F.C.C. Co., Ltd. Business Report FY ended Mar. 2020

Financial Overview

(IFRS, in million JPY)

	FY ended Mar. 31, 2020	FY ended Mar. 31, 2019	Rate of Change (%)	Factors
Overall
Revenue	171,060	177,605	(3.7)	-Sales and profit decreased due to lower sales of automobile clutches in China and lower sales of motorcycle clutches in India, even though sales of automotive clutches increased in the USA.
Operating income	7,896	15,843	(50.2)
Current income before income taxes	6,653	16,503	(59.7)
Profit for the year attributable to owners of the parent	3,921	11,779	(66.7)

11th Mid-term Management Plan (FY ending in March 2021-FY ending in March 2023)

ｰThe Company is actively advancing initiatives that will lead to bringing the corporate framework to an even higher dimension than the “Pursuit of Substance” that was created under its 10^th mid-term management plan, and actively make use of digital advances to develop new businesses making use of paper-application products, electric-vehicle products, and AI. The Company is working to improve earning power by enhancing the competitive advantages of the clutch business by strengthening development capabilities and local capabilities. Along with that, it is speeding up investing and expanding in business segments new to the Company. Doing so will improve sustainable corporate value in an era of significant changes.

R&D Expenditure

(in million JPY)

	FY ended Mar. 31, 2020	FY ended Mar. 31, 2019	FY ended Mar. 31, 2018
Overall	4,953	4,179	4,052
-Automobile clutches	2,282	2,302	2,200

R&D Structure

-The Company has a Technology Laboratory and Production Technology Center in Hamamatsu City, Shizuoka Prefecture.

R&D Activities

Automobile clutches
In the fiscal year that ended in March 2020, the automobile business conducted R&D activities on wet friction materials for automatic transmissions and continuously variable transmissions and on dry materials for manual transmissions, working to develop clutches that are smaller, lighter weight, and lower in cost and which improve fuel-efficiency.

Capital Expenditure

(in million JPY)

	FY ended Mar. 31, 2020	FY ended Mar. 31, 2019	FY ended Mar. 31, 2018
Motorcycle clutches	3,037	3,550	3,863
Automobile clutches	4,977	6,815	10,526
Company-wide (all functions)	844	496	625
Total	8,858	10,861	15,014