Financial Overview

(in million JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Sales	273,210	258,951	5.5	-Sales increased year-on-year due to the recovery in the automotive market, especially in emerging nations and the U.S.A.; and due to increased vehicle production volume in Japan.  This was in spite of negative currency translation due to the high valuation of the yen, and the occurrence of Great East Japan Earthquake that impacted business.
Operating income	4,430	1,731	155.9	-Profit increased year-on-year as a result of the Company’s initiatives to lower the cost of goods and improve efficiencies in its managerial and indirect functions, besides improving capacity and utilization gains that resulted from increased sales.
Ordinary income	3,640	1,737	109.6	-
Net income	1,466	(24,658)	-	-

Performance by Region
<Japan>
-Sales were 221,756 million yen, a year-on-year increase of 2.9%, which was supported by greater production volume of vehicles sold in Japan and also destined for export, although the Company had to account for a negative currency loss due to the high valuation of the yen.
-Business operating profit increased due to the Company's initiatives to improve its operations by lowering the cost of goods and improving efficiencies in its managerial and indirect functions.

<U.S.A.>
-Sales were 44,781 million yen, a year-on-year increase of 3.6%. This was due to greater vehicle production volume by U.S. and Japanese automakers.
-Business operating profit improved due to capacity and utilization gains that resulted from increased sales volume.

<ASEAN>
-Sales were 27,253 million yen, a 24.0% increase year-on-year, thanks to greater vehicle production volume by Japanese automakers and an increase in the volume of vehicle units exported to North America.

<China>
-Sales rose 17.5% year-on-year, to 20,169 million yen, because of the greater vehicle production volume by Japanese automakers.
-Business operating profit fell year-on-year because of lower selling prices combined with increased expenses.

Joint Ventures

-The Company and Denso (China) Investment Co., Ltd. (DICH) will jointly establish a new manufacturing company in China in February 2011. The new facility, based in Hangzhou, Zhejiang Province, will manufacture automotive small motors and related products, starting in August 2012. The 18.1 million USD (1.44 billion yen) venture will be 90 percent owned by ASMO, with DICH holding the remaining stake. In 2016, the joint venture plans to generate sales of 8.3 billion yen and employ 660 workers. The total investment amount will be 2.21 million RMB (2.78 billion yen). (From a press release on January 19, 2011)

R&D Expenditure

(in millions JPY)

	FY2010	FY2009	FY2008
Overall	11,624	10,308	13,424

R&D Activities

-In R&D activities with a view toward the future, the Company is working on developing technology on brushless motors and drive-control motors that will work with new automotive systems. Also, the Company is conducting further R&D activities on motors, striving to make them smaller, lighter, and more efficient, in addition to designing them so they require less resources.

Product Development

Environmental Sector: Commercializing the Following Products
-Highly efficient and powerful brushless, electric-driven fan motors
-Powerful, electric-driven, power-steering motors (with brushes) that offer improved steering maneuverability and feel.
-Electric-driven, power-steering brushless motors that are small and light-weight but powerful, and which are easier to install.

Safety Sector: Commercializing the Following Products
-Lighter and more compact wiper motors; and lighter weight wiper blades made from fewer parts.
-Smart wiper motors with the added function of controlling the position where the blade returns, in order to increase the wiping range on the windshield.

Technological Licensing-in Agreements

(As of Mar. 31, 2010)

Partner	Country	Product	Contractual Coverage	Contract Period
Canon Inc.	Japan	Ultrasonic wave motors	-Licensing of patented technologies and receiving of technical information	Jan. 1, 1998 - Dec. 31, 2017

Capital Expenditure

(in millions JPY)

	FY2010	FY2009	FY2008
Overall	9,779	6,648	18,785

-The Company invested in order to prepare for the production of next-release products, increase its production capacity, and improve its product quality and reliability.

Planned Capital Investments

(As of Mar. 31, 2011)

Company name	Type of facility	Planned total investment (million JPY)
The Company (Kosai City, Shizuoka Pref.)	Facility producing small motors	11,000