Financial Overview

(in million JPY)

	FY2010 (ended Mar. 2011)	FY2009	Rate of change (%)	Remarls
Sales	117,704	111,924	5.2	-
Operating income	6,400	2,680	138.8	-
Ordinary income	5,678	2,200	158.1	-
Net income	6,095	2,324	162.3	-

Regional Trend

Japan
The Company’s aluminum door sashes, which were made significantly lighter in weight compared to conventional products, were being installed on Nissan’s Leaf, an electric vehicle that was launched for sale in December 2010.

Shiroki-Brose Corporation (located in Toyota, Aichi Prefecture), a joint venture with Germany-based Brose, was liquidated in February 2011 in order to improve efficiency in the Group’s management and operations.

In March 2011, Matsumi Corporation (located in Toyota, Aichi Prefecture) became a wholly owned subsidiary. Previously, it was a subsidiary accounted for under the equity method.

The Company announced that Toyota Motor Corporation, its major customer, will become its largest shareholder. Toyota will purchase additional 2,524,000 Shiroki shares (2.84 percent of all Shiroki shares) from Tokyu Corporation, which now holds the greatest number of Shiroki shares. The acquisition will increase Toyota's ownership ratio in Shiroki to 19.77 percent. At the same time, Tokyu will sell 11,254,000 shares (12.64 percent of all Shiroki shares) in Shiroki to Aisin Seiki Co., Ltd. in the Toyota Group, which makes Aisin Seiki the third largest stock holder of Shiroki. According to Shiroki's business result for the second quarter of the year ending in 2011, the ratio of sales to Toyota of overall sales reached 37 percent. When business with Daihatsu Motor Co., Ltd. and Hino Motors, Ltd. is combined, sales to the Toyota Group made up as much as 64 percent. Shiroki and Aisin Seiki, which compete in the area of seat and door products, share their business to Toyota with each company specializing in certain vehicle models and grades. With Aisin becoming one of leading shareholder of Shiroki, the two companies will strengthen business collaboration by sharing management resources in emerging countries. (From an article in the Nikkan Jidosha Shimbun on November. 29, 2010)

On April 8, 2011, a portion of the stock held by Tokyu Corporation was transferred to Toyota Motor and Asishin Seiki.

U.S.A
Shiroki North America, Inc., located in Tennessee, worked to increase sales to local car manufacturers. It won a new supply agreement with GM as its new customer. This was the first transaction for the Company in terms of winning business directly with a non-Japanese car company.

China
In responding to the increased production volume by customers based locally in China, Guangzhou Shiroki Corp., located in Guangzhou, largely increased its sales by further localizing procurement of equipment and dies; and revising its production processes, which were needed to enhance its competitive advantages over local makers competing for business.

Thailand
Shiroki Corp. (Thailand) Ltd., located in Chonburi Province, enjoyed a strong sales increase as a result of boosting its production volume of window regulators for Toyota’s vehicle destined for sales worldwide, the Innova. And addition, the Thai subsidiary worked on increasing its production volume of auto-seat parts, aiming to sell more volume to Indonesia.

India
In July 2010, the Company increased its investment in Indian auto-parts maker, Technico Industries Ltd.(located in Haryana State), raising its stakeholding to 27% and strengthening its presence in India. Also, based on a technical license agreement from the Company, Technico started to produce window regulators in December 2010 for Toyota in India’s vehicle destined for sales in developing countries, responding to the increase in production volumes by car-company customers in the country..

>>>Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)

R&D Expenditure

(in million JPY)

	FY2010	FY2009	FY2008
Automotive components business	2,392	2,154	2,358

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, 2010)

Company (Country)	Area of partnership	Contract period
Keiper GmbH & Co. (Germany)	Seat recliners	Apr. 1, 1988 - Mar. 31, 2012

Technical Partnerships (Licensing-out)

(As of Mar. 31, 2010)

Company (Country)	Area of partnership	Contract period
NHK Spring (Thailand) Co., Ltd. (Thailand)	Seat recliners	Dec. 10, 1990 - Dec. 09, 2012
NHK Spring (Thailand) Co., Ltd. (Thailand)	Seat adjusters	Oct. 21, 1994 - Oct. 20, 2012
Summit Laemchabang Auto Body Co. (Thailand)	Door saches	Feb. 21, 1994 - Dec. 31, 2012
Asan Co., Ltd. (Korea)	Door frames	May 08, 2003 - Until completion of the Project
RG Brose (South Africa)	Window regulators	Nov. 5, 2004 - Mar. 31, 2013
Brose do Brasil (Brazil)	Window regulators	May 2, 2005 - Mar. 31, 2015
Technico Industries Ltd.	Seat recliners Seat adjusters	Feb. 18, 2010 - Feb. 17, 2012

Capital Expenditure

(in million JPY)

	FY2010	FY2009	FY2008
Overall	2,053	5,439	6,631

-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
Fujisawa plant -headquarters (Kanagawa Pref., Japan)	Manufacturing equipment	93	Apr. 2011	Mar. 2012
Nagoya plant (Aichi Pref., Japan)	Manufacturing equipment	705	Apr. 2011	Mar. 2012
Toyokawa plant (Aichi Pref., Japan)	Manufacturing equipment	1,290	Apr. 2011	Mar. 2012
Osaka plant (Osaka Pref., Japan)	Manufacturing equipment	51	Apr. 2011	Mar. 2012
Toyokawa head office (Aichi Pref., Japan)	Testing equipment	280	Apr. 2011	Mar. 2012
Kyusyu Shiroki Co., Ltd. Fukuoka Pref., Japan	Manufacturing equipment	51	Apr. 2011	Mar. 2012
Shiroki North America, Inc. (Tennessee, USA)	Manufacturing equipment	168	Jan. 2011	Dec. 2011
Shiroki-GA, LLC (Georgia, USA)	Manufacturing equipment	286	Jan. 2011	Dec. 2011
Shiroki-GT, LLC (Tennessee, USA)	Manufacturing equipment	174	Jan. 2011	Dec. 2011
Shiroki (Thailand), Co., Ltd.	Manufacturing equipment	31	Jan. 2011	Dec. 2011
Guangzhou Shiroki Corp. (Guangdong, China)	Manufacturing equipment	411	Jan. 2011	Dec. 2011