computing Center Co., Ltd. was founded. (Renamed to Ryomo Systems Co., Ltd. in 1982)

1977 Initial public offering on the Tokyo Stock Exchange.

1986 American Mitsuba Corporation was founded in Illinois, U.S.A.

1988 Mitsuba shares were listed on the Second Section of the Tokyo Stock Exchange.

1989 Listing of Mitsuba shares was changed to the First Section of the Tokyo Stock Exchange.

1996 Business name was changed to Mitsuba Corporation.

1997 Mitsuba announced the New Mitsuba Environmental Declaration and Guidelines for Action.

2006 MITSUBA WAY was established.

2007 The Jidosha Denki Kogyo Co., Ltd. (Jideco) merged with Mitsuba.

Financial Section Six-Year SummaryMITSUBA Corporation and its Consolidated SubsidiariesEvery year starts in April of the previous year and ends in March.e.g.) 2015: April 2014 – March 2015

Yen (millions), except for per share amounts2010 2011 2012 2013 2014 2015

Net sales ................................................................ ¥ 175,522 ¥ 208,162 ¥ 207,803 ¥ 225,605 ¥ 272,543 ¥ 306,030 Gross profi t ........................................................... 21,498 31,419 26,598 29,971 41,024 51,486 Operating income ............................................... 2,176 10,462 7,928 9,032 17,054 22,096 Income before income taxes and minority interests .... 1,579 6,779 3,979 10,318 10,037 19,044 Net income (loss) ................................................ (3,247) 3,655 2,917 6,473 7,028 11,434 Capital expenditures ........................................... 9,062 11,896 14,143 16,186 17,452 18,521 Total assets ........................................................... 178,897 169,282 194,165 207,534 258,186 315,910 Return on assets (%) ........................................... (1.8) 2.1 1.6 3.2 3.0 4.0 Shareholders’ equity ............................................ 32,859 33,268 33,919 44,307 56,657 79,344 Return on equity (%) .......................................... (9.9) 11.1 8.7 16.6 13.9 16.8 Shareholders’ equity ratio (%) ........................... 18.4 19.7 17.5 21.3 21.9 25.1 Per share(yen):Net income ................................. ¥ (71.93) ¥ 81.19 ¥ 65.12 ¥ 144.51 ¥ 156.99 ¥ 255.47Cash dividends applicable to period ................. ― 6.0 7.0 8.0 8.0 14.0 Interest coverage (times) .................................... 10.8 15.3 8.8 12.9 17.2 13.9 Expenses for R&D ............................................... 7,482 10,001 9,652 10,627 10,725 11,002 Ratio of SG&A to net sales (%) .......................... 11.0 10.1 9.0 9.3 8.8 9.6 Current ratio (%) ................................................. 100.0 101.3 103.1 96.2 131.9 143.8 Fixed ratio (%) ..................................................... 260.9 238.9 233.4 207.4 193.4 158.7Interest - bearing debt ........................................ 88,795 81,513 97,183 99,843 111,731 134,344Cash fl ows

Operating activity ............................................ 14,709 18,151 11,200 16,075 20,588 16,330 Investing activity .............................................. (8,230) (9,503) (14,866) (16,495) (15,343) (19,641)Financing activity ............................................ (3,430) (8,811) 14,006 (1,831) 3,395 17,316

0613105_MITSUBA_AR_2015(E)_Book.indd Sec1:1 2015/06/12 10:53:37

2

Message from the Management

Mitsuba Group upholds as our basic principle that management based on a business concept of “providing pleasure and peace of mind” to our customers for a sustainable corporate development allows us to meet the expectations of the society and our shareholders. We pursue business activities founded on the management policies below.

Noboru Hino,Chairman of the Board and Chief Executive Offi cer

Yuichi Nagase,President of the Board and Chief Operating Offi cer

Management Policy Our basic principle is to unify the direction of the group companies’ actions through sharing our corporate principles and having them permeate throughout the organization. Th rough our management and the improvement of the quality of our products and services, we aim to become a preferred corporate group and to enhance our corporate value via aggressive business development. With “technology” as the driving force in our business development, Mitsuba will continue to strive for market development and new values. We aspire to management where each and every Mitsuba employee can reach a higher level through becoming agents of corporate innovation, which brings out the best from both the people and the enterprise.

Management Strategies for the Medium-to-Long Term Th e future automobile industry will see sluggish automobile sales in Japan, but an increasing sales in emerging economies. To respond to the needs in emerging economies, automobile manufacturers and parts manufactures are expected to accelerate local production and local R&D. To secure the competitive advantage of our company in expanding businesses, we must immediately respond to the needs of customers, increase cooperation between our global network of group companies, and put more eff ort in developing products with high added value, reducing costs, and developing our human resources.

Corporate PhilosophyTogether with those who support it, Mitsuba will provide pleasure and peace of mind to the people of the world by creating technology in harmony with society and the environment.


3

Key Issues Th e global economy expects a moderate growth supported by the positive US economy. On the other hand, the automotive industry is experiencing concerns of slowing growth due to the economic slowdown in the large Chinese market and emerging countries. In such a business environment, we place activities related to transportation equipment-related operations as our core business. We will consolidate our group strengths and eff ectively use our business resources in order to promote global growth and improved profi tability.

Outlook for the Next Term For the outlook of the annual performance in the end of the term in March 2016, consumer spending recovers from the downturn due to the consumption tax hike and the Japanese economy is expected to moderately recover. Overseas, the US economy is expected to continue growing. However, with Europe’s prolonged debt, China’s economic slowdown, and concerns of slowing growth in emerging countries, the diffi cult situation is expected to continue for the surrounding environment. Th e 10th midterm management plan of the Th ree-Year Plan has entered its second year and we are further expanding our brand by developing appealing products that meet customer needs, strengthening our production technology for those products, and engaging in proactive proposal-based marketing. Also, while responding to the movement of increased domestic production of automobile manufacturers, we are investing mainly in Mexico, India, and Southeast Asia where continued growth is expected. We are working to build an optimal global production and supply system and strengthen our global quality assurance system to increase added value and achieve continuous profi tability for the entire group. We will continue our eff orts to become a trusted company that meets society’s expectations with continuous improvement of our corporate governance keeping to heart our philosophy of “To provide pleasure and safety to the people of the world”.

We hope to receive your continued support and encouragement in these endeavors.

Noboru HinoChairman of the Board and

Chief Executive Offi cer

Yuichi NagasePresident of the Board and

Chief Operating Offi cer


4

Review of Operations

Th e Mitsuba Group (Mitsuba and its affi liated companies) consists of Mitsuba Corporation, 48 subsidiary companies and 4 affi liated companies. Our primary lines of business are transportation equipment-related operations and information service operations, but we also cover development and sales of automobile parts, automotive components and accessories, and agency services for group companies and other companies.

