Financial Overview

(in millions of JPY)

	FY2011	FY2010	Rate of Change (%)	Factors
Overall
Sales	58,410	62,447	(6.5)	-
Operating Profit	3,817	5,807	(34.3)	-
Ordinary profit	3,025	5,637	(46.3)	-
Net profit	1,641	2,921	(43.8)	-
Automotive Components Division
Sales	38,129	44,311	(14.0)	1)
Operating profit	1,863	3,898	(52.2)	-

Factors
1)
<Japan>
- After recovering from the global recession triggered by the Lehman Brothers bankruptcy in 2008 and thereafter achieving a solid performance for a year and a half, the company suffered a drop in sales due to the impact of the great earthquake in March 2011.

<Overseas>
- Overseas sales were also affected by the great earthquake in Japan and the heavy flooding in Thailand. The global automotive industry was negatively impacted by the disruptions of the supply chains and resulting production cutback not only in Japan and Thailand, but also in Europe.

Contracts

- The Company started supplying key sets and tailgate handles for BMW vehicles. (From a press release, June 2011)
- The Company started to mass produce heater controls for the Everus manufactured by Guangqi Honda. (From a press release, April 2011)

Outlook

<Japan>
- The Company is going to establish a new plant in Hiroshima to integrate its domestic operations in the area of production, production engineering, quality assurance and product development. Positioning the new facility as the Group's mother plant, the Company will work on improving its production and development structure, while increasing efficiency.

<Americas>
- The Company will step up marketing activities, targeting General Motors, Chrysler, Volkswagen and Fiat.
- The Company is planning to start production at its new plant in Mexico in 2013, aiming to increase its supply capability. 

<China>
- The Company will step up its sales operations to win new business especially from Chinese automakers, while improving its local design capability to manufacture products that better meet the needs of the China market.
- The Company will set up an R&D center in China and increase the number of procurement staff in efforts to raise the local content ratio of its products.
－The Company will open a new plant in Zhongshan, Guangdong Province in 2013 to increase its supply capability to meet growing demand.

<ASEAN>
- The Company started operations at its new plant in Thailand to increase its supply capacity.
- U-Shin Manufacturing (Zhongshan) Co., Ltd. and U-Shin (Thailand) Co., Ltd. are enhancing their supply capabilities.

<Europe>
- The Company will step up its sales operation in Europe, aiming to increase business with BMW, Volkswagen and Audi.
- It also aims to win first business with Fiat and Renault.

<Other regions>
- The Company won a new program to supply parts for Hyundai's next vehicle model, while continuing efforts to win orders for upcoming new models.

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

R&D Expenditure

(in millions of JPY)

	FY2011	FY2010	FY2009
Overall (million yen)	1,728	1,624	1,414
Ratio to sales (%)	3.0	2.6	2.8%
Personnel	203	203	208

R&D Structure

- The Company established an R&D center in India, following its existing research bases in China, Germany and the U.S. 

Product Development

Automatic heater control units
- The Company developed a sophisticated automatic heater control unit with a liquid crystal display, which combines the functions of a clock and a seat warmer. The company also worked on standardizing software and the module system, while improving development efficiency.

Mechanical heater control units
- In response to growing demand for compact and lightweight components, the Company developed a smaller heater control unit, which is 30 percent smaller in depth compared with the company's existing products. .

Electric steering lock systems
- Following development of small, electric steering lock system designed to meet customers' requests, the Company developed a thin-type, electric steering lock system which also achieves low noise operation.

 

Keysets
- The Company developed a more compact free wheel, an antitheft mechanism. The new technology uses sidebars, offering improved shatter resistance. 

Door latches
-The Company is presenting comprehensive door opening and closing devices, which include door handles and key cylinders, while working on making them more compact and lightweight.

Licensing of Technology from Other Companies

(As of Nov. 30, 2011)

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)

	FY2011	FY2010	FY2009
Overall	7,132	1,759	1,572
Automotive Components Div.	6,986	1,590	1,333

- Major investment activities at the Automotive Components Division included spending on dies and production machineries, expenses for acquiring land for a new plant in Hiroshima, and investment in constructing new plants outside Japan.

New Investment Plan (Automotive Components Division)

(As of Nov. 30, 2011)

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	353	2011.11	2012.11
Hiroshima Production	Aki-gun, Hiroshima Pref.	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	7,002	2011.11	2012.11
Hamamatsu Production	Hamamatsu City, Shizuoka Pref.	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	204	2011.11	2012.11
Yamato Seiko Co., Ltd.	Higashihiroshima City, Hiroshima Pref.	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	161	2011.11	2012.11
U-Shin (Thailand) Co., Ltd.	Rayong, Thailand	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	523	2011.11	2012.11
U-Shin Manufacturing (Zhongshan) Co., Ltd.	Guangdong, China	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	3,741	2011.11	2012.11
U-Shin Europe Ltd.	Kisber, Hungary	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	200	2011.11	2012.11