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Briefing on Business Results for FY11/3 and Management Strategy

Presentation Contents

1. Overview of Business Activities 2. Marketing Information

MITSUBA Corporation JUNE 2011 Briefing on Business Results for FY11/3 2

Overview of Business Activities

I. Industry trends II. Results for FY11/3 III. The 9th Mid-term Management Plan Briefing on Business Results for FY11/3 3

《Trend of Consolidated/Non-Consolidated Sales and Operating Income》 250,000 (JPY in million) 15,000 225,440 209,973 208,162

200,000 10,000 175,522 10,462 150,322 150,000 5,000 123,445 2,176 3,841 3,495

100,000 127,184 0 559 -348 111,691 50,000 -7,500 -5,000

-8,928 0 -10,000 FY08/3 FY09/3 FY10/3 FY11/3 （63ｔｈ） （64th） （65th） （66th） Consolidated sales Non-consolidated sales Consolidated operating income Non-consolidated operating income Briefing on Business Results for FY11/3 4 1．Industry trends （1）Actual Sales 《Automobile》 (Unit: ten thousand cars) FY08/3 FY09/3 FY10/3 FY11/3 Increase/ [Automobile] (Actual) (Actual) (Actual) (Actual) Decrease

Japan 532 470 488 460 ▲28

The Americas 2,288 2,035 1,725 1,887 + 187

Europe 2,278 2,160 1,853 1,773 ▲65

Asia 695 666 692 852 + 162

China 879 938 1,364 1,806 + 442

Others 199 209 196 222 + 9

Global Total 6,871 6,478 6,318 7,000 + 682

Note: January to December except for ＊ Americas: 13 countries ＊ Europe: 36 countries Briefing on Business Results for FY11/3 5

（2）Actual Production 《Automobile》 (Unit: ten thousand cars) FY08/3 FY09/3 FY10/3 FY11/3 Increase/ [Automobile] (Actual) (Actual) (Actual) (Actual) Decrease

Japan 1,179 999 887 899 + 13

The Americas 1,939 1,710 1,261 1,681 + 409

Europe 2,260 2,138 1,632 1,924 + 229

Asia 944 958 859 1,160 + 284

China 888 927 1,379 1,827 + 447

Others 187 185 175 226 + 27

Global Total 7,397 6,917 6,194 7,770 + 1,462

Note: January to December except for Japan ＊ Americas: 13 countries ＊ Europe: 36 countries Briefing on Business Results for FY11/3 6

（3）Actual Sales 《Motorcycle》 (Unit: ten thousand cars) FY08/3 FY09/3 FY10/3 FY11/3 Increase/ [Motorcycle] (Actual) (Actual) (Actual) (Actual) Decrease

Japan 66 50 37 38 + 1

Global Total 4,273 4,629 4,444 5,096 + 616

Note: January to December except for Japan ＊ Americas: 13 countries ＊ Europe: 36 countries Briefing on Business Results for FY11/3 7

（4）Actual Production 《Motorcycle》 (Unit: ten thousand cars) FY08/3 FY09/3 FY10/3 FY11/3 Increase/ [Motorcycle] (Actual) (Actual) (Actual) (Actual) Decrease

Japan 156 108 60 59 ▲ 1

The Americas 196 227 174 192 + 18

Europe 158 145 98 96 ▲ 2

Asia 1,834 2,049 1,913 2,509 + 442

China 1,861 2,048 2,083 2,080 ▲ 3

Others 200 195 291 310 + 9

Global Total 4,405 4,772 4,619 5,249 + 630

Note: January to December except for Japan ＊ Americas: 13 countries ＊ Europe: 36 countries Briefing on Business Results for FY11/3 8 2．Results for FY11/3 （1）Consolidated Operating Results for FY11/3 JPY in million Consolidated Results for FY10/3 Results for FY11/3 Increase/Decrease Net sales 175,522 208,162 + 32,640 Operating income 2,176 10,462 + 8,286 Ordinary income 1,874 9,445 + 7,571 Net income ▲ 3,247 3,655 + 6,902

Outline JPY in million

Japan 97,800 ⇒ 105,548 （+ 7,748） Europe 6,594 ⇒ 7,925 （+ 1,331） Net sales The Americas 34,412 ⇒ 44,716 （+ 10,304） Asia 36,715 ⇒ 49,972 （+ 13,257）

