Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	275,666	309,283	(10.9)	-
Operating profit	2,259	6,050	(62.7)	-
Ordinary profit	2,035	5,619	(63.8)	-
Net income	(4,231)	391	-	-
Automotive components
Sales	135,090	178,877	(24.5)	1)
Automobile assembly
Sales	140,405	130,167	7.9	2)

Factors
1)
Automotive components
<Japan>
-Sales in Japan dropped by 30.5 percent year-on-year to 60,957 million yen due to a significant decrease in overall sales.

<North America>
-Sales in North America decreased 34.7 percent year-on-year to 29,208 million yen because of a significant fall in business at its Group companies, namely AY Mfg., Ltd.; US Yachiyo Inc.; Yachiyo Mfg. of Alabama LLC (in the U.S.A.), and Yachiyo of Ontario Mfg., Inc. (in Canada. Sales were negatively affected also by currency translation.

<Asia>
-The company gained additional business at both Yachiyo Zhongshan Manufacturing Co., Ltd. (Zhongshan, China) and Goshi-Thanglong Auto-Parts Co., Ltd. (Vietnam); and also increased its revenue at Goshi India Auto Parts Private Limited (India), which started operating in December 2008. Its overall sales in Asia, however, decreased 3.3 percent year-on-year to 44,925 million yen due to a significant decline in business at Siam Yachiyo Co., Ltd. (Thailand) and losses from currency translation.

2)
Automobile assembly
-Although the sales volume of complete vehicles decreased, revenue at the automobile assembly division increased 7.9 percent year-on-year to 140,405 million yen. The reason for the increase was that sales of engines and transmission systems were added to the division's revenue after the company's new engine assembly plant started operations in May 2009.

Contracts

-In December 2009, the Yokkaichi Plant began assembling the Honda Acty truck after the model was fully remodeled for the first time in 10 years.

-In January 2010, Yachiyo Wuhan Mfg. Co., Ltd. started manufacturing sunroofs for the Honda CR-V assembled at Dongfeng Honda Automobile. The Wuhan facility became Yachiyo's second sunroof plant in China, following Yachiyo Zhongshan Manufacturing Co., Ltd.

-In January 2010, Yachiyo Mfg. of Alabama LLC started producing plastic fuel tanks for installation in the Honda Odyssey built at Honda's Alabama factory. The Alabama facility became Yachiyo's second supply hub for plastic fuel tanks in North America, following US Yachiyo Inc. in Ohio, U.S.A.

Joint Ventures

-The Company announced its plan to establish a plastic fuel tank production subsidiary in Sao Paulo, Brazil, which will mark the company's first entry into South America. The new facility will be set up this month, with a start-up capital of approx. 2 billion yen, of which 75 percent will be provided by the Company and the remaining 25 percent by Honda South America Ltda. It will start commercial operations in Oct. 2011 to supply plastic fuel tanks for the upcoming models of the Civic and the City flex fuel vehicles to be assembled at Honda's local facility. (From an article in the Nikkan Jidosha Shimbun on Sep. 8, 2009)

Recent Developments Outside Japan

-The Company considers plastic fuel tank production in Europe Yachiyo Industry Co., Ltd. has started studies on possible manufacturing of plastic fuel tanks in Europe in order to enhance its auto parts business. As for the plastic fuel tank, it has started production at its second North American plant in addition to manufacturing in Japan. Production is also scheduled to begin in Brazil, South America, in 2011. In Asia it has two plants in China and one in Thailand. The Company has thus accelerated overseas production operations and will, therefore, consider local production in Europe, where its operation is comparatively insufficient. (From an article in the Nikkan Jidosha Shimbun on Jan. 18, 2010)

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

 

Outlook for FY2010

(in billions of JPY)

	FY2010	FY2009	Year-on-year comparison
Sales	310.0	275.7	34.3
Automotive components field	165.0	135.3	4.6
Automobile Assembly	145.0	140.4	29.7
Operating profit	5.50	2.26	3.24
Ordinary profit	5.00	2.04	2.96
Net income	1.60	(4.23)	5.83

 

Sales Volume Forecasts (parts business - tank)

(in 1,000 units)

	FY2010	FY2009	Year-on-year comparison
Total production volume	3,222	2,589	633
Japan	1,060	962	98
North America	1,038	687	351
Thailand	436	352	84
China	688	588	100

 

Sales Volume Forecast (parts business - sunroof)

(in 1,000 units)

	FY2010	FY2009	Year-on-year comparison
Total production volume	1,305	1,065	240
Japan	151	176	(25)
North America	662	530	132
China	492	359	133

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	2,770	2,240	1,657

R&D Facilities

Tochigi R&D Center	Tochigi Pref., Japan
Goshi Giken Co., Ltd.	Kumamoto Pref., Japan
Yachiyo of America Inc.	Ohio, U.S.A.

R&D Activities

1) Development of technology to mass-produce fuel tanks for new vehicle models
2) Development of technology to mass-produce lightweight and low-profile sunroofs
3) Development of fuel tanks for new vehicle models
4) Development of lightweight and low-profile sunroofs for new vehicle models
5) Research and development of new-design resin fuel tanks
6) Research and development of new types of sunroofs and related technologies
7) Research and development of environmentally friendly auto parts
8) Research and development of press forming technology capable of handling semi-melted aluminum materials
9) Research and development of new products leveraging plastic fuel tank technology

Investment Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	10,316	23,407	21,874
Automotive components	5,360	14,281	15,339
Automobile assembly	4,955	9,007	6,507

Automotive components
-The automotive components division focused its investment activities on preparing production lines to manufacture products for new program business, increasing its production capacity; and building additional plants.

Automobile assembly
-The automobile assembly division focused its investment activities on preparing production lines to manufacture products for new program business, increasing its production capacity;  and building additional plants.

Planned Capital Investments

(As of Mar. 31, 2010)

Name	Purpose	Planned total investment (in millions of JPY)	Starting	Planned completion
Kashiwabara Plant (Saitama Prefecture, Japan)	Production facilities R&D facilities	2,123	2010.03	2011.01
Yokkaichi Plant (Mie Prefecture, Japan)	Production facilities	4,025	2010.04	2011.03
Suzuka Plant (Mie Prefecture, Japan)	Production facilities	849	2010.02	2011.03
Kameyama Office (Mie Prefecture, Japan)	Production facilities	93	2010.05	2011.03
Tochigi Research Center (Tochigi Prefecture, Japan)	R&D facilities	288	2010.04	2011.02
Goshi Giken Co., Ltd. (Kumamoto Prefecture, Japan)	Production facilities	832	2009.10	2011.03
Yachiyo of Ontario Mfg., Inc. (Ontario, Canada)	Production facilities	898	2009.01	2010.12
AY Manufacturing Ltd. (Ohio, USA)	Production facilities	829	2009.07	2010.12
Yachiyo de Brasil Industria e Comercio de Pecas Ltda. (Sao Paulo, Brazil)	Production facilities	1,223	2010.04	2010.11
Siam Goshi Mfg. Co., Ltd. (Rayong, Thailand)	Production facilities	494	2009.02	2010.12
Yachiyo Zhongshan Manufacturing Co., Ltd. (Zhongshan, China)	Production facilities	376	2009.12	2010.12