Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	87,839	92,547	(5.1)	1)
Operating income	2,905	3,015	(3.6)	-
Ordinary income	4,426	3,943	12.2
Net income	1,416	615	130.2	2)
Automotive components
Sales	76,791	80,931	(5.1)	-
Operating income	2,858	2,931	(2.5)

Factor
1)
-Overall production volume during the first half of the year fell tremendously because of the Great East Japan Earthquake. However, there was a recovery in production volume during the second half of the year. In the end, year-on-year performance was lower.

2)
-The Company recorded an extraordinary loss for the following: 754 million yen from liquidating a subsidiary, a 723 million yen reserve fund to cover product insurance, 587 million-yen to end the retirement benefits program, 452 million yen as an extraordinary expense for conducting market research, and 192 million yen for special extra retirement payments.

Acquisition

-The Company said on June 13, 2011 that it has acquired a 100 percent stake in PIAA, its Tokyo-based subsidiary engaged in auto parts business, transforming the company to a 100 percent-owned subsidiary in a bid to strengthen the aftermarket business. Ichikoh now has its own "Velias" brand for products, including a bulb kit. On the occasion of PIAA becoming a wholly-owned subsidiary, Ichikoh intends to consolidate its own brand products with high-profile PIAA products. (From an article in the Nikkan Jidosha Shimbun on June 14, 2011)

>>>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	4,890	4,989	4,600

 

R&D Structure

Department	Functions
R&D	Development of advanced technologies
Development & Design Office	Development of technologies that enable new products and value to be created
Production Engineering	Development of products that reach commercialization

R&D Activities

Lighting equipment and signals
1) Highly functional automotive lighting equipment suited to meet car designs.
2) Research on situation-sensitive light distribution properties and evaluation systems.
3) Development of high-definition automotive signals.
4) Development of new light sources.

View-related Devices
1) Development of intelligent mirror system.
2) Development of view-related systems, utilizing functional thin membranes, electronics, etc.
3) Development of car control systems and control devices.
4) Development of vehicle perimeter sensing and security devices.

Opto-mechatronics
1) Development of display devices using new light sources such as LED.
2) Development of multiple transmission systems for motor vehicles.
3) Development of mechatronics devices utilizing membrane/precision molding technologies.

Major Achievements

- The Company will expand the sales channel for its compact color camera integrated with high-mounted stop lights. The advanced camera unit, which was released in February, is now offered as dealer-installed optional equipment on small trucks. Expecting that the technology will be required for light-duty commercial vehicles as well, the company is now in talks with mini-vehicle manufacturers to introduce the product as optional also on such vehicles. Ichikoh aims to sell 7,200 units of these cameras a year by fiscal year 2013. (From an article in the Nikkan Jidosha Shimbun on April 26, 2011)

Technology licensing-out Agreement

(As of Mar. 31, 2012)

Company Name	Country	Technology	Coverage	Contract Period
				From	To
Valeo Sylvania L.L.C.	U.S.A.	Manufacturing technologies for automotive lamps	Licensing of patents and expertise	Feb. 18, 2008	Until sales of products are ended
Foshan Ichikoh Valeo Auto Lighting Systems Co., Ltd.	China	Manufacturing technologies for automotive lamps	Licensing of patents and expertise	Mar. 24, 2006	Mar. 24, 2011 (renewal every three years)

Capital Investment

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	3,322	6,596	1,042

-The Company invested in the facilities and automation equipment at its automotive parts production and sales division in order to produce new and upgraded products.

Main Investments

(As of Mar. 31, 2012)

Plant	Location	Segment (business division)	Estimated amount of investment (in millions of JPY)
Isehara Plant	Kanagawa Pref., Japan	Manufacturing and sale of automotive parts	696
Mirror  Plant	Gunma Pref., Japan	Manufacturing and sale of automotive parts	144
Fujioka Plant	Gunma Pref., Japan	Manufacturing and sale of automotive parts	896

-Valeo Japan Co., Ltd. announced on March 13, 2012 that its new factory in Nakatsu City, Oita Prefecture will start manufacturing car air conditioners on April 16. The Nakatsu factory is Valeo's second factory in Kyushu, following its existing facility in Kanda, Fukuoka Prefecture, which has been manufacturing front-end modules since January 2010. The new plant is located within the premises of Kyushu Ichikoh Industries, a subsidiary of the company which is Valeo's alliance partner, and will initially hire 16 people. In order to supply high-quality products with short lead times to its customers, the company will introduce its "O-line" just-in-time system, which allows for flexible production operations near the facilities of automotive manufacturers. By ensuring an efficient and stable supply system, the company will further enhance support to its customers. (From an article in the Nikkan Jidosha Shimbun on March 14, 2012)

-The Company said that Ichikoh Industries (Thailand) Co., Ltd., its production subsidiary in Thailand, will establish a new plant with a technical center attached. By July 2012, the Thai unit will construct a facility with a total floor area of 22,000 square meters on 60,000 square meters of land it is going to purchase at the Amata City Industrial Estate in Rayong. It will build production lines to manufacture automotive headlights, rear combination lamps and mirrors for supply to the Thai facilities of Japanese and foreign automakers. Mass production is scheduled to begin in March 2013. (From an article in the Nikkan Jidosha Shimbun on February 16, 2012)

Planned Capital Investments

(As of Mar. 31, 2012)

Plant	Equipment to be installed	Estimated amount of investment (in millions of JPY)	Project Period		Percentage of capacity increase (%)
			From	To
Isehara Plant (Kanagawa Pref., Japan)	Facilities for manufacturing automotive parts	1,012	Apr. 2012	Mar. 2013	minor
Fujioka Plant (Gunma Pref., Japan)	Facilities for manufacturing automotive parts	789	Apr. 2012	Mar. 2013	minor