FY2008 Consolidated Financial Results(April 1, 2007 through March 31, 2008)
Company NameAISIN SEIKI Co., Ltd.

April 25, 2008
The Tokyo, Osaka and Nagoya
Stock Exchanges (1st division)
Aichi, JAPANhttp://www.aisin.co.jp
81 - 566 - 24 - 8265

Listed on

Code Number
7259
Representative
Reference person in charge

Location
Yasuhito Yamauchi, President
URL
Masaaki Yasui,
TEL
General Manager, Finance & Accounting Dept.
The expected date of annual regular general meeting of shareholders
June 20, 2008
The expected date of dividends payment
June 23, 2008
１. Consolidated Results for FY2008（April 1, 2007 through March 31, 2008）(1)Consolidated Financial Results
Net Sales
FY2008FY2007

Operating Income％in Million Yen％

in Million Yen％

in Million Yen

％

13.5
12.2

180,484
131,03437.7
11.0

186,309134,287

38.7
7.3

91,654
66,88937.0
9.5

Fully Diluted Earnings
Per Share

Ratio of Operating
Income to Net Sales

Yen

Yen

％

％

％

322.15232.71

12.0
9.3

9.0
6.9

6.7
5.5

FY2008 : 8,730 million yen , FY2007 : 6,302 million yen

Shareholders' Equity

Shareholders' Equity Ratio Shareholders' Equity Per Sharein Million Yen

in Million Yen％

Yen

2,097,727
2,037,896

994,592
955,85336.6
37.2

2,725.67
2,662.78

FY2008 : 767,123 million yen , FY2007 : 758,743 million yen(3)Consolidated Cash Flows
From operating
activities

From investing
activities

in Million Yen

FY2008FY2007

Ratio of Ordinary
Income to Total
AssetsReturn on Equity

322.50233.03(2)Consolidated Financial Condition
Total Assets

Note : Equity capital

Net Income

2,700,405
2,378,611

FY2008FY2007

FY2008FY2007

Ordinary Incomein Million Yen

Earnings Per Share

Note : Equity income（Amounts less than million yen are rounded down.）

From financing
activities

Cash and cash
equivalents
at the end of FY

in Million Yen

in Million Yen

in Million Yen

299,247
228,402((

217,844 )236,614 )

27,682 )13,361(

190,245
136,307

２. Cash Dividends
Annual Cash Dividends Per Share
Interim dividend
FY2007
FY2008FY2009(Forecast)

Final dividend

Total

Dividends total

Dividends
Payout Ratio

Ratio of Total Amountof Dividends toShareholders' Equuity

Yen

Yen

Yen

in Million Yen

％

％

16
24

24
36

40
60

11,545
16,987

17.2
18.6

1.6
2.2

30

30

60

24.1

３. Consolidated forecast for FY2009 (April 1, 2008 through March 31, 2009)
Net Sales
1st Half of FY2009
FY2009Operating Incomein Million Yen％

1,340,000
2,720,000

3.6
0.7

in Million Yen

Net Income

Ordinary Income

Earnings Per Share％in Million Yen％

in Million Yen％

Yen

65,000 -19.8
142,000 -21.3

69,000149,000

-18.7
-20.0

32,00070,000

-17.2
-23.6

113.70248.72

Note : Percentages for net sales, operating income, ordinary income and net income indicate changes from the same period of the previous year.

1４. Others(1)Consolidation Scope and Changes in Consolidation Scope① Consolidation Scope
Number of consolidated subsidiaries: 148
Number of unconsolidated subsidiaries: none11
Affiliates accounted for under equity method :② Changes in Consolidation Scope
Consolidated subsidiaries

7
Added
:
Excluded : none
Added
: noneExcluded :1

Affiliates accounted forunder the equity method(2)Changes in Accounting Policies and Presentation①Changes according to revision of accounting policy ： Yes②Changes other than above ：No(note）Please refer to "Significant accounting policy for FY 2008"at page 13 .
(3)Issued and outstanding capital stock① Number of shares issued as of the respective balance sheet date
FY2008 : 294,674,634 shares , FY2007 : 294,674,634 shares② Number of treasury stock
FY2008 : 13,231,279 shares , FY2007 : 9,730,145 shares(note）To determine number of shares used to calculate earnings per share, please refer to "Amounts per share"page 16.

（Reference) Unconsolidated Results
１. Unconsolidated Results for FY2008（April 1, 2007 through March 31, 2008）(1)Unconsolidated Financial Results
Net Sales
FY2008FY2007

Operating Income

Ordinary Income

Net Incomein Million Yen％

in Million Yen％

in Million Yen％

in Million Yen％

878,996786,966

11.7
9.2

35,57928,53824.7-19.0

46,30636,80825.8-12.3

34,667
27,112

27.9-5.4

Earnings Per Share
FY2008FY2007

Fully Diluted Earnings
Per Share

Yen

Yen

121.9792.42

121.8392.29

Note : Percentages for net sales, operating income, ordinary income and net income indicate changes from the same period of the previous year.

(2)Unｃonsolidated Financial Position
Total Assets
FY2008FY2007Note : Equity capital

Shareholders' Equity

Shareholders' Equity Ratio Shareholders' Equity Per Sharein Million Yen

in Million Yen％

Yen

1,055,163
1,069,056

391,129
441,59537.0
41.3

1,387.42
1,548.99

FY2008 : 390,528 million yen , FY2007 : 441,427 million yen

２. Unconsolidated forecast for FY2009 (April 1, 2008 through March 31, 2009)
Net Sales
1st Half of FY2009

FY2009Operating Incomein Million Yen％

446,000
910,000

10.4
3.5

in Million Yen

Ordinary Income

Net Income

Earnings Per Share％in Million Yen％

in Million Yen％

Yen

7,500 -47.1
18,000 -49.4

22,50038,000-7.9-17.9

18,50030,500

0.7
-12.0

65.72
108.36Note : Percentages for net sales, operating income, ordinary income and net income indicate changes from the same period of the previous year.

