Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Overall
Sales	117,621	96,943	21.3	-Business performance recovered in FY2010 because of the following reasons: increased sales of new cars due to sales incentives in Japan for purchases of eco-cars, the recovery in automotive demand in North America, and the continued growth of the automotive market in China.
Operating income	12,852	5,566	130.9
Ordinary income	12,672	6,075	108.6
Net income	8,041	2,250	257.4
Vehicle Clutch Division
Sales	49,419	42,159	17.2	-Performance improved due to greater volume of product sales to the Company’s major customers. This was due to increased sales of new cars that resulted from sales incentives in Japan for purchases of eco-cars and the recovery in automotive demand in North America, besides the tremendous increase in sales to Ford and major customers in China.
Operating income	2,948	197	1,396.4

Contracts

 -The Company has been awarded a new contract from Daihatsu Motor Co., Ltd. to supply clutch discs. Based on the agreement, F.C.C. will deliver 1.2 million clutch discs a year, starting in fiscal year 2011. (From an article in the Nikkan Jidosha Shimbun on February 1, 2011)

-The Company has won a contract with a Korean company WIA Magna Powertrain Co. to supply clutch discs and plates for 4WD vehicle hydraulic center differentials with 2WD-4WD change-over control function. Under the contract, around 8.5 million of clutch discs and plates will be delivered annually. WIA Magna Powertrain is a joint venture between MAGNA Powertrain AG & Co KG in Austria and HYUNDAI WIA Corp. in Korea. (From a press release on April 26, 2010)

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

R&D Structure

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

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	2,853	2,807	3,253
Automobile clutches	1,548	1,474	1,779

R&D Activities

Automobile clutches
-The Company conducted R&D on wet friction-materials for automatic transmissions (which include CVTs) and dry friction-materials for manual transmissions as the underlying framework to developing clutches that are lighter in weight and lower in cost, and which contribute to better fuel efficiency.
-For new customers, the Company developed new, wet friction-materials for automatic transmissions. These materials, which improve fuel efficiency and resistance to wear and abrasion, are based on friction plate production plans on segmentation, which is the Company’s proprietary technology.  
-The Company mass-produced friction materials for center differentials, which contribute to increasing product appeal and resistance to friction and abrasion.
-In the area of R&D on dry friction-materials, the Company developed friction materials for manual transmissions. These materials require less electrical power consumption when produced, and they are also environmentally friendly.  

Capital Investment

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	4,744	4,283	10,870

-Capital investment in FY2010 was 4,744 million yen. For the mid term, the Company focused its investments in product areas and R&D areas that are expected to grow, investing in products that require less labor, and contribute to improving reliability and rationalization.

New Facilities

Name (Location)	Business segment	Type of facility	Planned total investment (million yen)	Start	Planned completion
F.C.C Co., Ltd
Technology Research Center (Shizuoka, Japan)	R&D	Testers and measuring instruments	328	2011.04	2012.03
Ryuyo Plant (Shizuoka, Japan)	Motorcycle clutches Automobile clutches Others	Production facility for clutches	166	2011.04	2012.03
Suzuka Plant (Mie, Japan)	Motorcycle clutches Automobile clutches Others	Production facility for clutches	91	2011.04	2012.03
Hosoe Factory (Shizuoka, Japan)	Motorcycle clutches Automobile clutches Others	Production facility for clutches	62	2011.04	2012.03
Subsidiaries
FCC Adams , LLC.(Indiana, USA)	Automobile clutches	Building, Production facility for clutches	1,979	2011.04	2012.03
PT.FCC Indonesia (Karawang, Indonesia)	Motorcycle clutches Automobile clutches	Production facility for clutches	1,680	2011.01	2011.12
FCC (North Carolina), L.L.C. (North Carolina, USA)	Motorcycle clutches Automobile clutches	Building, Production facility for clutches	1,643	2011.04	2012.03
FCC (Indiana) Mfg., L.L.C. (Indiana, USA)	Automobile clutches	Production facility for clutches	1,433	2011.04	2012.03
FCC Rico, Ltd. (Haryana, India)	Motorcycle clutches Automobile clutches	Building, Production facility for clutches	723	2011.04	2012.03
FCC (Thailand) Co., Ltd. (Bangkok, Thailand)	Motorcycle clutches Automobile clutches	Production facility for clutches	704	2011.01	2011.12