Consolidated Financial Highlights
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIESAs of March 31, 2013 and 2014
Japanese yen(millions)

U.S. dollars(thousands)%
Charge

2013

2014

2014

2013/2014\ 202,236\ 234,262$ 2,276,156+15.8%

9,723

12,269119,209+26.2%

Total assets

196,375

230,741

2,241,945+17.5%Net assets

135,711

155,931

1,515,070+14.9%For the year:
Net sales
Net income
At year-end:

Japanese yen

Per share data:

U.S. dollars

Net income\ 201.95\ 255.58

2.48+26.6%Net assets

2,642.60

3,032.56

29.47+14.8%

50.00

70.00

0.68

+40.0%Cash dividends$

Note：Dollar figures are translated, for convenience only, at the rate of \ 102.92 to U.S. $1.00.

Net Sales(Millions of yen)

234,2622014

202,236

2013

2012

201,932

2012

2011

196,4522011

0

50,000100,000

150,000

200,000

250,000

Net Income(Millions of yen)

2014

12,2692013

2011

13,0242,000

Annual Report 2014

4,000

6,000

268.32113.72
0

20

40

60

80

100 120 140 160 180 200 220 240 260 280

Net Assets Per Share of Common Stock

8,000

10,00012,00014,000(Yen)

3,032.56

2014

2,642.60
2,386.53

2011

2,279.57

2010

5,524

0

191.21

2012

9,222

2010

201.95

2013

9,723

2012

255.58

2010

152,671

(Yen)

2014

2013

2010

1

Net Income Per Share of Common Stock

2,115.38

0

500

1,000

1,500

2,000

2,500

3,000

Business Operations
Review of Fiscal Year 2013

Outlook of Fiscal Year 2014

Steady orders in domestic, release in the newoverseas bases and the effect of the depreciation of theyen had contributed in the process of beating all previous
yearly sales records. Although we established new
facilities in India and Mexico and increase of ASEAN labor
expenses, we made a radical cost reduction in domestic.
The consolidated financial results of the fiscal year are
listed as following: Sales 234.3 billion yen (increase of
15.8%), Operating Profit 19.4 billion yen (35.3% increase),
Ordinary Profit 21.0 billion yen (28.8% increase), Current
Term Net Profit 12.3 billion yen (26.2% increase).

The outlook of the next fiscal year is that sales willfurther increase with the majority of sales to be fromoverseas. In regards to profit, the cost of establishingfacilities, ASEAN labor expenses, depreciation expenses
and high energy cost are forces that can make profit
making difficult. By focusing on production of all EXEDY
groups as one company, we can emerge to have anothersuccessful year. Sales 245.0 billion yen (increase of 4.6%
from current year), Operating Profit 20.0 billion yen (2.9%
increase), Ordinary Profit 19.0 billion yen (9.6% decrease),
Current Term Net Profit 11.5 billion yen (6.3% decrease).
June, 2014
Haruo Shimizu
President and Chief Exective Officer

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

Annual Report 20142

Consolidated Sales (Unit : \ million)
TS, Motorcycle

ATMT

234,262

FY2013
FY2012

202,236

FY2011201,932

FY2010196,452
152,671

FY200950,0003

Annual Report 2014

100,000

150,000

200,000

250,000
Annual Report 20144

Consolidated Sales (Unit : \ million)
TS, Motorcycle

ATMT

234,262

FY2013
FY2012

202,236

FY2011201,932

FY2010196,452
152,671

FY200950,0003

Annual Report 2014

100,000

150,000

200,000

250,000
Annual Report 2014

4

Topics of the Year
ManufacturingStarting Manufacturing at the New Factory in Mexico and India.
The new factory which was proceeding construction in EXEDY DYNAXMEXICO, S.A. C.V. was completed and production has started up in order
to cope with the expansion of demand for automobiles in North America
and Latin America.

EXEDY Clutch India Pvt. Ltd. which was proceeding construction was completed andproduction has started up in order to cope with the expansion of demand for automobiles and motorcycles in India.

Ecology
EXEDY’s Evacuation Area
Construction Completion.
The completion of construction of EXEDY’s
evacuation area was celebrated on Aug. 29th,
2013. The facility includes solar panels that
operate LED lighting as well as toilets that canbe assembled during emergencies.

Support Activities
The Activity of female athletes
at the 2014 Sochi Olympics.
Employees of DYNAX Corporation, a company affiliatedwith EXEDY, had participated in the Sochi Olympics asmembers of Japan women's national ice hockey team.

Haruna Yoneyama

5

Annual Report 2014

Chiho Osawa

Tomoko Sakagami

Consolidated Five-Year Summary
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31
Japanese yen(millions)2010
For the year:
Net sales
Net income

2011

U.S. dollars(thousands)

2012

2014

2013

2014

		
		
		
		
		
		
\ 152,671\ 196,452\ 201,932\ 202,236\ 234,262$ 2,276,156

5,524

13,024

9,222

9,723

12,269119,209

		
		
		

		
		

		
		
		

		
		

Total assets\ 153,426\ 164,417\ 176,038\ 196,375\ 230,741$ 2,241,945

Current assets

81,47891,136

96,13897,723

114,307

1,110,639

Property, plant and equipment

64,98665,39571,092

88,590103,820

1,008,745

Current liabilities

32,911

36,15637,487

38,734

48,326

469,549

At year-end:

Long-term debt
Net assets
Shareholders' equity ratio
Retained earnings
Per share data:
Net income
Net income - diluted
Net assets

3,099

4,200

9,838

14,904

19,160186,164

109,096

116,820122,042

135,711

155,931

1,515,070

67.0 %
92,14067.0 %
102,979

65.3 %
109,607		

63.1 %

64.6 %
116,91463.1%

126,783

1,231,860

				
		U.S. dollars				Japanese
yen
		
		
		
\ 113.72\ 268.32\ 191.21\ 201.95\ 255.58

－

－

－

－

－

$

2.48
－

2,115.38

2,279.57

2,386.53

2,642.60

3,032.56

29.47

Note : Dollar figures are translated, for convenience only, at the rate of \ 102.92 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

29

Corporate Data

30

Annual Report 20146

Consolidated Balance Sheets
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIESAs of March 31, 2013 and 2014
Japanese yen(millions)

ASSETS

U.S. dollars(thousands)

2014

2013

2014

Current Assets:		
Cash and cash equivalents (Note 15)\

Time deposits

35,233$ 342,334

71

95

923

39,81643,047418,257

25,593\

Notes and accounts receivable (Notes 4, 15 and 17) 		Trade

5

12

117

(103)

(118)

(1,147)

Inventories (Notes 2 and 4)

24,93827,558

267,761

Deferred tax assets (Note 7)

3,141

3,742

36,358		Non-consolidated subsidiaries and affiliates		Allowance for doubtful accounts

Short-term loans to non-consolidated subsidiaries and affiliates
Other current assets
		

Total current assets

518

549

5,334

3,744

4,189

40,702

97,723

114,307

1,110,639

9,037

9,478

92,091						Property, Plant and Equipment (Note 4) :		
Land
Buildings and structures

50,48960,179584,716

Machinery and vehicles

125,840

146,309

1,421,580

Tools and furniture

44,472

49,623482,151

Construction in progress

17,038

11,079107,647		Less - accumulated depreciation		

Total property, plant and equipment

246,876

276,6682,688,185(158,286)(172,848)(1,679,440)

88,590103,820

1,008,745

2,093

2,606

25,321856

1,501

14,584						Investments and Other Assets: 		Investments in securities (Notes 3 and 15)
Investments in and loans to		non-consolidated subsidiaries and affiliates

Long-term loans

307

103

1,001

Asset for retirement benefits (Note 8)

－

1,321

12,835

Deferred tax assets (Note 7)

1,927

1,447

14,059Other assets

4,879

5,636

54,761

10,062

12,614

122,561

230,741$ 2,241,945

		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 2014\

196,375\

Japanese yen(millions)