Operating Japan 1,097 ⇒ 4,298 （+ 3,201） Europe ▲174 ⇒ 99 （+ 273） income The Americas ▲1,828 ⇒ 897 （+ 2,725） Asia 3,011 ⇒ 5,140 （+ 2,129）

Ordinary ■Non-operating income +¥ 2,444 （Equity in income of affiliates ¥753, Interest and dividend income ¥418） income ■Non-operating expenses ▲¥3,461 （Interest expenses ▲¥1,176, Foreign exchange loss ▲¥1,486）

Net ■Extraordinary losses ▲¥2,666 （Business restructuring costs ▲¥1,343, Losses on earthquake▲¥766） income ■Income taxes ▲¥2,043 ■Minority interests in subsidiaries ▲¥1,080 Briefing on Business Results for FY11/3 9

（2）Non-Consolidated Operating Results for FY11/3 JPY in million Non-Consolidated Results for FY10/3 Results for FY11/3 Increase/Decrease Net sales 111,691 127,184 + 15,493 Operating income 559 3,495 + 2,936 Ordinary income 1,281 3,566 + 2,285 Net income ▲580 1,344 + 1,924

Outline JPY in million

Product sales 105,308⇒118,315 （＋13,007） Royalty, etc. 2,211 ⇒ 3,614 （＋1,403） Net sales Facility sales 1,816 ⇒ 2,944 （＋1,128） Others 2,356 ⇒ 2,311 （▲45）

Operating Material costs 70,349 ⇒ 77,523 （▲7,174） Labor costs 21,710 ⇒ 24,637（▲2,927） income Facility costs 1,488 ⇒ 2,695 （▲1,207） Expenses, etc. 17,585 ⇒ 18,833（▲1,248）

Ordinary ■Non-operating income ＋¥1,894 （Dividend income ¥1,283） income ■ Non-operating expenses ▲¥1,823 （ Interest expenses ▲¥880 , Foreign exchange loss ▲¥673）

Net ■ Extraordinary losses ▲¥2,061（ Losses on earthquake ▲¥728 , Business restructuring costs ▲¥1,328） income ■ Income taxes ▲¥161 Briefing on Business Results for FY11/3 10

*Factor analysis of changes in consolidated ordinary income (JPY in million) Ordinary income +7,571million yen

2,498 ▲ 1,619 ▲ 1,567 Raw material price 8,896 Cost cutting increases ▲ 637 Effects of exchange rate measures fluctuations 9,445 Others Copper, iron and steel, Increase in foreign-exchange neodymium magnet losses -1,486 Increase of equity in income of affiliates 266 US Dollar 93.62 yen → 87.83 yen Euro 130.40 yen → 116.58 yen

Difference in exchange rates between sales and payment receipts 1,874 Changes in sales/sales composition, etc. FY10/3 FY11/3 Briefing on Business Results for FY11/3 11

*Factor analysis of changes in non-consolidated ordinary income (JPY in million) Ordinary income +2,285 million yen

1,766 ▲ 1,055

▲ 725 Raw material price increases ▲ 651 Cost cutting Effects of 2,950 measures exchange rate fluctuations Others 3,566 Increase in foreign- Copper, iron and steel, exchange neodymium magnet losses -610

US Dollar 93.62 yen → 87.83 yen Euro 130.40 yen→ 116.58 yen 1,281 Changes in Difference in exchange rates between sales and sales/sales payment receipts composition, etc.

FY10/3 FY11/3 Briefing on Business Results for FY11/3 12

（3）Consolidated Sales Performance for Major Clients JPY in million FY08/3 FY09/3 FY10/3 FY11/3 Increase/ Share (Actual) (Actual) (Actual) (Actual) Decrease

Honda 74,300 65,200 48,700 57,300 8,600 28.9％ automobile 28,700 28,800 25,700 36,400 10,700 18.3％ motorcycle

Hondas in total 103,000 94,000 74,400 93,700 19,300 47.2％

Nissan/Renault 43,900 32,700 29,800 40,200 10,400 20.3％

Others 72,100 75.300 53,200 64,500 11,300 32.5％

Total 219,000 202,000 157,400 198,400 41,000 100.0％ Note: Only results in the Transportation Equipment segment are totaled.

