Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factors
Sales	122,478	119,469	2.5	1)
Operating income	6,290	7,346	(14.4)	-
Ordinary income	6,012	6,925	(13.2)	-
Net income	4,221	2,792	51.2	-

Factors
1) Sales
<Japan>
-Auto production in Japan recovered from the aftermath of the Great East Japan Earthquake, and as a result, the operating revenue increased 1.0% year-on-year.

<North America>
-In North America, operating revenue decreased 1.5% year-on-year due to negative currency translation because of the high evaluation of the yen. This was in spite of a recovery in the number of units being produced by OEMs.
-Due to the decrease in operating revenue, along with development costs and expenses incurred for facilities and equipment to produce products for new vehicle models, the region ended up in the red.

<Europe>
-Even though the region achieved relatively strong sales results for the year, operating revenue ended up decreasing by 0.7% year-on-year due to negative currency translation.

<Asia>
-Operating revenue in this region significantly increased year-on-year, by 36.7%, thanks to strong sales in China and the ASEAN Region. This was in spite of the impact that the flooding in Thailand had on operations.

Business Plan

-Taking advantage of the strong yen, the Company is raising the sourcing rate from overseas suppliers from the current 20 percent to 40 percent, accelerating activities to purchase an increasing number of materials and components made overseas, starting April this year. By boosting procurement of materials mainly from Korea and Southeast Asia, the Company is poised to ensure competitive cost and quality of products manufactured at its domestic plants. Although the Company has almost no products for export, a rapid appreciation of the yen would have a negative impact on its operating profit by 500 – 600 million yen for fiscal 2011. While the currency situation is not expected to directly affect the operating profit margin, which denotes profitability of a corporation, the Company would rather leverage the high yen trend for further enhancing  competitiveness in cost of products manufactured at Japanese plants. Materials and components like bolts are being considered as import items from Korea where the purchasing cost is being substantially lowered due to the weak won. The Company will also study the possibility of buying small items from Southeast Asia, such as Indonesia and Malaysia. (From an article in the Nikkan Jidosha Shimbun on January 25, 2012)

Recent Development Outside Japan

-The Company has decided to allocate production of sun visors, which it originally planned to concentrate in Thailand, to other countries as well. Based on the experiences of the massive earthquake in Japan earlier this year and a recent heavy flooding in Thailand, the Company will shift from the efficiency-oriented, concentrated production system at Kasai Teck See Co., Ltd. to a deconcentrated production in different locations to diversify risks. Part of the sun visor manufacturing operations will be transferred not only to the Company's plants in other markets, but also to the facilities of Spanish-based Grupo Antolin, its business partner producing car interior products globally. Production operations will be partially transferred to China, Mexico, India and Brazil, with production launch scheduled for 2013. (From an article in the Nikkan Jidosha Shimbun on November 21, 2011)

Business Partnership

-The Company and Grupo Antolin, a Spanish-based auto parts manufacturer, are going to establish mutual supply arrangements in ten countries and regions. The collaboration with a non-Japanese partner will enhance the Company's supply capability in the global market, as Nissan Motor Co., Ltd., its major customer, is increasing production in emerging countries. Under the agreement, the Company will supply its products to the international market by making use of Grupo Antolin's production facilities in China, India, Russia, South America and Africa. In its new mid-term business plan ending in March 2016, the Company is aiming to raise its yearly sales to 150 billion yen, up 25 percent from the result in FY2010. Its operating margin is expected to go up to 10 percent, a significant increase from the 6.1 percent in FY2010. Although the percentage of sales in Japan is projected to decrease from 48 percent to 33 percent by FY2015, the proportion of overall Asian sales is likely to climb from the current 7 percent to 22 percent by the same year. (From an article in the Nikkan Jidosha Shimbun on May 26, 2011)

Joint Ventures

<India>
-The Company and Grupo Antolin-Irausa, S.A.announced that they will establish a 50-50 joint venture in Chennai, India in February 2012. The new company, which will be tentatively called ANTOLIN KASAI TEK CHENNAI PRIVATE LIMITED, will manufacture and sell automotive interior components. It will be capitalized at 700 million rupees, approximately 1,190 million yen. The annual sales are estimated to be 649 million rupees, approximately 1,100 million yen, in 2014. (From a press release on January 30, 2012)

<China>
-The Company announced on November 1 that it will establish a joint-venture company to manufacture automotive interior products in Kaifeng city, Henan Province, China. The new company will be formed in January 2012 through a joint investment with Hainan Junda Auto Ornament Co., Ltd., a local auto parts supplier in Haikou City, Henan Province, and Guangzhou Kasai Automotive Interior Trim Parts Co., Ltd., the Company's subsidiary in Guangzhou City, Guangdong Province. The joint-venture company will be capitalized at 60 million yuan (approximately 750 million yen) with the Company investing 10 percent, Guangzhou Kasai 50 percent, and Hainan Junda 40 percent. Sales are expected to reach 240 million yuan (approximately 3 billion yen) by FY2014. (From an article in the Nikkan Jidosha Shimbun on November 4, 2011)

