Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	50,964	78,842	(35.4)	-
Operating Profit	1,166	4,766	(75.5)	-
Ordinary profit	564	3,909	(85.6)	-
Net profit	(927)	1,331	-	-
Automotive Components Division
Sales	37,163	56,863	(34.6)	1)
Operating profit	458	2,457	(81.4)	-

Factors
1)
<Japan>
-The Company achieved its sales target in terms of business with Mazda and Honda, with sales being boosted by the eco-car tax incentive program. Sales to Suzuki, however, failed to meet the set sales target due to sluggish sales of mini vehicle.

<Outside Japan>
-Sales decreased 82 percent year-on-year in the U.S. due to a large drop in sales, following the expiration of the contract the company had with CAMI; as well as to a significant fall in production volume by automakers in North America.
-Sales in Hungary tumbled 42 percent from the previous year's result.
-Sales in Thailand declined 29 percent year-on-year.
-Sales were favorable in China, where demand for vehicles recovered. Sales at U-Shin Manufacturing (Zhongshan) Co., Ltd. decreased year-on-year, but only by 7 percent, as strong local demand partly offset a decrease in exports to Japan.

Contracts

Key sets
-VW （North America）
-BMW
-Audi

Air conditioning controllers
-Hino（small trucks）

Tool box latches
-MAN

Lift gate handles
-BMW

Electric steering column locks
-Mazda
-Honda
-Suzuki
-Mitsubishi Motors

Steering lock bodies
-Ford (Europe and North America)

-The Company's joint venture in India, Jay Ushin Ltd., has been awarded the contract to supply heater control panels and key sets to Maruti Udyog for a new 1-liter car "Suzuki A-Star" whose production has recently started, and its production capacity at the Manesar plant in the suburbs of New Delhi will be boosted as early as 2009. (From an article in the Nikkan Jidosha Shimbun on Dec. 11, 2008)

Recent Developments in Japan

-The Company is reducing the number of its domestic suppliers by half within the next three years in anticipation of a decreasing production of vehicles and an intensifying request from carmakers for cost reductions. By squeezing supply sources and consolidating purchase volume per supplier, the Company aims to reduce costs of existing products by 20 percent by the end of the tern ending November 2011. By switching dual sourcing to single sourcing to take advantage of economies of scale, the Company will urge traditional suppliers to merge, consolidate operations or promote systemization and unitizations in order to increase their competitiveness. There are 450 tier-two suppliers in Japan alone, which supply components or raw materials to the Company. Suppliers engaged in automobile and industrial machinery operations, excluding operations related to housing operations, will be subject to review. These suppliers will be trimmed into 200 to 250 within three years through reorganization of the supply network. (From an article in the Nikkan Jidosha Shimbun on Dec. 12, 2008)

Recent Developments Outside Japan

<USA>
-In February 2009, the Company spun off its Detroit office and established U-Shin America Inc. Given the significant scale of business in North America, the Company decided it was necessary to further expand its sales in the region. The new sales subsidiary also started to function as a support office for design and development activities.

<Germany>
-In March 2009, U-Shin Deutschland GmbH moved to Munich, Germany. The new sales office supports European automakers, including BMW and Volkswagen.

<Thailand>
-The Company will postpone its project to establish its second production facility in Thailand.
>>>See Investment for more details

<China>
-The Company has started to discuss its plan to construct a new factory in China by FY 2011 and integrate the current production operations there. It is going to start preparatory work including site selection and South China region, where many Japanese manufacturers have their plants, is a major candidate. Since the Company's plant in China almost operated at full capacity just before the global recession and has shown remarkable recovery from the recession, it is expected to resume full operations in the near future. The Company's plan seems to include renovation of production equipment and increased operation ratio in order to consolidate its operations in China into the large-scale new factory. (From an article in the Nikkan Jidosha Shimbun on Nov. 16, 2009)

Outlook

<USA>
-The Company is projecting that the extremely poor economic situation will continue until the beginning of 2011, when the company will start production of keysets for Volkswagen of the U.S.
-The Company will step up sales activities targeting Japanese, U.S., and European automakers operating in North America.

<Hungary>
-Building on the new business it won from BMW, Volkswagen, and Audi, the Company will work on winning more programs from European automakers.