(*)Other main customers (breakdown of 64,500 million yen) Fuji Heavy Industries 6.6% 3.4% 2.0% Motors 3.8% 2.2% GM 1.8% Briefing on Business Results for FY11/3 13

（4）Effect of Foreign Exchange Rate on Operating Income (Loss)

Results for FY11/3 Effect on operating income (loss) Supposed exchange rate Actual exchange rate for for a rate fluctuation of one (1) for yen yen yen (in millions of yen per year)

US Dollar 88.00 87.83 241

Euro 130.00 116.58 19

（5） Capital Expenditures (JPY in million)

Results for Results for Increase/ FY10/3 (Actual) FY11/3 (Actual) Decrease [ Capital Expenditures ] 9,794 9,237 ▲557

[ Depreciation] 12,637 10,906 ▲1,731 Briefing on Business Results for FY11/3 14 3．The 9th Mid-term Management Plan （1）Environmental Awareness Changes in the automobile industry

„ Market expansion in emerging nations (expansion of new middle-class consumers) --- BRICs, VISTA ⇒ Increase of global automobile sales/expansion of market for inexpensive/very inexpensive automobiles

„ Energy, global environment ⇒ Shift from fossil fuels to alternative fuels/EV, HEV, PHEV/downsizing, weight reduction

„ Domestic market ⇒ Aging population with declining birthrate/changes in consumption patterns (growing disinterest among young people in owning cars)/measures to restore quake-stricken areas

„ Delay in economic recovery/the yen’s appreciation (80 yen to the dollar) ⇒ Focus of market is shifting to emerging countries/automotive body manufacturers are shifting production bases overseas

♦ Avoiding risk of concentrating production bases and supply sources⇒Acceleration of production shift from Japan to overseas/diversification of supply sources Briefing on Business Results for FY11/3 15

（2）The 9th Mid-term Management Policy

Growing Globally Slogan ∼ Reinforcing Consolidated Management ∼

1. Develop products and parts that have overwhelming QCD competitiveness to achieve sales expansion. Growth

2. Improve product quality to win confidence of market and Quality customers. Management Policy 3. Reform consolidated cost structure to ensure stable profits. Cost

4. Change approach to work to reduce lead times of all work Process / Human processes on a global basis. Resources Briefing on Business Results for FY11/3 16

（3）Top Priorities of the 9th Mid-term Management Plan 1. Prepare for growth by responding to polarization (small-size cars, environment- friendly cars, luxury cars) plus something extra. (1) Small-size cars (inexpensive cars, very inexpensive cars) ⇒ Accommodate emerging markets. (2) Accommodate environmental cars and luxury cars (3) Accommodate new growth fields (health, nursing care) 2. Use our management resources (1) Improve BEP and implement business restructuring c Review balance among sales, material costs, labor costs, and expenses. d Continue with business restructuring. 3. Risk management (1) Risk management and decentralization of production and sourcing. 4. Increase productivity substantially to accomplish both priorities described in 1 and 2 above simultaneously.

Continue using our management resources and shift the focus to preparing for growth. Briefing on Business Results for FY11/3 17

♦Effects of the Great East Japan Earthquake

[Item] [Details]

„ Sales: Non-consolidated sales in March fell short of projection by 20% Effects on earnings „ Losses on earthquake: ¥766 million (Transfer of fixed costs due to shutdown: ▲ ¥290 million) (Cost to restore original state: ▲¥476 million)

„ Number of suppliers’ plants in disaster-hit areas: 72 (number of damaged plants: 24) Effects on materials and parts We have completed assessment of damage to suppliers. There are no urgent materials missing. We are taking action to ensure that there are no delays in deliveries to customers due to delivery failures in the mid-term. „ Fukushima Plant: Tamura-shi, Fukushima (41 km from the Fukushima Dai-ichi Nuclear Power Plant) Effects on domestic production bases Partially recovered on March 14, and returned to normal operation on March 22. „ Other production bases: Returned to normal operation on March 14. Effects on overseas production bases „ No effects on business results for FY11/3 „ Energy-saving measures for production: Changes in shift work schedule and operating days Responses to shortage of electricity „ Energy-saving measures for development efforts: Promote energy-conservation supply measures for experimental setup of assessment and engineering facility „ Common energy-saving measures: Promote efficiency of air-conditioning facilities, lighting fixtures and OA equipment, etc. Responses to production increases by „ Accelerate production, improve process of work, and promote outsourcing and local customers procurement. Briefing on Business Results for FY11/3 18

Marketing Information

I. Sales Expansion Plan for FY11/3 II. Promotion Results for FY11/3 III. Environmental Changes and Future Market Move IV. Mid-Term Sales Expansion Plan and Measures I-1. Sales Expansion Plan for FY11/3 19

Marketing Strategy by Region

Automobile Motorcycle

• Must win orders for global car models while proposing to win Japan orders for eco-friendly cars and compact cars. • Proposing to win orders for products for EV. • Developing and promoting value-enhanced products. • Winning order for new system products.

