Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	15,537	18,565	(16.3)	-Sales gradually recovered in and after the second quarter, thanks to governmental stimulus programs such as green car tax breaks and subsidies for new-car purchasers. But the gains made during the latter half of the year were not enough to offset the steep decline in sales in the first quarter.
Operating income	107	(301)	-	-
Ordinary income	41	(468)	-	-
Current net income	(1,808)	(678)	-	-
Automotive components division
Sales	14,830	17,241	(14.0)	-
Operating income	40	(382)	-	-

New Company

-The Company announced that it will establish a new subsidiary in Guangdong Province, China in order to manufacture and sell automotive interior parts. The facility, which will become the Company's second plant in China, is intended to enhance its supply capability to support Japanese automakers operating in southern China. The new headquarters and production facility will have 5,000 square meters of building area on 20,000 square meters of land in Foshan City. The subsidiary will be established in July 2009 and start production in Nov. 2010. (From an article in the Nikkan Jidosha Shimbun on July 16, 2009)

Business Restructuring

-The Company announced its intention to liquidate its consolidated subsidiary Meishin Kogyo. The increasingly severe business environment surrounding automobile-related industries forced the Company to discontinue the operations of the subsidiary. Meishin, based in Nagano Pref., performs finishing processes for automotive interior parts. The liquidation procedures will be completed sometime in Dec. 2009. (From a press release on Aug. 18, 2009)

Outlook for FY2010

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)
Sales	17,300	15,537	11.3
Automotive components division	16,115	14,830	8.7
Operating income	280	107	161.7
Ordinary income	170	41	314.6
Net income	60	(1,808)	-

Business Strategy Outside Japan

Dalian Meiwa Chemical Products Co., Ltd.
- Its business model was changed.
-Its sales of automotive parts account for 95% of its entire annual sales.
-Its yearly sales are approximately 1 billion yen.

Meiwa (Foshan) Automobile Parts Co., Ltd.
-Production of Meitone (its core product) started in November 2010.
-Planning to increase its yearly sales to approximately 1 billion yen by 2013.

-Studying possibilities of selling its products to ASEAN countries and India in order to increase sales outside Japan.

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	84	N.A.	N.A.
Automotive components division	35	32	84

R&D Activities

Automotive components division
The Company will work on the following ideas in its R&D activities. It will be focusing on reducing costs, creating products that are both lighter in weight and more rigid, improving products to make them more commercially appealing, and making products that contribute to improving the environment.
-Improving the product performance of Meitone
-Developing a light, highly durable, low-price deck board.
-Improving the product competitiveness of mats by lowering their prices.
-Cooperating with materials makers by conducting joint research on finding new applications for new materials and foaming technology.
-Upgrading technology on recycling, and launching biodegradable products, as ways to reduce environmental impact.
-Research and development with a view toward launching operations into new product sectors.

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	926	1,388	1,108
Automotive components division	913	1,385	1,099

-For the automotive components division, the Company invested mainly to install production facilities and molds at existing plants in order to manufacture products that are for new orders the Company won. The Company aims to enhance the production capacity and streamline and renew the production facilities through making capital investments.

Planned Capital Investments

(As of Mar. 31, 2010)

Name	Location	Business/Facilities	Total Planned Investment(million JPY)	Start	Planned completion
Meiwa (Foshan) Automobile Parts Co., Ltd.	Guangdong, China	Construction of new plant building Moving  facilities used for manufacturing Meitone, etc.	405	Dec. 2009	Oct. 2010
Kofu Plant	Yamanashi Pref., Japan	Facilities for manufacturing trunk parts	54	June, 2009	June, 2010