Keihin Corporation is guided by two fundamental beliefs—

“Respect for the individual” and “The �ve joys.”

We believe that “Respect for the individual” encourages

self-reliance—to be free to express ideas and opinions and to

follow personal beliefs. The concept also emphasizes respect

for dierent perspectives and customs, and encourages

employees to treat each other with fairness and sincerity to

promote mutual trust.

“The �ve joys”—comprising society, customers, suppliers,

shareholders and ourselves—represent a shared commitment

to meeting multiple expectations.

Keihin aims to achieve the realization of its corporate

principle which states that “Keihin will continue to contribute

to the future of mankind by the continuous creation of new

value,” through activities grounded in this principle.

CO N TE N T S

Financial Highlights 01

Global Network 02

Main Products 04

President’s Message 05

Results by Geographical Region 08

Results by Products 09

Eleventh Medium-term Business Plan

2020 Vision

10

11

Corporate Governance 12

Directors and Corporate Auditors 13

Five-Year Summary of SelectedFinancial Data

14

Financial Review 15

Consolidated Balance Sheets 18

Consolidated Statements of Income

Consolidated Statements ofComprehensive Income

Consolidated Statements ofChanges in Net Assets

20

Consolidated Statements ofCash Flows

Notes to the ConsolidatedFinancial Statements

Report of Independent Auditors

Corporate Data 36

21

22

23

24

35

P R O F I L E

Forward-Looking StatementsThis annual report contains predictions and forecasts concerning Keihin’s future plans, strategies and results. These predictions and forecasts are not historical facts but represent judgments formed by management based on the information available at the time they were f o r m e d . A s su ch , a c tual re sul t s m ay d i e r signi�cantly due to factors including, but not limited to, economic trends, changes in the a u t o m o b i l e a n d a u t o m o b i l e c o m p o n e n t industries, market demand, foreign exchange rates and tax systems.

Notes:

1. The above amounts were prepared under accounting principles generally accepted in Japan.

2. U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only, at the rate of ¥83.15=US$1.

(See Note 3 to the Consolidated Financial Statements.)

Millions of yen(except per share amounts)

Thousands of U.S. dollars(except per share amounts)

20112008 2009 2010 2011

For the year:

Net sales ¥278,491¥339,321 ¥288,337 ¥255,938 $3,349,260

Operating income 21,59824,009 11,609 13,717 259,752

Income before income taxes and minority interests 19,57420,781 1,798 14,239 235,411

Net income 12,32411,201 (5,625) 7,634 148,219

At year-end:

Total net assets ¥140,927¥148,183 ¥126,938 ¥136,503 $1,694,853

Total assets 193,557213,502 183,751 193,741 2,327,805

Per share of common stock (yen and U.S. dollars):Net income: basic

Cash dividends

¥ 166.63¥ 151.44 ¥ (76.05) ¥ 103.21 $ 2.00

25.0036.00 28.00 21.00 0.30

Keihin Corporation and Keihin’s consolidated subsidiaries

For the years ended March 31, 2008, 2009, 2010 and 2011

Net sales (left scale)Operating income (right scale)

Net sales and operating income

Net sales (left scale)Net income per share (basic, right scale)

Net income and net income per share

Total assetsTotal net assets

Total assets and total net assets

400,000

300,000

200,000

100,000

0

40,000

30,000

20,000

10,000

0

(Millions of yen) (Millions of yen)

2007 2008 2009 2010 2011

18,000

12,000

6,000

0

-6,000

300

200

100

0

-100

(Millions of yen)

20112007 2008 2009 2010

240,000

180,000

120,000

60,000

0

(Millions of yen)

20112007 2008 2009 2010

Annual Report 2011 01

Financial Highlights

(yen)

Annual Report 2011 0302 Annual Report 2011

We will meet customer expectations by providing high-quality products through a global network.

China

Europe

Brazil

Keihin Europe Ltd.Glasgow

Taiwan Keihin Carburetor Co., Ltd.Taichung

Keihin Tecnologia do Brasil Ltda.AmazonasKeihin Panalfa Ltd.

Uttar Pradesh

Keihin FIE Pvt. Ltd.Maharashtra

Keihin Asia Bangkok Co., Ltd. Asian HeadquartersBangkok

Keihin (Thailand) Co., Ltd.Lamphun

Keihin Auto Parts (Thailand) Ltd.Ayutthaya

Keihin Sales and Development EuropeGmbHBayern

Taiwan

India

United Kingdom

Thailand

P.T. Keihin IndonesiaWest Java

Indonesia

Germany

Taiwan Keihin Carburetor Co., Ltd., established in 1981 in Taiwan, marked the beginning of our expansion abroad. Today, the Company

employs 17,130 people. Wherever our customers are in the world, they can rely on us for timely access to high-quality products.

Kakuda Plant 1

Kakuda Plant 2

Kakuda Plant 3

Kakuda HeadquartersKakuda Research & Development Center Kakuda-shi

Marumori PlantMarumori-machi

Kanazu Mfg. Co., Ltd.Kakuda-shi

Keihin Sogyo Co., Ltd.Kakuda-shi

Keihin Watari Co., Ltd.Watari-cho

Keihin Electronics Technology, Inc.Sendai-shi

Miyagi

Dongguan Keihin EngineManagement System Co., Ltd.Guangdong

Nanjing Keihin Carburetor Co., Ltd.Jiangsu

Keihin R&D China Co., Ltd.Shanghai

China

Suzuka PlantSuzuka-shi

Sayama PlantSayama-shi

Asaka OfficeAsaka-shi

Keihin Valve Corp.Yokohama-shi

Hamamatsu OfficeHamamatsu-shi

Tochigi

Kanagawa

Saitama

Shizuoka

Mie

Head officeShinjuku-ku

Tokyo

Global Network

Keihin Group 17,130 employees(The combined workforce as of March 31, 2011)

Keihin North America, Inc. American HeadquartersIndiana

Keihin Carolina System Technology, LLC.North Carolina

Keihin Aircon North America, Inc.IndianaKeihin IPT Manufacturing, LLC.Indiana

Keihin Michigan Manufacturing, LLC.Michigan

U.S.A.

Malaysia

Keihin Malaysia Manufacturing SDN. BHD.Melaka

Asia

Americas

Japan

Keihin Vietnam Co., Ltd.Hanoi

Vietnam

Motorcycles and Power ProductsMechanical Products for AutomobilesResearch & Development

Tochigi HeadquartersTochigi Research & Development CenterTakanezawa-machi

Nasu Seiki Mfg. Co., Ltd.Nasukarasuyama-shi

Annual Report 2011 0302 Annual Report 2011

We will meet customer expectations by providing high-quality products through a global network.

China

Europe

Brazil

Keihin Europe Ltd.Glasgow

Taiwan Keihin Carburetor Co., Ltd.Taichung

Keihin Tecnologia do Brasil Ltda.AmazonasKeihin Panalfa Ltd.

Uttar Pradesh

Keihin FIE Pvt. Ltd.Maharashtra

Keihin Asia Bangkok Co., Ltd. Asian HeadquartersBangkok

Keihin (Thailand) Co., Ltd.Lamphun

Keihin Auto Parts (Thailand) Ltd.Ayutthaya

Keihin Sales and Development EuropeGmbHBayern

Taiwan

India

United Kingdom

Thailand

P.T. Keihin IndonesiaWest Java

Indonesia

Germany

Taiwan Keihin Carburetor Co., Ltd., established in 1981 in Taiwan, marked the beginning of our expansion abroad. Today, the Company

employs 17,130 people. Wherever our customers are in the world, they can rely on us for timely access to high-quality products.

Kakuda Plant 1

Kakuda Plant 2

Kakuda Plant 3

Kakuda HeadquartersKakuda Research & Development Center Kakuda-shi

Marumori PlantMarumori-machi

Kanazu Mfg. Co., Ltd.Kakuda-shi

Keihin Sogyo Co., Ltd.Kakuda-shi

Keihin Watari Co., Ltd.Watari-cho

Keihin Electronics Technology, Inc.Sendai-shi

Miyagi

Dongguan Keihin EngineManagement System Co., Ltd.Guangdong

Nanjing Keihin Carburetor Co., Ltd.Jiangsu

Keihin R&D China Co., Ltd.Shanghai

China

Suzuka PlantSuzuka-shi

Sayama PlantSayama-shi

Asaka OfficeAsaka-shi

Keihin Valve Corp.Yokohama-shi

Hamamatsu OfficeHamamatsu-shi

Tochigi

Kanagawa

Saitama

Shizuoka

Mie

Head officeShinjuku-ku

Tokyo

Global Network

Keihin Group 17,130 employees(The combined workforce as of March 31, 2011)

Keihin North America, Inc. American HeadquartersIndiana

Keihin Carolina System Technology, LLC.North Carolina

Keihin Aircon North America, Inc.IndianaKeihin IPT Manufacturing, LLC.Indiana

Keihin Michigan Manufacturing, LLC.Michigan

U.S.A.

Malaysia

Keihin Malaysia Manufacturing SDN. BHD.Melaka

Asia

Americas

Japan

Keihin Vietnam Co., Ltd.Hanoi

Vietnam

Motorcycles and Power ProductsMechanical Products for AutomobilesResearch & Development

Tochigi HeadquartersTochigi Research & Development CenterTakanezawa-machi

Nasu Seiki Mfg. Co., Ltd.Nasukarasuyama-shi

04 Annual Report 2011

Main Products

With products that always bring leading-edge technologies into full play,Keihin will continue to contribute to the future of mankind.