• Winning orders for locally-designed models by Japanese • Promoting sales expansion centering on makers. The Brazil. • Using the base in Brazil to promote business expansion in • Winning orders in the South American Americas South America. areas based on C8G3 development. • Using American makers depending on the circumstances.

• Promoting sales expansion centering on Germany and France. Europe (To collect advanced technologies and expand the Mitsuba • Promoting sales to foreign-affiliated makers. brand)

• Expanding the share in India. • Winning increased orders for cars in growing emerging • Proposing to win orders for environmental- Asia economies. friendly products. (Thai, India, Indonesia) • Promoting sales expansion in the Indonesian market.

China • Promoting sales to local makers. • Expanding share. I-2. Sales Expansion Plan for FY11/3 20

Marketing Strategy by Client

Japanese makers Expand trade areas for each automaker, win orders for 1. Propose to win orders for their global car models. inexpensive products rather than LCC. Promote development with automakers and associated Tier 1s (Accelerate new product development and competitiveness). 2. Win orders for systemized and value-enhanced Develop products with independent Tier 1 makers. products. (BLM, mechatronics, PSD) Promote sales of the developed products to others. 3. Expand development for Tier 1 Promote sales expansion in general-use and application products. market. (Power window motor, seat motor, roof motor, EPS, and new products) Overseas makers 4. Win orders for environment- Promote sales expansion centering European automakers. friendly products. Develop wiper systems with local automakers and expand (HEV- and EV-related products) trade areas in Europe. 5. Winning increased orders for Develop products with independent and global Tier 1 makers. nursing-care equipment products.

Promote sales expansion, local manufacturers mainly in China . II-1. Promotion Results for FY11/3 by Operations 21 *Shown by indexation with figures for FY11/3 set at 100. Volume Volume (Index) No.1 (Index) No.1 No.2No.2 200 Operations 159 256 Operations 300 OperationsOperations 256 159 Seatシートモータ motors Windowウォッシャ washers 60 150 36 100 100 200 100 50 100 20 100 Roofルーフモータ motors

121 100 17 145 50 77 WiperワイパSYS 26 systems 57 PowerP/Wモータ window motors 0 0 2011年3月期FY11/3 2016年3月期FY16/3 2011年3月期FY11/3 2016年3月期FY16/3 (Results)（実績） (planned)（計画） (Results)（実績） (planned)（計画） Volume Volume (Index) 275 (Index) No.4 138 No.3No.3 No.4 Relaysリレー 300 Operations 150 OperationsOperations Operations 36 Othersその他 100 20 41 Hornsホーン

200 100 18 31 FuelFPモジュール pump 100 Fanファンモータ motors 8 modules 13 219 7 28 14 100 17 50 22 ACACジェネレータ generators 43 69 EPSEPSモータ motors 27 Starter motors for2輪スタータ two-wheel 0 0 vehicles 2011年3月期FY11/3 2016年3月期FY16/3 2011年3月期FY11/3 2016年3月期FY16/3 (Results)（実績） (planned)（計画） (Results)（実績） (planned)（計画） II-2. Promotion Results for FY11/3 by Area 22 * Shown by indexation with figures for FY11/3 set at 100.

Volume (Index) 214 China中国 250 28 Asiaアジア 200

100 Europe欧州 150 84

16 100 The米州 54 Americas 55 50 1 26 Japan日本 14 14 21 0 2011年3月期FY11/3 2016年3月期FY16/3 （実績）(Results) (planned)（計画）

Japan : New orders for front wiper, rear wiper, and power window motors for mini-vehicles, EPS for SUVs and starter motors for medium-size two-wheel vehicles, etc. Orders accepted. The Americas : New orders for seat motors for SUVs and EPS motors for SUVs in North America, power window motors for sedans in South America, etc. Orders accepted. Europe : New orders for EPS motors for mini-vehicles and front wiper and power window motors for SUVs and AC generators for large-size two-wheel vehicles, etc. Orders accepted. Asia : New orders for front wiper and power window motors for mini-vehicles and new orders for starter motors and AC generators for small-size two-wheel vehicles, etc. Orders accepted. China : Power window motors and S/R motors for sedans, and front wiper, rear wiper, and window washers for vehicles used exclusively in China, etc. Orders accepted. III-1. Environmental Changes and Future Market Move 23 (mid-term) [Changes in environment for automobile]

Region Environment of the industry Japan ・ While technological development and production continue to be the foundations of manufacturing, demand for automobiles will decrease due to fewer young people and disinterest among them in owning cars, as well as the accelerated aging of the population.

