Financial Overview

(in millions of JPY)

	FY ended Nov. 30, 2012	FY ended Nov. 30, 2011	Rate of Change (%)	Factors
Overall
Sales	61,160	58,410	4.7	-
Operating Profit	2,618	3,817	(31.4)	-
Ordinary profit	2,208	3,025	(27.0)	-
Net profit	(1,537)	1,641	-	-
Automotive Components Division
Sales	40,752	38,129	6.9	1)
Operating profit	1,132	1,863	(39.2)	2)

Factors
1)
Automotive Components Division
<Japan>
- Although sales for models destined for exports decreased as Japanese OEMs suffered from the strong yen, domestic sales increased from last year thanks to the effects of the eco-car incentive programs.

<Overseas>
- Production and sales increased in Thailand, which overcame the impact of the massive flooding in 2011. They also gained in China, which recovered from the supply chain disruption caused by the effects of the Great East Japan Earthquake.

2)
Automotive Components Division
- Despite some positive factors such as increases in capacity utilization rates at plants overseas and reductions in production costs, operating profit dropped due to costs incurred for transferring production facilities and expenses associated with the Company's global expansion plans.

Contracts

Product release	Customer	Model	Products
June 2012	Mitsubishi Motors Corporation	Mirage	Keysets and climate controllers
December 2011	Honda Motor Co., Ltd.	N Box	Climate controllers
October 2011	Mazda Motor Corporation	CX-5	Automatic climate controllers, mechanical climate controllers, outer handles, inner handles, smart start units, door latches, keysets, lift gate opener switches, and integrated switches to detect neutral/back gear shifts
September 2011	Daihatsu Motor Co., Ltd.	Mira e:S	Electrical steering column locks (ESCL) and requesting switches

Acquisitions

- At the end of November 2012, U-shin Ltd. announced that it would purchase the Comfort Access Mechanism (CAM) business of Valeo in 2013. The acquisition will allow the company to deal with the majority of European and North American OEMs and expand its sales network in the global market, which includes emerging nations. At the same time, U-shin is poised to raise the ratio of sales to the overseas market to more than 70 percent as early as possible, which is a significant gain from the current level of under 30 percent. While acquiring Valeo's operations whose sales are comparable to its overall revenues, the company will reorganize and optimize its production network to develop a low-cost production structure. By enhancing its price competitiveness through these initiatives, the company aims to become one of the world's three largest suppliers in the automotive key set and door handle markets.

Outlook

<Japan>
- The Company launched production at its new plant in Kure City, Hiroshima Prefecture in December 2012. The Kure facility is positioned as the Group's mother plant based on its initiatives to consolidate its production equipment, technologies and human resources in Japan. The Company thereby intends to streamline operations in Japan, enhance technical supports to plants overseas, and expand its overall development capabilities.   

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

<ASEAN>
- In 2011, the Company started operations at its new plant in Thailand, U-SHIN (THAILAND) CO.,LTD., to increase its supply capacity.

<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.

<India>
- The Company set up a new R&D center in India to enhance its local design capability.

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

R&D Expenditure

(in millions of JPY)

	FY ended Nov. 30, 2012	FY ended Nov. 30, 2011	FY ended Nov. 30, 2010
Overall	1,831	1,728	1,624
Ratio to sales (%)	3.0	3.0	2.6
R&D Personnel	200	203	203

R&D Structure

- The Company has transferred its development operations in Hamamatsu & Tokyo to its new facility in Hiroshima Prefecture. By consolidating its development base in Japan, it aims to provide more robust, high value-added products to customers.
- Engineers at R&D facilities in Japan, China, the U.S. and India are collaborating to develop products that meet the needs of each market quickly and efficiently. 

Product Development

Door latches
- The Company has developed a compact and lightweight door latch that is about 30 percent lighter than its existing products, while offering the same levels of strength, product performances and anti-theft properties. It achieved to do so by optimizing the product design and using new materials, including plastics and high-tension steel sheets, to reduce the product thickness.

Electric steering lock systems 
-The Company developed a compact electric steering lock system by adopting the direct screw system as standard to achieve high-strength and quiet operations required by its customers. 

Mechanical climate controllers and Integrated switches
- The Company developed a compact and lightweight controllers and switches with improved operability. 

Licensing of Technology from Other Companies

(As of Nov. 30, 2012)

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 outer 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 latches for automobiles.	Jun. 30, 2006 to end of production and sales
San Long Industrial Co., Ltd.	Taiwan	Manufacturing technology and information related to inner handle covers for automobiles.	Feb. 30, 2008 to end of production and sales

Capital Expenditure

(in millions of JPY)

	FY ended Nov. 30, 2012	FY ended Nov. 30, 2011	FY ended Nov. 30, 2010
Overall	8,705	7,132	1,759
Automotive Components Div.	8,483	6,986	1,590

- Major investment activities at the Automotive Components Division included spending on dies and production machinery and expenses for acquiring buildings for a new plant in Hiroshima.

New Investment Plan (Automotive Components Division)

(As of Nov. 30, 2012)

Name of Company/Plant	Location	Equipment	Estimated amount of Investment (in million yen)	Project Period
				From	To
Hiroshima Production plant	Kure City, Hiroshima Pref.	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	828	2012.11	2013.11
Hamamatsu Production plant	Hamamatsu City, Shizuoka Pref.	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	727	2012.11	2013.11
U-SHIN (THAILAND) CO., LTD.	Rayong, Thailand	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	780	2012.11	2013.11
U-SHIN Manufacturing (Zhongshan) Co., Ltd.	Guangdong, China	Dies and assembly lines to handle changes being made to vehicle models; and machining equipment	5,091	2012.11	2013.11
U-SHIN AUTOPARTS MEXICO,S.A DE C.V.	Guanajuato, Mexico	New manufacturing equipment to produce electric and electronic components; and new plant	2,846	2012.11	2013.11