Financial Overview

(in millions of JPY)

	FY ended March 2012	FY ended March 2011	Rate of Change(%)	Factors
Sales	96,237	91,920	4.7	-
Operating profit	6,207	8,717	(28.8)	-
Ordinary profit	7,224	9,142	(21.0)	-
Net income	3,013	4,871	(38.1)	-
Automotive and Construction Machinery Industries
Sales	52,768	50,163	5.2	-Sales at the Automotive and Construction Machinery Industries were 52,768 billion yen for the year. Operating profit was 2,826 billion yen. Automotive products showed strong sales mainly in Europe and emerging markets because of greater volumes of products sold.

Acquisitions
-Freudenberg & Co. KG announced that it has concluded with Japan-based EKK Eagle Industry Co. Ltd. an agreement for the transfer of its actuator business. The agreement concerning the business unit which was formerly a division of Freudenberg NOK Mechatronics (FNM) takes effect on July 1, 2011. Since 2002, FNM has been a joint venture of Freudenberg and Japanese company NOK. Product development and management functions are performed in Germany; production takes place in Hungary. (From a press release on July 1, 2011)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.) 

Outlook for FY2013

(in million of JPY)

	FY ending March 2013 (Estimate)	FY ended March 2012 (Result)	Rate of Change (%)
Sales	108,000	96,237	12.2
Operating income	8,800	6,207	41.8
Ordinary income	9,500	7,224	31.5
Net income	5,300	3,013	75.9

R&D Expenditure

(in millions JPY )

	FY ended March 2012	FY ended March 2011	FY ended March 2010
Overall	676	615	472

R&D Structure

 -The Company's Technical Center is the main function responsible for R&D activities in the Company, collaborating with the technical/engineering, production, and sales functions to develop products in all its business sectors.
-The Company employs 69 R&D staff members, which account for 1.4% of the total number of employees. This year, the Company will spend 676 million yen on R&D activities.
-R&D expenses were 381 million yen at its Automotive and Construction Machinery Industries.

R&D Activities

Automotive and Construction Machinery Industries
Mechanical seals for engine coolant circulation pumps
-The Company is developing next-generation mechanical seals that significantly reduce frictional force while at the same time maintain a high level of sealing performance.

Metal seals for turbochargers
-The Company's work in the mechatronics field involves the start of mass-production of metal seals for turbochargers, which are compliant with exhaust emissions regulations. In the product sector satisfying the need for greater fuel efficiency, the Company has been developing products that cover a wider range of uses, in addition to increasing the production of fuel pulsation dampers. Furthermore, the Company is in the process of developing seal sliding materials suited for all sorts of seals.

Capital Expenditure

(in millions JPY)

	FY ended March 2012	FY ended March 2011	FY ended March 2010
Overall	8,821	3,496	3,703

Automotive and Construction Machinery Industries
-The Company is investing 2,426 million yen to increase its production capacity in the Automotive and Construction Machinery Industries.
-The Company invested the following at its affiliated companies: Eagle Industry France (S.A.S.）:1,478 million yen; Okayama Eagle: 664 million yen; P.T. Industry Indonesia: 390 million yen, and Hiroshima Eagle: 388 million yen.

Equipment to be Installed

Facility (Location)	Location	Equipment to be installed	Estimated amount of investment (in million JPY)	Period of the project
				from	to
The Company's Okayama Plant	Okayama Pref., Japan	Equipment to produce mechanical seals	4,070	Apr. 2012	Mar. 2013
		Equipment to produce special valves
Okayama Eagle Co., Ltd.	Okayama Pref., Japan	Equipment to produce mechanical seals	252	Apr. 2012	Mar. 2013
		Equipment to produce special valves
P.T.Eagle Industry Indonesia	Indonesia	Equipment to produce mechanical seals	407	Apr. 2012	Mar. 2013
		Equipment to produce special valves
Eagle Industry France S.A.S.	France	Equipment to produce special valves	215	Apr. 2012	Mar. 2013
Eagle Industry (Wuxi) Co., Ltd.	Wuxi, China	Equipment to produce mechanical seals	1,111	Apr. 2012	Mar. 2013
		Equipment to produce special valves