The ・ While a moderate recovery trend is expected to be maintained, there is a shift in the Americas types of vehicle sold to mini-vehicles and environment-friendly cars, which will lead to a gradual increase in the market share of Japanese automobile manufacturers.

Europe ・ Although sales are expected to decline after the termination of scrap incentive programs, production of luxury cars for export mainly to the Americas and China will increase. The environment is on a recovery trend on the whole.

Asia ・ In accordance with solid growth in emerging markets, both production and sales will continue to increase.

China ・ Although sales growth is slowing due to the discontinuation of sales promotion measures and car license plate restrictions in major cities, new demand will remain brisk. III-2.Environmental Changes and Future Market Move 24 (mid-term) [Changes in environment for motorcycle]

Region Environment of the industry

Japan ・ Demand is on a declining long-term trend due to fewer young people and disinterest among young people in owning two-wheel vehicles. ・ Demand has continued to be weak due to the delay in the recovery from the Lehman shock and falling demand in the wake of the March 11 earthquake. The ・ Demand has dropped substantially in the U.S. market with few prospects of recovery. Americas ・ Demand in the Brazilian market has recovered to pre-Lehman-shock levels and will continue to expand. Europe ・ Market demand has leveled off with few prospects of recovery.

ASEAN ・ In step with economic growth, demand has increased especially in Indonesia and Vietnam.

India ・ The market has expanded to the order of 12 million units due to the economic recovery. ・ In particular, exports have expanded remarkably.

China ・ Domestic sales are increasing and exports are expanding. III-3.Environmental Changes and Future Market Trends 25 (mid-term) [Sales of Automobile] Unit: thousand cars 100,000 90,300 85,000 Othersその他 3,000 2,800 70,002 China中国 80,000 22,300 21,400 2,221 Asiaアジア 18,062 11,300 60,000 10,200 Europe欧州 8,521 22,400 20,800 40,000 17,727 South南米 6,100 6,700 America 4,903 20,000 North北米 19,000 20,000 13,967 America

4,601 4,700 4,600 Japan日本 0 2010年度FY11/3 2011年度FY12/3 2012年度FY13/3 2013年度FY14/3 2014年度FY15/3 2015年度FY16/3

Overall: (FY11/3 → FY16/3: up 20,298,000 units, 29% increase over a five-year period) Overall: (FY11/3 → FY16/3: up 20,298,000 units, 29% increase over a five-year period) • Japan: Level off on the order of 4,600,000 units. (FY11/3 → FY16/3 : down 1,000 units Almost unchanged over a five-year period) • Japan: Level off on the order of 4,600,000 units. (FY11/3 → FY16/3 : down 1,000 units Almost unchanged over a five-year period) • North America: Growth on the order of 20,000,000 units in 2015. (FY11/3 → FY16/3 : up 6,033,000 units, 43% increase over a five-year period) • North America: Growth on the order of 20,000,000 units in 2015. (FY11/3 → FY16/3 : up 6,033,000 units, 43% increase over a five-year period) • South America: Growth mainly in Brazil. (FY11/3 → FY16/3 : up 1,797,000 units, 37% increase over a five-year period) • South America: Growth mainly in Brazil. (FY11/3 → FY16/3 : up 1,797,000 units, 37% increase over a five-year period) • Europe: On a recovery trend, and will restore the 2007 level in 2015. (FY11/3 → FY16/3 : up 4,673,000 units, 26% increase over a five-year period) • Europe: On a recovery trend, and will restore the 2007 level in 2015. (FY11/3 → FY16/3 : up 4,673,000 units, 26% increase over a five-year period) • Asia: Growth will be maintained. (FY11/3 → FY16/3 : up 2,779,000 units, 33% increase over a five-year period) • Asia: Growth will be maintained. (FY11/3 → FY16/3 : up 2,779,000 units, 33% increase over a five-year period) • China: Growth will be maintained, albeit at a slower rate. (FY11/3 → FY16/3 : up 4,238,000 units, 23% increase over a five-year period) • China: Growth will be maintained, albeit at a slower rate. (FY11/3 → FY16/3 : up 4,238,000 units, 23% increase over a five-year period) III-4. Environmental Changes and Future Market Trends 26 (mid-term) [Production of Motorcycle] Unit: thousand cars

