Financial overview

( in millions of JPY )

	FY2008	FY2007	Rate of Change (%)	Factors
Overall
Sales	283,302	354,469	(20.1)	-
Operating income	23,392	46,563	(49.8)	-
Ordinary income	25,398	48,896	(48.1)	-
Net income	12,128	29,732	(59.2)	-
Car Electronics Division
Sales	208,497	246,368	(15.3)	-
Operating income	18,339	26,443	(30.7)

Highlights by Region

<Japan>
Sales decreased as a result of the global slump in demand and poor domestic demand which arose through a decreased in individual consumption.

<North America>
Automotive sales in the U.S.A. significantly decreased as a result of the worsening financial crisis. This greatly affected the Company and its sales remained at substantially lower levels.

<Asia Pacific>
Orders for products for motor cycles and electronic device products such as LED decreased in line with worldwide production decreases.

<China>
Revenues increased due to increased orders for automotive device products.

<Other regions>
Sales of automotive device products, electronic device products and electronic application products decreased as a whole.

Mid-term Business Plan

- The Company's "Third Mid-term 3-year Business Plan" started in April of 2007.
- Hatano Factory, its main automotive lamp manufacturing facilities in Japan, aims to become a model plant with superior productivity and is implementing staged restructuring.
- Construction of its new No.1 Building at Hatano Factory was almost complete as of April 2009. The Company plans to move production equipment and carry out other preparations to start phased production at the new plant in August 2009.

Total R&D expenses for FY2008, which ended Mar. 2009, are as follows.
- Total R&D expenses: 4,087 million yen.
- Automotive products: 1,635 million yen
- Electronic products: 2,452 million yen

Main fields of R&D
1. Optoelectronics area
- High power white LEDs
- High power red/infrared LEDs
- High speed sensitive image sensors

2. Display area
- Super-high contras LCDs
- Optical micro-scanners
- Display drive circuits

3. Source of light and illumination area
- Automotive lamps
- Cold Cathode Fluorescent Lamps (CCFLs)
- LED street lightings, indoor lightings and power supply units for drive systems
- Light source unit for LCDs

4. Software area
- Distribution light simulation systems
- Optical device optimal design tools
- Human interfaces

5. Products utilizing above devices and technology

Technological Cooperation Licensing-in (As of March, 2009)

Partner	Technology	Period
Hitachi Ltd.	Patent on LCD	Validity period of the patent
Nichia Corporation	Patent on White LED	Validity period of the patent

Technical Tie-up for Automotive Lights (As of March, 2009)

Partner	Content	Term
Thai Stanley electric Public Co., Ltd. (Thailand)	Technology related to automotive lamps	31 Mar., 2009 (Note)
SL Lighting Corporation (Korea)	Technology related to automotive lamps	31 Mar., 2009 (Note)
Kenmos Technology Co., Ltd. (Taiwan)	Technology related to area light source	31 Mar., 2010
Lumax Industries Ltd. (India)	Technology related to automotive lamps	31 Mar., 2010

(Note) Contract extension is under negotiation.

Total capital investment was 25,864 million yen in FY2008.
Out of the total amount, the Company invested 14,542 million JPY in manufacturing facilities for the automotive business.

Plans for new production facilities (Automotive components)

Name	Location	Planned total investment (million yen)	Start month and year	Planned completion
Stanley Electric Co., Ltd. (Hatano Factory, etc. )	Hatano City, Kanagawa Pref., etc.	17,503	Apr., 2008	Mar., 2010
Guangzhou Stanley Electric Co., Ltd.	Guangzhou, China	8,112	Jan., 2008	Mar., 2013