Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Sales	122,129	142,882	(14.5)	-Honda Motor Co., Ltd., the Company's main customer, enjoyed brisk sales in emerging countries including China. -Even though sales decreased, business profit increased because the Company achieved cost reductions and expenditure cuts as a result rationalizing its operations.
Operating income	5,365	2,754	94.8
Ordinary income	4,851	1,434	238.3
Net income	2,457	(4,316)	-

Performance by Region

-Since sales to Honda Motor Co., Ltd., the Company's main customer, decreased, the total sales in Japan was 42,034 million yen, a decline of 25.4% compared to sales in the previous fiscal year. As a result, the Company posted an operating loss of 109 million yen.

-Since sales to Honda Motor Co., Ltd., the Company's main customer, decreased due to the slowdown in spending, the total sales in North America was 54,953 million yen, a decline of 13.2% compared to sales in the previous fiscal year. Operating income was 1,996 million yen, a 35.6% decrease compared to that of the previous fiscal year.

-Thanks to brisk sales in Asia, mainly in China, sales increased by 8.3% compared to those of the previous fiscal year ,to 25,141 million yen. Operating income was 2,807 million yen, a 18.4% year-on-year increase.

Restructuring

-The Company announced on January 19, 2010 integration of its operations in both the U.S. and Canada. Specifically, F&P America Manufacturing, Inc. (FPA) in Ohio, U.S.A., will absorb F&P Georgia Manufacturing, Inc. (FPG) and F-tech North America Inc. (FTNA), while FPG and FTNA will be liquidated. In Canada, DYNA-MIG Mfg. of Stratford Inc. (DYNA-MIG) will be merged into F&P Manufacturing Inc. (FPC), which will be a surviving company. (From an article in the Nikkan Jidosha Shimbun on Jan. 20, 2010)

-The Company announced its plan to consolidate its two wholly-owned subsidiaries for metal molds and plastic injection molds as of Oct. 1, 2009. Fukuda Engineering Co., Ltd., Kisai-machi, Saitama Pref., for die designing and Watanabe Plastics Mfg. Co., Ltd., Kasukabe, Saitama Pref., for plastic injection molding, will be merged with Fukuda Engineering as a surviving company. .(From an article in the Nikkan Jidosha Shimbun on Aug. 10, 2009)

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

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,495	1,940	1,924

R&D Structure

-Haga Technical Center is in charge of product design and development, research on materials and product performance tests.

-In July 2008, the Company established F-Tech R&D Philippines, Inc. in the Philippines. It cooperates with the Company's production base in the Philippines so that the company has a consistent system to locally develop and produce pedals.

R&D Achievements

-The Company supplied a new H-type rear axle beam to the Honda Insight and CR-Z. It was developed based on the H-type rear axle beam installed on the Honda Fit. The performance of this newer H-type rear axle beamwas improved.

Major Technological Support

(As of Mar. 31, 2010)

Partners	Country	Type of Support	Contract Period
Cheng Yu Industry Co., Ltd.	Taiwan	Technical support dealing with manufacturing and sales	Dec.1994-Dec.1999 Yearly automatic renewal from then on
ThyssenKrupp Automotive Tallent Ltd.	UK	Technical support dealing with manufacturing and sales	June 1996-June 2009 Yearly automatic renewal from then on
Progressive Tools & Components (P) Ltd.	India	Technical support dealing with manufacturing and sales	Nov.1996- now under way
YPS Limited	Turkey	Technical support dealing with manufacturing and sales	Apr. 1, 2000- Mar. 31, 2005 Annual automatic renewal from then on
Vietnam Autoparts Co., Ltd.	Vietnam	Technical support dealing with manufacturing and sales	Dec. 27, 2005- Dec. 26, 2010
SMC Co. Ltd.	South Korea	Technical support dealing with manufacturing and sales	Apr. 4, 2006 Apr. 3, 2011 (Annual automatic renewal from then on)
Thyssenkrupp Automotive Systems Brasil Ltda	Brasil	Technical support dealing with manufacturing and sales	Sep. 27, 2005- Sep. 26, 2012

Technological Support the Company Receives

(As of Mar. 31, 2010)

Partners	Country	Company name	Type of support	Details	Contract period
F-Tech F&P Mfg Inc. F&P America Mfg Inc.	UK	TI Corporate Services Limited(Variform, Inc.)	Automotive components	Technological support dealing with pipe forming	Oct. 20, 1994- Oct. 20, 2023

Investment Expenditure

(in millions of JPY)

	FY2010	FY2008	FY2007
Investment Expenditure	3,177	12,247	14,719
Investment for new product start-up	1,540	4,474	9,593

Planned Capital Investments

Company Name Location	Segment	Planned investment (in million yen)	Start	Completion	Increased capacity after completion
F-Tech: Kuki Plant, etc. (Saitama, Japan)	Businesses related to automotive components	829	Apr. 2010	Mar. 2011	Facility expansion in line with launch of a new model
F-Tech: Kameyama Plant, etc. (Mie, Japan)	Businesses related to automotive components	1,053	Apr. 2010	Mar. 2011	Facility expansion in line with launch of a new model
F-Tech Mfg. Thailand Ltd. (Ayutthaya, Thailand)	Businesses related to automotive components	822	Jan. 2010	Dec. 2010	Facility expansion in line with launch of a new model