To Our Investors

We would like to take this opportunity to express our deep gratitude for your exceptionally kind consideration for our corporation.

We would also like to express our appreciation for your warm expressions of sympathy in light of the Tohoku earthquake and ensuing difficulties that struck Japan in March of this year.

With regard to the state of Japan's economy during this mid-cycle period, and in light of the effects of the Tohoku earthquake and tsunami, our domestic supply chain has suffered some extremely powerful damage that requires sound policies for recovery and reconstruction, but we have been able to notice some improvements in consumer spending. However, in light of the effects of the overseas economic slowdown, as well as the drastic rise in the value of the Japanese yen and decreasing stock prices, the severe economic conditions in Japan have continued.

When we concentrate on the developing nations within the world economy, some notably firm transitions have become visible, but in light of the overall influence of the debt crisis that has been occurring in Europe, the destabilization of the money market is worsening and the sense of uncertainty with regard to the future prospects for the entire world economy has also become more powerful.

With regard to the motor vehicle industry in the face of conditions such as these, automobile markets in the developing nations should be able to maintain their strength. Domestically speaking, recovery actions set to begin in April 2012 should lead to improvements with regard to the problem of supplying parts and the production volume of automobile manufacturers.

With regard to the future of the world economy, in light of the European sovereign risk of further anxiety about credit as well as any further delays in the American economic recovery, we can anticipate a continuation of the severity of this economic climate.

With regard to the motor vehicle industry, the historical influence of the high exchange rate of the Japanese yen as well as this year's devastating floods in Thailand cannot be ignored. Uncertainties in terms of future prospects are bound to remain, and future trends of expansion seem to be directed towards the domestic markets of the developing nations in Asia.

By concentrating the comprehensive power of the Mitsuba Group and through the leveraging of our resource management policies, we will strive to promote further growth and improvements in our profits in such an environment as the aim of our management activities.

Furthermore, by increasing our business expansions and by striving for growth in our response to demands for environmentally friendly vehicles and luxury automobiles through highly competitive QCD (Quality, Costs, Delivery) as well as reductions in fixed costs, we intend to realize improvements in our earning capacity through the enhancement of our corporate structure.

We look forward to the continuing support and encouragement of all of our stockholders.

December 2011
President of the Board and COO