Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Sales	119,469	101,027	18.3	Sales and profits increased from last year as a result of the following initiatives by the Company: - Maintaining high product quality, improving productivity, and reducing costs - Strengthening development and technical capabilities - Expanding sales to new customers on a global basis
Operating income	7,346	3,245	126.4
Ordinary income	6,925	3,152	119.7
Net income	2,792	1,277	118.6

Joint Ventures
-The Company announced that it will establish next month a joint-venture company to produce automotive interior parts in Anhui Province, China. The new company will start production in July 2012 and supply its products to Chery Automobile. By 2013, sales are expected to reach 330 million yuan (approximately 4.5 billion yen) with a workforce of 250. The joint venture will be capitalized at 11.5 million US dollars, of which 40 percent will be invested by the Company; 20 percent by Guangzhou Kasai Automotive Interior Trim Parts Co., Ltd., the company's subsidiary in Guangzhou; and the remaining 40 percent by Wuhu Chery Science and Technology Co., Ltd. (From an article in the Nikkan Jidosha Shimbun on Jul. 12, 2010)

 

 

Medium-term Management Plan

Financial targets by FY2015 (year ending March 2016)
- Sales of 150 billion yen.
1) Operating profit ratio of over 10 percent.
2) Capital adequacy ratio of over 40 percent.
3) Global market share of over 10 percent.

Business plans

1) To focus management resources on growing markets.

<North America>
- Establishing North American headquarters .
- Strengthening headliner business in the U.S.A.
- Expanding operation in Mexico.

 

<Asia>
To increase the percentage of Asian sales to 22 percent by FY2015 from the 7 percent in FY2010.
China
- Established Wuhu Kasai Automotive Interior Trim Parts Co., Ltd. in September 2010 to support Chery Automobile .
- Establishing a new company in Kaifeng to serve Zhengzhou Nissan.
- Mulling the possibility of establishing its fourth facility in the country.
- Established a design office in Shanghai in January, 2011.

Korea
- Making additional investment in Dongwon Technology of Korea in April 2010.
- Investing in Shinil Chemical Industry Co., Ltd., a resin manufacturer in Korea in May 2011.

 

India
The Company is considering the possibility of making a foray into Chennai.

2) To respond to global expansion plans .
 To establish a mutually complementary relationship with Grupo Antolin （GA）.

3) To reinforce headliner business.
- Increase production of sun visors and map-reading lamps.

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

Performance forecast

(in million JPY)

	FY2011 Forecast	FY2010 Result	Rate of Change (%)
Sales	120,000	119,469	0.4
Operating income	6,500	7,346	(11.5)
Ordinary income	6,300	6,925	9.0
Net income	2,600	2,792	(6.9)

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	570	567	655

- R&D spending will be focused on developing headliner units and other products.

R&D Activities

New materials
- Launching polypropylene-based nano composites.
- Resin composites using natural fibers.
- Introduction of low-viscosity polyol.

Functional advancements
- Developing headliners offering superior thermal insulating properties.
- Sound absorbing rear parcel shelves.
- Developing soundproof covers for electric vehicle motors.

Processing
- Automated assembling process.
- Production process without producing semi-finished products.
- 2-color forming technology.

Environment
- Reducing weight of products (use of thin-walled and uneven thickness foaming technology)
- Eliminating use of organic solvent adhesives.
- Paint-less plastic molding technology.
- Improving recycling rate.

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	4,463	4,266	6,708

- In Japan, the Company invested 1,929 million yen mainly in installing new production equipment and dies in order to deal with vehicle model changes.
-Outside Japan, the Company spent 2,533 million yen mainly in installing new production equipment to deal with vehicle model changes.

Investments Outside Japan

-The Company said on July 27 that it will boost production capacity of its consolidated subsidiary in Thailand, Kasai Teck See (KTS). With an additional investment of 236 million baht, the subsidiary will acquire from a neighboring manufacturing company its land, buildings and equipment to meet requirement for increasing production of Nissan's small vehicles in Thailand, and also to strengthen the parts supply network in the ASEAN region. The capital hike will be conducted in September with 177 million baht borne by the Company and the remaining by the joint venture partner based in Malaysia. (From an article in the Nikkan Jidosha Shimbun on July. 28, 2010)

New Facilities

(As of Mar. 31, 2011)

Company name Site name	Type of facility	Planned investment (million JPY)	Start	Planned completion
Head Office (Kanagawa Pref., Japan)	Facilities to assemble automotive interior parts, dies tools, and other items	3,174	2011.04	2012.03
Kyushu Kasai Co., Ltd. (Oita Pref., Japan)	Facilities to assemble automotive interior parts, tools, and other items	741	2011.04	2012.03
M-TEK Inc. (Tennessee, USA)	Facilities to assemble automotive interior parts, tools, and other items	1,313	2011.04	2012.03
R-TEK Ltd. (Tyne and Wear, UK)	Facilities to assemble automotive interior parts, tools, and other items	641	2011.04	2012.03
Guangzhou Kasai Automotive Interior Trim Parts Co., Ltd. (Guangzhou, China)	Facilities to assemble automotive interior parts, tools, and other items	599	2011.04	2012.03
Wuhu Kasai Automotive Interior Trim Parts Co., Ltd.	Land and building for a new plant, and facilities to assemble automotive interior parts, tools, and other items	670	2011.04	2012.03
Kasai Teck See Co.,Ltd. (Ayuttaya, Thailand)	Facilities to assemble automotive interior parts, tools, and other items	729	2011.04	2012.03