Operating Results for term end March 2015Th e domestic economy in the current consolidated fi scal year saw the improvement of corporate profi ts and the employment environment continue due to government economic policies and monetary policies from the Bank of Japan. It also saw the continuing of the moderate economic recovery mainly on export-related enterprises. However, the economy is lacking strength brought on by weak consumer spending resulting from the consumption tax hike and the soaring prices of raw materials due to the rapid depreciation of the yen. Th e world economy continued to show recovery driven by the improving employment environment and consumer spending in the US. In emerging economies, the surrounding environment for our company remained unpredictable. Even in the BRICs countries, where growth has been continuing, the direction of economic movement of was inconsistent – while India continued growing, China’s economic growth rate lowered and Brazil’s infl ation rate remained high. Under these circumstances, the Japanese domestic automobile sales in 2014 was 5,297 thousand (6.9% decrease compared to the previous year), which is the fi rst time in 4 years (since 2010) that sales have been less than the previous year. Compared to last year’s performance, whose high level came from a rush of last-minute demand before the tax hike, automobile sales, particularly from January to March 2015, maintained a double-digit decrease due to reduced willingness to purchase post-consumption tax hike and a reactionary drop in demand. From a global perspective, the US continued to be in good shape with fi gures increasing to 16,522 thousand (5.9% increase compared to the previous year), exceeding 16,500 thousand for the fi rst time in 8 years (since 2006). Sales in Europe continued its good run from the start of the year and increased to 13,006 thousand (5.4% increase compared to the previous year), exceeding the previous year’s sales for the fi rst time in 7 years. In China, sales increased to 23,492 thousand (6.9% increase compared to the previous year), showing a slower growth from the previous year due to its economic slowdown but still being the country with the most automobile sales for the sixth consecutive year. Japanese domestic motorcycle sales and shipments were 391 thousand total (10.8% decrease compared to the previous year), falling below the previous year’s sales in all categories due to the reduced willingness to purchase post-consumption tax hike also experienced with automobiles. On the other hand, from a global perspective, the market continues to expand, particularly in emerging countries.

95.9 % Transportation equipment-related operations

Information service operations 3.3% Others 0.8%

(Consolidated Basis)

Sales by Business

34.4% Japan

27.4% The Americas

Europe 5.2%

China 16.3%

Asia 16.7%

(Consolidated Basis)

Sales by Geographic Region

Car accessories

Auto electrical products

Nursing care products

Motorcycle products

Front wipers

Power window motors

AC generators

Starter motors

ETC device for motorcycles

Electric power steering motors

Linear actuators

Linear actuator controls

Spriral horns


5

Under this circumstance, the consolidated sales of our group reached ¥306,030 million (12.3% increase compared to the previous year), with a consolidated operating profi t of ¥22,096 million (29.6% increase compared to the previous year) and a consolidated pretax profi t of ¥25,231 million (23.4% increase compared to the previous year) with foreign exchange gains, etc. Th e consolidated current term net profi t was ¥11,434 million (62.7 percent increase compared to the previous year) experiencing a revenue eff ect even though the allowance for warranty expenses in anticipation of problems with products and the allowance for indemnity loss were recorded as extraordinary losses.

By Business SegmentTransportation Equipment-related Operations SegmentWith the increased automobile production in the US and China, sales reached ¥294,256 million (12.4% increase compared to the previous year). In terms of earnings, operating profi t increased to ¥21,246 million (30.5% increase compared to the previous year), experiencing the eff ects from revenues and streamlined improvement.

Information Service Operations SegmentWe had been committed to gaining orders from public and private sectors, and improved our profi t structure. Sales reached ¥11,436 million (11.4% increase compared to the previous year) with an operating profi t of ¥560 million (5.0% increase compared to the previous year).

Other BusinessesSales reached ¥2,684 million (1.1% increase compared to the previous year) with an operating profi t of ¥271 million (18.7% increase compared to the previous year).

Breakdown by Geographic RegionJapanSales reached ¥105,264 million (2.2% increase from the corresponding period last year) with an operating profi t of ¥6,806 million (63.0% increase from the corresponding period last year).

Th e AmericasSales reached ¥84,001 million (14.4% increase from the corresponding period last year) with an operating profi t of ¥1,054 million (13.9% increase from the corresponding period last year).

EuropeSales reached ¥15,951 million (27.8% increase from the corresponding period last year) with an operating profi t of ¥929 million (430.9% increase from the corresponding period last year).

AsiaSales reached ¥51,055 million (12.8% increase from the corresponding period last year) with an operating profi t of ¥7,902 million (15.6% increase from the corresponding period last year).

ChinaSales reached ¥49,757 million (29.7% increase from the corresponding period last year) with an operating profi t of ¥6,111 million (31.0% increase from the corresponding period last year).

Europe(Millions of Yen) (Millions of Yen)

The Americas20142013 2015

73,454

56,550

84,001

Asia(Millions of Yen)

China(Millions of Yen)

2013 2015

9,102

2014

12,482

15,951

20142013 2015

45,256

33,562

51,055

20142013 2015

38,373

25,083

49,757

Overseas SalesOverseas sales refer to sales by the Company and its consolidated subsidiaries to countries and regions outside of Japan.


6 Th e accompanying notes are an integral part of these statements.

Consolidated Balance SheetsMITSUBA Corporation and its Consolidated SubsidiariesAs of March 31, 2014 and 2015

Yen(Millions)

U.S. Dollars(Th ousands)

As of March 31 As of March 31

ASSETS 2014 2015 2015Current assets:

Cash and deposits (Note 5) ........................................................................................................................................... ¥ 43,523 ¥ 60,501 $ 503,050Marketable securities (Notes 3 & 5) ............................................................................................................................ 505 200 1,663Trade receivables:

Accounts and notes (Note 13) ..................................................................................................................................... 45,679 53,309 443,249Less: Allowance for doubtful accounts ...................................................................................................................... (148) (141) (1,179)

Inventories (Note 4) ...................................................................................................................................................... 39,799 50,068 416,298Deferred tax assets (Note 9) ......................................................................................................................................... 3,439 4,849 40,320Others ............................................................................................................................................................................. 15,803 21,202 176,294

Total current assets .................................................................................................................................................. 148,602 189,990 1,579,697

Property, plant and equipment (Notes 7 & 10):Land ................................................................................................................................................................................ 6,739 6,890 57,290Buildings and structures ............................................................................................................................................... 58,897 60,897 506,343Machinery, equipment and others ............................................................................................................................... 164,888 178,357 1,482,973Construction in progress .............................................................................................................................................. 5,020 7,187 59,761Lease assets ..................................................................................................................................................................... 3,790 4,410 36,671

239,337 257,743 2,143,040 Less accumulated depreciation .................................................................................................................................... (171,077) (182,178) (1,514,743)

