Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of change (%)	Factors
Sales	102,206	82,018	24.6	1)
Operating Profit	9,268	4,885	89.7	-
Ordinary profit	9,159	4,713	94.3	-
Current net profit	4,903	1,841	166.3	-

Factors
1)
<Japan>
- Production volume at each automaker decreased following the termination of the eco-car incentive program in the second half of the year. Production on a full year basis, however, increased from the previous term supported by a recovery in exports. Thanks to the production gain and to strong sales of new vehicles at home and abroad, the Company enjoyed growth in both sales and profit.

<North America>
- Sales and profit increased in North America due to a recovery in vehicle production and the effects of the Company's optimizing its local operations by integrating production to Yorozu Automotive Tennessee, Inc. (YAT).

<Asia>
- Sales and profit increased year-on-year, thanks to strong vehicle production in China and Thailand.
- Yorozu Bao Mie Automotive Co.,Ltd.(G-YBM) in China achieved much-better-than-expected sales due to strong sales in inland area driven by sales incentive programs.
- Yorozu (Thailand) Co., Ltd.（YTC) enjoyed record sales, as it began supplying components for the Nissan March, production of which was fully transferred from Japan to Thailand. YTC has also won a program to supply parts for an eco friendly vehicle scheduled for release in 2012.

Contracts

- The Company won a program to supply stamped parts to Volkswagen, starting in 2012.
- The Company's major development achievements in FY2010:
In Japan, the Company started supplying front suspension members and rear beams for the Nissan Leaf electric vehicle, as well as front suspension members for the Suzuki Solio
In Asia, the Company started supplying front suspension members and rear beams for the Nissan March sold in China and Thailand
In North America, the Company started supplying rear suspension members for the Honda Odyssey sold in the U.S.A.
Awards

Awards

- Yorozu Mexicana S.A. de C.V. (YMEX) received quality awards from both Nissan North America and Nissan Mexico. It also won the QD (Quality and Delivery) award from Mexico Honda for the fourth straight year since 2007 when it started supplying products to the automaker's Mexican unit.

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	1,473	1,353	1,722

R&D Structure

- With the aim of improving its development capability and shorten development lead-time, the company is going to transfer and integrate its development and production engineering operations, which include prototyping and testing functions, to Yorozu Tochigi, its production base. 

R&D Activities

-The Company developed suspension components for new vehicle models by using new materials and introducing innovative designs and production methods. It has applied for a patent for the new technology.

Technological Contracts

(As of Mar. 31, 2011)

Name	Country	Contract coverage	Period
ThyssenKrupp Talent Limited	UK	The Memorandum covers the supply of front suspensions for the GM Ypsilon, upon which Thyseen Krupp will pay fees to Yorozu contingent upon the volume of business it wins for the suspensions.	May, 2000 - Until production of the Ypsilon in Europe is terminated
DK Austech Co., Ltd.	Korea	To license (on a non-exclusive basis) assembling and manufacturing technology and expertise on front suspension members, transverse links and rear suspensions for passenger cars manufactured at Renault Samsung. (The passenger car is known as the Teana in Japan.)	March 2, 2004 - Until production of the relevant vehicle is terminated
Auto chassis International	France	The Contract covers various business activities for rear beams for a passenger car (the YN5) manufactured by Suzuki in China. ACI is in charge of design and development of the relevant part and Yorozu in charge of production engineering, preparatory work for mass-production and production activities in China (YBM). ACI has given Yorozu a non-exclusive license.	May 1, 2005 - Until production of the relevant passenger car is terminated
Jay Bharat Maruti Ltd.	India	To sell dies and equipment to JBML relating to rear beams for the Suzuki YN4; to provide technical assistance through dispatching engineers and other means.	Seven years from January 4, 2005
		To license out non-exclusive rights to produce rear beams the Company designed and developed for the Suzuki YV4. To sell related production equipment to manufacture these products and dispatch engineers to give technical assistance.	March 1, 2009 - Until production of the relevant vehicle is terminated

Capital Investment

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	4,785	4,283	5,080

Capital investments in FY2010
- The Company invested 1,377 million yen in Japan, 827 million yen in North America, and 2,580 million yen in Asia mainly to deal with model changes

Investments Outside Japan

<India>
- The Company announced on November 9 that it will establish Yorozu JBM Automotive Tamil Nadu Private Limited, a subsidiary to manufacture automotive suspension products in India. The new company will be created in December this year through a joint investment with JBM Auto System Private Limited (Chennai, Tamil Nadu, India) in the JBM Group, to which Yorozu has been offering technology assistance. Yorozu JBM Automotive Tamil Nadu will be capitalized at 2.8 billion yen, of which 93.33 percent will be provided by Yorozu and the remaining 6.67 percent by JBM Auto System. The total investment in the new entity is planned to reach approximately 5 billion yen. When its full-scale operation begins in fiscal year 2013, sales are expected to reach approximately 2.8 billion yen with a workforce of some 300 employees. (From an article in the Nikkan Jidosha Shimbun on November. 10, 2010)

<China>
- The Company announced on Apr. 21 that it will set up a joint venture in Wuhan, China in May with Japanese trading house Mitsui & Co. and a Chinese material supplier, to manufacture and sell automobile suspensions. The Company will make a 51% investment in this second production base in China, tentatively named "Whuhan Yorozu Bao Mit Automotive Co., Ltd. (W-YBM)," placing the subsidiary under its full management control. Operations are scheduled to start in late 2011. When fully operated in 2013, the new joint venture is expected to achieve 6.6 billion yen sales with 400 employees. At that point, the Company's sales in China, combined with those of its first production base, are expected to total approx. 20 billion yen. W-YBM will be capitalized at 186 million yuan (approx. 2.45 billion yen). (From an article in the Nikkan Jidosha Shimbun on April. 22, 2010)

New Facilities

(As of Mar. 31, 2011)

Business establishment	Purpose	Planned investment (thousand yen)	Start	Planned completion
Lend-lease contract (Yorozu Tochigi Corp.)	Installing facilities for new vehicle models	245	Apr. 2011	Oct. 2011
Lend-lease contract (Yorozu Oita Corp.)	Installing facilities for new vehicle models	183	May. 2011	Nov. 2011
Lend-lease contract (Syonai Yorozu)	Installing facilities for new vehicle models	748	Apr. 2011	Dec. 2011
Yorozu Automotive Tennessee, Inc.	Installing facilities for new vehicle models	1,660	Feb. 2011	Dec. 2011
Yorozu Mexicana SA. de C.V.	Installing facilities for new vehicle models	107	Apr. 2011	Oct. 2011
Yorozu (Thailand) Co.,Ltd.	Installing facilities for new vehicle models	1,071	Jan. 2011	Dec. 2011
Yorozu Bao Mie Automotive Co.,Ltd.	Installing facilities for new vehicle models	906	May 2010	Jun. 2011
Whuhan Yorozu Bao Mit Automotive Co., Ltd.	Installing painting and other facilities	1,554	Nov. 2010	Oct. 2011
	Building new plant	897	Aug. 2010	Aug. 2011
	Installing facilities for new vehicle models	520	Mar. 2011	Oct. 2011
Yorozu JBM Automotive Tamil Nadu Pvt Ltd.	Acquiring plant site and building new plant	1,506	Feb. 2011	Apr. 2012
	Installing stamping facilities	1,002	Jun. 2011	May 2012
	Installing painting and other facilities	304	Apr. 2011	Feb. 2012