Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of change (%)	Factors
Overall
Sales	376,323	385,892	(2.5)	-
Operating income	3,183	(13,585)	-	-The company was able to generate a profit from sales as a result of its company-wide efforts to revise its production operations, reduce unit prices, and cut costs.
Ordinary income	(399)	(18,587)	-	-
Current net income	(565)	(38,054)	-	-Current net income decreased year-on-year because the Company posted a 2.1 billion yen loss due to a product recall and other factors; although the company received a tax refund due to a change in the corporate tax structure.
Automotive Parts
Sales	366,825	369,232	(0.7)	-
Operating income	2,750	(14,321)	-	-Operating income turned profitable as a result of the Company's efforts to reduce unit prices and improve its operating efficiency.

Organizational Changes

-The Company. announced on July 1 changes in its organization. It clarified responsibilities and authorities of board members in execution of their duties. In order to speed up business judgments, it set up nine divisions on June 26. They are Corporate Planning Division, Administration and Personnel Division, Accounting and Finance Division, Sales Division, Purchasing Division, Quality Control Division, Engineering Division, Production Technology Division and Manufacturing Division. (From an article in the Nikkan Jidosha Shimbun on July 2, 2009)

Medium-term Management Plan (FY2009 through FY2011)

-The Company released on November 19 its three-year mid-term business plan from fiscal 2009 through 2011, which calls for improvement in profitability through capital investment constraints and cost reduction activities, as well as productivity enhancement through strict observance of the Toyota Production System. Expecting increased sales of environmentally responsive products such as an exhaust heat recovery system for a hybrid vehicle and a diesel particulate filter, the supplier aims to achieve sales of 390 billion yen and operating profit of 11 billion yen respectively in fiscal 2011. (From an article in the Nikkan Jidosha Shimbun on Nov. 20, 2009)

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

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	1,953	2,181	3,971
Automotive Parts	-	-	3,200

-Most of the Company's R&D activities are for automotive components.

R&D Activities

-The Company works on enhancing the development of its main products as well as environmentally friendly products by promoting joint efforts between industry and academia.
-The Company developed smaller and lighter exhaust heat recovery devices , but which actually achieve higher performance in hybrid vehicles, improving fuel efficiency. The Company received more orders for these devices.
-The Company worked on developing PM/NOx treatment devices for diesel vehicles to reduce exhaust emissions. The Company is working to expand their application to construction equipment.

Capital Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	30,106	56,220	71,369

-The Company invested to increase its production capacity, primarily in the automotive parts business (mainly for stamping machines).
-Investments were made to rationalize operations and reduce labor in order to improve its productivity.
-The Company invested to install production equipment (mainly assembly and welding lines and dies and jigs) needed to enable the Company to switch over to handling new products.
-The Company also invested in plant buildings and production facilities by either building new or adding on to existing facilities.

New Facilities (Automotive Parts)

Name (Location)	Purpose	Planned investment (in million JPY )	Starting	Planned Completion
Futaba Industrial Co., Ltd.
Head Office, Okazaki Plant (Okazaki City, Aichi)	Production facility	734	Aug. 2008	March 2011
Midori Plant (Toyota City, Aichi)	Production facility	940	Jan. 2008	March 2011
Chiryu Plant (Chiryu City, Aichi)	Production facility	177	March 2009	March 2011
Koda Plant (Nukata gun, Aichi)	Production facility	1,596	July 2009	March 2011
	R&D facility	304	March 2010	March 2011
Mutsumi Plant (Okazaki City, Aichi)	Production facility	870	Sept. 2009	March 2011
Tahara Plant (Tahara City, Aichi)	Building and Production facility	957	Sept. 2008	March 2011
Takahashi Plant (Okazaki City, Aichi)	Production facility	275	Jan. 2010	March 2011
	Dies and jigs etc.	7,080	April 2008	March 2011
Consolidated subsidiary
(Futaba Imari Corp., Imari Plant (Saga Pref., Japan)	Production facility	1,090	Sept. 2009	March 2011
(Futaba Imari Corp., Miyata Plant (Fukuoka Pref., Japan)	Production facility	30	April 2010	March 2011
(Futaba Imari Corp., Nohgata Plant (Fukuoka Pref., Japan)	Production facility	1,510	April 2010	March 2011
Futaba Hiraizumi Corp. (Iwate Pref., Japan)	Production facility	530	Jan. 2010	March 2011
FIC America Corp. (Illinois, USA)	Production facility	910	Feb. 2010	March 2011
Futaba Indiana of America Corp. (Indiana, USA)	Production facility	1,680	March 2010	March 2011
Futaba Industrial Texas Corp. (Texas, USA)	Production facility	230	April 2010	March 2011
FIO Automotive Canada Corp. (Ontario, Canada)	Production facility	140	April 2010	March 2011
Futaba-Tenneco UK Ltd. (Lancashire, UK)	Production facility	40	Jan. 2010	Dec. 2010
Futaba Industrial U.K. Ltd. (Derbyshire, UK)	Production facility	10	Dec. 2009	Dec. 2010
Futaba Czech s.r.o. (Czech Republic)	Production facility	2,040	June 2009	Dec. 2010
Tianjin Shuang Shye Mechanical Industrial Co., Ltd. (Tianjin, China)	Production facility	360	Dec. 2009	Dec. 2010
Tianjin Futaba Shye Chan Mechanical Industrial Co., Ltd. (Tianjin Development Area, China)	Production facility	850	Dec. 2009	Dec. 2010
Guangzhou Futaba Auto Parts Co., Ltd. (Guangzhou, China)	Production facility	390	May 2009	Dec. 2010
Dongguan Futaba Metal Products Co., Ltd (Dongguan, China)	Production facility	70	Jan. 2010	Dec. 2010
FMI Automotive Components Ltd. (Haryana, India)	Production facility	20	April 2010	March 2011