LIABILITIES AND NET ASSETS

U.S. dollars(thousands)

2014

2013

2014

Current Liabilities:
Short-term borrowings including
current portion of long-term debt (Notes 4, 5 and 15)

\

5,185

\

6,939

$

67,421

Notes and accounts payable (Note 15) 		Trade

17,58623,448227,827

		Construction

4,573

3,079

29,916

23

41

398

Accrued expenses (Note 15)

7,311

9,286

90,225

Accrued income taxes

2,685

4,597

44,666

Other current liabilities

1,371

936

9,096

38,734

48,326

469,549

Long-term debt (Notes 4, 5 and 15)

14,904

19,160186,164

Deferred tax liabilities (Note 7)

2,086

2,721

26,438

Employees' severance and retirement benefits (Note 8)

3,938

－

－

－

3,709

36,038				

Non-consolidated subsidiaries and affiliates

Total current liabilities		Long-term Liabilities:

Liability for retirement benefits (Note 8)
Other long-term liabilities
		

Total long-term liabilities

1,002

894

8,686

21,93026,484257,326

8,284

8,284

80,490		
Contingent Liabilities (Note 17)		
		
Net Assets		
Shareholders' Equity (Note 16):		
Common stock
Authorized - 168,000 thousand shares in 2013 and 2014
Issued - 48,594 thousand shares in 2013 and 2014

7,541

7,543

73,290116,914

126,783

1,231,860

594 thousand shares in 2013 and 587 thousand shares in 2014

(1,498)(1,478)(14,361)

Total shareholders' equity

131,241

141,132

1,371,279

737

1,059

10,290(5,136)

3,309

32,151－84

816(4,399)4,452

43,257

8,869

10,347

100,534

135,711

155,931

1,515,070\ 196,375\ 230,741$ 2,241,945

Capital surplus
Retained earnings
Treasury stock		

Accumulated Other Comprehensive Income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Accumulated adjustments for retirement benefit (Note 8)		Total accumulated other comprehensive income		
Minority Interests 						Total net assets

		
Total Liabilities and Net Assets		

Annual Report 20148

Consolidated Statements of Income
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2013 and 2014
Japanese yen(millions)

U.S. dollars(thousands)

2013

2014

2014

\ 202,236\ 234,262$ 2,276,156

161,836

184,358

1,791,275

40,40049,904

484,881

26,03930,470296,055

14,361

19,434

188,826

Interest and dividend income

269

249

2,419

Interest expense

(523)

(635)

(6,170)Gains (losses) on sale or disposal of property, plant and equipment

266

(403)

(3,916)Net Sales 				
Cost of Sales 		Gross profit		Selling, General and Administrative Expenses (Note 9)		Operating income		
Other Income (Expenses) : 		Equity in gains (losses) of non-consolidated subsidiaries and affiliates
Foreign exchange gains (losses), net

(48)

(4)

(39)

1,772

1,891

18,373

229

493

4,792

1,965

1,591

15,45916,32621,025204,285

Current

5,179

7,296

70,890

Deferred

350

367

3,566

Income before Minority Interests

10,797

13,362

129,829

Minority Interests in Net Income of Consolidated Subsidiaries

1,074

1,093

10,6209,723\ 12,269

Other, net

Income before income taxes and minority interests		
Income Taxes (Note 7)				
Net Income
		
Per Share Data (Note 13) :		
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 2014\

Japanese yen\ 201.95$

119,209

U.S. dollars\ 255.58

$

2.48

－

－

－

50.00

70.00

0.68

Consolidated Statements of Comprehensive Income
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2013 and 2014
Japanese yen(millions)

Income before Minority Interests		

U.S. dollars(thousands)

2013

2014

2014

\ 10,797\ 13,362

129,829

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

301

322

3,129

5,511

9,946

96,638

13

14

136

5,825

10,28299,903\ 16,622\ 23,644$ 229,732

Owners of the parent		

14,633

21,035204,382

Minority interests		

1,989

2,609

25,350Share of other comprehensive income of associates accounted for using equity method		

Total other comprehensive income (Note18)

Comprehensive Income		Comprehensive Income attribute 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, 2013 and 2014
Japanese yen (millions)Shareholders' Equity
CommonStock
Balance at April 1, 2012
Net income
Purchase of treasury stock
Disposal of treasury stock
Cash dividends paid
Other, net
Balance at March 31, 2013\

CapitalSurplus

8,284

\

7,541

Retained
Earnings

TreasuryStock\ 109,607
9,723

\

(340)
22

(8)
(2,408)
\

8,284

\

7,541

(1,180)\ 116,914\(1,498)

Total
Shareholders'Equity\ 124,252
9,723
(340)
14
(2,408)\ 131,241
Japanese yen (millions)

Accumulated other Comprehensive Income
Valuation
Difference on
Available-for-sale
Securities
Balance at April 1, 2012
Net income
Purchase of treasury stock
Disposal of treasury stock
Cash dividends paid
Other, net
Balance at March 31, 2013

Foreign
Currency
Translation
Adjustments

Accumulated
Adjustments for
Retirement
Benefit

Total
Accumulated
otherComprehensive
IncomeMinoruty
Interests

\

436

\

(9,749)\－\(9,313)

\

7,103

\

301
737

\

4,613
(5,136)

\

－

\

4,914
(4,399)

\

1,766
8,869

Total
net
Assets\ 122,042
9,723
(340)
14
(2,408)6,680\ 135,711

Annual Report 201410

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

\

737

\

322
1,059

Foreign
Currency
Translation
Adjustments\(5,136)

\

8,445
3,309

Accumulated
Adjustments for
Retirement
Benefit
\

－

\

84
84

Total
Accumulated
otherComprehensive
Income\(4,399)

\

8,851
4,452

Minoruty
Interests
\

8,869

\

1,478
10,347

Total
net
Assets\ 135,711
12,269(2)
24(2,400)
10,329155,931\

U.S. dollars (thousands)
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$

CapitalSurplus80,490$73,270Retained
Earnings

Treasury
Stock$1,135,970
119,209$ (14,555)
(19)
213

20
(23,319)$

80,490$73,290$1,231,860$ (14,361)

Total
Shareholders'Equity$1,275,175
119,209(19)
233(23,319)$1,371,279
U.S. dollars (thousands)

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$

7,161$ (49,903)$－$ (42,742)

$

3,129
10,290$82,05432,151

$

816
816

$

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

11 Annual Report 2014

Total
Accumulated
otherComprehensive
Income85,99943,257

Minoruty
Interests$

86,174

14,360$ 100,534

Total
net
Assets$1,318,607
119,209(19)
233(23,319)
100,359$1,515,070

Consolidated Statements of Cash Flows
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2013 and 2014
Japanese yen(millions)

U.S. dollars(thousands)

2013

2014

2014

\ 16,326\ 21,025$ 204,285

Depreciation and amortization

11,734

12,210118,636

Losses (gains) on sale or disposal of property, plant and equipment

(298)

341

3,313

(1)

4

39

(668)

(3,854)(37,447)

Cash Flows from Operating Activities:
Income before income taxes and minority interests
Adjustments for :Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in employees' severance and retirement benefits
Increase (decrease) in liability for retirement benefits

－

3,709

36,038Decrease (increase) in asset for retirement benefits－(1,321)(12,835)

Interest and dividend income

(269)

(249)

(2,419)Interest expense

523

635

6,170

1,606

(115)

(1,117)

Decrease (increase) in notes and accounts receivables
Increase (decrease) in inventories
Increase (decrease) in notes and accounts payables

(871)

621

6,034

(3,551)

2,085

20,258Other, net

(568)

476

4,624

		Subtotal

23,96335,567345,579

306

290

2,817

Interest and dividend income received

(536)

(633)

(6,150)(4,329)(5,395)(52,419)

19,40429,829289,827

Increase in time deposits

(65)

(74)

(719)

Decrease in time deposits

83

57

554

(21,849)(20,027)(194,588)

