Financial Overview

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of change (%)	Factors
Sales	109,850	110,510	(0.6)	-While sales in North America and Southeast Asia were strong, sales decreased year-on-year in Japan and China.
Operating income	2,506	5,331	(53.0)	-
Ordinary income	3,063	5,358	(42.8)	-
Net income	1,586	2,407	(34.1)	-

Business Overview

<Japan>
-The Company's smaller recliner, spring-lock seat rail, and new-type wire regulators are being equipped on the Suzuki "Wagon R" and "Spacia". These products were developed to highlight special features rooted in making products lighter in weight and less costly.
-Luggage closures are being equipped on the Toyota Lexus series and "Crown".
-In March 2013, the Company was awarded the Quality Management Award from Hino Motors.

<Indonesia>
-The Company's subsidiary PT. Shiroki Indonesia completed its plant building in July 2012 and launched commercial production in February 2013.

<Thailand>
-The Company announced that in July 2012, it will establish a subsidiary in Thailand. The new company, Shiroki Asia Corporation Limited, will support the growth of its operations in Asia and strengthening sales, procurement and technological activities. It will be capitalized at 10 million baht, 25 million yen. The sales are expected to be about 80 million baht, approximately 200 million yen, in fiscal 2015. (From a press release on May 10, 2012)

<USA>
-Shiroki North America, Inc. supplied door sashes to Nissan North America. This is the fourth vehicle in a row that the Company helped launch for Nissan North America.

-The Company worked in preparing for the August 2013 production launch of aluminum sashes for GM. This will be the first time for the Company to supply GM in North America.

-Shiroki North America, Inc. was awarded the American Region Excellence in Quality Award for the second time in a row from Nissan North America.

Business Policy

Satellite-based New Supply System
-The Company will introduce a new "satellite supply system" that is capable of cutting logistics cost by up to 50 percent compared with the current system. Products, such as seat adjusters and door frames, which are supplied by the Company, are carried in the form of modules or semi-finished products to a "satellite" locations close to customers' assembly plants. They go through a final assembly process at the facility before they are delivered to customers. The new system will be deployed primarily in North America and China where supply areas are widely spread. The "satellite system" consists of the existing plant as a supply base and small scale assembly facilities located separately. An efficient supply structure will be developed with low-level expenditures. The Company has already begun to propose this concept to its customers, envisioning establishing up to four "satellite locations" in the mid-term business plan through March 2016. (From an article in the Nikkan Jidosha Shimbun on July. 4, 2012)

Mid-term Management Plant/Long-term Plans for the Future

New Mid-term "Rolling Plan"
-The Company announced its new mid-term management plan that will cover the period ending with the 2016 fiscal year (March 2017). The "Rolling Plan", which sets 2012 fiscal year as the benchmark, aims to increase consolidated operating income 21.7% to 140 billion yen and raise its profit margin from 3.4% to 5.0%. In order to achieve these objectives, the Company will follow the strategies outlined below.

• Foster the development of next-generation products while continuing work on mainstream products such as seat adjusters.
• Speed up the development of global operations by building new plants at a pace of one every two years and increase business outside Japan.
• Reorganizing production operations with a view toward re-establishing its supply structure in the Tohoku Region of Japan, creating the organizational foundation that can ensure sustainable profits in Japan.

Long-term Plans for the Future: Shiroki Vision 2021
-Along with the Rolling Plan, the Company announced its Shiroki Vision 2021 that plans the business roadmap for the 2021 fiscal year ending in March 2022.

<Performance Objectives>

• Operating revenue: 200 billion yen
• Profit margin: 5%
• Ratio of sales outside Japan: 50%

-The Company will advance the initiatives it set in its mid-term plan so as to lay the groundwork for achieving the above-mentioned objectives. For the time being, business expansion worldwide will based on parts used in seating systems, with the Company increasing sales of these parts to Toyota and other global OEMs. While commercializing next-generation products, the Company will further advance its existing production methods, facilities, and logistics structure and enhance its competitive advantages.

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

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Automotive components business	2,729	2,714	2,392

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

Technology Licensing-in Agreement

(As of Mar. 31, 2013)

Company (Country)	Area of partnership	Contract period
Keiper GmbH & Co. (Germany)	Seat recliners	Apr. 2, 1979 - Mar. 31, 2014
	Seat recliners	Feb. 1, 1996 - Mar. 31, 2014

Technology Licensing-out Agreement

(As of Mar. 31, 2013)

Company (Country)	Area of partnership	Contract period
NHK Spring (Thailand) Co., Ltd. (Thailand)	Seat recliners	Dec. 10, 1990 - Dec. 09, 2013
	Seat adjusters	Oct. 21, 1994 - Oct. 20, 2013
Summit Laemchabang Auto Body Co. (Thailand)	Door frames	Feb. 21, 1994 - Dec. 31, 2014
Asan Co., Ltd. (Korea)	Door frames	Apr. 12, 2006 - Until completion of the Project
RG Brose (South Africa)	Window regulators	Nov. 5, 2004 - Mar. 31, 2015
Brose do Brasil (Brazil)	Window regulators	May 2, 2005 - Mar. 31, 2015
Technico Industries Ltd. (India)	Seat recliners Seat adjusters	Feb. 18, 2010 - Until mass production ceases
	Window regulators	Nov. 15, 2010 - Until mass production ceases
	Window regulators Seat recliners Seat adjusters	Jul. 23, 2011 - Until mass production ceases
	Window regulators	Nov. 24, 2011 - Until mass production ceases

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Overall	5,900	3,924	2,053

-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.

Planned Capital Investment

(As of Mar. 31, 2013)

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	159	Apr. 2013	Mar. 2014
Nagoya plant (Aichi Pref., Japan)	Manufacturing equipment	744	Apr. 2013	Mar. 2014
Toyokawa plant (Aichi Pref., Japan)	Manufacturing equipment	828	Apr. 2013	Apr. 2014
Osaka plant (Osaka, Japan)	Manufacturing equipment	194	Apr. 2013	Apr. 2014
Toyokawa head office (Aichi Pref., Japan)	Manufacturing equipment	342	Apr. 2013	Apr. 2014
Subsidiaries/Affiliates
Kyusyu Shiroki Co., Ltd. (Fukuoka Pref., Japan)	Manufacturing equipment	130	Apr. 2013	Mar. 2014
Shiroki North America, Inc. (Tennessee, USA)	Manufacturing equipment	1,209	Jan. 2013	Dec. 2013
Shiroki-GA, LLC (Georgia, USA)	Manufacturing equipment	413	Jan. 2013	Dec. 2013
Shiroki-GT, LLC (Tennessee, USA)	Manufacturing equipment	43	Jan. 2013	Dec. 2013
Shiroki (Thailand), Co., Ltd. (Chonburi, Thailand)	Manufacturing equipment	1,078	Jan. 2013	Dec. 2013
Guangzhou Shiroki Corp. (Guangdong, China)	Manufacturing equipment	684	Jan. 2013	Dec. 2013