Thank you for your continued support. Along with once again explaining the management policy and approach of the Toyota Boshoku group, we would like to report on financial results and business conditions for the interim period of fiscal 2011 (from April 1, 2011 to September 30, 2011).

Strengthening Initiatives to Establish Further Business Foundations

The Toyota Boshoku group is united in our aim to make major strides and become a top global company from this fiscal year by leveraging the results of activities undertaken up until fiscal 2010, which was designated as our "Second Founding."

In June 2011, we acquired Austria-based Polytec Holding AG's interior business, which is one of this company's automotive parts businesses. This move has enabled us to start doing business with major German automakers for the first time. Additionally, around the same time, manufacturing began at TBAI Poland Sp z o.o., our first base for seat frames in Europe, and Toyota Boshoku Somain S.A.S., our first seat production base in Europe. In September, with the aim of boosting design development capabilities, we established the Toyota Boshoku Milan Design Branch in Milan, Italy. In Japan, we aim to realise product development and monozukuri (manufacturing) from a user perspective by deciding to build a test course as part of our unique evaluation facilities. As competition intensifies globally, the Toyota Boshoku group will push ahead with the initiatives outlined above and remain fully prepared to pursue further challenges in the future.

Against this backdrop, the acquisition of Polytec's business is a major step forward. Through the integration of specific technical know-how regarding European cars with the manufacturing expertise that Toyota Boshoku has accumulated over the years, we will be able to produce more attractive, high-quality products as well as build business relationships with major automakers. We see these as significant opportunities to expand business on a global scale.

Moving ahead, we will strive to increase our unique technological capabilities and further enhance manufacturing, thus enabling us to respond to diverse customer needs with the objective of meeting the expectations and earning the trust of our shareholders.

Sales and Profits Down Year-on-Year due to Great East Japan Earthquake

With regard to business results in the first half of the fiscal year, we posted declines in sales and profits compared with the same period of the previous fiscal year. Production and sales decreased due to such factors as the impact of the Great East Japan Earthquake as well as the effects of product price fluctuations.

Turmoil in the supply chain due to the disaster significantly affected not only Japan but also respective regions overseas. Suspension of operations at plants was an unavoidable consequence, which resulted in harsh conditions, particularly in the first quarter. The strong yen in global markets had a considerable negative impact on business results in respective regions as well.

As a result, consolidated net sales for the interim period amounted to 400.8 billion yen (down 102.7 billion yen year-on-year), operating income was 5.4 billion yen (down 15.9 billion yen), ordinary income was 5.6 billion yen (down 14.1 billion yen) and net loss was 1.4 billion yen (down 10.5 billion yen from net income recorded in the previous interim period).

In light of business results, the management environment and other considerations, cash dividends for the interim period were decreased by 1.00 yen from the previous interim period to 7.00 yen per share.

Aiming to Realise New Growth Going Forward

Full-year financial forecasts are unchanged from those announced in June, specifically, net sales of 930.0 billion yen, operating income of 26.0 billion yen, ordinary income of 28.0 billion yen and net income of 11.0 billion yen. Although production is gradually being restored from a drastic decline following the Great East Japan Earthquake, there is little cause for optimism regarding the current operating environment. The situation is unpredictable due to such circumstances as the historic continuing strong yen and the impact on the supply chain as a result of catastrophic floods in Thailand; therefore, the future remains extremely uncertain.

Despite these adverse conditions, we will maximise our strengths in a concerted team effort throughout the Toyota Boshoku group and aim to achieve new growth going forward.

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