Financial Overview

(in millions of JPY)

	FY2009	FY2008	Rate of Change (%)	Factors
Sales	31,043	41,749	(25.6)	-Sales of clutch parts at the transport vehicles division decreased by 24.7% compared to those of the previous fiscal year due to lower production volumes in the automobile industry in Japan and overseas in the first half.
Operating income	(1,227)	(658)	-	-
Ordinary profit	(995)	(1,846)	-	-
Net profit	(1,291)	(2,803)	-	-

Recent developments in Japan

-The Company announced that it will dissolve and liquidate Ogura Techno Co., Ltd., its subsidiary producing and selling clutch parts for transport vehicles in Kitaibaraki City, Ibaraki Prefecture. Due to a significant decline in orders from overseas, the subsidiary has been faced with a great difficulty in bringing business back on track. The Group has decided it was almost impossible to do that in a short period of time for staying in business. Ogura Techno has been operating as a subsidiary of the Company since 2002, when the Company invested in Koyo Techno, the predecessor of Ogura Techno. (From an article in the Nikkan Jidosha Shimbun on Nov. 14, 2009)

Recent developments outside Japan

<Malaysia>
-The Company said it will dissolve its subsidiary in Malaysia, which manufactures and sells car air conditioner clutches, and relocate the production function to its existing facility in Thailand. By consolidating production for the Southeast Asian market in Thailand, where Japanese-affiliated carmakers and suppliers are planning to increase production, the clutch supplier intends to gain a competitive edge. The transfer is scheduled to be completed by the end of Aug, 2008 and liquidation of the Malaysian company to be finalized in June, 2009. The subsidiary to be dissolved generated sales of 1.3 billion yen during the term ended Dec. 2008.(From an article in the Nikkan Jidosha Shimbun on Aug. 21, 2009)

<Thailand>
-In November 2009, the Company held an opening ceremony for Ogura Clutch Thailand Co., Ltd. which is located in Amata City Industrial Estate in Rayong Prefecture, Thailand. This new facility will manufacture products such as automotive air conditioning clutches. (From a press release on Dec. 28, 2009)

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

R&D Expenditure

(in millions of JPY)

	FY2009	FY2008	FY2007
Overall	277	370	459

Electromagnetic clutch division/ transportation-equipment clutch division
-The Company was mainly involved in developing clutches used in air conditioners for motor vehicles and in developing torque limiters for lightweight clutches, silent clutches and external control compressors; energy- and power-saving clutches, etc.

In addition to above, the Company worked on the following developments at the transportation-equipment clutch division:
-Clutches for super-chargers and automobile reinforced clutches (at an affiliated company).
-Clutches for automotive power slide doors, rear doors, and trunks
-Clutches/brakes for differential locks
-Clutches for water pumps

Development of products for new business areas
-The Company developed a tension controller by applying electronic control technology and software technology. The controller enables clutch brakes to be controlled with greater accuracy.
-The Company also continues to develop various types of control systems.

Capital Investment

(in millions of JPY)

	FY2009	FY2008	FY2007
Transportation-equipment clutch division	561	356	427

Electromagnetic clutch division/ Transportation-equipment clutch division
-The Company focused its investment activities on measures to enhance environmental responsiveness, improve production equipment, streamline operations, and purchase new dies at the Akabori Plant and Kohbayashi Plant.

Planned Capital Investments (Transportation-equipment clutches)

(As of Mar. 31, 2010)

Name (Location)	Planned total investment (million JPY)	Starting month	Planned completion	Capacity increase upon completion
Akabori Plant (Isezaki City, Gumma Pref., Japan)	207	Apr. 2010	Mar. 2011	Practically none, as this is to improve product quality
Kohbayashi Plant (Isezaki City, Gumma Pref., Japan)	132	Apr. 2010	Mar. 2011	Practically none, as this is to improve product quality
Ogura Corporation Head office plant (Michigan, USA)	33	Jan. 2010	Dec. 2010	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura S. A. S. Head office plant (Onnaing, France)	27	Jan. 2010	Dec. 2010	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura Clutch do Brasil Ltda. Head office plant (Sao Paulo, Brazil)	17	Jan. 2010	Dec. 2010	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura Clutch (Dong Guan) Co., Ltd. Head office plant (Guang Dong, China)	121	Jan. 2010	Dec. 2010	An increase will be achieved, as this project will raise the ratio of in-house production
Ogura Clutch Thailand Co., Ltd. Head office plant (Rayong, Thailand)	67	Jan. 2010	Dec. 2010	An increase will be achieved, as this project is to add new facilities