Financial Overview

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	Rate of Change (%)	Factor
Sales	116,756	94,164	24.0	1)
Operating income	1,480	(383)	-	-
Ordinary income	1,632	(461)	-	-
Net income	1,052	(3,612)	-	-

1) Factor by Geographic Area
<Japan>

-Sales totaled JPY 39,579 million, up 0.9 percent from the previous year's result, due to an increase in vehicle production at its major customers. Operating income increased 18.8 percent year-on-year to JPY 1,770 million due to a gain in sales and the dissolution of a loss-making subsidiary.

<North America>
-Sales climbed 34.7 percent year-on-year to JPY 51,336 million due to growth in exchange gains and increased production at major customers. Operating loss totaled JPY 2,833 million, decreasing from the previous year's JPY 3,762 million due to lower delivery costs that helped reduce deficit.

<China>
-Sales totaled JPY 20,701 million, up 40.9 percent year—on-year thanks to growth in exchange gains and increased production at major customers. Operating income reached JPY 2,140 million, up 83.1 percent year-on-year due to increased sales.

<Southeast Asia>
-Sales totaled JPY 5,108 million, up 140.5 percent year-on-year thanks to growth in exchange gains and increased production at major customers. Operating income, however, fell 59.0 percent year-on-year due mainly to rising materials costs as a result of the Company's realigning its product array.

Outlook for FY ending Mar. 2015

(in million JPY)

	FY ending Mar. 31, 2015 (Forecast)	FY ended Mar. 31, 2014 (Actual results)	Rate of Change (%)
Sales	123,000	116,756	5.3
Operating income	3,500	1,480	136.5
Ordinary income	3,300	1,632	102.2
Net income	1,700	1,052	61.6

-Overall sales are expected to increase 5.3 percent year-on-year. Domestic sales are projected to fall year-on-year, but the drop is likely to be more than offset by an expected production increase at customers' plants in North America.

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

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Safety components	1,168	855	914
Resin components	525	468	727
Total	1,694	1,324	1,641

R&D Structure

-The Company's R&D organization consists of the following functions staffed by a total of 173 members:

• Japan: Technical Center (Shizuoka Prefecture) with the following departments, advanced development, interior/exterior systems, testing, and new-product technology
• In North America: at Neaton Auto Products Manufacturing Inc., the Neaton Auto Technical Center (NATC)
• China: Technical Center established in 2011

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.
-The Company is developing environmentally friendly and recyclable materials. It is working on reducing the use of organic solvents in urethane materials, airbag fabric, coating materials, and leather materials.

<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
-The Company improved the functionality of consoles and glove boxes. It also developed and commercialized new interior panels by adding various decorative techniques to its advanced resin molding technology.

Technology Licensing-out Agreement

(As of Mar. 31, 2014)

Name	Country	Contract	Period
Neaton Auto Products Manufacturing Inc.	U.S.A.	Designing, testing, production, and inspection of automotive parts	Jan. 2014 - Dec. 2014
Nihon Plast (Zhongshan) Co., Ltd.	China	Designing, testing, production, and inspection of automotive parts	Jan. 2014 - Dec. 2014

Business Alliance

(As of Mar. 31, 2014)

Name	Country	Contract	Period
MollerGroup GmbH & Co.KG	Germany	Development, design, and production of automotive interior and exterior resin parts	Jan. 2014 - Dec. 2014
Calsonic Kansei	Japan	Development, design, and production of automotive interior and exterior resin parts	Sep. 2013 - Sep. 2014

Investment Expenditure

(in million JPY)

	FY ended Mar. 31, 2014	FY ended Mar. 31, 2013	FY ended Mar. 31, 2012
Japan	1,817	1,861	1,672
North America	2,521	2,181	1,916
China	2,088	1,003	1,264
Southeast Asia	253	312	567
Total	6,681	5,358	5,421

-During FY ended Mar. 2014, the Company invested in new equipment mainly to deal with vehicle model changes.

-The Company plans to spend JPY 6,834 million as capital expenditure during FY ending Mar. 2015.

Planned Capital Investment

(As of Mar. 31, 2014)

Company	Plant	Details	Planned amount of investment (in million JPY)	Start	End
Fuji Plant	Shizuoka, Japan	Facilities for producing safety products and resin components	154	Apr. 2014	Mar. 2015
Isezaki Plant	Gunma, Japan	Facilities for producing safety products and resin components	964	Apr. 2014	Mar. 2015
Kyushu Plant	Fukuoka, Japan	Facilities for producing safety products and resin components	49	Apr. 2014	Mar. 2015
Technical center	Shizuoka, Japan	Facilities for testing and researching safety products and resin components	244	Apr. 2014	Mar. 2015
Nihon Plast (Wuhan) Co., Ltd.	Hubei, China	Facilities for producing safety products and resin components	1,141	Jan. 2014	Dec. 2014
Nihon Plast (Zhongshan) Co.,Ltd.	Guangdong, China	Facilities for producing safety products and resin components	999	Jan. 2014	Dec. 2014
Nihon Plast (Thailand) Co., Ltd.	Rayon, Thailand	Facilities for producing safety products and resin components	922	Jan. 2014	Dec. 2014