June 12, 2017

Research on the settlement of accountof JAPIA member companies in FY 2016
(Summary version)

Japan Auto Parts Industries Association (JAPIA)* The results and numerical data before FY 2015 are released only in Japanese. Please see thewebsite in Japanese.

The Japan Auto Parts Industries Association(JAPIA) researched and analyzed the management

trends of 79 companies among 440 member companies (as of May1, 2017) in FY 2016 (April March) by each company’s consolidated financial summary report (In case that companies don’t
conduct consolidated account settlements, unconsolidated account was adopted). The researchtarget were the member companies which had a ratio of sales of automotive parts at 50% or more
and automotive parts specialized members. For your reference, ten-member companies wereapplying International Financial Reporting Standards (IFRS) (40.1% of net sales in total).

◆ Economic situation
The Japanese economy in FY2006 was in a trend of recovery in personal consumption andexports with an improvement in employment and income environment, although there wereunstable factors such as a feeling of stagnation in capital investment, exchange rate and stock
prices.
As for the global economy, in the United States, the economic recovery continued in response toan increase in personal consumption and a recovery in capital investment, and the policy interest
rate was also raised. In China, there was a concern of economic slowdown, but it picked up again
due to policy effects etc. In Europe, there was also an unstable factor such as the UK's withdrawal
from EU etc., but gradual recovery continued and overall it remained steady.
In the financial market, the exchange rate of JPY to US$ soared from 112 Y/D to 100 Y/D in thefirst half of the fiscal year. After November, JPY depreciated and by the end of December it
became 117 Y/D. After January, JPY appreciated again to the 111 Y/D yen level.

1◆ The results of the settlement and accounts of 79 member companies mentioned above are as
follows:1) 69 companies applying Japanese standard(Unit: JPY 100 million)
FY 2016
FY 2015

Deference
FY 2016-FY 2015

Ratio
FY 2016 to FY 2015

Sales

１５９,９００

１５４,９３４－４,９６６－３.１ ％Operating profit

９,４８８

９,６４３

１５５

１.６ ％

Operating profit
to sales

５.９ ％

６.２ ％

０.３ ｐｔOrdinary profit

９,２０５

９,７８３

５７８

Ordinary profit
to sales

５.８ ％

６.３ ％

０.５ ｐｔ－Current net profit

４,４５５

４,１６４

－２９１

－６.５ ％Net profit to sales

２.８ ％

２.７ ％

－０.１ ｐｔ(JPY 100 million)

Sales(JPY 100 million)

Operating profit

Ordinary profit

－
６.３ ％

－

Current net profit
10.0%

200,000

15,000160,000

12,000120,000

9,000

6.0%

80,000

6,000

4.0%

40,000

3,000

2.0%

(Value)0Operating profit
to salesOrdinary profit
to salesCurrent net profit
to sales0'FY2015 FY2016

8.0%

0.0%
FY2015 FY2016

2FY2015

FY2016FY2015 FY2016

2) 10 companies applying IFRS(Unit: JPY 100 million)
FY 2015

Deference
FY 2016-FY 2015

FY 2016

Ratio
FY 2016 to FY 2015

Sales

１０１,０９３

１０３,５９８

２,５０５

２.５ ％

Operating profit

６,２０８

６,８１９６１１

９.８ ％Operating profit
to sales

６.１ ％

６.６ ％

０.５ ｐｔProfit before tax

６,４８８

７,２０１

７１３

Profit before tax
to sales

６.４ ％

７.０ ％

０.６ ｐｔCurrent net profit

４,１８２

４,４１３２３１Net profit to sales

４.１ ％４.３ ％０.２ ｐｔ(JPY 100 million)

Sales(JPY 100 million)

Operating profit

Profit before tax

Current net profit

Operating profit
to salesProfit before tax
to salesCurrent net profit
to sales－１１.０ ％－

５.５ ％－

10.0%
160,000

12,000120,000

9,000

6.0%

80,000

6,000

4.0%

40,000

3,000

2.0%

(Value)00'FY2015 FY2016

8.0%

0.0%
FY2015 FY2016

FY2015FY2016FY2015 FY2016

Although there was an increase in demand from strong overseas business, due to the impact of
the appreciation of JPY and a decline in demand for micro-cars, net sales decreased 3.1%
(increased 2.5% in companies applying IFRS).
Under these circumstances, operating profit was up1.6%, ordinary income was up 6. 3% and net
income was down 6.5% to FY 2015(companies applying IFRS: operating profit up 9.8%, pre-tax
profit up 11.0% and current profit up 5.5% ).
Analyzing the factors that increase and decrease profitability of each company, factors that
contributed to the increase in operating profit are "streamlining efforts", "operating profit margin
due to production increase", "improving performance at overseas bases", and “changes in thecomposition of parts ". But for factors for the decline in profits, " the impact of the appreciation ofthe JPY", “increase in domestic expenses " and "increase in overseas labor costs" are considered.
3Regarding the factors that declines ordinary profit, 'occurrence of foreign exchange loss' is cited.
In the earnings structure, although sales have decreased, earnings improvement is seen due torationalization effects such as cost reduction activities.
The following is the information about 35 companies that describe regional segment information
under financial summary reports (of which IFRS companies are 5 and sales ratio is 52.1%) forreference. Increase in income and profit in the domestic market (IFRS companies recorded
increase in income and decrease in profit), while decrease in income and increase in profit wererecorded in North, Central and South America and Europe, as well as in Asia.
Consumption in China was steady due to the tax reduction for small car sales in China, and inIndonesia, domestic demand was picked up mainly due to the tax incentive system. For Japanesecompanies, the Asian market continues to be an important source of profit.

