Financial Overview

(in billion JPY)

	FY2008	FY2007	Rate of Change	Factors
Overall
Sales	2,214.4	2,700.4	(18.0%)	-The Company's auto parts division tried to develop and expand sales of hybrid transmissions and small car components, but its sales fell to 2,111.8 billion yen, down 18.4% year-on-year, due to a decline in sales in the global car market. -Unconsolidated sales for the fiscal year which ended March 2009 were 714.7 billion yen. Sales breakdown by product is as follows: Car bodies : 35.1% Brakes/chassis : 22.3% Drivetrains : 16.2% Engines : 15.3% Others : 11.1% Total : 100.0%
Operating income	(3.4)	180.4	-	-Despite cost reduction activities, the Company fell into the red because of decline, exchange rate fluctuations, higher material prices and increased depreciation costs.
Ordinary income	(4.9)	186.3	-
Net income	(25.1)	91.6	-

Business Performance by Region

(in billion JPY)

	FY2008	FY2007	Rate of Change (%)	Factors
Japan
Sales	1,764.8	2,225.0	(20.7)	-A decrease of automotive sales pushed down the Company's production of automotive parts including automatic transmissions and brake components.
Operating income	(36.3)	128.9	-	-There was a huge decrease in sales and increase in cost of depreciation.
North America
Sales	316.5	416.0	(23.9)	-Customers suffering from the lull in automotive sales decreased auto production, forcing the Company to drastically cut production of its major products, including automatic transmissions, door components and sunroofs.
Operating income	(7.3)	11.0	-
Europe
Sales	170.5	203.2	(16.1)	-Automakers' production cuts as well as exchange rate fluctuations had a huge impact.
Operating income	1.4	4.0	(64.5)
Others
Sales	246.5	245.5	0.4	-Slowdowns in auto production in China and sales in Thailand as well as exchange rate fluctuations were negative factors.
Operating income	34.7	37.3	(7.2)

Sales by Product Categor (Automotive Components Business)

(in billion JPY)

	FY2008	FY2007	Rate of change (%)
Engine related	221.4	259.9	(14.8)
Drivetrain related	906.8	1,170.4	(22.5)
Brake & Chassis related	455.0	535.1	(15.0)
Body related	398.5	477.5	(16.5)
Information related	130.0	145.5	(10.6)
Automotive components	2,111.8	2,588.5	(18.4)

<Poland>
-The Company and Toyota Boshoku Corporation will jointly establish a seat frame/cover manufacturing company, TBAI Poland Sp.z o.o. in November 2008. The new joint venture company will start production for use in 300,000 vehicles a year in the spring of 2011, which will be supplied to a seat assembly plant in France. It aims to achieve sales of 10 billion yen for the first year. TBAI Poland will be capitalized at 83.2 million zloty (approx. 4,200 million yen), 70% by Toyota Boshoku Europe N.V. and 30% by Aisin Europe S.A., both of which are their European management companies, respectively. The plant building of 20,000 square meters will be located in the site area of 112,000 square meters in Nowogrodziec, Wojewodztwo dolnoslaskie, southwestern part of Poland. Total investment including the site is 30 million euros (approx. 4,900 million yen). (From an article in the Nikkan Jidosha Shimbun on Sep.27, 2008)

<Thailand>
-The Company has decided to set up a new plant to manufacture engine parts in Thailand. To cope with robust automotive production in the ASEAN region, including Thailand, it will spin off engine parts production from its existing plant to manufacture highly sophisticated engine parts. Construction work will be starting in December 2008, with operations starting in November 2009. The new plant will manufacture timing chain cases and oil pumps, aiming for achieving sales of 4 billion baht (approx. 12.8 billion yen) in fiscal 2011. During this month the Company will establish a new company AISIN Thai Automotive Casting Co., Ltd. (ATAC) in Prachinburi, Thailand. It will be capitalized at 1,681 million baht (about 5.4 billion yen), with Aisin having 97% stakes, while the rest 3% is owned by Toyota Tsusho (Thailand). (From an article in the Nikkan Jidosha Shimbun on Sep.17, 2008)

