Thank you for your continued support. In addition to elucidating the management policy of the Toyota Boshoku group, we would like to report on financial results and business conditions for the first half of the fiscal year ending March 31, 2013 (period from April 1, 2012 to September 30, 2012).

Formulation of 2020 Vision and 2015 Mid-Term Management Plan

Taking the position that we need to plan ten years out, the Toyota Boshoku group has formulated a "2020 Vision" plan with the intention of further accelerating growth.

The automotive industry we face today is one where greater growth is anticipated, particularly in emerging countries. Market growth in such emerging nations, however, is expected to center on low-cost, compact models, meaning we will need to emerge victorious in the severe price competition accompanying the expansion in business. Additionally, we must sustain our existing businesses while expanding businesses for new customers. Therefore, we recognize not only our need to continue offering attractive, comfortable mobile environments that exceed the expectations of our customers worldwide, but also our aim to be a responsible global company that is trusted by and grows with all of our stakeholders (see figure below).

In the current period, vehicle production showed tremendous improvement over the same period a year ago thanks to recovery after drastic declines due to the Great East Japan Earthquake and with a government subsidy program for environment-friendly vehicles. However, the situation has remained severe due to the ongoing appreciation and other factors. Amidst such conditions, we have initiated production of automobile interiors in Brazil and Changchun, China, and plan to establish new production facilities by Boshoku Automotive Czech and other affiliates. While continuing to meet the needs of our customers around the world, we are making numerous efforts to create globally integrated, efficient operations with optimized production and logistics systems.

Increased Production and Other Factors Lead to Improvements both in Sales and Profit Compared with the Same Period of the Previous Year

Results for the current period show a comparative increase both in sales and profit over the same period a year ago. Due to the effects of increased production and other factors, consolidated net sales amounted to 551.3 billion yen, an increase of 150.5 billion yen year-on-year. While fluctuations in product prices was one of a number of factors in reduced profits, the increase production and further rationalization resulted in operating income of 18.3 billion yen, up 12.8 billion yen year-on-year; ordinary income of 18.9 billion yen, an increase of 13.2 billion yen; and net income of 9.4 billion yen, up 10.9 billion yen.

Based on our stance to maintain stable dividends to shareholders, the Company paid interim dividends of 8 yen per share (an increase of 1 yen over the same period a year ago).

Estimated results for the full-year include 1.01 trillion yen in net sales, 21 billion yen in operating income, 23 billion yen in ordinary income, and 8.0 billion yen in net income.

As for the state of the Japanese economy, although there are some signs of a recovery due in part to demand from post-quake projects, the deepening of Europe's debt issues and other problems mean that conditions continue to be unclear. The termination of the governmental subsidy program for environment-friendly vehicles has also hit the automotive industry, and it appears such unforgiving conditions will continue.

Taking on the Challenge with Quantum Leap

Amidst such severe business conditions, the Toyota Boshoku group formulated new systems for surviving in the global competition. While getting more price-competitive and attracting new customers in the growing market of the emerging countries, the entire company will work as one in taking on new challenges with the "Quantum Leap" mindset.

We sincerely appreciate and request the continued support and encouragement of all shareholders.