70,000 59,800 58,100 その他Others 60,000 52,488 3,700 3,600 中国China 3,101 50,000 21,100 21,000 インドIndia 40,000 20,800 ASEANASEAN 30,000 14,700 15,000 12,666 欧州Europe 20,000 The 14,400 15,100 米州 10,000 12,425 Americas 日本Japan 0 2010年度FY11/3 2011年度FY12/3 2012年度FY13/3 20FY14/313年度 2014年度FY15/3 2015年度FY16/3

Overall: (FY11/3 → FY16/3: up 7,312,000 units, 14% increase over a five-year period) Overall: (FY11/3 → FY16/3: up 7,312,000 units, 14% increase over a five-year period) • Japan: Level off on the order of 700,000 units. (FY11/3 → FY16/3 : up 127,000 units, 21% increase over a five-year period) • Japan: Level off on the order of 700,000 units. (FY11/3 → FY16/3 : up 127,000 units, 21% increase over a five-year period) • The Americas: Growth mainly in Brazil. (FY11/3 → FY16/3 : up 1,262,000 units, 66% increase over a five-year period) • The Americas: Growth mainly in Brazil. (FY11/3 → FY16/3 : up 1,262,000 units, 66% increase over a five-year period) • Europe: Level off on the order of 1,000,000 units. (FY11/3 → FY16/3 : up 32,000 units, 3% increase over a five-year period) • Europe: Level off on the order of 1,000,000 units. (FY11/3 → FY16/3 : up 32,000 units, 3% increase over a five-year period) • ASEAN: Growth mainly in India, Vietnam and Indonesia. (FY11/3 → FY16/3 : up 2,675,000 units, 22% increase over a five-year period) • ASEAN: Growth mainly in India, Vietnam and Indonesia. (FY11/3 → FY16/3 : up 2,675,000 units, 22% increase over a five-year period) • China: Level off on the order of 21,000,000 units. (FY11/3 → FY16/3 : up 300,000 units, 1% increase over a five-year period) • China: Level off on the order of 21,000,000 units. (FY11/3 → FY16/3 : up 300,000 units, 1% increase over a five-year period) IV-1. Prospects and Measures for Mid-term Sales Expansion 27

[Mid-term Sales Plan]

280,000 300,000 250,000

250,000 198,440

200,000

150,000

100,000

50,000

0 2010年度FY11/3 2011年度FY12/3 FY13/3 2012年度FY14/3 2013年度 2014年度FY15/3 FY16/3 2015年度 63期 64期 65期 66期 67期 68期

a global basis due to a boost in overseas sales and introduction of SalesSales are are expected expected to to increase increase on on a global basis due to a boost in overseas sales and introduction of newnew environmentally environmentally responsive responsive products products in in the the domestic domestic market, market, etc. etc. ¥198,440 million in FY11/3 ¥280,000 million in FY16/3 (increase of 41%) ¥198,440 million in FY11/3⇒⇒ ¥280,000 million in FY16/3 (increase of 41%) IV-2. Prospects and Measures for Mid-term Sales Expansion 28 ［Mid-term Sales Plan by Area]

(JPY in million) 280,000 300,000 China中国 250,000 37,700 250,000 198,440 34,000 Asiaアジア 61,000 200,000 17,150 54,000 18,600 41,288 13,400 Europe欧州 150,000 7,628 63,000 57,000 44,000 100,000 The米州 Americas

50,000 88,374 91,600 99,700 Japan日本 0 2010年度FY11/3 2011年度FY12/3 2012年度FY13/3 2013年度FY14/3 2014年度FY15/3 2015年度FY16/3 63期 64期 65期 66期 67期 68期 69期

China due to the shift of customers’ production bases overseas SalesSales are are expected expected to to increase increase mainly mainly in in the the Americas Americas and and China due to the shift of customers’ production bases overseas andand overseas overseas sales sales expansion. expansion. crease in automobile production, but will rebound from 2013 DomesticDomestic sales sales are are expected expected to to decline decline due due to to the the de decrease in automobile production, but will rebound from 2013 ronmentally responsive products. duedue to to the the introduction introduction of of new new envi environmentally responsive products. IV-3. Prospects and Measures for Mid-term Sales Expansion 29