■Automobile Products

Airbag system control unitElectronically controls airbag using signals picked up by sensors

Injector Throttle body

Engine control unit Fuel pump module

Intake manifold assemblyMixes the air with fuel delivered from the injector and supplies the mixture to the engine

Airbag system control unitDetects impact and sends a signal to deploy airbags

HVAC (Heating, ventilation and air-conditioning) UnitAir-conditioning system that maintains interior conditions, such as temperature and humidity, at comfortable levels

Power control unitElectronically controls the battery and motor in a hybrid vehicle

Electronic fuel injection system

Electronically controls the optimal supply of

fuel to the engine

CarburetorMechanically adjusts the air-fuel mixture supplied to the engine

■Motorcycles and Power Products

Engine control unitUses sensor-relayed information to ensure optimum quantity of air and fuel in the engine

President’s Message

Annual Report 2011 05

On behalf of the Board, I would like to say thank you for your ongoing support. It is truly appreciated.

Let me also take this time to extend our most heartfelt sympathies to all those affected by the Great East

Japan Earthquake. We hope that the reconstruction process moves toward completion as quickly as and as

smoothly as possible.

Turning now to business results for Keihin in fiscal 2011, ended March 31, 2011, I must begin with the

impact of the March 11 disasters on our own operations. The Keihin Group includes factories in the area of dev-

astation. Some structures and facilities sustained damage, and operations were temporarily suspended. Through

companywide reconstruction activities and the assistance of many people, we were able to get business activities

back on track fairly quickly. Although mentioned already at several other occasions, I would like to reiterate here

our deepest appreciation to everyone who has offered encouragement and support.

Now for business results. I am pleased to report that favorable conditions in developing countries, par-

ticularly the emerging markets of China and India, and gradual recovery in developed countries, generated

higher sales in all geographical segments. On the profit front, the reorganization of domestic operations and the

restructuring of operations in North America and Asia had some positive effects, substantiated by a significant

increase in consolidated net income.

Annual Report 2011 0706 Annual Report 2011

● Economic ConditionsThe economic environment surrounding the Group in scal 2011 was gener-

ally positive. Robust growth was prevalent in developing countries, while in

Europe and the United States, business conditions gradually improved

despite a few setbacks, notably nancial volatility in some parts of Europe.

　　In Japan, the national government’s economic stimulus package and steady exports to newly emerging markets helped sustain the domestic

recovery trend. Unfortunately, the Great East Japan Earthquake, which

occurred just before the scal year-end, shattered the optimistic outlook that

had been taking shape.

● Emphasis on New ProductsIn the motorcycle and power products business, scal 2011 activities were

highlighted by our rst delivery of carburetors to China’s largest manufac-

turer of motorcycles, Jiangmen Dachangjiang Group Co., Ltd. (Grand River

Group) Our carburetors are being utilized in models in three series: the

HJ110, HJ125 and HJ150. Also, our newly developed electronic fuel injection

system for scooters was utilized in the Honda GIORNO and other models.

　　In the automobile products business, fuel supply systems and air-conditioning systems, including electronic control units for motors and

batteries, were utilized in the Honda Fit Hybrid. Also of note, we delivered our

rst fuel supply systems to Maruti Suzuki India Limited, the largest

automaker in India, for its natural gas-powered Alto, Eeco, WagonR and Estilo.

● Production InitiativesWe introduced greater exibility into our production structure to expedite

responses to production changes and endeavored to boost production

eciency. We also embraced new precision processing technology and

executed additional cost reduction measures as approaches to strengthen

our manufacturing capabilities.

● Quality InitiativesWe continued the process started in scal 2010 to congure a global quality

standard for sharing quality information to enhance “recurrence prevention”

and a global operation standard for sharing manufacturing expertise to

improve “occurrence prevention.”

● Acquisition of Automobile Air-Conditioning Heat Exchanger BusinessTo boost cost-competitiveness and product development capabilities in the

air-conditioning system business, Keihin formed a basic agreement with

Showa Denko K.K. in October 2010 to acquire its automobile air-conditioning

heat exchanger business and concluded a nal agreement on the acquisition

in June 2011.

● Business PerformanceThrough the activities outlined above, in scal 2011, Keihin posted net sales

of ¥278,491 million, operating income of ¥21,598 million and net income of

¥12,324 million, on a consolidated basis.

● Return of Prots to ShareholdersAt Keihin, we consider the return of prots to shareholders to be one of our

most important management objectives. Our dividend policy depends on

consolidated business results over the long term and we consider future

business development in the determination of an appropriate dividend.

　　Looking at all factors, including consolidated performance in scal 2011, management decided on a year-end dividend of 13 per share, which when

added to the interim dividend, brought the annual dividend to ¥25 per share.

● Future Direction(Please see page 10 for details)The automobile market seems to be evolving on two di¢erent fronts. In

mature markets, such as those of developed countries, the emphasis is on

environmentally friendly vehicles, whereas in growth markets, such as those

of developing countries, the focus is on inexpensive vehicles. Against these

demand characteristics, Keihin Group embarked on its Eleventh Medium-

term Business Plan. The core strategies of this plan are to 1) enhance our

ability to respond to the diversication of market needs; 2) establish

optimum global operations; and 3) promote awareness building and

cultivate self-motivation and self-reliance. The objective is to infuse our

business structure with a dynamism that enables us to withstand the

pressures of global competition.

　　Recently, we restated our 2020 Vision with the goal of becoming a truly independent system components manufacturer able to compete with

mega-suppliers in products and technologies that contribute to a better

global environment. We are working toward reaching annual net sales of

¥600 billion and an operating income margin of 8% by 2020.

　　I ask for the continued support and encouragement of shareholders as we strive to reach our goals.

Jiangmen Dachangjiang Group Co., Ltd., HJ110 seriesmotorcycle featuring a Keihin carburetor.

June 30, 2011

President and CEO

Maruti Suzuki India Limited Estilo featuringKeihin fuel supply system.

Principal products of the Showa Denko K.K.automotive air-conditioner heat exchanger business

President’s Message

(yen)

Cash dividends per share(left scale)Net income per share(basic,right scale)

45

30

15

0

300

200

100

0

-100

(yen)

2008 2009 2010 2011

Eleventh Medium-term Business Plan

Operating income margin: Above 8%

Net sales: ¥600 billionOperating income margin: Above 8%

2020 VisionBecome a truly independent systemcomponents maker able to competewith mega-suppliers in products andtechnologies that contributeto a better global environment.

Infuse business structurewith the dynamism necessaryto ensure survival amidglobal competition

Targets

Evaporator Heater core

Condenser

Annual Report 2011 0706 Annual Report 2011

● Economic ConditionsThe economic environment surrounding the Group in scal 2011 was gener-

ally positive. Robust growth was prevalent in developing countries, while in

Europe and the United States, business conditions gradually improved

despite a few setbacks, notably nancial volatility in some parts of Europe.

　　In Japan, the national government’s economic stimulus package and steady exports to newly emerging markets helped sustain the domestic

recovery trend. Unfortunately, the Great East Japan Earthquake, which

occurred just before the scal year-end, shattered the optimistic outlook that

had been taking shape.

● Emphasis on New ProductsIn the motorcycle and power products business, scal 2011 activities were

highlighted by our rst delivery of carburetors to China’s largest manufac-

turer of motorcycles, Jiangmen Dachangjiang Group Co., Ltd. (Grand River

Group) Our carburetors are being utilized in models in three series: the

HJ110, HJ125 and HJ150. Also, our newly developed electronic fuel injection

system for scooters was utilized in the Honda GIORNO and other models.

　　In the automobile products business, fuel supply systems and air-conditioning systems, including electronic control units for motors and

batteries, were utilized in the Honda Fit Hybrid. Also of note, we delivered our

rst fuel supply systems to Maruti Suzuki India Limited, the largest

automaker in India, for its natural gas-powered Alto, Eeco, WagonR and Estilo.

● Production InitiativesWe introduced greater exibility into our production structure to expedite

responses to production changes and endeavored to boost production

eciency. We also embraced new precision processing technology and

executed additional cost reduction measures as approaches to strengthen

our manufacturing capabilities.

● Quality InitiativesWe continued the process started in scal 2010 to congure a global quality

standard for sharing quality information to enhance “recurrence prevention”

and a global operation standard for sharing manufacturing expertise to

improve “occurrence prevention.”

● Acquisition of Automobile Air-Conditioning Heat Exchanger BusinessTo boost cost-competitiveness and product development capabilities in the

air-conditioning system business, Keihin formed a basic agreement with

Showa Denko K.K. in October 2010 to acquire its automobile air-conditioning

heat exchanger business and concluded a nal agreement on the acquisition

in June 2011.

● Business PerformanceThrough the activities outlined above, in scal 2011, Keihin posted net sales

of ¥278,491 million, operating income of ¥21,598 million and net income of

¥12,324 million, on a consolidated basis.

● Return of Prots to ShareholdersAt Keihin, we consider the return of prots to shareholders to be one of our

most important management objectives. Our dividend policy depends on

consolidated business results over the long term and we consider future

business development in the determination of an appropriate dividend.

　　Looking at all factors, including consolidated performance in scal 2011, management decided on a year-end dividend of 13 per share, which when

added to the interim dividend, brought the annual dividend to ¥25 per share.

● Future Direction(Please see page 10 for details)The automobile market seems to be evolving on two di¢erent fronts. In

mature markets, such as those of developed countries, the emphasis is on

environmentally friendly vehicles, whereas in growth markets, such as those

of developing countries, the focus is on inexpensive vehicles. Against these

demand characteristics, Keihin Group embarked on its Eleventh Medium-

term Business Plan. The core strategies of this plan are to 1) enhance our

ability to respond to the diversication of market needs; 2) establish

optimum global operations; and 3) promote awareness building and

cultivate self-motivation and self-reliance. The objective is to infuse our

business structure with a dynamism that enables us to withstand the

pressures of global competition.