Net Property, plant and equipment ....................................................................................................................... 68,260 75,565 628,297

Investments and other assets:Investments in securities (Notes 3 & 6) ....................................................................................................................... 23,227 25,494 211,979Long-term loans ............................................................................................................................................................. 1,758 2,468 20,524Deferred tax assets (Note 9) ......................................................................................................................................... 1,572 1,455 12,101 Others ............................................................................................................................................................................. 14,818 20,968 174,348

Less: Allowance for doubtful accounts .................................................................................................................. (53) (32) (272)Total investments and other assets ........................................................................................................................ 41,323 50,354 418,681Total assets ............................................................................................................................................................... ¥ 258,186 ¥ 315,910 $ 2,626,676

Liabilities and Shareholders’ EquityCurrent liabilities:

Short-term borrowings (Note 7) .................................................................................................................................. ¥ 42,019 ¥ 44,176 $ 367,308 Current portion of long-term debt (Note 7) ............................................................................................................... 5,248 13,369 111,163 Trade payables:

Accounts and notes ...................................................................................................................................................... 28,231 30,832 256,364 Income taxes payable (Note 9) ..................................................................................................................................... 1,668 1,572 13,073 Reserve for employees’ bonuses ................................................................................................................................... 4,535 4,311 35,849 Others (Note 9) .............................................................................................................................................................. 30,943 37,894 315,082

Total current liabilities ............................................................................................................................................ 112,648 132,157 1,098,840

Long-term liabilities: Long-term debt (Note 7) ............................................................................................................................................... 60,918 72,529 603,055Accrued pension and severance costs (Note 12) ........................................................................................................ 1,009 1,283 10,670Others (Note 9) .............................................................................................................................................................. 15,598 16,483 137,050

Total long-term liabilities ....................................................................................................................................... 77,526 90,295 750,777Total liabilities .......................................................................................................................................................... ¥ 190,174 ¥ 222,453 $ 1,849,617

Contingent liabilities (Note 13):

Net assets (Note 8):Shareholders’ equityCommon stock

Authorized: 150,000,000 SharesOutstanding:

March 31, 2014 and 2015: 45,581,809 Shares ...................................................................................................... 9,885 9,885 82,192Capital surplus .................................................................................................................................................................... 15,719 15,719 130,703Retained earnings ............................................................................................................................................................... 28,888 39,843 331,286Treasury stock, at cost:

March 31, 2014: 821,307 Shares ............................................................................................................................ — — —March 31, 2015: 822,639 Shares ............................................................................................................................ (596) (599) (4,983)Total shareholders’ equity ....................................................................................................................................... 53,896 64,849 539,199

Accumulated other comprehensive income:Valuation diff erence on available-for-sale securities .......................................................................................... 2,869 4,449 36,999 Foreign currency translation adjustments ........................................................................................................... (602) 6,990 58,126Remeasurements of defi ned benefi t plans ............................................................................................................ 493 3,054 25,394Total accumulated other comprehensive income ............................................................................................... 2,760 14,495 120,520

Minority interests in consolidated subsidiaries .......................................................................................................... 11,354 14,112 117,338Total net assets ......................................................................................................................................................... 68,011 93,456 777,058Total liabilities and net asset .................................................................................................................................. ¥ 258,186 ¥ 315,910 $ 2,626,676


7Th e accompanying notes are an integral part of these statements.

Consolidated Statements of Comprehensive IncomeMITSUBA Corporation and its Consolidated SubsidiariesFor the years ended March 31, 2013, 2014 and 2015

Consolidated Statements of Income Yen(Millions)


Year ended March 31 Year ended March 312013 2014 2015 2015

Net sales (Note 14) ...................................................................................... ¥ 225,605 ¥ 272,543 ¥ 306,030 $ 2,544,531Cost of sales ................................................................................................. 195,633 231,518 254,544 2,116,442

Gross profi t .......................................................................................... 29,971 41,024 51,486 428,088Selling, general and administrative expenses ....................................... 20,938 23,969 29,390 244,368

Operating income (Note 14) ............................................................. 9,032 17,054 22,096 183,720Other income (expenses):

Interest and dividend income ................................................................ 579 740 863 7,176 Interest expenses ..................................................................................... (1,237) (1,154) (1,141) (9,489)Others, net ................................................................................................ 1,944 (6,603) (2,773) (23,058)

Income before income taxes and minority interests ........................... 10,318 10,037 19,044 158,349Income taxes (Note 9) ................................................................................ (2,657) (1,050) (5,312) (44,168)Income before minority interests ........................................................... 7,661 8,987 13,732 114,180Minority interests in subsidiaries ........................................................... (1,188) (1,959) (2,297) (19,104)

Net income ............................................................................................... ¥ 6,473 ¥ 7,028 ¥ 11,434 $ 95,076

Yen U.S. Dollars

2013 2014 2015 2015Per share of common stock:

Net income — Basic ............................................................................. ¥ 144.51 ¥ 156.99 ¥ 255.47 $ 2.12 — Diluted ........................................................................ — — — —Cash dividends, applicable to period ................................................... 8.00 8.00 14.00 0.12

Consolidated Statements of comprehensive income Yen(Millions)



Income before minority interests ............................................................ ¥ 7,661 ¥ 8,987 ¥ 13,732 $ 114,180Other comprehensive income

Valuation diff erence on available-for-sale securities .......................... 1,299 (2,344) 1,612 13,410Foreign currency translation adjustment ............................................. 3,284 7,544 8,105 67,396Remeasurements of defi ned benefi t plans, net of tax ......................... — — 2,806 23,335Share of the other comprehensive income of affi liates accounted for using equity method .................................................... 324 370 448 3,728 Comprehensive income .......................................................................... ¥ 12,570 ¥ 14,558 ¥ 26,706 $ 222,052

Comprehensive income attributable toOwners of the parent .............................................................................. 11,058 12,101 23,169 192,643Non-Controlling interests ...................................................................... 1,511 2,457 3,536 29,408



Consolidated Statements of Changes in Net AssetsMITSUBA Corporation and its Consolidated SubsidiariesFor the years ended March 31, 2013, 2014 and 2015

Yen(Millions)

Shareholders’ equity

Number of shares issued

Common stock

Capital surplus

Retained earnings

Treasury stock, at

cost

Total shareholders’

equityBalance at March 31, 2012 ............................................ 45,581,809 ¥ 9,885 ¥ 15,718 ¥ 16,253 ¥ (546) ¥ 41,310

Change of scope of consolidation ............................. (350) (350)Purchase of treasury stock ......................................... (7) (7)Disposal of treasury stock ......................................... (0) 1 1 Transfer to less on disposal of treasury stock ......... 0 (0)Net income ................................................................... 6,473 6,473 Cash dividends ............................................................ (313) (313)Net changes during the year ......................................