Estimated sales for FY15/3, based on a FY11/3 (=100) New products Eco products New market products ・Increasing sales (responding to ・Establishing trade areas market needs) in the future 300 Promoting new sales Products 100 Existing products Inexpensive products for ・Commodity products emerging economies ・Improving competitiveness ・Expanding quantity by using LCC Existing products (Promoting sales) ・Increasing sales of system 450 1,000 module products (value- E enhanced products) xisting products 7,500 100 100 100

Emerging Established economies Market economies IV-4. Prospects and Measures for Mid-term Sales Expansion: 30 Automobile as the main sales target „„EmergingEmerging markets markets ⇒⇒ImproveImprove local local development/sourcing/produc development/sourcing/productiontion systems systems and and expand expand sales sales of of productsproducts that that are are most most suitable suitable for for each each market. market. ⇒⇒TapTap into into local local manufacturers manufacturers mainly mainly in in China China and and India. India. „„MarketMarket for for mini-vehicles mini-vehicles and and inexpensive inexpensive cars cars ⇒⇒DevelopDevelop and and expand expand sales sales of of competiti competitiveve products products using using technologies technologies for for downsizing,downsizing, reducing reducing weig weight,ht, and and cutting cutting costs. costs.

„„MarketMarket for for environment-friendly environment-friendly cars cars ⇒⇒ProposePropose products products that that anticipate anticipate ma marketrket needs needs and and capture capture sales sales areas. areas.

„„ JapaneseJapanese maker’s maker’s Global Global car car models models ⇒⇒ImproveImprove global global production production and and supply supply systems systems and and capture capture sales sales areas. areas.

„„EuropeanEuropean marketmarket ⇒⇒PromotePromote sales sales expansion expansion mainly mainly in in Germany Germany and and France. France. ⇒⇒RollRoll out out product product strategies strategies in in li linene with with technological technological evolution. evolution. IV-5. Prospects and Measures for Mid-term Sales Expansion: 31 Motorcycle as the main sales target

„„ASEANASEAN marketmarket ⇒⇒ ActivelyActively promote promote securing securing production production capacity capacity in in response response to to market market expansion.expansion. ⇒⇒ PromotePromote sales sales expansion expansion of of fuel fuel pump pump modules modules for for fuel fuel injection injection systemssystems and and cell cell dynamos dynamos against against the the backdrop backdrop of of a a shift shift to to fuel fuel injectioninjection systems systems due due to to restrictions restrictions on on emissions emissions and and improved improved fuel fuel efficiency.efficiency. „„IndiaIndia ⇒⇒ ExpandExpand sales sales areas areas by by developing developing more more inexpensive inexpensive products products and and boostingboosting production production capacity. capacity.

„„NextNext markets markets (Africa, (Africa, Central/South Central/South America, America, and and Pakistan,Pakistan, etc.) etc.) ⇒⇒TapTap into into next next markets markets to to sell sell inexpe inexpensivensive starter starter system systemss and and ACG ACG starters starters throughthrough complementary complementary parts parts using using our our production production bases bases in in China China and and ASEAN. ASEAN. IV-6. Prospects and Measures for Mid-term Sales Expansion: 32 Focusing on health and nursing care fields as the main sales targets

„„HomeHome care care beds beds and and beds beds forfor nursingnursing carecare facilitiesfacilities ⇒⇒RespondRespond to to the the increase increase in in sales sales due due to to the the accelerated accelerated aging aging of of the the populationpopulation and and recovery recovery efforts efforts in in quake-stricken quake-stricken areas. areas.

„„BeddingBedding peripheralsperipherals ⇒⇒DevelopDevelop and and expand expand sales sales of of new new products products that that accommodate accommodate the the shortageshortage of of caretakers caretakers caused caused by by an an aging aging population population with with a a declining declining birthrate.birthrate.

„„Health-relatedHealth-related equipment equipment ⇒⇒ExpandExpand sales sales of of health health support support products products in in line line with with the the increased increased awarenessawareness of of disease disease prevention prevention and and restoration restoration of of health. health.

„„BusinessBusiness expansion expansion in in line line with with market market expansion expansion of of overseasoverseas customerscustomers ⇒⇒RespondRespond to to accelerated accelerated aging aging of of popula populationstions abroad abroad mainly mainly in in advanced advanced countries.countries.