4Research on the settlement of accountby JAPIA member companies in FY 2016(Data version 1)- Settlement of account of 69 companies applying Japanese standard –◆ 69 companies applying Japanese standard (same table as that of summary version)(Unit: JPY 100 million)
Deference
FY 2016-FY 2015

FY 2016

FY 2015

Ratio
FY 2016 to FY 2015

Sales

１５９,９００

１５４,９３４－４,９６６－３.１ ％Operating profit

９,４８８

９,６４３

１５５

１.６ ％

Operating profit
to sales

５.９ ％

６.２ ％

０.３ ｐｔOrdinary profit

９,２０５

９,７８３

５７８

Ordinary profit
to sales

５.８ ％

６.３ ％

０.５ ｐｔCurrent net profit

４,４５５４,１６４－２９１

Net profit to sales

２.８ ％２.７ ％－０.１ ｐｔ◆ (Appendix) Increase and decrease in FY 2016
（Unit: No. of companies）
Increased

Decreased

TotalSales

1950

69

Operating profit

3838(0)

3131
31(0)

69(0)

Ordinary profit

39
39(0)

30(2)

69(2)

Current net profit

444444(1)(44(1)2525(6)69(7)* ( ) = No. of companies that settlement is in a deficit.

52－
６.３ ％
－－６.５ ％
－◆ Trends of sales and operating profit（Unit: No. of companies）
Operating profit
Increased

Sales

Decreased

Total

Increased

14(20.3)

5(7.2)

19(27.5)

Decreased

24(34.8))

26(37.7)50(72.5)

Total

38(55.1)

31(44.9)69(100.0)* ( ) = Composition ratio(%)◆ Trends of sales and ordinary profit（Unit: No. of companies）
Ordinary profit
Increased

Sales

Decreased

Total

Increased

11(15.9)8(11.6)19(27.5)

Decreased

28(40.6)22(31.9)50(72.5)

Total

39(56.5)30(43.5)69(100.0)* ( ) = Composition ratio(%)◆ Trends of sales and current net profit（Unit: No. of companies）
Current net profit
Increased

Sales

Decreased

Total

Increased

13(18.8)6(8.7)

19(27.5)

Decreased

31(44.9)19(27.5)50(72.4)

Total

44(63.7)25(36.2)

69(100.0)* ( ) = Composition ratio(%)

6◆ Profit structure
FY 2015
Value(JPY 100million)

FY 2016

Composition
ratio(%)(JPY 100million)

Deference
FY2016FY2015

G. rate(%)

Composition
ratio(%)

Deference
ofcomposition

ValueSales

159,900

100.0 ％

154,934-4,966- 3.1 ％100.0 ％

±0.0 ％

Sales cost134,888

84.4 ％

129,832-5,056- 3.7 ％

83.8 ％- 0.6 ％

Sales & administrative
expenses

15,524

9.7 ％15,459-65- 0.2 ％

10.0 ％+ 0.3 ％

Operating profit

9,488

5.9 ％

9,643

155

+ 1.6 ％

6.2 ％+ 0.3 ％

Nonoperating profit

1,180

0.7 ％

1,209

29

+ 2.5 ％

0.8 ％+ 0.1 ％

Nonoperating expense

1,463

0.8 ％

1,069-394- 27.3 ％0.7 ％- 0.1 ％

Ordinary profit

9,205

5.8 ％

9,783

578

+ 6.3 ％

6.3 ％+ 0.5 ％

Extraordinary profit

648

0.4 ％685

37+ 5.7 ％0.4 ％± 0.0 ％

Extraordinary loss

1,980

1.3 ％

2,909929+ 55.5 ％1.9 ％+ 0.6 ％

Profit before tax

7,873

4.9 ％

7,559-314- 4.0 ％

4.9 ％± 0.0 ％

Current net profit

4,455

2.8 ％

4,164-291- 6.5 ％

2.7 ％- 0.1 ％◆ (Reference data) Trends of sales and profit by company location（Unit: JPY 100 million）
Sales

Operatingprofit

G. rateG. rateProfit rate
In FY 2015

Profit rate

３７,４３８+ ２.６ ％

１,８２２+ １２.２ ％

４.９ ％

４.４ ％

２２,５８６－８.４ ％９５０+ １３.３ ％

４.２ ％

３.４ ％

Europe４,６８６－３.７ ％１１８+ ９４.２ ％

２.５ ％

１.３ ％

Asia

２０,８９８－３.８ ％１,９２６+ ７.２ ％

９.２ ％

８.３ ％

others５５２－１.９ ％３２－０.４ ％

５.８ ％

５.７ ％

(Deleted)-７,４３７―

３０―

Total

７８,７２３－２.８ ％JapanSouth & Central
AmericaOver
seas

４,８７８+ １１.４ ％* Tendency of 30 companies which released regional performances* 50.8% of companies applying Japanese standard(Sales basis)

