Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Sales	28,020	27,807	0.8	- Sales increased thanks to a rise in demand in the automotive market in the first half of the year.
Operating income	(122)	174	-	- Profits decreased due to rising materials cost and the negative impact of the Great East Japan Earthquake.
Ordinary income	(28)	442	-
Current net income	(1,935)	246	-

Automotive business
-Sales of automotive products in the first half of the year increased 33.1 percent from the same term the previous year, when the company suffered from the impact of the global financial crisis. Sales in the second half, however, decreased year-on-year affected by the termination of the eco-car incentive programs and the influence of the Great East Japan Earthquake. As a result, full year sales totaled 15,725 million yen, making a limited increase of 4.4 percent year-on-year. 

Performance Forecast

(in millions of JPY)

	FY2010 Forecast	FY2009 Result	Rate of change(%)
Sales	30,000	28,020	7.1
Operating income	(100)	(122)	-
Ordinary income	0	(28)	-
Net income	(100)	(1,935)	-

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	575	482	603

R&D Structure

-The Company has a technical center in Hamamatsu City, Shizuoka Prefecture.

R&D Activities

Development agendas of the automotive interior business
-The Company is developing new, synthetic-leather materials that contribute to enhancing the quality of vehicles.
-The Company is working to improve upon and develop product technology that takes into consideration factors such as weight reduction, ease of recycling, lowered costs, environmental protection, and greater comfort for passengers.

Product Development

-The Company's proprietary Aquawish, an environmentally friendly aqueous synthetic leather, was employed as an automotive interior material for the first time.

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	1,300	1,048	1,210

-The Company made capital investments mainly to install a MCD coater at the Shinshiro Plant and to reduce costs.

New Facility (abstract)

(As of Mar. 31, 2011)

Main Products	Total Amount Invested (millions of yen)	Started	Expected to Complete in	Increased Capacity after Completion
1st Tenryu Plant
Synthetic leather (for vehicles, furniture, shoes and general merchandise)	241	Apr. 2011	Mar. 2012	No increase (initiated for rationalization purposes only)
2nd Tenryu Plant
Composites for molding and making synthetic leather (for vehicles, furniture, shoes and general merchandise)	1,079	Apr. 2011	Mar. 2012	No increase (initiated for rationalization purposes only)
Shinshiro Plant
Composites for molding, and other products (for automotive use)	232	Apr. 2011	Mar. 2012	No increase (initiated for rationalization purposes only)