Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of change (%)	Factors
Sales	117,836	109,850	7.3	-Lower sales because of lower production volumes by customers in Japan. -Sales in the U.S.A., China, Southeast Asia were all over 25% higher year-on-year.
Operating income	2,630	2,506	4.9	-
Ordinary income	3,251	3,063	6.1	-
Net income	2,036	1,586	28.4	-

New Company

-The Company announced that It will establish a production subsidiary in the Tohoku region (northeast Japan) around July 2013. The Company's satellite facility will be located within the Miyagi Plant of Toyota Boshoku Corporation, marking the Company's first foray into the Tohoku area. The Company will deliver efficiently packed, semi-finished products such as window regulators and seat structural parts to the new facility that will be responsible for final assembly of products. This will allow the Company to reduce delivery expenses and enhance cost competitiveness. The new factory will begin production in January 2014, and products will be supplied to Toyota Motor East Japan through Toyota Boshoku. By FY ending Mar. 31, 2016, the new subsidiary aims to achieve yearly sales of approximately JPY 3.3 billion. The facility will have 962 square meters of production area, employing 23 people as of 2015. This is the first time for the Company to introduce the satellite plant system in Japan.

Joint Ventures

-In May 2014, the Company announced that it will establish an Indian joint venture with Technico Industries Ltd., an affiliate of the Company, in July 2014. The new company, which will be called Shiroki Technico India Pvt. Ltd., will manufacture and sell automotive parts such as window regulators and seat components with a floor space of approximately 6,000 square meters. Production is scheduled to start in January 2015. The new company will be capitalized at INR 300 million (approximately JPY 521.5 million), in which Shiroki will hold 50% plus one share, while Technico Industries will own the remaining 50% minus one share. Sales at the new company are expected to reach INR 1.9 billion (approximately JPY 3.3 billion) in the fiscal year ending March 2016. In accordance with the establishment of the joint venture, the Company plans to sell its entire 27.37% stake in Technico Industries to shareholders of the affiliated company.

Contracts

<Japan>
-Additional order for door frame for Toyota "Noah" and "Voxy"; new order for seat parts.
-Order for door frames, window regulars, molding for Toyota "Harrier".
-Order for window regulators for Nissan "Dayz" and Mitsubishi "eK Wagon".

<USA>
-Shiroki North America, Inc. started delivering aluminum door sashes to GM.
-Production was launched to fill orders for door sashes placed by Toyota Motor North America's Mississippi plant for the "Collora"; and by Nissan North America for the "Rogue".

Awards

-In February 2014, the Company has received the "2013 Excellent TNGA  Award" from Toyota for the Seat rail that integrates the locking mechanism into the rail and for the Small diameter round recliner.

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

New Mid-term "Rolling Plan"
-The Company continues 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 JPY 140 billion 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: JPY 200 billion
• 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.

-The Company will make Mid-term "Rolling Plan" 2014-2018 in FY ending March 31, 2015, and will enhance Its action plans to realize Siroki Vision 2021.

Outlook for FY ending Mar. 31, 2015

(in million JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ending Mar. 31, 2014 (Result)	Rate of Change (%)
Sales	121,000	117,836	2.7
Operating income	2,700	2,630	2.7
Ordinary income	2,400	3,251	(26.2)
Net income	1,600	2,036	(21.4)

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

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Automotive components business	2,869	2,729	2,714

R&D Facilities

-At the Technology Center located in Toyokawa city, Aichi prefecture, the Company leverages its accumulated technical know-how to quickly provide attractive products distinguished by high-quality, low-cost, safety, comfort, and environmental friendliness. It's also striving to improve product constructions and materials and to achieve modularization and electronification.

Recent R&D Achievements

Automotive components business
-Power seat adjuster
-Manual seat adjuster
-New wire-type regulators
-New arm-type regulators
-Next generation luggage back door lock
-New construction, light weight aluminum door frame
-Molding with high-design performance
-New manpower saving method of door frame

Product Development

Lock integrated Seat rail (Seat track)
-The Company has developed a spring lock seat rail, the world's first seat rail that integrates the locking mechanism into the rail. While the locking mechanism of existing products comprises a spring and clasps, the new seat rail's spring receives the load from the lever and has the locking function itself. By simplifying the structure, the new seat rail reduces the number of components to 19 from 29, offering a 15% weight reduction and a 10% cost savings compared to existing products. In addition, some components of the new seat rail can be shared between front and rear seats. The Company has already been supplying the new seat rail to Suzuki Motor Corporation and Toyota Motor Corporation since last year. A special award was given by Toyota for promoting use of common parts. Positioning the new seat rail as its main product, the Company intends to win more orders from automakers.