Balance at March 31, 2013 ............................................ 45,581,809 ¥ 9,885 ¥ 15,718 ¥ 22,061 ¥ (552) ¥ 47,113 Change of scope of consolidation ............................. 155 155 Purchase of treasury stock ......................................... (44) (44)Disposal of treasury stock .......................................... 0 0 1 Net income ................................................................... 7,028 7,028 Cash dividends ............................................................ (357) (357)Net changes during the year ......................................

Balance at March 31, 2014 ............................................ 45,581,809 ¥ 9,885 ¥ 15,719 ¥ 28,888 ¥ (596) ¥ 53,896 Cumulative eff ects of changes in accounting policies .... (166) (166)Change of scope of consolidation ............................. 45 45Purchase of treasury stock ......................................... (2) (2)Disposal of treasury stock ......................................... 0 0 0Net income ................................................................... 11,434 11,434Cash dividends ............................................................ (358) (358)Net changes during the year ......................................

Balance at March 31, 2015 ............................................ 45,581,809 ¥ 9,885 ¥ 15,719 ¥ 39,843 ¥ (599) ¥ 64,849

U.S.Dollars(Th ousands)

Shareholders’ equity

Number of shares issued

Common stock

Capital surplus

Retained earnings

Treasury stock, at

cost

Total shareholders’

equityBalance at March 31, 2014 ............................................ 45,581,809 $ 82,192 $ 130,703 $ 240,198 $ (4,961) $ 448,133

Cumulative eff ects of changes in accounting policies .... (1,384) (1,384)Change of scope of consolidation ............................. 374 374Purchase of treasury stock ........................................ (22) (22)Disposal of treasury stock ......................................... 0 0 0Net income ................................................................. 95,076 95,076Cash dividends ............................................................ (2,977) (2,977)Net changes during the year .....................................

Balance at March 31, 2015 ............................................ 45,581,809 $ 82,192 $ 130,703 $ 331,286 $ (4,983) $ 539,199


9Th e accompanying notes are an integral part of these statements.

Yen(Millions)

Accumulated other comprehensive incomeValuation

diff erence on available-for-sale securities

Foreign currency

translation adjustment

Remeasurements of defi ned

benefi t plans

Total accumulated

other comprehensive

income

Minority interests in

consolidated subsidiaries

Total net assets

Balance at March 31, 2012 ............................................ ¥ 3,996 ¥ (11,387) — ¥ (7,391) ¥ 7,257 ¥ 41,176 Change of scope of consolidation ............................. (350)Purchase of treasury stock ......................................... (7)Disposal of treasury stock ......................................... 1 Transfer to less on disposal of treasury stock .........Net income ................................................................... 6,473 Cash dividends ............................................................ (313)Net changes during the year ...................................... 1,251 3,334 — 4,585 1,012 5,597

Balance at March 31, 2013 ............................................ ¥ 5,247 ¥ (8,053) — ¥ (2,806) ¥ 8,269 ¥ 52,576 Change of scope of consolidation ............................. 155 Purchase of treasury stock ......................................... (44)Disposal of treasury stock .......................................... 1 Net income ................................................................... 7,028 Cash dividends ............................................................ (357)Net changes during the year ...................................... (2,377) 7,450 493 5,566 3,084 8,651

Balance at March 31, 2014 ............................................ ¥ 2,869 ¥ (602) ¥ 493 ¥ 2,760 ¥ 11,354 ¥ 68,011 Cumulative eff ects of changes in accounting policies .... (166)Change of scope of consolidation ............................. 45Purchase of treasury stock ......................................... (2)Disposal of treasury stock ......................................... 0Net income ................................................................... 11,434Cash dividends ............................................................ (358)Net changes during the year ...................................... 1,580 7,593 2,560 11,734 2,758 14,492

Balance at March 31, 2015 ............................................ ¥ 4,449 ¥ 6,990 ¥ 3,054 ¥ 14,495 ¥ 14,112 ¥ 93,456


Accumulated other comprehensive income

Valuation diff erence on available-for-sale securities

Foreign currency

translation adjustment

Remeasurements of defi ned

benefi t plans

Total accumulated

other comprehensive

income

Minority interests in

consolidated subsidiaries

Total net assets

Balance at March 31, 2014 ............................................ $ 23,860 $ (5,012) $ 4,105 $ 22,952 $ 94,406 $ 565,492Cumulative eff ects of changes in accounting policies .... (1,384)Change of scope of consolidation ............................. 374Purchase of treasury stock ........................................ (22)Disposal of treasury stock ......................................... 0Net income ................................................................. 95,076Cash dividends ............................................................ (2,977)Net changes during the year ..................................... 13,138 63,139 21,289 97,567 22,932 120,500

Balance at March 31, 2015 ............................................ $ 36,999 $ 58,126 $ 25,394 $ 120,520 $ 117,338 $ 777,058



Consolidated Statements of Cash FlowsMITSUBA Corporation and its Consolidated SubsidiariesFor the years ended March 31, 2013, 2014 and 2015

Yen(Millions)



Cash fl ows from operating activities: Net income ......................................................................................... ¥ 6,473 ¥ 7,028 ¥ 11,434 $ 95,076 Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization ................................................... 10,530 11,694 14,469 120,311 Loss on disposal of fi xed assets ................................................... 173 200 352 2,929Deferred income tax ..................................................................... (214) (4,514) (128) (1,069)Write-down of investment in securities ..................................... 13 — — —Decrease (Increase) in assets:

Trade receivables ...................................................................... 6,206 (1,127) (2,752) (22,887)Inventories ................................................................................. (2,180) (4,044) (6,558) (54,531)Other current assets ................................................................. 812 (1,246) (5,778) (48,047)

Increase (Decrease) in liabilities:Trade payables .......................................................................... (6,840) (90) (2,086) (17,347)Accrued expenses ..................................................................... (688) 3,040 (1,089) (9,055)Income taxes payable ............................................................... 43 897 (95) (796)Accrued pension and severance costs ................................... 30 108 201 1,671Other current liabilities ........................................................... 1,618 8,731 7,782 64,708

Others, net ..................................................................................... 98 (88) 579 4,820 Net cash provided by operating activities ......................... 16,075 20,588 16,330 135,782

Cash fl ows from investing activities:Payments for purchases of investment in securities ................ (529) (7,626) (485) (4,035)Proceeds from sales of investment in securities ....................... 13 6,643 221 1,840Decrease in marketable securities, net ....................................... 198 (2) 230 1,914 Payments for acquisition of property, plant and equipment ............ (15,236) (14,716) (16,345) (135,903)Proceeds from sales of property, plant and equipment ........... 816 1,210 486 4,045Others, net ..................................................................................... (1,757) (852) (3,749) (31,177)

Net cash used in investing activities .................................. (16,495) (15,343) (19,641) (163,315)Cash fl ows from fi nancing activities:

