ANNUAL REPORT 2015
Year Ended March 31, 2015

Mission Statement
The Shape of Our Future: “Creation of Fulfillment”
Each employee, with a good conscience and hope for the future,
will create fulfillment for our society.
Through advanced technology and scrupulous attention to detail,we will create fulfillment for our customers.
With pride and a desire to grow, we will create fulfillment
for the EXEDY family.

1-1-1, Kidamotomiya, Neyagawa-shi, Osaka, 572-8570, Japan
Tel: 81-72-822-1152 Fax: 81-72-822-7552
URL http://www.exedy.com

H Printed in Japan
2015.6.800. 771 ○Consolidated Financial Highlights
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2014 and 2015
Japanese yen(millions)

U.S. dollars(thousands)%
Charge2014 /2015

2014

2015

2015

Net sales\ 234,262\ 256,011$ 2,130,415+9.3%

Net income

12,2699,503

79,087-22.5%

Total assets

230,741

260,972

2,171,691+13.1%Net assets

155,931

170,326

1,417,379+9.2%

For the year:

At year-end:

Japanese yen

Per share data:

U.S. dollars

Net income\ 255.58\ 197.96

1.65-22.5%Net assets

3,032.56

3,294.13

27.41

+8.6%

70.00

70.00

0.58

－

Cash dividends$

Note：U.S. dollar amounts are included solely for the convenience of readers, translated at the rate of \ 120.17 to U.S. $1.00.

Net Sales(Millions of yen)2015

256,0112014

234,2622015

202,236

2013

2012

201,932

2012

2011

196,452

2011

50,000100,000

150,000

200,000

250,000

Net Income(Millions of yen)

2015

12,2692013

2011

13,0242,000

Annual Report 2015

4,000

6,000

8,000

10,000201.95191.21
268.32

0

20

40

60

80

100 120 140 160 180 200 220 240 260 280

Net Assets Per Share of Common Stock(Yen)

3,294.13

2014

3,032.56
2,642.60

2012

9,222

0

255.58

2013

9,723

2012

197.96

2015

9,503

2014

(Yen)

2014

2013

0

1

Net Income Per Share of Common Stock

12,00014,0002,386.53

2011

2,279.57

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Business Operations
Review of Fiscal Year 2014

Outlook of Fiscal Year 2015

Our net sales reached an all-time record for two
consecutive years, fiscal year 2014 and 2013 through sales
increase for our new products, sales at our new locations,such as Mexico and India, and increase in exchange
differences caused by the depreciation of yen. In terms ofcost, through increase in both repair and maintenanceexpenses resulting from the renovation of our production
facilities, increase in depreciation expenses related tocapital investments as well as increase in personnel costs,
the business results for this fiscal year consist of net salesof \256 BN, which is 9.3% increase compared to theprevious fiscal year, operating income of \17.8 BN, which is
8.0% decrease compared to the previous fiscal year,
ordinary profit of \19.5 BN, which is 6.9% decrease
compared to the previous fiscal year. Because one of our
products had some defects, we incurred the replacement
costs, which were recorded as extraordinary losses.
Consequently, our net income was \9.5 BN, which is 22.5%
decrease compared to the previous fiscal year.

Regarding the next fiscal year, we expect that there will
be increase in our net sales as the number of orders stays
robust especially in our overseas locations. With respect toprofit, we expect it to be challenging due to changes in thesales mix, the launch of overseas locations and increase inboth personnel and depreciation expenses primarily in the
ASEAN region; however, in all business activities centeredaround areas of production, we will seek to secure profit
and streamline operations throughout EXEDY Group.
Based on the above, our forecast for fiscal year 2015 is
as follows: net sales of \270 BN, which is 5.5% increase
compared to fiscal year 2014, operating income of \20 BN,
which is 11.8% increase compared to fiscal year 2014,
ordinary profit of \19 BN, which is 3.0% decrease comparedto fiscal year 2014, and net income attributable to shares
held by the parent of \10.5 BN, which is 10.5% increase
compared to fiscal year 2014.
July, 2015
Hidehito Hisakawa
President and Chief Exective Officer

From left to right: Masayuki Matsuda (Director), Hidehito Hisakawa (President and Chief Executive Officer), Haruo Shimizu (Chairman), Hisayasu Masaoka (Director)

Annual Report 20152

Consolidated Sales (Unit : \ million)
TS, MotorcycleATMT

256,011

FY2014

234,262

FY2013
FY2012

202,236

FY2011201,932

FY2010196,452
50,0003

Annual Report 2015

100,000

150,000

200,000

250,000
Annual Report 20154

Consolidated Sales (Unit : \ million)
TS, MotorcycleATMT

256,011

FY2014

234,262

FY2013
FY2012

202,236

FY2011201,932

FY2010196,452
50,0003

Annual Report 2015

100,000

150,000

200,000

250,000
Annual Report 2015

4

Topics of the Year
Manufacturing
The Construction of New Factories Throughout the World
In order to meet China’s increasing demand for automobiles, EXEDY DYNAXSHANGHAI CO., LTD. is currently constructing their fifth factory, which willenter production in June 2015.
In order to meet the increasing demands ofthe European automobile market,
EXEDY-DYNAX Europe Ltd., which islocated in Hungary, is in the process ofenlarging its factory. The addition will becompleted by September 2015.

EXEDY DYNAX SHANGHAI CO., LTD.

EXEDY-DYNAX Europe Ltd.

EXEDY Casting Co., Ltd.

EXEDY Casting Co., Ltd., which is located in Kyoto’s
Fukuchiyama City, finished constructing its new
factory on September 2014. This new factory enteredproduction in April 2015.

WelfareInternational Square - EXEDY’s New Dormitory Now Complete
In February 2015, EXEDY finished building its new company dormitory
International Square, which is located in the vicinity of EXEDY Headquarters.
It will be used as a lodging for trainees, technicians, and engineers whocome from EXEDY’s many locations across the globe.

Engineer trainees come to Japan

5

Annual Report 2015

Internatiional SquareConsolidated Five-Year Summary
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31
Japanese yen(millions)2011
For the year:

2012

U.S. dollars(thousands)

2013

2014

2015

2015

		
		
		
		
		
		

Net sales\ 196,452\ 201,932\ 202,236\ 234,262\ 256,011$ 2,130,415

Net income

13,024

9,222

9,723

12,2699,503

79,087

		
		

		

		
		

		

Total assets\ 164,417\ 176,038\ 196,375\ 230,741\ 260,972$ 2,171,691

Current assets

91,136

96,13897,723

114,307

122,941

1,023,065

Property, plant and equipment

65,39571,092

88,590103,820

125,182

1,041,707

Current liabilities

36,15637,487

38,734

48,32652,093

433,494

At year-end:

Long-term debt
Net assets
Shareholders' equity ratio
Retained earnings

4,200

9,838

14,904

19,16029,020241,496

116,820122,042

135,711

155,931

170,326

1,417,379

67.0 %
102,979

65.3 %
109,607		

64.6 %
116,914		Per share data:
Net income
Net income - diluted
Net assets

60.6 %

63.1 %
126,783

60.6 %

131,668

1,095,686

		Japanese yen 						

U.S. dollars\ 268.32\ 191.21\ 201.95\ 255.58\ 197.96

－

－

－

－

－

－

2,279.57

2,386.53

2,642.60

3,032.56

3,294.13

27.41

$

1.65

Note : U.S. dollar amounts are included solely for the convenience of readers, translated at the rate of \ 120.17 to U.S. $1.00.

Financial Section
Consolidated Five-Year Summary

6

Consolidated Balance Sheets

7

Consolidated Statements of Income

9

Consolidated Statements of Comprehensive Income

10

Consolidated Statements of Changes in Net Assets

10Consolidated Statements of Cash Flows12

Notes to Consolidated Financial Statements

13

Independent Auditors' Report

33

Corporate Data

34

Annual Report 20156

Consolidated Balance Sheets
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2014 and 2015
Japanese yen(millions)

ASSETS2014

U.S. dollars(thousands)

2015

2015

Current Assets:		
Cash and deposit (Notes 17 and 20)\

Notes and accounts receivable (Notes 6, 17 and 18)\

33,808$ 281,336

43,051

46,651

388,215

12,07814,001

116,51135,328Inventories (Notes 2 and 6) 		Finished goods
		Work-in process

4,749

6,148

51,165

		

10,731

11,52995,946

3,742

3,774

31,413

549

331

2,755

Other current assets

4,197

6,818

56,743

Allowance for doubtful accounts

(118)

(122)

(1,021)

114,307

122,941

1,023,065

Land

9,478

11,383

94,729Buildings and structures

31,87335,201

292,932

Machinery and vehicles

44,76758,586

487,528

Raw materials and Supplies

Deferred tax assets (Note 9)
Short-term loans to non-consolidated subsidiaries and affiliates		

Total current assets

		
		
		
Property, Plant and Equipment (Notes 5 and 6) :		

Tools and furniture

6,623

8,344

69,441

Construction in progress

11,07911,665

97,075

103,820

125,182

1,041,707

Intangible assets

3,985

3,695

30,749Investments in securities (Notes 3, 4 and 17)

3,810

4,394

36,565

401

346

2,883

Asset for retirement benefits (Note 10)

1,321

1,126

9,378

Deferred tax assets (Note 9)

1,447

1,611

13,410

Other assets

1,688

1,715

14,279

(38)

(41)

(347)

12,614

12,848106,918

260,972$ 2,171,691

		Total property, plant and equipment

		
		
		
Investments and Other Assets: 		Long-term loans to non-consolidated subsidiaries and affiliates

Allowance for doubtful accounts
		

Total investments and other assets

		
		
		
Total Assets		

The accompanying notes to the consolidated financial statements are an integral part of these statements.