※ Forecasts above are based on AISIN's plans and expectations. These are not guarantees of future performance including known
and unknown risks, uncertainties and other factors that may cause actual results, performance, achievements or financial position
to be materially different from the forecasts expressed or implied in this report.

2

Operating Results and Financial Position
1．Analysis of Operating Results(Operation result of the year ended March 31, 2008)
The global automotive market continued to expand due to the sales increases in emerging
country e.g. China, India, Russia, offsetting the sluggish sales growth in principle markets e.g.
North America and Japan resulting from high commodity prices and uncertain future economic
climate. Meanwhile Life and Energy industry has been under severe condition due to the slumping
domestic housing market.
Amid these conditions, Aisin group has developed and sold new products corresponding tosocial change and meeting customer’s demands; business expansion in global market, while
promoting positive environmental and social activities.
Sales within the Automotive Related segment for FY 2007 increased 13.6% (\2,588.5 billion)
compared with previous FY (\2,278.8 billion). The main reasons are customer production volume
expansion and the result of positive sales activities for automatic transmissions, manualtransmissions, car navigation systems, and power sliding doors.
Sales in Life & Energy business and other business for FY 2007 increased 12.0% （￥111.8
billion） compared with previous FY (\99.7 billion). As a result, net sales increased 13.5%(\2,700.4 billion) compared with previous FY (\2,378.6 billion).

Consolidated Net Sales by Item（in Millions）

Category

FY2007

FY2008(Apr. 2006 throughMar. 2007)%
Yen(Apr. 2007 throughMar. 2008)%
Yen

Variance

Variation
ratio

Yen

%

Engine Conponent

223,275

9.4

259,934

9.6

36,65916.4

Drivetrain Conponent

1,014,016

42.6

1,170,457

43.4

156,441

15.4

Brake & Chassis
Conponent

468,260

19.7

535,168

19.8

66,908

14.3

Body Conponent

433,21018.2

477,52517.7

44,315

10.2

Information Related

140,053

5.9

145,512

5.4

5,459

3.9

Automotive Related Sub Total

2,278,816

95.8

2,588,599

95.9

309,783

13.6

Life & Energy Related

51,592

2.2

52,679

1.9

1,087

2.1

Others48,2022.0

59,126

2.2

10,92422.7

2,378,611

100.0

2,700,405

100.0

321,794

13.5

Grand Total

Note : Sales of “Others” includes “Construction and Engineering Works Business” and “Oil Sales
Business”and so on.

3As to our profit situation, operating income increased 37.7% (\180.4 billion) compared withprevious FY (\131.0 billion), ordinary income increased 38.7% (\186.3 billion) compared withprevious FY (\134.2 billion), net income increased 37.0% (\91.6 billion) compared with previous
FY (\66.8 billion). Above are results of sales volume increase and cost reduction activities
offsetting increase in depreciation, amortization, and research expenses for future growth.
ROE (return on equity) which is one of our management target improved to 12.0% comparedwith previous FY (9.3%).
A firm earning structure, which we believe will enable us to achieve mid and long-term target, will
be based on implementing initiatives aimed at further improving profitability and future-focused
upfront investments.

(Forecast for FY2008)
Circumstance surrounding us is still unclear due to the instability factor and issue e.g. highenergy and material prices, rapid fluctuation in exchange rate, confusion in global financial andcapital market triggered by the sub prime loan issue in the U.S., and intensifying global competition.
Under these circumstances, the situation surrounding automotive business are expected tocontinue to be uncertain, due to the sluggish sales growth in principal market e.g. North
America and Japan offsetting the sales increases in emerging country e.g. China, India.

Current forecast of consolidated financial result for FY2008 are as follow;
Sales : \2,720.0 billion
Operating income : \142.0 billion
Ordinary income : \149.0 billion
Average foreign currency exchange rate used for the forecast : approximately \100 to the
U.S. dollars and approximately \155 to the Euro.
Forecasted consolidated financial results above have been prepared based on the current
business environment. These forecast are not guarantees of future performance.

2．Analysis of Financial Condition(Analysis of assets, liabilities, and cash flows situation)
Total assets at the end of the fiscal period amounted to \2,097.7 billion, up 2.9% from \2,037.8
billion at the end of the previous fiscal year. Total net assets at the end of the interim periodamounted to \994.5 billion, an increase of 4.1% from \955.8 billion at the end of the previous
fiscal year.
The cash flow situation in the fiscal period, resulted in cash and cash equivalents (hereafterreferred to as cash) amounting to \190.2 billion, a increase of \53.9 billion, or 39.6%, from \136.3
billion at the end of the previous fiscal year. This resulted from \299.2 billion in net cash inflow
by operating activities, \217.8 billion in net cash outflow in investing activities, \27.6 billion in
net cash outflow in financing activities, and a \0.2 billion inflow from translation adjustment ofcash and cash equivalents.