Proceeds from sales of property, plant and equipment

683

315

3,061

Payments for acquisitions of intangible assets(895)(1,663)(16,158)

Payments for purchases of investment in securities

(17)

(14)

(136)

Payments for additional portions of consolidated subsidiaries

(27)

(442)

(4,295)Additions to loans receivable

(142)

(212)

(2,060)

Collection of loans receivable

153

216

2,099

Other, net

(38)

(345)

(3,352)(22,114)(22,189)(215,594)Interest paid
Income taxes paid		Net cash provided by operating activities

Cash Flows from Investing Activities:

Payments for purchases of property, plant and equipment

		Net cash used in investing activities

Cash Flows from Financing Activities:
403

433

4,207

Proceeds from long-term loans payable

4,835

6,155

59,804

Repayments of long-term loans payable(2,358)(2,915)(28,323)

Payments for acquisitions of treasury stock

(340)

(3)

(29)

(2,407)(2,404)(23,358)

Cash dividends paid to minority shareholders

(479)

(579)

(5,626)

Other, net

(31)

(96)

(933)

(377)

591

5,742
13,690

Increase (decrease) in short-term borrowings, net

Cash dividends paid		Net cash provided (used) in financing activities

Effect of Exchange Rate Changes on Cash and Cash Equivalents

757

1,409

Net Increase in Cash and Cash Equivalents(2,330)9,640

93,665

Cash and Cash Equivalents at Beginning of Year27,92325,593248,669\ 25,593\ 35,233$ 342,334

Cash and Cash Equivalents at End of Year
The accompanying notes to the consolidated financial statements are an integral part of these statements.

Annual Report 201412

Notes to Consolidated Financial Statements
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES

1. Summary of Significant Accounting and Reporting Policies(a) Basis of presenting the consolidated financial statements
The accompanying consolidated financial statements of EXEDY Corporation(“the Company") and its consolidated subsidiaries have been prepared inaccordance with the provisions set forth in the Financial Instruments andExchange 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 to application anddisclosure requirements from International Financial Reporting Standards.
The accounts of the Company’s overseas subsidiaries are prepared inaccordance with either International Financial Reporting Standards or
U.S. generally accepted accounting principles, and partially reflect theadjustments which are necessary to confirm with Japanese GAAP. The
accompanying consolidated financial statements have been restructured
and translated into English from the consolidated financial statementsof the Company prepared in accordance with Japanese GAAP and filedwith the appropriate Local Finance Bureau of the Ministry of Finance as
required by the Financial Instruments and Exchange Law in Japan. Certain
supplementary information included in the statutory Japanese language
consolidated financial statements, 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 theprevailing exchange rate at March 31, 2014, which was ¥102.92 to U.S.
$1.00. The convenience translation should not be construed as representationthat the Japanese yen amounts have been, could have been, or could in the
future be, converted into U.S. dollars at this or any other rate of exchange.
(b) Principles of consolidation

Other securities with no available fair market value are stated at moving
average cost, net of the amount considered uncollectible.
If the fair market value of other securities declines significantly, suchsecurities are stated at fair market value and the difference between the fairmarket value and the carrying amount is recognized as a loss in the period of
decline. If the net asset value of other securities with no available fair market
value declines significantly, such securities should be written down to the net
asset value by charging to income.
(e) Derivatives
All derivatives are stated at fair value.
(f) Inventories
Inventories held for sale except for supplies are mainly stated at the lower ofcost (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 thedepreciation of property, plant and equipment by using the declining-balancemethod and its overseas consolidated subsidiaries mainly by using thestraight-line method. The depreciation of buildings acquired by the Company
and its domestic consolidated subsidiaries on and after April 1, 1998 iscomputed by using the straight-line method.
Estimated useful lives of property, plant and equipment are as follows:
Buildings and structures
Machinery and vehicles
Tools and furniture

The accompanying consolidated financial statements include the accounts of
the Company and 33 (2013: 30) significant subsidiaries as of March 31, 2014,
over which the Company has power of control through majority voting rights orthe existence of certain conditions evidencing control by the Company.

(h) Software

Investments in 4 (2013 : 4) non-consolidated subsidiaries and 3 (2013 : 2)
affiliates as of March 31, 2014, over which the Company has the ability to
exercise significant influence over operating and financial policies of theinvestees, are accounted for using the equity method.

(i) Leases

In the elimination of investments in consolidated subsidiaries, the assets
and liabilities of the subsidiaries, including the portion attributable to minority
shareholders, are valued using the fair value at the time the Company
acquired control of the respective subsidiary. Material intercompany
balances, transactions and profits have been eliminated in consolidation.
All the overseas subsidiaries except for 2 consolidated subsidiaries,
are consolidated using a fiscal period ending December 31. Significant
transactions occurring from January 1 to 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 period.
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 are translated at the average rates during the year.
Translation adjustments resulting from translating financial statements whose
accounts are denominated in foreign currencies are not included in thedetermination 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.
Other securities with available fair market value are stated at fair market
value. Valuation difference on available-for-sale securities are reported, netof applicable income taxes, as a separate component of net assets.
Realized gains and losses on the sale of such securities are computed using
the moving average cost method.

