Analysis of operating results

Operating Results for the Consolidated Fiscal Year under review Overall, the global economy during the consolidated fiscal year under review showed a moderate recovery, reflecting stagnant economic conditions in China and emerging countries, although the U.S. economy continued to rebound and the European economy also began to recover. The economy in Japan showed signs of gradual recovery supported by a lift in capital investment as company revenue improved. However, individual consumption and industrial production, among other factors, remained weak, and a temporary lull in the economy continued. Under these conditions, the Topy Industries Group has implemented the medium-term consolidated management plan “Growth & Change 2015” with a basic principle of global “Growth” and “Change” to achieve a highly profitable business structure. As one part of this plan, the Group began manufacturing passenger car wheels at Topy MW Manufacturing Mexico S.A. DE C.V.(Guanajuato, Mexico). In the power generation business, it implemented business reforms and began supplying power to Power Producer and Suppliers (PPS). We have also continued to work on maintaining an appropriate sales price of steel, establishing a production system that responds to demand, improving productivity, and lowering costs through energy-conservation activities. Meanwhile, the Group worked to restructure its construction machinery parts business and mining wheels business in China. As a result, net sales for this consolidated fiscal year for the Topy Industries Group were ¥215,872 million (year-to-year comparison, 9.2% decrease), operating income was ¥10,000 million (year-to-year comparison, 55.7% increase), ordinary income ended at ¥8,806 million (year-to-year comparison, 45.8% increase). However, due to the allocation of a loss from restructuring associated with the integration of manufacturing sites in China, etc., the net income attributable to owners of parent ended at ¥1,700 million (year-to-year comparison, 27.9% decrease).