　　Recently, we restated our 2020 Vision with the goal of becoming a truly independent system components manufacturer able to compete with

mega-suppliers in products and technologies that contribute to a better

global environment. We are working toward reaching annual net sales of

¥600 billion and an operating income margin of 8% by 2020.

　　I ask for the continued support and encouragement of shareholders as we strive to reach our goals.

Jiangmen Dachangjiang Group Co., Ltd., HJ110 seriesmotorcycle featuring a Keihin carburetor.

June 30, 2011

President and CEO

Maruti Suzuki India Limited Estilo featuringKeihin fuel supply system.

Principal products of the Showa Denko K.K.automotive air-conditioner heat exchanger business

President’s Message

(yen)

Cash dividends per share(left scale)Net income per share(basic,right scale)

45

30

15

0

300

200

100

0

-100

(yen)

2008 2009 2010 2011

Eleventh Medium-term Business Plan

Operating income margin: Above 8%

Net sales: ¥600 billionOperating income margin: Above 8%

2020 VisionBecome a truly independent systemcomponents maker able to competewith mega-suppliers in products andtechnologies that contributeto a better global environment.

Infuse business structurewith the dynamism necessaryto ensure survival amidglobal competition

Targets

Evaporator Heater core

Condenser

Annual Report 2011 0908 Annual Report 2011

Results by Geographical Region Results by Products

Net Sales200,000

150,000

100,000

50,000

0

(Millions of yen)

2010 20112007 2008 2009 2010 20112007 2008 2009

In the motorcycle and power prod-

ucts business, we recorded higher

sales, especial ly to Asia . In the

automobile products business, we

experienced a drop in sales, due to

the Great East Japan Earthquake, but

showed an increase in sales to North

America, Asia and China. As a result,

net sales from operations in Japan

reached ¥146,459 million.

Despite unfavorable exchange rates

due to the yen’ s appreciation, we

recorded higher sales of automobile

products, fueled by recovery in North

American markets, and higher sales of

motorc ycle and power product

components, especially in Brazil. This

generated ¥73,072 million in net sales

from operations in the Americas.

The yen’ s appreciation against local

currencies put pressure on results

from operations in Europe on a yen

basis, nevertheless, net sales climbed

to ¥5,793 million.

Net Sales

Americas

120,000

90,000

60,000

30,000

0

(Millions of yen)

Net Sales

Europe

12,000

9,000

6,000

3,000

0

(Millions of yen)Net Sales

Asia China

(Millions of yen)

Net Sales

¥73.1billion

Net Sales

¥80.7billion

Net Sales

¥34.1billion

JapanNet Sales

¥146.5billion

Net Sales

¥5.8billion

2010 20112007 2008 20092010 20112007 2008 2009

120,000

100,000

80,000

60,000

40,000

20,000

0

Asia China

From 2010, segment of net sales by geographical region nave been changed to ve regions from four regions.

Motorcycles and Power Products Automobile Products

Net Sales

¥85.3billionNet Sales

¥193.2billion

December 31

¥400 million

Keihin Corporation 60%Showa Denko K.K. 40%

Manufacture and sale of automobileair-conditioning heat exchangers, etc.

Solid demand oset the unfavorable impact of converting local currencies into yen. Sales to customers in emerging markets were brisk, highlighted by large increases in the volume of carburetors sold in India, up 20% year-on-year, to 9.54 million units, and in Indonesia, up 27% year-on-year, to 5.20 million units. Sales of fuel injection systems improved, especially in Thailand. As a result, net sales in the motorcycle and power products segment resumed an upward path, rising ¥15,690 million in scal 2011, to ¥85,329 million.

The impact of exchange rates as well as the destruction caused by the Great East Japan Earthquake aected the automobile products business. However, net sales in this segment rallied ¥6,863 million from the drop in scal 2010, to ¥193,162 million in scal 2011.

69.4%

Percentage of total net sales

30.6%

Percentage of total net sales

● Acquisition of Business Gives Keihin Competitive Edge in the Air-Conditioning Systems BusinessIn October 2010, Keihin concluded a basic agreement with Showa Denko K.K. on the transfer of the latter’s automobile

air-conditioning heat exchanger business and signed a nal agreement with the company in June 2011.

　　Management at Keihin felt that the Company needed sharper cost competitiveness and enhanced product development capabilities in its air-conditioning systems business—a core business segment—to successfully respond to the major changes

that prevail in market environments at home and abroad. Through the acquisition of shares in a subsidiary recently established

by Showa Denko to take over its global automobile air-conditioning heat exchanger business, which provides critical parts for

automobile air-conditioning systems, Keihin will greatly reinforce the competitiveness of its associated lines.

Name

Address

Scope of business

Year-end

Paid-in capital

Shareholder composition

■Outline of the New Company(after Keihin’s acquisition of 60% equity)October 20112013

The purchase price will be an amount calculated from the market value of ¥8 billion with the addition of cash equivalents at the time Keihin assumes operations of the subject business, less interest-bearing debt.

■Schedule

about ¥8 billion■Purchase price

AsiaNet sales from the rest of Asia reached ¥80,656 million. This reflects expanded sales of components for motorcycle and power products in Thailand, Indonesia, India and Taiwan, and growth in sales of automobile products in Thailand.

ChinaThe yuan-to-yen exchange rate affected results, but favorable market conditions in China precipitated an increase in sales of automobile products as well as components for motorcycles and power products that foreign exchange conversion could not erase. Net sales from operations in China came to ¥34,147 million.

Keihin Thermal Technology Corporation

1-480, Inuzuka, Oyama, Tochigi

Acquire 60% equity in new companyAcquire remaining equity innew company

Annual Report 2011 0908 Annual Report 2011

Results by Geographical Region Results by Products

Net Sales200,000

150,000

100,000

50,000

0

(Millions of yen)

2010 20112007 2008 2009 2010 20112007 2008 2009

In the motorcycle and power prod-

ucts business, we recorded higher

sales, especial ly to Asia . In the

automobile products business, we

experienced a drop in sales, due to

the Great East Japan Earthquake, but

showed an increase in sales to North

America, Asia and China. As a result,

net sales from operations in Japan

reached ¥146,459 million.

Despite unfavorable exchange rates

due to the yen’ s appreciation, we

recorded higher sales of automobile

products, fueled by recovery in North

American markets, and higher sales of

motorc ycle and power product

components, especially in Brazil. This

generated ¥73,072 million in net sales

from operations in the Americas.

The yen’ s appreciation against local

currencies put pressure on results

from operations in Europe on a yen

basis, nevertheless, net sales climbed

to ¥5,793 million.

Net Sales

Americas

120,000

90,000

60,000

30,000

0

(Millions of yen)

Net Sales

Europe

12,000

9,000

6,000

3,000

0

(Millions of yen)Net Sales

Asia China

(Millions of yen)

Net Sales

¥73.1billion

Net Sales

¥80.7billion

Net Sales

¥34.1billion

JapanNet Sales

¥146.5billion

Net Sales

¥5.8billion

2010 20112007 2008 20092010 20112007 2008 2009

120,000

100,000

80,000

60,000

40,000

20,000

0

Asia China

From 2010, segment of net sales by geographical region nave been changed to ve regions from four regions.

Motorcycles and Power Products Automobile Products

Net Sales

¥85.3billionNet Sales

¥193.2billion

December 31

¥400 million

Keihin Corporation 60%Showa Denko K.K. 40%

Manufacture and sale of automobileair-conditioning heat exchangers, etc.

Solid demand oset the unfavorable impact of converting local currencies into yen. Sales to customers in emerging markets were brisk, highlighted by large increases in the volume of carburetors sold in India, up 20% year-on-year, to 9.54 million units, and in Indonesia, up 27% year-on-year, to 5.20 million units. Sales of fuel injection systems improved, especially in Thailand. As a result, net sales in the motorcycle and power products segment resumed an upward path, rising ¥15,690 million in scal 2011, to ¥85,329 million.

The impact of exchange rates as well as the destruction caused by the Great East Japan Earthquake aected the automobile products business. However, net sales in this segment rallied ¥6,863 million from the drop in scal 2010, to ¥193,162 million in scal 2011.

69.4%

Percentage of total net sales

30.6%

Percentage of total net sales

● Acquisition of Business Gives Keihin Competitive Edge in the Air-Conditioning Systems BusinessIn October 2010, Keihin concluded a basic agreement with Showa Denko K.K. on the transfer of the latter’s automobile

air-conditioning heat exchanger business and signed a nal agreement with the company in June 2011.

　　Management at Keihin felt that the Company needed sharper cost competitiveness and enhanced product development capabilities in its air-conditioning systems business—a core business segment—to successfully respond to the major changes

that prevail in market environments at home and abroad. Through the acquisition of shares in a subsidiary recently established

by Showa Denko to take over its global automobile air-conditioning heat exchanger business, which provides critical parts for

automobile air-conditioning systems, Keihin will greatly reinforce the competitiveness of its associated lines.

Name

Address

Scope of business

Year-end

Paid-in capital

Shareholder composition

■Outline of the New Company(after Keihin’s acquisition of 60% equity)October 20112013

The purchase price will be an amount calculated from the market value of ¥8 billion with the addition of cash equivalents at the time Keihin assumes operations of the subject business, less interest-bearing debt.

■Schedule

about ¥8 billion■Purchase price

AsiaNet sales from the rest of Asia reached ¥80,656 million. This reflects expanded sales of components for motorcycle and power products in Thailand, Indonesia, India and Taiwan, and growth in sales of automobile products in Thailand.