7 Annual Report 2015\

230,741\

Japanese yen(millions)

LIABILITIES AND NET ASSETS

U.S. dollars(thousands)

2014

2015

2015

Current Liabilities:		
\ 19,845\ 20,870$ 173,671

Short-term borrowings (Notes 6, 7 and 17)

6,939

9,319

77,552

Accrued expenses (Note 17)

8,299

8,638

71,888

Accrued income taxes (Note 17)

4,598

1,562

13,004987

2,963

24,659

7,658

8,738

72,71752,093

433,494

Notes and accounts payable (Note 17)

Provision for product warranties
Other current liabilities
		

Total current liabilities

48,326				Long-term Liabilities:				

Bonds (Note 17)

7,000

7,000

58,250Long-term debt (Notes 6, 7 and 17)

12,16022,020183,246

Long-term other accounts payable

493

463

3,857

Deferred tax liabilities (Note 9)

2,721

3,691

30,721

Liability for retirement benefits (Note 10)

3,709

4,809

40,025

Asset retirement obligations

28

28

233

Other long-term liabilities

373

538

4,480

38,552

320,817

		Total long-term liabilities

26,484

				Contingent Liabilities (Note 18)		

		

		

		

Net Assets				

Shareholders' Equity:						Common stock		

Authorized - 168,000 thousand shares in 2014 and 2015

		Issued - 48,593 thousand shares in 2014 and 2015

Capital surplus
Retained earnings

		
8,284

8,284

68,936

7,543

7,556

62,881

131,668

1,095,686

126,783

		Treasury stock		

586 thousand shares in 2014 and 583 thousand shares in 2015

			Total shareholders' equity(1,478)(1,480)(12,319)

141,132

146,028

1,215,185

Accumulated Other Comprehensive Income				Valuation difference on available-for-sale securities

1,059

1,587

13,214Foreign currency translation adjustments

3,309

10,52487,575

84

12

104

12,124

100,895

Remeasurements of defined benefit plans (Note 10)		Total accumulated other comprehensive income

4,452

		

		
Minority Interests 		

10,347

		

12,172

101,298				Total net assets

155,931

Total Liabilities and Net Assets		

170,326

1,417,379

				\ 230,741\ 260,972$ 2,171,691

Annual Report 20158

Consolidated Statements of Income
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2014 and 2015
Japanese yen(millions)

Net Sales 				
Cost of Sales 		Gross profit		Selling, General and Administrative Expenses				 Packing and haulage expenses
		 Provision for product warranties
		 Provision of allowance for doubtful accounts
		 Director's remuneration and salary and other allowances		Welfare expense
Retirement benefit cost		Amortization
		 Research and development expenses (Note 11)		Other, net
		 Total selling, general and administrative expenses
Operating income
		Non-operating Income : 				Interest
		Dividend income
		Rent income
		 Income from sponsorship
		 Gains on sale of property, plant and equipment
		 Foreign exchange gains
Examination trust profit
Equity in gains of non-consolidated subsidiaries and affiliates
		Other, net
		 Total non-operating income
		Non-operating Expenses : 				Interest expense
		Bond interest
		 Losses on sale or disposal of property, plant and equipment
Equity in losses of non-consolidated subsidiaries and affiliates
		Other, net
		 Total non-operating expenses
Ordinary Profit		Special Loss : 				 Provision for product warranties
		 Losses on devaluation of investment securities
		 Total special loss
Income before income taxes and minority interests		
Income Taxes (Note 9)		Current
DeferredIncome before Minority Interests		
Minority Interests in Net Income of Consolidated Subsidiaries 				
Net Income		
		Per Share Data (Note 15) :		
Net income
Net income - diluted		
Cash dividends
The accompanying notes to the consolidated financial statements are an integral part of these statements.

9 Annual Report 2015

U.S. dollars(thousands)

2014

2015

2015

\ 234,262
		
184,358
49,904
		\ 256,011
		206,284
49,727$ 2,130,415
		
1,716,606
413,808

		
6,752
304
44
8,224
1,546
77
2,108
5,208
7,572
31,83917,887

		
56,1872,530
374
68,442
12,870645
17,54843,34663,011
264,957
148,851

		
182
79
133
118
85
1,675
62
121
593
3,051

		
1,517
659
1,111
986
707
13,946
519
1,008
4,935
25,392

		
774
35
163
－
382
1,356
19,582

		
6,447
292
1,363
－
3,184
11,288
162,955

		
2,200
68
2,269
17,313

		
18,315568
18,883144,072

		
5,755
1,060
10,496992
		\ 9,503		
47,896
8,825
87,3508,263
		
$79,087

6,514
625
6
7,905
1,303
(31)
1,711
4,573
7,861
30,47019,434
		
199
50
136
171
23
1,891
26
－
526
3,022
		
600
35
426
4
366
1,431
21,025
		
－－－21,025
		
7,296
367
13,362
1,093
		\ 12,269

Japanese yen\ 255.58
－
		
70.00

\ 197.96
－
		
70.00

U.S. dollars
$

1.65
－
		
0.58

Consolidated Statements of Comprehensive Income
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2014 and 2015
Japanese yen(millions)

Income before Minority Interests		

U.S. dollars(thousands)

2014

2015

\ 13,362\ 10,496

2015

87,350

Other Comprehensive Income
322

529

4,405

9,946

8,604

71,598Remeasurements of defined benefit plans

－

(71)

(597)

Share of other comprehensive income of associates accounted for using equity method

14

(23)

(196)

Valuation difference on available-for-sale securities		
Foreign currency translation adjustments

10,282

9,038

75,210\ 23,644\ 19,535$ 162,561

Owners of the parent		

21,035

17,176

142,936

Minority interests		

2,609

2,358

19,624

		Total other comprehensive income (Note 19)

Comprehensive Income		Comprehensive Income attributable to:

The accompanying notes to the consolidated financial statements are an integral part of these statements.

Consolidated Statements of Changes in Net Assets
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2014 and 2015
Japanese yen (millions)Shareholders' Equity
CommonStock
Balance at April 1, 2013
Net income
Purchase of treasury stock
Disposal of treasury stock
Cash dividends paid
Other, net
Balance at March 31, 2014\

Retained
Earnings

CapitalSurplus
\

8,284

7,541

TreasuryStock\ 116,914
12,269\(1,498)(2)
22

2(2,400)
\

\

8,284

7,543

\ 126,783\(1,478)

Total
Shareholders'Equity\ 131,241
12,269(2)
24(2,400)\ 141,132
Japanese yen (millions)

Accumulated other Comprehensive Income
Valuation
Difference on
Available-for-sale
Securities
Balance at April 1, 2013
Net income
Purchase of treasury stock
Disposal of treasury stock
Cash dividends paid
Other, net
Balance at March 31, 2014

Foreign
Currency
Translation
Adjustments

Accumulated
Adjustments for
Retirement
Benefit

Total
Accumulated
otherComprehensive
IncomeMinority
Interests

\

737

\

(5,136)\－\(4,399)

\

8,869

\

322
1,059

\

8,445
3,309

\

84
84

\

8,851
4,452

\

1,478
10,347

Total
net
Assets\ 135,711
12,269(2)
24(2,400)
10,329\ 155,931

Annual Report 201510

Japanese yen (millions)Shareholders' Equity
CommonStock
Balance at April 1, 2014
Cumulative effects of changes
in accounting policies
Restated balance
Net income
Purchase of treasury stock
Disposal of treasury stock
Cash dividends paid
Other, net
Balance at March 31, 2015

CapitalSurplusRetained
Earnings

\

8,284

\

7,543

\ 126,783

\

8,284

\

7,543

\ 126,005
9,503

Treasury
Stock\(1,478)\(1,478)

Total
Shareholders'Equity\ 141,132

(777)

(777)

(0)
(1)

13
(3,840)
\

8,284

\

7,556

\ 131,668\(1,480)\ 140,354
9,503
(0)
12
(3,840)\ 146,028
Japanese yen (millions)

Balance at April 1, 2014
Cumulative effects of changes
in accounting policies
Restated balance
Net income
Purchase of treasury stock
Disposal of treasury stock
Cash dividends paid
Other, net
Balance at March 31, 2015

Accumulated other Comprehensive Income
Valuation
Foreign
Remeasurements Total Accumulated
Difference on
Currency
otherof definedComprehensive
Available-for-saleTranslation
benefit plans
IncomeSecurities
Adjustments
1,059
3,309
84
4,452
\
\
\
\

Minority
Interests\

10,347

Total
net
Assets\ 155,931
(777)

\

1,059

\

3,309

\

84

\

4,452

\

10,347

\

529
1,588

\

7,215
10,524

\

(71)
12

\

7,672
12,124\

1,826
12,172\ 155,153
9,503
(0)
12
(3,840)9,498\ 170,326

U.S. dollars (thousands)
Shareholders' Equity
CommonStock
Balance at April 1, 2014
Cumulative effects of changes
in accounting policies
Restated balance
Net income
Purchase of treasury stock
Disposal of treasury stock
Cash dividends paid
Other, net
Balance at March 31, 2015$

68,936

CapitalSurplus$62,771Retained
Earnings

Treasury
Stock$1,055,031$ (12,302)

Total
Shareholders'Equity$1,174,436(6,471)$

68,936$

62,771$1,048,559
79,087(6,471)$ (12,302)
(6)
(10)

110
(31,960)$

68,936$62,881$1,095,686$ (12,319)$1,167,964
79,087(6)
100(31,960)$1,215,185
U.S. dollars (thousands)

Balance at April 1, 2014
Cumulative effects of changes
in accounting policies
Restated balance
Net income
Purchase of treasury stock
Disposal of treasury stock
Cash dividends paid
Other, net
Balance at March 31, 2015

Accumulated other Comprehensive Income
Valuation
Foreign
Remeasurements Total Accumulated
Difference on
Currency
otherof definedComprehensive
Available-for-saleTranslation
benefit plans
IncomeSecurities
Adjustments$
8,808$ 27,535$
701$ 37,046$

86,102

Total
net
Assets$1,297,585(6,471)

$

8,808

$

27,535

$

701

$

$

4,405
13,214$60,04087,575

$

(597)
104

63,848$ 100,895

The accompanying notes to the consolidated financial statements are an integral part of these statements.

11 Annual Report 2015

Minority
Interests

37,046$

86,102

15,196$ 101,298$ 1,291,113
79,087(6)
100(31,960)
79,045$1,417,379

Consolidated Statements of Cash Flows
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2014 and 2015
Japanese yen(millions)

Cash Flows from Operating Activities:
Income before income taxes and minority interests
Adjustments for :Depreciation and amortization
Losses (gains) on sale or disposal of property, plant and equipment
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in employees' severance and retirement benefits
Decrease (increase) in asset for retirement benefits
Increase (decrease) in liability for retirement benefits
Increase (decrease) in provision for product warranties
Interest and dividend income
Interest expense
Decrease (increase) in notes and accounts receivables
Increase (decrease) in inventories
Increase (decrease) in notes and accounts payables
Increase (decrease) in long-term other accounts payable
Other, net
		Subtotal
Interest and dividend income received
Interest paid
Income taxes paid
		 Net cash provided by operating activities
Cash Flows from Investing Activities:
Increase in time deposits
Decrease in time deposits
Payments for purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for acquisitions of intangible assets
Payments for purchases of investment in securities
Payments for additional portions of consolidated subsidiaries
Additions to loans receivable
Payments for additional portions of subsidiaries & affiliates
Collection of loans receivable
Other, net
		 Net cash used in investing activities
Cash Flows from Financing Activities:
Increase (decrease) in short-term borrowings, net
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of common stock
Redemption of bonds
Payments for acquisitions of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided (used) in financing activities
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year (Note 20)

U.S. dollars(thousands)

2014

2015

2015

\ 21,025\ 17,313$ 144,072

12,210341
4(3,854)(1,321)
3,709
492
(249)
635
(115)
621
2,085
(127)
111
35,567290(633)(5,395)29,82914,363
72
(0)
－
(210)
275
1,804
(261)
809
(1,126)(1,744)(592)(25)(3,577)
27,101330(803)(8,932)
17,696

119,529603(3)－(1,748)2,295
15,015(2,177)
6,739(9,371)(14,514)(4,930)(210)(29,773)
225,525
2,746(6,683)(74,329)
147,258(74)
57(20,027)315(1,663)
(14)
(442)
(212)
(340)
216
(5)
(22,189)(0)
1(25,304)
225
(814)
(36)
－
(1)
－
273
9
(25,647)(0)12(210,575)
1,876(6,777)
(302)
－
(11)
－
2,275
76
(213,426)

433
6,155
(2,915)5(66)(3)(2,404)
(579)
(35)
591
1,409
9,640
25,593\ 35,233

240
10,833(2,357)－－(0)(3,846)
(532)
(35)
4,302
2,125
(1,523)35,233\ 33,710

2,005
90,152(19,618)－－(6)(32,006)(4,428)(292)
35,804
17,687(12,675)
293,195$ 280,519

The accompanying notes to the consolidated financial statements are an integral part of these statements.