4

(Cash Flows from Operating Activities)
Cash flows from operating activities resulted in a cash inflow of \299.2 billion in FY 2007 from
\228.4 billion in FY 2006, the variance was mainly due to the net income of \52.0 billion anddepreciation and amortization of \22.2 billion.
(Cash Flows from Investing Activities)
Cash Flows from Investing Activities resulted in a cash outflow of \217.8 billion in FY 2007
from \236.6 billion in FY 2006, the variance was mainly due to the additions to tangible asset.
Net cash used in investing activities decreased by \19.5 billion.
(Cash Flows from Financing Activities)
Cash Flows from Financing Activities resulted in a cash outflow of \27.6 billion in FY 2007,
mainly due to repayment of loans and the repurchasing own stocks.
Reference: Transition of index related to cash flows

Equity ratio（％）
Equity ratio to the publicstock market value（％）
Liabilities with interest to
cash flows（point）
Interest

coverage(magnification)

ratio

Apr. 2003

Apr. 2004

Apr. 2005

Apr. 2006

Apr. 2007

throughthroughthroughthroughthroughMar. 2004

Mar. 2005

Mar. 2006

Mar. 2007

Mar. 2008

36.6

36.8

36.6

37.2

36.6

42.0

46.4

70.9

57.7

49.9

1.5

1.6

1.5

1.3

1.0

57.3

59.2

74.3

81.2

74.9

Equity ratio = Shareholders' Equity ÷ Total Assets
Equity ratio to the public stock market value = The public stock market value ÷ Total Assets
Liabilities with interest to cash flows =Liabilities with interest

÷ Cash flows

Interest coverage ratio = Cash flows ÷ Interest payment
Note1 : The above-mentioned data are calculated by the consolidated basis.
Note2 : The public stock market value are calculated based on the numbers of issued shares except treasury
stock.
Note3 : The operating cash flows is used for the cash flows.
Note4 : The interest-bearing debt includes all the debts to pay the interest of the debts summed up by the
consolidated balance sheet.

53. Basic Policy on the Distribution of Profits for FY 2007/2008
Aisin strives to raise the level of stable dividends by taking into consideration a comprehensive
range of factors that include our business results and payout ratio. Aisin plans to raise capitalefficiency by acquiring its own shares. To secure shareholder profits in the future, Aisin willcontinue to utilize retained earnings to further carry out our operations in Japan and overseas
and for investments to further upgrade and strengthen our corporate constitution.

Aisin will propose the year-end cash dividend amount of \36 per share. Aisin has paid an interim
cash dividend of \24 per share to each shareholder; accordingly, the total annual cash dividend
per share will be \60, which is a \20 increase from previous FY. Dividend shall be paid twice ayear – an interim cash dividend and year-end cash dividend, with the year-end cash dividends asa matter to be resolved at annual stockholders general meeting, even though Aisin’s articles ofincorporation stipulate that retained earning can be distributed by the resolution of the board of
directors.
And also, in accordance with the basic policy above, Aisin repurchased 4.24 million of its own
shares during FY 2007 with the total cost being \ 19.3 billion.
Despite the headwinds for FY 2008 Aisin will strive to maintain a stable cash dividend policy.

6

Overview of Associated Companies
The “Overview of Associated Companies” has been omitted as there were no significant alterationfrom “Overview of Associated Companies” of FY2006 Consolidated Financial Reports issued on June22, 2007.

Management Policy
1. Aisin’s Basic Management Policy
This “Aisin’s Basic Management Policy” has been omitted as there were no significant alterationfrom “Aisin’s Basic Management Policy” of FY2007 Interim Consolidated Financial Reports issued
on October 31, 2007.
Above FY2007 Interim Consolidated Financial Reports can be seen from the URL below.
(Aisin Web site)
http://www.aisin.com/finance/finan/index.html

2. Targeted Management Indicators
In order to meet customer’s demand globally, Aisin group is striving to strengthen production
capacity where needed in both domestic and global market. And also, developing appealing
products and using innovative cost reduction measures to solidify our financial foundation further.
Finally, raising capital efficiency by repurchasing own shares and other measures, managementtarget for ROE will be set at 15%.

3. Medium-and Long-Term Management Strategies and Countermeasures
Future forecast remains uncertain because of factors such as volatile financial markets andforeign-exchange rates, and rising raw material costs. The environment in the automotive
market is challenging due to concerns about the future of the U.S. and Japanese market, tighter
environmental standards, and intensified global competition.
Under these circumstances, a new business plan “Group vision 2015” has been instituted inorder to accelerate new development as well as handling issue at hand with precision by fullyusing group resources. Aisin shall keep our commitment to realizing our objective “To help
build a better vehicle-oriented society and benefit people’s living environment, we aim tobuild a prosperous tomorrow’s world together with customers and local markets worldwide andalong with people, communities and nature”.
Finally it’s our sincere desire to strive for growth and development in harmony with society andbecome a trusted member of society .

7Consolidated Balance Sheets（in Million Yen）

FY2007(As of Mar. 31, 2007)

FY2008(As of Mar. 31, 2008)

Variance〔 Assets 〕
Current Assets

767,369

869,917

102,548

Cash and Cash Equivalents
Trade Notes & Accounts
Receivable
Marketable Securities

98,628102,293

3,665

363,726

373,6979,971

38,622

95,63657,014Inventories

168,762

175,360

6,598

Deferred Tax Assets

48,386

58,131

9,745

OthersLess: Allowance for Doubtful
Accounts

49,97465,543

15,569(Fixed Assets
Tangible Assets

732 )

(

746 )

(

14 )

(

42,716 )1,270,526

1,227,810

839,192

875,773

36,581

Buildings & Structures
Machinery, Equipment &VehiclesTools, Furniture & Fixtures

240,051

253,377

13,326

419,876

429,533

9,657

42,55041,610Land

88,412

94,6496,237

Construction in Progress

48,30156,602

8,301

16,13920,885

4,746

Consolidation Adjustments

3,566

6,793

3,227

Software

10,068

11,641

1,573

Others

2,504

2,450

(

54 )

Investments & Other Assets

415,194

331,150(

84,044 )Investments in Securities

357,422

267,509(

89,913 )Long-term Loans

4,259

4,403

144

Deferred Tax Assets

24,22828,3694,141

OthersLess: Allowance for Doubtful
Accounts

29,77331,313

1,540

445 )