-Aisin Chemical Co., Ltd. announced acquisition of 75% of the shares of SEBT LTD., a brake pad manufacturer in Rayong, Thailand, from Aisin Seiki Co., Ltd. as of Jun. 1, 2008 to make SEBT its subsidiary. Aisin Seiki acquired SEBT's shares in October, 2007. As part of the Aisin Group's efforts to improve the overall productivity, Aisin Chemical, which manufactures brake pads in Japan, will take the lead in the business in Thailand. (From an article in the Nikkan Jidosha Shimbun on Jun.5, 2008)

<USA>
-The Company has established Aisin Technical Center of America by spinning off the development division of Aisin World Corp. of America (AWA, located in Plymouth, Michigan), its sales arm in North America. By making the development operations independent, it intends to strengthen and accelerate development in North America. This will be the first time for Aisin, having some R&D centers of advanced technologies outside Japan, to establish an auto parts R&D company. Establishment of this new company, 100% funded by Aisin Seiki at a cost of 5 million USD (roughly 500 million JPY), will enable Aisin to reinforce product development for Toyota's North American operations, as well as General Motors (GM) and Ford Motor. Aisin Technical Center of America will start operations on August 1, taking over development business of customized products for the North American market, including seat parts and sunroofs. (From an article in the Nikkan Jidosha Shimbun on Jul. 23, 2008)


Business plan
2015 Group Management Vision
-The Company has established a group management vision through 2015. The vision sets such targets as increasing group sales to 4 trillion yen or more, becoming a top-class supplier in the global auto parts industry, raising the ratio of its overseas sales to 50% of total sales and improving ROI (return on investment) to 15%. This is the first time for the Company to set numerical targets in its long-tern vision. (From an article in the Nikkan Jidosha Shimbun on Sep.1, 2008)



FY2010 Outlook

Business Performance Outlook (based on the Company's announcement)

(in billion JPY)

	FY2009 (ended Mar. 2010)	FY2008	Rate of change (%)
Sales	18,000	22,144	(18.7)
Operating income	(650)	(34)	-
Ordinary income	(700)	(49)	-
Net income	(500)	(251)	-

R&D Expenditure

(in billion JPY)

	FY2008	FY2007	FY2006
Overall	115.9	115.3	103.7
Automotive components	111.5	110.3	98.4

R&D Structure
-The company's R&D structure is based on automotive parts technologies, which includes developing systems, modules and ITS products. R&D activities are carried out in cooperation among the various R&D sections at each Group company. Advanced fields such as fuel-cell and laser technology are also included.

-Major global R&D companies of the Aisin Group are:

Company	Country	Activities
IMRA America, Inc.	USA	-Developing technology; conducting applied research, tests and investigations; and gathering information
FT Techno of America, LLC	USA	-Performing the design, construction, management, and operations of test sites -Conducting test result evaluation services
AW Technical Center USA, Inc.	USA	-Conducting R&D activities on automatic transmissions and car navigation systems
Aisin Technical Center of America, Inc.	USA	-Designing and developing automotive parts for the North American market
IMRA Europe S.A.S.	France	-Conducting R&D activities on advanced technologies in fields such as energy and environment, sensory perception and intelligence, and electromagnetic force
AW Technical Center Europe S.A.	Belgium	-Conducting R&D activities on automatic transmissions and car navigation systems
FT Techno Europe GmbH	Germany	-Coordinating vehicle testing evaluations