Annual Report 201512

Notes to Consolidated Financial Statements
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES

1. Summary of Significant Accounting(a) Basis of presenting the consolidated financial statements(e) Derivatives

The accompanying consolidated financial statements of EXEDY Corporation (“theCompany") and its consolidated subsidiaries have been prepared in accordance withthe provisions set forth in the Financial Instruments and Exchange Law in Japan and its
related accounting regulations, and in conformity with accounting principles generally
accepted in Japan (“Japanese GAAP”), which are different in certain respects as toapplication and disclosure requirements from International Financial Reporting Standards.

All derivatives are stated at fair value.

The accounts of the Company’s overseas subsidiaries are prepared in accordancewith either International Financial Reporting Standards or U.S. generally accepted
accounting principles, and partially reflect the adjustments which are necessary toconform to Japanese GAAP. The accompanying consolidated financial statements
have been rearranged and translated into English from the consolidated financial
statements of the Company and its consolidated subsidiaries prepared in accordancewith Japanese GAAP and filed with the appropriate Local Finance Bureau of the
Ministry of Finance as required by the Financial Instruments and Exchange Law inJapan. Certain supplementary information included in the statutory consolidated
financial statements prepared in Japanese, but not required for fair presentation, is
not presented in the accompanying consolidated financial statements.
The translation of the Japanese yen amounts into U.S. dollar amounts is included
solely for the convenience of readers outside Japan, using the prevailing exchange
rate at March 31, 2015, which was ¥120.17 to U.S. $1.00. Such translation should not
be construed as representations that the Japanese yen amounts have been, could
have been, or could in the future be, converted into U.S. dollars at this or any otherrate of exchange. Amounts are rounded down to the nearest million yen and thousand
dollars. Therefore, the total shown in the consolidated financial statements and notes
thereto do not necessarily agree with the sum of the individual account balances.

(b) Principles of consolidation
The accompanying consolidated financial statements include the accounts of theCompany and 32 (2014:33) significant subsidiaries as of March 31, 2015, over which
the Company has power of control through majority voting rights or the existence of
certain conditions evidencing control by the Company.
Investments in 4 (2014:4) non-consolidated subsidiaries and 2 (2014:3) affiliates asof March 31, 2015, over which the Company has the ability to exercise significant
influence over operating and financial policies of the investees, are accounted forusing the equity method.
EXEDY Mexico Aftermarket Sales, S.A. de C.V. is excluded from scope of applicationof the equity method because it is a newly-established company, small in size and its
net profit or loss (proportionate amount to equity) and retained earnings (proportionate
amount to equity), etc. both did not have material impact on the financial statements.
In the elimination of investments in consolidated subsidiaries, the assets and liabilities ofthe subsidiaries, including the portion attributable to minority shareholders, are measured
at fair value at the time the Company acquires control of the respective subsidiary. Materialintercompany balances, transactions and profits have been eliminated in consolidation.
All the consolidated overseas subsidiaries, except for 2 subsidiaries, EXEDY India Ltd.
and EXEDY Clutch India Pvt. Ltd., have the fiscal year ending December 31. Significant
transactions occurring during the period between January 1 and March 31, the Company’s
fiscal year-end, are adjusted for in the consolidated financial statements.

(c) Translation of foreign currencies
Monetary assets and liabilities denominated in foreign currency are translated
into Japanese yen at current rates at each balance sheet date and the resulting
translation gains or losses are charged to income for the current year.
The balance sheets of consolidated overseas subsidiaries are translated into Japanese
yen at the year-end rates except for shareholders' equity accounts, which are translated
at historical rates. Income statements of consolidated overseas subsidiaries aretranslated at the average rates during the year. Translation adjustments resulting fromtranslating financial statements whose accounts are denominated in foreign currencies
are not included in the determination of net income but are reported as “Foreign
currency translation adjustments” in a component of net assets and minority interests.

(d) Securities
Securities consist principally of marketable and nonmarketable equity securities.
Available-for-sale securities with available fair value are stated at fair value. Valuationdifferences on available-for-sale securities are reported, net of applicable income
taxes, as a separate component of net assets.
Realized gains and losses on the sale of such securities are computed using themoving average cost method.
Available-for-sale securities with no available fair value are stated at moving average cost.
If the fair value of available-for-sale securities declines significantly, such securities
are stated at fair value and the difference between the fair value and the carrying
amount is recognized as a loss in the year of decline. If the net asset value ofavailable-for-sale securities with no available fair value declines significantly, suchsecurities should be written down to the net asset value by charging to income.

13 Annual Report 2015(f) Inventories
Inventories held for sale except for supplies are mainly stated at the lower of cost
(moving average method) or net realizable value at the balance sheet date. Supplies
are mainly stated at cost determined by the last purchase cost method.

(g) Property, plant and equipment
The Company and its domestic consolidated subsidiaries compute the depreciationof property, plant and equipment by using the declining-balance method and its
overseas consolidated subsidiaries mainly by using the straight-line method. The
depreciation of buildings acquired by the Company and its domestic consolidated
subsidiaries on and after April 1, 1998 is computed by using the straight-line method.
Estimated useful lives of property, plant and equipment are as follows:
Buildings and structures ........... 10 - 30 years
Machinery and vehicles …........
7 - 20 years
Tools and furniture ……….........
4 - 7 years(h) Intangible Assets (excluding leased assets)
Intangible assets are amortized using the straight-line method. Software for internal
use is amortized using the straight-line method over estimated in-house working lifeof 3 to 5 years.

(i) Leases
Finance leases, except for certain immaterial leases, are capitalized and depreciatedover lease terms, as applicable. However, as permitted, the Company andconsolidated domestic subsidiaries account for finance leases commencing prior to
April 1, 2008 which do not transfer ownership of the leased property to the lessee as
operating lease, with disclosure of certain “as if capitalized” information in Note 8.

(j) Income taxes
The Company and its consolidated subsidiaries recognize the tax effects of
temporary differences between the carrying amounts of assets and liabilities for tax
and financial reporting purposes.
The asset and liability approach is used to recognize deferred tax assets andliabilities for the expected future tax consequences of temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and theamounts used for income tax purposes.

(k) Allowance for doubtful accounts
The Company and its consolidated subsidiaries provide for doubtful accounts
principally at an amount computed based on the historical bad debt ratio duringa certain reference period plus the estimated uncollectible amount based on theanalysis of individual accounts.

(l) Provision for product warranties
The Company and its consolidated subsidiaries provide for warranty claim costs
relating to quality of products. The provision is estimated based on historical warranty
claims ratio and other individual conditions during a certain reference period.

(m) Employees' severance and retirement benefits
The Company and its consolidated subsidiaries provide for employees' severance
and retirement benefits at the end of the fiscal year based on the estimated amounts
of projected benefit obligation and the fair value of the plan assets at that date.
Actuarial differences are fully recognized in expenses in the year following the fiscal year
in which the actuarial differences are incurred or in the year in which they are incurred.
Prior service costs are fully recognized in expenses in the year in which they are incurred.

(n) Accounting for consumption taxes
Consumption taxes withheld upon sale and consumption taxes paid by the Company
and its consolidated subsidiaries on their purchases of goods and services are
not included in the amounts of respective revenue, cost or expense items in theaccompanying consolidated statements of income.

(o) Per share data
The computation of net income per share is based on the weighted average numberof shares outstanding during each year, excluding the Company’s treasury stock,and based on net income attributable to ordinary shareholders, excluding bonuses
to directors and corporate auditors, etc. The computation of net assets per shareis based on the number of shares of common stock outstanding at the year-end,
excluding the Company’s treasury stock, and based on net assets attributable toordinary shareholders, excluding minority interests.
Cash dividends per share shown in the statements of income are the amounts
attributable to the respective years.

(p) Goodwill(u) Additional information

Goodwill, except for minor goodwill, is amortized by the straight-line method over five
years. Minor goodwill is expensed as incurred.

Application of the Practical Solution on Transactions of Delivering the Company’s
Own Stock to Employees etc. through Trusts
The Company conducts transactions of delivering its own shares to its employees
through a trust with the aim of improving employee welfare.
(1) Overview of transactions
At the Board of Directors meeting held on April 27, 2011, the Company resolved
the launch of “stock-granting Employee Stock Ownership Plan (“ESOP”)”, a trusttype employee incentive plan, for the purpose of improving corporate value in themedium-and-long term by promoting management that aims to enhance stock value
as well as further improvement in employee motivation and willingness to participate
in management. The Company instituted the plan on May 16, 2011.
A Trust is established by the company in which its employees who meet certain
requirements are the beneficiaries and the Company contributes the amount required
to purchase its own shares to the Trust. Mitsubishi UFJ Trust and Banking, Ltd.
(stock-granting ESOP trust account) purchases the number of shares expected to bedelivered to our employees from the Company by the third-party allotment according
to a rule for granting shares.
According to the rule for granting shares, the Trust delivers the Company’s sharesto the employees with no charge during the periods of services, based on theemployees’ promotion and appointment as management positions during the periodof trust.
As the Company contributes the full amount required for the Trust to purchase its
own shares, the employees pay no costs. Because the launch of the Trust enables
the employees to receive economic benefits from increase in the Company’s stock
price, improvement in employee motivation can be expected. Also, exercise of
voting rights related to the Company’s shares categorized as trust assets of theTrust should reflect the employees’ intentions as candidates for beneficiaries inthis scheme, and it is effective as a plan for enhancing corporate value to promote
employees’ participation in management.

(q) Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits and short-term
investments which have maturities of three months or less when purchased, areeasily convertible into cash and have little risk of fluctuation in value.

(r) Reclassification

Certain comparative figures have been reclassified to conform to the current year’s
presentation.

(s) Change in Accounting Policy
Accounting Standards for Retirement Benefits
The Company and its domestic consolidated subsidiaries have adopted provisions set
forth in paragraph 35 of “Accounting Standard for Retirement Benefits” (AccountingStandards Board of Japan (“ASBJ”) Statement No.26 issued on May 17, 2012) andparagraph 67 of “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No.25 issued on March 26, 2015) from this fiscal year. The Company reviewed
the method to determine retirement benefit obligations and service costs and theCompany changed the discount rate from the rate based on remaining service periods
to single weighted average discount rate that reflects the amount of benefit payment foreach estimated timing of payment as well as the method to attribute projected retirement
benefits to periods of service from straight-line basis to benefit formula basis.
In accordance with transitional provisions set forth in paragraph 37 of the AccountingStandard for Retirement Benefits, retained earnings are adjusted for the effect ofchanges in the method to determine retirement benefit obligations and service costsat the beginning of this fiscal year.
As a result of the above, “Liability for retirement benefits” increased by ¥825 million($6,867 thousand), “Asset for retirement benefits” decreased by ¥404 million ($3,366
thousand) and retained earnings decreased by ¥777 million ($6,471 thousand). The
effect on operating income, ordinary income and income before income taxes andminority interests for this fiscal year is immaterial. Net asset per share decreased by¥16.20 ($0.13) and the effect on net income per share is immaterial.
Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts
Revised “Practical Solution on Transactions of Delivering the Company’s Own
Stock to Employees etc. through Trusts” (ASBJ PITF No. 30, March 26, 2015)
has been applied from this fiscal year. With respect to the accounting treatment oftrust agreements that were entered into before the beginning of the first year of theapplication of the above PITF, the method adopted in the prior periods continue
to be applied. Accordingly, the application of the above PITF has no effect on the
consolidated financial statements.