7％

―％

６.２ ％

―％

５.４ ％

Research on the settlement of accountby JAPIA member companies in FY 2016(Data version 2)- Settlement of account of 10 companies applying IFRS–◆ 10 companies applying IFRS (same table as that of summary version)(Unit: JPY 100 million)
FY 2015

FY 2016

Deference
FY 2016-FY 2015

Ratio
FY 2016 to FY 2015

Sales

１０１,０９３

１０３,５９８

２,５０５

２.５ ％

Operating profit

６,２０８

６,８１９６１１

９.８ ％Operating profit
to sales

６.

６.

１ ％

０.５ ｐｔ－６ ％Profit before tax

６,４８８

７,２０１

Profit before tax
to sales

６.

７.

４ ％

７１３０.６ ｐｔ

１１.０ ％－０ ％Current net profit

４,１８２

４,４１３

Net profit to sales

４.

４.

１ ％

２３１
０.２ ｐｔ３ ％◆ (Appendix) Increase and decrease in FY 2016
（Unit: No. of companies）
Increased

Decreased

Total

Sales

3710

Operating profit

7(0)

3(1)

10(1)

Profit before tax

7(0)

3(1)

10(1)

Current net profit

6(0)

4(1)

10(1)

* ( ) = No. of companies that settlement is in the deficit.

8

５.５ ％
－◆ Trends of sales and operating profit（Unit: No. of companies）
Operating profit
Increased

SalesDecreased

Total

Increased

2(20.0)1(10.0)3(30.0)Decreased

5(50.0)2(20.0)7(70.0)Total

7(70.0)3(30.0)10(100.0)* ( ) = Composition ratio(%)◆ Trends of sales and profit before tax（Unit: No. of companies）
Profit before tax
Increased

Sales

Decreased

Total

Increased

2(20.0)1(10.0)3(30.0)Decreased

5(50.0)2(20.0)7(70.0)Total

7(70.0)3(30.0)10(100.0)* ( ) = Composition ratio(%)◆ Trends of sales and current net profit（Unit: No. of companies）
Current net profit
Increased

Sales

Decreased

Total

Increased

2(20.0)1(10.0)3(30.0)Decreased

4(40.0)3(30.0)7(70.0)Total

6(60.0)4(40.0)10(100.0)* ( ) = Composition ratio(%)

9◆ Profit structure
FY 2015
Value(JPY 100million)

FY 2016

Composition
Ratio (%)(JPY 100million)

Deference
FY2016FY2015

G. rate (%)

Composition
Ratio (%)

Deference
ofcomposition

ValueSales

101,093

100.0 ％

103,598

2,505+ 2.5 ％

100.0 ％

±0.0 ％

Sales cost

84,72983.8 ％86,972

2,243+ 2.6 ％

84.0 ％+ 0.2 ％

Sales & administrative
expenses

9,522

9.4 ％

10,065543+ 5.7 ％

9.7 ％+ 0.3 ％

Other profits

526

0.5 ％

812

286

+ 54.4 ％0.8 ％+ 0.3 ％

Other costs

1,151

1.1 ％

569

-582

- 50.6 ％0.5 ％- 0.6 ％

Ordinary profit

6,208

6.1 ％

6,819

611

+ 9.8 ％

6.6 ％+ 0.5 ％

Financial profit

534

0.5 ％

556

22

+ 4.1 ％

0.5 ％± 0.0 ％

Financial cost

409

0.4 ％

296

-113

- 27.7 ％0.3 ％- 0.1 ％

Profit before tax

6,488

6.4 ％

7,201713+ 11.0 ％7.0 ％+ 0.6 ％

Current net profit

4,182

4.1 ％

4,413

231

+ 5.5 ％

4.3 ％+ 0.2 ％◆ (Reference data) Tends of sales and profit by company location（Unit: JPY 100 million）
Sales

OperatingprofitG. rateG. rateProfit rate
In FY 2015

Profit rate

３０,０３２+ １.４ ％

１,４２８－９.２ ％

４.８ ％

５.３ ％

１４,９５４－５.９ ％

７６９+ １４.１ ％

５.１ ％

４.２ ％

Europe６,４９２－２.５ ％

２３６+ ２６.１ ％

３.６ ％

２.８ ％

Asia

１５,７７６－１.８ ％

１,６７８+ ９.７ ％１０.６ ％

９.５ ％others７３５+ １０.１ ％

６４―％

―％

―％

(Delete)-１１,９６３―-５１―％

―％

―％

Total

５６,０２６－１.０ ％Japan
South & Central
America

Over
seas

４,１２４

* Trends of 5 companies releasing regional performances* 54.1% of companies applying IFRS (Sales basis)10+ ４.８ ％７.４ ％７.０ ％