Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of change (%)	Factors
Overall
Sales	78,786	83,828	(6.0)	-
Operating income	2,810	6,414	(56.2)	-
Ordinary income	2,692	5,880	(54.2)	-
Current net income	1,471	3,685	(60.1)	-
Automotive components related business
Sales	74,339	79,376	(6.3)	-Results were lower year-on-year due to the tremendous drop in production volumes at the Company's major customers, automotive OEMs, because of the Great East Japan Earthquake and the flooding in Thailand.
Operating income	2,827	6,246	(54.7)	-

Highlights

<By customer>

(in millions of JPY)

	FY ended Mar. 31, 2012		FY ended Mar. 31, 2011		FY ended Mar. 31, 2010
	Sales	Breakdown by customer	Sales	Breakdown by customer	Sales	Breakdown by customer
Honda	32,739	44.0%	37,048	46.7%	34,195	48.8%
Nissan	15,411	20.7%	15,658	19.7%	13,417	19.2%
Mitsubishi motor	12,077	16.3%	11,955	15.1%	8,787	12.6%
Subaru	3,305	4.4%	2,640	3.3%	3,174	4.5%
Mazda	2,236	3.0%	3,082	3.9%	2,947	4.2%
Daihatsu	1,199	1.6%	1,187	1.5%	1,030	1.5%
Isuzu	985	1.3%	1,236	1.6%	900	1.3%
Others	6,384	8.6%	6,565	8.2%	5,540	7.9%

-Less program business was awarded to the Company by the Honda Group because of the impact on operations caused by Great East Japan Earthquake and the flooding in Thailand.
-The Company's product-content ratio on Subaru (Fuji Heavy Industries) vehicles grew in Japan. 

 

<By product>

(in millions of JPY)

	FY ended Mar. 31, 2012		FY ended Mar. 31, 2011		FY ended Mar. 31, 2010
	Sales	Breakdown by product	Sales	Breakdown by product	Sales	Breakdown by product
Seat adjusters	63,200	85.0%	67,636	85.2%	59,910	85.6%
Window regulators	98	0.1%	135	0.2%	188	0.3%
Lamps	5,186	7.0%	5,456	6.9%	4,229	6.0%
Relays	2,077	2.8%	2,800	3.5%	2,621	3.7%
Horns	1,048	1.4%	1,244	1.6%	1,048	1.5%
Others	2,726	3.7%	2,103	2.6%	1,995	2.9%

-The decrease in program business for seat-adjusters had a negative impact, causing an overall reduction in product volume throughout the Company.

Mid-term Business Plans

-The Company is aiming to achieve 100 billion yen in operating revenue on a consolidated basis between March 2013 and March 2015, as the first phase of its management plan.
- The Company is going to increase local procurement at its plants overseas to ward off an adverse effect of the strong yen on its profitability by FY2014. Its seat adjuster plants in North America and Asia use parts and materials imported from Japan, which currently make up 50 percent of the total procurement volume. The large proportion is making its profit level extremely susceptible to currency fluctuations. In order to pull out of such unstable profit structure, the company is going to accelerate its move to switch to local sourcing on the occasion of model changeovers, aiming to bring the local content ratio of its products up to 100 percent eventually. The project will be included in the company's next mid-term business plan covering from FY2012 through FY2014. The cost reduction initiative will be introduced to all plants producing seat adjusters, the mainstay of the company's product line. (From an article in the Nikkan Jidosha Shimbun on October 19, 2011)
- The Company is planning to revise its management plan between March 2016 and March 2018, as the second phase of its management plan.
- The Company is aiming to achieve 180 billion yen in operating revenue, and a comfortable level of profit as well, on a consolidated basis between March 2019 and March 2021, as the third phase of its management plan.

>>>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	149	122	118
Ratio of R&D expenses to sales (%)	0.19	0.14	0.16

R&D Activities

Automotive components related business
<Seat adjusters>
 -The Company developed seat adjusters that are extremely strong, capable of absorbing strong impacts, and offers functions to sound an alarm before a collision occurs to protect occupants.
-The Company developed smaller and lighter products by reducing the number of parts, using new materials, and starting a new production process, all of which work to achieve greater fuel efficiency.
- The Company developed lift-up seat devices for welfare vehicles offering improved usability in the growing aging society.
-The Company shortened product development lead time by using CAE analysis technology. Research and development was aimed at improving functionality and improving cost efficiency of seat slide adjusters, seat reclining adjusters, and seat height adjusters.
-The Company has developed power seat adjusters with high performance in terms of lower noise and vibration. It is working on integrating these products with anti-trap electric control units (ECUs) and other ECU systems to enhance control.