(t) Accounting Standards issued but not yet adopted
Accounting Standard for Business Combinations (ASBJ Statement No. 21,
September 13, 2013)
Accounting Standard for Consolidated Financial Statements (ASBJ Statement No.
22, September 13, 2013)
Accounting Standard for Business Divestitures (ASBJ Statement No. 7, September
13, 2013)
Accounting Standard for Earnings per Share (ASBJ Statement No. 2, September 13, 2013)
Guidance on Accounting Standard for Business Combinations and AccountingStandard for Business Divestitures (ASBJ Guidance No. 10, September 13, 2013)
Guidance on Accounting Standard for Earnings per Share (ASBJ Guidance No. 4,
September 13, 2013)
1. Outline
These accounting standards and guidance contain amendments to the accounting
treatment for:(1) Changes in a parent’s ownership interest in a subsidiary when the parent retains
control over the subsidiary in the additional acquisition of shares therein,(2) Acquisition related Costs,(3) Presentation method of net income and amendment of “minority interests” to“non-controlling interests,” and(4) Transitional provisions for accounting treatments.
2. Effective dates
Effective from beginning of fiscal year ending March 31, 2016. However, thetransitional provisions for accounting treatments will be applied to businesscombinations performed on or after the beginning of the fiscal year ending March 31,
2016.
3. Impact of applying the new accounting standards and related guidance
The financial impact of applying the new accounting standards and related guidanceis under review at the time the consolidated financial statements for the year ended
March 31, 2015, are prepared.

(2) The Company has applied the "Practical Solution on Transactions of Delivering
the Company's Own Stock to Employees etc. through Trusts" (ASBJ PITF No.30,
March 26, 2015); however, it is accounted for using the same method as the previous
method.
(3) Matters relating to the Company shares held by the Trust
A. The carrying amount of shares held by the Trust was ¥207 million at the end of theprevious fiscal year and ¥197 million ($1,644thousand) at the end of the fiscal year.
B. The shares held by the Trust are recorded as treasury stock under shareholders' equity.
C. The number of shares at the end of the year was 82,700 for the previous fiscal
year and 78,800 for the fiscal year, while the average number of shares during theyear was 86,669 for the previous fiscal year and 80,308 for the fiscal year.
D. For the purposes of calculating per-share data, the number of shares at the endof the year and the average number of shares for the year are included in thetreasury stock which should be deducted.
Stock-based compensation plan linked to company performance
The company has instituted a stock-based compensation plan linked to company
performance (the “Plan”) for directors (excluding outside directors and part-time
directors) and executive officers (excluding personnel assigned overseas) ("Directors,etc."). The Plan is closely linked to company performance, which helps improve theCompany’s performance and enhance the awareness of contributions to increase
corporate value. The Plan adopts a scheme called executive compensation BIP trust.
(1) Overview of the PlanAt the Board of Directors meeting held on May 28, 2014, the launch of the Plan was
resolved for Directors, etc. and proposition for the Plan was approved at the 64th
Ordinary General Meeting of Shareholders held on June 24, 2014. The Plan willcommence from the year ended March 31, 2015, for a period of two years, to theyear ended March 31, 2016, and the Company’s shares that the Trust acquires will
be delivered to Directors, etc., in a quantity corresponding to the number of points
awarded to them based on performance indicators and titles.
The Trust is established by the company in which Directors, etc. who meet certain
requirements are the beneficiaries and the Company contributes the amountrequired to purchase its own shares to the Trust. The Master Trust Bank of Japan,
Ltd. (executive compensation BIP trust account) purchases the number of shares
expected to be delivered to Directors, etc. from the Company by the third-party
allotment according to a prescribed rule for granting shares.
According to the rule for granting shares, the Trust delivers the Company’s shares to
Directors, etc. who meet certain requirements for beneficiaries upon their retirementin the number of shares determined based on the performance indicators, etc. foreach fiscal year.
Voting rights related to the Company’s shares categorized as trust assets of the Trustshall not be exercised during the period of trust.
(2) The shares held by the Trust
The shares held by the Trust are recorded as treasury stock under shareholders'equity at carrying amounts (excluding ancillary expense) in the Trust, and thecarrying amount of treasury stock was ¥111 million ($931thousand) and number ofthe stocks was 40,000 at the end of the fiscal year.

Annual Report 201514

2. Inventories
Inventories as of March 31, 2014 and 2015 were as follows:
Japanese yen(millions)Finished goods
Work-in process
Raw materials
Supplies

U.S. dollars(thousands)

2014

2015

\ 12,078
4,749
7,511
3,220
\ 27,558\ 14,001
6,148
8,009
3,520
\ 31,679

2015$

116,511
51,16566,64929,296$ 263,623

The ending inventory balance presented above is the net of write-downs of inventories when their carrying amounts
become unrecoverable. The amount of write-downs recognized in cost of sales were ¥69 million and ¥143 million ($1,192thousand) as of March 31,
2014 and 2015, respectively.

3. Securities
Available-for-sale securities with carrying amounts (fair values) exceeding acquisition costs as of March 31, 2014 and 2015 were as follows:
Japanese yen (millions)

March 31, 2014

Acquisition cost Carrying amount

Equity securities
Bonds
Others

\

\

863
－
－
863

\

\

2,515
－
－
2,515

Difference
\

\

1,652
－
－
1,652

Japanese yen (millions)

March 31, 2015

Acquisition cost Carrying amount

Equity securities
Bonds
Others

\

\

1,101
－
－
1,101

\

\

3,127
－
－
3,127

U.S. dollars (thousands)
Difference\\

Acquisition cost Carrying amount

2,026
－
－
2,026

$

$

9,163
－
－
9,163

$

26,023－－26,023$Difference$$

16,859－－16,859Available-for-sale securities with carrying amounts (fair values) not exceeding acquisition costs as of March 31, 2014 and 2015 were as follows:
Japanese yen (millions)

March 31, 2014

Acquisition cost Carrying amount

Equity securities
Bonds
Others

\

\

77
－
－
77

\

\

61
－
－
61

Difference
\

\

(16)
－
－
(16)

Japanese yen (millions)

March 31, 2015

Acquisition cost Carrying amount

Equity securities
Bonds
Others

\

\

194
－
－
194

\

\

153
－
－
153

U.S. dollars (thousands)
Difference\\

Acquisition cost Carrying amount

(40)
－
－
(40)

$

$

1,616
－
－
1,616

$

1,280
－
－
1,280

$

Difference
$

$

(335)
－
－
(335)

The carrying amount of securities with no available fair values as of March 31, 2014 and 2015 were as follows:
U.S. dollars(thousands)

Japanese yen(millions)2014
Available-for-sale securities with no fair values
Non-listed equity securities

15 Annual Report 2015

\

30

2015
\

50

2015
$

421

4. Investments in non-consolidated subsidiaries and affiliates
Investments in non-consolidated subsidiaries and affiliates that were included in "Investments in securities as of March 31, 2014 and 2015 were as
follows:
Japanese yen(millions)

2014
Investment securities

\

1,204

U.S. dollars(thousands)

2015
\

1,062

2015
$

8,839

5. Accumulated depreciation
Accumulated depreciation as of March 31, 2014 and 2015 were as follows:
Japanese yen(millions)

Accumulated depreciation

U.S. dollars(thousands)

2014

2015

2015

\ 172,848\ 188,425$ 1,567,993

6. Assets Pledged as Collateral
The following assets were pledged as collateral for \317 million and \330 million ($2,752 thousand) of secured loans as of March 31, 2014 and2015, respectively :Japanese yen(millions)2014
Accounts receivable and inventories
Property, plant and equipment

\
\

1,643
1,301
2,944

U.S. dollars(thousands)

2015
\
\

1,305
1,454
2,759

2015
$
$

10,862
12,10422,966

Annual Report 201516

7. Bonds Payable, Short-term Borrowings and Long-term Debt
Bonds Payable, Short-term borrowings and long-term debt as of March 31, 2014 and 2015 were as follows:
U.S. dollars(thousands)

Japanese yen(millions)2014
Short-term borrowings
Current portion of long-term debt
Current portion of lease obligation
Bonds Payable
Long-term debt
Lease obligations
Other interest bearing debt

\

4,380
2,559
40
7,000
12,16096
302\ 26,537

2015
\

5,142
4,177
49
7,000
22,02082
751\ 39,2232015

Weighted
averageinterest rates$

42,79034,761
410
58,250183,246686
6,250$ 326,396

Average interest rates for lease obligations are omitted because lease obligations include assumed interest amounts.

Annual maturities of bonds payable, long-term debt and lease obligations as of March 31, 2015 were as follows:

Bonds Payable
Years ending March 31

Japanese yen(millions)2017\

Long-term Dept
Years ending March 31

7,000
7,000

\

$

Lease Obligation

Japanese yen(millions)\\

17 Annual Report 2015

58,25058,250U.S. dollars(thousands)

3,851
10,485
4,405
1,963
1,314
\ 22,020

2017
2018
2019
2020
2021 and thereafter$

Japanese yen(millions)

2017
2018
2019
2020
2021 and thereafterYears ending March 31

U.S. dollars(thousands)

45
26
8
2
－
82

32,05287,252
36,66016,342
10,938$ 183,246
U.S. dollars(thousands)
$

$

375
217
69
23
－
686

4.5 %
3.6
－
0.5
3.6
－
0.5

Year due2017
2016-2020
2016-2020

8. Leases(a) Finance leases
As discussed in Note 1 (i), finance leases commenced prior to April 1, 2008 which do not transfer ownership of leased assets to lessees areaccounted for as operating leases.
Information relating to finance leases, except those leases for which the ownership of the leased assets is considered to be transferred to the lessee,
is described below.
Pro forma information regarding leased property such as acquisition cost, accumulated depreciation, accumulated losses on impairment and future
minimum lease payments under finance leases that do not transfer the ownership of the leased property to the lessee for the years ended March 31,
2014 and 2015 were as follows:
Japanese yen (millions)

March 31, 2014
Machinery and vehicles
Tools and furniture

Accumulated
Acquisition Accumulated losses on
cost
depreciation impairment\\

March 31, 2015
Machinery and vehicles
Tools and furniture

134
91
225

\
\

123
81
204

\
\

－
－
－

Balance
\
\

11
10
21

Japanese yen (millions)

U.S. dollars (thousands)

Accumulated
Acquisition Accumulated losses on
cost
depreciation impairment

BalanceAccumulated
Acquisition Accumulated losses on
cost
depreciation impairment

\

\

\

134
90
225

\
\

134
90
225

\
\

－
－
－

\

0
－
0

$ 1,119757$ 1,876$ 1,116757$ 1,873

$
$

－
－
－

Balance
$

3
－
3

$

The scheduled maturities of future lease payments on such lease contracts for the years ended March 31, 2014 and 2015 were as follows:
Japanese yen(millions)2014
Due within one year
Due over one year

Lease payments for the year

\
\

21
0
21

\

29

U.S. dollars(thousands)

2015
\

2015
$

\

0
－
0

$

3
－
3

\

21

$

175

The amounts of acquisition costs and future minimum lease payments under finance leases includes the interest expense portions.   
Depreciation expenses, which are not reflected in the accompanying consolidated statements of income, calculated by the straight-line method,were \29 million and \21 million ($175 thousand) for the years ended March 31, 2014 and 2015, respectively.
The Company had no leased assets on which impairment should have been recognized for the years ended March 31, 2014 and 2015.