ChinaThe yuan-to-yen exchange rate affected results, but favorable market conditions in China precipitated an increase in sales of automobile products as well as components for motorcycles and power products that foreign exchange conversion could not erase. Net sales from operations in China came to ¥34,147 million.

Keihin Thermal Technology Corporation

1-480, Inuzuka, Oyama, Tochigi

Acquire 60% equity in new companyAcquire remaining equity innew company

Cultivate new markets for internal combustionengine components business.

3rd Step

Annual Report 2011 1110 Annual Report 2011

Looking Back at the Tenth Medium-term Business PlanDuring the Tenth Medium-term Business Plan, which ended in March 2011, the operating environment transformed faster than anyone could have imagined, highlighted on one side by a slowdown in developed countries because of the global nancial crisis, and on the other by huge growth in developing countries, particularly emerging markets like China and India. 　　Against this backdrop, we remained true to the roadmap of our Tenth Medium-term Business Plan, that emphasizes four key strategies—1) create a structure that enables the Group to demonstrate our capacity for innovation; 2) achieve and maintain unparalleled levels of product quality worldwide; 3) build a highly price-competitive cost structure; and 4) cultivate a corporate culture that promotes originality—to attain corporate capabilities and foster a corporate climate to overcome market challenges. 　　In addition, to deal with the erratic changes characterizing the operating environment, we reorganized domestic production and distribution divisions and restructured operations, including the establishment of operations headquarters in the Americas and in Asia to oversee activities in those areas.

　　We were able to recover quickly from the disruption caused by the recent disasters in Japan because of daily eorts built around the newly raised awareness of the potential for large-scale destruction. The situation did, however, highlight issues that need to be addressed for the stable execution of corporate activities.

Goals of the Eleventh Medium-term Business PlanIn our outlook for the future, we see the automobile market evolving on two dierent fronts. In mature markets, including developed countries, the emphasis is on environment-friendly vehicles, whereas in growth markets, including developing countries, the focus is on inexpensive vehicles. 　　Given these demand characteristics and seeking to address lingering issues from the Tenth Medium-term Business Plan, we embarked on our Eleventh Medium-term Business Plan with the objective to infuse our business structure with a dynamism that will enable us to withstand the pressures of global competition. The core strategies of the plan are the following—1) enhance our ability to respond to the diversication of market needs; 2) establish optimum global operations; and 3) promote awareness building and foster the qualities of self-motivation and self-reliance.

Eleventh Medium-term Business Plan

Tenth Medium-term Business Plan

Eleventh Medium-term Business Plan

Objective

Objective

Attain corporate capabilities and foster a corporateclimate to overcome market challenges.

Eleventh Medium-term Business Plan

Operating income margin above 8%

Expand NGV* business and cultivate new markets forair-conditioning system components business.

Three corebusinesssegments

N o.1

Business environment and lingering issues from the Tenth Medium-term Business Plan

Enhance our ability to respond to the diversication of market needs.

Establish optimum global operations.

Promote awareness building and cultivate self-motivation and self-reliance.

Internalcombustion enginecomponents

N o. 2Air-conditioningsystemcomponents

N o. 3HEV/EV andhydraulically poweredcomponents

2020 Targets

Net sales : ¥600 billion, Operating income margin : avobe 8%

1st Step

2nd Step

(April 2011 to March 2014)

Enhance ability to respondto diversicationof market needs.

Establish optimumglobal operations.

Promote awareness buildingand cultivate self-motivation

and self-reliance.

2020 Vision

Our 2020 Vision denes the type of Group we aim to be by 2020. Founded on three core business segments: internal combustion engine components, our main business for automobiles, motorcycles and power products; air-conditioning system components, aiming for further growth based on acquisition of business from Showa Denko K.K; and hybrid electric vehicle (HEV)/Electric vehicle (EV) and hydraulically powered components, the market expected to expand in future. We will establish ourselves as a truly independent system components maker able to compete with mega-suppliers in products and technologies that contribute to a better global environment.

*Natural gas vehicle

2020Vision

Infuse business structure with a dynamism thatenables Keihin to withstand the pressures of global competition.

We will become a truly independent systemcomponents manufacturer able to compete withmega-suppliers in products and technologies thatcontribute to a better global environment.

Infuse business structure with the dynamism necessaryto survive global competition.

Eleventh Medium-term Business Plan

Cultivate new markets for internal combustionengine components business.

3rd Step

Annual Report 2011 1110 Annual Report 2011

Looking Back at the Tenth Medium-term Business PlanDuring the Tenth Medium-term Business Plan, which ended in March 2011, the operating environment transformed faster than anyone could have imagined, highlighted on one side by a slowdown in developed countries because of the global nancial crisis, and on the other by huge growth in developing countries, particularly emerging markets like China and India. 　　Against this backdrop, we remained true to the roadmap of our Tenth Medium-term Business Plan, that emphasizes four key strategies—1) create a structure that enables the Group to demonstrate our capacity for innovation; 2) achieve and maintain unparalleled levels of product quality worldwide; 3) build a highly price-competitive cost structure; and 4) cultivate a corporate culture that promotes originality—to attain corporate capabilities and foster a corporate climate to overcome market challenges. 　　In addition, to deal with the erratic changes characterizing the operating environment, we reorganized domestic production and distribution divisions and restructured operations, including the establishment of operations headquarters in the Americas and in Asia to oversee activities in those areas.

　　We were able to recover quickly from the disruption caused by the recent disasters in Japan because of daily eorts built around the newly raised awareness of the potential for large-scale destruction. The situation did, however, highlight issues that need to be addressed for the stable execution of corporate activities.

Goals of the Eleventh Medium-term Business PlanIn our outlook for the future, we see the automobile market evolving on two dierent fronts. In mature markets, including developed countries, the emphasis is on environment-friendly vehicles, whereas in growth markets, including developing countries, the focus is on inexpensive vehicles. 　　Given these demand characteristics and seeking to address lingering issues from the Tenth Medium-term Business Plan, we embarked on our Eleventh Medium-term Business Plan with the objective to infuse our business structure with a dynamism that will enable us to withstand the pressures of global competition. The core strategies of the plan are the following—1) enhance our ability to respond to the diversication of market needs; 2) establish optimum global operations; and 3) promote awareness building and foster the qualities of self-motivation and self-reliance.

Eleventh Medium-term Business Plan

Tenth Medium-term Business Plan

Eleventh Medium-term Business Plan

Objective

Objective

Attain corporate capabilities and foster a corporateclimate to overcome market challenges.

Eleventh Medium-term Business Plan

Operating income margin above 8%

Expand NGV* business and cultivate new markets forair-conditioning system components business.

Three corebusinesssegments

N o.1

Business environment and lingering issues from the Tenth Medium-term Business Plan

Enhance our ability to respond to the diversication of market needs.

Establish optimum global operations.

Promote awareness building and cultivate self-motivation and self-reliance.

Internalcombustion enginecomponents

N o. 2Air-conditioningsystemcomponents

N o. 3HEV/EV andhydraulically poweredcomponents

2020 Targets

Net sales : ¥600 billion, Operating income margin : avobe 8%

1st Step

2nd Step

(April 2011 to March 2014)

Enhance ability to respondto diversicationof market needs.

Establish optimumglobal operations.

Promote awareness buildingand cultivate self-motivation

and self-reliance.

2020 Vision

Our 2020 Vision denes the type of Group we aim to be by 2020. Founded on three core business segments: internal combustion engine components, our main business for automobiles, motorcycles and power products; air-conditioning system components, aiming for further growth based on acquisition of business from Showa Denko K.K; and hybrid electric vehicle (HEV)/Electric vehicle (EV) and hydraulically powered components, the market expected to expand in future. We will establish ourselves as a truly independent system components maker able to compete with mega-suppliers in products and technologies that contribute to a better global environment.

*Natural gas vehicle

2020Vision

Infuse business structure with a dynamism thatenables Keihin to withstand the pressures of global competition.

We will become a truly independent systemcomponents manufacturer able to compete withmega-suppliers in products and technologies thatcontribute to a better global environment.

Infuse business structure with the dynamism necessaryto survive global competition.

Eleventh Medium-term Business Plan

Corporate Governance Directors and Corporate Auditors

Basic ConceptAt Keihin, we believe that enhancing corporate governance practices is a top management priority. Good governance will allow us to raise corporate value through global business development and will raise the level of con�dence shareholders, customers and society as a whole have in us. With this in mind, we endeavor to strengthen compliance and risk management in developing our operations and strive to improve corporate ethics.

StructureAs a business organization, Keihin seeks to elicit a deeper sense of trust from stakeholders by encouraging everyone within the Group in oces around the world to consider the issues and become ambassadors of the Company with a full understanding of the Keihin Philosophies and our Declaration of Conduct. 　　The Company’s directors frequently discuss executive tasks and their supervision at meetings of important management groups, including the Board of Directors, which comprises directors with abundant experience in the automobile and motor-cycle industry, and the Executive Council. 　　The Company also has a Board of Corporate Auditors, comprising four corporate auditors, three of whom are external corporate auditors. The corporate auditors possess a wealth of experience and knowledge, and their insights into specialized �elds serve to supervise and audit the execution of business activities and directors’ responsibilities in an independent and impartial way. 　　Organizational management is based upon the Keihin Philosophies. We maintain a business supervision headquarters

and several regional and functional headquarters, implement exible organizational management practices, and assign directors to key business and operational headquarters and divisions. In addition, we maintain a highly eective and ecient business execution system to facilitate discussion of issues at meetings attended by directors and also by the Executive Council, which focuses on important management topics within the scope of authority delegated by the Board of Directors.

