The Group has been developing a variety of products to contribute to the popularization of hybrid vehicles. In particular, we believe that AISIN should lead the world in the field of drivetrain-related products. The number of vehicle models equipped with our industry-pioneering motor-installed transmission for hybrid vehicles is growing dramatically. Also, our regenerative brake system and electric water pump for cooling the engine are now indispensable to the functions of many hybrid vehicles.

Moving forward, we aim to expand our range of products by developing driving systems that are compatible with a wide range of vehicles, from small to large and commercial vehicles. We will also continue to leverage our signature innovativeness to develop new heat management-related components, in which technologies such as heat-release control and exhaust heat utilization are used to optimize heat utilization in the entire vehicle.

AISIN's strength lies in its ability to develop a wide range of businesses in areas other than automotive parts, such as energy and lifestyle-related businesses. In the energy related business, we have been delivering products such as gas heat pump air conditioners with superb energy efficiency and gas cogeneration systems, in which power is generated by gas combustion and discharged heat is reused in an efficient manner.

We will continue to expand our energy related businesses to make full use of our technology and know-how originally developed for automotive, energy and lifestyle applications. In the process, we will enhance our signature strength of harmonizing technology with consumer demands. Furthermore, with an awareness of increasing demand for efficient use of energy, we intend to continue developing products that contribute to "smart houses," in which the flow of energy and information is optimized in accordance with each and every lifestyle.

With "Quality First" as one of AISIN's management principles, we implemented "AISIN Customer First (A-CF) activities" in pursuit of delivering 100% non-defective products under a customer-first philosophy.

One such activity is the "Defect-free Production Line" in which we aim to increase the number of production lines that produce zero defects. We were awarded the Recognition of Quality System Innovation by the Union of Japanese Scientists and Engineers in FY2011 in relation to these activities. This was in recognition of our quality improvement measures that strictly focus on production sites and our success in terms of developing human resources from a global viewpoint.

AISIN is working actively on corporate citizenship activities themed around "The Environment," "Fostering Youth" and "Community Building and Development."

We provided materials and donations to areas affected by the Great East Japan Earthquake as well as dispatching personnel to ironworks to help repair machinery rendered inoperable by the tsunami. We are also collecting donations from management and employees both in Japan and abroad, and are making a Group-wide effort to assist in the recovery of the affected areas.

We intend to continue such activities so that we remain a corporate group that is trusted by society and that develops with society.