Increase (Decrease) in short-term loans, net ............................ 1,264 (12,142) 598 4,973 Proceeds from long-term debt .................................................... 9,969 39,151 25,500 212,023 Repayment of long-term debt ..................................................... (10,848) (20,859) (5,782) (48,076)Repayment of lease obligation .................................................... (1,463) (1,695) (1,746) (14,523)Repayment of bonds ..................................................................... (160) (160) (128) (1,064)Cash dividends paid ..................................................................... (724) (982) (1,216) (10,116)Others, net ..................................................................................... 131 85 91 764

Net cash provided by (used in) fi nancing activities ........ (1,831) 3,395 17,316 143,981 Eff ect of exchange rate changes on cash and cash equivalents .... 1,159 2,252 2,376 19,763 Net increase in cash and cash equivalents ....................................... (1,092) 10,892 16,382 136,212 Cash and cash equivalents at beginning of year ............................ 31,897 30,964 42,158 350,535Increase in cash and cash equivalents from newly consolidated subsidiary ............................................................ 159 301 574 4,777 Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation .................. — — — —Cash and cash equivalents at end of year (Note 5) ......................... ¥ 30,964 ¥ 42,158 ¥ 59,115 $ 491,525Supplemental data:

Cash paid during the year forIncome tax ..................................................................................... ¥ 2,878 ¥ 4,707 ¥ 5,650 $ 46,977 Interest ............................................................................................ 1,242 1,199 1,173 9,754


11

1. Basis of presenting fi nancial statementTh e accompanying consolidated fi nancial statements have been prepared from accounting records maintained by MITSUBA Corporation (the “Company”) and its consolidated subsidiaries in accordance with the provisions set forth in the Japanese Corporation Law and the Financial Instruments and Exchange Law and in conformity with accounting principles and practices generally accepted in Japan, which may diff er in some respects from accounting principles and practices generally accepted in countries and jurisdictions other than Japan. In order to facilitate the understanding of readers outside Japan, certain reclassifi cations are made to the consolidated fi nancial statements prepared for domestic reporting purposes. In addition, the notes in the consolidated fi nancial statements also include some information that is not required under accounting principles generally accepted in Japan but is presented herein as additional information. U.S. dollar amounts presented in the consolidated fi nancial statements are included solely for convenience. Th e rate of ¥120.27 to US$1.00, prevailing on March 31, 2015, has been used for translation into U.S. dollar amounts in the consolidated fi nancial statements.

2. Summary of signifi cant accounting policies(a) Principle of consolidationTh ere were 47 subsidiary companies in the company on March 31, 2014. Moreover, there were 48 subsidiary companies on March 31, 2015. Th e consolidated fi nancial statements included the accounts of the Company and its 28 and 30 signifi cant subsidiaries as of March 31, 2014 and 2015, respectively. Intercompany accounts and signifi cant intercompany transactions have been eliminated on consolidation. Th e investments in 20% - 50% owned affi liates, except for some of them, are accounted for by the equity method. Non-consolidated subsidiaries and a part of investments in affi liates are stated at cost because of their immateriality. Earnings of these companies are recorded in the Company’s books only to the extent that cash dividends are received. Th e diff erence between the cost of investments in consolidated subsidiaries and the equity in their net assets at dates of acquisition is amortized, on a straight-line basis, over fi ve years.

(b) Cash and cash equivalentsTh e Company and its consolidated subsidiaries adopt JICPA Accounting Committee Report No.8 “Practical Guidelines Accounting Standards for Preparing Consolidated Statements of Cash Flows.” Accordingly the Cash and cash equivalents include certifi cate deposits, bank deposits with a maturity of three months or less which can be withdrawn without any restriction, and highly liquid debt instruments with a maturity of three months or less when purchased.

(c) Marketable securities and investment in securitiesDebt and equity securities are classifi ed in one of the three categories: held-to-maturity, trading, or available-for-sale. Debt securities that are classifi ed as “held-to-maturity” securities are reported at amortized cost. Th e Company and its consolidated subsidiaries do not have any securities classifi ed as “trading.” Other debt and equity securities are classifi ed as “available-for-sale” securities and are reported at fair value at the closing date, with unrealized gains or losses net of deferred taxes, included in unrealized gains (losses) on securities in net assets section of the consolidated balance sheet. Realized gains and losses are determined on the moving average cost method and refl ected in income.

(d) InventoriesIn the Transportation Equipment-related Operations Segment, fi nished products, work-in-process and raw materials are mainly stated at cost determined by the average method, except foreign subsidiaries in which these are mainly valued at lower of cost or market determined by the average method. Supplies are mainly stated at cost determined by the last invoice method. In the Information Service Operations Segment, raw materials and work-in-process are mainly stated at cost determined by the job-order-cost method.

(e) Property, plant and equipmentProperty, plant and equipment are stated at cost. Depreciation is mainly computed by the declining-balance method at rates based on estimated useful lives of the respective assets. Signifi cant renewals and additions are capitalized at cost. Maintenance, repairs, minor renewals and betterments are charged to income as incurred.

(f) Lease assetsFinance lease other than those, which are deemed to transfer the ownership of the leased assets to lessee are accounted for by the method similar to that applicable to ordinary sale and purchase transactions. However, fi nance lease referred to above, and started earlier than March 31, 2008, are continuously accounted for in a similar manner with ordinary rental transaction. Depreciation expense for these leased assets is provided, based on the assumption of zero-scrap-value, using the straight-line-method.

(g) Income taxesTh e provision for income taxes is computed based on the pretax income included in the consolidated statements of income. Th e asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary diff erences between the carrying amounts and the tax bases of assets and liabilities.

(h)Retirement and pension planTh e reserve for employees’ retirement benefi ts is stated at the amount required to cover the liability as of the balance sheet date and is based on the Company’s estimate of its liability for retirement benefi ts and its pension fund assets as of the balance sheet date. Prior service cost is being amortized as incurred by the straight-line method over a period (mainly 10 years) which is shorter than the average remaining years of service of the participants in the plans. Actuarial gain or loss are being amortized in the year following the year in which the gain or loss is recognized by the straight-line method over a period (mainly 10 years) which is shorter than the average remaining years of service of the participants in the plans.

(i) Research and development costsResearch and development costs are charged to income as incurred.

Notes to Consolidated Financial StatementsMITSUBA Corporation and its Consolidated Subsidiaries


12

(j) Foreign currency translationAll asset and liability accounts of foreign subsidiaries and affi liates are translated into Japanese Yen at appropriate year-end current rates, and all income and expense accounts are translated at average rate for the year. Th e resulting translation adjustments are presented as “Foreign currency translation adjustments” in the accompanying consolidated fi nancial statements. Foreign currency receivables and payables are translated at appropriate year-end current rates and the resulting transaction gains or losses are taken into income currently.