Measures Taken1. We have installed a corporate governance promotion ocer in

the Legal Aairs and Public Relations Division who veri�es matters related to compliance and corporate ethics and ensures improvements are properly applied to operations if and when changes are required.

2. We have a corporate ethics improvement and comments desk, which functions as an access point for suggestions and noti�ca-tion on issues from in-house sources.

3. We drafted our Declaration of Conduct as a shared set of guide-lines for appropriate behavior at the Company and all its subsid-iaries.

4. For compliance and risk management, especially, self-checks are undertaken by business and operational headquarters and divisions on a regular basis, using a checklist, and the results are presented to the director responsible who prepares a plan for improvement.

5. We adhere to Rules of Compliance and Rules Regarding Risk Management and appoint directors responsible for promoting measures associated with compliance and risk, respectively. Senior Managing Director and

Representative Director

Kazuoki Ukiana

Senior Managing Director andRepresentative Director

Masaaki Koike

Senior Managing Director andRepresentative Director

Masami Watanabe

President & CEO andRepresentative Director

Tsuneo Tanai

President & CEO andRepresentative Director

Senior Managing Director andRepresentative Director

Managing Directors

Directors

Auditors

Tsuneo Tanai

Kazuoki Ukina Masami Watanabe Masaaki Koike

Hiroshi Irino Kazuhiro Hashiyama

Chugo Sato Hiroshi Yoshizawa Koki Onuma Takeshi Iwata

Takashi Namari Hiroshi Seikai Nobuaki Suzuki Toru Mitsubori

Toshihiro Kuroki Genichiro Konno Hirohisa Amano

Tetsuro Suzuki Katsuyuki Matsui Yasuhiko Narita Masato Tsukahara

(As of June 24, 2011)

General Shareholders’ Meeting

Board of DirectorsBoard of Corporate Auditors

Compliance Ocer Risk ManagementOcer

Corporate Governance Oce

External Auditors

Organizational Structure

Annual Report 2011 1312 Annual Report 2011

Executive Council

CorporateAuditors’ Oce

BusinessSupervision

Headquarters

ProductionHeadquarters

QualityAssurance

Headquarters

AmericasHeadquarters

ChinaHeadquarters

BusinessPlanning

Oce

DevelopmentHeadquarters

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

ProcurementOce

RiskManagementHeadquarters

AsiaHeadquarters

EuropeSupervisory

Oce

Corporate Ethics Improvementand Comments Desk

Auditors’ Oce

(InternalAudit Division)

Corporate Governance Directors and Corporate Auditors

Basic ConceptAt Keihin, we believe that enhancing corporate governance practices is a top management priority. Good governance will allow us to raise corporate value through global business development and will raise the level of con�dence shareholders, customers and society as a whole have in us. With this in mind, we endeavor to strengthen compliance and risk management in developing our operations and strive to improve corporate ethics.

StructureAs a business organization, Keihin seeks to elicit a deeper sense of trust from stakeholders by encouraging everyone within the Group in oces around the world to consider the issues and become ambassadors of the Company with a full understanding of the Keihin Philosophies and our Declaration of Conduct. 　　The Company’s directors frequently discuss executive tasks and their supervision at meetings of important management groups, including the Board of Directors, which comprises directors with abundant experience in the automobile and motor-cycle industry, and the Executive Council. 　　The Company also has a Board of Corporate Auditors, comprising four corporate auditors, three of whom are external corporate auditors. The corporate auditors possess a wealth of experience and knowledge, and their insights into specialized �elds serve to supervise and audit the execution of business activities and directors’ responsibilities in an independent and impartial way. 　　Organizational management is based upon the Keihin Philosophies. We maintain a business supervision headquarters

and several regional and functional headquarters, implement exible organizational management practices, and assign directors to key business and operational headquarters and divisions. In addition, we maintain a highly eective and ecient business execution system to facilitate discussion of issues at meetings attended by directors and also by the Executive Council, which focuses on important management topics within the scope of authority delegated by the Board of Directors.

Measures Taken1. We have installed a corporate governance promotion ocer in

the Legal Aairs and Public Relations Division who veri�es matters related to compliance and corporate ethics and ensures improvements are properly applied to operations if and when changes are required.

2. We have a corporate ethics improvement and comments desk, which functions as an access point for suggestions and noti�ca-tion on issues from in-house sources.

3. We drafted our Declaration of Conduct as a shared set of guide-lines for appropriate behavior at the Company and all its subsid-iaries.

4. For compliance and risk management, especially, self-checks are undertaken by business and operational headquarters and divisions on a regular basis, using a checklist, and the results are presented to the director responsible who prepares a plan for improvement.

5. We adhere to Rules of Compliance and Rules Regarding Risk Management and appoint directors responsible for promoting measures associated with compliance and risk, respectively. Senior Managing Director and

Representative Director

Kazuoki Ukiana

Senior Managing Director andRepresentative Director

Masaaki Koike

Senior Managing Director andRepresentative Director

Masami Watanabe

President & CEO andRepresentative Director

Tsuneo Tanai

President & CEO andRepresentative Director

Senior Managing Director andRepresentative Director

Managing Directors

Directors

Auditors

Tsuneo Tanai

Kazuoki Ukina Masami Watanabe Masaaki Koike

Hiroshi Irino Kazuhiro Hashiyama

Chugo Sato Hiroshi Yoshizawa Koki Onuma Takeshi Iwata

Takashi Namari Hiroshi Seikai Nobuaki Suzuki Toru Mitsubori

Toshihiro Kuroki Genichiro Konno Hirohisa Amano

Tetsuro Suzuki Katsuyuki Matsui Yasuhiko Narita Masato Tsukahara

(As of June 24, 2011)

General Shareholders’ Meeting

Board of DirectorsBoard of Corporate Auditors

Compliance Ocer Risk ManagementOcer

Corporate Governance Oce

External Auditors

Organizational Structure

Annual Report 2011 1312 Annual Report 2011

Executive Council

CorporateAuditors’ Oce

BusinessSupervision

Headquarters

ProductionHeadquarters

QualityAssurance

Headquarters

AmericasHeadquarters

ChinaHeadquarters

BusinessPlanning

Oce

DevelopmentHeadquarters

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

ProcurementOce

RiskManagementHeadquarters

AsiaHeadquarters

EuropeSupervisory

Oce

Corporate Ethics Improvementand Comments Desk

Auditors’ Oce

(InternalAudit Division)

Five-Year Summary of Selected Financial Data

Annual Report 2011 1514 Annual Report 2011

2007 2008 2009 2010 2011 2011

For the year :

　Net sales ¥ 330,612 ¥ 339,321 ¥ 288,337 ¥ 255,938 $ 3,349,260　　Results by geographical region　　　Japan 185,583 182,094 152,729 132,464 1,761,382　　　Americas 111,807 108,227 83,203 67,960 878,801　　　Asia 75,560 91,453 92,336 67,643 970,007

　　　Europe 8,704 10,862 7,764 5,273 69,663　　　Consolidated adjustments (51,042) (53,315) (47,695) (48,052) (741,267)

　　Results by products　　　Motorcycles and power products - - 76,862 69,639 1,026,200　　　Mechanical products for automobiles - - 211,475 186,299 2,323,060

　　Results by products　　　Motorcycles and power products 74,181 81,603 - - - 　　　Mechanical products for automobiles 120,310 117,055 - - - 　　　Electronic control units 73,051 74,720 - - - 　　　Air-conditioning systems 63,070 65,943 - - -

　Operating income 22,113 24,009 11,609 13,717 259,752　Ordinary income 23,375 24,457 9,887 15,362 260,911　Income before income taxes and minority interests 23,554 20,781 1,798 14,239 235,411　Net income (loss) 12,846 11,201 (5,625) 7,634 148,219

181,433150,552

　Research and development expenses 15,946 14,983 14,404 14,150 　Capital expenditures 22,538 19,129 17,975 9,366

At year-end :

　Total net assets ¥ 143,454 ¥ 148,183 ¥ 126,938 ¥ 136,503 $ 1,694,853　Total assetsPer share of common stock (yen and U.S. dollars):

210,758 213,502 183,751 193,741 2,327,805173.38 151.44 (76.05) 103.21 2.00

　Net income (loss) : Basic32.00 36.00 28.00 21.00 0.30

19.94　　　　　　　　 Cash dividends　　　　　　　　 Net assets 1,669.98 1,716.16 1,481.22 1,580.33

Cash �ows

　Cash ows from operating activities ¥ 27,689 ¥ 33,734 ¥ 17,858 ¥ 16,661 $ 328,991　Cash ows from investing activities (25,109) (23,038) (16,814) (11,707) (130,552)　Cash ows from nancing activities (3,691) (6,119) 54 (2,163) (77,251) 　Cash and cash equivalents at end of year 31,125 34,369 31,856 34,506

¥ 278,491

146,45973,07280,656

5,793　　　China - - - 30,650 410,67434,147

(61,636)

85,329193,162

- - - -

21,59821,69519,57412,324

　Comprehensive income - - - 11,845 105,8548,80215,08612,518

¥ 140,927193,557

166.63

25.00 1,658.08

¥ 27,355(10,855)

(6,423) 42,638 512,788

For the years ended March 31, 2007, 2008, 2009, 2010 and 2011

Notes :1. The above amounts were prepared under accounting principles generally accepted in Japan.2. U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only, at the rate of ¥83.15=US$1. (See Note 3 to the Consolidated Financial Statements.)3. From scal 2009, Keihin’s four previous business segments have been consolidated into two business segments.4. From scal 2011, ended March 31, 2011, the Company applies “Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ

Statement No. 17, issued March 27, 2009) and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ Guid-ance No. 20, issued March 21, 2008). Consequently, the breakdown of net sales by geographical segment increased to ve from four.

