Financial Overview

(in billion JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	2,054.4	2,214.4	(7.2)	1)
Operating income	87.5	(3.4)	-	-
Ordinary income	94.9	(4.9)	-	-
Net income	16.6	(25.1)	-	-
Auto Parts Business
Sales	1,969.9	2,111.8	(6.7)	2)

Factors
1)
-Sales in Japan totaled 1,727.1 trillion yen, a decrease of 2.1 percent year-on-year from the previous year's result of 1,764.8 billion yen. Business has shown some recovery, thanks to increased sales of environmentally friendly products such as hybrid transmission systems, and electric pumps for cooling the engine. The rise in sales was supported by eco-car incentive programs. The slight rise in sales that occurred in the latter half of the year, however, was not enough to offset the impact of the significant decrease in vehicle production in the first half of the year.

<North America>
-Sales in North America were 232.9 billion yen, a decrease of 26.4 percent from the previous year's result of 316.5 billion yen. The drop was mainly due to a decrease in vehicle production, slow vehicle sales amid the sluggish economy, as well as negative currency translation.

<Europe>
-Sales in Europe were 140.6 billion yen, a decrease of 17.5 percent compared with the previous year's figure of 170.5 billion yen. Although demand for vehicles recovered in some countries, stimulated by scrap (clunker) incentive programs, the increase was not enough to rise above a drop in overall sales and negative currency translation.

<Others>
-Sales in other countries totaled 201.6 billion yen, falling by 18.2 percent from last year's figure of 246.5 billion yen. The decrease was attributable to decreased vehicle production in Thailand and negative currency translation, despite increased production volumes at the Company's major customers in China.

2)
-Although the Company worked on developing and expanding sales of environmentally friendly products such as hybrid transmission systems and electric pumps used to cool engines, sales of automotive products decreased from the previous year's level due to sluggish vehicle sales in many countries.

Contracts

-The Company announced that its new proprietary electric-powered water pump to circulate coolant water for the engine is used in the new Toyota Prius hybrid.
>>>See R&D for more details

-The Company's next-generation power seat adjusters, which control the position of seats electronically, were featured on the Toyota Mark X. The seat system, which has an improved adjuster, provides the same level of power as that of conventional products, but weighs up to 20% less.

Recent Developments in Japan

-The Company is revving up benchmarking activity to boost competitiveness of its products in performance and prices in reference to the industry standard. By aggressively pursuing the activity, the supplier is defining targets for cost and weight reduction for each product in a bid to survive in the auto parts industry amidst an increasingly intensifying competition. The development division of the Company has so far focused on advanced levels of technologies in developed markets, but from now on it will also look to products manufactured in emerging countries with a high potential for growth like China and India in terms of benchmarking in order to assure competitiveness in cost and technologies to meet varying demand in each market. (From an article in the Nikkan Jidosha Shimbun on July 24, 2009)

-The Company and its affiliate, ADVICS Co. Ltd., Kariya, Aichi Pref., Japan announced that they have agreed on a basic agreement to transfer part of the Company's automobile brake production business to ADVICS. Through acquiring the production business in Japan, which had been an issue for ADVICS, it will be able to establish the foundation to achieve higher competitiveness with combined efforts with its own production operation. The Company plans to transfer the production facilities and shares of stock related to the Company's Kariya Plant (brake parts production), Kariya, Aichi-Pref. and AS Brake Systems, Inc., Itami, Hyogo Pref. to ADVICS by April 1, 2010. The Company's brake manufacturing company in Indiana, U.S.A. will also be transferred to ADVICS on July 1. The annual sales level of the production business to be acquired by ADVICS is 100 billion yen, which accounts for one third of its consolidated net sales. Approximately 1,500 employees in Japan and 500 employees in the U.S. will move to ADVICS, which will increase the Company's human resources by 70%. (From an article in the Nikkan Jidosha Shimbun on Oct. 2, 2009)

-The Company announced that the Group will reclass its aluminum die-casting business. The Company began to transfer production of transmission parts and other small aluminum components, which is currently handled at its Higashiura Plant of Aisin Takaoka Co., Ltd. in Aichi Prefecture to the following three facilities this month: the Company's Nishio Die-casting Plant in Aichi Prefecture; Aisin Hokkaido Co., Ltd. in Tomakomai, Hokkaido; and Aisin Keikinzoku Co., Ltd. in Toyama, Toyama Prefecture. The aim of this move is to consolidate the Group's aluminum die-casting business and increase efficiency. Aisin Takaoka will thereafter focus on production of cast-iron components such as bumper reinforcements. (From an article in the Nikkan Jidosha Shimbun on Feb. 9, 2010)

Recent Developments outside Japan

<USA>
-The Company has started to consider closure of Aisin MFG. California, LLC, its door frame manufacturing base in CA, U.S.A. The need has been created to respond to the termination of production as of the end of Mar. 2010 of New United Motor Manufacturing, Inc. (NUMMI), a GM and Toyota joint venture in Fremont, CA., to which Aisin MFG. California supplies 100 percent of its products. (From an article in the Nikkan Jidosha Shimbun on Sep. 5, 2009)