(k) Per Share DataNet income per share of common stock has been computed based on the weighted-average number of shares outstanding during the fi scal year. Cash dividends per share shown for each fi scal year in the accompanying consolidated fi nancial statements are dividends declared as applicable to the respective fi scal years.

3. Marketable securities and investments in securitiesTh e cost and fair value of marketable securities and investments in securities as of March 31, 2015 are shown below:

Yen(millions)

U.S. Dollars(thousands)

2015 2015Debt securities – held-to-maturity:

Amount in balance sheet ......................................... — —Gross unrealized gains ............................................. — —Gross unrealized losses ............................................ — —Fair value .................................................................... — —

Debt and equity securities – available-for-sale:Cost ............................................................................. ¥ 11,129 $ 92,536Gross unrealized gains ............................................. 6,795 56,504Gross unrealized losses ............................................ (3) (32)Amount in balance sheet ......................................... ¥ 17,921 $ 149,008

Non-marketable securities are not included in the above cost and fair value:

Amount in balance sheet ...................................... ¥ 667 $ 5,552

4. InventoriesInventories at March 31, 2014 and 2015 comprise the following:

Yen(millions)


2014 2015 2015Merchandise and Finished products ......... ¥ 15,285 ¥ 20,071 $ 166,888Work-in-process .......................................... 3,423 4,152 34,523Materials and supplies ................................ 21,090 25,844 214,886

¥ 39,799 ¥ 50,068 $ 416,298

5. Cash and cash equivalentsCash and cash equivalents included in the consolidated statement of cash fl ows comprise the following balance sheet amounts at March 31, 2014 and 2015:

Yen(millions)


2014 2015 2015Cash and deposits ...................................... ¥ 43,523 ¥ 60,501 $ 503,050Marketable securities ................................ 505 200 1,663Deposits with a maturity of three months or more ....................................... (1,464) (1,486) (12,356)Securities exposed to risk of changes in value ....................................... (405) (100) (832)Cash and cash equivalents ........................ ¥ 42,158 ¥ 59,115 $ 491,525

6. Investment in non-consolidated subsidiaries and affi liatesInvestment in non-consolidated subsidiaries and affi liates are shown below:

Yen(millions)


2014 2015 2015

Investment in non-consolidated subsidiaries and affi liates ............................ ¥ 7,191 ¥ 7,105 $ 59,082

7. Long-term debtBonds at March 31, 2014 and 2015 are as follows:

Interest rate

Yen(millions)


Item Issued by 2014 2015 2015Unsecured Bonds:Due2015 Unsecured Bonds Momimo manufacturing 0.73 56 — —Due2016 Unsecured Bonds Momimo manufacturing 0.68 156 84 698

¥ 212 ¥ 84 $ 698

As of March 31, 2015, loans of ¥37,761 million ($313,976 thousand), including short-term borrowings debt of ¥18,117 million ($150,642 thousand), is secured by property, plant, equipment and investments in securities with a net value of ¥7,320 million ($60,865 thousand). As is customary in Japan, short-term and long-term bank loans are made under general agreements which provide that security and guarantees for future and present indebtedness will be given upon request of the bank, and that the bank shall have the right, as the obligations become due, or in the event of their default, to off set cash deposits against such obligations due to the bank.Th e aggregate annual maturities of long-term debt are as follows:


13

Years ending March 31Yen

(millions)U.S. Dollars(thousands)

2017 ................................................................................. ¥ 14,013 $ 116,5172018 ................................................................................. 11,426 95,0062019 ................................................................................. 17,856 148,4702020 and thereaft er ........................................................ 9,233 76,769

¥ 52,529 $ 436,763

8. Shareholders’ equityUnder the Japanese Corporation Law, the entire amount of the issue price of shares is required to be accounted for as capital, although a company may, by resolution of its board of directors, account for an amount not exceeding one-half of the issue price of the new shares as capital surplus. Th e Japanese Corporation Law provides that an amount equal to 10% of cash dividends shall be appropriated and set aside as a legal reserve until the total amount of legal reserve equals to 25% of common stock.

9. Income taxesTh e Company and its consolidated subsidiaries in Japan are subject to a number of taxes based on income, which in the aggregate resulted in eff ective tax rates of approximately 37.8% in 2014 and 35.4% in 2015. Details of income tax expense are as follows:

Yen(millions)


2014 2015 2015Income taxes: Current ................................................ ¥ 5,564 ¥ 5,440 $ 45,238 Deferred .............................................. (4,515) (128) (1,069)

¥ 1,050 ¥ 5,312 $ 44,168

Th e signifi cant components of deferred tax assets and liabilities are as follows:

Yen(millions)


2014 2015 2015Deferred tax assets: Accrued employees’ bonuses .............. ¥ 1,748 ¥ 1,320 $ 10,977 Provision for Enterprise taxes ............ 101 79 657 Warranty reserves for products ......... 385 1,003 8,346 Retirement and severance benefi t for

directors and statutory auditors ..... 135 127 1,059 Others .................................................... 4,093 3,774 31,380 Gross deferred tax assets ................. ¥ 6,465 ¥ 6,304 $ 52,422

Deferred tax liabilities: Reserve for special depreciation ........ (17) (6) (55) Reserve for program development .... (6) (5) (48) Prepaid pension expense .................... (2,499) (3,596) (29,899) Valuation diff erence on available-for-sale

securities ............................................. (1,643) (2,177) (18,105) Others .................................................... (325) (34) (289) Gross deferred tax liabilities ........... (4,492) (5,820) (48,398) Net deferred tax assets ..................... ¥ 1,972 ¥ 483 $ 4,024

Reconciliation of the diff erences between the statutory tax rate and the actual eff ective tax rate is as follows:

2014 2015Statutory eff ective tax rate ............................................ 37.8% 35.4%

Increase (reduction) in taxes resulting from:Non-deductible expenses ......................................... 0.7 0.3Taxation on per capita basis .................................... 0.5 0.2Non-taxable income ................................................. (0.8) (8.0)Diff erence in normal tax rates of foreign subsidiaries .. (21.7) (11.7)Equity in income of affi liates ................................... 3.5 0.6Valuation allowance .................................................. (14.1) (1.7)Others ......................................................................... 4.6 12.8

Actual eff ective tax rate ................................................. 10.5% 27.9%

Net deferred tax assets are included in the consolidated balance sheets as follows:

Yen(millions)


2014 2015 2015Current assets – Deferred tax assets ........... ¥ 3,439 ¥ 4,849 $ 40,320Investment and other assets – Deferred tax assets ..................................... 1,572 1,455 12,101Current liabilities – Others ........................... (25) (0) (0)Long - term liabilities – Others ................... (3,014) (5,820) (48,397) Net deferred tax assets .............................. ¥ 1,972 ¥ 483 $ 4,024

10. Lease assetsA summary of assumed amounts of acquisition cost and accumulated depreciation of lease equipments, the transaction of which began before March 31, 2008, is as follows:

