Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Overall
Sales	128,670	94,861	35.6	1)
Operating profit	12,078	2,759	337.8	-
Ordinary profit	12,407	2,372	423.1	-
Net profit	7,522	1,171	542.4	-

Factors
1)
Control cables
-Sales of control cables decreased in both North America and China.

Window regulators
-Sales of window regulators to Korean and North American automakers increased.

<Japan>
-Sales increased 29.0 percent year-on-year to 61,645 million yen, thanks to a significant rise in vehicle production in Japan.

<North America>
-Sales increased 38.4 percent year-on-year to 41,280 million yen, thanks to significant growth in vehicle production in the U.S.

<Asia>
-Sales rose 48.4 percent year-on-year to 41,902 million yen, supported by large growth in China, India and Indonesia.

<Others>
-Sales in “other regions” climbed 14.2 percent year-on-year to 3,953 million yen, as vehicle production started to recover in the U.K. and other European countries. The division thereby returned to profitability.

>>>Financial Forecast for the Next Fiscal Year(Sales, Operating Income etc.)

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	696	701	1,035

R&D Activities

-The Company developed a new pulley cable, which is capable of accurately transmitting rotational motion and angle from the input side to the output side. This pulley cable is used in operating systems of car air conditioning equipment.

-For the purpose of developing safer and more user friendly door opening and closing systems for automotive slide doors and back doors, the company is working on advanced driving systems and control mechanisms to support these products.

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	3,066	3,962	7,990

-The spending was centered on introducing and renewing production machinery and tools at each plant.
-Major investment projects during the business year ended in October 2010 included expanding facilities at both Daedong Hi-Lex Inc. in Korea and Changchun Hi-Lex Auto Cable System Co. Ltd. in China.

Investments by Segment

(in millions of JPY)

	FY2010	FY2009	FY2008
Control Cable Division
Japan	287	285	779
North America	173	157	323
Asia	458	964	757
Europe	N.A.	N.A.	197
Window Regulator Division
North America	190	273	1,250
Asia *	587	711	864

*Investment was focused on China and Korea

Capital Investment Plans

(As of Oct. 31, 2010)

Company name	Business segment	Type of project	Planned total investment (in million yen)	Project period		Increased capacity upon completion
				From	To
PT. Hi-Lex Indonesia Cikarang Plant (Jakarta, Indonesia)	Control cables, window regulators, etc.	New plant and new facility	540	2010.08	2014.12	30% increase in production capacity