Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Overall
Sales	495,002	546,380	(9.4)	1)
Operating income	26,202	15,833	65.5	-
Ordinary income	26,574	12,155	118.6	-
Net income	14,255	3,951	260.8	-
Automotive component business
Sales	454,373	518,048	(12.3)	2)
Operating income	21,172	14,757	43.5	-

Factors
1)
<Japan>
-Sales decreased 7.4% from the previous year to 319.1 billion yen due to a decrease in production volumes at major customers, including Toyota. 

<North America>
-In spite of a rebound in production volumes at major customers, sales fell 0.5% from a year earlier to 102.1 billion yen due to a decrease in the number of consolidated subsidiaries and  negative currency translation because of the strong yen. 

<Asia and Australia>
-Sales declined 13.4% to 99.6 billion yen compared with the past year because of reduced  production volumes at major customers in Thailand, the Company's leading market; as well as  negative currency translation because of the strong yen. 

<Other>
-A substantial reduction in production volumes at leading customers led to a 41.2% drop in sales to 16.5 billion yen compared with those recorded the previous year.  
2)
-Sales decreased due to a significant  drop in vehicle production volumes from the same period of the previous year. 

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

Financial Overview for FY2010

(in billions of JPY)

	FY2010	FY2009	Year-on-year Fluctuation
Sales	500.0	495.0	50
-Automotive component business	445.0	454.3	(93)
Operating income	27.0	26.2	8
Ordinary income	25.0	26.5	(15)
Net income	15.0	14.2	8
R&D Expenditure	26.0	26.0	0
Investment Expenditure	51.0	34.3	167

 

Sales by Segment (Automotive component business)

(in billions of JPY)

	FY2010	FY2009	Year-on-year Fluctuation
Interior & exterior parts	151.0	155.7	(47)
Body sealing products	83.0	76.6	64
Functional parts	79.0	78.0	10
Safety systems	132.0	143.9	(119)
Total	445.0	454.3	(93)

 

Sales by Region

(in billions of JPY)

	FY2010	FY2009	Year-on-year Fluctuation
Japan	320.0	319.1	9
North America	92.0	102.1	(101)
Australia and Asia	110.0	99.6	104
Other regions	18.0	16.5	15

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Automotive Parts Business	23,000	21,300	22,300
Non-Automotive Parts Business	3,000	3,400	3,600
Total	26,000	24,700	25,900

R&D Structure

-R&D activities are conducted globally through cooperation among several organizations within the Company: the R&D Center; Production Technology Development Center; Development, Engineering and Production Engineering Departments at each business segment; Technology Management Department; Material Engineering Department, and its subsidiaries outside Japan, namely Toyota Gosei North America Corporation and Toyota Gosei Europe.

R&D Facilities

Kitajima Technical Center	Aichi Pref. Japan
Miwa Technical Center	Aichi Pref. Japan

R&D Activities

-The Company developed and launched mass production of new products, including rear-end impact airbags, LED-based large-sized backlights for full-size liquid-crystal meters, three-dimensional illuminant scuff plates, hidden TPV glass runs which reduce noise, and reflection-free ducts which reduce pressure loss.
-The company started volume production of  products such as front aero bumpers made of thin and light-weight plastic materials.
-The Company developed materials, products, and production technology which comply with environmental regulations.
-The Company developed all-composite, high-pressure hydrogen tanks for fuel cell vehicles.

Bioplastic components
-The Company is embarking on commercial production of cellulose-based bioplastic components by 2011. Polypropylene is common material for making plastic auto parts. If cellulose-mixed polypropylene is used, use of oil-derived material can be reduced. Unlike polylactic acid based on agricultural produce such as corns, sugar canes and potatoes, cellulose is not based on edible materials. Also there is room for cost reduction. Entry into the bioplastic market is the first for the Company, which produces mainly plastic and rubber parts. The Company is aiming to expand the application of the new material to internal and external automotive components, starting with small interior parts like a scuff plate. (From an article in the Nikkan Jidosha Shimbun on Nov. 6, 2009)

Patent License Contracts for Innovations in Technology

(As of Mar. 31, 2010)

Company	Country	Contract	Period
Eaton Corporation	USA	A patent license agreement for fuel valves.	Feb. 10, 1999 - Feb. 18, 2013
Autoliv Development AB	Sweden	A patent license agreement for curtain airbags.	Feb. 5, 2001 - Feb. 20, 2016
Stant Manufacturing, Inc.	USA	A patent license agreement for quick turn fuel caps.	Apr. 2, 2001 - Oct. 18, 2014
Visteon Global Technologies, Inc.	USA	A patent license agreement for fuel valves.	Nov. 20, 2001 - Aug. 24, 2010
Intier Automotive Interiors of America	USA	A patent and expertise license agreement for urethane spray surfaces	Nov. 18, 2002 - May 10, 2014

Technical Assistance Contracts

(As of Mar, 31, 2010)

Company	Country	Contract	Period
Stant Manufacturing, Inc.	USA	An expertise license agreement for conductive fuel caps	Nov. 17, 1998 - Dec. 21, 2018
Magna Aster Fuel Systems	Germany	A patent license agreement for conductive fuel caps.	Feb. 26, 2004 - Dec. 21, 2018
Orbitronics Co., Ltd.	Pakistan	An expertise license agreement for steering wheels	Dec. 29, 2006 - Dec. 28, 2014
Pong Codan Rubber (M) Co., Ltd.	Malaysia	A technological licensing agreement on weather-strips	Jul. 16, 2007 - Jul. 15, 2012

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Automotive Parts Business	29,300	54,400	49,300
Non-Automotive Parts Business	4,900	3,700	3,800
Group	34,300	58,200	53,100

Automotive Parts Business
-The Company invested in projects to renew, rationalize, and conserve energy so as to enhance productivity. It also spent to build up a solid R&D structure in order to develop new products and   production technologies aimed at future growth, and to maintain/preserve  the environment.

Investments in Japan

-The Company will largely increase its production capacity for light-emitting diodes (LEDs). The Company is investing approximately 4 billion yen during this fiscal year so as to expand its capacity by up to 80 percent. The Company intends to continue the same level of investments in 2010 onwards with a goal of tripling its production volume in FY2012 from that in FY2009. At the same time, the Company will work on introducing LEDs to headlight systems by FY2012. The Company will develop its LED business, positioning it as one of its fast growing areas. It is projecting sales at its LED Division to account for more than 10 percent of its overall revenue in FY2010. (From an article in the Nikkan Jidosha Shimbun on Jan. 27, 2010)

Capital Investment Plan (FY2010)

-The Company plans to invest 51,000 million yen to construct and expand facilities company-wide. The investment in the automotive part business is expected to be 40,500 million yen and this will be invested in production facilities and dies.