13 Annual Report 2014........... 10 - 30 years…........ 7 - 20 years………. 4 - 7 years

Software is amortized using the straight-line method over the useful lives (3-5years) of the software.
Finance leases, except for certain immaterial leases, are capitalized anddepreciated over lease terms, as applicable. However, as permitted, theCompany and consolidated domestic subsidiaries account for finance leases
commencing prior to April 1, 2008 which do not transfer ownership of theleased property to the lessee as operating lease with disclosure of certain “asif capitalized” information in Note 7.
(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 the amounts 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
during a certain reference period plus the estimated uncollectible amountbased on the analysis of individual accounts.
(l) Allowance for product warranties
The Company and its consolidated subsidiaries provide for doubtful accounts
principally at an amount computed based on the historical bad debt ratio
during a certain reference period plus the estimated uncollectible amountbased on the analysis of individual accounts.
(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 theestimated amounts of projected benefit obligation and the fair value of theplan 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 recognized in expenses inthe year in which they are incurred.
(Additional information)
Effective from April 1, 2014, the Company and a certain consolidated
subsidiary transferred a part of the defined benefit pension plan for current
employees to a defined contribution pension plan as a result of a resolutionof EXEDY corporate pension plan representative committee.
The Company applied the Guidance on Accounting for Transfers between
Retirement Benefit Plans (ASBJ Guidance No. 1, January 31, 2002) andaccounted for this transfer in the year ended March 31, 2014. The effect of
the transfer affected on profit and loss was immaterial.
In principal, actuarial differences are fully recognized in expenses in theyear following the fiscal year in which the actuarial differences are incurred.
However, actuarial differences arising from the portion of the defined benefit
pension plan for retired former employees are fully recognized in expenses
in the fiscal year in which they are incurred. As a result, in the year ended
March 31, 2014, income before income taxes and minority interest increasedby ¥166 million ($1,612 thousand).
(Change in Accounting Policy)
Effective from the year ended March 31, 2014, the Company and its
consolidated domestic subsidiaries have applied the Accounting Standard
for Retirement Benefit (ASBJ Statement No. 26, May 17, 2012 (hereinafter,
the “Standard”)) and Guidance on Accounting Standard for Retirement
Benefits (ASBJ Guidance No. 25, May 17, 2012 (hereinafter, the “Guidance”)
except for Article 35 of the Standard and the Article 67 of the Guidance).
Under the Standard, the difference between the amount of retirement benefit
obligations and the value of plan assets has been recognized as a liability
for retirement benefits, and actuarial gains and losses and past service costs
that were unrecognized in the past fiscal year have been recognized asasset/liability for retirement benefits.
In accordance with the transitional accounting in Article 37 of the Standard, theeffect of the changes in accounting policies arising from the initial application
has been recognized in accumulated adjustments for retirement benefit inaccumulated other comprehensive income at the current fiscal year-end.
As a result of the application, an asset for retirement benefits in the amountof ¥1,321 million ($12,835 thousand) and a liability for retirement benefits
in the amount of ¥3,709 million ($36,038 thousand) have been recognized,
and accumulated other comprehensive income has increased by ¥84 million($816 thousand) in the consolidated balance sheet at the fiscal year-end. Net
assets per share increased by ¥1.76 ($0.02).
(n) Accounting for consumption taxes
Consumption taxes withheld upon sale and consumption taxes paid by
the Companies on their purchases of goods and services are not includedin the amounts of respective revenue or 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
number of shares outstanding during each year, excluding the Company’streasury stock, and based on net income attributed to ordinary shareholders,
excluding bonuses to directors and corporate auditors, etc. The computationof net assets per share is based on the number of shares of common stock
outstanding at the year-end, excluding the Company’s treasury stock, and basedon net assets attributed to ordinary shareholders, excluding minority interests.
Cash dividends per share shown in the statements of income are theamounts attributable to the respective years.
(p) Goodwill
Goodwill, except for minor goodwill is amortized by the straight-line method
over five years. Minor goodwill is expensed as incurred.
(q) Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits and shortterm investments which have maturities of three months or less when purchased,
are easily 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) Accounting Standards issued but not yet effective(Accounting Standard for Retirement Benefits)
Accounting Standard for Retirement Benefits (ASBJ Statement No. 26, May
17, 2012)
Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance
No. 25, May 17, 2012)
1. Summary
The accounting standard and guidance contains amendments to methodof amortizing unrecognized actuarial gains and losses and prior service
costs, and the method of determining the discount rate. Under the revised
accounting standard, it is newly allowed to use the benefit formula basis as
an option in addition to the straight line basis with respect to the method of
attributing the projected benefits to period of service.
2. Effective dates
Effective from beginning of fiscal year ending March 31, 2015 for computing
projected benefit obligation and service costs. However, The accounting
standard and guidance are subject to transitional accounting treatment.
Accordingly, it will not be applied retroactively to consolidated financial
statements from past years.
3. Effect of application of the standard
The Company and its consolidated domestic subsidiaries are currently in theprocess of determining the effects of the new standard on the consolidated
financial statements.
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 andAccounting Standard 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 contains amendments to theaccounting 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,
the transitional provisions for accounting treatments will be applied frombusiness combinations performed on or after the beginning of the fiscal year
ending March 31, 2016.
3. Effect of application of the standard
The Company and its consolidated domestic subsidiaries are currently in theprocess of determining the effects of the new standard on the consolidated
financial statements.
(Practical Solution on Transactions of Delivering the Company’s Own
Stock to Employees etc. through Trusts)(Practical Solution No. 30, December 25, 2013)
1. Summary
The practical solution establishes the accounting treatment on transactionsof delivering the Company’s own stock to employees etc. through trusts.
2. Effective dates
Effective from beginning of fiscal year ending March 31, 2015.
3. Effect of application of the standard
The Company and its consolidated domestic subsidiaries are currently in theprocess of determining the effects of the new standard on the consolidated
financial statements.

Annual Report 201414

2. Inventories
Inventories as of March 31, 2013 and 2014 were as follows:
Japanese yen(millions)Finished goods
Work-in process
Raw materials
Supplies

U.S. dollars(thousands)

2013

2014

\ 11,012
4,973
6,326
2,627
\ 24,938\ 12,078
4,749
7,511
3,220
\ 27,558

2014$

117,353
46,143
72,97931,286$ 267,761

The ending inventory balance presented above is the net of write-downs of inventories when their carrying amounts become unrecoverable, and thewrite-downs recognized in cost of sales were \263 million and \69 million ($670 thousand) as of March 31, 2013 and 2014, respectively.

3. Securities
Other securities with book values (fair values) exceeding acquisition costs as of March 31, 2013 and 2014 were as follows:
Japanese yen (millions)

March 31, 2013

Acquisition cost

Equity securities
Interest-bearing securities
Others

\

\

432
－
－
432

DifferenceBook value
\

\

1,428
－
－
1,428

\

\

996
－
－
996

Japanese yen (millions)

March 31, 2014

Acquisition cost

Equity securities
Interest-bearing securities
Others

\

\

863
－
－
863

DifferenceBook value
\

\

2,515
－
－
2,515

U.S. dollars (thousands)\\

Acquisition cost

Book value

$

$

1,652
－
－
1,652

$

8,385
－
－
8,385

24,436－－24,436$

Difference$$

16,051－－
16,051Other securities with book values (fair values) not exceeding acquisition costs as of March 31, 2013 and 2014 were as follows:
Japanese yen (millions)

March 31, 2013

Acquisition cost

Equity securities
Interest-bearing securities
Others

\

\

949
－
－
949

DifferenceBook value
\

\

635
－
－
635

\

\

(314)
－
－
(314)

Japanese yen (millions)

March 31, 2014

Acquisition cost

Equity securities
Interest-bearing securities
Others

\

\

77
－
－
77

DifferenceBook value
\

\

61
－
－
61

U.S. dollars (thousands)\\

Acquisition cost

Book value

$

$

(16)
－
－
(16)

748
－
－
748

$

593
－
－
593

$

Difference
$

$

(155)
－
－
(155)

The book value of securities with no available fair values as of March 31, 2013 and 2014 were as follows:
U.S. dollars(thousands)

Japanese yen(millions)

2014

2013
Other securities with no fair value Non-listed equity securities

15 Annual Report 2014

\

30

\

30

2014
$

291

4. Assets Pledged as Collateral
The following assets were pledged as collateral for \275 million and \317 million ($3,080 thousand) of secured loans as of March 31, 2013 and2014, respectively :Japanese yen(millions)

2014

2013
Accounts receivable and inventories
Property, plant and equipment

1,555
1,717
3,272

\
\

U.S. dollars(thousands)

1,643
1,301
2,944

\
\

2014
$
$

15,964
12,641
28,605

5. Bonds Payable, Short-term Borrowings and Long-term Debt
Bonds Payable, Short-term borrowings and long-term debt as of March 31, 2013 and 2014 were as follows:
U.S. dollars(thousands)

Japanese yen(millions)

2014

2013
Short-term borrowings
Current Portion of Bond Payable
Current portion of long-term debt
Current portion of lease obligation
Bonds Payable
Long-term debt\

Lease obligations
Other interest bearing debt

3,365
66
1,754
40
7,000
7,904

\

4,380
－
2,559
40
7,000
12,1602014$

42,557－
24,864389
68,014
118,150

125

96

933

685
\ 20,939302\ 26,537

2,934$ 257,841

Weighted
averageinterest rates

Year due

5.2 %
－
4.0
－
0.5
2017
3.5
2015-2019
and thereafter		
2015-2019－
and thereafter		
0.4

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, 2014 were as follows:

Bonds Payable
Years ending March 31

Japanese yen(millions)

2017
\

7,000
7,000

U.S. dollars(thousands)$

68,01468,014Long-term Dept
Years ending March 31

Japanese yen(millions)

U.S. dollars(thousands)

Lease Obligation
Years ending March 31

Japanese yen(millions)

2016
2017
2018
2019
2020 and thereafter

\

3,472
2,540
2,082
3,017
1,049
\ 12,160

$

2016
2017
2018
2019
2020 and thereafter\$

33,73524,67920,22929,314
10,193
118,150

\

39
32
19
6
－
96

U.S. dollars(thousands)
$

$

379
311
185
58
－
933

Annual Report 201416

6. 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,
2013 and 2014 were as follows:
Japanese yen (millions)

March 31, 2013
Machinery and vehicles
Tools and furniture

Accumulated
Acquisition Accumulated losses on
cost
depreciation impairment\\

March 31, 2014
Machinery and vehicles
Tools and furniture

135
91
226

\
\

106
69
175

\
\

－
－
－

Balance
\
\

29
22
51

Japanese yen (millions)

U.S. dollars (thousands)

Accumulated
Acquisition Accumulated losses on
cost
depreciation impairment

Accumulated
Acquisition Accumulated losses on
cost
depreciation impairment

\
\

134
91
225

\
\

123
81
204

\
\

－
－
－

Balance
\
\

11
10
21

$ 1,302884$ 2,186$ 1,195787$ 1,982$$

Balance
$

－
－
－

$

107
97
204

The scheduled maturities of future lease payments, on such lease contracts for the years ended March 31, 2013 and 2014 were as follows:
Japanese yen(millions)

2014

2013
Due within one year
Due over one year
Lease payments for the year

\

29
22
51

\

29

\

U.S. dollars(thousands)

2014
$

\

21
0
21

$

204
0
204

\

29

$

282

\

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 \29 million ($282 thousand) for the years ended March 31, 2013 and 2014, respectively.
The Company had no leased assets on which impairment should have been recognized for the years ended March 31, 2013 and 2014.