43

Intangible Assets

(

488 )

(

(

940 )

Total Assets

2,037,896

2,097,727

59,831

Note: 1. Accumulated depreciation
2. Guarantees on Liability

1,343,154
344

1,425,844
24

82,690320 )

8(（in Million Yen）
FY2007(As of Mar. 31, 2007)

FY2008(As of Mar. 31, 2008)

679,070

704,280

25,210359,873

372,058

12,18530,51828,647(

1,871 )

15,000―(15,000 )47,907130,345
41,64757,939150,668
42,206

10,032
20,323559

16,883

16,996113

16,133
20,761

18,962
16,799402,972
20,000221,076
72,627

398,854
39,988
227,664
40,312

86,97888,251

1,052

214

121
1,116
1,082,042

452
1,970
1,103,134331
854
21,092602,382
45,04957,891
501,0091,567 )

662,106
45,04958,825578,969
20,738 )(59,724―934
77,96019,171 )

156,361

105,016(

51,345 )145,136

88,130(57,006 )1,184 )(

517 )〔 Liabilities 〕
Current Liabilities
Trade Notes& Accounts Payable
Short-term Borrowings
Current Portion of Bonds
PayableAmount in Arrears
Accrued Expenses
Accrued Income Taxes
Deposits Received from
Employees
Accrued Warranty Provision
OthersLong-term Liabilities
Bonds Payable
Long-term Debt
Deferred Tax Liabilities
Allowance for Employees
Retirement Benefits
Long-term Amount in
Arrears
Consolidation Adjustments
OthersTotal Liabilities〔 Net Assets 〕
Shareholders' Equity
Common Stock
Capital Surplus
Retained Earnings
Less:Treasury Stock, at Cost
Evaluation andConversion Difference
Net Unrealized Gain on
Available-for-sale Securities
Profit & Loss of Deferral
Hedge Accounting
Foreign Currency
Translation Adjustments
Subscription Warrant
Minority Interest
Total Net Assets
Total Liabilities
and Net Assets

(

(

667 )

(

(

Variance

(
(
(

2,829
3,962 )
4,118 )
19,988
6,588
32,315 )
1,273

(

838 )

11,892

18,071

6,179

167
196,941
955,853601
226,867
994,592

434
29,926
38,7392,037,896

2,097,727

59,831

9

Consolidated Statements of Income（in Million Yen）

FY2007

FY2008(Apr.2006 throughMar.2007)(Apr.2007 throughMar.2008)

Net Sales

2,378,611

2,700,405

321,794

Cost of Sales

2,060,667

2,315,204

254,537

Gross Profit

317,944385,201

67,257

Selling, General &Administrative Expenses

186,909

204,716

17,807

Operating Income

131,034

180,484

49,450Non-Operating Income

21,703

27,4155,712Interest & Dividend Income

4,735

5,975

1,240

Investment Profit on Equity
Method

6,302

8,730

2,428

Other Income

10,664

12,7092,045

Non-Operating Expenses

18,45021,591

3,141

Interest Expense

3,546

3,801

255

Other Expenses

14,903

17,7902,887

Ordinary Income

134,287

186,309

52,022

Income Before Income Taxes
and Minority Interest

134,287

186,309

52,022

Income Taxes-current

51,76567,776

16,011

Income Taxes-deferred

(

6,989

)

(

10,078

Variance)(

3,089 )

Minority Interest in Net Income

22,622

36,956

14,334Net Income

66,88991,654

24,765Note : Depreciation and amortization

145,276

167,482

22,206

10

Consolidated Statements of Changes in Shareholders' Equity
FY2007 （April 1, 2006 through March 31, 2007）（in Million Yen）
Shareholders' Equity

Balance as of March 31, 2006

Evaluation and Conversion Difference

CommonStockCapitalSurplusRetained
Earnings

Less:
Treasury
Stock,
at Cost45,04963,262445,241( 1,820 ) 551,732

Sub Total

Foreign
Net Unrealized Profit & Loss
Currency
of Deferral
Gain onTranslation
Hedge
Available-forsale Securities Accounting Adjustments

123,720―

3,427

Subscription
Warrant
Sub Total

Minority
Interest

Total
Net
Assets127,148

172,183

851,064―

Increase(Decrease)
in FY2007((

Dividends Paid
Bonus of Directors and Corporate Auditors
Net Income
Change according to internal dealings ofcommon stock for treasury
Purchase of Treasury Stock

9,958 )
1,162 )
66,889( 6,057 )((9,958 )
1,162 )
66,889(445 ) (

6,503 )(

18 ) (
717

18 )
1,403

686

Disposal of Treasury Stock
Net Change of items other thanShareholders' Equity
Total Changes in the Term
Balance as of March 31, 2007―
45,049( 5,371 ) 55,768
57,891 501,009

253
50,649( 1,567 ) 602,382(

9,958 )
1,162 )
66,8891,809 ) (8,312 )

(

18 )
1,403

21,415

(

667 )

8,464

29,212

167

26,56855,94821,415
145,136

(
(

667 )
667 )

8,464
11,892

29,212
156,361

167
167

24,758
196,941

104,788955,853（in Million Yen）

FY2008 （April 1, 2007 through March 31, 2008）
Shareholders' Equity

Balance as of March 31, 2007((

Evaluation and Conversion Difference

CommonStockCapitalSurplusRetained
Earnings

Less:
Treasury
Stock,
at Cost45,04957,891

501,009( 1,567 ) 602,382( 13,693 )
91,654( 13,693 )
91,654( 19,436 ) ( 19,436 )
265
1,199

Sub Total

Net Unrealized Profit & Loss
Foreignof Deferral
Gain onCurrency
Hedge
Available-forTranslation
sale Securities Accounting Adjustments

145,136(667 )

