Financial Overview

(in million dollars)

	FY2008	FY2007	Rate of change	Factors
Overall
Net Sales	13,570.5	15,995.0	(15.2%)	+	- The impact of net foreign exchange rate fluctuations and the benefit of new business, which increased net sales by $585 million and $282 million, respectively.
				-	- Lower industry production volumes and unfavorable vehicle platform mix in North America and Europe, as well as the divestiture of its interior business, negatively impacted net sales by $2.6 billion and $656 million, respectively.
Gross Profit	744.0	1,148.5	(35.2%)	-	- The impact of lower industry production volumes, as well as unfavorable vehicle platform mix largely in North America, reduced gross profit by $693 million. - The impact of net selling price reductions was more than offset by the benefit of the productivity and restructuring actions.
Sales by segment
Seating	10,726.9	12,206.1	(12.1%)	+	- The impact of net foreign exchange rate fluctuations and the benefit of new business favorably impacted net sales by $404 million and $190 million, respectively.
				-	- Lower industry production volumes and unfavorable vehicle platform mix in North America and Europe negatively impacted net sales by $2.2 billion.
Electronic and electrical	2,843.6	3,100.0	(8.3%)	+	- The impact of net foreign exchange rate fluctuations and the benefit of new business, which favorably impacted net sales by $181 million and $92 million, respectively.
				-	- Lower industry production volumes and unfavorable vehicle platform mix in North America and Europe negatively impacted net sales by $483 million.
Interior	-	688.9	-	NOTE: The Company substantially completed the divestiture of its interior business in the first quarter of 2007.

NOTE: In the Company's annual report on FY2008, the public accounting firm cited factors that raise substantial doubt about the Company's ability to continue as a going concern.


Contracts
Three-year [2009-2011] Sales Backlog
Total: 1,100 million USD

By Product
-Seating: 60%
-Electrical and Electronic: 40%

By Region
-North America: 0 million USD
-Europe: 300 million USD
-Asia: 800 million USD

Global New Business in FY2008
The Company provides products to various models including the followings;
Europe
Audi A4, Mercedes GLK, Fiat Delta and Nissan Qashqai

North America
Lincoln MKS, Mazda 6, Chevrolet Aveo, Saturn VUE

South America
Mercedes C-Class

Asia
Buick Regal, Citroen Elysee

Contracts - Environmental Vehicle (scheduled)
(1) The Company's Content on New Chevy Volt
-High and low-voltage wire harnesses
-Custom terminals and connectors, including the industry's first terminal with 250-amp capability
-External charging cable with Smart Connector.
-Other proprietary electronics

(2) Other Recent Hybrid Awards
BMW (new generation) hybrid vehicles
-High-voltage wiring system

Fisker Karma
-Electrical distribution system, solid-state smart junction box., battery charger, wireless products and select electronics.

Land Rover
-Voltage module

Renault
-Battery charger

Saturn
-Battery charger


Acquisitions
-In Jun. 2008, the Company announced that it has entered into agreements to acquire a 75% share of the automotive fabric business of New Trend Group Co., Ltd. (New Trend Group). The acquisition is consistent with its strategy to selectively increase the level of vertical integration for its Seating business. New Trend produces fabric used for seat covers, vehicle headliners and automotive door panels and carpet for GM, VW, Ford, China Brilliance, Toyota, Nissan, Hyundai, Chery and Geely vehicles, predominantly in China. (From a press release on Jun 13, 2008)


Dissolution of Joint Ventures
-In Dec. 2008, the Company and Toyota Boshoku have agreed to dissolve a joint venture agreement under which they supply seating systems and other interior components to Toyota Motor Manufacturing Indiana (TMMI) for the Sienna minivan, built in Princeton, Indiana. The existing joint venture will be dissolved with the Company receiving 35 million USD in exchange for its minority interest in the JV. The Company will supply Toyota Boshoku with certain components for the Sienna minivan program. The Company and Toyota Boshoku have also agreed to jointly pursue sourcing opportunities for certain seating components as well as purchasing opportunities for key commodities such as steel, foam and textiles. (From a press release on Dec 2, 2008)


Restructuring
Implemented followings since 2005
-Closed or consolidated more than 25 facilities worldwide
-Reduced salaried census by 33% in North America

R&D Expenditure

(in million dollars)

	FY2008	FY2007	FY2006
Amount	113.0	134.6	169.8

R&D Structure
-The Company has the ability to integrate the engineering, research, design, development, and validation testing of all automobile interior systems.

-The Company has more than 5,000 engineers worldwide.

-Technology development is conducted at their 6 advanced technology centers and at their product engineering centers worldwide.

-Global Innovation & Technology Center located in Southfield, Michigan, is their central location for consumer research, benchmarking, craftsmanship and individual design activity.

-The Company has state-of-art acoustic testing and instrumentation and data analysis capabilities.

-The Company has a seven-dimensional view of product and technological innovation. These dimensions are Safety, Comfort & Convenience, Environmental, Craftsmanship, Commonization, Infotainment and Flexibility.


R&D Activities
Seating Segment
-Currently, the Company is focused on creating light-weight seating solutions by capitalizing on the application of technology, such as SoyFoam(TM) products and Dynamic Environmental Comfort Structuretm System, which utilize alternative seating materials, and LeanProfile(TM) seats, which feature low-mass, high-function and environmentally friendly features.

Electrical and Electronic Segment
-Currently, the Company is also developing high-end electronics for the premier luxury automotive manufacturers around the world, such as gateway modules, exterior and interior lighting controls and other highly integrated electronic body modules.

-In addition, the Company is developing new products for the rapidly growing hybrid/electric vehicle market.To further these efforts, the Company recently opened High Power Global Center of Excellence for the development of high-power electrical and electronic systems and components.

Capital Expenditure

(in million dollars)

	FY2008	FY2007	FY2006
Seating	106.3	114.9	161.1
Electronic & Electrical	60.8	80.3	77.0
Interior	-(*)	1.2	98.7
Other	0.6	5.8	10.8
Total	167.7	202.2	347.6

* The Company completed the divestiture of its interior business in the first quarter of 2007.