(b) Operating leases
The scheduled maturities of future lease payments under non-cancelable operating leases as of March 31, 2014 and 2015, were as follows:
Japanese yen(millions)2014
Due within one year
Due over one year

\
\

10
9
19

U.S. dollars(thousands)

2015
\
\

5
3
9

2015
$
$

45
31
77

Annual Report 201518

9. Income Taxes
Significant components of the Company and consolidated subsidiaries' deferred tax assets and liabilities as of March 31, 2014 and 2015 were as follows:
Japanese yen(millions)2014
Deferred Tax Assets:
Liability for retirement benefits
Net operating losses carried forward
Accrued bonuses to employees
Impairment losses on property, plant and equipment
Unrealized profit eliminated in consolidation (inventories)
Losses on write-down of inventories
Unrealized profit eliminated in consolidation (fixed assets)
Provision for product warranties
Accrued enterprise tax
Retirement benefits for directors and corporate auditors  
Depreciation
Other
Total Deferred Tax Assets
Valuation allowance
Deferred Tax Assets\

Deferred Tax Liabilities:
Fixed Assets
Asset for retirement benefits
Retained earnings of overseas subsidiaries
Reserve for advanced depreciation
Net unrealized gains on available-for-sale securities
Remeasurements of defined benefit plans
Other
Total Deferred Tax Liabilities
Valuation allowance
Deferred Tax Liabilities
Net Deferred Tax Assets

1,420
1,502
960
－
826
651
456
346
290
88
881
1,187
8,607
(252)
8,355

2,463

2015

2015
\

1,637
1,855
855
8
711
709
445
1,004
139
75
867
1,294
9,606
(693)
8,912

$

(3,448)(364)(2,172)
(284)
(736)
(6)
(212)
(7,224)－(7,224)(2,496)(470)(1,786)
(319)
(576)
(46)
(196)
(5,892)－(5,892)\

U.S. dollars(thousands)

\

1,688

13,626
15,441
7,118
70
5,921
5,906
3,709
8,356
1,163
630
7,219
10,772
79,938(5,770)74,168(28,695)(3,035)(18,075)(2,366)(6,128)(52)(1,767)(60,120)－(60,120)$

14,047(Note) Net deferred tax asset for the prior and current fiscal period is included in the following line items of consolidated balance sheet:
Japanese yen(millions)

Current Assets - Deferred tax assets
Current Liabilities - Other current liabilities
Fixed Assets - Deferred tax assets
Fixed Liabilities - Deferred tax liabilities

19 Annual Report 2015

U.S. dollars(thousands)

2014

2015

2015

3,741
4
1,447
2,721

3,774
6
1,611
3,691

31,41353
13,41030,721

The Company and its consolidated subsidiaries are subject to a number of taxes based on income, which, in the aggregate, indicate a statutory tax
rate in Japan of approximately 38.0% and 35.6% for the years ended March 31, 2014 and 2015.
The following table summarizes the significant differences between the statutory tax rate and the Company's
effective tax rate for financial statement purposes for the years ended March 31, 2014 and 2015:
The note is omitted for the year ended March 31, 2014, because the difference between the statutory tax rate and the Company's effective
tax rate after adoption of tax-effect accounting is less than 5%.

2014
Statutory Tax Rate
Adjustments for:		 Different tax rates applied to overseas subsidiaries
		 Tax credit for research and development expenses
		 Per capital inhabitants tax
		Non-deductible expenses
		 Foreign withholding tax
		 Increase(decrease) of retained earnings of overseas subsidiaries
		 Increase (decrease) in valuation allowance		Tax-rate change
		 Net operating losses carried forward of subsidiary		Other
Effective Tax Rate2015

35.6 %
－%
		
		
(4.3)
－
(3.5)
－
0.2
－
0.3
－
0.4
－
2.2
－
(0.2)
－
2.1
－
7.6
－
(1.0)
－
39.4 %－%

Revision of the amounts of deferred tax assets and deferred tax liabilities due to the change in corporate income tax rate
Following the promulgation of the “Act for Partial Revision of the Income Tax Act, etc. ” and the “Act for the Partial Revision of the Local Tax Act,etc. ” on March 31, 2015, the statutory effective tax rate used in thecalculation of deferred tax assets and deferred tax liabilities for the fiscal year
ended March 31, 2015 (However,limited to those that are expected to be reversed on and after April 1, 2015) has been changed from the 35.6%of
the previous fiscal year to 32.5% for those expected to be collected or paid during the period from April 1,2015 to March 31, 2016, and to 32.1% for
those expected to be collected or paid on and after April 1, 2016.
As a result of these changes, deferred tax assets (net of deferred tax liabilities) decreased by \ 278 million($ 2,317 thousand) ,income taxes –deferred recorded in the current fiscal year, valuation difference on available-for-sale securities,  and remeasurements of defined benefit plansincreased by \ 355 million($ 2,957 thousand) , \77 million($ 640 thousand) and \ 0 million($ 5 thousand), respectively.

Annual Report 201520

10. Employees' Severance and Retirement Benefits
The Company and its domestic consolidated subsidiaries have adopted defined benefit retirement plans: cash balance plans and lump-sum payment
plans, as well as defined contribution pension plans.
The following tables provide information on defined benefit plans for the years ended March 31, 2014 and 2015.
Japanese yen(millions)Defined benefit plans

2014(1) Rollforward of retirement benefit obligations, except plans applying simplified method
Beginning balance of retirement benefit obligations
		\ 11,576

Cumulative effects of changes in accounting policies

U.S. dollars(thousands)

2015

2015
\

6,834

$

56,871－

1,229

10,233

Restated balance

11,576

8,064

67,105

		Service costs

581

332

2,766

		Interest costs

232

84

705

		

(120)

376

3,131

(896)

(624)

(5,193)(4,539)－Actuarial loss (gain)
Benefits paid
Effect of transfer to defined contribution pension plan

Ending balance of retirement benefit obligations

\

6,834

\

8,233

－
$

68,515		2014(2) Rollforward of plan assets
Beginning balance of plan assets

\

8,542

2015

2015
\

4,609

$

38,355

		

Expected return on plan assets

171

109

909

		

Actuarial loss (gain)

567

376

3,136

		

Contributions paid by the employer

918

77

643

Benefits paid

(597)

(445)

(3,709)Effect of transfer to defined contribution pension plan
Ending balance of plan assets－(4,992)
\

4,609

\

4,726

－
$

39,335		(3) Rollforward of liability for retirement benefits related to plans applying simplified method
Beginning balance of liability for retirement benefits

2014
\

147

2015

2015
\

162

$

1,351

Retirement benefit costs

36

19

161

Benefits paid

(20)

(5)

(44)

Ending balance of liability for retirement benefits

\

163

\

176

$

1,468

		
(4) Reconciliation of retirement benefit obligations and plan assets and liability (asset) for retirement benefits
Funded retirement benefit obligations

2014\

Plan assets
		
Unfunded retirement benefit obligations
Total net liability (asset) for retirement benefits

\

3,188

2015

2015
\

3,612

$

30,063(4,609)(4,726)(39,335)(1,421)(1,114)(9,271)

3,809

4,797

2,388

\

3,682

39,919$30,647		Liability for retirement benefits

3,709

4,809

40,025

Asset for retirement benefits(1,321)(1,126)(9,378)

Total net liability (asset) for retirement benefits

\

2,388

\

3,682

$

30,647(Note) Include plans applying simplified method
		(5) Retirement benefit costs
Service costs

2014
\

617

2015

2015
\

351

$

2,927

Interest costs

232

84

705

Expected return on plan assets

(171)

(109)

(909)

Net actuarial loss amortization

(924)

(112)

(934)

Other

266

－

－

Total retirement benefit costs

\

20

\

215

$

1,789

Gain (loss) on transfer to contributed pension plan

\

15

\

－

$

－

21 Annual Report 2015

Japanese yen(millions)(6) Remeasurements of defined benefit plans

2014－(7) Accumulated adjustments for retirement benefit, before income tax effectUnrecognized actuarial loss (gain)
Total accumulated adjustments for retirement benefit

2015

－

Recognized actuarial loss (gain)\

U.S. dollars(thousands)

(130)
\

(130)

2014

2015

130

18

130

2015

\

18

(1,085)$(1,085)

2015
156
$

156

		
(8) Plan assets

2014

2015

		Bonds

25%70%

		Equity securities

19%

27%

		

55%

0%

		Other

1%3%

		Total

100%

100%

① Plan assets comprise

Cash and cash equivalents		② Long-term expected rare of return
		 Current and target asset allocations, historical and expected returns on various categories of plan assets have been considered in determining
		the long-term expected rate of return.
		(9) Actuarial assumptions

2014

2015

		Discount rate

2.0%

0.5 ～ 0.7%

		

2.0%

2.0%

The principal actuarial assumptions (expressed as weighed averages) were as follow:
Long-term expected rate of return(10) Payment for contribution plan

2015

2014
\

193

\

471

2015
$

3,922

Annual Report 201522

11. Research and development expenses
Research and development expenses are charged to income as incurred. Research and development expenses for the years ended March 31,
2014 and 2015 were as follows:
Japanese yen(millions)2014\

Research and development expenses

4,573

U.S. dollars(thousands)

2015
\

2015

5,208

$

43,346

12. Derivatives
The following table provides information on derivative instruments as of March 31, 2014 and 2015.
Japanese yen (millions)

March 31, 2014
Forward exchange contracts:
To sell U.S. dollars
To sell EuroTo sell New Zealand dollars
To sell Japanese Yen
To buy Japanese Yen

Contract
amount
\

\

574
299
15
26
3
917

Fair
value
\

\

2
1
0
16
0
19

Gain
(Loss)
\

2
1
0
16
0
19

\

Japanese yen (millions)

March 31, 2015
Forward exchange contracts:
To sell U.S. dollars
To sell EuroTo sell New zealand dollars

Contract
amount\\23 Annual Report 2015

581
102
13
696

Fair
value
\

\

(2)
2
(0)
(0)

\

\

U.S. dollars (thousands)

Gain(Loss)

Contract
amount

(2)
2
(0)
(0)

$ 4,836
850
111$ 5,798

Fair
value
$

$

(20)
17
(0)
(3)

Gain
(Loss)
$

$

(20)
17
(0)
(3)

13. Segment Information(a) General information about reporting segments
The Company and its consolidated subsidiaries are mainly engaged in the manufacture and sale of automotive parts.
Based on function, technological specification and productive structure, the product lines of the Company are classified into two groups, "Manual
Transmission Parts" and Automatic Transmission Parts". The Company, in cooperation with its consolidated subsidiaries, designs strategy andconducts business for these two product lines in Japan and overseas. For each of these product lines, separate financial information is available
among the constituent units of the Company and is evaluated by management in determining how to allocate resources. Accordingly, the reporting
segments of the Company consist of "MT (Manual automotive drivetrain related business)" which manufactures and sells manual transmission partsand "AT (Automatic automotive drivetrain related business)" which manufacturs and sells automatic transmission parts.'(b) Basis of measurement for reporting segment profit or loss, segment assets, segment liabilities and other material items
The accounting policies of the reporting segments are mainly consistent with what is described in Note 1 "Summary of Significant Accounting andReporting Policies". The segment profit (loss) is based on operating income before amortization of goodwill. The prices of the goods traded ortransferred among the segments are mainly determined by considering market prices of the goods.
(c) Information about reporting segment profit or loss, segment assets, segment liabilities and other material items
Reporting segment information for the years ended 31, 2014 and 2015 were as follows :Japanese yen(millions)