(b) Operating leases
The scheduled maturities of future lease payments under non-cancelable operating leases as of March 31, 2013 and 2014, were as follows:
Japanese yen(millions)

2014

2013
Due within one year
Due over one year\\

17 Annual Report 2014

10
19
29

U.S. dollars(thousands)

\
\

10
9
19

2014
$
$

97
88
185

7. Income Taxes
Significant components of the Company and consolidated subsidiaries' deferred tax assets and liabilities as of March 31, 2013 and 2014 were as follows:
Japanese yen(millions)

2014

2013
Deferred Tax Assets:
Employees' severance and retirement benefits
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 devaluation of inventories
Unrealized profit eliminated in consolidation (fixed assets)
Accrued warranty costs
Accrued enterprise tax
Retirement benefits for directors and corporate auditors
Depreciation
Other
Total Deferred Tax Assets
Valuation allowance
Deferred Tax Assets\

Deferred Tax Liabilities:
Depreciation and amortization
Asset for retirement benefits
Retained earnings of overseas subsidiaries
Reserve for advanced depreciation
Net unrealized holding gains on other securities
Accumulated adjustments for retirement benefit
Other
Total Deferred Tax Liabilities
Valuation allowance
Deferred Tax Liabilities
Net Deferred Tax Assets

1,443
－
1,151
879
219
578
532
391
133
191
151
731
1,209
7,608
(442)
7,166

\

2,979

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

2014
$

(2,496)(470)(1,786)
(319)
(576)
(46)
(199)
(5,892)－(5,892)(1,888)－(1,342)
(325)
(399)
－
(233)
(4,187)－(4,187)\

U.S. dollars(thousands)

\

2,463

－
13,797
14,594
9,328
－
8,026
6,325
4,431
3,362
2,818
855
8,560
11,53383,629(2,449)81,180(24,252)(4,567)(17,353)(3,099)(5,597)(447)(1,933)(57,248)－(57,248)$

23,932The 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% for the years ended March 31, 2013 and 2014.
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 year ended March 31, 2013.
The note is omitted for the year ended March31, 2014, because the difference between the statutory tax rate and the Companies’ effective tax rate
after adoption of tax-effect accounting is less than 5%.

2013
Statutory Tax Rate
Adjustments for:		 Different tax rates applied to overseas subsidiaries
		 Adjustment for write-down of investment on subsidiaries
		 Tax credit for research and development expenses
		 Increase (decrease) in valuation allowance
		 Per capital inhabitants tax
		 Increase(decrease) of retained earnings of overseas subsidiaries
		 Non-deductible expenses
		 Foreign withholding tax
		Other
Effective Tax Rate2014

38.0 %
－%
		
		
(4.5)
－
(0.3)
－
(1.7)
－
(1.6)
－
0.1
－
1.9
－
0.4
－
0.5
－
1.1
－
33.9 %－%

Adjustment of deferred tax assets and liabilities for enacted changes in tax laws and rates
On March 31, 2014 amendments to the Japanese tax regulations were enacted into law, which will reduce the corporation tax rate. Consequently,
the effective statutory tax rate used to measure deferred tax assets and liabilities has been reduced from 38.01% to 35.64%.
Due to this change in statutory income tax rate, net deferred tax assets decreased by \127 million ($1,234 thousand) as of March 31, 2014 anddeferred income tax recognized for the year ended March 31, 2014 increased by \127 million ($1,234 thousand).

Annual Report 201418

8. 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 liability for employees' severance and retirement benefits included in the liabilities section of the consolidated balance sheets as of March 31,
2013 consisted of the following:
Japanese yen(millions)2013
Projected benefit obligation
Fair value of plan assets
Unrecognized actuarial differences
Employees' severance and retirement benefits\ (11,722)
8,542(3,180)(758)\ (3,938)

The expenses of employees' severance and retirement benefits included in the consolidated statements of income as of March 31, 2013 consistedof the following:
Japanese yen(millions)2013
Service costs
Interest costs
Expected return on plan assets
Amortization of actuarial differences\

Employees' severance and retirement benefit expenses
Others(Note) "Others" represents the payments to defined contribution pension plans.		

\

509
230
(140)
61
660
194
854

Assumptions used in the calculation of the above information were as follows:

2013
Method of attributing the projected benefits to periods of service
Discount rate
Expected rate of return on plan assets
Amortization of prior service costs
Amortization of actuarial differences

Straight-line basis
2.0%
2.0%
1 year
1 year

The following tables provide information on defined benefit plans for the years ended March 31, 2014.
Defined benefit plans

Japanese yen(millions)

2014(1) Movements in retirement benefit obligations, except plan applied simplified method
Beginning balance of retirement benefit obligations

U.S. dollars(thousands)\ 11,576

2014$

112,476

Service costs

581

		Interest costs

232

2,254

		

Actuarial loss (gain)(120)(1,166)		

Benefits paid

(896)

(8,706)		

Effect of transfer to defined contribution pension plan		Ending balance of retirement benefit obligations

19 Annual Report 2014

5,645

(4,539)\6,834(44,102)$66,401

Japanese yen(millions)

U.S. dollars(thousands)

2014

2014

(2) Movements in plan assets
Beginning balance of plan assets

\

8,542

$

82,997

		

Expected return on plan assets

171

1,661

		

Actuarial loss (gain)

567

5,509

		

Contributions paid by the employer

918

8,920

		

Benefits paid		Effect of transfer to defined contribution pension plan
Ending balance of plan assets\

		(5,801)(48,504)

4,609

$

\

147

44,78220142014(3) Movement in liability for retirement benefits, plan applying simplified method
Beginning balance of liability for retirement benefits(597)(4,992)

$

1,428

		

Retirement benefit costs

36

350

		

Benefits paid

(20)

(194)

Ending balance of liability for retirement benefits

\

		

$

\

Plan assets
		

3,188

$

Total net liability (asset) for retirement benefits\

30,976(4,609)(44,782)(1,421)(13,806)

3,809

Unfunded retirement benefit obligations

1,584

2014

2014

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

163

2,388

37,009$23,203		Liability for retirement benefits

3,709

36,038Asset for retirement benefits(1,321)(12,835)

Total net liability (asset) for retirement benefits

\

2,388

$

23,203(Note) Include plan applying simplified method
		

2014

2014

(5) Retirement benefit costs
Service costs

\

617

$

5,995

Interest costs

232

2,254

Expected return on plan assets(171)(1,661)

Net actuarial loss amortization(924)(8,978)

Other

266

2,585

Total retirement benefit costs

\

20

$

195

Gain (loss) on transfer to contributed pension plan

\

15

$

146

		
130

Unrecognized actuarial loss (gain)
Total accumlated Adjustments for retirement benefit		(7) Plan assets① Plan assets comprise2014

		Bonds

25%

		Equity securities

19%

		

55%

Cash and cash equivalents

		Other1%

		Total100%(8) Actuarial assumptions
The principal actuarial assumptions(expressed as weighed averages) follow:

2014

		Discount rate

2.0%

		

2.0%

Long-term expected rate of return

2014

2014

(6) Accumlated adjustments for retirement benefit, before income tax effect
\

130

1,263
$

1,263

② Long-term expected rare of return
		 Current and target asset alocations, historical and expected		 returns on various categories of plan assets have been		considered in determining the long-term expected rate of return.