5. From scal 2011, the Company applies the “Accounting Standard for Comprehensive Income” (ASBJ Statement No. 25, issued June 30, 2010).Notes : Keihin’s four previous business segments were consolidated into two business segments in scal 2009.

Millions of yen(except per share amounts)

Thousands of U.S. dollars(except per share amounts)

Results of Operations

■Net SalesThe Great East Japan Earthquake, which struck toward the end of scal 2011, had an enormous impact on the domestic economy. However, overseas, developing countries continued to demonstrate signicant economic growth. Keihin was able to capitalize on opportunities and minimize challenges in this operating environment, securing an 8.8% increase in consolidated net sales over the previous scal year, to ¥278,491 million(US $3,349 million). 　　Sales by geographical region, before intersegment eliminations, were as follows: In Japan, sales climbed 10.6%, to ¥146,459 million(US $1,761 million). The improvement is primarily due to higher sales of components for motorcycles and power products and for automobile products to customers in Asia and higher sales of automobile products to customers in North America and China. In the Americas, sales rose 7.5%, to ¥73,072 million(US $879 million), buoyed by higher sales of automobile products, thanks to recovery in North American markets, and higher sales of components for motorcycles and power products in Brazil. In Asia, excluding China, sales jumped 19.2%, to ¥80,656 million(US $970 million), supported by higher sales of components for motor-cycles and power products in Thailand, Indonesia, India and Taiwan, and higher sales of automobile products in Thailand. Sales from operations in China grew 11.4%, to ¥34,147 million(US $411 million), generated by brisk demand for automobile products and components for motorcycles and power products in the local market. In Europe, sales reached ¥5,793 million(US $70 million), up 9.9%, reecting the completion of inventory adjustments, realized through a steep decrease in production last year, and also reecting the impact of exchange rates.

■Income and ExpensesConsolidated operating income soared 57.5%, to ¥21,598 million(US $260 million), despite the impact of yen appreciation on local-currency results and higher R&D expenses, thanks to the improvement in net sales and successful rationalization e§orts and reorganization of domestic operations. 　　A breakdown of operating income by geographical region, before intersegment eliminations, reveals an impressive year-on-year rebound of operations in Japan, which reversed last year’s operating loss with operating income of ¥7,108 million(US $85 million) in scal 2011. In the Americas, operating income skyrocketed 85.0%, to ¥3,356 million(US $40 million). In Asia, excluding China, operating income grew 22.2%, to ¥11,717 million(US $141 million), while in China, operating income dropped 9.3%, to ¥3,940 million(US $47 million). Operations in Europe posted an outstanding 200.8% increase, to ¥184 million(US $2 million). 　　Ordinary income jumped 41.2%, to ¥21,695 million(US $261 million), on a consolidated basis, and income before income taxes and minority interests climbed 37.5%, to ¥19,574 million(US $235 million). Net income reached ¥12,324 million(US $148 million), surging 61.4%, which is less than it could have been owing to downward pressure on protability, mainly from losses following the Great East Japan Earthquake, which eroded gain on negative goodwill.

JapanAmericas

Net sales by geographical segmentMotorcycles and power productsMechanical products for automobiles

Net sales by productsElectronic control unitsAir-conditioning systems

AsiaChina

Europe

400,000

300,000

200,000

100,000

0

(Millions of yen)

400,000

300,000

200,000

100,000

0

(Millions of yen)

20112007 2008 2009 2010 20112007 2008 2009 2010

Financial Review

Five-Year Summary of Selected Financial Data

Annual Report 2011 1514 Annual Report 2011

2007 2008 2009 2010 2011 2011

For the year :

　Net sales ¥ 330,612 ¥ 339,321 ¥ 288,337 ¥ 255,938 $ 3,349,260　　Results by geographical region　　　Japan 185,583 182,094 152,729 132,464 1,761,382　　　Americas 111,807 108,227 83,203 67,960 878,801　　　Asia 75,560 91,453 92,336 67,643 970,007

　　　Europe 8,704 10,862 7,764 5,273 69,663　　　Consolidated adjustments (51,042) (53,315) (47,695) (48,052) (741,267)

　　Results by products　　　Motorcycles and power products - - 76,862 69,639 1,026,200　　　Mechanical products for automobiles - - 211,475 186,299 2,323,060

　　Results by products　　　Motorcycles and power products 74,181 81,603 - - - 　　　Mechanical products for automobiles 120,310 117,055 - - - 　　　Electronic control units 73,051 74,720 - - - 　　　Air-conditioning systems 63,070 65,943 - - -

　Operating income 22,113 24,009 11,609 13,717 259,752　Ordinary income 23,375 24,457 9,887 15,362 260,911　Income before income taxes and minority interests 23,554 20,781 1,798 14,239 235,411　Net income (loss) 12,846 11,201 (5,625) 7,634 148,219

181,433150,552

　Research and development expenses 15,946 14,983 14,404 14,150 　Capital expenditures 22,538 19,129 17,975 9,366

At year-end :

　Total net assets ¥ 143,454 ¥ 148,183 ¥ 126,938 ¥ 136,503 $ 1,694,853　Total assetsPer share of common stock (yen and U.S. dollars):

210,758 213,502 183,751 193,741 2,327,805173.38 151.44 (76.05) 103.21 2.00

　Net income (loss) : Basic32.00 36.00 28.00 21.00 0.30

19.94　　　　　　　　 Cash dividends　　　　　　　　 Net assets 1,669.98 1,716.16 1,481.22 1,580.33

Cash �ows

　Cash ows from operating activities ¥ 27,689 ¥ 33,734 ¥ 17,858 ¥ 16,661 $ 328,991　Cash ows from investing activities (25,109) (23,038) (16,814) (11,707) (130,552)　Cash ows from nancing activities (3,691) (6,119) 54 (2,163) (77,251) 　Cash and cash equivalents at end of year 31,125 34,369 31,856 34,506

¥ 278,491

146,45973,07280,656

5,793　　　China - - - 30,650 410,67434,147

(61,636)

85,329193,162

- - - -

21,59821,69519,57412,324

　Comprehensive income - - - 11,845 105,8548,80215,08612,518

¥ 140,927193,557

166.63

25.00 1,658.08

¥ 27,355(10,855)

(6,423) 42,638 512,788

For the years ended March 31, 2007, 2008, 2009, 2010 and 2011

Notes :1. The above amounts were prepared under accounting principles generally accepted in Japan.2. U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only, at the rate of ¥83.15=US$1. (See Note 3 to the Consolidated Financial Statements.)3. From scal 2009, Keihin’s four previous business segments have been consolidated into two business segments.4. From scal 2011, ended March 31, 2011, the Company applies “Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ

Statement No. 17, issued March 27, 2009) and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related information” (ASBJ Guid-ance No. 20, issued March 21, 2008). Consequently, the breakdown of net sales by geographical segment increased to ve from four.

5. From scal 2011, the Company applies the “Accounting Standard for Comprehensive Income” (ASBJ Statement No. 25, issued June 30, 2010).Notes : Keihin’s four previous business segments were consolidated into two business segments in scal 2009.

Millions of yen(except per share amounts)

Thousands of U.S. dollars(except per share amounts)

Results of Operations

■Net SalesThe Great East Japan Earthquake, which struck toward the end of scal 2011, had an enormous impact on the domestic economy. However, overseas, developing countries continued to demonstrate signicant economic growth. Keihin was able to capitalize on opportunities and minimize challenges in this operating environment, securing an 8.8% increase in consolidated net sales over the previous scal year, to ¥278,491 million(US $3,349 million). 　　Sales by geographical region, before intersegment eliminations, were as follows: In Japan, sales climbed 10.6%, to ¥146,459 million(US $1,761 million). The improvement is primarily due to higher sales of components for motorcycles and power products and for automobile products to customers in Asia and higher sales of automobile products to customers in North America and China. In the Americas, sales rose 7.5%, to ¥73,072 million(US $879 million), buoyed by higher sales of automobile products, thanks to recovery in North American markets, and higher sales of components for motorcycles and power products in Brazil. In Asia, excluding China, sales jumped 19.2%, to ¥80,656 million(US $970 million), supported by higher sales of components for motor-cycles and power products in Thailand, Indonesia, India and Taiwan, and higher sales of automobile products in Thailand. Sales from operations in China grew 11.4%, to ¥34,147 million(US $411 million), generated by brisk demand for automobile products and components for motorcycles and power products in the local market. In Europe, sales reached ¥5,793 million(US $70 million), up 9.9%, reecting the completion of inventory adjustments, realized through a steep decrease in production last year, and also reecting the impact of exchange rates.

■Income and ExpensesConsolidated operating income soared 57.5%, to ¥21,598 million(US $260 million), despite the impact of yen appreciation on local-currency results and higher R&D expenses, thanks to the improvement in net sales and successful rationalization e§orts and reorganization of domestic operations. 　　A breakdown of operating income by geographical region, before intersegment eliminations, reveals an impressive year-on-year rebound of operations in Japan, which reversed last year’s operating loss with operating income of ¥7,108 million(US $85 million) in scal 2011. In the Americas, operating income skyrocketed 85.0%, to ¥3,356 million(US $40 million). In Asia, excluding China, operating income grew 22.2%, to ¥11,717 million(US $141 million), while in China, operating income dropped 9.3%, to ¥3,940 million(US $47 million). Operations in Europe posted an outstanding 200.8% increase, to ¥184 million(US $2 million). 　　Ordinary income jumped 41.2%, to ¥21,695 million(US $261 million), on a consolidated basis, and income before income taxes and minority interests climbed 37.5%, to ¥19,574 million(US $235 million). Net income reached ¥12,324 million(US $148 million), surging 61.4%, which is less than it could have been owing to downward pressure on protability, mainly from losses following the Great East Japan Earthquake, which eroded gain on negative goodwill.

