Financial Overview

(in millions of JPY)

		FY2010	FY2009	Rate of Change (%)	Factors
Overall
Sales		47,337	39,021	21.3	-
Operating income		2,460	1,437	71.2	-
Ordinary income		1,939	1,154	68.0	-
Net income		1,519	544	179.2	-
Automobile Parts Business
Sales	Japan	25,735	33,800	-	1)
	North America	8,712			2)
	Asia	14,173			3)
Operating Profit	Japan	921	1,065	-	-
	North America	(400)			-
	Asia	1,599			-

1）
-Sales were 25,735 million yen and business operating profit was 921 million yen due to increased production volume of vehicle units at the Company’s major customers.
2）
-Sales increased because the Company’s major customers increased their unit-production volumes. However, the Company incurred expenses to reorganize its production operations.  
3)
- Sales increased because the Company’s major customers in China and Thailand increased their vehicle-unit production volumes.

Recent Developments

Automotive Components
-Construction of a new plant and the launch of operations of a plating production line in Thailand.
-Setting up its production facility and conducting sales activities in India;
-Opening its new Shanghai branch and design facility in China.

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009
Overall	1,279	1,074
Automotive Components	942	780

-Total R&D expenses for the 2010 fiscal year, which ended March 2011, was 1,290 million yen; with 942 million being spent on the auto-parts business.

R&D Activities

  Automotive Components
-In October 2010 in China, the Company opened and started operations at its R&D facility located within the premises of Alpha Guangzhou.
-From 2009, the Company launched CAE (Computer Aided Engineering) performed by technical engineers. This has made it possible to ascertain the quality of developments before the prototype phase, significantly enhancing the efficiency of R&D activities. Also, the Company has improved its competitive edge in terms of winning customers by performing analysis that also includes factors on vehicle systems.
-It started optimizing the local content of raw materials.
-The Company, which is actively conducting R&D activities jointly with auto makers, systems suppliers, material makers, and others, established its new product range designed for the mid-term period.

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009
Overall	2,269	2,076

-Total capital investment for FY2010, which ended March 31, 2011, was 2,269 million yen. The Company invested to:.
  -add, rationalize and upgrade production facilities;
  -enhance and strengthen non-production facilities such as its R&D facilities; and
  -construct a new plant at Alpha Industry (Thailand) Co., Ltd., spending 842 million yen; and build a new plant at Alpha Hi-Flex S.A.de C.V., spending 482 million yen.

New Equipment Installations (Automotive Components)

Name (Location)	Type of facility	Planned investment (in million JPY)	Start	Completion
The Company
Gunma Plant (Tatebayashi City, Gunma, Japan)	Dies and machinery to manufacture products for new vehicle models	280	2011.04	2012.03
Subsidiaries
Alpha Industry (Thailand) Co., Ltd. (Prachinburi, Thailand)	Dies	185	2011.01	2011.12
Alpha HI-Lex S.A. de C.V. (Queretaro, Mexico)	Dies	291	2011.01	2011.12
Alpha (Guanzhou) Automotive Parts Co., Ltd. (Huadu, Guangzhou, China )	Machinery to manufacture products	392	2011.01	2011.12
	Dies	212	2011.01	2011.12