<Window regulators>
-The Company is conducting R&D activities on solution-based, smaller and lighter window regulators.

<Electronic units>
-In addition to developing and launching integrated control units, which enable simultaneous control of various devices, several equipment, the Company commercialized memory seat ECUs and ECUs for seatbelt pretensioners. It has also developed controlling units for adjusting the positions of seats, mechatronics products that integrate structural and electronics technology.
- The Company is also focusing on developing electronic components for electric and hybrid vehicles.

<Lamps>
-The Company has been developing various new lamps such as rear combination lamps and room lamps, etc. using LED elements.
-It is also working on developing modular overhead consoles, which integrates control units, lamps, and lock mechanisms.

<Horns>
-The Company continues its efforts to develop and market high-quality but small and low-cost horns.

<Others>
-The Company developed new products based on technology in the areas of mechanisms and electrical operations. Specifically, the Company developed actuators, which control the opening and closing of magnetic valves and air conditioning ducts used in ventilation systems. These servos are more compact and lighter in weight. In addition, it conducted research and development activities to modularize clusters of magnetic valves; and developed and commercialized electrically adjustable windscreens and windshields for large motorcycles.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	6,486	4,382	1,844
Automotive components	6,402	3,863	1,752

Capital investments in FY ended Mar. 31, 2012
-The Company invested mainly in facilities that produce round reclining adjusters and seat adjusters.

New Investment Projects (Automotive components related business)

(As of Mar. 31, 2012)

Company name (Location)	Facilities	Planned amount of investment (in million JPY)	Project period
			From	To
Imasen Electric Industrial Co., Ltd. Nagoya plant (Inuyama, Aichi Pref., Japan)	Production equipment	923	Feb. 2012	Mar. 2013
Imasen Electric Industrial Co., Ltd. Gifu plant (Kamo, Gifu Pref., Japan)	Production equipment	1,202	Apr. 2012	Mar. 2013
Imasen Electric Industrial Co., Ltd. Yaotsu plant (Kamo, Gifu Pref., Japan)	Production equipment	473	Apr. 2012	Mar. 2013
Imasen Electric Industrial Co., Ltd. Okayama plant (Kurashiki, Okayama Pref., Japan)	Production equipment	1,027	Apr. 2012	Mar. 2013
Imasen Electric Industrial Co., Ltd. Kani plant (Kani-shi, Gifu Pref., Japan)	Production equipment	38	Apr. 2012	Mar. 2013
Imasen Electric Industrial Co., Ltd. Harusato plant (Kani-shi, Gifu Pref., Japan)	Production equipment	122	Apr. 2012	Mar. 2013
Imasen Electric Industrial Co., Ltd. Hiroshima plant (Higashi Hiroshima City, Hiroshima Pref., Japan)	Production equipment	302	Apr. 2012	Mar. 2013
Guangzhou Imasen Electric Industrial Co.,Ltd. (Guangdong, China)	Production equipment	800	Jan. 2012	Dec. 2012
Wuhan Imasen Electric Industrial Co., Ltd. (Hubei, China)	Buildings and Production equipment	600	Jan. 2012	Dec. 2012
Imasen Bucyrus Technology Inc. Ohaio Plant (Ohio, USA)	Production equipment	700	Jan. 2012	Dec. 2012
Imasen Bucyrus Technology Inc. Tennessee Plant (Tennessee, USA)	Buildings and Production equipment	800	Jan. 2012	Dec. 2012
Imasen Manufacturing India Pvt. Ltd. (Rajasthan, India)	Production equipment	60	Jan. 2012	Dec. 2012
Imasen Manufacturing (Thailand) Co., Ltd. (Ayutthaya, Thailand)	Buildings and Production equipment	400	Jan. 2012	Dec. 2012
Imasen Philippines Mfg. Corp. (Laguna, Philippines)	Production equipment	50	Jan. 2012	Dec. 2012