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

Outlook for FY2010

(in billion JPY)

	FY2010	FY2009	Year-on-year Fluctuation
Sales	2,100.0	2,054.4	45.6
Operating income	110.0	87.5	22.5
Ordinary income	112.0	94.9	17.1
Net income	50.0	16.6	33.4
R&D Expenditure	110.0	101.1	8.9
-The Company	40.9	38.5	2.4
Investment Expenditure	140.0	83.8	56.2
-The Company	25.0	24.6	0.4

Sales by Geographic Area

(in billion JPY)

	FY2010	FY2009	Year-on-year Fluctuation
Japan	1,516.9	1,505.9	11.0
North America	231.4	219.0	12.4
Europe	135.0	134.1	0.9
Others	216.5	195.3	21.2

Sales by Customer

(in billion JPY)

Customer	FY2010	FY2009	Year-on-year Fluctuation
Toyota Group	1,409.8	1,391.2	18.6
VW & Audi	134.0	115.0	19.0
Suzuki	42.9	51.4	(8.5)
Ford	40.1	42.8	(2.7)
Mitsubishi	38.8	32.9	5.9
GM	29.7	30.6	(0.9)
Mazda	28.7	30.1	(1.4)
Volvo	27.1	25.6	1.5
Nissan	22.2	15.9	6.3
Shanghai Automotive Industry	17.8	11.9	5.9
Daewoo	13.8	16.6	(2.8)
Hyundai	N.A.	15.5	-

R&D Expenditure

(in billion JPY)

	FY2009	FY2008	FY2007
Overall	101.1	115.9	115.3
Auto parts business	98.3	111.5	110.3

R&D Structure
-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

Recent Developments

-Hybrid transmission units
-Small and light ESC (Electronic Stability Control) systems
-Pre-crash seat back systems

Electric-powered water pump to circulate coolant water for the engine
-The Company announced that its new proprietary electric-powered water pump to circulate coolant water for the engine is used in the new Toyota Prius hybrid. The electric-powered water pump is the first of its kind to be developed in Japan. The advanced water pump draws its energy from the battery instead of the engine, reducing friction loss through precise control of the coolant water flow rate and an electrically operated drive belt. This contributes to a 2 percent improvement in overall vehicle fuel economy. The Company aims to expand application of this fuel saving technology on an increased number of models. An electric-powered water pump is used in some gasoline engine models manufactured by BMW. The new Prius is the first vehicle equipped with such pump among all gasoline and hybrid vehicles produced by Japanese automakers. (From an article in the Nikkan Jidosha Shimbun on May 22, 2009)

Capital Expenditure

(in billion JPY)

	FY2009	FY2008	FY2007
Overall	83.8	220.2	212.0
Auto parts business	64.2	207.9	204.0

-Capital spending in the auto parts business for FY2009 included an investment of 8.8 billion yen at the Company and a 13.1 billion yen investment at Aisin AW.

Recipients of major investments were:
-A facility that produces body components at the Shintoyo Plant
-A facility that produces drivetrain products at the headquarters 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
			From	To
The Company
-Nishio plant (Aichi Pref., Japan)	Equipment for manufacturing drivetrain products, etc.	3,700	Apr. 2010	Mar. 2011
-Handa plant (Aichi Pref., Japan)	Equipment for manufacturing brake and chassis products	3,600	Apr. 2010	Mar. 2011
Subsidiaries
Aisin Takaoka Co., Ltd. -Headquarters plant (Aichi Pref., Japan)	Casting facilities, etc.	3,600	Apr. 2010	Mar. 2011
Aisin AW Co., Ltd. -Headquarters plant (Aichi Pref., Japan)	Equipment for manufacturing drivetrain products	25,300	Apr. 2010	Mar. 2011
Aisin AW Co., Ltd. -Okazaki plant (Aichi Pref., Japan)	Equipment for manufacturing drivetrain products; and information communication systems	6,900	Apr. 2010	Mar. 2011
Aisin AW Co., Ltd. -Tawara plant (Aichi Pref., Japan)	Equipment for manufacturing drivetrain products	13,800	Apr. 2010	Mar. 2011
Aisin Keikinzoku Co., Ltd. -Headquarters plant (Toyama Pref., Japan)	Casting facilities, etc.	3,300	Apr. 2010	Mar. 2011
Aisin AW Industries Co., Ltd. -Headquarters plant (Fukui Pref., Japan)	Equipment for manufacturing drivetrain products	5,000	Apr. 2010	Mar. 2011
AW North Carolina, Inc. -Headquarters plant (North Carolina, USA)	Equipment for manufacturing drivetrain products	9,000	Apr. 2010	Mar. 2011
Aisin Thai Automotive Casting Co., Ltd. -Headquarters plant (Prachinburi, Thailand)	Equipment for manufacturing engine products	3,600	Apr. 2010	Mar. 2011