11,892

Sub Total

Subscription
Warrant

Minority
Interest

Total
Net
Assets156,361

167

196,941

955,853

Increase(Decrease)
in FY2008
Dividends Paid
Net Income
Purchase of Treasury Stock934

Disposal of Treasury Stock
Net Change of items other thanShareholders' Equity
Total Changes in the Term
Balance as of March 31, 2008

( 13,693 )
91,654( 19,436 )1,199( 57,006 ) (―45,049934
58,82577,960578,969( 19,170 ) 59,723( 20,738 ) 662,106

Number as of Mar. 31, 2007

Increase

517 )

6,179

( 51,344 )

434

29,925( 20,984 )( 57,006 ) (517 )88,130 ( 1,184 )

6,179
18,071( 51,344 )
105,016434
601

29,925
226,867

38,739994,592

Note : Type and number of treasury stock
Type of shares
Common stock
Reason for changes（Shares）
9,730,145

4,254,307（Increase）

Purchase for corporate resolution
Request for purchase of less-than-one-unit shares（Decrease）

Exercise of stock option
Request for additional sales of less-than-one-unit shares

11

Decrease
753,173
4,244,500 shares
9,807
752,800 shares
373

Number as of Mar. 31, 2008
13,231,279

Consolidated Statements of Cash Flows

Ⅰ Cash flows from operating activities
Income before income taxes and minority interest
Depreciation and amortization
Increase(Decrease) in allowance for retirement benefits
Interest and dividend income
Interest expenses
Return on investment by equity method
Loss on disposal of property, plant and equipment(Increase)Decrease in trade notes and accounts receivable(Increase)Decrease in inventories
Increase(Decrease) in trade notes and accounts payable
OthersSubtotalInterest and dividend income received
Interest paid
Income taxes paid
Net cash provided by operating activities（in Million Yen）

FY2007

FY2008(Apr. 2006 throughMar. 2007)(Apr. 2007 throughMar. 2008)

134,287
145,276
2,186
4,735 )
3,546
6,302 )
5,687
20,736 )14,423 )26,186769 )
270,202
5,753
2,814 )
44,738 )
228,402

186,309
167,482
1,259
5,975 )
3,801
8,730 )
3,668
8,260 )
6,494 )
14,104
17,664364,829
8,025
3,993 )
69,613 )299,247

(
(
(
(
(

(
(

(
(
(
(

(
(

Variance

(
(
(
(

(

(
(

52,022
22,206927 )
1,240 )
255
2,428 )
2,019 )
12,476
7,929
12,082 )18,433
94,6272,272
1,179 )
24,875 )70,845

Ⅱ Cash flows from investing activities(((Increase)Decrease in term deposit and short-term investments

Payments for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchase of investments in securities((

Payments for acquisition of subsidiaries' stock
resulting in change in scope of consolidation

Proceeds from sales of investments in securities
Proceeds upon maturity of security investments
Repayments for loans madeProceeds from collections of loans
OthersNet cash used in investing activities

(
(

1,396
5,496
1,399 )
938
6,092 )
236,614 )(5,299 )(

Ⅲ Cash flows from financing activities
Increase(Decrease) in commercial paper andshort-term borrowings
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds payable
Repayments of bonds payable
Contributions from minority shareholders
Cash dividends paid
Cash dividends paid for minority shareholders
Payments for purchase of treasury stock
Proceeds from disposal of treasury stock
Net cash provided by (used in) financing activities

6,575 )
224,433 )
7,850
11,708 )2,085 )(((((Ⅳ Translation adjustment of cash and cash equivalents
Ⅴ Net increase in cash and cash equivalents
Ⅵ Cash and cash equivalents at the beginning of the year
Ⅶ Cash and cash equivalents at the end of the year

50,20918,995 )―650 )52
9,952 )
3,663 )
33 )
1,695
13,361

(
(
(
(

503 )
204,845 )
6,901
14,100 )1,395 )((

6,072
19,588949 )
2,392 )
690

(

(
(

595
5,779
972 )
1,092
10,395 )
217,844 )(9,784 )(

4,485 )

28,00013,587 )19,98815,000 )644
13,687 )
6,793 )
19,436 )1,973
27,682(

22,209 )5,408
19,98814,350 )592
3,735 )
3,130 )
19,403 )278
41,043 )

(

(
(
(
(
(
(

2,946
8,094
128,212
136,307217
53,937
136,307
190,245

(

(
(
(
(
(
(

801 )
283
427
154
4,303 )
18,7702,729 )
45,843
8,095
53,938

Note: Reconciliation between Cash & Cash Equivalents and accounts on the consolidated balance sheet#
98,628102,293
3,665
Cash and Cash Equivalents
Marketable Securities
Other Current Assets
Subtotal
Saving accounts over three months(((

Short-term investments of over three months until due date
Other current assets beside Cash & Cash Equivalents

Cash and Cash Equivalents

12

38,622
49,974
187,225
4,986 )
10,666 )35,265 )136,307(((

95,63665,543
263,473
7,435 )
18,208 )47,584 )190,245(((

57,014
15,56976,2482,449 )
7,542 )
12,319 )53,938

Basis of Consolidated Financial Statements
1. Consolidation Scope① Consolidated Subsidiaries
All subsidiaries are included in the consolidation
Number of consolidated subsidiaries:

148 companies② Unconsolidated Subsidiaries
None
2. Companies Accounted for by the Equity Method① Affiliates Accounted for under the Equity method
Number of affiliates: 11 affiliates② Subsidiaries Accounted for under the Equity method
None
3. Accounting standard(Fixed assets depreciation method)
Fixed asset depresiation has been computed by the declining balance method, intangeble asset
amortization has been computed by straight-line method.
Appropriate provision for additional depreciation to certain assets has been made to reflect
the use of machinery, tools, and fixture acquired before March 31st 2007 in excess of normal
depreciation schedules.
Intra-company developed software has been amortized by the straight-line method based on theusefulness period (five years) policy determined by the company.

