Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	243,108	248,081	(2.0)	-Both operating revenue and operating profit fell year-on-year due to lower production volumes by customers, both in and outside Japan, whose operations had been impacted by the Great East Japan Earthquake and the flooding in Thailand.
Operating income	26,439	29,902	(11.6)
Ordinary income	28,580	32,579	(12.3)	-
Net income	13,822	17,112	(19.2)	-
Automotive products
Sales	169,927	172,533	(1.5)	-Even though the numbers of vehicles being produced and sold were on a rising trend compared to the actual numbers recorded during the previous year, both operating income and operating profit dropped year-on-year because of the Great East Japan Earthquake and the flooding in Thailand.
Operating income	22,823	24,663	(7.5)
Electronic Components
Sales	25,350	29,081	(12.8)	-Confronted not only with the continued high evaluation of the yen and an extremely competitive market, the Company also was confronted with restoring its Thai production facilities that had suffered damage during the flooding in Thailand. As a result of these negative factors, both operating revenue and operating profit dropped year-on-year.
Operating income	2,689	4,416	(39.1)

 

New Company

-The Company announced that it has established a new company Wuhan Stanley Electric Co., Ltd. in Wuhan, Hubei province, China. The new company develops, produces and sells automotive lighting products, electronic devices and molds. The new plant will cover approximately 32,000 square meters. Completion of the plant is expected in January 2013. The new company, capitalized at 30 million USD, is owned 50% by Guangzhou Stanley Electric Co., Ltd., 35% by Stanley Electric (China) Investment Co., Ltd. and 15% by Guangzhou Automobile Group Component Co., Ltd. The annual sales for 2014 are estimated to be approximately 8.5 billion yen. (From a press release on November 28, 2011)

Outlook for FY ending Mar 31, 2013

（in million JPY）

	FY ending Mar 31, 2013 (Estimate)	FY ended Mar. 31, 2012 (Result)	Rate of Change (%)
Sales	268,000	243,108	10.2
Operating income	34,300	26,439	29.7
Ordinary income	37,200	28,580	30.2
Net income	22,300	13,822	61.3

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)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	5,423	4,983	3,586
Automotive products	1,674	1,634	1,092

R&D Facilities

Name of Facilities	Location
Research & Development Laboratory	Yokohama City, Kanagawa Pref., Japan
Tsukuba Research Laboratory	Tsukuba City, Ibaraki Pref., Japan
Utsunomiya Technical Center	Utsunomiya City, Tochigi Pref., Japan
Yokohama Technical Center	Yokohama City, Kanagawa Pref., Japan
Opto Technical Center	Yokohama City, Kanagawa Pref., Japan

R&D Activities

1) Optoelectronics area
-High power white LEDs
-High power red/infrared LEDs
-High speed sensitive image sensors

2) Display area
-Super-high contrast LCDs
-Optical micro-scanners
-Display drive circuits

3) Source of light and illumination area
-Automotive lamps
-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

Technological Cooperation Licensing-in

(As of Mar. 31, 2012)

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, 2012)

Partner	Content	Term
Thai Stanley electric Public Co., Ltd. (Thailand)	Technology related to automotive lamps	Apr. 1, 2012- 31 March, 2015
SL Lighting Corporation (Korea)	Technology related to automotive lamps	Apr. 1, 2009- 31 March, 2014
Kenmos Technology Co., Ltd. (Taiwan)	Technology related to area light source	Apr. 1, 2012- 31 March, 2013
Lumax Industries Ltd. (India)	Technology related to automotive lamps	Apr. 1, 2012- 31 March, 2013

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	23,358	25,895	18,826
Automotive products	17,565	15,577	15,701

 

Plans for New Production Facilities (Automotive products)

Name (Location)	Type of facility	Total amount (in million JPY)	Start	Completion
Guangzhou Stanley Electric Co., Ltd. (Guangzhou, China)	Automotive business facilities	7,387	Jan. 2008	Mar. 2013