Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Overall
Sales	17,077	15,537	9.9	- Overall sales increased year-on-year, thanks to strong sales of vehicles before the March 11 earthquake.
Operating income	238	107	122.4	-
Ordinary income	18	41	(56.1)	-
Current net income	62	(1,808)	-	-
Automotive components division
Sales	16,096	14,830	8.5	- Sales of automotive parts rose from the previous year’s result, supported by strong sales of vehicles before the March 11 disaster. Some of the major factors behind the increase were the economic growth in emerging markets and the effects of the government’s sales incentive schemes such as tax cut and subsidy for vehicle purchase.
Operating income	280	40	600.0	-

Business Strategy Outside Japan

Meiwa (Dalian) Automobile Parts Co., Ltd.
 - This company was formerly called Dalian Meiwa Chemical Products Co., Ltd.
- Its yearly sales are approximately 1 billion yen.
- The subsidiary started operating in the black.

Meiwa (Foshan) Automobile Parts Co., Ltd.
- Operations started in January 2011
- Sales are expected to reach approximately 300 million yen in FY2011
- Sales are expected to increase to approximately 1 billion yen by 2013

- Started to deal with Chinese companies

Performance Forecast

(in millions of JPY)

	FY2011 Forecast	FY2010 Result	Rate of Change (%)
Sales	17,100	17,077	0.1
Operating income	550	238	131.1
Ordinary income	500	18	2,677.8
Net income	50	62	(19.4)

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	93	84	N.A.
Automotive components division	33	35	32

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.

Product Development

GFPP sheets
- The Company added glass fiber to its existing PP base material for blow molded sheets.
- Reduction of materials thickness contributes to a 20 to 30 percent saving on product weight, while maintaining the strength level.

Reinforced urethane foam PP sheets with three-layer structure
- The Company developed a lightweight and high-strength material. Lightweight, foamed plastic core is sandwiched by reinforced PP sheets.
- Use of urethane foam as a core and adding glass fiber to conventional PP sheets further reduced product thickness, contributing to over a 25 to 40 percent saving on weight.

7th board (aluminum resin composite) jointly produced with Kobe Steel, Ltd.
- Stamping of 3-dimensional structure is possible.
- Reduces product weight by 80 percent compared with steel sheets, 60 percent compared with aluminum sheets.
- Offers superior vibration suppression property and heat insulating/shielding characteristics.

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	1,469	926	1,388
Automotive components division	1,466	913	1,385

-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, 2011)

Name	Location	Business/Facilities	Total Planned Investment(million JPY)	Start	Planned completion
Kofu Plant	Yamanashi Pref., Japan	Facilities for manufacturing automotive interior parts	173	June 2010	Aug. 2011
		Facilities for recycling materials	79	Mar. 2011	June 2011