Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Overall
Sales	248,081	238,888	3.8	-
Operating income	29,902	24,336	22.9	-
Ordinary income	32,579	26,045	25.1	-
Net income	17,112	17,128	(0.1)	-
Automotive products
Sales	172,533	157,308	9.7	-
Operating income	24,663	18,345	34.4	- Operating income increased due to an improvement in productivity as a result of the Company's Production Innovation Initiative.

 

Performance Forecast

（in million JPY）

	FY2011 Forecast	FY2010 Result	Rate of Change (%)
Sales	250,000	248,081	0.8
Operating income	31,000	29,902	3.7
Ordinary income	34,000	32,579	4.4
Net income	17,500	17,112	2.3

The Fourth Medium-term Three Year Business Plan (April 2010 through March 2013)

1. Enhancing cash flow management

-While further evolving the Production Innovation Initiative, the Company is making a Group-wide effort to innovate processes through reducing costs and lead time in all the business processes. -The Company operates under the Three-dimensional Matrix Management style, a type of management style in which three pivotal sectors work together. The three are the headquarters, functions, and facilities.

2. Establishing the foundation to increase new business

-The Company aims to improve the value provided to the customers. -The Company cultivates a corporate culture that encourages innovation, so that every employee feels the will to create new products and business opportunities and actively work to maintain and achieve the highest level of optical technologies in the world.

 

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

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	4,983	3,586	4,087
Automotive products	1,634	1,092	1,635

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 lighting and power supply units for drive systems
-Light source unit for LCDs

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

5.Materials and processing area

6. Products utilizing above devices and technology

R&D Achievements

-The Company has developed a new technology to improve the life of automotive LED lamps such as tail lamps while concurrently increasing the light volume. As its unique glass coating on the silver plated troffer prevents the silver gilt from sulfurization, which darkens the silver gilt when electric current is applied, the light volume will not decrease due to temporal change. The operating temperature limit has also been improved to 150 degrees C by replacing the plastic case by the ceramic one. Stanley Electric, therefore, has made its LED lamp applicable to high current without enlarging the heatsink and achieved a higher light volume for the LED lamp of the same size as the conventional one. It will sell this as a new technology that ensures the luminance with fewer LED lamps in its attempt to win new business with automakers. (From an article in the Nikkan Jidosha Shimbun on October. 21, 2010)

Technological Cooperation Licensing-in

(As of Mar. 31, 2011)

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 Mar. 31, 2011)

Partner	Content	Term
Thai Stanley electric Public Co., Ltd. (Thailand)	Technology related to automotive lamps	31 March, 2012
SL Lighting Corporation (Korea)	Technology related to automotive lamps	31 March, 2014
Kenmos Technology Co., Ltd. (Taiwan)	Technology related to area light source	31 March, 2012
Lumax Industries Ltd. (India)	Technology related to automotive lamps	31 March, 2012

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	25,895	18,826	25,864
Automotive products	15,577	15,701	14,542

 

Plans for New Production Facilities (Automotive products)

Name (Location)	Type of facility	Total amount (in million JPY)	Start	Completion
Hatano Factory, etc. (Hadano City, Kanagawa Pref.)	Automotive business facilities	11,679	April 2010	March 2012
Hamamatsu Factory, etc. (Hamamatsu City, Shizuoka Pref.)	Automotive and motorcycle facilities	1,152	April 2010	March 2012
Stanley Electric do Brasil Ltda. (Sao Paulo, Brasil)	Automotive business facilities	5,367	Nov. 2009	Jan. 2012
Guangzhou Stanley Electric Co., Ltd. (Guangzhou, China)	Automotive business facilities	7,494	Jan. 2008	Mar. 2013