Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Overall
Sales	54,917	56,343	(2.5)	1)
Operating income	4,355	5,417	(19.6)	-
Ordinary income	5,221	5,648	(7.6)	-
Current net income	2,440	3,386	(27.9)	-

Factors
1)
<Japan>
- Adjustments to production volumes were needed because of the impact caused by the Great East Japan Earthquake and the flooding in Thailand. As a result, sales of automotive rearview mirrors were lower year-on-year. Operating revenue was 38,781millioin yen, a year-on-year decrease of 1,660 million yen, or a 4.1% drop. Even though the Company worked to rationalize its operations, operating profit was 3,117 yen, a drop in profit by 457 million yen, or a 12.8% year-on-year decrease.

<Asia>
-Performance was impacted due to the flooding in Thailand that forced OEMs to readjust their production levels. The Company's operations in China posted strong sales. For the year, operating revenue in the region was 11,917million yen, a decrease of 79 million yen or a slight drop by 0.7% year-on-year. Operating profit was 1,452 million yen. This was lower by 22.2%, or 414 million yen, compared to that posted for the previous fiscal year.
 
<North America>
- Operating revenue in North America was 4,218 million yen, which was a year-on-year increase of 314 million yen, or a rise by 8.1%. Operating revenue was impacted by tremendous rises in procurement costs as a result of the continued high evaluation of the yen. As a result, the North American Region posted an operating loss of 148 million yen, which was a drop by 257 million yen year-on-year, since the region posted an operating profit of 108 million yen for the previous fiscal year.

Joint-ventures

- In joint venture with Olsa S.p.A., an Italian parts suppler based in Turin, the company set up a production and sales company of lamp products in Jiaxing City, Zhejiang Province, China. The new joint venture, which will be the company's third production facility in China, will manufacture door mirrors integrated with turn-signal lamps and rear combination lamps for supply to the BMW car assembly plant in China. With the joint venture as a foothold, the company aims to expand sales to European automakers. The joint venture named "Jiaxing OLSA Murakami Corporation" was established last February with capital of $2.1 million, which is shared 55 percent by Olsa and 45 percent by the company. The plant will be built on a 2,000 square meter site on the premises of the company's wholly-owned subsidiary Jiaxing Murakami Kaimeido Corporation. It is scheduled to start production in July. The new company aims to achieve sales of 50,000 yuan in 2011 and 17.72 million yuan in 2013 with 20 employees. (From an article in the Nikkan Jidosha Shimbun on April 7, 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	382	342	351

R&D Structure

-Each department's technical group works in cooperation with the R&D division, which is in charge of development for the entire group.
-The total number of R&D staff is 27, which includes the R&D division at the headquarters and technical groups at each department.

R&D Activities

1.Vehicle information conveyance system
-Development of all-weather safety enhancing mirror system 
-Development of blind spot eliminating system
-Development of environmentally-conscious mirror system (light weight and energy saving) 

2.Automobile parts 
-Development of value-added door mirrors 
-Development of mirror products of enhanced convenience 
-Development of safety enhancing mirror products
-Development of environmentally conscious mirror products 

3. High function fine glass
-Development of various types of optical filters and mirrors
-Development of light-adjusting filters (mirrors)

Licensing of Technology to Other Companies

(As of Mar. 31, 2012)

Partner	Contract	Contract Period
Ken Sean Factory Co., Ltd. (Taiwan)	To supply design and manufacturing technology on Automotive Rear-view Mirrors to automakers in Taiwan (except Ford Lio Ho Motor) including Japanese automakers	Feb. 1, 2012 - Jan. 31, 2013*
Ampas Industries Co., Ltd. (Thailand)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	Dec. 29, 2011 - Dec. 28, 2012*
Delloyd Industries (M) Sdn. Bhd. (Malaysia)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	Dec. 5, 2011 - Dec. 4, 2012*
Fu-Hwa Glass Co., Ltd. (Taiwan)	To supply design and manufacturing technology on Automotive Rear-view Mirrors to automakers in Taiwan (except Kuozui Motors) including Japanese automakers	Apr. 1, 2011 - Mar. 31 2012*
Tata Ficosa Automotive Systems, Ltd. (India)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	From Sep. 1, 2004 to the completion of delivery of the products subject to the contract
Ficosa Do Brasil , Ltda. (Brazil)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	From Sep. 1, 2004 to the completion of delivery of the products subject to the contract
Ficosa International S.A. (Spain)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	Jun. 30, 2011 - Jun. 29, 2012*
Murakami Ampas (Thailand) Co., Ltd. (Thailand)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	Jul. 1, 2011 - Jun. 30, 2012*
Murakami Manufacturing U.S.A. Inc. (USA)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	Jan. 1, 2012 - Dec. 31, 2012*
Murakami Manufacturing (Thailand) Co., Ltd. (Thailand)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	Jun. 30, 2011 - Jun. 29, 2012*
Jiazing Murakami Ishizaki Corporation (China)	To supply design and manufacturing technology on Automotive Rear-view Mirrors	Aug. 1, 2011 - Jul. 31, 2012*
Metagal Argentina S.A.	To supply design and manufacturing technology on Automotive Rear-view Mirrors	Jan. 27, 2011 - Jan. 26, 2014*

* Contracts are renewed every year if both parties agree.

Investment Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Japan including spending for the whole operations	4,846	1,951	-
Asia	649	1,985	-
North America	24	28	-
Total	5,520	3,965	1,595

Capital Investments in FY ended Mar. 31, 2012
Mirror system business
- The Company made capital investments at the production facilities in Japan producing rearview mirror systems as part of its efforts to rebuild mainly its production and logistics frameworks. It constructed the Kikuchi Plant and improved and rationalized its production operations. The Company also invested in facilities to improve product quality and to prepare for producing new products.
- Capital investments were made at overseas subsidiaries in equipment primarily for enlarging production volume and enhancing productivity.

Planned Capital Investments

(As of Mar. 31, 2012)

Name (Location)	Type of facility	Planned total investment (in million JPY)	Start	Planned completion
Fujieda Plant (Shizuoka Pref., Japan)	Production facilities for Automotive Rear-view Mirrors	144	Mar. 2012	Mar. 2013
	Production facilities for fine glass	87	May 2012	Mar. 2013
	Other	185	Oct. 2011	Mar. 2013
Yaizu Plant (Shizuoka Pref., Japan)	Production dies for Automotive Rear-view Mirrors	320	Jan. 2012	Mar. 2013
	Production facilities for Rear-view Mirrors	326	Oct. 2013	Jan. 2013
Ohigawa Plant (Shizuoka Pref., Japan)	Production facilities for Automotive Rear-view Mirrors	228	Apr. 2012	Mar. 2013
	Other	9	Aug. 2012	Sep. 2012

(Note) Hardly any direct investments were made to actually increase capacity in terms of rebuilding its production and logistics frameworks.