Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Overall
Sales	150,849	137,464	9.7	-Sales rose because of the favorable growth seen in auto-production worldwide as a result of the recovery in the North American market and the expansion taking place in developing nations.
Operating income	6,025	4,353	38.4	-
Ordinary income	5,269	4,427	19.0	-
Net income	325	1,580	(79.4)	--Net profits were down due to the extraordinary loss the Company posted as a reserve fund to cover product warrantees.
Automotive Components Division
Sales	145,689	132,925	9.6	-

The Company carried out the following three initiatives to improve its profit structure and increase the competitive advantages of its products.
 (1) Enhancing corporate structure:
- Installed a production line to manufacture a new type of engine valve.
- Consolidated the operations of its two production subsidiaries in the Czech Republic.
(2) Strengthening its product supply-chains in emerging nations.
- Constructed the second plant at P.T. Aisan Nasmoco Industri.
- Started supplying fuel-pump modules in India.

(3) Developing products
- For compact cars, developed a new-type fuel-pump module and an electronic throttle body made of resin, making them lighter and with fewer component parts.

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	7,308	6,863	7,491

*The above figures are all associated with automotive parts.

R&D Activities

Main R&D Achievements in FY2010
- Commercialized an electronic throttle body made of resin and a fuel-pump module that has an integrated filter unit with a suction filter, which offers the added function of a fuel filter.
 -Developed an electronic throttle body made of resin, which is designed for compact cars.
- Improved its competitive edge in terms of cost savings by standardizing and using common parts for products it developed such as charcoal canisters, fuel-pump modules, EGR valves, and others. These products consume less electricity, are lighter in weight, offer greater control, and meet environmental needs by working with bio-fuels.
- Improving features of products made for emerging-market countries. 

Capital Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	7,158	6,502	10,920

	Investment Targets	Main products and investment amounts for FY2011
Japan	Expanding and upgrading facilities producing the following products: new-type fuel-pump modules and electronic throttle bodies made of resin, which improve fuel consumption; new products such as EGR valves; mainstream products (fuel-pump modules, throttle bodies, injectors, engine valves, etc.) that comply with fuel and gas emissions regulations; and -enhancing and upgrading testing facilities, so they are suitable for testing eco-friendly vehicles.	3 mainstream products (fuel-pump modules, throttle bodies, and canisters): 1,956 million yen; Engine values: 374 million yen Injectors: 292 million yen
Asia	-Expanding facilities and equipment to handle increased sales of fuel-pump modules. -Constructing new plants	3 mainstream products: 1,978 million yen 3 mainstream products: 217 million yen
North America	-Expanding and upgrading facilities producing canisters	3 mainstream products: 218 million yen

- The Company will increase production of engine products in both China and Indonesia. In China, the company will introduce new equipment in order to start manufacturing fuel pumps locally for Toyota Motor Corporation and other customers. In Indonesia, on the other hand, Aisan is going to increase its production volume by 30 percent by adding a new plant to produce pumps for motorcycles. During this fiscal term, the company is planning to invest 6.8 billion yen in plants and equipment, which is an increase of 4.6 percent from the amount it spent in the previous year. Focus of its investment activities will be placed on the strong Asian market. (From an article in the Nikkan Jidosha Shimbun on May. 7, 2010)

Plans for New Facilities

Plant name (Location)	Type of facility or project	Planned amount of investment (in million JPY)	Project period
			From	To
Headquarters Plant (Aichi, Japan)	Facility manufacturing EGR valves	294	Jun. 2010	Jan. 2012
Anjo Plant (Aichi, Japan)	Facility manufacturing engine valves	1,024	Aug. 2010	Mar. 2011
Toyota Plant (Aichi, Japan)	Facility manufacturing injectors	521	Feb. 2011	Jan. 2012
P.T. Aisan Nasmoco Industrial (Indonesia)	Facility manufacturing fuel pump modules	1,309	Dec. 2010	Sep. 2011
Franklin Precision Industry, Inc. (Kentucky, U.S.A.)	Facility manufacturing throttle bodies	510	Jun. 2010	Dec. 2011
Hyundam Industrial Co., Ltd. (Asan, Korea)	Facility manufacturing fuel pump modules	423	Mar. 2010	Dec. 2011