<China>
-Projecting a further increase in demand in China, the Company is planning to establish a second plant in the country in order to raise its production capacity.
-The Company established China Development Center in Zhongshan in order to make it easier to develop and design products using materials and parts procured in China.
-The Company is looking to enhance the function of its Chinese operations so that the development and design of products destined for the Chinese market can be left up entirely to the local facilities.

<Thailand>
-In line with the launch of operations at Suzuki Motor's new vehicle assembly plant in Thailand, the Company will proceed with its plan to build its second production facility in the country. In addition to expanding the Company's local production capacity, the new facility with a stamping line will enable the Company to manufacture door latches in Thailand. Switching production of some products now being made in Japan to its Thai Plant will accelerate the Company's initiative to reduce production costs.

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall (million yen)	1,414	1,591	1,481
Ratio to sales (%)	2.8%	2.0	2.0
Personnel	208	165	134

New Product Development

Electric steering lock systems
-The company developed the world's smallest electric steering lock system, which is based on its initiatives to make its products more compact and lighter. The new technology, which combines electronic technology with the company's proprietary steering lock systems, offers high levels of safety and security.

Heater control units
-The Company is winning increased business, as demand for mechanical heater control units is increasing in line with the auto industry's shifting to smaller vehicles. The Company is also making further efforts to achieve technological improvements such as enhancing the design of wire cables and control panels.

Door latches
-The Company is working on developing products that not only enable closures to open and shut more quietly but also make them more lightweight and cost efficient.

Licensing of Technology from Other Companies

(As of Nov. 30, 2009)

To	Country	Contents	Period of Contract
Elitech Technology Co., Ltd.	Taiwan	Consent to execute industrial property rights and know-how related to automotive key sets.	June 13, 2003 to end of production and sales
Magna Donnelly Corporation	USA	Manufacturing technology and information related to exterior handles for automobiles.	Feb. 1, 2002 to end of production and sales
San Long Industrial Co., Ltd.	Taiwan	Manufacturing technology and information related to outer handles for automobiles.	Oct. 31, 2003 to end of production and sales
San Long Industrial Co., Ltd.	Taiwan	Manufacturing technology and information related to outer handles and inner handles for automobiles.	Feb.1, 2005 to end of production and sales
Xinchang Machinery Co., Ltd.	Taiwan	Manufacturing technology and information related to latch for automobiles.	Jun. 30, 2006 to end of production and sales

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,572	3,065	5,402
Automotive Components Div.	1,333	2,861	4,925

-The Automotive Components Division focused its investment activities on installing new production equipment including dies and machinery.

Investments Outside Japan

<Thailand>
-The Company will postpone its project to establish its second production facility in Thailand. Construction of the new plant was scheduled to begin in late 2009. As rapidly slowing vehicle demand in Japan, the U.S., and Europe has started to spread into the Asian markets, which was showing steady performance, Japanese carmakers are now considering freezing their expansion plans in Thailand. The Company, which initially planned to invest 1.8 billion yen in the construction project in fiscal year FY2009 ending in November 2009, will put this on hold until the next fiscal year or later, thus cutting down its overall investment in FY2009 to around 3 billion yen. (From an article in the Nikkan Jidosha Shimbun on Dec. 24, 2009)

New Investment Plan (Automotive Components Division)

(As of Nov. 30, 2009)

Name of Company/Plant	Location	Equipment	Estimated amount of Investment (in million yen)	Project Period
				From	To
Technical Center	Aki-gun, Hiroshima Pref.	Testing equipment for R&D divisions	106	Nov. 2009	Nov. 2010
Hiroshima Production	Aki-gun, Hiroshima Pref.	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	765	Nov. 2009	Apr. 2011
Hamamatsu Production	Hamamatsu City, Shizuoka Pref.	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	690	Nov. 2009	May 2011
Yamato Seiko Co., Ltd.	Kure City, Hiroshima Pref.	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	435	Nov. 2009	Nov. 2010
U-Shin (Thailand) Co., Ltd.	Rayong, Thailand	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	111	Nov. 2009	June 2010
U-Shin Manufacturing (Zhongshan) Co., Ltd.	Guangdong, China	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	114	Nov. 2009	July 2010
U-Shin Europe Ltd.	Kisber, Hungary	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	261	Nov. 2009	July 2011
Total	-	-	2,789	-	-