Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	38,873	39,856	(2.5)	1)
Operating income	(659)	751	-	-
Ordinary income	(842)	792	-	-
Current net income	(1,746)	(2,970)	-	-
Automotive Safety Systems Company
Sales	28,942	30,092	(3.8)	2)
Operating income	(299)	439	-	-

Factors
1)
-The Company focused particularly in increasing sales of seatbelts, airbags, and labor-saving logistics products. The Company's main area of business, automotive safety devices, was hit extremely hard by the Great East Japan Earthquake, which caused a decrease in automotive production. It was also badly impacted by the flooding in Thailand, which caused extreme production delays at its Thai subsidiary.

2)
-The Company's production of seatbelts, airbags, and automotive interior products was negatively affected by the decrease in automotive production at OEMs because of the East Japan Earthquake in the first half of the year. That was followed by the flooding in Thailand during the second half of the year, which also impacted the Company's performance, in spite of a recovery in production that occurred. As a result, operating revenue for the entire year remained stagnant.

>>>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	1,041	947	1,043
Automotive Safety Systems Company	647	609	-

R&D Activities

Seatbelts
-In the area of its current line of core devices and components, the Company continuously works to develop and commercialize new devices offering greater levels of performance. These devices are built to comply with local regulations and assessments in each country, and feature new designs and newly developed materials that make them lighter in weight.

Airbags
-To make its current line of airbag modules even smaller and lighter, the Company continuously works to develop and commercialize new modules that offer greater levels of performance while still meeting the requirements of local regulations and assessments in each country. It also develops production methods that enhance its products in terms of new designs and materials.

Interior products
-Under the aim of expanding its market share and winning more customers, the Company continuously develops and commercializes its interior products such as sunshades, tonneau covers, and nets, working to ensure that they meet both market and customer needs.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	1,444	1,773	1,386
Industrial fabric product business	998	1,287	-

-In order to respond to drastic technological changes and rapid fluctuations in product competition, the Company made a capital investment of 1,444 million, investing mainly in its auto safety systems business.
-The Company invested 998 million yen in facilities and equipment of its auto safety systems business (mainly in the Osaka Plant) in order to rationalize, increase and enhance production of mostly automotive interior products and to upgrade its R&D facilities.

Investments Outside Japan

<Mexico>
-The Company announced on Nov. 4 its plan to establish a subsidiary in Guanajuato, Mexico to manufacture and sell automotive seatbelts and airbags. It aims to boost orders from automakers in North, Central and South American markets and achieve approx. two billion yen in sales in 2015. This will be the Company's fourth manufacturing operation overseas, following Thailand, China and India. Tentatively named as Ashimori Mexicana S.A. de C.V., it will be Ashimori Industry's 100% subsidiary capitalized at 100 million Mexican pesos (approx. 600 million yen). It is scheduled to be established in January 2012 and to start operations in September 2013 for manufacture and sales of automotive seatbelts, airbags and interior parts. Approx. 5,000 m2 building will be constructed at the site of approx. 40,000 m2. In expectation of expanding automobile production and growing demand for automotive safety parts in North, Central and South Americas, it targets at sales of approx. 200 million yen in FY 2013, one billion yen in FY 2014 and approx. two billion yen in FY 2015. It will hire about 50 employees in FY 2013, which will be increased to about 100 in FY 2014 and to 150 in FY 2015. (From an article in the Nikkan Jidosha Shimbun on November 7, 2011)

Planned Capital Investments

(As of Mar. 31, 2012)

Name of Company/Plant (Location)	Purpose	Planned investment (in millions JPY)	Starting Month	Completing Month	Capacity increase on completion
Osaka Plant (Settsu City, Osaka, Japan)	To rationalize production facilities for automotive safety systems, high quality products and paltem	2,211	Apr. 2011	Mar. 2013	Practically none as this is to improve quality
Sasayama Plant (Sasayama, Hyogo Pref.)	To rationalize production facilities for automotive safety systems, high quality products and paltem	40	Apr. 2011	Mar. 2013	Practically none as this is to improve quality
Ashimori Industria de Mexico, S.A. de C.V. (Guanajuato, Mexico)	To install new facilities for the Auto Safety Systems Division	672	Mar. 2012	Sept. 2013	Totally new facility