(9) Payment for contribution plan

Japanese yen(millions)

U.S. dollars(thousands)

2014

2014

\

193

$

1,875

Annual Report 201420

9. Research and development expenses
Research and development expenses are charged to income as incurred. Research and development expenses for the years ended March 31,
2013 and 2014 were as follows:
Japanese yen(millions)

2014

2013
Research and development expenses

4,178

\

U.S. dollars(thousands)

\

2014

4,573

$

44,433

10. Derivatives
The following table provides information on derivative instruments as of March 31, 2013 and 2014.
Japanese yen (millions)

March 31, 2013
Forward exchange contracts:
To sell U.S. dollars
To sell EuroTo sell Australia dollars
To sell New zealand dollars
To buy Japanese Yen

Contract
amount
887
327
63
28
5
\ 1,310\

Gain(Loss)

Fair
value
\

\

3
8
(1)
(0)
0
10

3
8
(1)
(0)
0
10

\

\

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

\

\

U.S. dollars (thousands)

Gain(Loss)

Contract
amount

2
1
0
16
0
19

$ 5,577
2,905
146
253
29
$ 8,910

Fair
value
$

$

19
10
0
156
0
185

Gain
(Loss)
$

$

19
10
0
156
0
185

11. Segment Information(a) General information about reportable segments
The Company and its consolidated subsidiaries are mainly engaged in the manufacture and sale of automotive parts. From the aspects of function,technological specification and productive structure, the product lines of the Company are classified roughly into 2 group, "Manual Transmission
Parts" and "Automatic Transmission Parts". The Company, in cooperation with its consolidated subsidiaries, design business strategy and conductbusiness for these 2 product lines inside Japan and overseas. And concerning these 2 product lines, separate financial information is accessible
among the constituent units of the Company and that are subject to periodical examination, in order for the Board of Directors of the Company todetermine the allocation of management resources. Accordingly, the reportable segments of the Company are composed of 2 segments, "MT (Manualautomotive drivetrain related business)" which manufactures and sells Manual Transmission Parts and "AT (Automatic automotive drivetrain related
business)" which manufactures and sells Automatic Transmission Parts.
(b) Basis of measurement about reported segment profit or loss, segment assets, segment liabilities and other material items
The accounting policies of the reportable segment are mainly consistent to 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.

21 Annual Report 2014

(c) Information about reported segment profit or loss, segment assets, segment liabilities and other material items
Reported segment information for the years ended 31, 2013 and 2014 were as follows :Japanese yen(millions)

Sales:
Manual automotive drivetrain operations
Automatic automotive drivetrain operations
		 Reporting segment total
Other operations
		Sub Total
Eliminations (inter-segment net sales)
Operating Costs and Expenses:
Manual automotive drivetrain operations
Automatic automotive drivetrain operations
		 Reporting segment total
Other operations
		Sub Total
Non-allocated operating expenses and eliminations
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
Capital Expenditures:
Manual automotive drivetrain operations
Automatic automotive drivetrain operations
		 Reporting segment total
Other operations
		Sub Total
Corporate and eliminations

U.S. dollars(thousands)

2013

2014

\ 60,455
122,889
183,344
28,330211,674(9,438)\ 202,236\ 67,964
144,487
212,451
32,675245,126(10,864)\ 234,262$ 660,357
1,403,877
2,064,234
317,480
2,381,714(105,558)$ 2,276,156\ 52,348
116,313
168,661
27,650196,311(8,436)\ 187,875\ 57,737
134,065
191,80232,580224,382(9,554)\ 214,828$ 560,988
1,302,614
1,863,602
316,557
2,180,159(92,829)$ 2,087,330

\

8,107
6,576
14,683680
15,363(1,002)\ 14,361\ 10,227
10,422
20,64995
20,744(1,310)\ 19,434$\ 51,243
99,271
150,51431,437
181,951
14,424\ 196,375\ 60,816
117,533
178,349
32,877211,226
19,515\ 230,741$ 590,906
1,141,984
1,732,890
319,4422,052,332
189,613$ 2,241,945

\

2,966
7,767
10,733
1,155
11,888(154)\ 11,734

\

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

4,460
13,752
18,212
5,989
24,201(147)\ 24,054\

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

$

\

2014

99,369101,263
200,632923
201,555(12,729)$ 188,826

27,92578,274
106,199
13,982
120,181(1,545)$ 118,636
36,329123,319
159,648
33,930
193,578(1,215)$ 192,363

Note : 1. "Other operations" includes businesses which is not part of any of the 2 reportable segments, and contain industrial machine drivetrain operation, clutches formotorcycle operation, transport operation, etc.
2. The contents of adjustments are as follows :(a) "Non-allocated operating expenses and eliminations" of Operating Income \(1,310) million($(12,729) thousand) consists of "Elimination of intersegment
transactions" \219 million($2,127 thousand), "Amortization of goodwill" \(4) million($(39) thousand), "Company-wide expense" which is not allocated toreportable segments \(1,490) million($(14,477) thousand) and "other adjstments" \(35) million($(340) thousand).
"Company-wide expense" mainly consists of general and administrative expenses and expense for new-product development not attributable to any reportable segments.
(b) "Corporate and eliminations" of Assets \19,515 million($189,613 thousand) consists of "Company-wide assets" which is not allocated to reportable segments \24,386
million($236,941 thousand), "Elimination of intersegment transaction" \(4,699) million ($(45,657) thousand) and "other adjstments" \(172) million($(1,671) thousand).
"Company-wide assets" mainly consists of the cash and cash equivalents and securities that are not attributable to any reportable segments.

Annual Report 201422

(c) "Corporate and eliminations" of Depreciation and Amortization \(159) million($(1,545) thousand) consists of "Adjustment of unrealized gain for intersegment
transaction of fixed assets" \(159) million($(1,545) thousand).
(d) "Corporate and eliminations" of Capital Expenditures \(125) million($(1,215) thousand) consists of "Adjustment of unrealized gain for intersegment
transaction of fixed assets" \(125) million($(1,215) thousand).
3. The segment income is adjusted to accord with operating income of "consolidated statement of income".

(1) Information about products and services
Due to the segment of products and services are same as the reportable segment, description of this item is omitted.
(2) Information about geographic areas for the years ended March 31, 2013 and 2014 were as follows :U.S. dollars(thousands)

Japanese yen(millions)

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

2013

2014

\ 101,125
38,12151,014
11,976\ 202,236\ 109,863
48,21863,005
13,176\ 234,262$ 1,067,460
468,500
612,175
128,021$ 2,276,156\ 39,986
14,83933,381384\ 88,590\ 39,626
20,31843,401475\ 103,820$ 385,017
197,415421,696
4,617$ 1,008,745

2014

The Company's operations are classified into geographical areas as follows: Japan, America (including Mexico and 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 2013 and 2014 were as follows :U.S. dollars(thousands)

Japanese yen(millions)Company Name

Sales Segment

JATCO Corporation

AT and MT

2013

2014

2014

\ 28,814\ 27,303$ 265,284

12. Related Party Transactions
For the years ended March 31, 2013 and 2014, the Company and its consolidated subsidiaries had operational transactions with Aisin AW Co., Ltd
and Aisin Holdings of America, Inc., which are subsidiaries of Aisin Seiki Co., Ltd. which holds 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, 2013 and 2014 were as follows:
March 31, 2013
CapitalJapanese yen(millions)
U.S. dollars(thousands)

Subjects

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.