Sales:
Manual automotive drivetrain operations
Eliminations (inter-segment net sales)
Net sales to external customers
Automatic automotive drivetrain operations
Eliminations (inter-segment net sales)
Net sales to external customers
Reporting segments total
Other operations
Eliminations (inter-segment net sales)
Net sales to external customers
Operating Income:Manual automotive drivetrain operations
Automatic automotive drivetrain operations
		 Reporting segment total
Other operations
		Sub Total
Non-allocated operating expenses and eliminations
Assets:Manual automotive drivetrain operations
Automatic automotive drivetrain operations
		 Reporting segment total
Other operations
		Sub Total
Corporate and eliminations
Depreciation and Amortization:
Manual automotive drivetrain operations
Automatic automotive drivetrain operations
		 Reporting segment total
Other operations
		Sub Total
Corporate and eliminations
Investment in associates accounted for by equity method:
Manual automotive drivetrain operations
Automatic automotive drivetrain operations
		 Reporting segment total
Other operations
		Sub Total
Corporate and eliminations

U.S. dollars(thousands)

2014

2015

\ 67,963(313)
67,650144,487(2,628)141,859
209,509
32,675(7,922)24,753\ 234,262\ 71,905(457)
71,447
159,431(2,484)
156,947
228,395
34,920(7,304)
27,616\ 256,011$ 598,361(3,804)
594,556
1,326,715(20,671)
1,306,043
1,900,599
290,596(60,781)229,815$ 2,130,415\ 10,227
10,422
20,64995
20,744(1,310)\ 19,434

\

9,374
9,797
19,171(302)
18,869(981)\ 17,887$\ 60,816
117,533
178,349
32,877211,226
19,515\ 230,741\ 67,501
139,139
206,640
38,682
245,323
15,649\ 260,972$ 561,719
1,157,851
1,719,570
321,896
2,041,466
130,224$ 2,171,691

\

2,874
8,056
10,9301,439
12,369(159)\ 12,210

\

3,117
9,840
12,958
1,572
14,530(167)\ 14,363

$

\

\

$

\

484
376
860
344
1,204
－
1,204

\

294
382
676
385
1,062
－
1,062

2015

78,01081,528
159,539(2,516)
157,022(8,170)$ 148,851

25,94381,888107,832
13,088120,920(1,391)$ 119,529

$

2,446
3,182
5,629
3,210
8,839
－
8,839

Annual Report 201524

Japanese yen(millions)2014
Capital Expenditures:
Manual automotive drivetrain operations
Automatic automotive drivetrain operations
		 Reporting segment total
Other operations
		Sub Total
Corporate and eliminations

\

3,739
12,692
16,431
3,492
19,923(125)\ 19,798

U.S. dollars(thousands)

2015
\

4,595
19,597
24,192
3,406
27,599(235)\ 27,363

2015$

38,242
163,079
201,322
28,344
229,666(1,959)$ 227,706

Note : 1. "Other operations" includes businesses which are not part of any of the two reporting segments and contains industrial machine drivetrain operation, clutches
for motorcycle operation, and transport operation, etc.
2. The details of adjustments are as follows :(a) "Non-allocated operating expenses and eliminations" of Operating Income \(981) million($(8,170) thousand) consists of "Elimination of intersegment
transactions" \619 million($5,156 thousand), "Company-wide expense" which is not allocated to reporting segments \(1,654) million($(13,765) thousand)and "other adjustments" \52 million($438 thousand).
"Company-wide expense" mainly consists of general and administrative expenses and expense for new-product development not(b) "Corporate and eliminations" of Assets \15,649 million($130,224 thousand) consists of "Company-wide assets" that is not allocated to reporting segments\21,620 million($179,917 thousand), "Elimination of intersegment transaction" \(5,870) million($(48,850) thousand) and "other adjustments" \(101)million($(842) thousand).
"Company-wide assets" mainly consists of the cash and cash equivalents and securities that are not attributable to any reporting segments.
(c) "Corporate and eliminations" of Depreciation and Amortization \(167) million($(1,391) thousand) consists of "Adjustment of unrealized gain for intersegment
transaction of fixed assets" \(167) million($(1,391) thousand).
(d) "Corporate and eliminations" of Capital Expenditures \(235) million($(1,959) thousand) consists of "Adjustment of unrealized gain for intersegment
transaction of fixed assets" \(235) million($(1,959) thousand).
3. The segment income is adjusted to conform to operating income of "consolidated statement of income".

(1) Information about products and services
As the segment of products and services are the same as the reporting segment, description of this item is omitted.
(2) Information about geographic areas for the years ended March 31, 2014 and 2015 were as follows :Japanese yen(millions)

Sales:
Japan
America
Asia-Oceania
Other
Tangible Assets:
Japan
America
Asia-Oceania
Other

U.S. dollars(thousands)

2015

2014

2015

\ 109,863
48,21863,005
13,176\ 234,262\ 120,818
46,55772,702
15,933\ 256,011$ 1,005,395
387,431604,993
132,594$ 2,130,415\ 39,626
20,31843,401475\ 103,820\ 46,263
22,532
55,774610\ 125,182$ 384,987
187,508
464,132
5,079$ 1,041,707      The Company's operations are classified into geographical areas as follows: Japan, America (including Mexico, Panama), Asia-Oceania (Thailand,
Malaysia, China, Korea, Indonesia, Vietnam, Australia, United Arab Emirates, New Zealand and India) and Other (Europe).

(3) Information about major customer for the years ended March 31 2014and 2015 were as follows :Japanese yen(millions)Company Name

Sales Segment

JATCO Corporation

AT and MT

25 Annual Report 2015

U.S. dollars(thousands)

2014

2015

2015

\ 27,303\ 22,562$ 187,754

14. Related Party Transactions
For the years ended March 31, 2014, the Company and its consolidated subsidiaries had operational transactions with Aisin AW Co., Ltd and Aisin
Holdings of America, Inc., which are the subsidiaries of Aisin Seiki Co., Ltd., holding 33.8% of the Company's voting rights.
A summary of the significant transactions between the Company and its consolidated subsidiaries and such companies for the years ended March
31, 2014 and 2015 were as follows:
March 31, 2014
CapitalSubjects

Categories

Name

AddressThe
Company

Other relatedcompany's
subsidiary

Aisin AW
Co., Ltd.

Anjo City
Aichi pref.

\ 26,480

Dynax
Corporation

Other relatedcompany's
subsidiary

Aisin AW
Co., Ltd.

Anjo City
Aichi pref.

Aisin
EXEDY
Other related
Holdings
Americacompany'sof America,
Corporation subsidiary
Inc.

Indiana
U.S.A.

Japanese yen(millions)Operation

Voting rights(%)

Manufacturing
automotive
parts

－

\ 26,480

Manufacturing
automotive
parts

－

$ 282,290

Administrationof overall
40%
North
(directly held)
Americanoperations

RelationshipAmountTransaction Japanese yen
Business(millions)relationshipSale ofproducts

Sale ofproducts
Concurrently
servingas directors\ 4,440

Sale ofproducts

Sale ofproducts

Dept

Interest
expenseBalance
Accounts

Japanese yen(millions)

Accounts
receivable\ 970

Advanced
received\ 22\ 2,735

Accounts
receivable

\

\ 17

Current
portion of
long-term
debt\ 1,771466(Transaction terms and policy determination thereof)
With regard to sale of products and debt, prices and other transaction terms are determined by negotiation in consideration of market situations.
Consumption taxes are included in the balance, but not in the trade amounts.

March 31, 2015
Not Applicable.

Annual Report 201526

15. Per Share Data
Per share data for the years ended March 31, 2014 and 2015 were as follows :Japanese yen

Net income
Net income - diluted
Net assets

U.S. dollars

2014

2015

\ 255.58－
3,032.56\ 197.96－
3,294.13

2015
$

1.65
－
27.41

Diluted net income per share is not disclosed because potentially dilutive securities have not been issued.
The information on which per share data was calculated for the years ended March 31, 2014 and 2015 was as follows:
Japanese yen(millions)2014
Net income per share of common stock
Net income		Amounts not attributable to ordinary shareholders
Net income attributable to ordinary shareholders\ 12,269－\ 12,269

The weighted average number of shares (thousands)

48,004

U.S. dollars(thousands)

2015
\
\

9,503
－
9,503

2015
$
$

79,087－79,08748,00916. Changes in Net Assets(a) Shares issued / Treasury stock

March 31, 2014
Shares issued:
Common stock (thousands)
Treasury stock:
Common stock (thousands)

Number of shares
as of April 1, 2013

Number of shares
as of March 31, 2014

Increase

Decrease

48,593
48,593－－－－

48,593
48,593

594
594

0
0

8
8

586
586

The decrease in the number of treasury stock-common stock of 8 thousand shares is due to investing stock from Mitsubishi UFJ Trust and Banking
Corporation (ESOP Trust Account) in employees who become beneficiaries of the ESOP based on the Company’s policy of investing stock.
The number of treasury stock as of March 31, 2014 includes the Company’s stock amounted to 82 thousand shares held by The Master Trust Bankof Japan ,Ltd. (ESOP Trust Account)
The increase in the number of treasury stock-common stock of 0 thousand shares is due to purchase of fractional shares of the stock.

March 31, 2015
Shares issued:
Common stock (thousands)
Treasury stock:
Common stock (thousands)

Number of shares
as of April 1, 2014

Number of shares
as of March 31, 2015

Increase

Decrease

48,593
48,593－－－－

48,593
48,593

586
586

0
0

3
3

583
583

The decrease in the number of treasury stock-common stock of 3 thousand shares is due to investing stock from Mitsubishi UFJ Trust and Banking
Corporation (ESOP Trust Account) in employees who become beneficiaries of the ESOP based on the Company’s policy of investing stock.
The number of treasury stock as of March 31, 2015 includes the Company’s stock amounted to 78 thousand shares held by The Master Trust Bankof Japan ,Ltd. (ESOP Trust Account) and 40 thousand shares held by The Master Trust Bank of Japan, Ltd. (BIP Trust Account)
The increase in the number of treasury stock-common stock of 0 thousand shares is due to purchase of fractional shares of the stock.

