We are pleased to have this opportunity to report the Consolidated Financial Results for the First Half of FY 2010 of Aisin Seiki Co., Ltd. and would like to express our deepest appreciation to our shareholders for your continuous support.

The business environment during the cumulative period of the 2nd quarter of the current fiscal year (April 1, 2009 to September 30, 2009) showed no signs of a solid recovery of individual consumption, reflecting the pessimism about the future economy. Under such circumstances, the Company worked on the development and sales expansion of products that contribute to the improvement of environmental performance. While this generated synergistic effects with the scrap incentives and tax cut for environment -conscious vehicles, demand for cars in major markets still remained sluggish, resulting in sales of ￥880.8 billion, a decrease in income by 32.5% from the same term last year.

In terms of profits, although cost programs based on our structural reform yielded some positive results, the Company posted an operating loss of ￥3.4 billion due to the major impact of the decrease in sales.

Furthermore, the posting of an impairment loss for surplus manufacturing capacity resulted in a net loss of ￥34.7 billion. However, we decided to pay an interim dividend of ￥10 per share to reward our shareholders for their support.

In the car market, competition in development has been intensified due to the tightening of global environmental regulations and increasing needs for cost reduction, in addition to uncertainty against the backdrop of the accelerating global business recession. As such, the business environment has become increasingly severe. With this environment, the Aisin Group is seeking to change our corporate culture into a leaner and more solid existence so that we can overcome the difficult situation at hand, and bring innovation to the market. To these ends, we will make a unified effort towards structural reform within the Group in order to survive, develop new products from the viewpoint of customers, explore new markets and ensure our competitiveness by backing up operations with the ability to create reliable products.

As individuals and a company trusted by society, we will always try to behave with an awareness of the need to coexist with society throughout our business activities, and make efforts for harmonious growth with society and the development of corporate business.

In closing, we ask our shareholders for their continued support and guidance.


November 2009