Other disclosure are omitted due to the fact that there were no significant alternation fromthe Consolidated Financial Report issued on June 22nd, 2007.

Changes in the Basis of Consolidated Financial Statements(Change in fixed assets depeciation)
In accordance with the change mandated under the income tax law Aisin and its Japanese subsidiaries
have adopted the amended calculation method for all fixed assets acquired after April 1st, 2007.
For fixed assets acquired before March 31st, 2007 the past method for depreciation will be used until
the allowable limit for depreciation (95% of acquired cost). Then the remaining cost will be depreciatedevenly over five years starting from the following business year.
Effective from the financial year ending March 31st 2008, the depreciation method for assets acquired
before March 31st 2007 will be altered from appropriate provision to memorandum value for
additional depreciation.

13

(Accounting standard for Financial Instruments)
Effective from the financial year ending March 31st 2008, Aisin and its Japanese subsidiaries haveadopted new accounting standards based on“Accounting standard for Financial Instruments”(Accounting Standards Board of Japan; ASBJ Statement No.10 last updated on June 15th 2007) and“Implementation guidance on Financial Instruments” (Accounting Standards Board of Japan; ASBJ
Guidance No.14 last updated on July 4th 2007).
Effective from the financial year ending March 31st 2008, certificate of deposit has been shiftedfrom cash and cash equivalents to securities.

14

Notice concerning consolidated finalcial statements①

Segment Information【１．Industry Segments】
AISIN's main business is manufacturing and sales of automotive parts. The amount of sales and operating income inthis business occupies over 90% of total sales and operating income.
Therefore information of industry segments is omitted.
【２．Geographical Segments】
FY2007 （Apr. 2006 through Mar. 2007）
EuropeOthers373,537

174,837

161,673 2,378,611

314,019

9,143

6,524

1,982,582
1,883,567
99,015
1,837,711

382,680
374,592
8,088
265,182

181,362
177,452
3,910
99,488Japan
Ⅰ Sales and Operating Income
Sales
1,668,562(1) Customers(2) Inter-segment
Total
Operating Costs & Expenses
Operating Income
Ⅱ Assets（in Million Yen）
North
America

8,717

Total

Consolidated ConsoliAdjustment
dated

―

338,404 ( 338,404 )( 338,404 )( 337,584 )819 )(( 316,606 )Consolidated ConsoliAdjustment
dated

EuropeOthers406,396

195,442

235,750 2,700,405

362,243

9,623

7,764

Total
2,225,060
Operating Costs & Expenses 2,096,070
128,989
Operating Income
1,761,679
Ⅱ Assets

416,019
404,997
11,021
261,430

203,206
199,195
4,010
104,094(2) Inter-segment

9,797

Total

―

389,429 ( 389,429 )

245,548 3,089,835
208,159 2,908,423
37,389 181,411
203,717 2,330,921( 389,429 )( 388,502 )927 )(( 233,194 )Note: 1.Geographical segments are determined according to geographical closeness.
2.Main countries are
・ North America
・ Europe
・ Others:::

2,378,611
2,247,577
131,034
2,037,896（in Million Yen）
North
America

Ⅰ Sales and Operating Income
Sales
1,862,816(1) Customers―

170,390 2,717,016
149,550 2,585,162
20,840 131,854
152,119 2,354,502

FY2008 （Apr. 2007 through Mar. 2008）
Japan

2,378,611

U.S.A., Mexico
Belgium, Czech
Thailand, China

152,700,405―
2,700,405
2,519,921
180,484
2,097,727

【３．Sales by Customer Location】
FY2007 （Apr. 2006 through Mar. 2007）（in Million Yen）

North America

EuropeOthers

Total

Overseas Sales

415,763

205,129

237,637

858,530

Net Sales―――

2,378,611

Overseas Sales
Ratio to Net Sales

17.5

％

8.6

％

10.0

％

FY2008 （Apr. 2007 through Mar. 2008）36.1（in Million Yen）

North America

EuropeOthers

Total

Overseas Sales

452,841

230,888354,848

1,038,578

Net Sales―――

2,700,405

Overseas Sales
Ratio to Net Sales

16.8

％

％

8.6

％

13.1

％

38.5

％

Note: 1.Geographical segments are determined according to geographical closeness.
2.Main countries are
・ North America
・ Europe
・ Others:::

U.S.A., Canada
Germany, Sweden
Thailand, China, South Korea

16

② Amounts per share
FY2007(2006.4.1～2007.3.31)

FY2008(2007.4.1～2008.3.31)

Net assets excluding sharesubscription warrant and minority
interest per share（Yen）

2,662.78

2,725.67(2) Earnings Per Share（Yen）(3) Fully Diluted Earnings Per Share（Yen）

233.03232.71322.50322.15②Note : Bases for calculation
1. Net assets excluding share subscription warrant and minority interest per share

Total Net Assets（in Million Yen）
Amounts deducted from Total Net Assets（in Million Yen）
Subscription Warrant
Minority Interests
Total Net Assets related to common stock（in Million Yen）
Number of common stocks used to determine Equity
Per Share（thousand shares）

FY2007(2006.4.1～2007.3.31)
955,853

FY2008(2007.4.1～2008.3.31)
994,592

197,109

227,469（167）（196,941）（601）（226,867）

758,743

767,123

284,944

281,443

2. Earnings Per Share and Fully Diluted Earnings Per Share
FY2007(2006.4.1～2007.3.31)
Earnings Per ShareNet Income
Amount not reverted to the common stockholders（in Million Yen）
Net Income related to common stock（in Million Yen）
Number of Average Common Stocks（thousand shares）
Fully Diluted Earnings Per Share
Adjustment in Net Income （in Million Yen）
Increase in common stocks（thousand shares）
Subscription Warrant（thousand shares）