27 Annual Report 2015

(b) Dividends(1) Dividends
March 31, 2014
Cash dividends paid

Dividends per share

Japanese yen (millions)(Japanese yen)

Common stock\ 1,202

Common stock

Resolution

Type of shares

Ordinary general
meeting of theshareholders on
June 24, 2014

Common stock\ 2,164$ 18,008

Board of Directors'
meeting on
October 30, 2014

Common stock\ 1,683$ 14,006

Resolution

Type of shares

Ordinary general
meeting of theshareholders on
June 21, 2013
Board of Directors'
meeting on
October 29, 2013

Cut-off date

Effective date

\ 25.0March 31, 2013

June 24, 2013

\ 1,202\ 25.0

September 30, 2013

November 25, 2013

Cash dividends paid

Dividends per share

Japanese yen (millions)
U.S. dollars (thousands)(Japanese yen)
(U.S. dollars)

Cut-off date

Effective date

\ 45.0$ 0.37

March 31, 2014

June 25, 2014

\ 35.0$ 0.29September 30, 2014

November 25, 2014

March 31, 2015

(2) Dividends, of which cut-off date was in the year ended March 31, 2015, and effective date of which will be in the year ending March 31, 2016
Cash dividends paid
Resolution

Type of shares

Ordinary general
meeting of theshareholders on
June 26, 2015

Common stock

Japanese yen (millions)
U.S. dollars (thousands)\ 1,684$ 14,017

Source ofdividends

Dividends per share

Retainedearnings\ 35.0$ 0.29(Japanese yen)
(U.S. dollars)

Cut-off date

Effective date

March 31, 2015

June 29, 2015

Annual Report 201528

17. Financial Instruments
The Company and its consolidated subsidiaries manage funds only in short-term deposits, raise funds by bonds or loans and engage in derivativetransactions for the purpose of avoiding the risk of foreign exchange rate fluctuation and ensuring steady cash flow, and not for trading or speculative
purposes. Hedging accounting of derivative transactions was not applied as the necessary conditions were not met.
Notes and accounts receivable have exposure to the credit risk of customers. The Company and its consolidated subsidiaries are managing such risk
by controlling the due date and balance of receivables from customers and watching their credit risk conditions in accordance with the Group credit
regulations. Furthermore, to avoid the risk of foreign exchange rate fluctuation and to ensure steady cash flow from accounts receivable, the Company
and its consolidated subsidiaries engage in derivative transactions (forward currency exchange contracts).
Certain securities include exposure to market risk. The Company and its consolidated subsidiaries hold such securities for the purpose of maintaining
relationships with customers or suppliers and not for trading purposes. The fair values of the securities are periodically reported to the Board of Directors
at the board meeting of the Company.
Due dates of notes and accounts payable are mainly within one year.
Short-term borrowings are mainly for the purpose of working capital and bonds payable and long-term debt are mainly for the purpose of funding capital
investment.
Derivative transactions are entered and controlled by the financial department with approval of the financial manager under the rules of each company,
which prescribe details such as the department in charge of transactions and the limits for transaction. To reduce credit risk,
transaction counterparties are limited to major financial institutions.
Notes and accounts payable and borrowings have exposure to liquidity risk. The Company and its consolidated subsidiaries are controlling such risk byplanning monthly budgets of payment.
The carrying amounts of the financial instruments included in the consolidated balance sheet and their fair values at March 31, 2014 and 2015 were as follows.
Japanese yen (millions)

March 31, 2014
Cash and time deposit
Notes and accounts receivable
Investments in securities
Available-for-sale securities
Notes and accounts payable
Short-term borrowings
Accrued expenses
Accrued income taxes
Bonds payable
Long-term debt
Derivative transactions

Book
value

Fair
value

\ 35,328
43,051\ 35,328
43,051

2,576(19,845)(4,380)(8,299)(4,597)(7,000)(14,719)
19

2,576(19,845)(4,380)(8,299)(4,597)(7,042)(14,484)
19

Difference
－
－

\

－
－
－
－
－
(42)
(△235)－

Japanese yen (millions)

March 31, 2015
Cash and time deposit
Notes and accounts receivable
Investments in securities
Available-for-sale securities
Notes and accounts payable
Short-term borrowings
Accrued expenses
Accrued income taxes
Bonds payable
Long-term debt
Derivative transactions

29 Annual Report 2015

Book
value

Fair
value

\ 33,808
46,651\ 33,808
46,651

3,281(20,870)(5,142)(8,638)(1,562)(7,000)(26,197)(0)

3,281(20,870)(5,142)(8,638)(1,562)(7,041)(25,660)(0)U.S. dollars (thousands)
Book
value

Fair
value

－
－

$ 281,336
388,215$ 281,336
388,215

$

－
－
－
－
－
(41)
(△537)－

27,304(173,671)(42,790)(71,888)(13,004)(58,250)(218,007)(3)

27,304(173,671)(42,790)(71,888)(13,004)(58,599)(213,538)
(3)

－
－
－
－
－
(349)
(△4,469)－

Difference\

Difference－－1. The methods used to determine the fair value of financial instruments and derivative transactions are as follows:As cash and time deposit, notes and accounts receivable, notes and accounts payable, short-term borrowings, accrued expenses and accrued
income taxes are settled in the short term, the carrying amounts are considered to approximate fair values. Therefore, carrying amounts arestated at fair values.
Investments in securities (Available-for-sale securities) are stated at fair value. Information regarding investments in securities classified by the
purposes for which they are held is noted in the relevant section of this report.
Bonds payable is stated at fair value based on the method in which total amount of principal and interest is discounted at the interest rate thatwould be applied if each company borrowed the same, but new, principal amount.
Long-term debt is stated at fair value based on the method in which total amount of principal and interest is discounted at the interest rate thatwould be applied if each company borrowed the same, but new, principal amount.
Derivative information is noted in the relevant section of this report.
2. Financial instruments for which the fair value is considered difficult to determine
Non-listed equity securities and investments in non-consolidated subsidiaries and affiliates (book value \1,112 million ($9,261 thousand)) have nomarket price available and are considered to be financial instruments for which the fair value is difficult to determine.
Therefore, these instruments are not included in "Investment insecurities (Available-for-sale securities)" in the table above.
3. Receipt schedule for current credit after the consolidated balance sheet dateJapanese yen (millions)
2016
Cash and time deposit
Notes and accounts receivable\ 33,808
46,651\ 80,460

U.S. dollars (thousands)

2017 ～2020 2021～2025

2026 and
thereafter

\

\

\

－
－
－

\
\

－
－
－

\

－
－
－

2016
$ 281,336
388,215$ 669,551

2017 ～2020 2021～2025
$
$

－
－
－

$
$

－
－
－

2026 and
thereafter
$
$

－
－
－

4. Payment schedule for long-term debt after the consolidated balance sheet dateJapanese yen (millions)
2016
Bonds Payable
Long-term debt\－
\ 4,177\ 4,1772017 ～2020 2021～2025\ 7,000\ 20,706\ 27,706－\\ 1,314\ 1,314

U.S. dollars (thousands)
2026 and
thereafter
\
\
\

－
－
－

2016
$
－
$ 34,761$ 34,761

2017 ～2020 2021～2025$ 58,250$ 172,307$ 230,558$－$ 10,938$ 10,938

2026 and
thereafter
$
$
$

－
－
－

Annual Report 201530

18. Contingent Liabilities
Contingent liabilities as of March 31, 2014 and 2015 were as follows :Japanese yen(millions)2014
Trade notes receivable discounted
Trade notes receivable endorsed

\

980
2

U.S. dollars(thousands)

2015
\

3,652
5

2015
$

30,39643

19. Comprehensive Income
Amounts reclassified to net income (loss) in the current period that were recognized in other comprehensive income in the current or previous periods
and tax effects for each component of other comprehensive income were as follows
Japanese yen(millions)2014
Valuation difference on available-for-sale securities
Increase (decrease) during the year
Reclassification adjustments
Sub-total, before tax
Tax (expense) or benefit
Sub-total, net of tax
Deferred gains or losses on hedges
Increase (decrease) during the year
Remeasurements of defined benefit plans
Increase (decrease) during the year
Reclassification adjustments
Sub-total, before tax
Tax (expense) or benefit
Sub-total, net of tax
Share of other comprehensive income of associates accounted for using equity method
Increase (decrease) during the year
Reclassification adjustments
Sub-total, net of tax
Total other comprehensive income

31 Annual Report 2015

\

489
－
489
(167)
322

U.S. dollars(thousands)

2015
\

697
－
697
(167)
529

2015
$

5,800
－
5,800
(1,394)
4,405

9,946

8,604

71,598

－
－
－
－
－

18
(130)
(111)
39
(71)

156
(1,085)
(929)
331
(597)

14
－
14
10,282

58
(81)
(23)
9,038

485
(681)
(196)
75,21020. Cash and Cash Equivalents
Cash and Cash Equivalents as of March 31, 2014 and 2015 were as follows:
Japanese yen(millions)

Cash and deposit
Deposit period is the fixed deposit more than three months
Cash and cash equivalents

2014

2015

\ 35,328(95)
35,233\ 33,808(98)
33,710U.S. dollars(thousands)

2015$ 281,336(816)
280,519

Annual Report 201532

Independent Auditors' Report
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES

33 Annual Report 2015

Corporate Data
BOARD OF DIRECTORSAND CORPORATE AUDITORSEXECUTIVE OFFICERS

As of June 30, 2015

As of June 30, 2015

As of March 31, 2015

President and Chief Executive Officer :Hidehito Hisakawa

Senior Executive Managing Officer :Masayuki Matsuda
Hisayasu Masaoka
Shogo Okamura
Toshimasa Doi

Name:
EXEDY Corporation

Number of Issued Shares:
48,594 thousand shares

Established:
July 1, 1950

Number of Shareholders:
12,449Paid-in Capital:￥8,284 million

Average number of shares
held by one Shareholder:
3,903 shares

Director : Haruo Shimizu
Masayuki Matsuda
Hisayasu Masaoka
Shogo Okamura
Hiroshi Toyohara
Yoshihiro Kojima
Tadashi Nakahara
Fumio Fujimori
Koji Akita
Auditors : Keizo Nishigaki
Kanshiro Toyoda
Tadashi Fukuda
Satoshi Tsubota

Executive Managing Officer :Yoshio Katayama
Senior Executive Officer :Hiroshi Toyohara
Makoto Ichikawa
Executive Officer :Tadashi Nakahara
Tetsuya Yoshinaga
Shinji Fujimoto
Yoshimi Osanai
Tomoaki Goto
Junji Yamakawa

Yoshihiro Kojima
Kenji Matsuda
Masahito Baba
Yoshihiro Yamamura
Shigeo Tabata
Mitsuhiro Gondo
Yuzuru Hirose

OUTLINE OF COMPANY

Number of Employees:
2,581
Number of Authorized Shares:
168,000 thousand shares

Listed on First Sections,Tokyo Stock Exchange

DOMESTIC NETWORKHead Office
1-1-1 Kidamotomiya, Neyagawa-shi, Osaka, 572-8570
Tel: 81-72-824-6933 Fax: 81-72-821-7913

Tokyo Sales Office

Hiroshima Sales Office
Crest Court Kaita Sakaemachi Bldg. Room 202, 6-6
Sakaemachi, Kaita-cho, Aki-gun, Hiroshima, 736-0043
Tel: 81-82-821-0021 Fax: 81-82-823-6620

Shishido Building 6th Floor, 1-15-14 Sakai, Musashino City,
Tokyo, 180-0022
Tel: 81-4-2250-0751 Fax: 81-4-2253-1110

Ueno Division< Utsunomiya Office >Kawagoe Plant

Data Service Utsunomiya Bldg. 5th Floor, 4-8-22 Motoimaizumi,
Utsunomiya-shi, Tochigi, 321-0954
Tel: 81-28-614-3620 Fax: 81-28-614-3680

Kanagawa Sales Office
Asahi Mutual Life Insurance Co. Bldg., 2nd Floor, 4-1-10
Naka-cho, Atsugi-shi, Kanagawa, 243-0018
Tel: 81-46-297-7051 Fax: 81-46-225-5568