JapanAmericas

Net sales by geographical segmentMotorcycles and power productsMechanical products for automobiles

Net sales by productsElectronic control unitsAir-conditioning systems

AsiaChina

Europe

400,000

300,000

200,000

100,000

0

(Millions of yen)

400,000

300,000

200,000

100,000

0

(Millions of yen)

20112007 2008 2009 2010 20112007 2008 2009 2010

Financial Review

Annual Report 2011 1716 Annual Report 2011

■R&D ExpensesThe Group’s basic policy on R&D is to pursue the development of system products backed by sophisticated technology. Toward

this end, the Group assumes a front-loading approach to R&D that anticipates consumer trends.

　　R&D is undertaken by the Company’s development departments, which are part of the Motorcycle and Power Product Business Headquarters and the Automobile Product Business Headquarters. These departments undertake R&D activities closely

linked to product and business plans.

　　In scal 2011, R&D expenses reached ¥15,086 million(US $181 million).

■Capital ExpendituresIn scal 2011, capital expenditures amounted to ¥12,518 million(US $151 million), up 33.7% from scal 2010. Specically, spending

on production facilities was ¥7,143 million(US $86 million), up 17.0%, while allocation for R&D amounted to ¥971 million(US $12

million), up 31.6%. Other investments, including in intangible assets, jumped 74.5%, to ¥4,405 million(US $53 million). By

geographical region, capital expenditures in Japan were ¥2,250 million(US $27 million); in the Americas, ¥1,747 million(US $21

million); in Asia, excluding China, ¥2,365 million(US $28 million); in China, ¥648 million(US $8 million); and in Europe, ¥133 million

(US $2 million).

■Cash FlowsCash and cash equivalents as of March 31, 2011, totaled ¥42,638 million(US $513 million), up 23.6% from a year earlier.

　　Net cash provided by operating activities soared 64.1%, to ¥27,355 million(US $329 million), mainly because income before

income taxes and minority interests and depreciation and amortization, along with a decrease in trade notes and accounts

receivable, o¡set an increase in inventories.

　　Net cash used in investing activities fell 7.3%, to ¥10,855 million(US $131 million), primarily owing to the application of funds

to purchase property, plant and equipment and intangible assets.

　　Net cash used in nancing activities surged 196.9%, to ¥6,423 million(US $77 million), largely re¢ecting repayment of short-

term loans and long-term debt.

■Financial PositionTotal assets stood at ¥193,557 million(US $2,328 million) on March 31, 2011, dipping 0.1% from a year earlier. Net assets edged up

3.2%, to ¥140,927 million(US $1,695 million), and net assets per share amounted to ¥1,658.08(US $19.94), up ¥77.75 from the previ-

ous scal year. The equity ratio improved, rising 3.1 percentage points, to 63.4%.

Operating incomeNet income(loss)

Operating income and net income(loss) Capital expenditures

(Millions of yen)

24,000

18,000

12,000

6,000

0

(Millions of yen)

20112007 2008 2009 2010

Research and development expenses

20,000

15,000

10,000

5,000

0

(Millions of yen)

20112007 2008 2009 2010

30,000

20,000

10,000

0

-10,00020112007 2008 2009 2010

40,000

30,000

20,000

10,000

0

(Millions of yen)

20112007 2008 2009 2010

Total assetsTotal net assets

Total assets and total net assets

240,000

180,000

120,000

60,000

0

(Millions of yen)

20112007 2008 2009 2010

Cash provided by operating activities

Annual Report 2011 1716 Annual Report 2011

■R&D ExpensesThe Group’s basic policy on R&D is to pursue the development of system products backed by sophisticated technology. Toward

this end, the Group assumes a front-loading approach to R&D that anticipates consumer trends.

　　R&D is undertaken by the Company’s development departments, which are part of the Motorcycle and Power Product Business Headquarters and the Automobile Product Business Headquarters. These departments undertake R&D activities closely

linked to product and business plans.

　　In scal 2011, R&D expenses reached ¥15,086 million(US $181 million).

■Capital ExpendituresIn scal 2011, capital expenditures amounted to ¥12,518 million(US $151 million), up 33.7% from scal 2010. Specically, spending

on production facilities was ¥7,143 million(US $86 million), up 17.0%, while allocation for R&D amounted to ¥971 million(US $12

million), up 31.6%. Other investments, including in intangible assets, jumped 74.5%, to ¥4,405 million(US $53 million). By

geographical region, capital expenditures in Japan were ¥2,250 million(US $27 million); in the Americas, ¥1,747 million(US $21

million); in Asia, excluding China, ¥2,365 million(US $28 million); in China, ¥648 million(US $8 million); and in Europe, ¥133 million

(US $2 million).

■Cash FlowsCash and cash equivalents as of March 31, 2011, totaled ¥42,638 million(US $513 million), up 23.6% from a year earlier.

　　Net cash provided by operating activities soared 64.1%, to ¥27,355 million(US $329 million), mainly because income before

income taxes and minority interests and depreciation and amortization, along with a decrease in trade notes and accounts

receivable, o¡set an increase in inventories.

　　Net cash used in investing activities fell 7.3%, to ¥10,855 million(US $131 million), primarily owing to the application of funds

to purchase property, plant and equipment and intangible assets.

　　Net cash used in nancing activities surged 196.9%, to ¥6,423 million(US $77 million), largely re¢ecting repayment of short-

term loans and long-term debt.

■Financial PositionTotal assets stood at ¥193,557 million(US $2,328 million) on March 31, 2011, dipping 0.1% from a year earlier. Net assets edged up

3.2%, to ¥140,927 million(US $1,695 million), and net assets per share amounted to ¥1,658.08(US $19.94), up ¥77.75 from the previ-

ous scal year. The equity ratio improved, rising 3.1 percentage points, to 63.4%.

Operating incomeNet income(loss)

Operating income and net income(loss) Capital expenditures

(Millions of yen)

24,000

18,000

12,000

6,000

0

(Millions of yen)

20112007 2008 2009 2010

Research and development expenses

20,000

15,000

10,000

5,000

0

(Millions of yen)

20112007 2008 2009 2010

30,000

20,000

10,000

0

-10,00020112007 2008 2009 2010

40,000

30,000

20,000

10,000

0

(Millions of yen)

20112007 2008 2009 2010

Total assetsTotal net assets

Total assets and total net assets

240,000

180,000

120,000

60,000

0

(Millions of yen)

20112007 2008 2009 2010

Cash provided by operating activities

12

Consolidated Balance SheetsKeihin Corporation and Consolidated SubsidiariesAs of March 31, 2010 and 2011

Millions of yenThousands ofU.S. dollars

ASSETS 2010 2011 2011

Current assets:

Cash and deposits ¥ 31,143 ¥ 32,212 $ 387,394

Trade notes and accounts receivable 40,568 34,707 417,399

Securities 8,600 14,500 174,384

Merchandise and finished products 7,767 8,834 106,240

Work in process 4,417 4,386 52,752

Raw materials and supplies 14,454 13,910 167,287

Deferred tax assets 2,984 3,403 40,924

Other current assets 3,705 5,476 65,865

Total current assets 113,638 117,428 1,412,245

Non-current assets:

Property, plant and equipment:

Buildings and structures 40,813 40,342 485,177

Less: accumulated depreciation (21,388) (22,445) (269,935)

Buildings and structures, net 19,425 17,897 215,242

Machinery, equipment and vehicles 119,611 116,368 1,399,498

Less: accumulated depreciation (88,759) (91,517) (1,100,631)

Machinery, equipment and vehicles, net 30,852 24,851 298,867

Tools, furniture and fixtures 32,329 32,034 385,250

Less: accumulated depreciation (26,640) (26,954) (324,154)

Tools, furniture and fixtures, net 5,689 5,080 61,096

Land 9,294 9,228 110,976

Construction in progress 3,238 6,585 79,190

Total property, plant and equipment 68,498 63,641 765,371

Intangible assets 2,469 2,598 31,242

Investments and other assets:

Investment securities 5,039 4,725 56,831

Long-term loans receivable 448 464 5,581

Deferred tax assets 1,301 2,090 25,133

Other assets 2,386 2,631 31,643

Less: allowance for doubtful accounts (38) (20) (241)

Total investments and other assets 9,136 9,890 118,947

Total non-current assets 80,103 76,129 915,560

Total assets ¥ 193,741 ¥ 193,557 $ 2,327,805

See accompanying notes to consolidated financial statements.