Technology Licensing-out Agreement

(As of Mar. 31, 2014)

Company (Country)	Area of partnership	Contract period
NHK Spring (Thailand) Co., Ltd. (Thailand)	Seat recliners	Dec. 10, 1990 - Dec. 09, 2014
	Seat adjusters	Oct. 21, 1994 - Oct. 20, 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
	Seat recliners Seat adjusters	Feb. 19, 2014 - Until mass production ceases

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Overall	5,285	5,900	3,924

-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.

Investments in Japan

-In January 2014, the Company announced that It will introduce a new line for producing automotive seat adjusters at the Nagoya plant located in Toyoda, Aichi. The new line saves space to one-quarter of a conventional line and can adjust production volume flexibly. In addition, initial investment amount for installing a new line was reduced by 30%. The new line uses largely improved automatic assembly machines for round recliners and seat tracks, which are components of a seat adjuster. The line will be installed within the fiscal year ending March 2015. The Company plans to introduce the line to plants outside Japan in the future.

Investments Outside Japan

<China>
-In July 2013, the Company will open a new plant in Ningbo, China, to produce door frames supplied mainly for Zhejiang Geely Automobile Co., Ltd. The plant will start operations in December 2014. This plant will operate as a branch of Guangzhou Shiroki Corp. in China. The branch will be established in November 2013. CNY 25 million (approx. JPY 384 million) will be invested to construct the plant, which will cover 5,000 square meters. The branch aims to achieve sales of CNY 48 million (approx. JPY 733 million) by the fiscal year ending March 2016.

-In April 2013, the Company announced that Its Chinese subsidiary Guangzhou Shiroki Corp. will establish the Changchun Branch in Henan Province in May 2013. The Changchun Branch will be located within the premises of Zhengzhou Nissan Automobile Co., Ltd., which is calling for local production. The on-site production system at the customer's plant will contribute to saving time and cost of transportation. With an investment of CNY 15 million (approximately JPY 229 million), the 1,800-square-meter plant will perform the finishing process of door frames, starting in December 2013. In FY March 2014, the Changchun facility is expected to generate approximately CNY 44 million (JPY 671 million) in sales, employing some 35 associates.

<Thailand>
-In April 2013, the Company announced that its wholly-owned subsidiary Shiroki Corp. (Thailand) Ltd. will acquire a land and building for its second plant in June 2013 to enhance its production capacity in the ASEAN region where automakers are increasing their production volumes. With an investment of approximately THB 220 million (JPY 706 million), the new plant will cover a land area of 22,000 square meters and a building space of 16,000 square meters at the Amata Nakorn Industrial Estate, Chonburi Province. It will hire about 20 employees and produce stamping parts, starting in May 2014.

<USA>
-The Company will increase production of door frames in the U.S. from the fall of 2013. This move is in response to the first order it has won from General Motors, as well as growing demand from its major customers, including Toyota and Nissan. Shiroki North America, Inc. (Tennessee), which is producing seat parts, will start producing door frames to be supplied to General Motors from September of 2013. Shiroki-GA, LLC located in the state of Georgia currently serves as the Company's major production base of door frames in the U.S. By adding a new supply base, the Company will expand its production capacity to cope with requests from its customers to supply more door frames.

Planned Capital Investment

(As of Mar. 31, 2014)

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	34	Apr. 2014	Mar. 2015
Nagoya plant (Aichi Pref., Japan)	Manufacturing equipment	1,492	Apr. 2014	Mar. 2015
Toyokawa plant (Aichi Pref., Japan)	Manufacturing equipment	635	Apr. 2014	Mar. 2015
Osaka plant (Osaka, Japan)	Manufacturing equipment	45	Apr. 2014	Mar. 2015
Toyokawa head office (Aichi Pref., Japan)	Test equipment	282	Apr. 2014	Mar. 2015
Subsidiaries/Affiliates
Kyusyu Shiroki Co., Ltd. (Fukuoka Pref., Japan)	Manufacturing equipment	463	Apr. 2014	Mar. 2015
Shiroki North America, Inc. (Tennessee, USA)	Manufacturing equipment	679	Jan. 2014	Dec. 2014
Shiroki-GA, LLC (Georgia, USA)	Manufacturing equipment	317	Jan. 2014	Dec. 2014
Shiroki-GT, LLC (Tennessee, USA)	Manufacturing equipment	274	Jan. 2014	Dec. 2014
Shiroki Corp. (Thailand) Ltd. (Chonburi, Thailand)	Manufacturing equipment	273	Jan. 2014	Dec. 2014
Guangzhou Shiroki Corp. (Guangdong, China)	Manufacturing equipment	485	Jan. 2014	Dec. 2014