Shizuoka Sales Office
RICOH Solutions Higashi Shizuoka Bldg., 2nd Floor, 6-20
Aratajima-cho, Fuji-shi, Shizuoka, 417-0043
Tel: 81-545-54-0861 Fax: 81-545-54-0862

Hamamatsu Sales Office
CITY21 Bldg., 6th Floor, 320-4 Sunayama-cho, Naka-ku,
Hamamatsu-shi, Shizuoka, 430-0926
Tel: 81-53-413-6011 Fax: 81-53-413-6012

Chubu Sales Office2418 Ota-cho, Iga-shi, Mie, 518-0825
Tel: 81-595-23-8101 Fax: 81-595-24-5521
1-103-25 Yoshinodai, Kawagoe-shi, Saitama, 350-0833
Tel: 81-49-225-0601 Fax: 81-49-225-0600

Hiroshima Plant
6-11 Taguchi Kenkyu Danchi, Higashi Hiroshima-shi,
Hiroshima, 739-0038
Tel: 81-82-425-3434/5 Fax: 81-82-425-3436

DYNAX Corporation
1053-1 Kamiosatsu, Chitose-shi, Hokkaido, 066-8585
Tel: 81-123-24-3247 Fax: 81-123-49-2050

EXEDY Casting Co., Ltd.
112 Haishi, Fukuchiyama-shi, Kyoto, 620-0955
Tel: 81-773-22-1156 Fax:81-773-23-8477

EXEDY Kyoto Co., Ltd.
15 Kizuogawa, Kizugawa-shi, Kyoto, 619-0214
Tel: 81-774-73-0631 Fax: 81-774-73-2147

Tosho Bldg., 2nd Floor, 1-16-5 Mikawaanjo-cho, Anjo-shi,
Aichi, 446-0056
Tel: 81-566-71-2750 Fax: 81-566-72-7015

EXEDY Precision Co., Ltd.
104-1 Joden, Mimasaka-shi, Okayama, 701-2625
Tel: 81-868-74-3501 Fax: 81-868-74-3503

EXEDY Logistics Co., Ltd.
1-30-1 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-822-1462 Fax: 81-72-822-1174

EXEDY Trading Co., Ltd.
1-1-33 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-824-7633 Fax: 81-72-822-1016

EXEDY Sun Co., Ltd.
1-16-5 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-822-1147 Fax: 81-72-824-3871

EXEDY Electric Facilities Co., Ltd.
8-6 Hyuga-cho, Moriguchi-shi, Osaka, 570-0023
Tel: 81-6-6997-3131 Fax: 81-6-6997-3150

Nippon Retarder System Co., Ltd.
1-1-33 Kidamotomiya, Neyagawa-shi, Osaka, 572-0822
Tel: 81-72-820-0911 Fax: 81-72-824-1035

EXEDY Fukushima Co., Ltd.
65, Torimiyama, Matsuyama-machi, Kitakata-shi, Fukushima, 966-0901
Tel: 81-241-23-3100 Fax: 81-241-25-7367

EXEDY SB Hyogo Co., Ltd.
1-10-9, Shin-machi, Nishi-ku, Osaka-shi, Osaka, 550-0013
Tel: 81-6-7634-8017

OVERSEAS NETWORKEXEDY America Corporation (EAC)
2121 Holston Bend Drive, Mascot, TN 37806, U.S.A.
Tel: 1-865-932-3700 Fax: 1-865-932-2230

EXEDY Globalparts Corporation (EGP)
8601 Haggerty Road South, Belleville, MI 48111, U.S.A.
Tel: 1-734-397-3333 Fax: 1-734-397-7300

EXEDY-DYNAX America Corporation (EDA)
8601 Haggerty Road South, Belleville, MI 48111, U.S.A.
Tel: 1-734-397-6556 Fax: 1-734-397-6566

DYNAX America Corporation (DXA)
568 East Park Drive, Roanoke, VA 24019, U.S.A.
Tel: 1-540-966-6010 Fax: 1-540-966-6011

EXEDY DYNAX MEXICO, S.A. DE C.V. (EDM)
CIRCUITO PROGRESO #101, PARQUE INDUSTRIAL DE LOGÍSTICA
AUTOMOTRIZ (PILA), PEÑUELAS; AGUASCALIENTES, MEXICO, CP 20340
Tel: 52-449-929-2104 Fax: 52-449-139-4904

EXEDY Mexico Aftermarket Sales, S.A. de C.V. (EMA)
Vía Adolfo Lopez Mateos 9, Col. Lomas Verdes, Naucalpan,
Edo. De Mexico, 53120, Mexico
Tel: 52-55-5572-5127

EXEDY Latin America S.A. (ELA)
P.H. World Trade Center, Piso 3, Oficina 303, Marbella, Panama City,
Republic of PANAMA
Tel: 507-395-7122 Fax: 507-395-7124

EXEDY Clutch Europe Ltd. (ECE)
Unit2, Rokeby Court, Manor Park, Runcorn, Cheshire, WA7 1RW, U.K.
Tel: 44-1928-571850 Fax: 44-1928-571852< Moscow Representative Office >Park Place, Office E311, Leninskiy prospect 113/1, Moscow,
117198, RUSSIA
Tel: 7-495-510-6175 Fax: 7-495-510-6176

EXEDY DYNAX Europe Ltd. (EDE)
2800 Tatabanya, Szarkalab UT6, HUNGARY
Tel: 36-34-311-117 Fax: 36-34-311-122

EXEDY Australia Pty. Ltd. (EAP)
21 Fiveways Boulevard, Keysborough,Victoria 3173, AUSTRALIA
Tel: 61-3-9701-5556 Fax: 61-3-9701-5684

EXEDY New Zealand Ltd. (ENZ)
151 Wairau Road Glenfield Auckland, NEW ZEALAND
Tel: 64-9-444-0901 Fax: 64-9-444-0903

EXEDY Thailand Co., Ltd. (EXT)EXEDY Corporation Asean Regional Office (EAR)
700/316 Moo 6, Bangna-Trad Road, Tumbon Don Hua Roh,
Amphur Muang, Chonburi 20000, THAILAND
Tel: 66-38-214-423 Fax: 66-38-214-422

EXEDY ENGINEERING ASIA Co., Ltd. (EEA)
700/552 Moo 6, Bangna-Trad Road, Tumbon Don Hua Roh,
Amphur Muang, Chonburi 20000, THAILAND
Tel: 66-38-214-423 Fax: 66-38-214-422

EXEDY Friction Material Co., Ltd. (EFM)
700/359 Moo 6, Bangna-Trad Road, Tumbon Don Hua Roh,
Amphur Muang, Chonburi 20000, THAILAND
Tel: 66-38-743-923 Fax: 66-38-743-927

EXEDY (Malaysia) Sdn.Bhd. (EXM)
PT 16748, Jalan Permata 1/5, Arab-Malaysian Industrial Park
71800 Nilai, Negeri Sembilan, MALAYSIA
Tel: 60-6-7992988 Fax: 60-6-7996388

PT. EXEDY Manufacturing Indonesia (EMI)Jl. Permata V Lot EE 3 Kawasan Industri KIIC Karawang 41361
Jawa Barat, INDONESIA
Tel: 62-21-89114666 Fax: 62-21-89114568

PT. EXEDY PRIMA INDONESIA (EPI)
Jl. Gardu Induk PLN No.5, Margomulyo, Tandes, Surabaya 60187,
East Java, Indonesia
Tel: 62-31-2977777 Fax: 62-31-7491739

EXEDY Vietnam Co., Ltd. (EXV)Khai Quang Industrial Zone, Vinh Yen City, Vinh Phuc Province,
Socialist Republic of VIETNAM
Tel: 84-211-3721252 Fax: 84-211-3721253

EXEDY Chongqing Co., Ltd. (EXC)
No.4 Longjing Road，North New Economic Development Zone，
Chongqing，401122, CHINA
Tel: 86-23-62924439 Fax: 86-23-62900348

EXEDY DYNAX Shanghai Co., Ltd. (EDS)
1399 Chenqiao Road Fengxian District, Shanghai, China 201401
Tel: 86-21-67109075 Fax: 86-21-37565209

EXEDY Guangzhou Co., Ltd. (EGC)

EXEDY BEIJING Co., Ltd. (EBC)
Parts wholesale hall No.3063-3065, Wufangtianya Auto
Accessories & Parts Market , Chaoyang district, Beijing, CHINA
Tel: 86-10-67297987

DYNAX Industry (Shanghai) Co., Ltd. (DXS)
No.350 Rongxiang Road, Songjiang Export Processing Zone,
Shanghai 201613,CHINA
Tel: 86-21-57748388 Fax: 86-21-57748389

EXEDY India Ltd. (EIL)< Aurangabad Plant >Plot No.L-4, M.I.D.C. Industrial Area, Chikalthana, Aurangabad431 210, Maharashtra, not M.H.INDIA
Tel: 91-240-2484014 Fax: 91-240-2484403< Greater Noida Plant >Plot No.9, Udyog Kendra Industrial Area, Greater Noida, 201 304,
U.P., INDIA
Tel: 91-750-3131000 Fax: 91-120-2397086

EXEDY Clutch India Pvt. Ltd. (ECI)
Plot No 5-P, 9-18, 19P, 32-38, Narsapura Industrial Area, Appasandra
Village, Appasandra Village, Kolar, INDIA
Tel: 91-8152-244-004

EXEDY Middle East FZCO (EME)
P.O.BOX 18199, Warehouse No. ZE5 & ZE6 Jebel Ali Free
Zone, Jebel Ali Dubai, U.A.E.
Tel: 971-4-883-2244 Fax: 971-4-883-2500< Amman Representative Office >Room No.103, 1st Floor, AI Housanie Bldg. #6 Salem Moh'd
AI-Ekdhah Street Sweifieh, Wadi AI-Saier, Amman, JORDAN
Tel: 962-658-13215 Fax: 962-658-13015< Nairobi Representative Office >International House, 1st Floor, Room No.12, Mama Ngina Street,
P.O. Box 41931-00100, Nairobi, KENYA
Tel: 254-20-221-1214 Fax: 254-20-221-5700< Riyadh Representative Office >Room #1 AI Edressi Bldg, Price Fahed Bin Ibrahim St.
In front of AL-Majal Centre, Riyadh, Kingdom SAUDI ARABIA
Tel: 966-121-48431 Fax: 966-121-48728

EXEDY SOUTH AFRICA (PTY) LTD (ESA)
49 Loper Avenue, Aeroport, Kempton Park, South Africa

No.406 E-Area, Longfu Car Accessories Centre, Hengfu Road,
Guangzhou, CHINA
Tel: 86-20-83489166 Fax: 86-20-83489370

Annual Report 201534

ANNUAL REPORT 2015
Year Ended March 31, 2015

Mission Statement
The Shape of Our Future: “Creation of Fulfillment”
Each employee, with a good conscience and hope for the future,
will create fulfillment for our society.
Through advanced technology and scrupulous attention to detail,we will create fulfillment for our customers.
With pride and a desire to grow, we will create fulfillment
for the EXEDY family.

1-1-1, Kidamotomiya, Neyagawa-shi, Osaka, 572-8570, Japan
Tel: 81-72-822-1152 Fax: 81-72-822-7552
URL http://www.exedy.com

H Printed in Japan
2015.7.800. 602 ○