Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	Rate of Change (%)	Factor
Sales	82,168	85,467	(3.9)	-The Company's performance was negatively impacted by the reduction in production volumes at its customers and by negative currency translation due to the high evaluation of the yen.
Operating income	2,436	3,893	(37.4)	-
Ordinary income	2,397	3,787	(36.7)	-
Current net income	1,989	2,913	(31.7)	-

Business Overview

Performance by Product Line
-Operating revenue from the automotive parts division was 82,105 million yen. Among this total, steering wheels accounted for 14,127 million yen; and airbags, 34,525 million yen. These are both automotive-safety products. The automotive plastics division generated 33,451 million yen in sales, while the other business operations generated 62 million yen.

By Region
<Japan>
-Operating revenue, which was 46,749 million yen, increased by 3.5% year-on-year due to the greater number of vehicle units produced by OEMs, the Company's customers; and due to winning program business for new-model vehicles. Operating profit significantly increased year-on-year, up 68.6% to 2,236 million yen, due to the increase in operating revenue as well as to the reduction in costs for labor and fixed expenses.

<North America>
-Operating revenue was down 13.2% year-on-year, to 23,151 million yen, not only due to negative currency translation but also to the reduction in vehicle units produced by the Company's customers (OEMs) in the region. The region reported an operating loss of 1,585 million yen as a result of lower revenue and higher labor and operating expenses.

<China>
-In China, operating revenue was 11,557 million yen for the year, which is a 7.9% decrease compared to that of the previous year and partly the result of negative currency translation. Operating profit fell by a huge amount. It was 1,180 million yen, a 40.0% decrease year-on-year due to lower revenue, higher labor costs, and other factors. .

<Other Business Operations>
-The operating revenue generated by the Company's other business operations fell 35.2% year-on-year to 711 million yen. This was the result of lower production volumes by customers. On the other hand, operating profit (547 million yen) was 53.2% higher year-on-year, thanks to the successful rationalization activities undertaken by the Company.

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Safety components	914	899	731
Resin components	727	683	603
Overall	1,641	1,582	1,334

R&D Structure

- The Company conducts R&D activities mainly at its Research and Development Division, Safety Development Division, Interior and Exterior Development Division, and Production Engineering Division in Japan. In North America they are handled at the Development Center of Neaton Auto Products Mfg.

-The Company established a design office as a new R&D function in China, within the premises of Nihon Plast (Zhongshan) Co., Ltd. The design office has already started operating.

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, as well as steering wheels with a heater to enhance product performance. It is also developing high 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. In the area of cover cowl top, the Company developed a lip-integrated structure through simplifying the bonding surface with glass to stabilize product quality. It also achieved commercialization of blow-molded resonators, which contribute to reducing noise.

<Interior resin products>
-The Company enhanced its product lineup by designing a louver with a mechanism that enables the louver to shut completely.
-The Company responded to the demand for low-cost, high-quality resign panels by developing various decorating technologies. These included an in-mold processing method that can produce upholstered pillars without the need for a bonding process, and a metal decorating method using film evaporation coating technology. It also developed glow boxes, consoles, and other products that incorporate highly functional designs while integrating multiple components.

Licensing of Technology

(As of Mar. 31, 2012)

Name	Country	Contract	Period
Neaton Auto Products Mfg., Inc.	U.S.A.	Designing, testing, production, and inspection of automotive parts	Jan. 2012 - Dec. 2012
Zhongshan Plast Co., Ltd.	China	Designing, testing, production, and inspection of automotive parts	Jan. 2012 - Dec. 2012

Business Alliance

(As of Mar. 31, 2012)

Name	Country	Contract	Period
MollerGroup GmbH & Co.KG	Germany	Development, design, and production of automotive interior and exterior resin parts	Jan. 2012 - Dec. 2012
Calsonic Kansei	Japan	Development, design, and production of automotive interior and exterior resin parts	Sep. 2011 - Sep. 2012

Investment Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011	FY ended Mar. 31, 2010
Japan	1,672	1,262	-
North America	1,916	864	-
China	1,264	274	-
Others	567	409	-
Overall	5,421	2,811	2,458

Major investments in FY ended Mar. 31, 2012
- The Company invested in new equipment mainly to deal with vehicle model changes.

Major New Facilities

(As of Mar. 31, 2012)

Company	Plant	Details	Planned amount of investment (in millions of JPY)	Start	End
Fuji Plant	Shizuoka, Japan	Facilities for producing steering wheels and airbags	205	Apr. 2012	Mar. 2013
Isezaki Plant	Gunma, Japan	Facilities for producing airbags and resin components	755	Apr. 2012	Mar. 2013
Kyushu Plant	Fukuoka, Japan	Facilities for producing steering wheels, airbags, and resin components	89	Apr. 2012	Mar. 2013
Technical center	Shizuoka, Japan	Facilities for testing and researching steering wheels, airbags, and resin components	171	Apr. 2012	Mar. 2013
Neaton Rome Inc.	Georgia, U.S.A.	Facilities for testing and researching steering wheels, airbags, and resin components	1,252	Jan. 2012	Dec. 2012
Neaton Auto Products Mfg., Inc.	Ohio, USA	Facilities for producing steering wheels, airbags, and resin components	874	Jan. 2012	Dec. 2012
Nihon Plast (Wuhan) Co., Ltd.	Hubei, China	Facilities for producing steering wheels and airbags	784	Jan. 2012	Dec. 2012