18 Annual Report 2011

13

Millions of yenThousands ofU.S. dollars

LIABILITIES AND NET ASSETS 2010 2011 2011

Current liabilities:

Trade notes and accounts payable ¥ 30,229 ¥ 27,694 $ 333,062

Short-term loans payable 3,264 1,525 18,337

Current portion of long-term debt 1,466 1,260 15,152

Accrued expenses 8,284 8,675 104,331

Income taxes payable 1,598 1,812 21,795

Accrued product warranties 1,003 594 7,148

Accrued bonuses for directors and statutory auditors 49 93 1,114

Accrued expenses for restructuring 260 － －

Provision for loss on disaster － 1,300 15,636

Deferred tax liabilities 18 35 426

Asset retirement obligations － 16 195

Other current liabilities 3,287 4,067 48,900

Total current liabilities 49,458 47,071 566,096

Long-term liabilities:

Long-term debt 2,256 600 7,216

Deferred tax liabilities 1,095 813 9,783

Accrued retirement benefits for employees 2,519 1,800 21,645

Accrued retirement benefits for directors and statutory auditors 393 424 5,098

Asset retirement obligations － 200 2,403

Other long-term liabilities 1,517 1,722 20,711

Total long-term liabilities 7,780 5,559 66,856

Total liabilities 57,238 52,630 632,952

Shareholders’ equity:

Common stock, no par value: 6,932 6,932 83,372

Authorized: 240,000,000 shares

Issued: 73,985,246 shares in 2010 and 2011

Capital surplus 7,941 7,941 95,499

Retained earnings 110,561 121,168 1,457,230

Less: Treasury stock, at cost; 22,002 shares in 2010 and 23,586 shares in 2011 (31) (34) (411)

Total shareholders’ equity 125,403 136,007 1,635,690

Accumulated other comprehensive income (loss) :

Unrealized gains on available-for-sale securities, net 2,480 2,282 27,438

Unrealized losses from hedging instruments, net ― (5) (63)

Foreign currency translation adjustments, net (10,996) (15,649) (188,208)

Total accumulated other comprehensive income (loss) (8,516) (13,372) (160,833)

Minority interests 19,616 18,292 219,996

Total net assets 136,503 140,927 1,694,853

Total liabilities and net assets ¥ 193,741 ¥ 193,557 $ 2,327,805

Annual Report 2011 19

14

Consolidated Statements of OperationsKeihin Corporation and Consolidated SubsidiariesFor the years ended March 31, 2010 and 2011

Millions of yenThousands ofU.S. dollars

2010 2011 2011

Net sales ¥ 255,938 ¥ 278,491 $ 3,349,260Cost of sales 223,466 238,452 2,867,729Gross profit 32,472 40,039 481,531Total selling, general and administrative expenses 18,755 18,441 221,779Operating income 13,717 21,598 259,752Non-operating income:

Interest income 413 504 6,067Dividends income 139 397 4,780Foreign currency exchange gain, net 798 － －Other 1,086 596 7,154Total non-operating income 2,436 1,497 18,001

Non-operating expenses:Interest expense 350 189 2,268Foreign currency exchange loss, net － 873 10,502Loss on disposal of property, plant and equipment 258 191 2,302Other 183 147 1,770Total non-operating expenses 791 1,400 16,842

Ordinary income 15,362 21,695 260,911Extraordinary income： Gain on negative goodwill － 1,192 14,335 Reversal of accrued product warranties 42 194 2,339 Insurance gains 48 － － Other 7 － － Total extraordinary income 97 1,386 16,674Extraordinary losses： Impairment loss on property, plant and equipment 217 133 1,601 Provision for restructuring 1,003 － － Loss on disaster － 1,520 18,280 Provision for loss on disaster － 1,300 15,636 Loss on liquidation of subsidiary － 416 5,002 Loss on adjustment for change of accounting standard for asset retirement obligations － 138 1,655 Total extraordinary losses 1,220 3,507 42,174Income before income taxes and minority interests 14,239 19,574 235,411Income taxes:

Current 4,253 5,302 63,763Deferred (314) (814) (9,785)Total income taxes 3,939 4,488 53,978

Net income before minority interests 10,300 15,086 181,433Minority interests 2,666 2,762 33,214Net income ¥ 7,634 ¥ 12,324 $ 148,219

Yen U.S. dollarsPer share of common stock:

Basic net income ¥ 103.21 ¥ 166.63 $ 2.00 Cash dividends ¥ 21.00 ¥ 25.00 $ 0.30

See accompanying notes to consolidated financial statements.

20 Annual Report 2011

15

Consolidated Statements of Comprehensive IncomeKeihin Corporation and Consolidated SubsidiariesFor the years ended March 31, 2010 and 2011

Millions of yenThousands ofU.S. dollars

2010 2011 2011

Net income before minority interests ¥ 10,300 ¥ 15,086 $ 181,433 Other comprehensive income (loss)

Unrealized gains (losses) on available-for-sale securities, net 841 (194) (2,331)Unrealized losses from hedging instruments, net ― (5) (63)Foreign currency translation adjustments, net 704 (6,085) (73,185)Other comprehensive income (loss) 1,545 (6,284) (75,579)

Comprehensive income ¥ 11,845 ¥ 8,802 $ 105,854Comprehensive income attributable to :Shareholders of Keihin Corporation ¥ 8,810 ¥ 7,468 $ 89,811 Minority interests 3,035 1,334 16,043

Annual Report 2011 21

16

Consolidated Statements of Changes in Net AssetsKeihin Corporation and Consolidated SubsidiariesFor the years ended March 31, 2010 and 2011

Millions of yenThousands ofU.S. dollars

NET ASSETS 2010 2011 2011Shareholders’ equityCommon Stock

Balance at end of previous fiscal year ¥ 6,932 ¥ 6,932 $ 83,372Changes during current fiscal year

Net change ― ― ―Balance at end of current fiscal year ¥ 6,932 ¥ 6,932 $ 83,372

Capital surplus Balance at end of previous fiscal year ¥ 7,941 ¥ 7,941 $ 95,499Changes during current fiscal year

Net change ― ― ―Balance at end of current fiscal year ¥ 7,941 ¥ 7,941 $ 95,499

Retained earnings Balance at end of previous fiscal year ¥ 104,407 ¥ 110,561 $ 1,329,663Changes during current fiscal year

Dividends from surplus (1,480) (1,701) (20,459)Net income 7,634 12,324 148,219Decrease due to change in scope of consolidation － (16) (193)Net change 6,154 10,607 127,567

Balance at end of current fiscal year ¥ 110,561 ¥ 121,168 $ 1,457,230Treasury stock

Balance at end of previous fiscal year ¥ (31) ¥ (31) $ (377)Changes during current fiscal year

Purchase of treasury stock (0) (3) (34)Net change (0) (3) (34)

Balance at end of current fiscal year ¥ (31) ¥ (34) $ (411)Total shareholders’ equity

Balance at end of previous fiscal year ¥ 119,249 ¥ 125,403 $ 1,508,157Changes during current fiscal year

Dividends from surplus (1,480) (1,701) (20,459) Net income 7,634 12,324 148,219

Decrease due to change in scope of consolidation － (16) (193) Purchase of treasury stock (0) (3) (34) Net change 6,154 10,604 127,533

Balance at end of current fiscal year ¥ 125,403 ¥ 136,007 $ 1,635,690Accumulated other comprehensive income (loss) Unrealized gains on available-for-sale securities, net

Balance at end of previous fiscal year ¥ 1,639 ¥ 2,480 $ 29,824Changes during current fiscal year

Changes in items other than shareholders’ equity, net 841 (198) (2,386)Net change 841 (198) (2,386)

Balance at end of current fiscal year ¥ 2,480 ¥ 2,282 $ 27,438Unrealized losses from hedging instruments, net

Balance at end of previous fiscal year ¥ － ¥ － $ －Changes during current fiscal year

Changes in items other than shareholders’ equity, net － (5) (63)Net change － (5) (63)

Balance at end of current fiscal year ¥ － ¥ (5) $ (63)Foreign currency translation adjustments, net

Balance at end of previous fiscal year ¥ (11,332) ¥ (10,996) $ (132,249)Changes during current fiscal year

Changes in items other than shareholders’ equity, net 336 (4,653) (55,959)Net change 336 (4,653) (55,959)

Balance at end of current fiscal year ¥ (10,996) ¥ (15,649) $ (188,208)Total accumulated other comprehensive income (loss)

Balance at end of previous fiscal year ¥ (9,693) ¥ (8,516) $ (102,425)Changes during current fiscal year

Changes in items other than shareholders’ equity, net 1,177 (4,856) (58,408)Net change 1,177 (4,856) (58,408)

Balance at end of current fiscal year ¥ (8,516) ¥ (13,372) $ (160,833)Minority interests

Balance at end of previous fiscal year ¥ 17,382 ¥ 19,616 $ 235,915Changes during current fiscal year

Changes in items other than shareholders’ equity, net 2,234 (1,324) (15,919)Net change 2,234 (1,324) (15,919)

Balance at end of current fiscal year ¥ 19,616 ¥ 18,292 $ 219,996Total net assets

Balance at end of previous fiscal year ¥ 126,938 ¥ 136,503 $ 1,641,647Net change

Dividends from surplus (1,480) (1,701) (20,459)Net income 7,634 12,324 148,219Decrease due to change in scope of consolidation

－ (16) (193)

Purchase of treasury stock (0) (3) (34)Changes in items other than shareholders’ equity, net 3,411 (6,180) (74,327)Net change 9,565 4,424 53,206

Balance at end of current fiscal year ¥ 136,503 ¥ 140,927 $ 1,694,853See accompanying notes to consolidated financial statements.

22 Annual Report 2011

17

Consolidated Statements of Cash FlowsKeihin Corporation and Consolidated SubsidiariesFor the years ended March 31, 2010 and 2011

Millions of yenThousands ofU.S. dollars

2010 2011 2011

Cash flows from operating activities: Income before income taxes and minority interests ¥ 14,239 ¥ 19,574 $ 235,411Depreciation and amortization 15,525 13,925 167,463Impairment loss on property, plant and equipment 217 133 1,601Loss on disposal and sale of property, plant and equipment, net 258 191 2,302Decrease in accrued product warranties (6,220) (395) (4,754)Increase (decrease) in accrued expenses for restructuring 260 (260) (3,122)Increase in provision for loss on disaster － 1,300 15,636Decrease in accrued retirement benefits for employees (523) (669) (8,050)Decrease (increase) in prepaid pension costs 682 (62) (744)Increase in accrued retirement benefits for directors and statutory auditors 34 31 369Interest and dividends income (552) (902) (10,847)Interest expense 350 189 2,268(Increase) decrease in trade notes and accounts receivable (11,299) 3,96