Financial Overview

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	Rate of Change (%)	Factor
Sales	94,164	82,168	14.6	-Sales rose because of increased production levels at its customers in North America and China.
Operating income	(383)	2,435	-	-Operating income was lower because of production issues that rose in North America connected with the launch of new-model vehicles.
Ordinary income	(461)	2,396	-	-
Current net income	(3,612)	1,989	-	-The Company posted a huge expense in allocating reserves for product warranties against product recalls at its customers.

Business Overview

Performance by Product Line
-Operating revenue from the automotive parts division was 94,164 million yen (a 14.6% year-on-year increase). Among this total, steering wheels accounted for 15,898 million yen (a 12.5%year-on-year increase); and airbags, 40,200 million yen (a 16.4%year-on-year increase). The automotive plastics division generated 38,033 million yen (a 13.6% year-on-year increase) in sales, while the other business operations generated 33 million yen (a 47.6% year-on-year decrease).

By Region
<Japan>
-Operating revenue in Japan fell 16.1% year-on-year to 39,228 million yen because of lower production volumes at its customers. Operating revenue also fell year-on-year, to 1,489 million yen, a 33.4% drop.

<North America>
-Operating revenue rose significantly year-on-year to 38,125 million yen, which was a 64.7% increase, because of greater production levels at its customers. However, the region suffered an operating loss of 3,762 million yen (compared to a loss of 1,584 million yen the previous year), due to higher labor costs and expenses stemming from production problems.

<China>
-Operating revenue rose significantly year-on-year to 14,688 million yen, which was a 27.1% increase, because of greater production levels at its customers. Operating profit fell 1% year-on-year to 1,168 million yen, due to the rising prices of materials.

<Southeast Asia>
-Operating revenue saw a huge increase year-on-year to 2,123 million yen, which was a 198.6% increase, because of greater production levels at local customers. Operating profit also increased year-on-year by 12.6% to 616 million yen, thanks to the significant rise in sales.

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

R&D Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Safety components	855	914	899
Resin components	468	727	683
Overall	1,324	1,641	1,582

R&D Structure

-The Company's R&D organization consists of the following functions:

• In Japan: The Technical Center with the following departments, safety development, exterior/interior development, research, and new-product technology
• In North America: at Neaton Auto Products Manufacturing Inc., the Neaton Auto Technical Center (NATC)

In 2011, the Company also established a technical center in China, creating a global R&D organization staffed by 173 members.

R&D Facilities

Technical center	Fujinomiya City, Shizuoka Pref.
Technical center 2	Fujinomiya City, Shizuoka Pref.
Technical center 3	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 engaged in R&D activities so as to enhance safety by making lighter weight and more compact airbags designed to fit in steering-wheel centers/columns, in addition to incorporating these to create a complete steering wheel package.

<Passenger seat airbag modules>

-The Company is working to develop its own proprietary modules that achieve balanced performance in terms of enhancing occupant protection on one hand and reducing injury on the other.

-The Company commercialized two types of seamless lids that enhance the commercial appeal of cabin interiors. The hard type, NPHS (Nihon Plast Hard Surface), was made through tear processing, and the soft type, NPSS (Nihon Plast Soft Surface, was made by using urethane molding technology.
-Focusing on the need to make products lighter in weight and more compact, the Company is developing highly functional, high-grade products, applying fusion technology on safety and plastics.

<Side impact airbag modules>
-The Company is developing the optimum technology in the following areas: Airbag pressure-maintenance mechanisms capable of responding to all sorts of collision scenarios, proprietary mechanisms suited to vehicle-body structures/designs, and airbag folding/crease technology making safety possible even in tight spaces.

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.
-In addition to functional products such as air-spoilers and deflectors that help improve fuel efficiency by reducing air resistance, it also commercialized blow-molded resonators, which help reduce noise.

<Interior resin products>

-Ultra thin and highly functional ventilators

Technology Licensing-out Agreement

(As of Mar. 31, 2013)

Name	Country	Contract	Period
Neaton Auto Products Manufacturing Inc.	U.S.A.	Designing, testing, production, and inspection of automotive parts	Jan. 2013 - Dec. 2013
Nihon Plast (Zhongshan) Co., Ltd.	China	Designing, testing, production, and inspection of automotive parts	Jan. 2013 - Dec. 2013

Business Alliance

(As of Mar. 31, 2013)

Name	Country	Contract	Period
MollerGroup GmbH & Co.KG	Germany	Development, design, and production of automotive interior and exterior resin parts	Jan. 2013 - Dec. 2013
Calsonic Kansei	Japan	Development, design, and production of automotive interior and exterior resin parts	Sep. 2012 - Sep. 2013

Investment Expenditure

(in millions of JPY)

	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012	FY ended Mar. 31, 2011
Japan	1,861	1,672	1,262
North America	2,181	1,916	864
China	1,003	1,264	274
Others	312	567	409
Overall	5,358	5,421	2,811

Major investments in FY ended Mar. 31, 2013
- The Company invested in new equipment mainly to deal with vehicle model changes.

Major New Facilities

(As of Mar. 31, 2013)

Company	Plant	Details	Planned amount of investment (in millions of JPY)	Start	End
Fuji Plant	Shizuoka, Japan	Facilities for producing safety products and resin components	899	Apr. 2013	Mar. 2014
Isezaki Plant	Gunma, Japan	Facilities for producing safety products and resin components	1,225	Apr. 2013	Mar. 2014
Kyushu Plant	Fukuoka, Japan	Facilities for producing safety products and resin components	31	Apr. 2013	Mar. 2014
Technical center	Shizuoka, Japan	Facilities for testing and researching safety products and resin components	93	Apr. 2013	Mar. 2014
Nihon Plast Mexicana S.A.de C.V.	Queretaro, Mexico	Facilities for producing safety products and resin components	1,917	Jan. 2013	Dec. 2013
Nihon Plast (Zhongshan) Co.,Ltd.	Guangdong, China	Facilities for producing safety products and resin components	1,904	Jan. 2013	Dec. 2013
Nihon Plast (Wuhan) Co., Ltd.	Hubei, China	Facilities for producing safety products and resin components	716	Jan. 2013	Dec. 2014