Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	149,892	150,849	(0.6)	-The company’s major customers are in the automotive industry, which continued to face a very harsh market environment in Europe. On the other hand, the automotive industry worldwide generally maintained solid sales due to emerging markets expanding and the North American market recovering from an economic slump.
Operating income	5,477	6,025	(9.1)	-
Ordinary income	4,887	5,269	(7.2)	-
Net income	1,811	325	457.2	-This result is due to a decrease in extraordinary losses the Company reported for the year.
Automotive Components Division
Sales	144,122	145,689	(1.0)	-

The Company carried out the following three initiatives to improve its profit structure and increase the competitive advantages of its products.
 (1) Enhancing corporate structure:
- The Company strove to enhance its corporate structure by undertaking several initiatives such as its activities to “halve processing fees”. It also enhanced its corporate structure by increasing efficiencies in its non-sales/production (indirect) functions and raising local production and procurement levels.

(2) Strengthening its product supply-chains in emerging nations.
-The Company built a second plant at P.T. Aisan Nasmoco Industri in Indonesia, starting production of motorcycle pump modules.
-The Company set up a new production plant in India.

(3) Developing products
-The Company developed a new-style fuel pump designed for two-wheel vehicles. Its latest pump is lighter and has more energy-saving features compared to existing pumps. In addition, the Company is developing hybrid-vehicle canisters equipped with further simplified component parts.

Business Outside Japan

- The Company is mulling expansion of local overseas production capacity to improve efficiency in supply to the U.S., Canada and Mexico. The company will plan investments either in expansion of its existing facility in the U.S., or building a new plant in Mexico or other locations in a bid to win more business by enhancing supply efficiency in view of a recovery in the U.S. automobile market or an increase in production by customers in Mexico. Aisan Industry's U.S. subsidiary, Franklin Precision Industry, Inc., manufactures throttle bodies, carbon canisters and fuel pump modules for supply to its customers in North America and other regions. However, key components for fuel pump modules, among others, come from suppliers not located in the U.S., which raises the necessity of local sourcing of components as well. An executive of Aisan Industry said, "We are discussing basically in the direction of investment to boost production," expressing a desire to complete expansion of capacity by 2015 business year. (From an article in the Nikkan Jidosha Shimbun on February 27, 2012)

>>>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	7,375	7,308	6,863

*The above figures are all associated with automotive parts.

R&D Activities

The Company is further strengthening is R&D capabilities in the area of fuel efficiency and in products designed for emerging markets.

Main R&D Achievements in FY2011
-The Company once gain started mass-producing diesel-engine fuel pump modules.
-The Company began mass-producing a new-style canister for hybrid cars, which is lower in cost than its existing products.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	9,285	7,158	6,502

	Investment Targets	Main products and investment amounts for FY ended Mar. 31, 2012
Japan	-The Company invested in R&D activities to develop future products designed for next-generation vehicles such as hybrid and electric vehicles. Also, the Company invested to revamp and upgrade its facilities producing its mainstay products such as fuel pump modules, throttle bodies, injectors, and engine valves. In addition, the Company spent to expand its facilities used for conformance testing of environmentally-friendly vehicles.	3 mainstream products (fuel-pump modules, throttle bodies, and canisters): 1,323 million yen; Engine values and Injectors: 885 million yen
Asia	-The Company made a substantial financial commitment in building and improving facilities in order to increase its sales volume of fuel pump modules and throttle bodies.	3 mainstream products: 2,714 million yen Engine values and Injectors: 885 million yen
Europe		3 mainstream products: 553million yen
North America		3 mainstream products: 741million yen

Plans for New Facilities

Plant name (Location)	Type of facility or project	Planned amount of investment (in million JPY)	Project period
			From	To
Headquarters Plant (Aichi, Japan)	Facility manufacturing EGR valves	86	Oct. 2011	Nov. 2012
Anjo Plant (Aichi, Japan)	Facility manufacturing engine valves	990	Sep. 2011	Mar. 2013
	Facility manufacturing throttle bodies	484	Apr. 2011	Feb. 2013
	Facility manufacturing canister	47	Oct. 2011	Sep. 2012
Toyota Plant (Aichi, Japan)	Facility manufacturing injectors	843	Jan. 2012	Nov. 2012
	Facility manufacturing fuel pump modules	326	Jun. 2011	Mar. 2013
P.T. Aisan Nasmoco Industrial (Indonesia)	Facility manufacturing fuel pump modules	1,197	Dec. 2010	Oct. 2012