Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	37,489	43,375	(13.6)	-
Operating income	556	979	(43.2)	-
Operating income	642	1,022	(37.2)	-
Current net income	(2,622)	(1,109)	-	-
Industrial fabric product business
Sales	31,744	37,448	(15.2)	-As there were bright signs in the automotive market, the Automotive Safety System Division actively promoted sales of seatbelts, winning program business for new vehicle models. However, a drastic decline in sales of airbags and other automotive parts (interior parts, etc.), especially in the first half of the year, led to a decrease in sales as a whole.
Operating income	994	1,535	(35.2)	-

Recent Developments Outside Japan

<India>
-The Company announced that it plans to start production in India. It has established a local subsidiary, which will build a plant to manufacture automotive safety systems including seat belts and airbags. The Company aims to win continual orders from Japanese automakers in India. The new plant is scheduled to begin operations in Dec. 2011 in an aim to achieve approx. 2.4 billion yen sales in 2013. Ashimori India Private Ltd., established in Rajasthan, India on Oct. 29, is the Company's 100% subsidiary with a capital of approx. 500 million yen. The new plant will be located at the site of approx. 20,000 m2. The building area will be approx. 5,000 m2. (From an article in the Nikkan Jidosha Shimbun on Nov. 7, 2009)

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

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,043	1,290	1,086
Industrial fabric product business	855	1,065	861

R&D Activities

Seatbelts
-In order to meet the needs of the auto industry for higher fuel economy and improved, environmentally friendly products, the Company is trying to develop lightweight solutions to its existing products such as seatbelt retractors with pretensioners. The Company is also developing and selling mainstay products that are designed to be eco-friendly.

Airbag
-The Company is developing lighter, higher performance airbags designed to withstand frontal and lateral crashes and comply with regulations and evaluations existing in North America and Europe. The Company is also developing and selling modularized products.

Interior products
-In order to meet both customer and market needs, the Company is developing and selling several types of sunshades (with higher added-value); and lighter interior parts.

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,386	2,177	1,885
Industrial fabric product business	1,084	1,864	1,592

Industrial fabric product business
-The investment made for industrial fabric products was mainly spent on the Osaka plant on revamping manufacturing of automotive related products, increasing production facilities and development related facilities.

Planned Capital Investments

(As of Mar. 31, 2010)

Name of Company/Plant (Location)	Purpose	Planned investment (in million yen)	Starting Month	Completing Month	Capacity increase on completion
Osaka Plant (Settsu City, Osaka, Japan)	To rationalize production facilities for fire extinguishing fabric, paltem, industrial fabric and automotive safety equipment	3,400	Apr. 2009	Mar. 2011	Practically none as this is to improve quality
Sasayama Plant (Sasayama, Hyogo Pref.)	To rationalize production facilities for fire extinguisher fabric, paltem, industrial fabric and automotive safety equipment	39	Apr. 2009	Mar. 2011	Practically none as this is to improve quality
Ashimori India Private Ltd. (Rajasthan, India)	To make new facilities to produce automotive safety systems	763	Mar. 2010	Feb. 2011	New