Yen(millions)


Class of property 2014 2015 2015Machinery and equipment and others ..... ¥ 1,039 ¥ 348 $ 2,899Other assets .............................................. — — —Accumulated depreciation ..................... (777) (194) (1,620)

¥ 261 ¥ 153 $ 1,279

Future lease payments required under such fi nance lease that have initial or remaining terms in excess of one year as of March 31, 2015 are:



2016 ................................................................................ ¥ 53 $ 4472017 and thereaft er ....................................................... 87 726Total future lease payments ......................................... ¥ 141 $ 1,173

Future lease payments required under operating lease that have initial in excess of one year as of March 31, 2015 are:



2016 ................................................................................ ¥ 65 $ 5472017 and thereaft er ....................................................... 164 1,368Total future lease payments ......................................... ¥ 230 $ 1,916


14

11. Derivative fi nancial instrumentsTh e Company and its consolidated subsidiaries enter into forward currency exchange contracts, foreign currency option contracts and interest rate swap contracts as derivative fi nancial instruments. Th e Company and its consolidated subsidiaries deal with forward currency exchange transactions and foreign currency option contracts to hedge exchange rate risk of monetary receivables denominated in foreign currencies. Interest rate swap transactions are made in order to minimize the risk of interest rate on borrowings changing upward. Th e derivative transactions as of March 31, 2015 are summarized as follows:

(1) Interest-Rate-Related DerivativesYen (millions)

2015Contract

valueFair

valueUnrealizedgain (loss)

Interest-rate swaps:receive fl oating, pay fi xed ¥ 40,500 ¥ (404) ¥ (404)

U.S. Dollars (thousands)2015

Contract value

Fairvalue

Unrealizedgain (loss)

Interest-rate swaps:receive fl oating, pay fi xed $ 336,742 $ (3,362) $ (3,362)

12. Pension and severance plansTh e Company and its consolidated subsidiaries in Japan have various defi ned benefi t pension plans and severance indemnity plans. Some of foreign subsidiaries also have defi ned benefi t pension plans. Th e Company and some of domestic consolidated subsidiaries adopted defi ned contribution pension plans.

Yen(millions)


Pension and severance obligation 2015 2015Projected benefi t obligation .................................. ¥ (25,379) $ (211,018)Plan assets ............................................................... 36,674 304,932

Funded status .............................................................. 11,294 93,913Unrecognized actuarial loss ................................. (3,599) (29,924)Unrecognized past service liability ...................... (1,295) (10,768)

Net amount recognized ............................................. 6,400 53,219Prepaid pension cost ............................................. (7,684) (63,890)

Accrued pension and severance costs ...................... ¥ (1,283) $ (10,670)

Yen(millions)


Detail of net periodic pension cost 2015 2015Service cost .................................................................. ¥ 1,033 $ 8,594Interest cost ................................................................. 258 2,153Expected return on plan assets ................................. (1,050) (8,735)Amortization actuarial loss ...................................... 335 2,790Amortization of past service liability ....................... (579) (4,820)Extra severance pay cost ............................................ 25 214Net periodic benefi t cost ............................................ 23 197Others .......................................................................... 754 6,271Total .............................................................................. ¥ 777 $ 6,468

Actuarial assumptions 2015Discount rate ............................................................... 1.1%Expected return on plan assets ................................. 4.1%

13. Contingent liabilitiesNo relevance

14. Segment informationTh e following tables present certain information regarding the Company and its consolidated subsidiaries’ industry segments and operations by geographic areas at March 31, 2014 and 2015 and for the years then ended:

Mainly

Mainly


15

Industry segments: Yen(Millions)


Year ended March 31 Year ended March 31

2014 2015 2015

Sales and operating revenue:Transportation Equipment-related Operations

Customers ........................................................................... ¥ 261,005 ¥ 293,601 $ 2,441,186 Intersegment ....................................................................... 714 654 5,444

Total ................................................................................. 261,720 294,256 2,446,631Information Service Operations

Customers ............................................................................ ¥ 9,112 ¥ 9,986 $ 83,031 Intersegment ....................................................................... 1,152 1,450 12,061

Total ................................................................................. 10,264 11,436 95,093 Others

Customers ............................................................................ ¥ 2,425 ¥ 2,443 $ 20,313 Intersegment ....................................................................... 230 241 2,011

Total ................................................................................. 2,655 2,684 22,324 Corporate and elimination .................................................... (2,097) (2,347) (19,517)

Consolidated ................................................................................ ¥ 272,543 ¥ 306,030 $ 2,544,531 Operating income: ......................................................................

Transportation Equipment-related Operations .................. ¥ 16,275 ¥ 21,246 $ 176,660Information Service Operations ........................................... 533 560 4,658 Others ...................................................................................... 228 271 2,256 Corporate and elimination .................................................... 16 17 145

Consolidated ................................................................................ ¥ 17,054 ¥ 22,096 $ 183,720Identifi able assets:

Transportation Equipment-related Operations .................. ¥ 253,398 ¥ 308,680 $ 2,566,564Information Service Operations ........................................... 9,363 11,372 94,555Others ...................................................................................... 11,920 12,616 104,902 Corporate and elimination .................................................... (16,495) (16,759) (139,346)

Consolidated ................................................................................ ¥ 258,186 ¥ 315,910 $ 2,626,676Depreciation

Transportation Equipment-related Operations .................. ¥ 11,118 ¥ 13,898 $ 115,562 Information Service Operations ........................................... 558 533 4,432 Others ...................................................................................... 16 38 316

Consolidated ................................................................................ ¥ 11,694 ¥ 14,469 $ 120,311Impairment loss

Transportation Equipment-related Operations .................. ¥ 16 ¥ 608 $ 5,057Information Service Operations ........................................... 2 — 0 Others ...................................................................................... — — —

Consolidated ................................................................................ ¥ 19 ¥ 608 $ 5,057Capital expenditures:

Transportation Equipment-related Operations .................. ¥ 16,957 ¥ 18,169 $ 151,070Information Service Operations ........................................... 454 325 2,705 Others ...................................................................................... 40 26 224

Consolidated ................................................................................ ¥ 17,452 ¥ 18,521 $ 154,000


16

Geographic areas: Yen(Millions)


Year ended March 31 Year ended March 312014 2015 2015

Sales and operating revenue:Japan

Customers .............................................................................. ¥ 102,976 ¥ 105,264 $ 875,234Intersegment .......................................................................... 54,429 61,525 511,559

Total .................................................................................... 157,405 166,789 1,386,794 America

Customers .............................................................................. ¥ 73,454 ¥ 84,001 $ 698,440Intersegment .......................................................................... 921 1,556 12,941

Total .................................................................................... 74,375 85,557 711,382Asia