Shares excluded from diluted earnings per sharecalculation

17

FY2008(2007.4.1～2008.3.31)

66,88991,654――

66,88991,654

287,038

284,197

―
402
（402）

―
314
（314）
New share promissory
right 6,120①Resolution dateJune 21st, 2007
②Type of stock
Common stock③Grant price\4,799④Exercise Period
From August 1st, 2009 to
July 31st, 2013
⑤ One
new
share
promissory right shallbe 100 shares of common
stockUnconsolidated Balance Sheets
FY2007

FY2008(As of Mar. 31, 2007)(As of Mar. 31, 2008)

341,769
25,4252,432
150,368
28,734
5,745
834
11,415
3,293
560
15,1406,367
91,263435

398,631
16,8002,506
162,847
90,097
6,620
623
11,542
3,759
514
17,941
6,810
77,694
1,115〔 Assets 〕
Current Assets
Cash and Cash Equivalents
Trade Notes
Accounts Receivable
Marketable Securities
Product
Raw material
Goods in process
Storing goods
Prepaid Expenses
Deferred Tax Assets
Secured Income Receivable
Short-term Loans
OthersLess: Allowance for Doubtful
Accounts
Fixed Assets
Tangible Assets
Buildings
Structures
Machinery & Equipment
VehiclesTools, Furniture & Fixtures
Land
Construction in Progress
Intangible Assets
Good will
Software
OthersInvestments & Other Assets
Investments in Securities
Investments in stock ofsubsidiaries and affiliates
Contribution
Contribution for AssociatedCompanies
Long-term Loans
Long-term Prepaid Expenses
OthersLess: Allowance for Doubtful（Million Yen）

(

(

248 )

(

242

Variance

(

(

(

(
)

56,862
8,625 )
74
12,47961,363
875
211 )
127
466
46 )
2,801
443
13,569 )680
6727,287
182,260
53,587
13,291
63,896
1,018
11,60927,187
11,671
3,978
―
3,869
108
541,048
98,409656,531
193,448
55,142
12,96872,053
1,135
9,983
30,016
12,147
7,870
3,993
3,774
101
455,21272,621((((70,756 )11,188
1,555
323 )
8,157
117
1,626 )
2,829
476
3,892
3,993
95 )
7)
85,836 )25,788 )327,254

268,553(

58,701 )

996

958

(

38 )

22,305

22,69984,759
6,363
1,096
137 )

82,335
7,069
1,108
135

(

Total Assets

1,069,056

1,055,163

Note: 1. Accumulated depreciation
2. Guarantees on Liability

352,645382

372,456
384

18

(

(

(

394
(

2,424 )
706
12
2

(

13,893 ))19,811
2

（Million Yen）
FY2007

FY2008(As of Mar. 31, 2007)(As of Mar. 31, 2008)〔 Liabilities 〕
Current Liabilities
Trade Notes
Accounts Payable
Short-term Borrowings
Current Portion of Bonds
PayableAmount in Arrears
Accrued Expenses
Accrued Income Taxes
Deposits Received
Deposits Received from
Employees
Accrued Warranty Provision
OthersLong-term Liabilities
Bonds Payable
Long-term Debt
Deferred Tax Liabilities
Allowance for Employees
Retirement Benefits
Long-term Amount in
Arrears
OthersTotal Liabilities〔 Net Assets 〕
Shareholders' Equity
Common Stock
Capital Surplus
Capital Reserve
Other Capital Reserves
Retained Earnings
Legal Reserve
Voluntary reserve
Reserve for Special
Depreciation
Fixed Assets Compression
Reserve Fund
General Reserve
Unappropriated Retained
Earnings
Less:Treasury Stock, at Cost
Evaluation andConversion Difference
Net Unrealized Gain on
Available-for-sale Securities
Profit & Loss of Deferral
Hedge Accounting
Subscription Warrant
Total Net Assets
Total Liabilities
and Net Assets((

Variance

279,8832,852
108,663―

316,010
1,914
121,968
10,00015,000―(15,000 )19,63846,5899,952
61,77817,04652,723
8,688
87,005(2,592 )
6,134
1,264 )
25,227

7,351

7,372

6,876
1,180
347,577
20,000214,000
73,1568,443
845
348,02239,988224,000
34,86238,003((36,127938 )
13,305
10,000

21

(

1,567
335 )
445
19,98810,00038,294 )37,201

(

802 )

451

―

(

451 )

1,966
627,461

11,970664,033

10,00436,572

301,868
45,04963,13962,926212

305,379
45,04962,92662,926
―

3,511
―
212 )
―
212 )

233,429
10,285
223,144

253,484
10,285
243,199

506

371

(

135 )

2,784

2,613

(

171 )

112,500

112,500―

107,353

127,714

20,361

39,749 )56,081(

16,332 )

139,558

85,148(54,410 )140,229

86,333(53,896 )

671 )

1,184

(

513 )

167
441,595

601
391,129(434
50,466 )1,069,056

1,055,163(

13,893 )

19

(

(
(

20,055―20,055

Unconsolidated Statements of Income(Million Yen)

FY2007

FY2008(Apr.2006 throughMar.2007)(Apr.2007 throughMar.2008)

