Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change(%)	Factor
Sales	70,015	93,263	(24.9)	-Although the Company maintained a  high rate of growth in China, sales decreased year-on-year due to reduced production volumes at its customers' plants in Japan and North America. The decline was also attributable to losses incurred from the appreciation of the yen.
Operating income	1,280	384	233.3	-
Ordinary income	1,209	(449)	-	-
Current net income	(757)	(3,556)	-	-

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

 

Outlook for FY2010

(in millions of JPY)

	FY2010	FY2009	Rate of Change(%)
Sales	78,000	70,015	11.4
Operating income	2,100	1,280	64.1
Ordinary income	2,000	1,209	65.4
Net income	1,600	(757)	-
Investment Expenditure	3,834	2,458	56.0

Sales by Geographic Area

(in millions of JPY)

	FY2010	FY2009	Rate of Change(%)
Japan	39,235	37,935	3.4
North America	26,446	21,352	23.9
Asia	12,319	10,728	14.8

Sales by Product

(in millions of JPY)

	FY2010	FY2009	Rate of Change(%)
Steering wheels	13,791	11,775	17.1
Airbags	32,538	28,575	13.9
Resin components	31,648	29,611	6.9
Others	23	54	(57.4)

Sales by Major Customer

(in millions of JPY)

	FY2010	FY2009	Rate of Change(%)
Honda Group	33,252	27,766	19.8
Nissan Group	42,873	40,013	7.1
Suzuki and other companies	1,875	2,236	(16.1)

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Safety components	731	867	1,009
Resin components	603	862	849
Overall	1,334	1,729	1,859

R&D Structure

-Research and development activities are mainly conducted at the R&D Division, the Designing Division 1, the Designing Division 2, and the experimental laboratory of Neaton Auto Products Mfg., Inc. in the U.S.A. In total, 148 employees are engaged in research and development activities.

R&D Facilities

Technical center	Fujinomiya City, Shizuoka Pref.
Technical center 1	Fujinomiya City, Shizuoka Pref.
Technical center 2	Fuji City, Shizuoka Pref.

R&D Activities

Safety Components
<Steering products>
-The Company is working on developing magnesium cored bar and low specific gravity urethane to reduce vehicle weight and achieve a higher level of performance in terms of lower by introducing a floating mechanism. It is also developing higher quality products such as airbag covers with metallic separate emblem, steering wheels offering a superior sense of feel, and high-grade wood-tone decorative steering wheels.
-The Company is making efforts to reduce environmental impact by developing cleaner inflator gas and reducing the use of organic solvents in urethane, coating materials, and leather in the production process.

<Passenger seat airbag modules>
-In order to create airbag modules without any seams, the Company developed hard-material airbags which eliminated the tearing process that occurs in conventional airbags. In response to the demand for surface embellishments, the Company developed its proprietary NPSS (Nihon Plast Soft Surface) and NPFS (Nihon Plast Foamed Surface) processing methods, which are based on the urethane RIM processing method. It also worked on developing a processing method that makes products feel even softer to the touch; and enhanced its product mix of integrated panels for airbags, for which demand is growing.
-The Company also developed a proprietary design structure for air bags, i.e., that incorporates folds, aiming to reduce the possibility of damage and injury.

<Side impact airbag modules>
-The Company worked on developing curtain airbags which provide long lasting protection based on sealing technology in which pressure during overturns is applied to the sewn part. The Company also developed knee airbags which protect occupants' knees.
-In development activities engaged in manufacturing methods, the Company finished developing a machine that automatically folds curtain bags. It also improved the performance of all its airbags mounted on vehicles, as well as streamlined the manufacturing processes used to make these airbags.

Resin Components
<Exterior resin products>
-The Company developed fender protectors that are made through super-fine injection molding as a means to further advance developments in injection-molding larger parts. It also developed a flexible rubber integrated cover cowl top that is made through a process that involves two-color injection molding based on a mold designed incorporating a slide. This raised the level of product quality and eliminated one process in the production process.

<Interior resin products>
-The Company improved its products' features by designing a louver with a mechanism that enables the louver to shut completely. It also developed a centralized mechanism for ventilators, which diffuses the switching; a part that controls air; and also a ventilator that was made much thinner than conventional ones. It is also developing technology to streamline production, with one example being an automatic assembly bench.
-The Company responded to the demand for low-cost, high-quality resign panels by developing various decorating technologies. These included a processing method that gives the surface of seat cushions a softer touch, and a processing method that can produce upholstered pillars without the need for a bonding process. It also developed glow boxes, consoles, and other products that incorporate highly functional designs while integrating multiple components. This is a feature which is being required more and more.

Licensing of Technology

(As of Mar. 31, 2010)

Name	Country	Contract	Period
Neaton Auto Products Mfg., Inc.	U.S.A.	Designing, testing, production, and inspection of automotive parts	Jan. 2010 - Dec. 2010

Business Alliance

(As of Mar. 31, 2010)

Name	Country	Contract	Period
MollerGroup GmbH & Co.KG	Germany	Development, design, and production of automotive interior and exterior resin parts	Jan. 2010 - Dec. 2010
Calsonic Kansei	Japan	Development, design, and production of automotive interior and exterior resin parts	Sep. 2009 - Sep. 2010

Investment Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Safety components	1,075	3,610	4,529
Resin components	1,383	2,764	3,740
Others	0	0	10
Overall	2,458	6,374	8,280

- The Company invested in new equipment mainly to deal with vehicle model changes.
-In the Safety Components Division, the Company made a capital investment to respond to vehicle model changes and to win new orders.
-In the Resin Components Division, the Company made a capital investment in molds to respond to vehicle model changes.

Major New Facilities

(As of Mar. 31, 2010)

Company	Plant	Details	Planned amount of investment (in millions of JPY)	Start	End
Fuji Plant	Shizuoka, Japan	Facilities for producing steering wheels and airbags	198	Apr. 2010	Mar. 2011
Isezaki Plant	Gunma, Japan	Facilities for producing airbags and resin components	565	Apr. 2010	Mar. 2011
Kyushu Plant	Fukuoka, Japan	Facilities for producing steering wheels, airbags, and resin components	234	Apr. 2010	Mar. 2011
Technical center	Shizuoka, Japan	Facilities for testing and researching steering wheels, airbags, and resin components	43	Apr. 2010	Mar. 2011
Wuhan Plast Auto Parts Co., Ltd.	Hubei, China	Facilities for producing steering wheels	818	Jan. 2010	Dec. 2010
Nihon Plast Mexicana S.A.de C.V.	Queretaro, Mexico	Facilities for producing steering wheels and resin components	497	Jan. 2010	Dec. 2010