Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Sales	137,706	122,129	12.8	-Sales grew as a result of customers’ sales recovering strongly in all regions. -Sales increased as a result of the Company’s initiatives succeeding in reducing the costs of goods and in rationalizing operations.
Operating income	7,832	5,365	46.0
Ordinary income	7,362	4,851	51.8
Net income	3,050	2,457	24.1

Performance by Region

<Japan>
-Sales increased as a result of its major customers increasing their production volumes. Sales were 45,537 million yen, a year-on-year increase of 8.3%. The business operating profit was 1,213 million yen, after posting an operating loss of 109 million yen the year before.

<North America>
-Sales were 63,660 million yen, up 15.8% year-on-year; and business operating profit was 3,806 million yen, a 90.7% increase year-on-year, because of strong sales of the new-model Odyssey and increased sales by the General Motors Group.

<Asia>
-As a result of all markets in Asian countries, headed by China, experiencing a strong recovery, sales at the Company grew 13.4% year on year, to 28,508 million yen. Business operating profit was 2,898 million yen, amounting to a 3.2% year-on-year increase.

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	1,697	1,495	1,940

By region: Japan (1,120 million yen), North America (471 million yen), and Asia (106 million yen).

R&D Structure

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

-The Company is enhancing research and development activities on a global scale. It will study expansion of the 24-hour global development structure to sub-frame and suspension module systems, in addition to current pedal items. Given a certain level of result achieved in terms of pedal development, the Company will add development items with the aim of strengthening its development capabilities through speedy deployment of skills and expertise of its global development staff. (From an article in the Nikkan Jidosha Shimbun on Jun. 1, 2010)

R&D Achievements

-The H rear-axle beam continued being installed on Honda’s Fit Hybrid in its Fit series range.  

-Three products amounting to major vehicle sections on the new-model Civic, namely the sub-frame, suspension arm, and pedal continued being installed on all models produced worldwide as a result of work that improved their features in terms of their being make lighter, lower in cost, and higher in performance.

-The Company’s sub-frames are continuing to be installed because of improvements the Company made to one of their core technologies, the hydro-forming process.

Major Technological Support

(As of Mar. 31, 2011)

Partners	Country	Type of Support	Contract Period
Cheng Yu Industry Co., Ltd.	Taiwan	Technical support dealing with manufacturing and sales	Dec. 21, 1994-Dec. 20, 1999 Yearly automatic renewal from then on
ThyssenKrupp Automotive Tallent Ltd.	UK	Technical support dealing with manufacturing and sales	Jun. 7, 1996- Jun. 6, 2009 Yearly automatic renewal from then on
Progressive Tools & Components (P) Ltd.	India	Technical support dealing with manufacturing and sales	Nov. 29, 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 Will continue indefinitely until production of the product subject to receiving the technical support ceases.
Coskunoz A.S.	Turkey	Technical support dealing with manufacturing and sales	Nov. 1, 2007- Oct. 31, 2012 Will continue indefinitely until production of the product subject to receiving the technical support ceases.
Formex Mexico, S.A. de C.V.	Mexico	Technical support dealing with manufacturing and sales	Aug. 30, 2010- Aug. 29, 2015 Will continue indefinitely until production of the product subject to receiving the technical support ceases.

Technological Support the Company Receives

(As of Mar. 31, 2011)

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)

	FY2011	FY2010	FY2008
Investment Expenditure	5,095	3,177	12,247

By region: Japan (1,935 million yen), North America (2,246 million yen), and Asia (913 million yen).

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	1,064	Apr. 2011	Mar. 2012	Facility expansion in line with launch of a new model
F&P America Mfg., Inc. (Ohio, USA)	Businesses related to automotive components	767	Apr. 2011	Mar. 2012	Facility expansion in line with launch of a new model
F-Tech Mfg. Thailand Ltd. (Ayutthaya, Thailand)	Businesses related to automotive components	477	Jan. 2011	Dec. 2011	Facility expansion in line with launch of a new model