Net Sales

786,966

878,996

92,030

Cost of Sales

696,831

781,384

84,553Gross Profit

90,134

97,612

7,478

Selling, General &Administrative Expenses

61,59662,033437

Operating Income

28,53835,579

7,041

Non-Operating Income

16,622

23,305

6,683

Interest & Dividend Income

13,537

21,279

7,742

Other Income

3,085

2,026

Non-Operating Expenses

8,352

12,5784,226Interest Expense

2,613

4,052

1,439

Other Expenses

5,739

8,525

2,786

Ordinary Income

36,80846,306

9,498

Income Before Income Taxes
and Minority Interests

36,80846,306

9,498

Income Taxes-current

12,20015,1002,900

Income Taxes-deferred

(

2,504

)

(

3,461

Variance()(

1,059 )

957 )

Net Income

27,112

34,667

7,555

Note : Depreciation and amortization

33,25338,925

5,672

20

Non-Consolidated Statements of Changes in Shareholders' Equity
FY2007（Apr. 2006 through Mar. 2007）（Million Yen）
Shareholders' Equity

Capital Surplus

Retained Earnings
Other Retained Earnings

CommonStockReserve forReserve for Reduction
Legal Reserve
Special of AcquisiDepreci- tion Cost
ation
of Fixed
AssetsLess:
Treasury
Stock, atCost

Sub Total

GeneralReserve

UnappropriatedRetained
Earnings

112,500

90,428

216,910

353 )

―

―

760

―

―

Dividends Paid

( 10,296 ) (10,296 )(10,296 )Bonus of Directors andCorporate Auditors(

297 ) (

297 )

(

297 )

Balance as of Mar. 31, 2006

45,049

CapitalReserve

Other Capital
Surplus

Sub Total

62,926336

63,262

10,285536

3,161

Sub Total

(

790 )

324,432

Increase(Decrease)
in FY2007

353

Increase in Reserves(

Decrease in Reserves

383 ) ((

376 )

27,112Net Income

27,112

27,112(

Purchase of Treasury Stock
Disposal of Treasury Stock(123 ) (123 )(123 ) (

123 )

40,778 ) (40,778 )

1,819

1,695

Net Change of items otherthan Shareholders' Equity
Total Changes in the Term――

Balance as of Mar. 31, 2007

45,04962,926

212―

63,13910,285

Total
Net
Assets(506

Evaluation and Conversion Defference

Net Unrealized
Gain onAvailable-forsale Securities

Balance as of Mar. 31, 2006

Profit &Loss ofDeferralHedge
Accounting

Sub Total

Subscripition
Warrant―

121,415―

121,415445,848

Increase(Decrease)
in FY2007
Increase in Reserves―

Decrease in Reserves―

Dividends Paid(

10,296 )Bonus of Directors andCorporate Auditors

(

297 )
27,112Net Income(

Purchase of Treasury Stock

40,778 )1,695

Disposal of Treasury Stock
Net Change of items otherthan Shareholders' Equity

18,813(671 )

18,142

167

Total Changes in the Term

18,813(671 )

18,142

167

Balance as of Mar. 31, 2007

140,229(671 )

139,558167

18,310(29 ) (

4,253 )
441,595

21

376 )

―

16,925

16,518(38,959 ) (22,564 )2,784

112,500

107,353

233,429(

39,749 )301,868

FY2008（Apr. 2007 through Mar. 2008）（Million Yen）
Shareholders' Equity
Retained Earnings

Capital Surplus

Other Retained Earnings
CommonStock45,049Balance as of Mar. 31, 2007

CapitalReserve

Other Capital
Surplus

Sub Total

62,926

212

63,139Reserve forReserve for Reduction
Legal Reserve Special of AcquisiDepreci- tion Costof Fixed
ation
Assets

10,285

506

2,784

Less:
Treasury
Stock, atCost

Sub Total

39,749 )301,868

GeneralReserve

Unappropriated Retained
Earnings

Sub Total

112,500

107,353

233,429

51 )

―

―

357

―

―

13,693 ) (13,693 )34,667

34,667(

Increase(Decrease)
in FY2008

51

Increase in Reserves(

Decrease in Reserves

186 ) (

(

170 )
(

Dividends Paid
Net Income(

34,667(Purchase of Treasury Stock(212 ) (

212 )

― (

212 ) (

212 )Disposal of Treasury Stock

918 ) ((

13,693 )918 )19,436 ) (19,436 )

3,103

1,973

Net Change of items otherthan Shareholders' Equity
Total Changes in the Term―

Balance as of Mar. 31, 2008

45,04962,926― (－62,926

10,285

Profit &Loss ofDeferralHedge
Accounting

Sub Total

Subscripition
Warrant

Total
Net
Assets671 )139,558167

135 ) (

170 )―

20,36020,055(

16,332 )

3,510

371

2,613

112,500

127,714

253,484(

56,081 )

305,379

Evaluation and Conversion Defference

Net Unrealized
Gain onAvailable-forsale Securities

140,229

Balance as of Mar. 31, 2007(

441,595

Increase(Decrease)
in FY2008 Haｌf year
Increase in Reserves―

Decrease in Reserves―(

Dividends Paid

13,693 )34,667Net Income(

Purchase of Treasury Stock

19,436 )1,973

Disposal of Treasury Stock
Net Change of items otherthan Shareholders' Equity(

53,896 ) (513 ) (

54,410 )434(

53,975 )Total Changes in the Term(

53,896 ) (513 ) (

54,410 )434(

50,465 )85,148601

Balance as of Mar. 31, 2008

86,333( 1,184 )

391,129

Note ： Type and number of treasury stock(Shares)

Type of shares

Number as of Mar. 31, 2007

Common Stock

9,696,477

Reason for changes

Increase
4,254,307(Increase)

Purchase of stock approved by the Board of Directors
Purchase of stock less than unit
(Decrease) Exercised new share subscription rights
Sales of stock less than unit

22

Decrease

Number as of Mar. 31, 2007
753,173

4,244,500 shares
9,807
752,800 shares
373

13,197,611