23 Annual Report 2014

Operation

Voting rights(%)

Manufacturing
automotive
parts

－

\ 26,480

Manufacturing
automotive
parts

－

$ 282,290

Administrationof overall
40%
North
(directly held)
Americanoperations

BalanceAmountRelationship
Businessrelationship

Trade

Sale ofproducts

Sale ofproducts
Concurrently
servingas directors\ 4,130

Sale ofproducts

Sale ofproducts\ 2,859

Accounts
receivable

\

Dept

Interest
expense\ 16

Long-term
debt\ 1,455

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

Accounts

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

Accounts
receivable\ 818

Advanced
received\ 7532

March 31, 2014
CapitalJapanese yen(millions)
U.S. dollars(thousands)

Operation

Voting rights

Trade
Sale ofproducts
Concurrently
servingas directors\ 4,440$ 43,140

Subjects

Categories

Name

AddressThe
Company

Other relatedcompany's
subsidiary

Aisin AW
Co., Ltd.

Anjo City
Aichi pref.

\ 26,480$ 257,287

Manufacturing
automotive
parts

－

Sale ofproducts

Dynax
Corporation

Other relatedcompany's
subsidiary

Aisin AW
Co., Ltd.

Anjo City
Aichi pref.

\ 26,480$ 257,287

Manufacturing
automotive
parts

－

Sale ofproducts

Sale ofproducts

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

Indiana
U.S.A.

$ 282,290

Administrationof overall
40%
North
(directly held)
Americanoperations

Dept

Interest
expense(%)

BalanceAmountRelationship
BusinessrelationshipJapanese yen(millions)
U.S. dollars(thousands)

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

Accounts
Accounts
receivable\ 970$ 9,425

Advanced
received

\ 22
$ 214

\ 2,735$ 26,574

Accounts
receivable\ 466$ 4,528

\ 17
$ 165

Long-term
debt\ 1,771$ 17,208(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.

13. Per Share Data
Per share data for the years ended March 31, 2013 and 2014 were as follows :U.S. dollars(thousands)

Japanese yen(millions)

Net income
Net income - diluted
Net assets

2013

2014

\ 201.95－
2,642.60\ 255.58－
3,032.56

2014
$

2.48
－
29.47

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, 2013 and 2014 were as follows:
U.S. dollars(thousands)

Japanese yen(millions)

Net income per share of common stock
Net income
		 Amounts not attributed to ordinary shareholders
Net income attributed to ordinary shareholders\\

The weighted average number of shares (thousands)

2013

2014

9,723
－
9,723

\ 12,269－\ 12,269

48,14648,004

2014$$

119,209－119,209

14. Changes in Net Assets(a) Shares issued / Treasury stock

March 31, 2013
Shares issued:
Common stock (thousands)
Treasury stock:
Common stock (thousands)

Number of shares
as of March 31, 2012

Number of shares
as of March 31, 2013

Increase

Decrease

48,594
48,594－－－－

48,594
48,594

432
432

170
170

8
8

594
594

Annual Report 201424

The increase of treasury stock - common stock 100 thousand is due to open-market purchase of treasury stock pursuant to a resolution of the boardof directors’ meeting held on January 30, 2013, and common stock 70 thousand is due to purchase of treasury stock pursuant to Clause 1, Airticle
797 corporate code of Japan.
The decrease of treasury stock-common stock 8 thousand 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, 2013 includes the Company’s stock amounted to 91 thousand shares held by The Master Trust Bankof Japan ,Ltd. (ESOP Trust Account)
The increase of treasury stock - common stock 0 thousand is due to purchase of the stocks less than standard unit 2 hundred.
Number of shares
as of March 31, 2013

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

Number of shares
as of March 31, 2014

Increase

Decrease

48,594
48,594－－－－

48,594
48,594

594
594

0
0

7
7

587
587

Treasury stock:
Common stock (thousands)

The decrease of treasury stock-common stock 8 thousand 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 of treasury stock - common stock 0 thousand is due to purchase of the stocks less than standard unit 2 hundred.
(b) Dividends(1) Dividends
March 31, 2013
Resolution

Type of shares

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

Cash dividends paid

Dividends per share(Japanese yen)
(U.S. dollars)

Cut-off date

Effective dateOrdinary general
meeting of theshareholders on
June 22, 2012

Common stock\ 1,207\ 25.0March 31, 2012

June 25, 2012

Board of Directors'
meeting on
October 29, 2012

Common stock\ 1,207\ 25.0

September 30, 2012

November 26, 2012

Resolution

Type of shares

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

Cash dividends paid

Dividends per share

Cut-off date

Effective dateOrdinary general
meeting of theshareholders on
June 21, 2013

Common stock\ 1,202$ 11,679\ 25.0$ 0.24

March 31, 2013

June 24, 2013

Board of Directors'
meeting on
October 29, 2013

Common stock\ 1,202$ 11,679\ 25.0$ 0.24September 30, 2013

November 25, 2013

March 31, 2014
(Japanese yen)
(U.S. dollars)(2) Dividends, of which cut-off date was in the year ended March 31, 2014, and effective date of which will be in the year ending March 31, 2015
Resolution

Type of shares

Ordinary general
meeting of theshareholders on
June 24, 2014

Common stock

25 Annual Report 2014

Cash dividends paid

Source ofdividends

Dividends per share\ 2,164$ 21,026

Retainedearnings\ 45.0$ 0.44

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

Cut-off date

Effective date

March 31, 2014

June 25, 2014

15. 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 arisk 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 of accounts receivable, the Company andits consolidated subsidiaries engage in derivative transactions (forward currency exchange contracts).
Certain securities include exposure to market risk. The Company and its consolidated subsidiaries holds 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 Directorsof 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 is mainly for the purpose of funding
investment in equipment.
Derivative transactions are entered and controlled by the financial department with approval of the financial manager under the rules of each company,
which prescribes details such as the department in charge of transactions and the limits for transaction. To reduce credit risk, transaction counterpartiesare 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 book values of the financial instruments included in the consolidated balance sheet and their fair values at March 31, 2013 and 2014 were as follows.
Japanese yen (millions)

March 31, 2013
Cash and time deposit
Notes and accounts receivable
Investments in securities
Other securities
Notes and accounts payable
Short-term borrowings
Accrued expenses
Accrued income taxes
Bonds payable
Long-term debt
Derivative transactions

Book
value

Fair
value

\ 25,664
39,818\ 25,664
39,8182,063(15,472)(3,365)(6,894)(2,685)(7,066)(9,658)10

2,063(15,472)(3,365)(6,894)(2,685)(7,125)(9,593)10

Difference
\

－
－
－
－
－
－
－
(59)
(△65)
－

Japanese yen (millions)

March 31, 2014
Cash and time deposit
Notes and accounts receivable
Investments in securities
Other 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

U.S. dollars (thousands)
Book
value

Fair
value

－
－

$ 343,257
418,296$ 343,257
418,296

$

－
－
－
－
－
(42)
(△235)－

25,029(192,820)(42,557)(80,635)(44,666)(68,014)(143,014)
185

25,029(192,820)(42,557)(80,635)(44,666)(68,422)(140,731)
185

－
－
－
－
－
(408)
(△2,283)－

Difference\

Difference－－

1. The methods used to determine the fair value of financial instruments and derivative transactions are as follows:
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 and the fair values are considered to be equal to book values. Therefore, fair values are stated at book values.
Investments in securities (Other securities) are stated at fair market 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.