<USA>
-The Company has established Aisin Technical Center of America by spinning off the development division of Aisin World Corp. of America (AWA, located in Plymouth, Michigan), its sales arm in North America. By making the development operations independent, it intends to strengthen and accelerate development in North America. This will be the first time for Aisin, having some R&D centers of advanced technologies outside Japan, to establish an auto parts R&D company. Establishment of this new company, 100% funded by Aisin Seiki at a cost of 5 million USD (roughly 500 million JPY), will enable Aisin to reinforce product development for Toyota's North American operations, as well as General Motors (GM) and Ford Motor. Aisin Technical Center of America will start operations on August 1, taking over development business of customized products for the North American market, including seat parts and sunroofs. (From an article in the Nikkan Jidosha Shimbun on Jul. 23, 2008)

<Japan>
-Aisin Comcruise Co., Ltd., an Aisin Seiki group company for the development, production and marketing of software for embedded systems located in Nagoya-shi, Aichi prefecture, opened Fukuoka Development Center Kitakyushu Laboratory in an academic research town in Kitakyushu-shi, Fukuoka prefecture. The new laboratory will lead a joint research with universities on advanced technology in the area of automotive control and software. Aisin Comcruise was established in February 2007 as a software development center for embedded systems owned by three Aisin Group companies including Aisin Seiki. (From an article in the Nikkan Jidosha Shimbun on Jul. 19, 2008)


Recent developments
-Hybrid transmission unit
-Small and light ESC (Electronic Stability Control)
-Engine cooling electric water pump
-Quick active seat


R&D activities
Vehicle-to-vehicle communication system
-The Company has been licensed from the Ministry of Internal Affairs and Communications (MIC), Japan as an experiment/testing agency using the UHF band and will start experiments on inter-vehicle systems at its Toyokoro Proving Ground, Toyokoro-cho, Hokkaido. Until March 2012, it will carry out measurements on the electric wave propagation feature to find effects of the radio device's location in the vehicle and of outside conditions. The Company has acquired a MIC license for the 765 MHz for experiments and will start testing. It will conduct a three-year testing on wave propagation depending on vehicle models, including compact cars and minivans, as well as outside conditions, including snow cover roads and tunnels. (From an article in the Nikkan Jidosha Shimbun on Feb. 14, 2009)

Dual Clutch Transmissions (DCTs)
-The Company has begun group-wide studies to develop dual clutch transmissions (DCTs), which are already used as next generation transmission technology in some vehicle models. The new DCTs will incorporate Aisin AI's manual transmission technology and Aisin AW's electronic control systems. Clutches and actuators will be designed and produced by Aisin Seiki. Leveraging competitive strengths at each company, the Group aims to engineer DCTs with simpler structure so as to develop more cost efficient technology. (From an article in the Nikkan Jidosha Shimbun on Oct. 16, 2008)

Capital Expenditure
-During the fiscal year which ended on Mar. 31, 2009, the company invested 220,200 million yen in total. The Group's total investment into its auto parts business reached 207,900 million yen. Of  that amount, 40,200 million yen was invested by Aisin Seiki and 44,700 million yen by Aisin AW.

Major investment locations are :
-Manufacturing facilities for brake products at its Handa Plant
-Manufacturing facilities for drivetrain products at its Tahara Plant of Aisin AW


New Equipment Installations

Name of company/plant (Location)	Equipment to be installed	Estimated amount of  investment (in million JPY)	Period of the project		Increase in production
			From	To
The Company
-Nishio plant (Aichi Pref., Japan)	Manufacturing equipment for drivetrain related products, etc.	3,600	Apr. 2009	Mar. 2010	Minor increase
Subsidiaries
Aisin Takaoka Co., Ltd. -Headquarters plant (Aichi Pref., Japan)	Casting facilities, etc.	3,500	Apr. 2009	Mar. 2010	Minor increase
Aisin AW Co., Ltd. -Headquarters plant (Aichi Pref., Japan)	Manufacturing equipment for drivetrain related products	7,000	Apr. 2009	Mar. 2010	Minor increase
-Tahara plant (Aichi Pref., Japan)	Manufacturing equipment for drivetrain related products	3,600	Apr. 2009	Mar. 2010	Minor increase