Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of change (%)	Factors
Overall
Sales	373,458	376,323	(0.8)	- In order to cope with reduced production at its customers at home and abroad, the Company worked on enhancing its production structure, improving production efficiency, and cutting down on cost, including delivery expenses. It also reduced fixed expenses by holding down capital investments.
Operating income	11,885	3,183	273.3	- The Company held down capital expenses by drastically reorganizing its production structure to cut cost.
Ordinary income	8,483	(399)	-	-
Current net income	3,346	(565)	-	-

New Company

-The Company. announced on August 1 establishment of a new manufacturing subsidiary of auto parts in Indonesia, and subsidiaries to oversee regional operations in the U.S. and China. The new company in Indonesia “PT. Futaba Industrial Indonesia” will be established in the GIIC industrial park in Bucash in October with a paid-up capital of 1.3 billion yen. More than 80 percent of the capital will be invested by Futaba Industrial. The plant built at the site of about 50,000 square meters with a building space of about 5,000 square meters at a cost of 1.5 billion yen is scheduled to go into operation in September 2012 to produce possibly mufflers and other products, which will be decided later. In October this year Futaba will also set up “Futaba North America Engineering & Marketing Co.” a new subsidiary in Illinois to oversee U.S. operations. Futaba, which owns six consolidated subsidiaries in China, will reorganize one of them to form a regional headquarters “Futaba Changzhou Engineering & Marketing” in September. (From an article in the Nikkan Jidosha Shimbun on August 2, 2011)

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	2,130	1,953	2,181

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

R&D Activities

-The Company continued to work 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 aims to win more businesses for these devices.
- The Company is also focusing on developing heat management systems so as to maximize energy efficiency.
-The Company continued to work on developing PM/NOx treatment devices for diesel vehicles to reduce exhaust emissions.

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	15,188	30,106	56,220

-The Company invested in installing production equipment at the automotive parts business (mainly assembly and welding lines and dies and jigs) to streamline operations and reduce labor to improve its productivity, and also to deal with model changes.
- Breakdown of investment for FY2010: 11,537million yen in Japan; 873million yen in North America; 763 million yen in Europe, and 2,013 million yen in Asia.

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	1,820	March 2010	March 2012
Midori Plant (Toyota City, Aichi)	Production facility	330	Dec. 2009	March 2012
Chiryu Plant (Chiryu City, Aichi)	Production facility	130	Feb. 2011	March 2012
Koda Plant (Nukata gun, Aichi)	Production facility	800	Jun. 2010	March 2012
	R&D facility	380	-	March 2012
Mutsumi Plant (Okazaki City, Aichi)	Production facility	630	Aug. 2009	March 2012
Tahara Plant (Tahara City, Aichi)	Building and Production facility	560	Mar. 2011	March 2012
Takahashi Plant (Okazaki City, Aichi)	Production facility	800	Jun. 2010	March 2012
	Dies and jigs etc.	8,050	April 2009	March 2012
Consolidated subsidiary
(Futaba Imari Corp., Imari Plant (Saga Pref., Japan)	Production facility	180	March 2011	March 2012
(Futaba Imari Corp., Miyata Plant (Fukuoka Pref., Japan)	Production facility	220	April 2011	March 2012
(Futaba Imari Corp., Nohgata Plant (Fukuoka Pref., Japan)	Production facility	20	April 2011	March 2012
Futaba Hiraizumi Corp. (Iwate Pref., Japan)	Production facility	280	March 2011	March 2012
Apics Co.,Ltd. (Aichi Pref., Japan)	Production facility	10	April 2011	March 2012
Apics Co.,Ltd. (Aichi Pref., Japan)	Production facility	60	April 2011	March 2012
FIC America Corp. (Illinois, USA)	Production facility	750	March 2011	March 2011
Futaba Indiana of America Corp. (Indiana, USA)	Production facility	680	Dec. 2010	March 2012
Futaba Industrial Texas Corp. (Texas, USA)	Production facility	60	April 2011	March 2012
FIO Automotive Canada Corp. (Ontario, Canada)	Production facility	110	April 2011	March 2012
Futaba-Tenneco UK Ltd. (Lancashire, UK)	Production facility	540	Jan. 2011	Dec. 2011
Futaba Industrial U.K. Ltd. (Derbyshire, UK)	Production facility	10	April 2011	Dec. 2011
Futaba Czech s.r.o. (Czech Republic)	Production facility	1,040	Sept. 2010	Dec. 2011
Futaba Technology Ltd.	Production facility	10	Jan. 2011	Dec. 2011
Shenzhen Futaba Metal Products Co., Ltd.	Production facility	60	Jan. 2011	Dec. 2011
Tianjin Shuang Shye Mechanical Industrial Co., Ltd. (Tianjin, China)	Production facility	540	Oct. 2010	Dec. 2011
Tianjin Futaba Shye Chan Mechanical Industrial Co., Ltd. (Tianjin Development Area, China)	Production facility	190	April 2011	Dec. 2011
Guangzhou Futaba Auto Parts Co., Ltd. (Guangzhou, China)	Production facility	1,630	Aug. 2010	Dec. 2011
Dongguan Futaba Metal Products Co., Ltd (Dongguan, China)	Production facility	40	Jan. 2011	Dec. 2011
FMI Automotive Components Ltd. (Haryana, India)	Production facility	370	March 2011	March 2012