 

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

Outlook for FY ending Mar. 31, 2013

(in million JPY)

	FY ending Mar. 31, 2013 (Estimate)	FY ended Mar. 31, 2012 (Result)	Rate of Change (%)
Sales	142,000	122,478	15.9
Operating income	8,000	6,290	27.2
Ordinary income	7,700	6,012	28.1
Net income	3,200	4,221	(24.2)

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Overall	879	570	567

-During this fiscal year, the Company is spending its entire budget allocated for R&D, in Japan.

R&D Structure

-The Company's R&D activities are mainly conducted at the Advanced Product and Production Method Development Division.

R&D Activities

Weight Reduction
-Weight reduction is the main focus of R&D activities on doors, pillars, ceilings, and trunk-trim. In addition, the Company is working to achieve an optimum balance between products that are lower in cost but still offer the highest levels of quality and weight reduction.

Safety
-Based on a proprietary structural design, the Company has succeeded in injection-molding impact-absorbing products that offer greater safety to vehicle occupants during lateral collisions. These products, which are lower in price compared to conventional products, still offer a high level of performance. The Company is delivering these to OEMs for mounting on mass-marketed vehicle models.

Environmental protection
-The Company is working to reduce and/or eliminate VOC (volatile organic compounds) in materials, as well as changing to alternative production methods. It is changing to water-soluble adhesives and hot-melting processes; as well as mixing coloring agents directly into plastics instead of relying on paint.

-The Company is working to find alternatives for plastics, by using plant-based resins (polylactic acid); and alternatives to vinyl chloride materials, changing to TPO (thermoplastic elastomer olefin) and TPU (thermoplastic elastomer urethane).

Cabin-interior comfort
-Working under the aim of further improving soundproofing, the Company is developing high-performance products by making use of acoustic theory and CAE, conducting experiments on materials by utilizing reverberation rooms and actual vehicles that use four-wheel drive chassis dynamos.

-The Company is working to make products for cabin ceilings that have even further improved insulating properties, as it strives to achieve a more comfortable temperature in the cabin-interior.

Appeal and convenience
-The Company is designing products for cabin-interiors, such as decorative trim for door coverings and ornamentation for door-waists, making these types of trim more stylish, more pleasant to the touch by using innovative surface treatments, and giving them a more solid feel. In addition, the Company is working on developing pillars and trunks that use plastics that make scratches less noticeable.

Capital Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Japan	2,697	-	-
North America	1,942	-	-
Europe	291	-	-
Asia	1,166	-	-
Total	6,097	4,463	4,266

Planned Capital Investment

(As of Mar. 31, 2012)

Company name Site name	Type of facility	Planned investment (million JPY)	Start	Planned completion
Headquarters Plant (Kanagawa Pref., Japan)	Facilities to assemble automotive interior parts, dies, tools, and other items	2,610	Apr. 2012	Mar. 2015
Mie Kasai Co., Ltd. (Mie Pref., Japan)	Facilities to assemble automotive interior parts, tools and other items	395	Apr. 2012	Mar. 2015
Gunma Kasai Co., Ltd. (Gunma Pref., Japan)	Facilities to assemble automotive interior parts, tools and other items	341	Apr. 2012	Mar. 2015
Kyushu Kasai Co., Ltd. (Oita Pref., Japan)	Facilities to assemble automotive interior parts, tools and other items	261	Apr. 2012	Mar. 2015
M-TEK Inc. (Tennessee, USA)	Facilities to assemble automotive interior parts, tools and other items	1,497	Apr. 2012	Mar. 2015
Kasai Mexicana S.A. de C. V. (Guanajuato, Mexico)	Facilities to assemble automotive interior parts, tools and other items	527	Apr. 2012	Mar. 2015
R-TEK Ltd. (Tyne and Wear, UK)	Facilities to assemble automotive interior parts, tools and other items	393	Apr. 2012	Mar. 2015
Guangzhou Kasai Automotive Interior Trim Parts Co., Ltd. (Guangzhou, China)	Facilities to assemble automotive interior parts, tools and other items	448	Apr. 2012	Mar. 2015
Wuhu Kasai Automotive Interior Trim Parts Co., Ltd. (Wuxi, China)	Land and building for a new plant, and facilities to assemble automotive interior parts, tools, and other items	392	Apr. 2012	Mar. 2015
Kasai Teck See Co.,Ltd. (Ayuttaya, Thailand)	Facilities to assemble automotive interior parts, tools and other items	312	Apr. 2012	Mar. 2015