Financial Overview

(in million JPY)

	FY2008	FY2007	Rate of Change	Factors
Sales	123,425	143,557	(14.0)	Sales and profit decreased for the following reasons: As a result of substantial slowdown in the global economy, sales of vehicles, especially luxury and larger cars, decreased in the USA and Japan. Sales of vehicles decreased in emerging countries including China and India. In addition, due to inventory adjustment by automakers, the Company's main customers, production substantially decreased.
Operating income	(31)	5,058	-
Ordinary income	(773)	3,931	-
Net income	(2,190)	2,907	-

Regional Trend

-Japan

Sales were 90 billion 389 million yen, a 14.3% decrease year-on-year, and operating loss was 1 billion 405 million yen, as a result of sluggish automobile sales in Japan and substantial decrease in export and inventory adjustment by automakers, the Company's main customers.

-North America

Despite the efforts of Shiroki North America Inc. to expand sales at the Group's largest overseas production facilities, it was forced to reduce production due to a substantial decrease in orders received from automakers, its main customers, as a result of the slowdown in the US economy. Foreign exchange loss also adversely affected the Company's performance. Sales in North America were 22 billion 735 million yen, a 20.4% decrease year-on-year, and operating loss was 490 million yen.

-Asia

The Company enjoyed favorable sales in China, because Guangzhou Shiroki Corp. started to produce products including door sashes for new models of Toyota and Nissan in response to new orders received from the automakers.
In Thailand, sales were steady, because Shiroki (Thailand), Co., Ltd. started to produce unit components for automotive seats in addition to wind regulators and door sashes. As a result, sales were 10 billion 300 million yen, a 7.6% increase year-on-year, and operating income was 1 billion 509 million yen, a 15.6% increase year-on-year.

Orders

The Company developed the world's lightest weight wind regulator jointly with Toyota and supplied the product for Toyota's small car "iQ".

The Corporation revealed that Technico Industries, Ltd. in Gurgaon, Haryana, India, in which the company takes a stake, has won a contract to supply all the window regulators for use in Toyota's newly developed small model, which Toyota will start producing in 2010 in India. In response to the contract, Technico will build a new plant in the suburbs of Bangalore where production facilities of Toyota are located. Shiroki has decided to increase investment ratio in Technico. It will fully engage in business in India, which is expected to enjoy expanding domestic demand as well as has high potential as an exporting center. (From an article in the Nikkan Jidosha Shimbun on Sep. 24 2008)

Production system reorganization

The Corporation, Aichi Pref., Japan, has decided to make the one-shift operation permanent at its plants in Japan. In response to production cutback of automakers, its domestic plants has switched to one-shift operation since the beginning of 2009. Shiroki will, hereafter, review the employee allocation and make facility investments for higher efficiency such as automation based on one-shift operation, in accordance with the production level of the time and medium- to long-term trends in domestic production. It will incorporate this policy into "Shiroki Vision 2012," its new mid-term management plan developed in June, 2008, in order to accelerate streamlining its domestic operations. The original plan was aimed at restructuring and streamlining domestic production operations based on the two-shift system. In response to globally shrinking demand and decreasing export volume of complete vehicles owing to the higher yen, the automotive supplier has changed its policy so that its normal operation should be on one-shift basis. (From an article in the Nikkan Jidosha Shimbun on Feb. 3 2009)

Capital Injection

The Corporation will make an additional 175 million rupees (approx. 437 million yen) worth investment in Technico Industries Ltd. in India, to whom Shiroki currently licenses some technologies. Technico manufactures and sells automotive parts including window regulators, door hinges, and gear shift levers. Previously, in September 2007, the Company invested 10 million yen in the Indian auto parts maker. With this additional capital increment the Company is aiming to better serve the needs of its main customers who plan to increase production in the country as well as to aggressively explore more opportunities in India, China, Thailand, and other regions to win new supply contracts for the vehicles to be marketed in the emerging nations. (From a press release on Aug. 6, 2008)

R&D Expenses

(in million JPY)

(in million JPY)	FY2008	FY2007	FY2006
Automotive components business	2,358	2,291	2,142

Recent R&D achievements (Automotive components business)

-Next-generation power seats
-Next generation manual seats
-New wire-type regulators
-New arm-type regulators
-New door frames

Technical partnership (Licensing-in) (As of Mar. 31, 2009)

Company (Country)	Area of partnership	Contract period
Keiper-Recaro GmbH & Co. (Germany)	Seat recliners	Apr. 1, 1988 - Mar. 31, 2010

Technical partnerships (Licensing-out) (As of Mar. 31, 2009)

Company (Country)	Area of partnership	Contract period
NHK Spring (Thailand) Co., Ltd. (Thailand)	Seat recliners	Dec. 10, 1990 - Dec. 09, 2009
Summit Laemchabang Auto Body Co. (Thailand)	Door frames	Feb. 21, 1994 - Dec. 31, 2010
Asan Co., Ltd. (Korea)	Automotive door frames	May 08, 2003 - Oct. 31, 2009

Capital Expenditure

(in million JPY)

(in million JPY)	FY2008	FY2007	FY2006
Overall	6,631	8,807	7,371

Most of the Company's capital investment was devoted to the automotive component business. The Company improved facilities in order to improve productivity and reduce cost and prepared the facilities to produce products for new vehicle models.

New equipment installation

Company name (Location)	Equipment to be installed	Estimated amount of investment (in million JPY)	Project period
			From	To
The Company Fujisawa plant - headquarters (Kanagawa Pref., Japan)	Manufacturing equipment	564	Apr. 2009	Mar. 2010
The Company Nagoya plant (Aichi Pref., Japan)	Manufacturing equipment	199	Apr. 2009	Mar. 2010
The Company Toyokawa plant (Aichi Pref., Japan)	Manufacturing equipment	1,654	Apr. 2009	Mar. 2010
The Company No.4 production section, Toyokawa plant (Aichi Pref., Japan)	Manufacturing equipment	166	Apr. 2009	Mar. 2010
The Company Osaka plant (Osaka Pref., Japan)	Manufacturing equipment	476	Apr. 2009	Mar. 2010
The Company Toyokawa head office (Aichi Pref., Japan)	Testing equipment	421	Apr. 2009	Mar. 2010
Kyusyu Shiroki Co., Ltd. Fukuoka Pref., Japan	Manufacturing equipment	32	Apr. 2009	Mar. 2010
Shiroki North America, Inc. (Tennessee, USA)	Manufacturing equipment	134	Apr. 2009	Mar. 2010
Shiroki-GA, LLC (Georgia, USA)	Manufacturing equipment	105	Apr. 2009	Mar. 2010
Shiroki-GT, LLC (Tennessee, USA)	Manufacturing equipment	30	Apr. 2009	Mar. 2010
Shiroki (Thailand), Co., Ltd.	Manufacturing equipment	16	Apr. 2009	Mar. 2010
Guangzhou Shiroki Corp. (Guangdong, China)	Manufacturing equipment	375	Apr. 2009	Mar. 2010