Annual Report 201426

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 \1,234 million ($11,990 thousand))have no market price available and are considered to be financial instruments for which the fair market value is difficult to determine.
Therefore, these instruments are not included in "Investment insecurities (Other securities)" in the table above.
3. Receipt schedule for current credit after consolidated dateJapanese yen (millions)2015
Cash and time deposit
Notes and accounts receivable\ 35,328
43,051\ 78,379

U.S. dollars (thousands)

2016～2019 2020～2024

2025 and
thereafter

\

\

\

－
－
－

\
\

－
－
－

\

2015
$ 343,257
418,296$ 761,553－－－

2016～2019 2020～2024

2025 and
thereafter

$

$

－
－
－

$

$
$

－
－
－

－
－
－

$

4. Payment schedule for long-term debt after consolidated dateJapanese yen (millions)
2015
Bonds Payable
Long-term debt\－
\ 2,559\ 2,559

U.S. dollars (thousands)

2016～2019 2020～2024

2025 and
thereafter\ 7,000\ 11,111\ 18,111

\
\
\

－
\
\ 1,049\ 1,0492015$－$ 24,864$ 24,864－－－

2016～2019 2020～2024

2025 and
thereafter$ 68,014$ 107,958$ 175,972

$
$
$

$
－
$ 10,192$ 10,192－－－

16. Net Assets
Under the Japanese Corporate Law ("the Law"), the entire amount paid for new shares is required to be designated as common stock. However, acompany may, by a resolution of the Board of Directors, designate an amount not exceeding one-half of the price of the new shares as additional paid-incapital, which is included in capital surplus.
Under the Law, in cases where a dividend distribution of surplus is made, the smaller of an amount equal to 10% of the dividend or the excess, if any,of 25% of common stock over the total of additional paid-in-capital and legal earnings reserve must be set aside as additional paid-in-capital or legal
earnings reserve. Additional paid-in-capital is included in capital surplus and legal earnings reserve is included in retained earnings in the accompanying
consolidated balance sheets.
Under the Law, legal earnings reserve and additional paid-in capital could be used to eliminate or reduce a deficit and could be capitalized by a resolutionof the shareholders' meeting.
Under the Law, additional paid-in capital and legal earnings reserve may not be distributed as dividends. However, by a resolution of the shareholders'meeting, all additional paid-in-capital and all legal earnings reserve may be transferred to other capital surplus and retained earnings, respectively, which
are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the non-consolidated financial statements of the Company inaccordance with Japanese laws and regulations.

17. Contingent Liabilities
Contingent liabilities as of March 31, 2013 and 2014 were as follows :Japanese yen(millions)

2014

2013
Trade notes receivable discounted
Trade notes receivable endorsed

27 Annual Report 2014

\

725
12

U.S. dollars(thousands)

\

980
2

2014
$

9,522
19

18. 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

2013
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
Share of other comprehensive income of associates accounted for using equity method
Increase (decrease) during the year
Total other comprehensive income

\

463
(2)
461
(160)
301

U.S. dollars(thousands)

\

489
－
489
(167)
322

2014
$

4,751
－
4,751
(1,622)
3,129

5,511

9,946

96,638

13

14

136

5,825

10,28299,90319. Subsequent Event
At the Board of Directors meeting held on May 28, 2014, a resolution was made to introduce a stock-based compensation system linked to company
performance ("the system") for directors (excluding outside directors and non-executive directors) and for executive officers (excluding personnel
assigned overseas, hereinafter, directors and executive officers are referred to as "Directors, etc.") as a highly transparent and objective Directors’compensation system that is closely linked to company performance. The purpose of the system is to improve the Company's performance and enhance
the awareness of contributions to increase corporate value.
The proposal with regard to the adoption of the system was approved at the annual shareholders meeting held on June 24, 2014.
(a) Outline of the System
The System will commence from the year ended March 31, 2015, for a period of two (2) years, to the year ended March 31, 2016. Company stockthat the trust acquires will be distributed to Directors, etc., in a quantity corresponding to the number of points awarded to them in accordance withperformance indicators and rank.
Contents of the Trust Agreement( 1 ) Type of trust( 2 ) Purpose of trust( 3 ) Consignor( 4 ) Trustee( 5 ) Beneficiaries( 6 ) Custodian( 7 ) Trust contract date( 8 ) Trust period( 9 ) Starting date of the System"Monetary trust other than that managed for a particular single purpose (Third-Party-Benefit Trust)"
Incentives for Directors, etc.
Our Company"Mitsubishi UFJ Trust and Banking Corporation (Planned) (Co-trustee : The Master Trust Bank of Japan, Ltd. (Planned))"Directors, etc. who have retired and meet beneficiary requirements
Third party without conflict of interest with the Company (Certified Public Accountants)
August 25, 2014 (Planned)
August 25, 2014 (Planned) - August 31, 2016 (Planned)"October 1, 2014 (Planned) (Points will be awarded from March 31, 2015.)"(10) Voting rights(11) Type of shares acquired(12) Maximum amount of trust money(13) Holder of Vested Rights(14) Residual assets

Shall not be exercisedCompany common stock
240 million yen (Including trust expenses)
Our Company
Residual assets that can be received by the Company as the Holder of Vested Rights shall be the net
after subtracting the funds necessary for the stock acquisition from the trust money.

(b) The number of shares planned to be distributed to Directors, etc.
At the end of every March during the trust period, a number of points will be awarded to Directors, etc. in accordance with their rank and performanceindicators for the fiscal year. One (1) share of Company stock equates to one (1) point. Company stock calculated based on accumulated points shallbe distributed to each Directors, etc., at the time of their retirement.
(c) Beneficiaries
Directors, etc. who have retired and met beneficiary requirements

Annual Report 201428

Independent Auditors' Report
EXEDY CORPORATION AND CONSOLIDATED SUBSIDIARIES

29 Annual Report 2014

Corporate Data
BOARD OF DIRECTORSAND CORPORATE AUDITORSEXECUTIVE OFFICERS

As of June 30, 2014

As of June 30, 2014

As of March 31, 2014

President and Chief Executive Officer :Haruo Shimizu
Director : Hidehito Hisakawa
Hisayasu Masaoka
Masayuki Matsuda
Hiroshi Toyohara
Tadashi Nakahara
Yoshihiro Kojima
Fumio Fujimori
Kagenori Fukumura
Auditors : Keizo Nishigaki
Kanshiro Toyoda
Koji Okada
Takenori Yamasaki

Senior Executive Managing Officer :Hidehito Hisakawa
Hisayasu Masaoka
Masayuki Matsuda
Toshimasa Doi

Name:
EXEDY Corporation

Number of Issued Shares:
48,594 thousand shares

Established:
July 1, 1950

Number of Shareholders:
9,285

Paid-in Capital:￥8,284 million

Average number of shares
held by one Shareholder:5,234 shares

Executive Managing Officer :Shogo Okamura
Yoshio Katayama
Senior Executive Officer :Hiroshi Toyohara
Makoto Ichikawa
Executive Officer :Tadashi Nakahara
Masahito Baba
Yoshihiro Yamamura
Shigeo Tabata
Mitsuhiro Gondo
Yuzuru Hirose

Koji Akita
Kenji Matsuda
Yoshihiro Kojima
Tetsuya Yoshinaga
Shinji Fujimoto
Yoshimi Osanai
Tomoaki GotoOUTLINE OF COMPANY

Number of Employees:
2,551
Number of Authorized Shares:
168,000 thousand shares

Listed on First Sections,Tokyo Stock Exchange

DOMESTIC JAPANESE NETWORKHead Office

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

Tokyo Sales Office

EXEDY Trading Bldg., 5th Floor, 2-17-2 Iwamoto-cho,
Chiyoda-ku, Tokyo, 101-0032
Tel: 81-3-3862-2771 Fax: 81-3-3864-1547

Nishi Tokyo Sales Office

Chubu Sales Office

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

Hiroshima Sales Office

EXEDY Trading Bldg., Room202, 6-6 Sakaemachi, Kaita-cho,
Aki-gun, Hiroshima, 736-0043
Tel: 81-82-821-0021 Fax: 81-82-823-6620

Mitaka Mitsubishi Bldg., 6th Floor, 3-26-12
Shimorenjaku, Mitaka-shi, Tokyo, 181-0013
Tel: 81-422-76-5241/2 Fax: 81-422-76-5243

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

2418 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.

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.

6-17, Kamiki-cho, Moriguchi-shi, Osaka,570-0024
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

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

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 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 VIS RUS LLC (EVR)

Makarova Street 23, Togliatti, 445015, RUSSIA
Tel: 7-8482-758547 Fax: 7-8482-691660

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 201430