Customers .............................................................................. ¥ 83,630 ¥ 100,813 $ 838,227 Intersegment .......................................................................... 47,749 53,519 444,994

Total .................................................................................... 131,379 154,333 1,283,222 Europe

Customers .............................................................................. ¥ 12,482 ¥ 15,951 $ 132,629 Intersegment .......................................................................... 906 1,195 9,936

Total .................................................................................... 13,389 17,146 142,566 Corporate and elimination ...................................................... (104,006) (117,796) (979,433)

Consolidated .................................................................................. ¥ 272,543 ¥ 306,030 $ 2,544,531Operating income:

Japan ........................................................................................... ¥ 4,175 ¥ 6,806 $ 56,590 America ...................................................................................... 925 1,054 8,767 Asia ............................................................................................. 11,500 14,014 116,523 Europe ........................................................................................ 175 929 7,731 Corporate and elimination ...................................................... 276 (708) (5,891)

Consolidated .................................................................................. ¥ 17,054 ¥ 22,096 $ 183,720 Identifi able assets:

Japan ........................................................................................... ¥ 204,582 ¥ 241,840 $ 2,010,810America ...................................................................................... 39,919 48,021 399,282Asia ............................................................................................. 86,251 106,928 889,069Europe ........................................................................................ 9,609 10,695 88,933Corporate and elimination ...................................................... (82,176) (91,575) (761,419)

Consolidated .................................................................................. ¥ 258,186 ¥ 315,910 $ 2,626,676


Independent Auditor’s Report

To the Shareholders and the Board of Directors ofMITSUBA Corporation

We have audited the accompanying consolidated fi nancial statements of MITSUBA Corporation and its subsidiaries, which comprise the consolidated balance sheet as of March 31, 2015, and the consolidated statement of comprehensive income, statement of changes in net assets and statement of cash fl ows for the year then ended, and a summary of signifi cant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial StatementsManagement is responsible for the preparation and fair presentation of these consolidated fi nancial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated fi nancial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these consolidated fi nancial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in Japan. Th ose standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated fi nancial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated fi nancial statements. Th e procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the consolidated fi nancial statements in order to design audit procedures that arc appropriate in the circumstances, but not for the purpose of expressing an opinion on the eff ectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated fi nancial statements.We believe that the audit evidence we have obtained is suffi cient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the consolidated fi nancial statements present fairly, in all material respects, the fi nancial position of MITSUBA Corporation and its subsidiaries as of March 31, 2015, and their fi nancial performance and cash fl ows for the year then ended in accordance with accounting principles generally accepted in Japan.

Th e accompanying consolidated fi nancial statements as of and for the year then ended March 31, 2015 have been translated into U.S. Dollars solely for the convenience of the reader. We have reviewed the translation and, in our opinion, the fi nancial statements expressed in Yen have been translated into U.S. Dollars on the basis set forth in Note 1 to the consolidated fi nancial statements.

June 19, 2015Tokyo, Japan

17

Shares Issued :150,000,000 sharesOutstanding :45,581,809 sharesNumber of Shareholders :3,645Number of Employees :3,982(As of March 31, 2015)

Chairman of the Board and Chief Executive Offi cerNoboru HinoRepresentative Director, PresidentYuichi NagaseRepresentative DirectorYoshikazu TakahashiRepresentative DirectorKenichi MitaDirector, Executive Adviser Tsuneo AkutoDirectorKatsuo TakaharaDirectorMitsukazu KudoAudit & Supervisory Board MemberKoji KobayashiAudit & Supervisory Board MemberTeruhide MitsuhashiAudit & Supervisory Board Member (External)Noritaka TsukagoshiAudit & Supervisory Board Member (External)Akira Fujiwara

Outline of the Company

Head Offi ce :1-2681 Hirosawa-cho, Kiryu-shi, Gunma 376-8555, JapanTel 81-277-51-0111Fax 81-277-52-5160Established :March 8, 1946Paid-in Capital :¥9,885 millionStock Listed :Tokyo Stock Exchange First Section

Mitsuba Corporation is one of the foremost manufacturers of automotive electronic components.With the transportation equipment-related operations regarded as our core business, we will consolidate our group strength and eff ectively use our business resources in order to promote global growth and improved profi tability.Th e 10th Mid-term Management Plan has entered its second year and we are further expanding our brand by developing appealing products that meet customer needs, strengthening our production technology for those products, and engaging in proactive proposal-based marketing. Also, while responding to the movement of increased domestic production of automobile manufacturers in Japan, we are

investing mainly in Mexico, India, and Southeast Asia where continued growth is expected to build an optimal global production and supply system. In addition, we will strengthen our global quality assurance system to increase the added value and achieve sustainable profi tability of the entire group.Mitsuba will fulfi ll its corporate responsibilities towards the society and develop into a promising company accepted by stakeholders worldwide. Th rough such eff orts, Mitsuba will continue to pursue the realization of its corporate philosophy: “To provide pleasure and safety to the people of the world.”

Profi le

Directors, Auditors Offi cersPresident, Chief Operating Offi cerYuichi NagaseExecutive Vice President, Executive Offi cerYoshimasa KimuraSenior Managing Offi cerYoshikazu TakahashiSenior Managing Offi cerKenichi MitaManaging Offi cerHiroyuki OtakiManaging Offi cerMasayuki OyamaManaging Offi cerTakashi NaraManaging Offi cerShigeo SekitaManaging Offi cerTakumi TadaManaging Offi cerKatsuyoshi KitadaOperating Offi cerShingo NishikawaOperating Offi cerTokuyu TanahashiOperating Offi cerHisashi OgataOperating Offi cerNobuyuki TakeOperating Offi cerHideo Higeta

Operating Offi cerMasayoshi ShiratoOperating Offi cerMasanori ShojiOperating Offi cerYutaka NozueOperating Offi cerKunihiko AraiOperating Offi cerMasamichi MogiOperating Offi cerKeiji KiuchiOperating Offi cerHideyuki MinamiOperating Offi cerShigeru TakeiOperating Offi cerKunio NagaiOperating Offi cerJun AbeOperating Offi cerRyu SaitoOperating Offi cerKoji MizunoOperating Offi cerHaruki InamuraOperating Offi cerHideo Imai(As of June 19, 2015)


Fiscal Year Ended March 31, 2015

Printed in Japan

MITSUBA Corporation

MITSUBA Corporation1-2681 Hirosawa-cho, Kiryu-shi, Gunma 376-8555, Japan

TEL. +81 (277) 52-0111 (pilot number) / FAX. +81 (277) 52-5160

Contents

Profile ............................................C2Outline of the Company ................C2Six-Year Summary............................ 1Corporate History ............................ 1Message from the Management ...... 2Review of Operations....................... 4Financial Section .............................. 6

http://www.mitsuba.co.jp/english/

"Growing Globally"


Growing Globally - MITSUBA

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