Financial Overview

(in millions of JPY)

	FY2010	FY2009	Rate of Change (%)	Factors
Overall
Sales	66,191	35,439	86.7	1)
Operating income	3,672	456	705.2	-
Ordinary income	3,928	715	449.3	-
Current net income	2,433	(621)	-	-

Factors
1)
- In Japan, truck sales were buoyed by the eco-car incentive scheme in the first half of the year, which was followed by a sluggish business in the second half. Thanks to growth in demand from China, ASEAN countries and other emerging markets, however, consolidated sales and profit increased significantly from the previous year's results.

Highlights by business segment

Propeller shafts
- The Company supplies the majority of its propeller shafts to Isuzu Motors. Its propeller shafts are also used in the Nissan Patrol, a large SUV sold in Africa and North America; the Isuzu D-Max pickup truck manufactured in Thailand; as well as the Hino Profia and UD Trucks' Quon large trucks. (Interview findings by MarkLines, November 2011)

Engine production business for Isuzu's industrial vehicles
- The V-shaped recovery of the industrial engine market in China has made a significant contribution to the Company's business performance. The Company's 2,000-6,500cc diesel engines are used as power sources of hydraulic shovels, power generators, and other construction machinery sold in China. Based on an OEM contract with Isuzu Motors, the Company manufactures diesel engines at the Moka Plant in Tochigi Prefecture, and conductｓ processing and assembling operations at its home plant in Ebina, Kanagawa Prefecture. It has four engine production lines in total, with a capacity of manufacturing more than 10,000 engines a month. (Interview findings by MarkLines, November 2011)

R&D Expenditure

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	196	118	256

R&D Structure

-Under its partnership with JBK Services, which mainly involves R&D activities, the Company is jointly researching and developing automotive parts used in diverse powertrains.
-Part of the activities in advanced technological products are being conducted jointly with Isuzu.

R&D Activities

Automotive parts
-The Company developed various types of propeller shafts primarily for medium and light-duty trucks, power take off systems to meet various needs for mounting and engine components like rocker arms and flywheels.
- The Company developed propeller shafts and drive plates for compact vehicles targeted at the overseas markets. It also engineered engine components for fuel efficient vehicles.
- The Company conducted assessment of new engines that operate on next generation fuels.

Capital Investment

(in millions of JPY)

	FY2010	FY2009	FY2008
Overall	927	1,286	4,056
Engine parts business	-	110	619
Automotive parts division	-	1,176	3,435

Capital investment for FY2010
- The Company continued to invest in increasing its production capacity and upgrading aging facilities.

New Facilities (automotive parts business)

(As of Mar. 31, 2011)

Name	Location	Type of facility	Planned total investment (in millions of JPY)	Construction start month	Planned completion month
Head Office/ Ebina Plant	Kanagawa Pref., Japan	Processing equipment for power transmission parts, etc.	350	Apr. 2011	Mar. 2012
		Processing equipment for drivetrain and power transmission parts, etc.	270	Apr. 2011	Mar. 2012
Moka Plant	Tochigi Pref., Japan	Processing equipment for engine parts, etc.	300	Apr. 2011	Mar. 2012
		Processing equipment for drivetrain and power transmission parts, etc.	160	Apr. 2011	Mar. 2012
P.T. Jibuhin Bakrie Indonesia	Karawan, Indonesia	Processing equipment for engine parts, etc.	450	Jan. 2011	Dec. 2011
Jibuhin (Thailand) Co., Ltd.	Chonburi, Thailand	Processing equipment for power transmission parts, etc.	1,070	Jan. 2011	Dec. 2011